Invesaro

Invesaro publishes investment theses and settles them against the market in public: with a date, a basket of companies and a verdict.

Investment thesis

Washington just shut 110 trucking schools: the freight recovery will start with missing drivers, not with demand

LivePublished September 1, 2026180-day horizonregulation
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In short

  1. What is happening
    The Trump administration shuts down 110 trucking schools, citing California as a problem state.
  2. Why it matters
    Washington is throttling the inflow of new CDL holders, so truckload capacity shrinks without any demand recovery, and asset based carriers keep the rate.
  3. What must hold
    Assumptions are statements that must stay true for the thesis to make sense.
    Assumptions: 5. See the assumptions
  4. When is the verdict
    The horizon is the time we give a thesis. That many days after publication we settle it: we compare the basket of companies with the market benchmark and give a verdict.
    February 28, 2027, 180 days after publication
  5. Our score at publication
    A score from 0 to 100 given on the day of publication, before the market has verified anything. On the results page we check in public whether higher-scored theses do better.
Basket return
-4.3%
equal weight, since publication
The market over the same window
-1.4%
benchmark for this basket
Edge over the market
-2.9%
in percentage points

Companies in the basket

The argument

The closure of 110 trucking schools reads like a federalism fight with California. Mechanically it is something else entirely: it is a cut to the only legal pipeline through which new truck drivers enter the American economy. Since February 2022, the Entry Level Driver Training rule has made it impossible to obtain a first commercial driver's license without completing behind-the-wheel and theory training at a provider listed on the FMCSA Training Provider Registry. A school that is removed from that registry cannot certify anyone. Its students do not get licensed somewhere else next week; they queue, or they give up.

This lands on top of two other licensing actions that were already draining the pool. The English Language Proficiency standard was restored as an out-of-service criterion, meaning a driver who fails a roadside assessment is not fined, he is parked. And the restrictions on non-domiciled CDLs, together with the audit of licenses issued in California, put a large cohort of already-working drivers at risk of losing the document that lets them run. Three separate instruments, one direction of travel: fewer bodies in seats. Unlike a demand recovery, which the market has been promised every year since 2023 and has never received, this is not a forecast. It is an administrative action that has already happened.

What this thesis rests on

Each one is a statement that has to be true. We go back to every live thesis on a schedule and check these against public sources, so each leg carries either what we found or the date we look next.

Archive: reviews of this thesis are paused. Last review September 15, 2026.

  1. FMCSA keeps the English Language Proficiency out-of-service criterion and the non-domiciled CDL restrictions in force through 1 March 2027, with no nationwide injunction suspending enforcement.

    regulatory · Supported

    A source confirms this · September 15, 2026

    Land Line, 14 Sep 2026: the non-domiciled CDL rule effective 16 March remains in force, with the D.C. Circuit hearing California DMV v. USDOT on 11 Sep and Lujan v. FMCSA on 15 Sep; no stay or injunction has been issued in either case. The article addresses only the non-domiciled restrictions, not the ELP out-of-service criterion.

    See the source
  2. Knight-Swift reports year over year growth in Truckload revenue per loaded mile excluding fuel surcharge in at least two quarterly reports published before 1 March 2027.

    financial · Open

    Checked September 15, 2026, nothing published either way

  3. Knight-Swift's average operational truck count in its Truckload segment stays at or below the prior year level in each quarterly report published before 1 March 2027.

    operational · Open

    Checked September 15, 2026, nothing published either way

  4. Heartland Express reports a consolidated operating ratio below 97% in at least one quarter reported before 1 March 2027.

    financial · Open

    Checked September 15, 2026, nothing published either way

  5. Werner and Schneider each keep their company driver training schools listed on the FMCSA Training Provider Registry through 1 March 2027, with no removal disclosed.

    competitive · Open

    Checked September 15, 2026, nothing published either way

Show the causal chain step by step
  1. 110 trucking schools struck off the FMCSA registry
  2. English proficiency and non-domiciled CDL crackdown
  3. Inflow of new CDL holders falls, working drivers parked
  4. Small fleets cannot fill seats, tractors parked, authorities revoked
  5. Carriers with in-house academies keep hiring
  6. Spot rates tighten, contract rates reprice at the 2027 bid season
  7. Asset based truckload carriers: rate per mile and operating leverage

This thesis, over time

What has happened since publication. Every entry is computed as of its own date, from price history.

October 16, 2026

Day 45 of 180: basket -4.3%

The first quarter of the horizon is behind this thesis. The equal-weight basket stands at -4.3% since publication day. The benchmark (S&P 500) returned -1.4% over the same window, so the basket trails its market by 2.9 percentage points. The strongest contributor is SNDR (-3.1%), the weakest is WERN (-7.2%). 135 days remain until the verdict.

September 15, 2026

Review: 1 of 5 assumptions confirmed

We went back to this thesis on day 14 of 180 and checked each of its 5 assumptions against public sources. Confirmed by the sources: 1. No news either way: 4. The equal-weight basket stands at -1.1% since publication day. The benchmark (.INX) returned -0.9% over the same window, so the basket trails its market by 0.3 percentage points. 166 days remain until the verdict.

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This is analysis, not investment advice and not a recommendation to buy or sell anything. We publish it and track it in public, mistakes included. Any decision is yours and yours alone.