Concerns over artificial intelligence are spreading further. During Thursday's U.S. trading session, the trucking and logistics sector experienced a sudden sell-off, with the Russell 3000 Trucking Index plunging more than 9% intraday. This marked the index's largest single-day decline in ten months, since the Trump administration announced reciprocal tariffs in April 2025.

Multiple trucking and related logistics stocks fell sharply. C.H. Robinson (CHRW) dropped as much as 24% during the session, ultimately closing down 14.5%. As one of the largest third-party logistics and freight brokerage firms in the United States, its stock price movements are often viewed as a barometer for the industry.

Selling pressure quickly spread throughout the sector. Expeditors International of Washington (EXPD) and Landstar System (LSTR) each fell nearly 20% intraday, closing down 13.2% and 15.6% respectively. XPO Inc. ended the day down approximately 6%, while JB Hunt Transport Services (JBHT) closed about 5.1% lower. European logistics stocks joined their U.S. counterparts in the decline: Denmark-listed DSV A/S fell as much as 15%, finishing down 11%. Switzerland-listed Kuehne + Nagel International AG closed 13% lower.

The market pointed to a widely discussed AI white paper as the catalyst – a company claimed its AI platform could significantly reduce empty miles and improve fleet utilization. Investors quickly drew a connection: if AI penetrates freight brokerage and dispatch operations on a large scale, could traditional logistics companies' business models face a structural threat? With industry fundamentals not yet showing clear signs of recovery, this concern became the "final straw" that broke market sentiment for the sector. In the short term, the market is pricing in the "AI disruption" emotionally. In the medium to long term, while technology-driven efficiency gains are a trend, the ultimate winners are more likely to be "traditional giants that embrace AI," rather than those relying solely on a technology narrative. Until the freight cycle fully reverses, sector volatility is likely to remain elevated. Vital Knowledge analyst Adam Crisafulli wrote in a client note that AI is "destroying the stock prices of traditional industries facing disruption risks." While initial concerns started with software and services, the transportation industry is now feeling the impact.

An AI white paper ignited market sentiment. The immediate catalyst for the market volatility was a white paper released by an AI technology company named Algorhythm. Algorhythm's document stated that its SemiCab platform, in practical deployment, could reduce truck empty miles by over 70% and significantly improve fleet load efficiency. It claimed the platform could help clients scale freight volume by 300% to 400% without a corresponding increase in operational staff. Algorhythm also stated that individual operators using SemiCab could manage over 2,000 freight orders annually, compared to a traditional industry benchmark of about 500 orders per freight broker per year, implying a fourfold increase in employee productivity. Algorhythm's CEO, Gary Atkinson, said: "Logistics has long been constrained by human resources. Every increase in freight volume required more planners, dispatchers, and manual intervention. Our SemiCab platform breaks this dependency by embedding intelligence directly into the freight operating system." Algorhythm's claims of substantially increasing freight volume while reducing personnel input quickly gained traction within the investment community. Empty miles have always been a key variable for profitability in the freight industry. Traditional freight brokers rely on vast carrier networks, manual dispatch, and algorithmic tools to match freight with capacity, profiting from "information asymmetry" and network efficiency. If an AI platform can achieve dynamic route optimization, real-time freight matching, and automated pricing on a larger scale, it could theoretically weaken traditional brokers' pricing power in the matching process. Some analysis pointed out that the market developed a structural concern over "whether AI will replace freight brokers," and this sentiment amplified rapidly during the trading session. Goldman Sachs trader Christian DeGrasse noted that the same pattern keeps repeating – from commercial real estate brokers, office REITs, wealth management, information services, some exchanges, insurance brokers, payments, to fintech, almost every sector previously labeled with "AI risk" has underperformed, regardless of whether the concern was deemed "rational." DeGrasse said alternative investments were initially stable but are now becoming volatile, and bank stocks are following suit. Bank stocks have been largely insulated from the AI scare – particularly regional banks, which represent an attractive haven within the financial sector. There isn't much "new" news in the financial sector currently, but vigilance is needed as this AI panic continues to broaden. The latest industry facing AI competitive pressure is logistics/transportation within the industrial sector. He also noted that companies previously seen as AI winners are being re-evaluated for their potential risks. Valuation and multiples are also crucial.

The industry was already fragile, amplifying the volatility. More importantly, the fundamental backdrop for the trucking industry is not currently in a strong cycle. Since the post-pandemic capacity expansion, the U.S. trucking industry has faced persistent pressure from falling rates and weak demand. Although there are signs of recovery in certain lanes and segments, overall freight volumes and prices have not yet established a clear upward trend. Against this backdrop of unsteady profit recovery, any variable potentially compressing profit margins is being magnified. It is worth noting that leaders like C.H. Robinson had previously gained market approval for "internal AI cost reduction and efficiency improvements." Management had frequently mentioned boosting operational efficiency through automation and algorithm optimization. Some investors had pushed the stock higher based on this logic. When a new AI platform is portrayed as a "disruptor," investor rationale quickly shifts from "efficiency dividend" to "competitive threat," leading to a sharp reassessment of valuation expectations.

Is this a trend inflection point or an overreaction? From an industrial logic perspective, AI indeed holds potential for optimizing freight dispatch. Route planning, dynamic pricing, and empty mileage optimization are essentially algorithmic problems; efficiency gains from technological progress are an almost inevitable trend. However, for practical implementation, beyond technology, the industry faces several challenges: Network Effect Barriers: Leading freight brokers possess networks of tens of thousands of carriers and customers. Relationship management and credit systems are not easily replaceable in the short term. Contract and Compliance Complexity: Large clients often sign long-term transportation agreements involving insurance, liability allocation, and compliance clauses, which go beyond simple price matching. Execution and Service Capability: Handling transportation exceptions, sudden weather events, and temporary capacity changes requires support from mature operational systems. Therefore, "complete replacement" in the short term is unrealistic, but the pace of technological penetration might be faster than the market previously anticipated. From a capital markets perspective, the sharp decline appears to stem from a combination of three factors: sudden information catalyzing sentiment, profit-taking against a backdrop of high valuations, and the fragility of not-yet-fully-recovered fundamentals. In an environment where quantitative and ETF funds hold significant market share, a sharp drop in leading stocks can trigger programmatic trading and passive fund rebalancing, further amplifying sector volatility.