Airgroup's Freight Market Update: May 1, 2025
This week: President Trump is demanding free passage for U.S. ships through the Panama and Suez Canals; The Port of Los Angeles is bracing for a major slowdown next week; The European Commission has adopted a new measure requiring all vessels to provide insurance details.
Current Critical Industry Trends
President Trump is demanding free passage for U.S. ships through the Panama and Suez Canals. He argues that the U.S. made these vital trade routes possible and should not have to pay. He has tasked Secretary of State Marco Rubio with “immediately taking care of” the situation and has floated the idea of returning U.S. troops to Panama.
A potential strike is looming for Canada Post as extended collective agreements expire on May 22. Postal workers and management are currently in negotiations, aiming to reach a deal and avoid a labor disruption later this month.
Ocean
The European Commission has adopted a new measure requiring all vessels to provide insurance details. The move is part of a broader effort to curb the risks posed by Russia’s shadow fleet. With over 1,000 sanctioned ships, many uninsured and aging, the EU and regional partners are stepping up surveillance and enforcement amid growing fears of environmental and infrastructure threats from these vessels.
Ports
The Port of Los Angeles is bracing for a major slowdown next week, with cargo volume projected to fall 35% compared to the same period last year. Ship arrivals in May are also expected to drop by around 25%, signaling a continued decline in activity.
The Port of Vancouver has completed initial testing of a hydrogen fuel cell-powered RTG crane, now entering a year-long field trial. The initiative is part of a broader push to replace diesel-powered equipment with zero-emission alternatives. Vancouver was selected for the pilot due to its strong hydrogen sector and support from the B.C. government.
International
What does the U.S. import from China? In 2024, China accounted for 11% of total U.S. trade, with top imports including electronics, toys, machinery, and furniture. Use the interactive tool from Supply Chain Drive to explore the share of specific goods sourced from China.
Trucking
Tariff shock expected to trigger recession and job losses. Apollo predicts a freight downturn by mid-May as container volumes plummet. Retail and logistics sectors face rising costs and shrinking demand across the U.S.
Rail
CPKC launches certified Site Ready rail hubs to spark growth. Nine sites across Canada, the U.S. and Mexico will fast-track industrial projects. More than 6,000 acres are available to boost jobs, trade and development.
Air
Strong March lifts global air cargo above pre-COVID levels. Air freight grew 4.4% year-over-year and 3.9% above 2019 performance. Europe-North America posted 8.5% growth with 14 straight months of gains.
Technology
Maritime alert fatigue is a growing cybersecurity risk. Email still powers U.S. ship-to-shore ops, but warning overload dulls crew vigilance.15% of maritime users clicked simulated phishing links in recent tests.
Other
New tech reduces idling and emissions across North American fleets. IdleLess uses sensors and predictive AI to save $3,300 in fuel and 8.6 tonnes of CO2 annually. Six pilot programs are underway in the U.S. following successful European testing.
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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!