Is the Freight Recession Over? Capacity Crunch, Warsh’s Fed & Werner Settlement | The Daily

The freight recession may finally be over as January transportation metrics reveal a market in firm expansion territory. With the overall index hitting 59.6, a convergence of tightening capacity and rising rates suggests the cycle has officially turned. Regulatory pressures are squeezing the driver pool just as Werner Enterprises settles an 11-year-old lawsuit regarding driver wages. This $18 million payout underscores the rising floor for labor costs in an increasingly constrained environment. On the demand side, a surge in Japanese machine tool orders points to a manufacturing rebound later this year. North American orders jumped nearly 30%, signaling that industrial production is gearing up for a strong second half of 2026. Macroeconomic policy could also provide a tailwind if Fed Chair nominee Kevin Warsh shifts focus back to Main Street. His criticism of current monetary strategy suggests relief may be on the way for the industrial and small business sectors. Meanwhile, rail infrastructure is booming with Norfolk Southern customers advancing over $7.7 billion in new projects. Adding to the positive momentum, legal distractions are clearing up for major players following the dismissal of charges against NFI's CEO. Follow the FreightWaves NOW Podcast Other FreightWaves Shows Learn more about your ad choices. Visit megaphone.fm/adchoices