Radiant's Freight Market Update

This week: Canadian labor dispute results in major strike action; International Longshoremen’s Association preps for possible strike action; first cargo sail ship embarks on maiden voyage; NYC looks to reduce daytime truck deliveries.

Current Critical Industry Trends

Labor impasse with Teamsters Canada Rail Conference and carriers Canadian National Railway and Canadian Pacific Kansas City has led to a work stoppage, which has brought Canada’s major freight railroads to a full stop. A lockout began at 12.01 Eastern on Thursday the 22nd, and has the potential to cause billions of dollars worth of damage to North American supply chains.

Ocean

World’s first sail cargo ship embarks on maiden voyage to New York. Sailing under the Greek name for wind, Anemos, the vessel offers cargo aboard to be certified as low-carbon transport. It reduces carbon emissions by up to 99% on its routes between South America and New York.

Weather causes container loss in South Africa. Unfavorable conditions caused a container ship to lose up to 99 containers off the coast of South Africa. This is the second incident in recent times in the same area of the Indian Ocean.

Increased maritime attacks continue to threaten trade. A study by the Atlantic Council offers insights into the harm and expense these attacks pose to the shipping industry. In an effort to address these concerns the study offers a comprehensive to-do list, including recommendations for engagement and enforcement.

Ports

California’s ports experienced near record breaking volume. The ports of Long Beach and Los Angeles reported their third strongest month ever. Looming tariffs, pre-holiday orders, and potential strikes are influencing momentum at the ports.

International Longshoremen’s Association Preps for Possible Strike October 1. Time is running out: The International Longshoremen's Association (ILA) has warned that its 85,000 members will strike on 1 October if a new contract is not agreed ahead of that date. ILA leader, Harold Daggett says, “they are ready to ‘hit the streets’ if our demands are not met.” Meanwhile, the ILWU has pledged solidarity with ILA...which could have further significant ramifications for global logistics. A Xenata briefing has already warned of coming challenges for Transpacific shippers: “With port-to-port sailing times of 50 days between Shanghai and New York, plus land operations, there are already containers on the ocean which will arrive on the US East Coast after 30 September – deal or no deal”.

Trucking

The Canadian trucking industry won’t be able to meet demand if a railroad work stoppage occurs. The industry is already operating near capacity, and road transportation has limited ability to absorb even a portion of the nearly 900,000 metric tons of goods moved daily on Canada’s railways.

A new incentive program in NYC aims to reduce daytime truck deliveries. Businesses are offered financial reimbursements if they commit to receiving truck deliveries in the off hours. The program focuses on reducing congestion, improving air quality, and decreasing the number of trucks on the road during peak traffic times.

Air

Lufthansa Cargo adds another 777F to its fleet. The carrier has added the 777F freighter to routes including Monterrey (MTY), Shenzhen Boa’an International Airport (SZX), and Zhengzhou (CGO). This addition provides customers with an increase in capacity for their global business.

Saudi Arabia has started talks to establish a new cargo airline as part of its strategy to enhance its position in global logistics, including airfreight. Both Boeing and Airbus have participated in exploratory discussions for the new airline. News reports indicate that these talks are currently in the early stages of development.

International

Japan issues its first-ever megaquake alert. Global supply chains dependent on Japan’s semiconductor industry could face significant disruptions, potentially impacting technology industries around the world.

Businesses struggle as the US-China tariff war continues. Importers face difficulties as tariffs on Chinese-made goods keep rising. Buyers are competing for cargo space while seeking alternative supply chains outside of China.

Technology

Tech improvements may reduce the challenges of handling dangerous goods. New and improved systems can address the complexities of dangerous goods shipments. Users might see enhancements to digital booking processes, regulatory checks, and data quality.

Other

Nippon Yusen Kaisha (NYK) is set to receive its first dual-fuel bulk carrier next year. This will be NYK's first methanol-powered bulk carrier. The primary fuels are expected to come from renewable sources and recovered carbon dioxide.

Last mile delivery service expected to double by 2031. The demand for delivery services is growing as consumers increasingly expect fast and free shipping. As online shopping needs continue to evolve, last-mile delivery will continue to expand to meet consumer expectations.

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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.