Good morning readers,

For decades, securing a port meant watching what entered through the gates and what sailed into the harbor. Today, however, one of the fastest-growing security threats isn't arriving by land or sea—it's flying overhead.

America's port operators are now urging the Federal Aviation Administration (FAA) to tighten restrictions on unauthorized drones, warning they pose growing risks to cargo terminals, military shipments, hazardous materials, cruise ships, and other critical infrastructure.

As drones become cheaper, more capable, and easier to access, ports argue that protecting the supply chain now requires securing the skies just as much as the waterfront.

Let's dive into today's edition.

For the past few months, we've been speaking directly with small and mid-sized 3PL operators across the United States to understand what it's really like to run a logistics business in today's market.

Through first-hand accounts, conversations with logistics leaders, and extensive research, we've uncovered what's happening to small and mid-sized 3PLs, why some are struggling while others continue to grow, and the strategies helping operators navigate one of the toughest markets in years.

The result is The State of Small & Mid-Sized 3PLs Report 2026.

It will be released in July and will be available to all CrossDock paid members as part of their subscription.

If you value original reporting, exclusive research, and deeper insights into the supply chain and logistics industry, consider becoming a CrossDock paid member.

CMA CGM is acquiring FedEx Supply Chain for $1.4 billion, significantly expanding its North American logistics business and strengthening its end-to-end supply chain capabilities.

What’s Happening? The business will be integrated into CEVA Logistics, giving the company a workforce of 20,000 employees, 240 locations, and 150 warehouses across North America, making it one of the region's largest contract logistics providers.

Preferred Carrier: Alongside the acquisition, CMA CGM and FedEx will enter a multi-year commercial partnership covering both ocean and air freight through 2028. Under the agreement, CMA CGM will become a preferred ocean carrier for FedEx, while the two companies will collaborate on air cargo capacity to improve aircraft utilization and strengthen their global transportation networks.

Big Picture: The deal continues CMA CGM's aggressive expansion beyond container shipping through CEVA Logistics, following acquisitions including Bolloré Logistics, Wincanton, GEFCO, Ingram Micro Commerce & Lifecycle Services, and Borusan Tedarik Zinciri.

For FedEx, the sale follows the spin-off of FedEx Freight and reflects its strategy to focus on higher-margin businesses such as healthcare, aerospace, automotive, and its core parcel delivery network.

War-risk insurance premiums for ships transiting the Strait of Hormuz have fallen by more than half after the U.S.-Iran ceasefire, easing one of the shipping industry's biggest cost burdens.

What’s Happening? Hull war premiums dropped from around 5% of a vessel's value to roughly 2%, cutting insurance costs by hundreds of thousands of dollars per voyage and restoring confidence among shipowners.

Key Details: Shipping activity has resumed through the strategic waterway, with at least 172 vessels passing through since June 18, according to Kpler. Carriers are increasingly sailing with their AIS tracking systems switched on again—a sign that operators see the immediate threat of attack as having diminished.

Even MSC, whose ships were previously targeted in the region, resumed transits through the strait.

What’s Next? While hull insurance costs have declined sharply, cargo war insurance has remained largely unchanged as insurers remain cautious about lingering risks, including reports of sea mines. Industry brokers say premiums could continue falling if the ceasefire holds.

Truck freight rates accelerated sharply in the second quarter, even as shipment volumes declined, signaling that tightening carrier capacity is beginning to outweigh weaker freight demand.

Number Game: According to the latest U.S. Bank Freight Payment Index – Rates Edition, spot truckload rates surged 31.3% year over year in May, while contract rates rose 9%, marking one of the strongest pricing gains in recent months.

Spot rates climbed from $1.89 per mile in March to $2.14 in May, while contract rates increased from $2.09 to $2.18 per mile over the same period. However, freight activity softened, with spot shipment volumes falling from 1.36 million loads to 1.11 million, and contract volumes dropping 13.3% between March and May.

New Normal: Industry analysts said the disconnect between falling volumes and rising rates reflects tightening trucking capacity rather than stronger demand. The report suggests higher freight costs could become the new normal, urging shippers to update transportation budgets as market conditions continue to shift.

U.S. retailers are pulling forward orders from China by four to six weeks to secure inventory for the Black Friday and Christmas shopping season before potential tariff increases later this year.

Busy Route: The early rush has tightened container capacity and pushed freight rates higher. According to Drewry, spot rates from Shanghai to New York climbed to $7,149 per 40-foot container, up 25% year over year, while rates to Los Angeles rose 54% to $5,750.

Maersk said demand and earlier seasonal bookings have reduced available container space on China-U.S. routes since mid-May, with shipments including back-to-school products, holiday merchandise, and World Cup-related goods.

