In this episode of The Daily, we uncover why many freight brokers are structurally losing roughly $19 on every load despite seemingly stable contract rates. We break down the "negative operating leverage trap" detailed in How are Freight Brokers Staying Afloat? that is forcing companies to burn cash while desperately chasing volume. The conversation shifts to the rail sector, where CSX lays off 5% of management staff, furloughs conductors in a move that signals a permanent shift toward leaner operations. These deep cuts reflect a broader industry trend of redrawing profitable baselines amidst challenging economic conditions and declining high-margin traffic. Regulatory pressure is also intensifying, as the DOT strips California of $160M over foreign truckers for failing to revoke thousands of unlawfully issued commercial driver's licenses. This systemic collapse in the state's licensing process threatens to tighten capacity further in the stressed West Coast freight market. We also examine compliance risks, highlighting a case where an air cargo contractor reimburses Postal Service for fraudulent billing after falsifying delivery scans to avoid late penalties. This recurring pattern of fraud underscores the rigorous compliance demands fleets must manage alongside financial pressures. Physical risks are escalating as well, with new analysis on Minneapolis, 1992, and What Fleets Need to Know About the Insurrection Act as state and federal tensions create volatile conditions for urban logistics. Fleet operators are urged to prioritize real-time visibility and safety training to navigate these potential disruptions effectively. Finally, we look at market data where U.S. Bank, DAT launch quarterly truck freight rates report showing that carrier capacity is quietly shrinking while contract rates hold steady. This disconnect raises the critical question of which sector will force a necessary margin reset in the coming year. Follow the FreightWaves NOW Podcast Other FreightWaves Shows Learn more about your ad choices. Visit megaphone.fm/adchoices