EPISODE · Apr 28, 2026 · 3 MIN
Phantom Capacity Squeezes Cross-Border Freight, Wabtec Q1 Beats, & TFI's Mixed Results | The Morning Minute
from FreightCasts · host FreightWaves
In this episode, we kick things off by examining a puzzling phenomenon in cross-border logistics where capacity appears plentiful on paper but remains brutally tight in practice. According to Uber Freight's senior vice president overseeing cross-border operations, the real constraint isn't a lack of drivers overall but rather a critical shortage of drivers who meet increasingly stringent compliance and security standards. With northbound demand into the U.S. running two to three times higher than southbound flows and uncertainty around the upcoming USMCA review slowing nearshoring investment, carriers are struggling to reposition equipment fast enough to keep pace with U.S.-bound freight. Shifting gears to the rails, we examine how rail technology giant Wabtec delivered a powerful start to 2026 with solid execution across both its freight and transit divisions. First quarter revenue grew 13% to $2.95 billion while adjusted earnings per share surged 18.9% to $2.71, driven by a 52.5% jump in equipment sales from higher locomotive deliveries and a remarkable 75.7% increase in digital sales fueled by strategic acquisitions. On the strength of these results, Wabtec raised its full-year adjusted earnings per share guidance by 20 cents at the midpoint, projecting growth of 16.5% for 2026. Finally, we unpack the contrasting fortunes at a major Canadian transportation company where TFI International's Truckload sector improved while its LTL division struggled in the first quarter. TFI handily beat Wall Street expectations with non-GAAP earnings per share of 69 cents—8 cents above consensus—as its Truckload segment posted a 14.32% jump in operating income and adjusted EBITDA growth exceeding 4%. However, the less-than-truckload division saw its combined operating ratio deteriorate 220 basis points to 95.3% and operating income decline 35.12%. Despite the mixed performance, management issued strong second quarter guidance, projecting adjusted diluted earnings per share of $1.50 to $1.60—more than double the first quarter result. Follow the FreightWaves NOW Podcast Other FreightWaves Shows Learn more about your ad choices. Visit megaphone.fm/adchoices
What this episode covers
In this episode, we kick things off by examining a puzzling phenomenon in cross-border logistics where capacity appears plentiful on paper but remains brutally tight in practice. According to Uber Freight's senior vice president overseeing cross-border operations, the real constraint isn't a lack of drivers overall but rather a critical shortage of drivers who meet increasingly stringent compliance and security standards. With northbound demand into the U.S. running two to three times higher than southbound flows and uncertainty around the upcoming USMCA review slowing nearshoring investment, carriers are struggling to reposition equipment fast enough to keep pace with U.S.-bound freight. Shifting gears to the rails, we examine how rail technology giant Wabtec delivered a powerful start to 2026 with solid execution across both its freight and transit divisions. First quarter revenue grew 13% to $2.95 billion while adjusted earnings per share surged 18.9% to $2.71, driven by a 52.5% jump in equipment sales from higher locomotive deliveries and a remarkable 75.7% increase in digital sales fueled by strategic acquisitions. On the strength of these results, Wabtec raised its full-year adjusted earnings per share guidance by 20 cents at the midpoint, projecting growth of 16.5% for 2026. Finally, we unpack the contrasting fortunes at a major Canadian transportation company where TFI International's Truckload sector improved while its LTL division struggled in the first quarter. TFI handily beat Wall Street expectations with non-GAAP earnings per share of 69 cents—8 cents above consensus—as its Truckload segment posted a 14.32% jump in operating income and adjusted EBITDA growth exceeding 4%. However, the less-than-truckload division saw its combined operating ratio deteriorate 220 basis points to 95.3% and operating income decline 35.12%. Despite the mixed performance, management issued strong second quarter guidance, projecting adjusted diluted earnings per share of $1.50 to $1.60—more than double the first quarter result. Follow the FreightWaves NOW Podcast Other FreightWaves Shows Learn more about your ad choices. Visit megaphone.fm/adchoices
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Phantom Capacity Squeezes Cross-Border Freight, Wabtec Q1 Beats, & TFI's Mixed Results | The Morning Minute
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