In 2024, the freight industry faced supply chain disruptions, adapted to shifting global trade policies, and took bold steps toward environmental sustainability. Throughout the year, the supply chain was shaped by labor disputes, equipment shortages, natural disasters, and policy changes. However, the industry’s ability to pivot, adapt, and build resilience in the face of these challenges stands as a testament to the grit, ingenuity, and determination that keep the global supply chain moving—because, as we say in the industry, ‘Freight won’t wait.’
LABOR DISPUTES AND SUPPLY CHAIN DISRUPTIONS
Labor actions were a key theme throughout 2024 and significantly impacted U.S. and Canadian ports. Negotiations between the International Longshoreman’s Association and the United States Maritime Alliance led to a tense three-day strike that ground U.S. ports along the East and Gulf coasts to a halt with carriers declaring force majeure as tensions escalated. A temporary agreement brought the work stoppage to a close restoring U.S. port stability through the end of 2024. Long-term labor actions in Canada led to serious railcar shortages and port congestion along both coasts. Intervention by the Canadian government ended the contentious dispute but the ripple effect caused port congestion and equipment shortages throughout North America.
A strike by dockworkers in Germany caused significant congestion in Hamburg, one of Europe’s busiest ports, in July while the Canada rail crises contributed to cargo diversions and additional freight delays. Despite these challenges, U.S. ports – especially along the West Coast – adapted to manage import surges despite facing equipment shortages.
The tragic February bridge collapse in Baltimore in early 2024 severely impacted operations at one of the U.S.’ busiest ports leading to increased congestion along the East Coast that eased in June when the Port of Baltimore returned to normal operations.
A lengthy drought significantly impacted cargo freight movement through the Panama Canal while Houthi attacks in the Suez Canal region forced carriers to take longer routes. Late-season rain and administrative changes are impacting Panama Canal operations, increasing the daily number of transits at a cost.
SUSTAINABILITY AND ENVIRONMENTAL GOALS
Sustainability was a major theme in 2024, with the freight industry taking steps towards reducing its environmental footprint. Green Worldwide Shipping® (Green) continued to lead the charge, joining the SmartWay Transport Partnership and earning the Great Place to Work Certification™ for the second year in a row – demonstrating Green’s commitment to fostering a sustainable work environment. In addition, Green published its 2023 Sustainability Report, showcasing tangible progress on sustainability efforts and setting strategic goals for the future. The company also offset 2023 emissions, reinforcing its commitment to both environmental accountability. Green also took significant steps toward the widespread adoption of zero-emission trucking technologies by joining the Buyers’ Alliance for Zero-Emission Trucking, reinforcing its long-term commitment to environmental transformation.
Green Worldwide Shipping also demonstrated its commitment to the planet through community engagement, supporting reforestation and sustainable agroforestry projects with quarterly donations to Trees for the Future.
The shipping industry also witnessed notable advancements in zero-emission technology. Green, as a founding member of the Zero Emission Maritime Alliance (ZEMBA), completed its first successful zero-emission shipping collective tender in April, demonstrating the growing importance of collaboration in achieving emissions reductions. At the same time, the Environmental Protection Agency (EPA) allocated $3 billion to fund zero-emission port projects, marking a significant step toward reducing environmental impacts at crucial logistics hubs. The European Union expanded its Emissions Trading Scheme (ETS) and introduced new fuel regulations, exerting additional pressure on shippers to adopt cleaner practices.
GLOBAL TRADE AND REGULATORY SHIFTS
Trade shifts in 2024 were influenced by policy changes that redefined tariffs and regulations. The U.S. Trade Representative (USTR) delayed Section 301 tariff decisions that affected businesses reliant on imports from China. The extension of these tariff exclusions through May 2024 provided temporary relief. Tariffs on key Chinese imports were raised by as much as 100%, adding to capacity constraints and port congestion as importers increased orders to avoid increasing tariff fees.
The U.S.-Mexico-Canada Agreement (USMCA) also continued to impact cross-border trade, particularly in the automotive industry, where evolving regulations posed challenges. As the year progressed, ongoing adjustments to trade duties and the expansion of Section 301 exclusions raised concerns about the long-term impacts on global supply chains.
A significant regulatory development occurred on December 20, 2024, when Mexico terminated aspects of its IMMEX program that previously allowed U.S. apparel and textile importers to avoid duties by utilizing Mexican warehouses for fulfillment. The decree, announced by President Claudia Sheinbaum and published in the Federal Official Gazette, restricted the temporary importation of entire categories of apparel and textiles under the program. This included a temporary 35% increase in import tariffs on 138 HTS codes for finished products and a 15% increase on 17 HTS codes for textiles. Exceptions were made for certain fabric cuts used in garment making, but the overall impact has been significant for U.S. e-commerce brands and the logistics industry.
Additionally, the European Union’s proactive stance on forced labor in supply chains led to new regulations to eliminate forced labor in the sourcing process. This move mirrored similar efforts in the U.S., particularly the continued implementation of the Uyghur Forced Labor Prevention Act (UFLPA), which remained a significant driver of regulatory action both domestically and internationally.
LOOKING AHEAD
The trends of 2024 highlight an industry rapidly evolving to meet both challenges and new opportunities. As we move into 2025, the freight industry will continue to be shaped by the implementation of new regulations, the rise of nearshoring, and the ongoing push for sustainability. The industry’s ability to capitalize on these shifts will play a key role in driving growth and innovation in the year ahead.
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