Airgroup's Freight Market Update: July 3, 2025
This week: July 9 marks the end of tariff relief for many U.S. trade partners; Canada scraps digital services tax under U.S. pressure; Fifth-party logistics gains momentum as tech reshapes global supply chains.
Current Critical Industry Trends
Canada scraps digital services tax under U.S. pressure. Ottawa rescinded the 3% digital levy just before enforcement. The issue remains a flashpoint despite Canada’s last-minute retreat.
July 9 marks the end of tariff relief for many U.S. trade partners. President Trump confirms no more delays in global tariff enforcement. Massive penalties await countries that haven’t reached deals. The administration continues trade talks but says time is limited. Meanwhile, a new TikTok deal and China tensions dominate headlines.
Ocean
Cape of Good Hope reroutes trigger spike in container losses. Container losses at sea rose by more than 2.5 times in 2024. Winter storms and diverted traffic around Africa were key factors.
Ports
Legal challenge disrupts Port of Santos expansion plans. Maersk’s $1 billion lawsuit questions the fairness of Brazil’s auction criteria. Antaq’s exclusion policy could bar the world’s top three carriers.
International
Fifth-party logistics gains momentum as tech reshapes global supply chains. With a projected CAGR of 4.4%, the 5PL market is set for strong growth. End-to-end solutions are helping businesses boost efficiency and resilience.
Trucking
Trucking industry wins big with new grants and regulatory rollback. A $275M initiative expands parking while scrapping outdated mandates. The move marks the first phase of Trump’s sweeping trucking reforms.
Industry experts warn of a significant increase in cargo theft risk during the July 4th holiday week. Extended business closures and reduced security create ideal conditions for thieves, making this a high-risk period for the supply chain. Logistics companies are advised to boost security measures to protect assets and shipments during this time.
Rail
The Port of Los Angeles has signed an agreement to boost export traffic from California’s Central Valley. The partnership focuses on the Wonderful Logistics Center, a 3,400-acre hub with an international rail terminal set to open in 2026. This collaboration aims to streamline cargo flow, support agricultural exporters, and create jobs in the region.
Air
Global air cargo demand rose 2.2% in May, IATA reports. Asia-Pacific carriers led with 8.3% growth, alongside increases in Europe, the Middle East, and Africa. Despite trade headwinds, demand held steady as shippers adapted to shifting supply chain conditions.
Technology
Driver-facing cameras are now a leading tool for boosting retention. Leaders from DHL, XPO, and Helix say framing the systems as safeguards, not surveillance, is key to driver buy-in. A recent survey of more than 1,500 operations leaders supports the shift.
Other
The 2025 forklift market is undergoing significant changes. The global industry has had a rocky start to the year, driven by shifting trends and new tariffs. Innovation and tech-driven strategies will be essential for staying competitive.
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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!