On the Move

For the last two years, many shippers have benefited from a relatively soft freight market. Capacity has generally been available, spot rates have remained manageable, and transportation budgets have been more predictable than they were during the supply chain disruptions of 2021 and 2022. This summer, however, several factors are beginning to shift the market. Between rising diesel prices, increasing spot market activity, seasonal produce demand, and a recent U.S. Supreme Court decision that could significantly impact broker and carrier operations, shippers should be preparing for a more challenging transportation environment in the months ahead. Spot Rates are Starting to Move Up After an extended freight recession, signs are emerging that capacity is beginning to tighten in certain regions and equipment segments. Seasonal produce season, increased summer construction activity, and carrier exits from the market are all contributing factors. Industry analysts have reported increasing spot market activity and upward pressure on truckload rates as we move into the summer shipping season. Many smaller carriers have spent the last two years operating on thin margins and are less willing—or able—to absorb additional operating costs. For shippers, this means: Higher spot market pricing during peak shipping periods Increased lead times for securing trucks in tight markets Greater volatility on short-notice freight More pressure on contract rates if fuel costs remain elevated Companies that rely heavily on the spot market may feel these impacts first. Fuel Prices Continue to Create Uncertainty Diesel remains one of the largest operating expenses for trucking companies, and recent geopolitical events have caused significant volatility in energy markets. Several industry reports have noted substantial increases in diesel prices during 2026, creating additional financial pressure for carriers. When diesel costs rise, carriers have several options: Increase fuel surcharge programs Seek higher linehaul rates Reduce service in lower-margin markets Become more selective about the freight they accept Even when contract fuel surcharge programs are in place, there is often a lag between rising fuel costs and reimbursement. That gap can create capacity disruptions, particularly among small and mid-sized carriers. Shippers should closely monitor fuel surcharge exposure and understand how rising fuel prices could impact both transportation costs and carrier availability. The Supreme Court's Broker Liability Decision Could Reshape the Industry One of the most significant developments affecting the transportation industry this year came from the U.S.Supreme Court. In May, the Court ruled that freight brokers can be sued under state negligence laws for the selection of unsafe motor carriers. The decision effectively removes a layer of federal protection that brokers have historically relied upon when defending negligent hiring claims. While the long-term impact remains to be seen, many industry experts expect the ruling to create several immediate changes: Increased Carrier Vetting: Brokers will likely implement stricter carrier onboarding and monitoring procedures. Safety scores, insurance compliance, authority history, inspection records, and operational performance will receive greater scrutiny than ever before. Reduced Capacity Availability: Some carriers that previously qualified for freight opportunities may find themselves excluded from broker networks due to increased risk concerns. This could further tighten available capacity in certain markets. Higher Insurance and Compliance Costs: Both brokers and carriers are expected to face increased insurance premiums and compliance-related expenses as the industry adjusts to the new legal environment. Those costs ultimately work their way into transportation pricing. More Focus on Safety and Documentation: The ruling reinforces the importance of working with transportation partners that have strong carrier qualification procedures, documented compliance processes, and ongoing monitoring programs. What Shippers Should Be Doing Right Now Rather than waiting for market conditions to tighten further, shippers can take several proactive steps: Review Transportation Budgets: Expect transportation costs to become more volatile through the summer and potentially into the fall. Strengthen Carrier and Broker Relationships: Strong partnerships often provide more reliable access to capacity when markets tighten. Increase Lead Time Where Possible: Last-minute freight is often the first area impacted when spot rates begin to rise. Evaluate Your Carrier Network: Make sure your transportation partners have robust carrier vetting and compliance procedures in place. Monitor Fuel Trends Closely: Fuel remains one of the largest variables affecting trucking costs, and continued volatility could influence freight pricing throughout the remainder of the year. Looking Ahead The freight market is not returning to the extreme conditions experienced during the pandemic, but the environment is becoming more complex. Rising fuel prices, tightening capacity, seasonal demand, and evolving legal risks are creating new challenges for shippers across the country. Companies that plan ahead, maintain strong transportation partnerships, and prioritize safety and compliance will be in the best position to navigate the months ahead. At Select Transport Partners, we continue to closely monitor market conditions, carrier capacity, fuel trends, and regulatory developments to help our customers stay ahead of potential disruptions and keep freight moving efficiently.

