Montgomery Means Consolidation

Research evidence excerpt

Montgomery Means Consolidation

Equity Research

Industry Update — May 14, 2026

Logistics

Supreme Court Ruling Will Change Truck Landscape

Our Call Christian Wetherbee

The Supreme Court unanimously ruled against CH Robinson in its Montgomery case, Equity Analyst | Wells Fargo Securities, LLC

Christian.Wetherbee@wellsfargo.com | 212-214-8053

exposing brokers to incremental liability. This is a net positive across the truck complex, as

Robert H. Salmon, CFAit leads to consolidation.

Equity Analyst | Wells Fargo Securities, LLC

Robert.H.Salmon@wellsfargo.com | 212-214-5016

State Safety Preempts F4A - The US Supreme Court unanimously ruled that the F4A Ryan Deveikis

does not restrict a state's authority to regulate safety. The ruling means truck brokers can Associate Equity Analyst | Wells Fargo Securities, LLC

be held liable for negligent carrier hiring and the Montgomery case was remanded back to Ryan.Deveikis@wellsfargo.com | 212-214-8040

the lower court. While there will be a negative insurance impact for brokers, we believe the Matthew Hortopan

result will be consolidation across the tail of TL carriers and brokers, boosting rates and Associate Equity Analyst | Wells Fargo Securities, LLC

driving share from smaller brokers to larger players. Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Insurance Inflation - Incremental legal exposure and higher premiums are likely to drive Relevant Research:

higher insurance expense, which we believe could add ~50-100 bps of costs to large

Montgomery May Transform the Brokeragebrokers and more for small brokers. While liability may not be triggered frequently,

Modelthe threat of litigation will likely be enough to alter behavior, increasing friction in load

matching and insurance costs.