A surge in non-domiciled commercial driving licences, English-language loopholes and cheap short-term foreign labour is upending US freight economics, reports American Shipper.

Former Arkansas carrier owner Cliff Bates said he uncovered widespread fraudulent CDLs, manipulated electronic logs and an influx of transient drivers from Eastern Europe, South Asia and Central Asia who accept cut-rate freight. He said the trend followed federal policies that allowed non-English-proficient drivers to stay on the road and permitted foreigners to obtain non-domiciled CDLs from 2019.

Mr Bates said state-level data showed large spikes in CDL issuances between 2021 and 2024, coinciding with falling rates and rising capacity. A Department of Transportation audit has since identified at least 200,000 non-domiciled licences nationwide. Although new issuances have been halted, existing licences remain valid, a policy Mr Bates says risks road safety.

Grace Maher, chief operating officer of OTR Solutions, said national debate wrongly focuses on border-state drivers rather than short-term foreign workers who enter for a few months, undercut rates and leave. She said American drivers of all backgrounds cannot compete when brokers prioritise the lowest offer.

Both warned that fraud, double-brokering and offshore dispatching are worsening the downturn. Mr Bates cited ICE roadside operations in several states that flagged between 20 and 30 per cent of trucks for fraudulent or non-domiciled CDLs or visa issues. He said his own 140-truck fleet collapsed after losing millions as long-haul demand shrank and rates remained depressed.

Mr Bates and Ms Maher said the crisis threatens wider economic stability, arguing that safe roads and a fair market are at risk unless enforcement tightens and fraudulent operations are removed.