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Swift Transportation Faces 22M Legal Battle Over Driver Status

A U.S. federal judge ruled that some owner-operators at Swift Transportation should be classified as employees rather than independent contractors. The case will proceed in federal court and could have implications for the entire trucking industry and the 'gig economy' model. The company has set aside $22 million in reserves to address potential class-action lawsuits related to this classification issue. This ruling highlights the ongoing debate and legal challenges surrounding worker classification in the evolving landscape of the modern workforce.

01/29/2026 Logistics Industry Insights

Target Overhauls Supply Chain for Smallstore Efficiency

Target is testing new delivery strategies to shorten replenishment cycles and reduce in-store inventory, particularly in its smaller format stores. Through initiatives like piloting “flow centers,” upgrading warehouse management systems, and acquiring Shipt, Target is reshaping its supply chain. This aims to address e-commerce competition and enhance the competitiveness of its small store strategy. The focus is on optimizing the supply chain to ensure efficient and timely delivery of goods to these smaller locations, ultimately improving customer satisfaction and operational efficiency.

01/29/2026 Logistics

CSX Rail Strategy Draws Regulatory Scrutiny Customer Complaints

CSX Transportation's implementation of Precision Scheduled Railroading (PSR) is facing significant challenges. The Surface Transportation Board (STB) has raised serious concerns, customers are complaining, and employee morale is low. Operational data is deteriorating, and efficiency improvement targets seem unattainable. The future of CSX is uncertain, requiring improved communication, a focus on customer needs, better employee relations, and a potential adjustment of its PSR strategy to overcome current difficulties. The company needs to address these issues to navigate its path forward.

01/29/2026 Logistics Industry Insights

Supply Chains Prioritize Cost Control Amid Labor Shortages

A Gartner report indicates that cost control and decision optimization are primary drivers for supply chain investment, but talent shortages are a significant concern. The report suggests companies adopt a multi-pronged approach to address the talent gap and enhance supply chain competitiveness. This includes strengthening employer branding, optimizing compensation, expanding talent pools, deepening university-industry partnerships, and promoting technological innovation. Addressing the talent shortage is crucial for maximizing the return on supply chain investments and achieving long-term success.

01/29/2026 Logistics Industry Insights

US Services Sector Defies Economic Slowdown ISM

The November US ISM Non-Manufacturing Report indicates continued solid growth, with the NMI index reaching 60.7. While business activity and new orders remained strong, the sector faces challenges including a skills shortage in the labor market and persistent upward pressure on prices. Tariffs and trade friction introduce uncertainty. Experts view the economic outlook as optimistic but emphasize the need to address these challenges. Businesses and policymakers should proactively respond to these factors to sustain growth and mitigate potential risks.