Radiant's Freight Market Update

This week: Hurricane Francine damages Gulf ports; Air Canada is preparing for a potential strike starting on Sept. 15; Supplier of tools and products, Marshalltown, has announced plans to open a new distribution center in Kansas City.

Current Critical Industry Trends

Assessing Damage to Gulf Ports. While now downgraded to a tropical Storm, Francine hit the Gulf Coast as a Category Two Hurricane. Multiple ports in Louisiana closed for damage assessment and repair work with an expectation to reopen by the weekend.

Shippers brace for East and Gulf coast port strikes. In a letter to union members, ILA President Harold Daggett encouraged solidarity, stating, 'Stay strong, stay united, and we will prevail!' A historic strike may be on the horizon if an agreement cannot be reached.

Ocean

An unprecedented overhaul of liner alliances is set to begin next year. Premier Alliance is the new branding for a partnership between Ocean Network Express (ONE), HMM and Yang Ming Marine Transportation. They have negotiated a slot exchange deal on nine services for Asia-Europe trade.

Burning tanker remains in Red Sea as salvage efforts stall. The vessel remains immobilized as fires continue to burn. There is growing concern that the tanker's structural integrity may be compromised, potentially causing a crude oil spill into the sea.

Ports

Signs of a breakthrough in the standoff between German dockers and port employers emerged after a rail lockout at the Port of Hamburg. Following five negotiation rounds, the union recommended accepting an improved offer that includes a wage increase, holiday pay boost, and enhanced overtime pay.

The Port of Los Angeles is investing $125 million in two major rail expansion projects. These rail expansion projects aim to boost capacity and support sustainable growth. The $73 million Pier 400 expansion, completed earlier this year, is expected to cut 1,200 truck trips daily by 2040, while the upcoming $52 million project at the Fenix Marine Terminal will add new tracks to increase rail capacity.

Trucking

Kansas City will soon be home to a new 200,000 sq. ft. distribution center. Marshalltown invests $27M in a new state-of-the-art facility. Kansas City was chosen for its strategic location, offering access to most of the U.S. within a two-day truck drive.

Rail

Shippers look to highways to move their cargo if railroads don’t improve service and rates. Testimony submitted to the Surface Transportation Board ahead of next week’s agency meeting highlighted reliability and availability as top concerns.

Air

Air Canada is preparing for a potential strike starting on Sept. 15. If a pay agreement is not reached, a 72-hour strike or lockout notice could disrupt both air and cargo operations.

InternationalU.S. noted as risk country for stink bug threat in Australia and New Zealand. Shipments coming into New Zealand and Australia are subject to increased inspections or offshore treatment. The risk season measures will remain in effect until April 30, 2025.

Technology

AI and machine learning could be instrumental in boosting productivity and win rates for forwarders. Adopting this technology may enhance efficiency and competitive advantage in the freight forwarding industry.

Other

Patagonia explores environmentally friendly packaging materials. In a partnership with Pack4Good, Patagonia will opt for alternative packaging sources like agricultural waste and non-forest alternative fibers.

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

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.