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What is the story about?
Shares of US trucking and logistics companies fell sharply on Thursday, February 12, as investor concerns over artificial intelligence-driven disruption spread to the freight industry.
The sell-off followed the launch of a new AI freight tool by Algorhythm Holdings, making trucking the latest victim in the market’s AI-led rotation away from traditional, labour-intensive business models. The move adds to recent declines seen in software and real estate stocks, as investors reassess which industries could struggle to adapt to rapid advances in AI.
Among the hardest hit were C.H. Robinson Worldwide, which fell 14.5%, and RXO, down 20.5%. J.B. Hunt Transport Services slid about 5%, while XPO lost nearly 6%. Expeditors International of Washington dropped roughly 13.2%.
Read more: Dow Jones falls 1,000 points from highs, Nasdaq sinks 2% as AI fears rattle markets
According to CNBC, Baird analyst Daniel Moore said in a note that there’s an "emerging debate around open-source automation agents that could automate routine back-office tasks and level the technology playing field for smaller operators.” Moore reiterated his outperform ratings on C.H. Robinson and Expeditors, adding that automation is not a new theme for the industry.
Shares of Algorhythm, which had traded as a penny stock, surged nearly 30% on the day.
Earlier this week, the company said its SemiCab platform, now deployed with live customers, allows operators to scale freight volumes by 300% to 400% without increasing headcount. The platform also claims to cut “empty freight miles” by more than 70%, addressing inefficiencies that the company estimates cost the industry over $1 trillion annually, citing Mordor Intelligence data.
In a press release, Ajesh Kapoor, CEO of SemiCab, said, “What we’re proving with SemiCab is that when freight is managed as a coordinated network rather than isolated transactions, utilisation improves dramatically. The substantial reduction in empty miles that we are able to achieve for our customers represents a fundamental shift in how logistics economics work."
Algorhythm earlier focused on in-car karaoke technology but exited that business after selling its Singing Machine unit to Stingray for $4.5 million in 2025. The company then shifted its focus to an AI-powered freight platform.
Separately, investors are also monitoring potential regulatory impacts on the sector after US Transportation Secretary Sean P. Duffy moved to bar “unqualified foreign drivers” from obtaining commercial driving licences, a step aimed at addressing safety concerns in the trucking industry.
Duffy said the reforms are aimed at improving road safety by ensuring that "foreign drivers," who have not cleared consular and interagency screening, are barred from obtaining commercial driving licences, a process that typically applies to non-US citizens.
The sell-off followed the launch of a new AI freight tool by Algorhythm Holdings, making trucking the latest victim in the market’s AI-led rotation away from traditional, labour-intensive business models. The move adds to recent declines seen in software and real estate stocks, as investors reassess which industries could struggle to adapt to rapid advances in AI.
Among the hardest hit were C.H. Robinson Worldwide, which fell 14.5%, and RXO, down 20.5%. J.B. Hunt Transport Services slid about 5%, while XPO lost nearly 6%. Expeditors International of Washington dropped roughly 13.2%.
Read more: Dow Jones falls 1,000 points from highs, Nasdaq sinks 2% as AI fears rattle markets
According to CNBC, Baird analyst Daniel Moore said in a note that there’s an "emerging debate around open-source automation agents that could automate routine back-office tasks and level the technology playing field for smaller operators.” Moore reiterated his outperform ratings on C.H. Robinson and Expeditors, adding that automation is not a new theme for the industry.
Shares of Algorhythm, which had traded as a penny stock, surged nearly 30% on the day.
Earlier this week, the company said its SemiCab platform, now deployed with live customers, allows operators to scale freight volumes by 300% to 400% without increasing headcount. The platform also claims to cut “empty freight miles” by more than 70%, addressing inefficiencies that the company estimates cost the industry over $1 trillion annually, citing Mordor Intelligence data.
In a press release, Ajesh Kapoor, CEO of SemiCab, said, “What we’re proving with SemiCab is that when freight is managed as a coordinated network rather than isolated transactions, utilisation improves dramatically. The substantial reduction in empty miles that we are able to achieve for our customers represents a fundamental shift in how logistics economics work."
Algorhythm earlier focused on in-car karaoke technology but exited that business after selling its Singing Machine unit to Stingray for $4.5 million in 2025. The company then shifted its focus to an AI-powered freight platform.
Separately, investors are also monitoring potential regulatory impacts on the sector after US Transportation Secretary Sean P. Duffy moved to bar “unqualified foreign drivers” from obtaining commercial driving licences, a step aimed at addressing safety concerns in the trucking industry.
Duffy said the reforms are aimed at improving road safety by ensuring that "foreign drivers," who have not cleared consular and interagency screening, are barred from obtaining commercial driving licences, a process that typically applies to non-US citizens.
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