SBA's Freight Market Update: August 28, 2025
This week: U.S. DOT threatens states for not enforcing English language proficiency standards; Global shipping is adjusting routes ahead of extra U.S. port fees; International postal operators are suspending their services into the U.S.
Current Critical Industry Trends
The U.S. Department of Transportation is threatening to withhold funding from three states if they do not enforce English language proficiency standards for commercial drivers. These measures come following a deadly crash involving a tractor-trailer and a minivan in Florida. A review revealed three states violated federal standards by allowing this driver to be on the road.
Canadian Prime Minister Mark Carney announces funding for infrastructure improvements at the Port of Churchill. The port is North America’s only deepwater Arctic port accessible by rail. Manitoba Premier Wab Kinew supports the plan, highlighting its potential to expand trade with Europe and strengthen nation-building infrastructure.
Ocean
Global shipping is adjusting routes ahead of extra U.S. port fees on China-linked cargo in October. OOCL and COSCO have launched transpacific services that bypass the U.S., routing cargo to Mexico instead. Maersk and others are considering avoiding U.S. trades for Chinese-built vessels entirely.
Ports
The ‘Invest in Kerala Initiative’ has launched a landmark project to transform Kerala into a logistic and industrial hub. The 70-acre park aims to cut transportation costs, support just-in-time operations and boost export capacity. The investment will boost local employment, drive economic growth and create opportunities for SMEs within the supply chain ecosystem.
As of this week, Turkish authorities have banned Israeli-linked vessels from entering the country’s ports. These restrictions have been added on top of the current trade ban first announced in May 2024. The Ankara government continues to add restrictions as a form of protest against Israel’s war in Gaza.
International
Multiple international postal operators are suspending their services into the U.S. following the announcement of duties on low-value parcel imports. Many operators have clarified that the suspension is due to uncertain guidelines and the short window between announcement and implementation. It’s unclear how long it will take each operator to adapt to the measures, but some countries, like the U.K., may adapt quicker than others.
Canada is beginning talks with Germany to supply liquefied natural gas, aiming to meet growing European demand. The two countries plan to expand energy collaboration, including a transatlantic hydrogen trade corridor, with Canada supporting port and infrastructure investments. Officials see potential for LNG exports from eastern Canada, though no projects are yet commercially ready.
Trucking
Tariffs and trade uncertainty were the focus of a recent industry webinar. Analysts noted how fluctuating tariffs have disrupted imports, complicated trucking, and freight planning. Shifts in import volumes from China and changes in port activity are affecting trucking demand. Analysts expect slow freight growth, soft consumer spending, and gradual trucking market improvements through 2025.
Rail
Berkshire Hathaway will not bid for CSX or Norfolk Southern. Chairman Warren Buffett instead suggested BNSF Railway focus on strengthening its ties with CSX to capture growth opportunities without the risks of a merger.
New Jersey is accepting applications for its 2026 Rail Freight Assistance Program. The program provides up to 90% funding for projects that enhance rail service availability, eliminate missing links to port facilities, and upgrade trackage to a 286,000-pound load capacity. Applications for this assistance program are due October 10, 2025.
Air
Greenville-Spartanburg Airport District has signed a partnership agreement with Germany’s Frankfurt-Hahn Airport. The collaboration will focus on expanding air cargo operations while sharing expertise in operations, safety, technology, sustainability, and customer service. The goal is to strengthen cargo flows between South Carolina and Europe.
Technology
More than 60 Iranian vessels had their communications disabled in a cyberattack. The attack targeted 39 oil tankers and 25 cargo ships. Hackers shut down satellite communications software, cutting ship-to-shore links and AIS tracking.
Other
A fire and explosions at the Port of Hamburg injured six and forced road closures, disrupting inland freight. Even after the main blaze was contained, containers reignited, causing further explosions and delays. As of Wednesday, port access remains restricted as firefighting efforts continue.
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As always, SBA’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 SBA can do for you. Contact us!