Montgomery ruling reshapes shipper liability; freight rates surge

The Supreme Court's recent Montgomery vs. Caribe Transport II decision—which clarified broker liability under federal safety exceptions—is rippling far beyond brokers themselves. S. H.

Robinson) publicly warned that shippers now face potential exposure to state-level liability claims, fundamentally altering risk management and carrier vetting processes across the supply chain. Simultaneously, the freight market is experiencing sharp strength. 64/mile, with analysts projecting continued rallies through the summer. This capacity tightness stems partly from an unexpected realization: immigrant workers have been critical to trucking supply, and recent Trump administration crackdowns on immigration and non-domiciled CDLs have accelerated driver departures and reduced new entrant capacity.

Fuller estimates the industry is entering a multi-year upswing after four years of recession, likely bringing historically elevated rates. Shippers face a dual squeeze: expanding liability exposure under Montgomery and shrinking carrier capacity in a bullish freight market. H. Robinson are positioned to benefit as smaller brokers face increased regulatory burden, but shippers must act swiftly to strengthen due diligence, secure capacity commitments, and reassess carrier partnerships.