Radiant's Freight Market Update

This week: SHIPS Act sets sail to revitalize U.S. shipbuilding industry; New Pharmaceutical Act focuses on national security and supply chain reform; Shippers brace for port strike, Trans-Pacific rates climb.

Current Critical Industry Trends

SHIPS Act sets sail to revitalize U.S. shipbuilding industry. The bipartisan SHIPS Act proposes adding 250 U.S.-flagged vessels within a decade and creating a Strategic Commercial Fleet Program. With fewer than 200 oceangoing U.S. vessels compared to China's 5,500, the legislation aims to boost shipbuilding, workforce development, and national security.

New Pharmaceutical Bill focuses on national security and supply chain reform. With 100% of upstream activities for generic drugs happening overseas, the proposed legislation allocates $1 billion annually to ramp up U.S. production. This initiative targets drug shortages, strengthens FDA oversight, and mandates government agencies to purchase locally made medications.

Ocean

Russian cargo ship sinks in Mediterranean following explosion. Ursa Major sank south of Spain after an engine room blast, leaving two crew members missing. The ship, sanctioned by the U.S., was reportedly transporting cranes to Vladivostok.

Carriers thrive while Suez Canal revenues sink in Red Sea crisis. Detours around Africa boost shipping surcharges, delivering robust profits to carriers. Suez Canal traffic falls by 60%, while Houthis reportedly earn $2 billion from the turmoil.

Ports

Shippers brace for port strike, Trans-Pacific rates climb. Trans-Pacific rates rise 15%, reflecting shippers pulling forward cargo before Lunar New Year and January’s contract deadline. Disruption surcharges loom as carriers prepare for a prolonged dispute.

International

CPKC expands cross-border trade with new U.S.-Mexico rail bridge. The $100 million Patrick J. Ottensmeyer International Railway Bridge doubles freight capacity at North America’s busiest trade port, enhancing efficiency and connectivity across the U.S., Mexico, and Canada.

Trucking

Mexican freight takes the lead in U.S. cross-border trucking. Mexico’s truck entries to the U.S. increased by 62.6% since 2000, while Canadian entries fell 21.6%. Laredo continues to dominate as North America’s busiest trucking gateway.

The trucking industry spent over $108 billion battling congestion on U.S. highways. Additionally, fuel waste adds another $32 billion to the costs. Texas leads the nation, with trucking companies spending over $9 billion on congestion and related expenses.

Rail

A new U.S. safety regulation regarding freight car standards is set to take effect on January 21, 2025. The regulation imposes restrictions on cars or parts sourced from China and other 'countries of concern.'

The railworkers' union, Unifor, and Canadian National Railway have avoided a strike with a new deal. The agreement covers a range of positions, including those in administration, mechanics, and support staff.

Air

Glasgow Prestwick Airport (PIK) welcomed its first e-commerce cargo flight. PIK is focused on expanding its operations in Asia and further developing e-commerce flights to and from the UK.

Technology

China has launched its first large hydrogen fuel cell river containership, which is expected to have a range of approximately 235 miles and a capacity of 64 TEU, equivalent to approximately 1,450 tons. This launch is the latest in a series of emission-reducing measures taken by China.

Other

A containership rolled onto its side at a port in Istanbul. Video footage shows the vessel listing before eventually rolling over. Instability, believed to be caused by improper loading, is thought to be the reason.

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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.