Airgroup's Freight Market Update: August 21, 2025
This week: China’s share of U.S. imports fell to the lowest level in decades; President Trump expanded steel and aluminum tariffs; Air Canada strike ends, causing disruptions and delays.
Current Critical Industry Trends
China’s share of U.S. imports fell to 13% in 2024, the lowest level in decades, driven by tariffs, rising costs, and shifting supply chains. Companies are relocating production to countries like Mexico, Vietnam, and India, while leveraging AI to optimize shipments and control costs.
President Trump expanded steel and aluminum tariffs to cover more than 400 consumer items, giving exporters little notice. Companies now face major compliance challenges tracking metal content and overlapping duties. The measures are estimated to affect $328 billion worth of goods.
With the end of the Air Canada strike, around 75% of air cargo volumes remain at risk of disruption and delays. The airline’s full return may take several days as aircraft and crew are out of position. Air Canada has placed new booking for specialty commodities on hold and existing bookings may be delayed or cancelled.
Ocean
Alaska Marine Lines will stop shipping electric and plug-in hybrid vehicles to Alaska and Hawaii due to lithium-ion fire risks. The policy takes effect immediately for Central and Western Alaska and Hawaii, and Sept. 1 for Southeast, with ferries still an option under strict limits. AML will reassess as EV safety standards evolve, while non-plug-in hybrids and smaller electric vehicles remain allowed.
Ports
Germany’s Port of Hamburg saw cargo volumes rise in the first half of 2025, boosted by new services and reshuffled carrier alliances. Trade with most regions improved, highlighting the port’s growing global connectivity. The only notable drop was U.S. volumes, which fell 19% over the period.
International
The end of the de minimis exemption on Aug. 29 is set to disrupt supply chains just ahead of peak season. Sub-$800 imports will now face duties and tariffs, raising costs and potentially slowing Customs processing. While large retailers are preparing, experts warn smaller importers could face significant challenges adjusting in time for the holiday rush.
Trucking
Limited parking access leads to an estimated $100 billion in lost productivity. Most available truck parking in the U.S. is restricted to private lots reserved for specific fleets, leaving drivers with limited options. Even when truckers do find parking, it often lacks sufficient space or security, leaving them vulnerable to rising cargo theft.
The Clean Truck Partnership saw a wave of legal action last week as disputes between truck manufacturers, California regulators, and federal agencies escalated. OEMs filed suit against CARB to challenge the 2023 deal, and the U.S. Department of Justice has now moved to intervene. The conflict centers on California’s emissions rules, creating uncertainty for manufacturers navigating overlapping state and federal requirements.
Rail
Illinois logistics members gathered to celebrate the expansion of the City of Rochelle Intermodal Transit Center. The project is designed to accommodate growing demand for transloading and third-party logistics services. This milestone further strengthens the region’s role as a hub for freight and supply chain activity.
Air
Air cargo demand between Asia Pacific and the U.S. on the rise. Demand from China to the U.S. increased by 5% year-over-year in the week ending in August 10, a first since mid-April. However, volumes from Europe to the U.S. have weakened, perhaps a sign of volumes rebalancing following the finalization of numerous tariff arrangements.
Mexico’s airfreight industry has a promising long-term future. With continued demand from various industries, Mexico is exploring sea/land alternatives and strategic partnerships to circumvent tariffs and their impact. If stakeholders remain flexible during these shifts, Mexico’s airfreight industry could see positive long-term results.
Technology
The Government of Canada announced a C$25 million investment to strengthen the zero-emission vehicle industry. Of this, C$1.5 million will go toward developing EV charging infrastructure. The funding aims to enhance energy efficiency and support new features, including integrated management systems and vehicle-to-grid charging capabilities.
Other
Maritime carbon capture kits will arrive in Europe for the first time at ABP’s Southampton Port. The carbon capture kit, or black pipes, provides a practical, cost-effective alternative to shore power installations. It aims to capture up to 99% of particulate matter and 95% of nitrogen oxides, while isolating and storing up to 95% of carbon dioxide and 90% of sulfur emissions.
Following the explosion on a ship near the Port of Baltimore on August 18, the U.S. Coast Guard has partially reopened the shipping channel into Baltimore. The first vessels began moving in the evening of August 19 with some restrictions still on traffic. The U.S. Coast Guard will determine “when the channel can safely reopen, as well as the timing of vessels arrivals and departures”.
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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!