<div class="phx-topic abstract-wrapper">After carriers implemented three general rate increases between June 1 and July 1, spot rates on Friday in the eastbound trans-Pacific remained stable for the second consecutive week.</div>

After carriers implemented three general rate increases between June 1 and July 1, spot rates on Friday in the eastbound trans-Pacific remained stable for the second consecutive week.

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<div>Spot rates on the eastbound trans-Pacific remained stable for the second consecutive week Friday as carriers look ahead to their next potential general rate increase (GRI) on Aug. 1 if US imports from Asia do not diminish.Carriers implemented almost four dozen blank sailings between early June and mid-July. A spike in imports from Asia consisting of seasonal merchandise, personal protective equipment (PPE), and goods that retailers required for inventory replenishment — coupled with canceled sailings — kept spot rates at <a>10-year highs</a>.David Bennett, president of the Americas at Global Express Services, told the <a>JOC Midyear Container Shipping Outlook Thursday</a> that...

Spot rates on the eastbound trans-Pacific remained stable for the second consecutive week Friday as carriers look ahead to their next potential general rate increase (GRI) on Aug. 1 if US imports from Asia do not diminish. Carriers implemented almost four dozen blank sailings between early June and mid-July. A spike in imports from Asia consisting of seasonal merchandise, personal protective equipment (PPE), and goods that retailers required for inventory replenishment — coupled with canceled sailings — kept spot rates at 10-year highs . David Bennett, president of the Americas at Global Express Services, told the JOC Midyear Container Shipping Outlook Thursday that capacity management by carriers in the largest US trade lane continues to prop up freight rates. Click to enlarge . “Carriers have really been aggressive. They kept capacity below demand,” Bennett said. Spot pricing from Shanghai to the US West Coast on Friday reached $2,794 per FEU, up 0.4 percent from last week and 68.4 percent from the same week in 2019, according to the Shanghai Containerized Freight Index published under the JOC Shipping & Logistics Pricing Hub . The East Coast spot rate of $3,334 per FEU was up 1.1 percent from last week and 16.4 percent year over year. Carriers last month filed advance notice with the Federal Maritime Commission for rate increases of as much $1,000 per FEU for July 15. However, the West Coast spot rate increased only $11 and the East Coast rate increased $37 from last week. But carriers are optimistic they will retain a larger percentage of the GRIs pre-filed for Aug. 1, based on current market conditions in the eastbound trans-Pacific and their success in implementing three GRIs in June . “The key thing right now is the strength of the market,” a container carrier spokesperson who asked not to be identified told JOC.com Friday. He said the carrier’s internal analysis calls for a strong third quarter for import volumes. US imports of PPE and back-to-school merchandise have been robust, Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation (NRF), told the JOC webcast. “Back-to-school is looking good, driven by electronics,” he said. By keeping capacity below demand, carriers have been able to roll shipments to subsequent voyages, unless the customers are willing to pay a “priority loading” charge to get their shipments on the vessels, Bennett said. That has led to a minimum of a one-week roll, but in some cases, shipments are rolled for two consecutive weeks, which has kept spot rates elevated, Bennett said. In his weekly newsletter for non-vessel operating common carriers (NVOs), Jon Monroe said vessel space out of China is expected to remain tight through the first week of August. Retailers and NVOs normally give carriers at least two weeks advance notice of their booking intentions. “We have heard some carriers say that they are expecting strong demand through September,” Monroe added. Bulk of blank sailings are over Given the forecasts, carriers are pulling back on blank sailings, Alan Murphy, CEO of Sea-Intelligence Maritime Consulting, said in his Sunday Spotlight newsletter this week. Carriers canceled 45 sailings from June 1 through mid-July, but so far have announced only 14 blanks from mid-July through August, he said. Click to enlarge . The peak shipping season in the eastbound trans-Pacific normally runs from August through October. The carrier executive said he expects the “stop-and-go” gyrations in the trade to continue for the rest of the summer, but shipments of holiday merchandise will pick up in the fall. There is too much uncertainty in the market right now due to the resurgence in COVID-19 cases in the United States, the impact of store reclosures in some regions, and the tariff situation in the US-China trade war, to confidently predict what the holiday shopping season will look like this year, Gold said. Global Port Tracker, which is published monthly by the NRF and Hackett Associates, in its July issue projected that year over year, US imports will decline 13.3 percent in August, 12.3 percent in September, 9.9 percent in October, and 0.6 percent in November. GTA Forecasting, a division of IHS Markit, projects US imports from Asia in calendar year 2020 will decline 7.6 percent from 2019. Gold said the picture for the rest of the year is unclear. “Retailers will be cautious,” he said. Contact Bill Mongelluzzo at bill.mongelluzzo@ihsmarkit.com and follow him on Twitter: @billmongelluzzo .