If you’re currently a W-2 broker at a large firm, you’re used to taxes being handled for you. You get your paycheck, taxes are withheld, and you move on. That changes when you become an independent freight agent. Going 1099 comes with more earning potential, but also more responsibility. Taxes are one of the biggest adjustments, and if you don’t plan for them up front, they can catch you off guard. Here’s what you need to know about managing taxes as an independent freight agent, and how to do it right from day one. You’re Not an Employee Anymore That means: No taxes are withheld from your commissions You’re responsible for paying self-employment taxes You’ll need to manage your own filings and payments Self-employment tax (which covers Social Security and Medicare) is currently 15.3%, and that’s before federal and state income taxes. 1. Set Aside Taxes From Every Check One of the most common mistakes new agents make? Spending their full commission without setting anything aside. A good rule of thumb is to set aside 25–30% of every commission check for taxes. This doesn’t need to be perfect, but it needs to be consistent. Pro Tip: Open a separate savings account just for taxes and move money into it every time you get paid. Treat it like a non-negotiable expense, not leftover cash. 2. Plan for Quarterly Tax Payments When you’re a W-2 employee, taxes are paid throughout the year automatically. As a 1099 agent, you’re expected to do that yourself through quarterly estimated payments. Typical due dates: April 15 June 15 September 15 January 15 (following year) If you skip these or underpay, you can face penalties, even if you pay everything at tax time. 3. Track Your Expenses One advantage of being an independent agent is the ability to deduct business expenses, but only if you’re tracking them. Common deductions for freight agents include: Home office (if you qualify) Phone and internet Load boards and software Office equipment and supplies Marketing and advertising Travel and client meetings These deductions can significantly reduce your taxable income, but they require documentation. If you don’t track it, you can’t deduct it. 4. Separate Business and Personal Finances Mixing personal and business expenses makes everything harder: bookkeeping, taxes, and audits. At a minimum, you should have: A dedicated business bank account A separate card for business expenses This keeps your records clean and makes it easier to see how your business is actually performing. It’s a simple step, but one that pays off quickly. 5. Consider an LLC as You Grow Most agents start as sole proprietors, which is fine. But as your book of business grows, many agents choose to form an LLC (limited liability company). Why? Adds a layer of liability protection Helps separate personal and business finances Can offer tax flexibility down the line Some agents also elect S-Corp taxation to reduce self-employment taxes, but that depends on your income and should be discussed with a CPA. 6. Use Basic Accounting Tools You don’t need a complex system, but you do need something. Accounting software helps you: Track income and expenses Stay organized for tax season Understand your cash flow Spreadsheets can work early on, but most agents outgrow them quickly. 7. Work With a Tax Professional You can figure this out on your own, but most successful agents don’t. A CPA or tax advisor can help you: Maximize deductions Stay compliant Avoid costly mistakes Plan ahead (not just react at tax time) Having guidance can make a big difference, especially when you’re just starting out. 8. Don’t Overlook Retirement Planning When you leave a W-2 role, you also leave behind employer-sponsored retirement plans. As an independent agent, you’re responsible for your own savings, but you also have access to options like: SEP IRA Solo 401(k) Traditional or Roth IRA These accounts can reduce your taxable income while helping you build long-term wealth. Is It Complicated? Yes. Is It Manageable? Also Yes. Taxes are one of the biggest mindset shifts when going independent, but they’re not a barrier. They’re just part of running a business. The agents who succeed long-term are the ones who: Set aside money consistently Stay organized Plan ahead instead of reacting Do that, and taxes become manageable, not stressful. The Right Partner Makes a Difference Going independent doesn’t mean going alone. At Select Transport Partners, we support agents with the back-office infrastructure, tools, and guidance they need to run their business effectively, including staying organized on the financial side. You focus on building your book. We help support everything behind the scenes. Visit our website to learn more about our agent program and how we support independent agents.

If you're working as a 1099 freight agent, taxes work very differently than when you're a W2 employee. No automatic withholding, no employer contributions - just you, your business, and the IRS. But with smart planning, you can stay compliant and keep more of what you earn. Here are key tax tips every independent freight agent should know: 1. Set Aside for Taxes Monthly The biggest mistake new agents make? Waiting until tax season to think about taxes. As a 1099 contractor, you’re responsible for federal, state, and self-employment taxes. A good rule of thumb: set aside 25–30% of your income into a separate account. 2. Track All Business Expenses You can deduct a wide range of expenses as a 1099 agent: Phone/internet Office supplies Load board subscriptions TMS and software tools (like CloneOps.ai or your Select-provided system) Business travel and meals Marketing expenses Use software like QuickBooks Self-Employed or Keeper to automatically track, categorize, and store receipts. 3. Make Quarterly Estimated Payments If you expect to owe more than $1,000 in taxes for the year, the IRS requires you to make quarterly payments. Set calendar reminders for: April 15 June 15 September 15 January 15 (of the following year) 4. Use a Bookkeeping or Tax Prep Service As your income grows, DIY taxes get risky. A CPA or tax preparer familiar with freight or 1099 contractors is a smart investment. Tools like Collective, Bench, or Taxfyle can help streamline filings and ensure you don’t miss deductions. Bonus Tip: Leverage Select’s back-office support and reporting to keep clean, organized records—making tax season far less stressful.