DBA's Freight Market Update: February 27, 2025
This week: Major port fees for China have been proposed by the U.S. Trade Representative; Mexico is considering imposing tariffs on Chinese imports; Container rates continue their downward trend for another week.
Current Critical Industry Trends
Major port fees for China have been proposed by the U.S. Trade Representative. Ships owned by Chinese companies could face charges of up to $1 million per port visit, while vessels built in China may incur fees as high as $1.5 million. These measures are part of the Trump administration's broader strategy to reduce China’s influence in the maritime industry.
Mexico is considering imposing tariffs on Chinese imports as part of President Claudia Sheinbaum’s efforts to avoid the potential 25% tariffs threatened by President Trump. This move comes in response to ongoing trade tensions.
Ocean
Container rates continue their downward trend for another week. Drewry’s World Container Index (WCI) dropped 10% to $2,795 per FEU, while the Shanghai Containerized Freight Index (SCFI) saw a 9.3% decrease. Drewry expects a slight further decline in spot rates next week as capacity continues to rise.
The 2025 State of Transportation Report has been released, offering robust findings. Key considerations include cost-saving opportunities and emissions reduction. 87% of shippers report setting long-term sustainability-related transportation goals. The report also provides insights into evaluation criteria for establishing carrier relationships.
Ports
Port of Trois-Rivières receives C$87M from the Canadian government. This federal investment aims to improve cargo flow and reduce congestion. Additionally, technological advancements will be implemented to “build the Port of tomorrow, today.”
International
The shipping point designated as “FOB” is used for 99.8% of all cargo shipments, which is one of the 11 INCOterms used to define the responsibilities of sellers and buyers. This comprehensive article explores the differences between FOB shipping point and FOB destination, as well as other key considerations.
Trucking
Efficiency on the move as Blue Water Bridge goes cashless and MacKay toll Is eliminated. Starting April 1, Blue Water Bridge goes cashless accepting Amex and Discover, while Nova Scotia eliminates truck tolls on MacKay Bridge, cutting wait times and costs.
Canadian trucking workforce hits a record high in 2024. Over 790,000 employees power the industry while driver vacancies dropped from 28,000 to 13,000. Trucks move 70% of Canadian-U.S. trade valued at $480 billion.
Rail
Study shows overhead electrification deemed infeasible for U.S. Rail. AAR estimates a $1.1 Trillion price tag for 139,000- mile network, citing operational and grid constraints. Industry shifts toward alternative zero-emission technologies.
Air
New FAA guidelines demand regular 757 cargo door testing. With recent in-flight incidents in view, the FAA recommends testing door mechanisms every 5,000 cycles on converted 757 freighters. Extra care during harsh weather is essential.
Technology
Is automation the solution to warehouse woes? A recent study shows that 70 percent of warehouse workers are concerned about safety risks on the job. Workers are looking to warehouse leaders to implement automation and AI-driven technology solutions.
Other
Canadian ministers gather to tackle truck safety and trade barriers. Quebec, federal, provincial and territorial ministers are pushing for stronger safety checks and data sharing to clamp down on unsafe carriers and boost internal trade efficiency.
Panama Canal eyes $1.2B reservoir project to boost water supply. A new project starting in 2027 will build a 1.5bn cu m reservoir with an 8.7 km tunnel to fortify Gatun and Alajuela lakes amid a 10% drop in ship capacity.
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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!