Diesel Tax Relief, Split Sleeper Berth Pilot, and Freight Industry Merger

On October 5, President Donald Trump signed Executive Order 14435, “Emergency Tax Relief on Diesel Fuel.” The order directs the Treasury Department to determine the legally applicable eligibility requirements, defer certain diesel excise tax payments for qualifying taxpayers, and arrange relief from specified penalties for using dyed diesel on highways. The period addressed by the order runs from October 5 through December 31, 2026.

Before considering the use of dyed diesel, drivers and fleets must consult Treasury implementation guidance to confirm their eligibility, which tax payments may be deferred, and when deferred taxes must be paid. The order also calls for exploring ways to forgive the deferred taxes, so a payment deferral should not be treated as permanent tax exemption. It further calls for corresponding state measures; interstate operators must check the rules in each state along their routes.

On October 7, the Federal Motor Carrier Safety Administration (FMCSA) published a notice seeking comments on an information collection request for its flexible split sleeper berth pilot program. The study plans to include approximately 256 commercial motor vehicle drivers, each participating for 16 weeks, to compare fatigue and driving performance under different rest arrangements.

The pilot would allow approved participants to split their required 10 hours of rest into periods such as 5 hours plus 5 hours or 6 hours plus 4 hours. This notice is part of the information collection approval process. It does not make the pilot’s rest arrangements available to fleets generally or announce a common start date. Comments are due December 7, 2026, under Docket FMCSA-2026-2080.

Weekly data released by the U.S. Energy Information Administration (EIA) on October 6 show that the national average retail price of on-highway diesel, including taxes, was $6.199 per gallon on October 5, down 18.3 cents from $6.382 on September 28.

California’s average fell from $8.181 to $8.082 per gallon over the same period, a decline of 9.9 cents, and remained above the national average. These figures represent national and regional average prices; individual station prices and fleet contract prices may differ. Fleets operating in California or across state lines should calculate costs using their actual routes and purchase prices.

On October 5, C.H. Robinson and RXO announced that they had signed a definitive merger agreement for a cash-and-stock acquisition with an implied value of approximately $5.8 billion. Both boards approved the agreement. The transaction remains subject to regulatory approval, RXO shareholder approval, and other closing conditions.

The companies expect the transaction to close in the first half of 2027. Their announcement identifies freight brokerage, managed transportation, expedited transportation, and last-mile delivery among the businesses to be combined. Carriers working with either company should monitor subsequent business notices. The announcement alone does not establish how specific freight opportunities, rates, or settlement processes will change.

The Port of Los Angeles released its September operating figures on October 9: it handled 1,042,652 twenty-foot equivalent units (TEUs), a record monthly volume. Loaded imports totaled 545,696 TEUs, up 19% year over year, while loaded exports reached 125,751 TEUs, up 10%.

These September statistics were released during the reporting week. Drayage fleets serving the port may use them as a reference when assessing demand. Total port throughput does not directly translate into an individual fleet’s orders, rates, or terminal waiting times. Decisions to add vehicles or shifts should still be based on actual customer demand.