Airgroup's Freight Market Update: May 8, 2025
This week: Red Sea ceasefire talks spark conflicting clThis week: Red Sea ceasefire talks spark conflicting claims; The Port of New York and New Jersey was the busiest in the U.S. in March; Trans-Pacific shipping routes collapse under tariff pressure.aims; The Port of New York and New Jersey was the busiest in the U.S. in March; Trans-Pacific shipping routes collapse under tariff pressure.
Current Critical Industry Trends
Red Sea ceasefire talks spark conflicting claims. President Trump says the Houthis have capitulated and agreed to end attacks on shipping vessels. The rebels say otherwise, clarifying their stance against U.S. ships only, not Israel. Omani mediation confirms both sides have agreed to stand down in mutual engagements. Despite the statements, container lines continue to avoid the Suez route, citing ongoing threats.
Ocean
Trans-Pacific shipping routes collapse under tariff pressure. The cost of shipping from China to the U.S. has plunged to a two-year low. Coal, soybeans and propane shipments are now rerouting away from China.
Ports
Philippine port modernization accelerates with MSH expansion. DP World’s $100 million upgrade lifts capacity and boosts equipment size and scale. MSH Q1 volume climbed 25% year over year, outpacing regional growth trends.
International
U.S. and U.K. announce new trade agreement. President Trump has agreed to reduce tariffs on U.K. automobiles, aluminum, and steel as part of a new trade deal between the United States and the United Kingdom. In return, Britain will increase imports of American beef. Final details of the agreement are expected to be concluded in the coming weeks.
Trucking
Canadian Trucking Alliance calls for crackdown on exploitative hiring. The industry supports immigration but wants protection for foreign drivers and better oversight. The CTA says abuses by schools and consultants continue under current systems.
President Trump issued an Emergency Order on English proficiency for truck drivers. The order aims to enhance road safety and improve trucking capacity. However, carriers should be mindful of potential operational impacts, as drivers who don’t meet language requirements may face out-of-service penalties.
Rail
Union Pacific’s connection to the new Capital Area Rail Terminal in Jefferson City, MO boosts regional freight movement. The connection will improve efficient rail access for bulk commodities like grain, lumber, and liquids. The facility enhances Missouri’s supply chain capacity and supports faster, more flexible goods transport.
Air
The Port of New York and New Jersey was the busiest in the U.S. in March. The port recorded moving over 516,000 loaded containers, a 9.7% increase from the previous year. While airport and rail passenger volumes remained strong, the port stood out as a key driver of freight traffic.
Technology
At ACT Expo 2025, experts said software-defined and autonomous vehicles will soon transform trucking. The technology will be responsible for boosting efficiency, cutting costs, and making traditional models obsolete. AI, connectivity, and post-delivery updates will drive the shift, with full autonomy expected in the coming decades.
Other
A coalition of over 350 freight industry groups is urging Congress to reinstate the expired Biodiesel Blenders’ Tax Credit, citing rising fuel costs and disrupted biofuel supplies. They argue the credit is key to lowering emissions, reducing transportation costs, and protecting consumers from inflation.
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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!