Radiant's Freight Market Update

This week: Canada Post strike deepens as wage talks stall and backlogs mount; Canadian Ports reopen, but backlogs pose new challenges; China-Europe freight network reaches 100,000 train milestone.

Current Critical Industry Trends

Canada Post strike deepens as wage talks stall and backlogs mount. Now in its sixth day, the Canada Post strike has halted mail services nationwide, with 55,000 workers demanding wage increases and opposing the use of contract labor for weekend deliveries. Parcel volumes have dropped by 42%, small businesses are struggling, and Canada Post faces mounting losses as negotiations show little progress. The backlog could disrupt operations well into 2025.

Canadian Ports reopen, but backlogs pose new challenges. Operations at Canada’s ports have resumed following a 10-day strike, but the aftermath leaves over 5,000 TEUs stranded at Montreal and numerous vessels waiting offshore in Vancouver. Shippers face mounting detention and demurrage (D&D) fees, with delays expected to last weeks. Maersk and other carriers warn of sliding schedules and advise documenting appointment attempts to contest fees.

Ocean

Record volumes reported for the Far East to South America East Coast route in the first nine months of 2024. Data reveals a year-on-year increase in capacity offered across all services for this trade lane, particularly in the final four weeks of October. This surge reflects ongoing shifts in global trade dynamics, impacting shipping capacity and routes.

Ports

LA-Long Beach rail container dwell times reach two-year high amid import surge. Rail container dwell times at the LA-Long Beach port complex averaged 9.86 days in October, the highest in two years, driven by a 30% surge in Asian imports. While terminals report progress in clearing backlogs, shippers continue to experience delays.

Hede Shipping Targets E-Commerce Growth with Revamped Feeder Service. Hede Shipping’s HEX2 service now connects Huanghua and Los Angeles, cutting transit times by 7-9 days. With exclusive berths in LA and a focus on northern China’s e-commerce cargo, the service aims to boost Hebei’s economy.

International

A frozen food supply chain initiative aims to change transportation temperatures. Membership in the Move to -15°C initiative has grown to over 30 global companies and is dedicated to reducing carbon emissions by adjusting the century-old standard of shipping at -18°C.

Trucking

The ATA For-Hire Truck Tonnage Index showed an increase in October, rising by 1.2% to 114.6. Truck tonnage has increased by a total of 3% since January, indicating a gradual improvement in the freight market.

FMCSA sets 60-day deadline to replace revoked ELDs. Three ELDs—Keep Tracking, Rollingtrans ELD, and RT ELD Plus no longer meet federal standards. Carriers must switch to compliant devices by January 17, 2025 to avoid penalties.

Rail

China-Europe freight network reaches 100,000 train milestone. Stretching across 25 European and 11 Asian countries, the China-Europe freight train service has carried over 220,000 TEUs from Jiangxi alone, valued at $8.4 billion, transforming inland trade opportunities.

Air

Worldwide air cargo average spot rates are significantly elevated year-over-year. Year-over-year (YoY) spot rates have increased by 70% for MESA, 14% for Europe, 14% for CSA, 10% for Africa, and 5% for North America.

Technology

eVTOL drone project advances toward cargo flight operations. The Nuuva V300, a hybrid-electric drone with over 100 cubic feet of cargo space, is expected to take flight by year-end. Designed for both rural and urban deliveries, it has the potential to redefine air freight logistics.

Other

Thirty-eight U.S. ports along the Canadian border have adjusted their operating hours. These changes were made in close coordination with the Canada Border Services Agency to ensure aligned operational hours, further enhancing the security of both countries.

⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯

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. (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.