Radiant's Freight Market Update

This week: California Governor announced the state will file a lawsuit challenging President Trump’s authority to impose tariffs; The global ocean freight market is bracing for rough waters in 2025; Global rail freight takes a leap forward with unified legal framework.

Current Critical Industry Trends

The U.S.-China trade war has brought trade between the two countries to a near standstill, leaving several carriers increasingly exposed. According to research from Linerlytica, a recent chart highlights the most vulnerable operators, with Cosco, Hede, and Matson among those topping the list. For some smaller carriers, full-service shutdowns may be looming.

California Governor Gavin Newsom announced the state will file a lawsuit challenging President Trump’s authority to impose sweeping tariffs. The suit argues that Trump’s use of the International Emergency Economic Powers Act to justify tariffs on countries like Mexico, Canada, and China is unlawful. It also contends that such tariffs require congressional approval.

Ocean

The global ocean freight market is bracing for rough waters in 2025, as economic growth is expected to slow. Despite mounting challenges, global container trade expanded in 2024 and is projected to grow by 4.3% in the year ahead. Asia-Pacific export lanes are leading the way, with China driving much of the momentum.

Ports

The Port of Long Beach has emerged as the busiest port in the U.S. for the first quarter of 2025. March marked the 10th consecutive month of year-over-year growth, underscoring a sustained upward trend. The port, a key gateway for trans-Pacific trade, handles more than $300 billion in goods annually.

International

Global brands are pausing ocean shipments from China to the U.S., with the Port of Los Angeles confirming at least 12 canceled sailings for May. It appears that shippers are weighing their options and exploring mitigation strategies in response to the uncertainty.

Trucking

A survey by the Canadian Trucking Alliance (CTA) finds that U.S. tariffs are significantly affecting shipments of most commodities. The report indicates that the new tariffs are disrupting trade, as shippers struggle to keep up with the frequent changes and shifting regulations. The CTA has provided recommendations on how to address the situation.

Rail

Global rail freight takes a leap forward with unified legal framework. China, Germany, Netherlands and Togo sign new UN convention to streamline cross-border rail transport. Rail emits 5.7 times less GHG than road, offering a greener path for Eurasian logistics.

Autonomous battery-electric railcars hit the tracks in Georgia this month. Parallel Systems secures $38 million in fresh funding and begins multi-phase testing on 160 miles of rail. Commercial operations are targeted for 2026 with over 300 units already on backlog.

Air

Global air cargo volumes soar as airports hit record highs. Busiest hubs handled over 124 million metric tonnes in 2024. Top 10 cargo airports moved 32.3 million tonnes, up 9.3% from last year and 9.5% from 2019.

Technology

Freight Tech innovators battle to win brokers’ time with smarter AI. From voice ID and appointment bots to pricing engines and virtual dispatchers, AI is solving real problems. Up to 20% fewer manual tasks and 70% faster onboarding were reported.

Other

Credit fraud exposes freight operators to rising financial risk. Extended payment terms without proper due diligence have led to major losses. TT Club warns of a sharp rise in customer scams targeting airfreight in the past 12 months.

New federal bill targets surging cargo and retail theft networks. Cargo theft losses now exceed $35 billion annually. Strategic theft has risen 1,500% since 2021, with average losses topping $200,000 per incident.

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The Radiant Network's supply chain and logistics updates provide valuable insights on freight trends, customs regulations, global news, economics, tech, and more. The Radiant Network includes the brands Radiant World Trade Services, Radiant Global Logistics, Radiant Canada, Radiant Road & Rail, Adcom, Airgroup, SBA, and Distribution By Air.

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Radiant World Trade Services is a part of Radiant Logistics, Inc. (NYSE American: RLGT), a publicly traded third-party logistics company that provides technology-enabled global transportation and value-added logistics solutions to a diverse account base. They offer comprehensive services including freight forwarding, truck and rail brokerage, warehouse and distribution, customs brokerage, order fulfillment, inventory management, and technology services. Radiant has an extensive network of offices throughout North America and other key markets worldwide.