Airgroup's Freight Market Update: August 14, 2025
This week: President Trump signs executive order delaying China tariffs; Canada and the U.S. reignite lumber trade dispute; Mexico takes top spot in Canadian vehicle imports.
Current Critical Industry Trends
President Trump signs executive order delaying China tariffs. The new order pauses additional retaliatory tariffs until November 10. The extension is intended to give both countries more time to finalize trade agreements.
Canada and the U.S. reignite lumber trade dispute. Financial support pledged by the Canadian government last week has prompted U.S. threats of higher anti-dumping and countervailing duties. Canada denies the “stumpage rates” claim and is pursuing diversification to reduce dependence on U.S. trade.
Ocean
New ocean route linking Mexico and Asia to launch in late August. OOCL will introduce direct sailings between China and Mexico. Transit times are projected to range from 16 to 20 days, depending on the port of call.
Ports
Trade shifts reshape Africa’s container shipping. West Africa has gained new liner connections, including MSC’s ultra-large vessels on routes from Southeast Asia. In East Africa, Kenya’s Lamu port is seeing more activity, highlighted by the arrival of the largest container ship to ever dock in the region.
Tariff pause drives record July at Port of Long Beach. The temporary halt on higher tariffs for Chinese imports boosted volumes to 944,232 TEUs, the port’s busiest July ever and third-busiest month in its history. Uncertainty remains over whether the surge will hold as trade talks proceed.
International
Mexico takes top spot in Canadian vehicle imports. For the first time in three decades, Mexico surpasses the U.S., reflecting disruptions in the global auto industry from President Trump’s tariffs. It remains unclear whether Mexico will maintain its lead.
Trucking
Truck makers challenge California emissions deal in court. Daimler, Volvo, Paccar, and International Motors are suing to exit the Clean Truck Partnership, citing conflicts between state and federal rules and an unrealistic timeline for meeting targets. The federal court’s decision could redefine California’s authority over truck emissions and shape the industry’s future vehicle plans.
Rail
Indian Railways launches first industrial salt-loaded rake. The service carried 3,851 tonnes, offering faster, more sustainable freight transport while reducing reliance on trucks and cutting emissions. This move enhances regional trade, improves supply chain efficiency for Kutch’s salt industry, and strengthens connectivity to key industrial and port hubs.
Air
The U.S. aviation industry is shaken by reciprocal tariffs, particularly the air cargo industry. E-commerce flows, disrupted due to the elimination of the $800 de minimis exemption, are facing a collapse in direct-to-consumer air shipments. Cost pressures, procurement delays, and network disruption are forcing carriers to redraw network plans, redeploy aircraft, and reconfigure capacity.
Technology
New EPA guidelines aim to provide more flexibility and reliability without compromising air quality or emissions reduction. When a fault is detected in heavy-duty trucks, an automatic trigger that forces the engine to operate at a reduced capacity will not occur for at least a full working day. The Owner-Operator Independent Drivers Association (OOIDA) welcomes these changes, highlighting that the new measures will help drivers maintain safe control of their vehicles.
Other
According to new midyear surveys, most carriers and brokers expect steady or rising freight volumes in the second half of 2025. Despite underperformance in the freight market in the second quarter, many in the industry are expecting a recovery in the next six months. More than half of carriers expect demand to increase in the next 3-6 months.
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As always, Airgroup’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!