Good morning, and welcome to The Cargo Club!
25 years ago today, nearly 3,000 people lost their lives in the September 11 terrorist attacks.
It’s difficult to comprehend that a quarter-century has passed since a day that changed so much about American life.
I was five years old when it happened, so my own memories of that day are understandably limited. What I remember most is my mom picking me up from school early. Beyond that, she did a pretty good job of sheltering me from what was happening.
There’s something strange about looking back on that now.
September 11 is one of the defining events of my lifetime, yet my first memory of it isn’t the planes, the towers, or the news coverage. It’s simply being five years old and knowing that, for some reason, my mom had come to get me.
For millions of others, of course, the memories are far more immediate.
They remember exactly where they were when they heard the news, watched the towers fall, tried to reach loved ones, or realized that the world had suddenly changed in ways nobody could yet understand.
A quarter-century later, the effects of that day are still with us.
25 years is enough time for skylines to be rebuilt, neighborhoods to recover, and an entire generation to grow up with no memory of that morning at all.
But it isn’t enough time to forget.
So before we get into everything else today, we want to take a moment to remember the people whose lives were lost, the people who stepped forward to help, and the families who have carried that loss for the last 25 years.
– Greyson Harris
U.S.-Mexico trade keeps finding new ceilings.
Two-way commerce between the neighboring countries reached a record $94.8 billion in July, according to U.S. Census Bureau data analyzed by WorldCity. That was a 27.5% increase from the same month last year and the highest monthly total on record.
Mexico accounted for nearly 18% of all U.S. international trade during the month, further cementing its place as the country’s largest trading partner. U.S. exports to Mexico totaled $34.24 billion, up 18.1% year over year, while imports surged 33.5% to $60.55 billion.
For comparison, Canada ranked second among U.S. trading partners at roughly $62.8 billion in July, followed by China at $36.8 billion.
Mexico by a few billion.
The record month wasn’t an isolated spike.
Through the first seven months of 2026, U.S.-Mexico trade totaled $588.52 billion, up 16.1% from the same period last year.
Over that stretch:
Overall U.S. international trade reached $3.51 trillion through July, up 6.2% year over year.
All roads go through Laredo.
All that freight has to cross the border somewhere, and once again, that somewhere is overwhelmingly Laredo.
The Texas border city remained the busiest international trade gateway in the United States, processing $36.95 billion in commerce during July, up nearly 22% from a year earlier.
Of that total, $35.9 billion was U.S.-Mexico trade, meaning Mexico accounted for roughly 97% of everything moving through the gateway.
July was also Laredo’s strongest July on record in WorldCity data dating back to 2013.
Motor vehicle parts were the gateway’s largest export commodity in July at $1.31 billion, up 19.2% year over year. Diesel engine exports surged nearly 85% to $433.8 million, while motor vehicle engine exports increased 21% to $284.7 million.
Chicago O’Hare International Airport ranked second among U.S. trade gateways at $36 billion, followed by the Port of Los Angeles at $26.5 billion.
Lots of freight, not a lot of capacity.
Record trade volumes are also putting pressure on the trucking market around Laredo.
As of Wednesday, SONAR’s Laredo Van Outbound Tender Rejection Index stood at 11.18%, meaning carriers are rejecting more than one in 10 contracted loads leaving the market.
For shippers, that means the country’s busiest trade gateway is also becoming a tougher place to secure capacity.
The Trump administration is escalating its dispute with Canada by banning certain Canadian products from entering the United States altogether and taking steps to remove Canadian goods from long-term federal purchasing contracts.
Beginning Sept. 29, the U.S. will prohibit imports of most Canadian alcoholic beverages, certain dairy products, including whey, some molasses products, and certain motorcycles and mopeds.
The restrictions replace the additional tariffs currently applied to the affected products with outright import exclusions.
In other words, the trade fight has progressed from “you can sell it here, but it’ll cost you” to “you can’t sell it here at all.”
Canada is not sorry.
The announcement followed the implementation of Canada’s latest round of retaliatory tariffs on U.S. goods on Sept. 8.
Canada imposed duties ranging from 15% to 50% on products including steel, dairy, appliances, agricultural equipment, electronics, and paper products. Ottawa has described the measures as a dollar-for-dollar response to U.S. tariffs on Canadian goods.
The back-and-forth follows the collapse of trade negotiations between the countries on Aug. 21, with neither side showing much appetite for backing down. Canadian Prime Minister Mark Carney has said his government intends to reduce Canada’s reliance on the U.S. market while continuing to defend Canadian industries during the dispute.
More than 70% of Canadian exports currently head south of the border, making any sustained disruption particularly significant for Canadian producers and the North American supply chains built around them.
Full and fair.
The dispute is also moving beyond goods crossing the border.
