SBA's Freight Market Update: June 26, 2025
This week: GPS jamming incidents in the Strait of Hormuz are raising serious security concerns for vessels; Canada is preparing to raise tariffs on U.S. steel and aluminum by July 21 if no trade deal is reached; A major North American trade route is getting an upgrade.
Current Critical Industry Trends
GPS jamming incidents in the Strait of Hormuz are raising serious security concerns for vessels navigating this vital oil route. The disruptions, believed linked to Iranian electronic warfare, are complicating navigation and increasing risks. At the same time, many insurance underwriters are refusing to cover ships linked to the U.S., Israel, or U.K., citing heightened geopolitical dangers. Despite a recent ceasefire announcement in the region, ongoing violations and missile activity continue to fuel uncertainty, keeping shipping companies on edge.
Canada is preparing to raise tariffs on U.S. steel and aluminum by July 21 if no trade deal is reached. The move comes as a 90-day U.S. tariff pause nears its end and follows the U.S. doubling tariffs to 50% earlier this month. Canada also plans new measures to shield its domestic industry, including import quotas and limits on federal procurement, as talks between the two countries continue.
Ocean
Canopée has logged two years at sea, showing wind-assisted cargo shipping can deliver. Fitted with four automated OceanWings, the Ariane rocket program vessel now saves up to 2.2 tonnes of fuel per sail daily and maintains 99.6% uptime. Software upgrades are driving even stronger results, as operators prepare to scale the tech to larger ships.
Ports
RSGT is expanding beyond containers with four new BOT concessions along Saudi Arabia’s Red Sea coast. The 20-year agreements cover terminals in Jeddah, Yanbu, and Jazan, adding quay and terminal space. This move supports Vision 2030 and positions RSGT as a key player in regional and global logistics across all cargo types.
International
A major North American trade route is getting an upgrade. Freight traffic between Laredo, Texas, and Monterrey, Mexico will benefit from the newly approved $10 billion Intelligent Freight Transportation System, designed to streamline cross-border logistics and modernize infrastructure.
Trucking
The Saskatchewan Trucking Association seeks government support in training new drivers. As the province sees more than half of truck drivers over the age of 45 the lack of new drivers is alarming. To entice new drivers to the field the STA wants to lessen the financial burden to those entering the trucking industry.
Rail
U.S. freight rail traffic dips slightly in Week 24 of 2025. Coal led growth among commodities, while petroleum and related products saw the largest decline. Despite the weekly drop, year-to-date freight volumes remain up overall.
Air
Philippines airport sees surge in cargo shipments. Clark International Airport reported a 100% increase in freight volumes in the first five months of 2025. Growth was fueled by e-commerce shipments chartered by China-based airlines.
Technology
Texas DOT is embracing AI across the agency, as outlined in its newly released strategic plan. The plan emphasizes integrating advanced analytics and intelligent systems into operations and the broader transportation network. Cybersecurity will be a critical focus throughout implementation to ensure safe and secure deployment.
Other
Today’s logistics leaders face a tough balance: meeting rising customer expectations while cutting costs and driving growth. Successful companies avoid trade-offs by taking a holistic, end-to-end view and treating the supply chain as a strategic advantage. Dive into the seven core principles that set them apart.
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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!