Radiant's Freight Market Update

This week: Syria is now a no-go zone for international merchant ships; U.S. regulators halt new shipping alliance plans; Global trade is expected to reach $33 trillion in 2024.

Current Critical Industry Trends

Syria is now a no-go zone for international merchant ships. With Bashar al-Assad’s family ousted from power, the shipping industry is taking precautionary measures by avoiding Syrian waters altogether.

Ocean

U.S. regulators halt new shipping alliance plans. The FMC flagged the Premier Alliance Agreement for insufficient competitive impact details. This postponed its launch and the start of Transpacific PS5 and PN4 services until further notice.

Ports

Retailers are urging U.S. coast terminals and unions to hold talks to avoid a potential strike. The temporary contract with the International Longshoremen’s Association expires on January 15, 2025. Over 250 associations have written to both groups expressing concerns about a second strike.

International

Global trade is expected to reach $33 trillion in 2024. Despite this year's growth, uncertainty looms over 2025, with risks such as port strikes and other geopolitical challenges posing a threat to growth.

Canada Post strike approaches four weeks with no resolution in sight. More than 55,000 workers remain on strike, pushing for a 19% wage hike over four years. Canada Post estimates union demands would add $2.9 billion to costs, while federal mediation remains stalled since Nov. 28.

Trucking

Freight volumes rebound, but still down year over year. Tender volumes bounced back after Thanksgiving but remain below last year’s levels. With just two weeks left in the year, a significant volume increase is unlikely.

Reefer truck shortages impact western U.S. agricultural regions. Idaho and Washington are facing reefer truck shortages, hitting potato and dry onion producers. This marks the first 2024 shortage for these states, highlighting shifts in a previously oversupplied market.

Rail

Strong consumer demand and port activity spurs record intermodal results in November. The Freight Rail Index (FRI) rose 2.8% in November, reaching the highest point since May 2021.

Air

Air cargo demand increased for the 13th consecutive month in November 2024. Average spot rates reached a yearly high of $2.90 per kg.

High costs, limited capacity shift heavy cargo to ocean freight. Surging air freight rates and reduced aircraft availability are reshaping cargo logistics. With AN-124 charters costing over $2 million, ocean transport is becoming the preferred choice for many shippers.

Technology

Southwest Research Institute launches project to expand heavy-duty hydrogen refueling infrastructure. With fewer than 60 hydrogen refueling stations in the U.S., SwRI’s H2HD Refuel project aims to address technical challenges, strengthen HRS technology, and accelerate adoption of hydrogen-powered heavy-duty vehicles.

Other

Uline announced the opening of a 1.44 million sq. ft. warehouse in Wisconsin. The facility spans over 33 acres and is ranked among the top 20 largest warehouses in the United States.

Hwy. 413 design nears finish line as Ontario prepares for 2025 construction. With 90% of design work completed, the province is finalizing land use and structural plans for the vital east-west corridor connecting key regions.

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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.