What’s Next? Despite the surge, logistics firms expect the momentum to fade later this summer. Container tracking firm Vizion said U.S. import demand remains below its three-year average, warning that volumes could weaken after July as inventories build and higher tariffs raise the cost of China-made goods.

Amazon Freight says more shippers are moving freight from truckload (TL) to less-than-truckload (LTL) as transportation costs climb and supply chains become more volatile.

What’s Happening: Amazon said double-digit increases in truckload rates are pushing customers to rethink shipping modes, prompting larger shipments that previously moved via truckload to shift into LTL networks.

New Business: To capture that demand, Amazon launched a new LTL service this month, leveraging its network of 80,000 trailers and 24,000 intermodal containers. The company said it expanded cross-dock capabilities at its distribution and fulfillment centers after demand in some markets outpaced existing LTL capacity.

Big Picture: Industry executives said LTL volumes are likely to strengthen in the second half of the year, with some growth coming from truckload customers seeking lower-cost alternatives. Analysts also noted that LTL has become a critical service for logistics providers looking to deepen relationships across shippers' supply chains.

Maersk has raised its 2026 profit forecast by at least $1 billion, citing a surge in shipping demand as U.S. importers rush to bring in goods ahead of a new round of tariffs.

Key Numbers: The world's second-largest container shipping line now expects underlying EBITDA of $8–10 billion, up from its previous guidance of $4.5–7 billion, as strong Far East exports and rising spot freight rates boost earnings.

Cause and Effect: The company said U.S. retailers and consumer goods companies are stockpiling inventory before expected tariff increases later this summer, tightening container capacity and pushing freight rates to their highest levels since the 2024 Red Sea crisis. Shipbroker Clarksons said the Shanghai Containerized Freight Index is now just 13% below its 2024 peak.

Future Outlook: Maersk also raised its forecast for global container market growth to around 4% in 2026, up from its earlier outlook of 2–4%. The company said higher fuel costs linked to the Iran conflict, along with continued supply chain disruptions around the Strait of Hormuz, have further supported freight demand and shipping rates during the second quarter.

U.S. intermodal rail traffic continued its strong momentum, with containers and trailers rising 10.1% year over year to 293,066 units in the week ended June 27, marking the sixth consecutive week of double-digit intermodal growth, according to the Association of American Railroads (AAR).

The surge helped lift total U.S. rail traffic 7% to 525,474 carloads and intermodal units, while traditional carloads increased 3.3%.

Rising Numbers: For the first 25 weeks of 2026, U.S. railroads handled 12.67 million carloads and intermodal units, up 3.3% from a year earlier. That included 6.98 million intermodal units and 5.68 million carloads. The sustained rise in container traffic has also begun creating operational challenges across major U.S. rail networks as freight volumes continue to climb.

Across North America, weekly rail traffic increased 5% to 719,853 units. Canada reported a 4% rise in carloads but a 6.3% decline in intermodal volumes, while Mexico saw intermodal traffic jump 21.1% despite an 8.5% drop in carloads

The Trump administration has declined to renew the U.S.-Mexico-Canada Agreement (USMCA) in its current form, setting the stage for a fresh round of negotiations over North America's most important trade pact

What’s Happening? While the agreement will remain in force for at least another decade unless a member withdraws, the White House said it wants to address trade imbalances and other shortcomings before extending it for another 16-year term.

Key Details: The decision reflects President Trump's growing dissatisfaction with the deal he signed in 2020, despite once calling it the "best agreement we've ever made." Officials said the administration is particularly concerned about U.S. trade deficits with Canada and Mexico, arguing that recent tariffs have already reshaped trade relations.

Big Picture: The agreement governs nearly $2 trillion in annual trade across North America and requires 75% of automotive components to be produced within the region to qualify for tariff-free treatment. Automakers, manufacturers, and farmers now face the prospect of prolonged negotiations over rules that underpin cross-border production.

Despite double-digit import growth at major U.S. ports, many drayage trucking companies say business remains weak.

Key Stats: According to Descartes Systems Group's monthly Global Shipping Report, U.S. container imports climbed 11.5% year over year to 2.43 million TEUs in May.

The Port of Los Angeles and Port of Long Beach separately reported container volume increases of 17% and 31.7%, respectively, with much of the surge driven by shippers frontloading cargo ahead of potential tariff changes.

No Change: But higher port volumes haven't translated into better business for truckers. Harbor Trucking Association CEO Robert Loya said the industry remains stuck in a freight recession, with excess carrier capacity, weak freight rates, and rising operating costs continuing to pressure margins. More cargo is also moving directly onto rail, limiting trucking demand from the ports.

Congestion Issues: Terminal congestion is adding further strain. Carriers reported throughput issues at Newark, New Orleans, Mobile, and Oakland, while appointment delays and tighter chassis availability are slowing container pickups.