This week, severe winter storms and a Delta jet crash at Toronto Pearson Airport disrupted air cargo and parcel deliveries across North America, while trucking companies braced for heightened immigration enforcement under new Trump administration policies. The Federal Reserve held interest rates steady amid concerns that Trump’s proposed tariffs could fuel inflation and delay future cuts. The Port of Los Angeles saw record-breaking January volumes as importers rushed to move goods ahead of anticipated tariff hikes. Meanwhile, ocean carriers continued to divert vessels around southern Africa due to instability in the Red Sea, and Trump’s expansionist maritime policies put U.S. shipping interests in the spotlight. U.S. rail traffic posted a modest gain, with intermodal volumes rising despite a decline in carloads. Read the full articles below.
Weekly Freight Report: February 21, 2025
February 21st, 2025
Severe Weather, Delta Crash Disrupt Air Shipments in U.S. and Canada
Severe winter storms and a Delta jet crash at Toronto Pearson Airport have caused widespread air cargo and parcel delivery delays across North America, disrupting operations for FedEx, UPS, and Air Canada while limiting flight capacity at major hubs.
Trucking Braces for Immigration Crackdowns
New Trump administration executive orders aimed at tightening immigration enforcement could lead to increased scrutiny, delays, and higher costs for trucking companies, independent contractors, and owner-operators, particularly those involved in cross-border transportation.
Fed Officials Are Worried About Tariffs’ Impact on Inflation and See Rate Cuts on Hold
Federal Reserve officials agreed to keep interest rates steady in January, expressing concern that President Trump’s proposed tariffs could drive inflation higher and potentially delay future rate cuts.
SoCal Ports Saw Record January Ahead of Trump Tariffs
The Port of Los Angeles recorded its busiest January ever as importers rushed to move goods ahead of anticipated tariff hikes from the Trump administration, with container volumes rising 8% compared to last year.
No Clear Timeline for Red Sea Return as Carriers Face Rising Insurance Costs
Ocean carriers remain reluctant to return to the Red Sea and Suez Canal without a “full and permanent” ceasefire between Israel and Hamas, as ongoing instability and rising insurance costs continue to force vessel diversions around southern Africa.
Trump’s Expansionist Worldview Puts U.S. Maritime Interests in Spotlight
President Trump’s expansionist approach to maritime policy aims to limit Chinese and Russian influence in the Western Hemisphere, with early moves focusing on Arctic security, Greenland, Canada, and increased pressure on Panama.
U.S. Weekly Rail Traffic Shows Slight Gain Over 2024
U.S. rail traffic saw a slight 1.5% year-over-year increase for the week ending Feb. 15, driven by a 7% rise in intermodal volume despite a 4.8% decline in carloads, while North American rail traffic overall dipped 1.2% due to declines in Canadian and Mexican rail volumes.
