A tractor-trailer is parked at JB Hunt Transport Services Inc.’s facility in Columbus, Ohio.
Luke Charette Bloomberg | Getty Images
Shares of several trucking and logistics companies fell on Thursday on concerns that new artificial intelligence tools could significantly reduce significant transportation inefficiencies, leading to a decline in demand for the industry’s services.
New tools from AI companies Algorithm Holdings Trucking companies have become the latest victims of the market’s AI fears, spurring historic declines in software stocks and real estate companies. The notable market rotation comes as investors increasingly scrutinize traditional businesses that may not be able to keep up with rapid advances in AI.
Major Trucking and Logistics Stocks CH Robinson and RXO They fell 14.5% and 20.5%, respectively, during Thursday trading. JB Hunt Transport Service Although it decreased by about 5%, XPO Logistics companies lose nearly 6% Expeditors International of Washington It fell by about 13.2%.
“There is a renewed conversation surrounding open source automation agents like Molt Bot that have increased potential to automate routine back-office tasks and help level the technology playing field for small businesses,” Baird analyst Daniel Moore said in a note.
“Automation is not a new topic,” he said, reiterating his superior assessment of CH Robinson and the Expeditors.
shares of algorithmMeanwhile, the stock, which was a penny stock before Thursday, soared 29.9%.
Algorhythm announced earlier this week that by deploying SemiCab’s platform to real-world customers, operators can now expand cargo volumes by 300% to 400% without increasing headcount. According to a press release, the SemiCab platform reduces “empty freight miles” by more than 70% across its active customer network. Citing data from Mordor Intelligence, the company said nearly one truck every three miles is driven empty, resulting in more than $1 trillion in lost freight spending each year.
“What we are proving at SemiCab is that utilization increases dramatically when freight is managed as a coordinated network rather than individual transactions. The significant reduction in empty miles that we are able to achieve for our customers represents a fundamental change in the way the logistics economy works,” said Ajesh Kapur, CEO of SemiCab.
Algorithm previously focused on developing in-car karaoke systems, but sold its singing machine business to Stingray in 2025 for $4.5 million before pivoting to an AI cargo platform.
Separately, investors are watching how trucking companies will be affected by a ruling announced Wednesday by U.S. Secretary of Transportation Sean P. Duffy that would ban “unqualified foreign drivers” from obtaining licenses to drive commercial trucks and buses.
Mr Duffy said the government’s reforms aim to address safety concerns by preventing “foreign drivers” who have not undergone consular or interagency vetting from obtaining commercial driver’s licenses. Consular screening generally applies to non-U.S. nationals.
