Freight Pulse & Law Update: Knight-Swift Opens 2027 Bids at Double Digits as a Tariff Lawsuit Tests Section 338

Rate asks are rising and rail is absorbing overflow, while a new lawsuit challenges 50% Canadian tariffs.

Why is Knight-Swift opening 2027 bids at double digits?

Knight-Swift reported Q3 adjusted earnings of $0.83 a share against $0.32 a year earlier and will open 2027 bids at “low-to-mid double digits.” Ex-fuel truckload revenue per loaded mile rose 9.7% as tractors in service fell 4.0% to 20,470.

• Total revenue hit $2.20 billion, up 14.2%; adjusted operating ratio improved 450 basis points to 89.3%.

• Q4 guidance: adjusted earnings of $0.78–$0.84 a share.

Can intermodal absorb the overflow cheaply?

No. Union Pacific posted a fifth straight record domestic quarter and CSX volumes rose, but CSX terminal dwell climbed 12% and on-time performance sat at 83%. J.B. Hunt is chasing margin repair in 2027 bids and calls drayage a bottleneck.

• UP domestic volume +13%, CSX intermodal +7%, Norfolk Southern +3%. J.B. Hunt loads +8% to 585,582.

What does the Section 338 suit mean for importers?

Filed October 20 at the Court of International Trade, Gellert Global Group’s complaint challenges 50% duties on Canadian goods under Section 338, a Smoot-Hawley provision unused for nearly a century until July. It argues Section 301 controls and collection skipped a mandatory 30-day wait. Filing alone does not pause collection.

• The importer brought in about $71 million of Canadian cheese in 2025 and expects roughly $40 million a year in duties.

• Preserve entry records and protest rights, and add tariff-change clauses to 2027 contracts.

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Sources:Case information