Radiant's Freight Market Update

This week: North American shippers monitor rail and port strikes; Canadian shipyard wants to see a 100% tariff on Chinese-built ships; Supply chains embrace Generative AI.

Current Critical Industry Trends

North American shippers are closely monitoring the situation as the Canadian rail strike concludes and a port strike threatens the East Coast of the United States. These ongoing disputes may result in increased transit times and higher freight costs in the coming weeks.

Ocean

The shipping industry faces pressure to improve supply chain transparency. Rising ESG demands are pushing the maritime industry, particularly in Norway and the EU, to address labor standards and environmental concerns. Vessel owners are under increasing scrutiny for ethical sourcing, with audits revealing poor labor conditions, driving the need for standardized, transparent reporting.

Towing of the burning tanker in the Red Sea has been halted due to safety concerns. Efforts to tow the tanker Sounion, which was set on fire after a series of Houthi attacks, were stopped after salvage companies deemed conditions unsafe. The tanker, carrying nearly one million barrels of crude oil, has been stranded for weeks.

Ports

Cargo damage and loss have been reported due to severe weather off the coast of South Africa. The MSC Antonia lost 46 boxes, and another 305 containers were damaged. A navigational warning has been issued to report any sightings of these cargo containers.

Oregon’s only international container terminal is seeking aid. The port plan for Terminal 6 emphasizes that it cannot sustain continued losses without investment from the state. The proposed funding must be approved in September and during the 2025 legislative session.

Trucking

25% of carbon emissions in Mexico come from cargo transport. While transitioning to zero emissions is costly, it is essential for air quality in the U.S.-Mexico border region.

Rail

Early tentative agreements have been reached between Norfolk Southern and BNSF Railway. These agreements will cover approximately 55% of the railroad's unionized workforce. They include yearly wage increases and enhancements to healthcare benefits for railroaders.

Air

Atlas Air is looking to lease land at Ted Stevens Anchorage International Airport. This move aligns with their plans to expand their freighter fleet. Discussions are underway to use ANC as a future entry point for distribution.

International

Canadian shipyard wants to see a 100% tariff on Chinese-built ships. The Canadian Marine Industries and Shipbuilding Association (CMISA) cites several reasons for supporting this surtax: protecting the Canadian industry, upholding national security, and ensuring ethical business practices.

China plans to launch an anti-dumping investigation into canola imports from Canada. This move may be in response to recently imposed Canadian tariffs on Chinese electric vehicles. More than half of all canola exported from Canada is shipped to China, making this action deeply concerning for the farming sector.

Technology

Supply chains are embracing generative AI for operational improvements. While technology has long aided the transportation industry, GenAI offers endless new possibilities. Organizations using GenAI are experiencing benefits such as reduced planning time, lower inventory costs, and improved forecast accuracy.

Other

2050 has been set as the target year for achieving net-zero emissions by the International Maritime Organization. Interest is surging in zero-emissions fuels like ammonia and methanol.

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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.