FREIGHT MARKET UPDATE | WEEK 49 | 2024

The Week 49 freight market continues to navigate a challenging climate. Equipment shortages continue to pose challenges for U.S. ports, particularly on the West Coast. Canadian ports also remain congested as teams work through backlogs caused by the extended labor strike. Meanwhile, U.S. analysts project that the incoming administration’s proposed tariff increases could impact trade volumes.

Labor negotiations remain a concern, as discussions between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled. With the current contract set to expire in mid-January 2025, the potential for a strike poses a significant risk of disruption to critical U.S. East Coast and Gulf Coast ports.

Across the Atlantic, the European Union’s efforts to reduce carbon emissions in transport are entering a transformative phase. Starting January 1, 2025, the expansion of the Emissions Trading System (ETS) will require shipping companies to purchase allowances for 70% of their greenhouse gas (GHG) emissions, up from 40% in 2024. This phased plan aims to reach 100% by 2026. With carriers already reporting sharp increases in ETS surcharges, shippers should prepare for significant cost implications. Simultaneously, stricter EU fuel regulations are pushing carriers toward more expensive, lower-emission fuels, further raising operational costs and potentially impacting freight rates globally.

Read more about the potential impact the European Union’s ETS impact on global trade here: RISING EU SHIPPING COSTS: 2025 ETS EXPANSION AND FUEL REGULATIONS WILL IMPACT SHIPPERS