Cliff Bates and Grace Maher, leaders in the trucking industry, warn that US freight markets are facing a “new ecosystem” driven by foreign drivers, fraudulent CDLs, and loopholes in English-language-proficiency enforcement, according to Noi Mahoney of Freight Waves. This influx of transient, low-cost drivers from Eastern Europe, South Asia, and other regions has depressed freight rates, raised insurance costs, and destabilized small American carriers. Fraudulent practices like double-brokering and manipulated e-logs have further worsened safety and financial conditions. Bates’ refrigerated carrier ultimately collapsed after losing millions, highlighting broader risks to American trucking capacity. Both experts emphasize the urgent need for reforms to ensure road safety and a fair, sustainable market for US drivers. Mahoney writes:
When Cliff Bates stepped in to help turnaround an Arkansas trucking company in late 2022, he expected the familiar industry story of a down cycle that would eventually rebalance.
Instead, he uncovered what he describes as a “new ecosystem” of trucking — powered by fraudulent CDLs, English-language-proficiency (ELP) loopholes, and a massive wave of non-domiciled foreign drivers — that he believes could permanently alter freight economics in the U.S.
“We’re living in a new ecosystem,” Bates told FreightWaves in an interview. “You’ve got foreign companies bringing in drivers who live in their trucks, don’t go home, make a fraction of what American drivers make, and undercut every rate.” […]
“This isn’t just about language, it’s not just guys coming across the Mexican border,” she said. “It’s drivers flying into Kentucky from Uzbekistan or Serbia, or into Chicago. That’s the part nobody is talking about.” […]
“All of a sudden, we were losing crazy amounts of money,” Bates said. “We were in all this debt.”
Bates became de facto CEO of the refrigerated carrier around the end of 2022 — and says the deeper he dug, the clearer it became that his company wasn’t just struggling with low rates. It was competing against an entirely different labor model. […]
“We used to run this trip from Georgia and back to Mississippi, and it paid $1,300, and two years later it pays $750,” Bates said. “I am wondering what is going on? At what point do we hit equilibrium? Fast forward to today, and rates are still where they are, and I know volumes are down, but rates are still depressed.” […]
“The federal government’s own website showed almost half a million new drivers added during what’s supposed to be a recession,” Bates said. “It didn’t make sense — until you look at non-domiciled CDLs.” […]
“This isn’t a red-or-blue issue,” Bates said. “The administration already stopped states from issuing new non-domiciled CDLs, but no one asks about the ones still on the road. They’re the common denominator in so many crashes. I think the government fears that removing them would seriously disrupt the economy.”
Maher agrees the moment demands attention beyond politics. “We’re asking for safe roads and a fair market,” she said. “And right now, we have neither.”
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