Knight-Swift CEO says CDL crackdown could fuel lasting trucking recovery

Knight-Swift Transportation has slashed its approved brokerage carrier pool by about two-thirds over the last couple of years while tightening its vetting standards for carriers, according to the company's CEO, Adam Miller. Speaking at the WEX OTR Summit in Jacksonville, Florida, Miller revealed the reduction in carrier numbers, attributing it to a focus on securing reliable and safe motor carriers for the company's brokerage operations.

Miller explained that the company aims to maintain a more stable and long-term recovery in the trucking market rather than experiencing rapid fluctuations in rates.

The trucking giant has become increasingly selective in choosing motor carriers for its brokerage services, as there have been growing concerns regarding cargo theft, highway safety, and broker liability. Knight-Swift sees potential for more sustainable freight recovery through a more robust carrier screening process. Miller stated that the company has strengthened its carrier qualification requirements over the past three years, partly due to increasingly sophisticated cargo theft schemes.

The firm now requires motor carriers to have been operating for at least one year before participating in its brokerage network.

Miller emphasized that brokers could face greater legal exposure if they hire trucking companies with questionable safety records, as highlighted by the U.S. Supreme Court ruling in Montgomery v. Caribe Transport II. He pointed out that brokers have historically prioritized lower transportation costs over stringent carrier qualification requirements. Miller suggested that brokers might now examine carrier safety records, operating history, and insurance coverage more closely to avoid potential legal exposure.

A major challenge for Knight-Swift is the growth of organized cargo theft, which has forced the company to reconsider the risks associated with hiring unfamiliar carriers. To address this issue, the company employs outside carriers in its brokerage operations, particularly in power-only arrangements where a contracted motor carrier provides a tractor to haul a trailer. Knight-Swift believes that stricter carrier screening could significantly reduce the number of trucking companies eligible to haul brokered freight.

The CEO also warned that major trucking accident verdicts and potential broker liability could lead to increased insurance costs for freight brokers. He suggested that insurers might reassess their exposure to claims involving motor carriers hired by brokers and charge higher premiums to account for the risk. Additionally, shippers are becoming more concerned about potential litigation if a motor carrier's insurance coverage proves insufficient.