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Logistics This Week: CHR-RXO, Peak Rates, AI

Newspaper reading “GLOBAL CLIMATE ACCORD SIGNED IN BERLIN” beside coffee
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The week of October 5 opened with the largest freight brokerage deal ever: C.H. Robinson agreed to buy RXO for $5.8 billion. Meanwhile, peak-season surcharges kicked in across parcel and LTL, and truckload rates started climbing again. Diesel, on the other hand, eased for a second straight week. Finally, Descartes and Parallel Systems made the week’s biggest technology news, with new AI agent tools and fresh funding for autonomous rail.

Deals and carriers

On Monday, C.H. Robinson agreed to acquire RXO in a cash-and-stock deal worth $5.8 billion. As a result, the No. 1 and No. 3 U.S. truck brokers will combine into a company worth more than $25 billion. C.H. Robinson expects about $300 million in yearly cost savings within two years of closing. The deal is expected to close in the first half of 2027.

In a smaller deal, Redwood Logistics launched a consulting arm, Redwood Advisory, by acquiring JBF Consulting.

At the same time, the carrier market is under strain. About 16 smaller trucking companies have recently filed for bankruptcy or restructuring, citing fuel costs, according to Transportation Insight. Truck driver pay still rose in 2025 despite the freight downturn, Transport Topics reported.

Rates, fuel and trade

Diesel. The national average fell to $6.199 a gallon on October 5, down from the record $6.529 on September 21. Even so, it remains far above last year’s levels. Truckers are still “using every trick they can” to cope, the Wall Street Journal reported.

Truckload. Cost per mile bottomed in late September and is rising again, according to Transportation Insight. Tender rejections are near 14%, and could top 20% by December. Consequently, some carriers are refusing peak volume at current rates.

LTL. Old Dominion’s 4.9% rate increase took effect October 5. It follows earlier increases from ArcBest (5.9% in June) and Saia (7.1% in July).

Parcel. Peak surcharges are now live at UPS, FedEx, OnTrac and USPS. In addition, DHL Express set a 5.9% average 2027 rate increase for U.S. accounts, matching FedEx. UPS is expected to announce its own 2027 increase later this month.

Ocean. With Golden Week over, Chinese factories are restarting. Meanwhile, the Port of Long Beach projects imports about 50% above last year for each of the next three weeks.

Trade. On October 7, the U.S. Trade Representative opened public comments for the next USMCA review. Comments are due January 12, 2027, ahead of a July 1, 2027 review deadline. Separately, the U.S.–Canada tariff dispute continues, while talks with Mexico are further along.

Technology

Descartes Agent Control Plane. On October 6, Descartes launched a platform that lets AI agents complete multistep logistics tasks across company software and trading partners. Importantly, customers set the permissions and approval points, so humans stay in control. “The Agent Control Plane brings our logistics capabilities together so AI agents can take on more of that work,” said Ken Wood, Descartes’ EVP of product management.

Parallel Systems raises $100M+. On October 7, the autonomous freight rail startup closed a Series C led by AVP. The money will scale production of its Panther rail vehicle and support international expansion. Currently, Parallel is running a Georgia pilot with Genesee & Wyoming under Federal Railroad Administration supervision. According to founder and CEO Matt Soule, the round is “the strongest market signal to-date that autonomous freight rail is ready for its moment.”

Other moves. Shippo expanded its AI shipping tools ahead of peak season. Likewise, Gallatin AI raised a $50 million Series A for military logistics. In contrast, the Wall Street Journal reported that electric big rigs still struggle to compete, even with diesel near record highs.

What shippers should watch next week

  1. Monday’s diesel reading. If prices keep falling, fuel surcharges should ease. However, surcharge tables lag, so check your carrier invoices.
  2. Truckload capacity. With rejections rising, lock in peak capacity now rather than relying on the spot market.
  3. Parcel residential surcharges. These start October 24 at OnTrac, October 25 at UPS and October 26 at FedEx. Also, watch for UPS’s 2027 rate increase.
  4. NRF import forecast. It is expected within a week and should show whether the import surge is restocking or front-loading ahead of the January 10, 2027 U.S.–China tariff truce deadline.
  5. USMCA comments. If you ship across North American borders, consider filing comments before January 12, 2027.

Sources

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