Posted on 02/13/2026 6:45:01 AM PST by SeekAndFind
Shares of several trucking and logistics companies declined Thursday on fears that new artificial intelligence tools could slash major freight inefficiencies, leading to less demand for the industry’s services.
A new tool from AI company Algorhythm Holdings has made trucking companies the latest victim of the market’s AI jitters, adding to the historic sell-off in software stocks and real estate companies. The notable market rotation has come as investors are increasingly scrutinizing traditional businesses that may not be able to keep up with rapid advancements in AI.
Leading trucking and logistics stocks C.H. Robinson and RXO dropped 14.5% and 20.5%, respectively, during Thursday’s session. J.B. Hunt Transportation Services declined about 5%, while XPO lost nearly 6% and logistics company Expeditors International of Washington fell about 13.2%.
There’s an “emerging debate around open-source automation agents such as Molt Bot that offer increased potential to automate routine back-office tasks and help equalize the technology playing field for smaller operators,” said Baird analyst Daniel Moore in a note.
He reiterated his outperform ratings on C.H. Robinson and Expeditors, saying “automation is not a new theme.”
Shares of Algorhythm, a penny stock before Thursday, popped 29.9%, meanwhile.
(Excerpt) Read more at cnbc.com ...
Cartels hit the least.
This would seem to be entirely counterintuitive. If AI can eliminate back office tasks, then trucking companies would become more efficient, no? And if they can optimize routing, then trucking companies should become more efficient again, no?
Why not Gold Medals that fall off and break?
The Dollar continues to de-value while people squeeze the last ounce of profit from businesses that now serve no purpose.
Why would trucks drive all over the country to deliver goods to unemployed people?
Don't get me wrong. I believe people should be employed productively, but this is the failing of "Capitalism" - making money off of capital. It can become a death-spiral of profiteering, just as much as Communism is a death-spiral of tyranny.
America needs a majority of private ownership of businesses, I believe.
It’s a tool to generate first drafts, it definitely helps me get a flying start on projects, but from that point on, it’s mostly my own effort after that.
I’ve heard it said, any endeavor involving AI should be 70/30, in favor of human effort vs AI. Anything else is just asking for trouble.
“Shares of several trucking and logistics companies declined Thursday on fears that new artificial intelligence tools could slash major freight inefficiencies ... leading to less demand for the industry’s services”
“They are reducing Empty Truck travel time by plugging in more carriage. It’s what any carrier would do if they could. Like going one way, unloading, then getting a full load return trip. Efficient instead of going one way then returning empty.”
so, rates SHOULD decrease, possibly leading to MORE goods being shipped instead of less? ... why would cheaper shipping rates lead to less demand for shippers?
Driverless big rigs already own the roads now, PepsiCo already is operating a fleet of Tesla big rigs for runs up to 400 miles, other smaller companies are testing them, it’s inevitable that driverless big rigs will be able the open roads in 5-10 years
Incorrect.
That is a big issue out there, and Duffy’s efforts there started immediately.
Source: a good friend is a medium haul trucker, and we talk/text a lot. He’s experienced talking to gov’t types assessing English proficiency. He’s glad to see those guys get sidelined and deported.
This is such a stupid story. Slashing logistical inefficiency is a great result. It will result in better trucking companies. Will the more inefficient ones go out of business? Yes. But if they adapt, there is plenty of business for all of them. We have been in a supply chain crisis since 2020. The more trucking companies shipping products efficiently, the better. It will drive consumer and other prices down.
First thing I would say is America already has a majority of private ownership of businesses; a huge giant majority is already in place.
Every industrial revolution has begun with people saying this is the end, capitalism has failed, everyone is going to be unemployed, only to have results that showed the exact opposite.
The country didn’t cease to exist with the train replaced horse and buggy, when horse and buggy was replaced by the automobile, when the train was replaced by airplanes, and the computer revolution didn’t end society.
The age of AI, robotics and autonomous vehicles will happen it’s only a matter of when.
Hmm well people who write code and I know a bunch of them who support AI and I support them in my line of work mentioned this very recent survey to me from late last year.
A comprehensive survey of 1149 developers reveals that nearly half of programmers consider AI-generated code to be functionally incorrect, with only 4% trusting its correctness completely. The data exposes a growing gap between AI hype and developer reality.
Trucking is a commodity market. When capacity rises faster than demand, spot rates fall. AI makes trucking more efficient, but efficiency in a commodity industry usually means lower prices and lower margins.
Tesla vehicles don’t require the same type of remote technical support to get around in cities.
As I reported to another poster, big rigs are already on the open road, PepsiCo is operating a fleet of nearly 100 Tesla big rigs for distances up to 400 miles. If every PepsiCO factory in America used Tesla Big rigs on runs up to 400 miles they could move a significant portion of their products to anywhere in the USA with autonomous big rigs.
You have to know that driverless technology will only get better and better, in 5-10 years a significant portion of cargo will be hauled by autonomous big rigs.
The age AI, Robotics, and Autonomous vehicles will happen it’s only a matter of when it happens.
Current automobiles whether EVs or ICEs also kill people when their drivers are drunk, tired or fail to pay attention to the road.
I predict over the next 5-10 years with more and more driverless vehicles or vehicles with people in them using the Full self-driving feature the roads will become significantly safer.
Yes, it is overall good news, especially for the consumer. But the trucking industry may see lower margins and lower profits, so there are some losers.
I think it’s a weird take to think that a freight scaling AI introducing efficiencies and thus lowering costs is going to result in a lowering of demand for those now cheaper services.
That’s not how markets work.
So instead of logistics companies dealing with Indian drivers, they'll have to deal with Indian tech support.
“ counterintuitive”
The EXACT word that popped into my mind upon starting this article.
Thank you. That is a great and succinct explanation I had not considered.
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