President Trump directed the General Services Administration to work with the U.S. Trade Representative to begin removing Canadian-origin products from the GSA’s Multiple Award Schedules, which federal agencies use to purchase products and services through long-term contracts.
Trump said the restrictions would remain unless Canada provides what the administration considers “full and fair reciprocity” for U.S. companies competing for Canadian government business.
Why should you care?
For transportation providers, the bigger story is the growing uncertainty surrounding one of the largest freight corridors in North America.
U.S. goods exports to Canada totaled $333.6 billion in 2025, while imports reached $381.9 billion, meaning even relatively narrow product restrictions can ripple through trucking, warehousing, customs, and cross-border manufacturing networks.
Canadian freight moving into the U.S. has already shown some short-term volatility. SONAR’s Canadian Outbound Tender Volume Index has fallen roughly 16% since Sunday after surging near the end of August, although part of that decline can be attributed to the Labor Day holiday.
The immediate bans cover only a slice of overall U.S.-Canada commerce. The larger concern for freight markets is where the escalation goes next.
Tariffs can make a shipment more expensive. Import bans can make that shipment disappear entirely.
And as the two countries continue trading retaliatory measures, cross-border shippers and carriers are being left to plan around a trade relationship whose rules seem capable of changing by the week.
🚚 Dry Van Rates Tick Up as Capacity Returns
National dry van linehaul averaged $2.21 per mile, excluding fuel, up two cents from the previous week.
Rates remained near the top of the historical range:
The 10 dry van bellwether states averaged $2.91 per mile outbound, up three cents week over week and $0.79 year over year.
Nearly every major origin recorded higher rates, led by the Great Lakes at 3.4%. The bellwether states accounted for 35.7% of outbound van loads, consistent with their recent share of the market.
Load postings declined 0.9% from the previous week, while truck postings increased 1.4%. With equipment returning faster than freight, the load-to-truck ratio eased from 11.73 to 11.47.
Capacity nevertheless remained considerably tighter than last year, with truck postings down 17.2% and the load-to-truck ratio well above the 6.68 recorded during the same week in 2025.
DAT’s 35-day forecast projects dry van linehaul at $2.20 per mile in mid-October, essentially unchanged from the current average. That would remain approximately $0.53 per mile higher than last year.
Reefer spot rates climbed for the second consecutive week as strong Midwest markets and surging Washington tree fruit volumes pushed pricing higher.
National reefer linehaul averaged $2.74 per mile, excluding fuel, up five cents from the previous week. Rates remained near the top of the historical range:
The 10 reefer bellwether states averaged $3.63 per mile outbound, up five cents week over week and $0.96 year over year.
The Pacific Northwest led major origins with a 5.8% weekly increase, while the Upper Midwest and Lower Midwest rose more than 4%.
Washington tree fruit produced the strongest weekly momentum in the reefer market. Outbound Yakima rates reached a four-year high, rising 49% from their early-May seasonal low and 34% year over year as new-crop apples, pears, and peaches entered the market.
Most other produce regions remained well above last year but showed flat or declining weekly rates as California vegetables, Eastern watermelons, and other late-summer crops moved past their peaks.
Reefer truck postings increased 5.3% week over week, while load postings declined 0.9%. That pushed the load-to-truck ratio down from 22.84 to 21.49, although it remained more than double last year’s 10.23.
DAT’s 35-day forecast projects reefer linehaul at $2.68 per mile in mid-October, six cents below the current average, but approximately $0.60 higher than last year.
Flatbed spot rates held nearly steady this week, remaining near the top of the historical range even as freight volumes declined and truck capacity returned to the market.
National flatbed linehaul averaged $2.66 per mile, excluding fuel, down less than one cent from the previous week. Rates remained elevated:
The 10 flatbed bellwether states averaged $3.30 per mile outbound, down two cents week over week, but up $0.77 year over year.
The Lower Midwest led major origins with a 4.2% weekly increase, followed by the Upper Atlantic and Great Lakes. Several Southern markets declined, including the Southeast, Carolinas, and South Central regions.
Load postings fell 7.3% from the previous week, while truck postings increased 4.1%. That pushed the load-to-truck ratio down from 40.92 to 36.44.
Despite the decline, capacity remained considerably tighter than last year, when the ratio stood at 22.18.
Weak agricultural equipment sales could reduce demand for flatbeds, step-decks, and removable gooseneck trailers. U.S. tractor sales fell 10.9% year over year in July, while combine sales declined 5.3%.
The steepest decline came from four-wheel-drive tractors, which generate some of the heaviest open-deck moves. Sales in that category fell 38.7% year over year as economic uncertainty prompted farmers to delay purchases.
DAT’s 35-day forecast projects flatbed linehaul at $2.63 per mile in mid-October, three cents below the current average, but approximately $0.57 higher than last year.
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