Skip to content

Radiant's Freight Market Update

Jan 4, 2024

Stay up-to-date on the latest global supply chain and logistics news with Radiant's weekly updates.

Navegate® GTM offers a centralized platform to access all your vital freight information. Log in now.

This field is required.

Navigate® Lite delivers easy access to essential tracking information for your shipments. Log in today.

This field is required.
Required when not searching by HAWB.

Maersk reverses Red Sea decision following attack, Biden Administration extends China tariff exclusions, & vessels visiting EU ports required to offset CO2 emissions with EU Allowances.


Maersk reverses Red Sea decision following attack. Maersk has reversed its decision to continue utilizing the Red Sea, and has diverted ships away from the region following attacks on one of its containerships. The maritime industry remains divided on vessel safety measures. "An investigation into the incident is ongoing and we will continue to pause all cargo movement through the area while we further assess the constantly evolving situation," Maersk said in a statement. Hapag-Lloyd is also diverting vessels until at least Jan. 9, pending a decision on continued rerouting.

Advice for shippers on mitigating disruption amidst Suez Canal uncertainty. Shippers are grappling with disruptions as the Suez Canal faces challenges, prompting major carriers to reroute or halt transit due to recent attacks in the Red Sea. An international effort is underway to secure safe passage, leaving logistics managers to evaluate contingency plans. Supply Chain Dive offers insights to guide shippers on rerouting decisions amidst the current situation here.

Panama Canal issues could take years and billions to fix. The Panama Canal, under normal circumstances handling 3% of global maritime trade volumes and 46% of Northeast Asia-to-US East Coast container traffic, is facing challenges due to climate-related issues. To address water shortages during the dry season, the canal releases water from Lake Alajuela. However, a long-term solution involves damming the Indio River and constructing a tunnel to supply fresh water, costing an estimated $2 billion. The US Army Corps of Engineers is conducting a feasibility study, aiming to increase vessel traffic and secure water supply for Panama City. Panama will need to dam other rivers to ensure that water sustainability lasts through the end of the century, according to Fortune.


Port of NY-NJ cargo volumes down YOY, up from pre-pandemic levels. Cargo volumes at the Port of New York and New Jersey in November surpassed pre-COVID levels from 2019 by 7.5% but experienced an 11% year-over-year decline and a 13.2% decrease from October. The port moved 644,439 twenty-foot equivalent units (TEUs) in November, marking a notable reduction from the previous year. Despite the monthly variations, year-to-date loaded container volumes exceeded 4.8 million TEUs, positioning the port as the nation's second busiest for loaded containers handled year-to-date. Total year-to-date volumes reached nearly 7.2 million TEUs through November, representing a 4.2% increase compared to the same period in 2019.


Biden Administration extends China tariff exclusions. The Biden administration extended exclusions on tariffs for hundreds of Chinese products just before their expiration on Dec. 31. The extension, applicable to 429 products, will now last until May 31. “The extension will enable the orderly review of the exclusions consistent with statutory factors and objectives to identify in which cases additional time would enable shifts in sourcing to the United States or third countries,” the Office of the U.S. Trade Representative said in a Dec. 26 statement. The comment period for these exclusions opens on Jan. 22 and closes on Feb. 21.


Southern California warehouse emissions rule upheld. A federal district court has upheld a rule regulating emissions at Southern California warehouses, a measure the state's trucking industry viewed as resembling a zero-emission vehicle (ZEV) mandate. In a December ruling, Judge John Kronstadt rejected claims from the California Trucking Association that the South Coast Air Quality Management District's warehouse emissions rule, approved in May 2021, was preempted by the Federal Aviation Administration Authorization Act. This ruling has implications for ongoing legal battles involving the transportation industry and the state of California, including disputes related to independent contractor law AB5. Read more on the decision here.


FRA’s rule on train crew size advances for review. The Federal Railroad Administration (FRA) has advanced its final rule on train crew staffing to the U.S. Office of Management and Budget (OMB) for review. The final rule is expected to be released in March, following OIRA's assessment of its consistency with regulatory principles and alignment with presidential policies. OIRA's review, which may take up to 90 days (extendable by 30 days), will analyze the consequences, benefits, and costs of the rule. The notification doesn't specify how the final rule differs from the initial proposal from July 2022, when the FRA proposed a minimum 2-member crew size for most trains.


Winnipeg Airport's cargo expansion supported by Transport Canada. Transport Canada is contributing $14.5 million to Winnipeg Richardson International Airport's $87 million multitenant air cargo logistics facility. Construction is set to begin in April, with plans for the facility to “boost Manitoba’s global trade connections through increased cargo capacity and efficiency,” according to Freight Waves. The funding is part of the federal Trade and Transportation Corridors Initiative, allocating $3.5 billion over 11 years to modernize infrastructure. Winnipeg's cargo terminal will facilitate quicker processing and distribution, featuring 142,500 square feet of space and a cold-storage area for perishable goods.


Vessels visiting EU ports required to offset CO2 emissions with EU Allowances. The European Union's emissions trading system (EUETS) has ushered in the largest regional green regulations in the history of shipping, requiring vessels visiting EU ports to offset CO2 voyage emissions through the purchase of EU Allowances (EUAs) beginning Jan 1. The regulation, part of the EU's emissions trading system, imposes costs on shipping, with projections indicating potential impacts on freight costs. For example, a VLCC journey from Ras Tanura to Rotterdam could incur around $200,000 in EU ETS costs per voyage in the coming year, equivalent to 4% of current freight costs. As the regulation phases in at 100% in 2026, these costs are expected to rise to $0.5 million or 10%, according to Splash 24/7.


White House warns that Red Sea attacks could affect U.S. economy. The White House is warning that disruptions and attacks in the Red Sea region could affect the U.S. economy and lead to higher shipping costs. “If we weren’t concerned, we wouldn’t have stood up an operation in the Red Sea, now consisting of more than 20 nations, to try to protect that commerce,” White House spokesman John Kirby said at a White House press conference on Wednesday, referring to the U.S.-led military force Operation Prosperity Guardian. Read more from FreightWaves here.


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.


Radiant World Trade Services is a part of Radiant Logistics, Inc. [linked] (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.