Transportation & Logistics: Highlights and Key Takeaways from the American Trucking Associations Conference

We recently spent three days at the American Truckload Associations annual Management Conference & Exhibition and spoke with a wide range of over-the-road carriers, insurance brokers, autonomous truck developers, and dedicated fleets. Freight demand was seen as flat overall, with some pockets of strength, but was generally overshadowed by rising driver, insurance premium, and claims costs that was punctuated by Werner's negative pre-announcement on Monday. We continue to expect the Federal Motor Carrier Safety Administration (FMCSA) will remain active on enforcement, but we see a much longer path for the expected regulatory changes to have an impact on freight markets compared to actions taken over the last year. There appears to be significant support for boosting FMCSA's resources and ~$1B annual budget, even with the midterm elections ahead. More impactful insurance changes are on the horizon as shippers ask more questions about broker selection post-Montgomery, and we believe FMCSA