Shares in trucking and logistics companies tumbled as investors fear AI will cut demand. Algorhythm Holdings, once an in-car karaoke maker, launched an AI tool named SemiCab. It claims to boost freight volumes by 300% to 400% without hiring more staff. This caused Algorhythm’s stock to jump nearly 30% on Thursday. However, this sparked panic in the broader logistics industry. The US Russell 3000 Trucking Index dropped 6.6%. Major stocks like CH Robinson Worldwide fell 15%, Landstar System down 16%, RXO fell 20.5%, and JB Hunt and XPO each lost about 5%. This is the worst drop since last year’s Trump tariff war. Joseph Shaposhnik of Rainwater Equity called the fear "category 5" paranoia, saying, "It’s not something that we’ve seen in quite a long period of time." Gary Atkinson, CEO of Algorhythm, was surprised by the reaction. He said, "Never in my wildest dreams would I ever have imagined a day like today. It’s almost like David versus Goliath." Other stocks also dropped. Drug distributors McKesson and Cardinal Health lost about 4%. In Europe, DHL fell 4.9%, DSV A/S slid 11%, and Kuehne+Nagel dropped 13%. Analyst Daniel Moore from Baird noted that new open-source automation agents like Molt Bot could automate routine tasks, helping smaller operators. Algorhythm shifted from karaoke to AI freight after selling its Singing Machine business for $4.5 million in 2025. In contrast, London’s RELX shares rose 5%, recovering after falls linked to AI chatbot news. Investor strategist Neil Wilson said, "We can see a broad AI fear trade taking place... It’s touching all corners except those that are immune to disruptions – materials, energy, staples." The sell-off shows how AI developments now rattle many industries, especially logistics and transport.