Radiant's Freight Market Update

This week: Ottawa’s intervention sparks union backlash over B.C. Port lockouts; Airfreight rates remained firm in October; NRF projects robust holiday spending amid inflation and market uncertainty.

Current Critical Industry Trends

Ottawa’s intervention sparks union backlash over B.C. Port lockouts. As Canada’s Labour Minister orders binding arbitration to restart operations, the union for over 700 B.C. longshore supervisors is preparing a court challenge, arguing that workers’ rights are at stake. The disruption has impacted an estimated $6.1 billion CAD in trade nationwide.

Ocean

2024 could be a record-breaking year for boxship orders. So far, 362 new container vessels have entered the market, with an estimated 169 more expected to be delivered by the end of the year. Given these robust market conditions, charter rates have increased by 100% compared to the same time last year.

Ports

Glitches in the terminal operating system are causing major delays at ports in South India. The disruption is resulting in longer container dwell times and additional costs for shippers.

International

Signs of a solid peak season for freight are emerging as both shippers and carriers report increased activity. Retail demand is showing strength, with inventory restocking and robust consumer spending expected to drive higher shipping volumes.

Trucking

US Bank shipments declined by 21% year over year in Q3. While there are some signs of optimism, reports suggest that any recovery in the trucking market will be gradual.

Quebec trucking companies navigate rising costs and workforce challenges. With a 30% truck cost hike expected under EPA 2027 standards, trucking firms are focusing on workforce retention and strengthening cybersecurity to adapt to ongoing economic challenges.

Rail

Miles of track need to be rebuilt due to damage from Hurricane Helene. The fallout has increased dwell times, and CSX expects Q4 recovery and rerouting costs to total $20 million.

Air

Airfreight rates remained firm in October, despite demand falling short of expectations. With demand increasing, however, securing capacity in the coming months could become more challenging.

New horizons for Canada-China air traffic as restrictions end. With Canada lifting restrictions on flights from China, travel searches have surged 110% for Toronto and 150% for Vancouver. Air Canada and Chinese airlines are poised to meet the rising demand for both passenger and cargo travel.

Technology

Public-private partnerships are driving hydrogen infrastructure for trucking. The DOE’s $7 billion program is establishing hydrogen hubs across the United States to support sustainable fuel options. These projects, like California’s 60-station network and Texas’s fueling complex, aim to enable thousands of fuel cell trucks and help decarbonize supply chains.

Other

NRF projects robust holiday spending amid inflation and market uncertainty. The NRF anticipates holiday sales growth between 2.5% and 3.5%, reaching up to $989 billion USD, driven by steady wage increases and a resilient U.S economy.

Canada Post workers serve 72-hour strike notice as Labour Minister calls for deal. With nearly $750 million CAD in losses in 2023 and $490 million CAD this year, Canada Post is under pressure to meet union demands for wage and benefit improvements before Friday's strike deadline.

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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.