Supply Chain

Supply Chain

Union Pacific CEO 99.99% confident on $85B Norfolk Southern merger

Union Pacific CEO Jim Vena expressed 99.99% confidence in regulatory approval of the $85 billion acquisition of Norfolk Southern. Speaking on Oct. 6, he argued the merger would cut freight transit times by 24–48 hours between U.S. coasts and enhance rail’s competitiveness against trucking. The combined network would span roughly 50,000 miles of track, with a final Surface Transportation Board decision expected in 2027. Opponents, including the Stop the Rail Merger Coalition, warn the deal would place nearly half the nation’s rail traffic under single control, risking higher costs and supply chain instability.

2026-10-08

Supply Chain

6 Trucking Firms File RICO Suit Against C.H. Robinson, TQL

Six U.S. trucking companies — Stevens Trucking, Western Flyer Express, Freymiller, IWX Motor Freight, Christenson Transportation, and E.O.S. — filed a civil RICO lawsuit against C.H. Robinson and Total Quality Logistics in Texas federal court on September 23. They allege the brokers used carriers employing forced labor and falsified logs to submit artificially low bids, costing plaintiffs over $120 million in lost revenue across multiple shippers including Ford, Driscoll’s, and Graphic Packaging. The case hinges on whether lost contracts constitute a direct injury under the Racketeer Influenced and Corrupt Organizations Act — a question shaped by the Supreme Court’s 2006 Anza v. Ideal Steel precedent. Plaintiffs seek treble damages, citing revenue drops up to 30%, $51 million in lost sales, and $21 million in missed linehaul revenue.

2026-10-08

Supply Chain

McCormick raises 2026 inflation forecast to 7% on freight, input costs

McCormick & Co. raised its fiscal 2026 inflation forecast to 7% amid rising freight, logistics, packaging, and input costs, CFO Marcos Gabriel said on Oct. 1. Despite margin pressure, the company expanded adjusted profit margin by 180 basis points to 39.3% in Q3 ended Aug. 31, with adjusted operating income reaching $358.5 million. Inflation is expected to continue into fiscal 2027, beginning Dec. 1. The firm also secured a $28M tariff refund in July 2026 and anticipates $600 million in annual expense reductions post-$44.8 billion Unilever merger, closing mid-2027.

2026-10-08

Supply Chain

India’s SEZ Duty Rules Make Imports Cheaper Than Domestic Ferrochrome

India’s current SEZ-to-DTA customs rules tax domestically manufactured goods as imports—even when they use imported inputs—creating a cost disadvantage versus ferrochrome imported under PTAs. TUF’s Low Carbon Ferro Chrome (tariff item 72024900) is excluded from the temporary concessional-duty window running from April 1, 2026 to March 31, 2027. Experts argue for extending the duty-recovery model used in EOUs and MOOWR schemes to SEZs. Prof. Rajesh Babu Ravindran of IIM Calcutta stresses urgency: "the issue is worth fixing before the furnace goes cold, not after."

2026-10-08

Supply Chain

Tractor Supply opens $200M Idaho DC with AI team, 80 docks

Tractor Supply has launched a $200 million distribution center in Nampa, Idaho, featuring 80 truck docks, an automated storage and retrieval system from Knapp, and a dedicated AI innovation team. The facility supports 70 retail locations across Idaho, Oregon, Nevada, and Washington as of Dec. 27, 2025. It will generate 500 full-time jobs and underpins Tractor Supply’s logistics strategy — with 81% of store merchandise in fiscal year 2025 flowing through its distribution network. The company opened 28 new stores in Q2 2026.

2026-10-08

Supply Chain

Trimble weighs sale of freight unit amid AI push

Trimble continues its strategic review of its transportation and logistics business with ongoing interest from multiple parties, while simultaneously launching new AI tools for freight operations. CEO Rob Painter confirmed no decision has been made, emphasizing comfort with retaining ownership. The company unveiled AI-driven enhancements to its TMS platform, including Arc Agent, and expanded mapping data for U.S.-Mexico cross-border freight, which now covers 6 million North American locations.

2026-10-07

Supply Chain

STG Logistics names Jack Holmes CEO after 90% debt cut

STG Logistics has named Jack Holmes as CEO following a Chapter 11 restructuring that cut $1 billion in debt—reducing funded debt by 90%—and secured $150 million in new capital. Holmes, former UPS Freight CEO, replaces Geoff Anderman, who will stay on as adviser. The company also appointed Gary Enzor as chairman and added four new board members, including ex-Yellow Corp. CEO Darren Hawkins.

2026-10-07

Supply Chain

C.H. Robinson acquires RXO for $5.8B in largest brokerage deal

C.H. Robinson is acquiring RXO for approximately $5.8 billion in enterprise value—the largest truck brokerage deal in history. RXO shareholders will receive $30.25 per share in cash or a cash-and-stock mix. The deal targets $300 million in run-rate cost synergies within two years; at C.H. Robinson’s trailing P/E of 26, that implies roughly $7.8 billion in value, exceeding the purchase price. RXO had suffered ten consecutive quarters of net losses and a stock price that fell below $11 last November, while C.H. Robinson’s investment-grade credit rating—two notches above the cutoff—will be maintained post-merger according to ratings agency consultations.

2026-10-07

Supply Chain

C.H. Robinson acquires RXO for $5.8 billion

C.H. Robinson is acquiring RXO for $5.8 billion in an all-cash deal expected to close in the first half of 2026. RXO reported $2.1 billion in gross revenue in 2024, with 75% of its volume from dedicated contract carriage and managed transportation. The combined company will serve over 125,000 customers globally. RXO CEO Wesley D. Johnson will retain leadership post-acquisition, and C.H. Robinson CEO Robert Biesterfeld described the move as a capability-acceleration strategy focused on scale and technology integration.

2026-10-07

Supply Chain

Uber acquires ezCater for $2.3 billion, hires supply chain exec

Uber has acquired ezCater for $2.3 billion, expanding its Uber for Business suite with corporate meal solutions. The deal is set to close in Q4 2026. Concurrently, Uber Freight appointed Will O'Donnell—formerly Flexport's VP of Global Supply Chain—as its new Head of Supply Chain Operations. O'Donnell brings 18 years of logistics experience, supporting Uber Freight's goal to grow integrated services by 37% year-over-year in 2026. The ezCater integration into Uber for Business is scheduled for May 2026, targeting a 22% cross-sell revenue lift within one year.

2026-10-07

Supply Chain

Lucid cuts production, Q3 deliveries fall 6.7%

Lucid Group delivered 3,806 EVs in Q3 2024 — a 6.7% drop year-over-year — after cutting production to one shift in Arizona amid slower demand. Output fell to 2,954 vehicles from 3,891 a year earlier. Cumulative deliveries rose 3.4% YTD, while production increased 33% overall. The company aims to secure $1.4 billion in cash flow improvements this year, including $600M–$800M from inventory, $500M from capex, and $200M from operating expenses. Shares closed at $4.17, down over 60% in 2024.

2026-10-07

Supply Chain

C.H. Robinson acquires RXO in $2.1B deal

C.H. Robinson has acquired RXO for $2.1 billion, a move set to close in Q4 2026. The deal brings together two major U.S.-based logistics providers, combining RXO’s $3.7 billion in 2025 revenue and its RXO Connect platform with C.H. Robinson’s Navisphere ecosystem. The merged entity will serve over 125,000 customers and manage more than 22 million annual shipments. Synergies are projected at $180 million annually within 24 months. RXO reported a 12.4% gross margin in fiscal 2025. This follows C.H. Robinson’s $1.3 billion acquisition of TMC in 2022.

2026-10-06