The collapse of two California trucking companies is sending shockwaves across the state’s tightknit trucking industry and beyond.

The WSJ Logistics Report writes that the closures in July of TGS Transportation and GSC Enterprises are a sign that some of the state’s more robust carriers are under pressure after three years of rock-bottom freight rates and rising costs.

Avery Vise, a trucking analyst at FTR Transportation Intelligence, said that although tens of thousands of small trucking firms have gone out of business, the sector still has more trucks on the road than before the Covid pandemic. At the same time, carriers are battling rising costs for labor, equipment and insurance.

Trucking executives say the problems are compounded in California where carriers face some of the nation’s toughest emissions and employment laws.

TGS President Peter Schneider said the company ran as lean as possible. But it wasn’t enough to outweigh the added costs of recently purchased diesel trucks and additional company drivers.

The strains aren’t confined to California. Geoff Anderman, chief executive of Ohio-based STG Logistics, says there are signs of stress across the carrier base leaving executives to wonder how much longer folks can hold on.

• Punjabi truck drivers say they are being harassed after the arrest of an Indian-born driver who allegedly caused a fatal crash in Florida. (Los Angeles Times)

• Truckers serving the Indian ports of Mundra and Kandla walked out Friday, bringing cargo traffic to a standstill. (Journal of Commerce)

Digital freight forwarder Flexport will be profitable this year, but the company’s founder, Ryan Petersen, says it doesn’t really count. The WSJ Logistics Report’s Liz Young writes that Flexport’s profitability is thanks to a one-time boost from its recent sale of the technology and freight business from defunct truck broker Convoy to DAT Freight & Analytics for $250 million.

That’s a nice return on an acquisition Flexport scooped up two years ago for about $16 million. But it’s not good enough for Petersen, who has been working over the past two years to return the San Francisco-based company to profitability ahead of a potential initial public offering. The Flexport CEO said he’s focused on making the company profitable in terms of organic growth as he leads its expansion into new countries, cuts costs and tries to win business from larger competitors. He says Flexport is on track to hit profitability in 2026.

President Trump says tariffs will reap “billions” of dollars for the U.S.—and so far, he’s right. In a video report, the WSJ looks at how all of that money is collected and where it goes. 

Indian-Americans are feeling the pain from Donald Trump’s recent decision to raise to 50% tariffs on New Delhi. Cost increases are sweeping across enclaves like "Little India" in Central New Jersey, the WSJ’s Chao Deng reports. Business owners in the Oak Tree Road neighborhood say the tariffs are challenging for companies that sell by weight, like jewelers, and for retailers of artisanal products that can’t be made anywhere else. A sherwani, the long coat worn by an Indian groom now costs more than $3,100, up from $2,500 before tariffs.

Some businesses are absorbing the price increases for now. But the owner of a catering and restaurant business that imports most ingredients says he will have to raise menu prices by 10% to 15% if the tariffs aren’t reduced. Other companies say they may have to stop importing certain items altogether because they’re already at the top end of what customers will pay.

• U.S. officials pressed developed economies to impose tariffs and sanctions on nations that buy Russian oil. (WSJ)
• U.S. and Chinese officials have begun a new round of economic talks in Madrid. (Bloomberg)
• Watchmaker Swatch has launched a special edition model that takes a swipe at 39% tariffs against Switzerland. (CNBC)

The Federal Reserve is this week expected to cut its key short-term interest rate for the first time in 2025. (WSJ)

Apple delayed the launch of its new iPhone Air model in China pending regulatory approval. (WSJ)

Denmark chose a European air defense system over the U.S.-made Patriot. (WSJ)

Boeing was hit with proposed fines of more than $3.1 million for alleged violations related to last year’s plane door-plug blowout. (WSJ)

Boeing employees who build military aircraft in the St. Louis area rejected the company’s latest contract offer. (New York Times)

Canadian Prime Minister Mark Carney wants to fast-track a new container terminal at the Port of Montreal. (Canadian Broadcasting Corporation)

Shore-based firefighters need better training for dealing with fires on board vessels, federal safety officials warned. (WorkBoat)

Customs agents at the Port of Baltimore intercepted a stolen bulldozer worth about $237,000 bound for Ghana. (Marine Insight)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.