Freight for Thought: AMZN + two more things to think about concerning Montgomery

研报英文原文证据摘录

Freight for Thought: AMZN + two more things to think about concerning Montgomery

Deutsche Bank

Research

North America Industry Date

Transportation Freight for Thought 15 May 2026

AMZN + two more things to think about

Richa Harnain, CFA concerning Montgomery

Research Analyst

+1-212-250-6285

Yesterday afternoon, we discussed implications from the Supreme Court’s

surprisingly unanimous decision to vote against CHRW in the Montgomery case, Megan Makini

determining that brokers could be held liable in accidents involving motor carriers Research Associate

+1-212-2501458 they hire.

In addition to the positive reads we cited in our initial note for our coverage (most

notably for asset-based operators like KNX, JBHT), we highlight a few other

potential constructive items to think about:

1) Do the brokers end up requiring more insurance be assumed by their carrier-

partners?

This could be a primary way they seek to enhance their own protection. Therefore,

while our initial analysis focused on the financial pressures the new law places on

smaller brokers, we must also consider the likely strain on the large pool of small

carriers. Per the latest industry leading ATRI annual operational cost report, the

industry’s average insurance premium costs per mile were ~10c in 2024 and our

sense is insurance cost inflation only increased over the course of the past year +.

Notwithstanding this point, 10c alone represents 5% of the current average spot

rates ex-fuel. An increase in these costs could significantly erode a truckload

operator's bottom line (e.g., a 10% rise in costs could impact margins by ~100

basis points). This is particularly concerning given the industry's already razor-

thin profitability, with ATRI noting a negative 2.3% industry operating margin for