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Welcome, I'd like to address an important trend that could meaningfully affect your bottom line in the months ahead. The key concept centers on being aware of shifting spot rates vs. contract rates. Structural changes in the market have created a narrowing gap between those rates. According to DAT Freight & Analytics' Trendlines data, spot market rates ended 2025 around $1.65 per mile, while contract rates held near $2.01 per mile. That change is signaling a window for fleets and shippers alike to reassess their positioning before conditions shift further. What's driving this? Capacity is quietly tightening. DAT's November 2025 Trendlines report showed spot load posts up over 20% year-over-year, while available truck posts dropped by nearly 22%. It's a classic supply-demand imbalance that tends to push rates upward. New contract rates are now coming in higher than the ones they're replacing, indicating that the prolonged buyer's market for freight may be ending. For fleets, this convergence matters: as spot rates climb toward contract levels, the leverage shippers have enjoyed for the past two-plus years begins to erode. Those without the right insurance structure, providing coverage that scales with changing operational costs and lane demands, may find themselves exposed at exactly the wrong moment. We're here to make sure that's not you. Please contact me if you'd like advice on how to handle this challenge as it may impact the growth and stability of your operations. On a lighter note, we're celebrating several anniversaries on the S.W.A.N. team. Congratulations to Director of Transportation Marc Crawford and Cross-Border Transportation Specialist Kevin Mealey on five-years with us! In addition, Client Service Manager Pilar Figueroa and Account Manager Priscilla Diaz are marking their first year with the S.W.A.N. These are just a few of the specialists who dedicate every day to the success of our valued fleet customers. Marc has been named Co-Chair of NEMTAC's Insurance Risk Management Association Committee. He's assisting the organization in developing an array of resources exclusively for NEMTAC members. Topics include an Insurance 101 guide, advice on how to grow as a fleet, a broker interview checklist, insurance expectations for new NEMT providers, and challenges for new ventures. We are honored to be offering our expertise to the industry in this way. Until next month, we appreciate your being part of our S.W.A.N. community. We welcome your input on how we can support you as you grow your business. As always, we're here to help you Sleep Well At Night. Simply reply to this email or contact us online by clicking here. Thank you, Chris Mahlberg, TRS Founder & Owner S.W.A.N. Insurance Call: 858-381-3108 | Visit: swan-ins.com | Connect: LinkedIn

Website Addition Delivers Details on DRIVE Program Insurance companies are more selective than ever. The difference between being well prepared at least 90 days before policy renewal can be thousands of dollars in insurance costs. Over the last couple months, we've been sharing news about our new DRIVE program. Our goal is to help your fleet grow stronger, safer and more insurable through a systematic, proactive and hands-on approach to insurance program management. What does the acronym stand for? • Direct Communication • Regulatory Compliance • Insurance Strategy • Value-Adds That Move the Needle • Education We've now launched a comprehensive new section on our website with complete details on this important program. Also make sure to take a look at the page covering the significant financial impact DRIVE can have for your fleet. DRIVE is all about supporting you in becoming a best-in-class business over time. We invite you to learn more and contact us with any questions so we can help you grow your business and sleep well at night.

Otay Chamber Shares Cross-Border Issues The S.W.A.N. Cross-Border team participated in a special Breakfast Briefing event with the Otay Mesa Chamber of Commerce. The topic was how trucking companies can reduce their insurance premiums through insights from carrier representatives themselves. Clear takeaways that are major factors for insurance carrier underwriting included safety scores, dashcam footage and telematics data as no longer just nice-to-haves. Knowing how to present your fleet's story is a competitive advantage, and that's exactly where S.W.A.N. works hardest for our clients. Otay Mesa is a strategic region in South County San Diego along the international border with Mexico. The Chamber is the premier San Diego business organization providing its members with business resources and access to local and global markets. It's just one example of the key relationships we maintain with organizations impacting opportunities for fleets. Please don't hesitate to let us know how we can apply the latest insights to your fleet.

NEMT Outreach Supports Preferred Market Access We are continuing our NEMT national outreach efforts, with a focus currently on Arizona, Idaho and Texas. Our goal is to help fleets overcome coverage challenges and get qualified for direct access to preferred NEMT markets. A key part of the effort is optimizing their insurance programs with better coverage at reduced cost. For example, we're helping NEMT fleets in Texas solve challenges such as rising premiums, tightening MCO contract requirements, compliance pressures, and carriers pulling coverage due to simply not understanding fleet operations. At the heart of our solution to these issues is working with a select network of preferred NEMT carrier markets and helping operators qualify for coverage programs built specifically for this industry. The result is compliance-ready coverage, dedicated claims support, fleet safety resources, and a team that actually picks up the phone. If you or someone you know could benefit from a conversation with our team of specialist, we invite you to contact us today.

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