Radiant's Freight Market Update

This week: Tariffs on aluminum and steel soar, with both metals facing a 25% tax; U.S. box imports hit a record high in January; Belgium's Airspace closure causes major cargo disruptions.

Current Critical Industry Trends

Tariffs on aluminum and steel soar, with both metals facing a 25% tax. The President has also announced plans to align U.S. tariffs with those of other countries. Experts are concerned about inflation risks and the long-term economic impact of these changes.

Ocean

U.S. box imports hit a record high in January, with deliveries from China rising for the second month in a row. The rise in imports may have been influenced by the potential impact of tariffs and the timing of the Lunar New Year.

Ports

Canada has announced a C$22.5 million investment in sustainable infrastructure at the Halifax Port Authority. The funding will support initiatives to reduce emissions, including the establishment of a hydrogen production facility, and facilitate the shift of freight from road to rail.

International

De minimis exemption returns, for now… The pause will allow time to establish a better method for tariff collection. The exemption is expected to end once adequate systems are in place.

The global container market has experienced overall growth in the last five years. However, this growth has been uneven, leading to regional imbalances. Part of the rise in trade imbalances is due to faster export growth in Asia, outpacing all other regions except Sub-Saharan Africa.

Trucking

ATRI explores hiring truck drivers with criminal histories. As the trucking industry faces ongoing workforce shortages, ATRI is gathering data on hiring practices for drivers with prior convictions. The study aims to identify strategies for workforce reintegration while maintaining safety and compliance.

Rail

Rail safety reform bills aim to expand hazardous train regulations. New legislation seeks to broaden the definition of high-hazard trains and require railroads to reimburse first responders. If passed, the bill would enhance reporting requirements and improve emergency response funding.

Is freight rail ready to go electric? A new study breaks it down. The FRA’s latest study assesses the costs, risks, and benefits of electrifying freight rail corridors. While promising, the transition requires extensive research, high capital investment and long-term commitment before widespread adoption can be realized.

Air

Belgium's Airspace closure causes major cargo disruptions. A nationwide strike has shut down Belgium’s airspace, affecting over 4,700 tonnes of cargo flow at key hubs like Brussels and Liege. Nearby airports such as Maastricht and Paris brace for increased rerouted traffic.

Technology

Canadian High-Tech logistics market set to nearly double by 2030. Valued at $50.2 billion in 2024, the global high-tech logistics sector is projected to reach $96.1 billion by 2030, growing at 11.5% annually. AI, IoT, and blockchain are driving efficiency, while Canada remains a key player in this expanding industry.

Other

Counterfeit shipping labels cost USPS millions annually. Fraudulent shipping labels are enabling some vendors to ship parcels at a fraction of the legitimate cost, creating losses in the millions for postal services. With logistics expenses making up 60-70% of total costs, the incentive to cut corners remains high.

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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.