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🚛 The Anatomy of a Chameleon Carrier

by, Rob Carpenter

A recent fatal crash in Indiana that killed four Amish men has drawn federal investigators deep into a network of affiliated trucking companies accused of operating under what the industry call the “chameleon carrier” model. This is a system where companies shut down and reopen under new authorities to evade enforcement.

While the investigation is ongoing, and has caught the eyes of DOT Secretary Sean Duffy, the larger issue isn’t just one carrier or one crash. It’s a business model that has been quietly spreading across major freight markets for years.

Step 1: Authority Is Easy to Get

Starting a trucking company in the U.S. is surprisingly simple.

A new operator can:

• File for motor carrier authority

• Pay a relatively small filing fee

• Obtain insurance

• Begin operating within weeks

There’s no immediate safety audit and often no verification that the company has real infrastructure, maintenance programs, or experienced personnel.

This creates an opening:
Some operators apply for multiple authorities, using them one after another. When one company accumulates violations or scrutiny, it closes and another takes its place, often with the same trucks, drivers, and dispatchers.

To regulators, they appear separate.
To brokers and shippers, they often present themselves as one unified fleet.

Step 2: Leasing Drives the Economics

Many “high growth” carriers don’t own their trucks, they lease them.

Leasing allows:

• Minimal upfront capital

• Limited financial exposure

• Rapid scaling

In some cases, trucks are then leased again to drivers under lease purchase agreements. On paper, drivers are building ownership. In reality they shoulder:

• Fuel costs

• Maintenance

• Insurance

• Tolls

• Weekly truck payments

Meanwhile, the carrier retains control of dispatch, rates, and accounting.

Several lawsuits in recent years have alleged practices such as:

• Falsified rate confirmations

• Excessive deductions

• Drivers receiving less than promised percentages

Not every lease program is abusive, but the structure can be exploited when transparency disappears.

Step 3: The Labor Pipeline

The model often depends on drivers who have limited alternatives.

This can include:

• Immigrant drivers unfamiliar with U.S. labor protections

• Individuals rebuilding careers after legal troubles

• Newly licensed CDL holders with little experience

Some carriers recruit through affiliated training schools or recruiting pipelines, placing drivers into trucks almost immediately after licensing.

The result can be a workforce with:

• High turnover

• Limited leverage

• Limited ability to challenge questionable practices

Step 4: Insurance is a Weak Barrier

Insurance was supposed to be one of the final safeguards preventing unsafe carriers from operating.

In practice:

• Policies can sometimes be issued quickly

• Minimum coverage requirements have not kept pace with inflation

• Some high risk insurers specialize in covering operations others reject

When a catastrophic crash occurs, a carrier with minimal assets and minimal coverage may simply shut down, leaving victims, courts, and insurers to sort out the consequences.

Step 5: Growth Above All

The structure incentivizes rapid expansion:

• More trucks mean more deductions and revenue

• More drivers mean more cash flow

• Multiple authorities provide flexibility

Some networks present themselves differently depending on the audience:

• Small independent carriers to regulators

• Large fleets to brokers

• Community success stories in recruiting channels

Step 6: When the System Meets Reality

On a long enough timeline, the weakest link in the chain gets exposed, and it usually on the road.

Federal research has shown that carriers with characteristics associated with reincarnated or “chameleon” operations have historically been far more likely to be involved in serious crashes than typical new entrants.

Nearly 5,500 people die each year in truck crashes in the United States, and the majority of those killed are occupants of other vehicles.

Every unsafe truck on the road is a risk not just to its driver, but to families traveling beside it.

Why the Cycle Continues

Several safeguards exist, but each has limitations:

• Insurance requirements are outdated

• New entrant safety audits are often delayed

• Screening programs struggle with volume

• Driver protection laws often rely on complaints that never get filed

As a result, enforcement frequently happens after serious crashes instead of before.

What This Means for the Industry

The vast majority of carriers operate responsibly.
The vast majority of drivers are professionals who care deeply about safety.

But a relatively small number of bad actors can damage:

• Public trust in trucking

• Insurance costs across the industry

• Freight market stability

• Most importantly, human lives

Final Thought

We cannot simply just blame the individual drivers for these crashes, it’s stepping over hundred dollar bills for pennies. There are thousands of “companies” who are hiring these drivers, and operate off of this this system. It is going to require a full scale overhaul, as well as putting these carriers out of business to stamp this problem out.

For more, read Rob’s article on FreightWaves

What do you think? For Driver Submissions, questions, and comments contact me at: [email protected] or Text me directly at 423-275-2444

Tale Lites Throwback

An old photo from the days of Lombard Trucking in Waterbury, CT. Have any pictures of your older equipment? Send them in!

📝 How Does the Super Bowl Effect Trucking?

When most people think about the Super Bowl, they think about football, commercials, and halftime shows. But as we in the industry know, no matter what it is, everything is logistics. There’s nothing happening in the US that does not involve the use of trucks!

This year’s Super Bowl in San Jose, CA triggered a noticeable spike in inbound freight as the region prepared for game week.

What Moves Before the Big Game

Hosting the Super Bowl takes far more than moving team equipment.

In the weeks leading up to kickoff, freight includes:

• Food and beverages

• Temporary structures and staging equipment

• Broadcast and event gear

• Merchandise and tailgating supplies

• Last minute expedited shipments

New numbers from Truckstop.com showed a clear jump in inbound freight during the final week of January.

Inbound load volume increases (week over week):

• Flatbed: +30%

• Reefer: +18%

• Van: +10%

Year over year, flatbed saw the biggest surge, reflecting the demand for staging, infrastructure, and event setup materials.

Rates Followed the Freight

Higher demand pushed rates up for some equipment types:

Average inbound spot rates:

• Reefer: $2.72 per mile (+12% WoW)

• Flatbed: $3.02 per mile (+3% WoW)

• Van: $2.18 per mile (down slightly week over week)

Reefer and flatbed carriers benefited the most from Super Bowl related freight, while van volumes increased but rates remained softer.

The Super Bowl isn’t just the biggest game of the year. For trucking, it’s one of the most concentrated freight pushes on the calendar.

And while the teams get after it on the field, carriers, especially reefers and flatbeds, are able get a bump in revenue.

Read more here

📩 What are your thoughts? Did you haul any freight related to the Super Bowl?
Reply to this email or text (423) 275-2444 

🩺 Health Tip of the Week: B-Vitamins For Drivers

B vitamins help your body:

• Convert food into energy (important during long driving shifts)

• Support brain function and focus

• Maintain healthy nerves and red blood cells

• Reduce fatigue and brain fog

Low B vitamin levels can leave you feeling tired, sluggish, and mentally drained.

Why Truckers Can Run Low

Drivers often fall short because:

• Truck stop food is low in B vitamins

• Long shifts and stress increase nutrient demand

• Skipping meals or inconsistent eating habits

On the mental health side B vitamins, especially B6, B9 (folate), and B12 help:

• Produce serotonin and dopamine, the chemicals that regulate mood

• Support memory and concentration

• Reduce mental fatigue and brain fog

• Support the nervous system during periods of stress

Easy Ways to Get More

Simple options that work on the road:

• Eggs

• Beef or turkey

• Tuna packets

• Greek yogurt

• Bananas

• Fortified oatmeal

A basic B-complex supplement can also help if your diet is inconsistent.

Energy drinks and caffeine can give you a spike, but B vitamins help your body actually produce natural energy.

Partner Post of the Week

Dana Lord shows drivers one of our clutch locations in Clearwater/St. Pete Florida! You can get $20 off your next booking by using the promo code dnd20

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