Radiant's Freight Market Update

This week: Tariff fallout intensifies as U.S. companies absorb rising costs; Canada signals resolve as trade deadline nears; Union Pacific and Norfolk Southern are in talks to merge.

Current Critical Industry Trends

Tariff fallout intensifies as U.S. companies absorb rising costs. Customs revenues are climbing, but businesses are footing the bill. Experts warn the trend may not be sustainable.

Canada signals resolve as trade deadline nears. With August 1 tariffs on the horizon, talks with the U.S. are heating up. Prime Minister Carney insists Canada won’t accept a deal at any cost. Counter-tariff adjustments are on the table if progress falters. Meanwhile, Canada is expanding trade with non-U.S. partners.

New tariff deal inked between U.S. and Philippines. Under the agreement, imports from the Philippines will be subject to a 19% tariff, while U.S. exports will have market access with zero tariffs. Last year, the U.S. exported approximately $9 billion in goods to the Philippines.

Ocean

Ocean cargo volumes are getting a temporary boost as a tariff pause sparks an inventory surge. Retailers are fast-tracking imports ahead of the August 1 deadline set by President Trump. However, the National Retail Federation expects a sharp slowdown in volumes from August through October.

Ports

Port volumes split as tariff rush drives Los Angeles surge. Los Angeles recorded its busiest June ever while Oakland saw a 12.8% drop. Importers rushed shipments ahead of President Trump’s upcoming China tariffs.

Security increased at all Russian seaports amid rising sabotage fears. All foreign ships must now receive federal security approval before docking. Shadow fleets, drone strikes, and blast incidents fuel a wider maritime crackdown.

International

Global trade repositions as China bypasses U.S. tariffs. Export volumes to Africa, Europe, and ASEAN are rising while U.S. ports report back to back declines. The shift signals a long-term restructuring of global supply chains away from U.S. dependence.

Trucking

'Buy Canadian' policy brings cautious optimism to truck makers. The interim procurement rules aim to boost domestic sales and counter U.S. tariffs. But industry voices say more support is needed to truly level the playing field.

U.S. truck freight volumes dipped slightly in June. The small decrease reflects seasonal shifts and ongoing supply chain adjustments as industries manage inventory levels and prepare for upcoming demand. Despite this, overall freight volume remains stronger than last year.

Rail

Union Pacific and Norfolk Southern are in talks to merge. The deal would create the first coast-to-coast freight rail network in the U.S., streamlining routes and reducing interchange delays. If approved, it could significantly reshape domestic rail logistics. The merger is expected to face intense regulatory scrutiny.

Air

DOT issues new requirements for Mexico in ongoing air cargo dispute. The move follows Mexico’s decision to relocate U.S. cargo carriers from Mexico City’s main airport. According to the DOT, the new measures aim to “prompt Mexico to restore rights for U.S. cargo operators.”

Abu Dhabi opens regional vaccine hub to expand pharma air cargo reach. The new facility will support cold-chain distribution across the Middle East, Africa, and South Asia. It’s part of a broader push to strengthen Abu Dhabi’s role in global life sciences logistics.

Technology

Cybersecurity is emerging as a major risk in air cargo. As digital systems like e-AWBs, booking platforms, and customs APIs become the norm, vulnerabilities have increased. Experts warn that cyberattacks, especially ransomware, could be the industry’s next major disruption. A single breach can halt operations, reroute shipments, and cause millions in losses.

Other

Cargo theft was a key focus at a recent Senate Judiciary Committee hearing. Lawmakers discussed how theft has evolved into complex schemes, sometimes involving insiders. Losses in 2024 are estimated to exceed $1 billion. Proposed legislation calls for “collaborative investigations” among federal and local agencies.

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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.