Freight Market Briefing: Rising Volumes Strain Driver Supply as California Pushes ZEV Adoption

## Freight Market Briefing: Rising Volumes Strain Driver Supply as California Pushes ZEV Adoption The North American freight market is showing renewed momentum, but the upturn is bringing fresh operational pressures for major carriers — particularly around driver availability — while regulators on the West Coast continue to push the industry toward cleaner fleets. ### Tight Driver Market Squeezes Large Fleets According to FreightWaves' SONAR Sitrep, surging van and flatbed volumes are driving rejection rates higher, creating a paradox for large trucking fleets: the very conditions signalling market recovery are making it harder to recruit and retain the drivers needed to capitalise on growing demand. As freight volumes climb, smaller and mid-sized carriers are competing aggressively for available drivers, often offering more flexible arrangements that larger fleets struggle to match. Rising rejection rates — a key indicator of capacity tightness — suggest that available trucks are increasingly insufficient to meet shipper demand, a dynamic that typically translates into upward pressure on spot rates. For maritime stakeholders, the inland freight squeeze carries direct implications. Port drayage operations, intermodal connections, and landside logistics chains are all sensitive to driver availability. Sustained tightness in the trucking labour market could extend cargo dwell times at major container ports and complicate supply chain planning for importers and exporters alike. ### California Opens New ZEV Truck Incentive Window On the regulatory front, California has launched its latest round of financial incentives aimed at accelerating the purchase of zero-emission vehicle (ZEV) trucks, FreightWaves reports. The new funding pool is designed to lower the acquisition cost barrier for fleets looking to transition away from diesel-powered vehicles. California has been at the forefront of emissions regulation for heavy-duty trucking, with mandates requiring an increasing share of new truck sales to be zero-emission in the coming years. The state's incentive programmes are seen as a critical bridge, helping carriers manage the higher upfront costs associated with battery-electric and hydrogen fuel cell trucks while the technology matures and charging infrastructure expands. For port-adjacent fleets and drayage operators — many of whom operate in and around California's major container gateways at Los Angeles and Long Beach — the funding represents a tangible opportunity to offset compliance costs as the state's Advanced Clean Fleets regulation continues to phase in. Industry observers note that uptake of ZEV incentives has been uneven, with smaller drayage operators often facing greater difficulty navigating application processes and managing the operational transition. Advocacy groups have called for streamlined access to ensure funding reaches the fleets that need it most. *Sources: FreightWaves SONAR Sitrep; FreightWaves ZEV incentives report.*