DBA's Freight Market Update: February 20, 2025
This week: EPA pushes back on California’s truck emission standards; New strikes at French ports threaten February cargo operations; Airfreight rates have remained firm over the past week.
Current Critical Industry Trends
EPA pushes back on California’s truck emission standards. With the EPA moving to block California’s stringent truck emissions rules, the trucking industry faces uncertainty over compliance, costs, and infrastructure readiness. California's plan would cut NOx emissions by 75% and mandate a transition to zero-emission trucks, but critics argue the timeline is unrealistic. The debate is now heading to Congress, setting the stage for a major regulatory showdown.
New strikes at French ports threaten February cargo operations. Industrial action is set to hit Saint-Nazaire, Montoir, and Nantes with a 24-hour strike on February 21 and a 48-hour stoppage on February 26–27. Potential port blockades on February 27 could severely disrupt freight flows. Ongoing union protests over pension reforms continue to create supply chain bottlenecks.
Ocean
Container shipping contracts evolve amid market instability. As spot rates swing and geopolitical tensions persist, carriers push for long-term contracts while shippers hesitate. European freight rates are expected to rebound in March, but with a 28% discount on extended contracts.
Ports
New Cebu Port construction underway, aiming for 2028 completion. After years of delays, the $290M NCICP project in Cebu has officially begun. Spanning 60 acres with a 500-meter berth, this port will improve cargo efficiency and solidify Cebu’s position as a key regional logistics hub.
Americold expands into Canada with $80M cold chain hub. By 2029, Americold’s Port Saint John facility will create 100 jobs and improve global food supply chains. With DP World and CPKC backing, this project will transform the region’s temperature-controlled logistics industry.
International
HD KSOE unveils first nuclear-powered container ship model. With a 15,000 TEU capacity and Small Modular Reactor (SMR) technology, this game-changing vessel eliminates fuel tanks and exhaust systems, boosting efficiency.
Maersk partners with Cochin shipyard to boost India’s shipbuilding industry. Maersk's first vessel repair in India, set for 2025, aligns with the government’s $62 billion vision to elevate the country into the top 10 global shipbuilding nations by 2030. The collaboration could generate 12 million jobs by 2047.
Trucking
CO2 regulations & tariff uncertainty drive Mexico’s truck exports down 7.6%. Stricter emissions laws and trade tensions have slowed Mexico’s truck production, impacting Freightliner and International Trucks. Industry leaders urge diplomatic solutions to stabilize exports.
Rail
Quebec’s recharge+ program powers ahead with renewal. With over 760 charging stations installed since 2022, the renewed Recharge+ program continues accelerating fleet electrification and reducing GHG emissions across Quebec.
New Orleans Public Belt Railroad & Gulf Gateway Terminal boost capacity. With a new storage tank and expanded rail connectivity, GGT now stores 260,000 barrels of liquid bulk, enhancing freight movement across North America.
Air
Airfreight rates have remained firm over the past week. This stability comes as e-commerce volumes decline and some e-commerce flights are being canceled. Experts are closely monitoring tariffs and changes to de minimis exemptions, which could have a significant impact in the near future.
Technology
CargoMax 20KHC was introduced at Aero India 2025. The cargo drone has the capability to carry a payload of over 400 lbs. It is designed for challenging scenarios such as naval or island routes, disaster relief, and emergency response.
Other
Retired rail cars get a second life as replacement bridges. Last fall, Hurricane Helene swept through North Carolina, leaving a trail of damaged bridges in its wake. To quickly address the damage, the NCDOT turned to retired rail cars, repurposing them as temporary, budget-friendly solutions until permanent repairs could be made.
Electric vehicle maker Nikola filed for Chapter 11 bankruptcy this week. Once a hot startup, Nikola was expected to become the Tesla of heavy trucks until its founder was convicted of misleading investors. The company plans to continue limited service for vehicles already on the road.
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As always, DBA’s team is here to help. Our expert teams are ready to answer any questions you may have or give advice for managing the current logistics environment. Additionally, if you need help moving freight or gaining visibility and control over your supply chain, we’d happily discuss what Radiant can do for you. Contact us!