Radiant's Freight Market Update

This week: New surcharges for the Panama Canal are set to go into effect on January 1; A state of emergency has been declared in Russia after a tanker split in two; Rising air cargo demand could drive higher transport costs in 2025.

Current Critical Industry Trends

A state of emergency has been declared in Russia after a tanker split in two. Oil from the wreckage is washing ashore in two districts, where cleanup efforts are ongoing. Volunteers and emergency agencies have been deployed to assist with the response.

Ocean

New surcharges for the Panama Canal are set to go into effect on January 1. Two major carriers recently announced these changes. One measure introduces a hefty surcharge, equivalent to 250% of the booking fee, for vessels that do not arrive within 7 days of the booked date.

Ports

Cosco wraps up 60-year deal for the exclusive use of the new deep-water port in Peru. The finalization of the deal brings numerous benefits, including lower logistics costs for China’s exports to the region.

International

Five weeks into the Canada Post strike, picketers have been ordered back to work. Delivery delays are expected to persist for weeks, extending into January 2025 and beyond. A commission has been appointed to facilitate an agreement between the Crown corporation and the Canadian Union of Postal Workers.

China has further extended its lead as the world’s largest shipowning nation. In August, China surpassed Greece in merchant fleet gross tonnage. The China-owned merchant fleet now makes up more than one-seventh of the world’s total.

Trucking

Truckload spot rates hit $2.53 per mile, nearing 2-year high. Spot rates have surged 15% since October, reaching their highest point since January 2023. With fewer competitors and rising rejection rates, carriers have greater power to choose profitable loads.

Rail

U.S. Rail traffic shows mixed trends as year-end approaches. Weekly carloads dipped 1.8% to 224,899, while intermodal volumes surged 9.7% to 295,995 units. Year-to-date, intermodal traffic has grown 9.1%, despite a 3.1% decline in carloads.

Air

Rising air cargo demand could drive higher transport costs in 2025. Airfreight demand is forecasted to grow by 4-6% next year, fueled by a 14% annual rise in e-commerce and a rebound in semiconductor volumes. Tight capacity will keep rates elevated.

Technology

AI boosts supply chain efficiency for Bel Group’s iconic cheeses. The Babybel producer integrates Kinaxis Maestro, enabling advanced disruption planning, real-time insights and sustainable transportation solutions.

Other

Cargo theft in Italy escalates by 400% since 2021. Milan and major highways face relentless thefts of high-value goods, with criminals employing tactics like roadblocks and insider collusion.

Short and sweet! The Christmas tree shipping season is bustling this year, with over 20 million trees expected to move across the U.S. Spot rates reflect the seasonal demand, reaching as high as $6,667 in early December.

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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.