Container lines

Asia-US spot rates hold firm amid more signs of volume recovery

<div class="phx-topic abstract-wrapper">Artificial intelligence tools can help shippers automate tasks like entry filing and classification, but it’s unclear whether most importers want to take on that burden. </div>

Artificial intelligence tools can help shippers automate tasks like entry filing and classification, but it’s unclear whether most importers want to take on that burden.

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<div class="phx-topic">The advancement of artificial intelligence (AI)-based tools in global trade compliance, along with heightened demand for customs expertise due to rapid changes in US trade policy, is threatening to reshape the way shippers, customs brokers and US Customs and Border Protection interact with one another. It is likely the most significant shift in that set of relationships since security, rather than revenue collection, became the primary focus of US customs in the wake of the Sept. 11 terror attacks in 2001. Essentially, AI is being used by CBP to target violations in such a way that it is forcing shippers and customs brokers to adopt technology that helps account for increased scrutiny, and increased accuracy of that scrutiny. The Trump administration’s intense focus on tariffs as a tool to reorient the US economy is translating into more investment in enforcement of country-of-origin designations and product classifications, as well as other customs violations. ”The CBP budget was increased significantly, including for newer enforcement technology,” said Cindy Allen, CEO of consulting firm Trade Force Multiplier and a former customs executive with FedEx. Allen contends this will enable more targeted enforcement and investigations by CBP. “Customs brokers would be well-positioned to look at these same software and technology vendors and offer these services to their clients, especially the small to medium businesses who wouldn’t necessarily invest in this technology on their own,” she said. <h3>AI struggles with ‘gray’ </h3>While AI is everywhere these days, the reality is that it is not uniformly adept at all tasks. “AI at this stage is very good with the black and white analytics and validations, but it is not very good at the gray, and that is where the gray matter and expertise of licensed customs brokers is essential,” said Anand Raghavendran, chief product officer at KlearNow, a technology company that supports importers who want to self-file and those who need a customs broker to do so. In terms of the demands on brokers, Raghavendran said eliminating manual tasks is critical because extra capacity is needed to interpret and quickly implement changes in trade policy. “To remain competitive, brokers need to move past their traditional transactional roles and become much more digitally empowered,” he said. <h3>Plethora of options </h3>There’s no shortage of solutions from which customs brokers can choose. Companies founded over the last two years have taken advantage of underlying advancements in software development to build products faster, while established trade technology providers have developed AI tools to enhance their existing products. Exhibitors at the American Association of Exporters and Importers (AAEI) annual conference in late June were a testament to that proliferation, with so-called “digital customs brokers” interspersed with tools aimed at brokers, shippers and customs agencies. Those products tend to touch areas like entry creation automation or AI-powered classification determination. There has also been a rise in the number of digital brokers, basically traditional brokers built using modern software that’s intended to interface with customs more easily. “Technology is not making customs brokers redundant, it's making them resilient,” said Sam Basu, CEO and founder of customs software vendor Anchor AI. “Experienced brokers who have institutional knowledge and use technology to move faster and with far greater accuracy are ultimately CBP’s most dependable allies.” It seems implausible that customs brokers lose their value overnight, but the pressures on that segment of the industry are significant. Aside from technology promising more process efficiency, the current environment means brokers, trade consultants, and attorneys are overrun with demand for their services. <h3>Self-filing quandary </h3>There remains belief in some circles that over time more shippers will be empowered to self-file, or to use digital brokers instead of traditional ones. Basu, however, said digital-first brokers often focus on low-complexity, high-volume freight, and self-filing remains perilous for most importers. “It might sound appealing in theory, but the reality is that most importers don’t see it as a viable option,” Basu said. “Self-filing requires in-house trade compliance expertise, real-time awareness of regulatory changes, and the infrastructure to respond if something goes wrong, like a hold, audit, or penalty.” Most companies simply don’t have the appetite for that, he said, especially when the cost of a misclassification or missed regulation can far outweigh the savings of skipping a broker. However, Justin Sherlock, CEO of customs software startup Caspian, said there is an increasing appetite for self-filing. “Hiring in-house trade compliance experts has grown rapidly with recent trade policy, and so I expect demand for self-filing technology to grow as well,” he said. “Customs brokers will always have a strong footing in [the small and medium-sized business market], where teams depend on them for outsourced expertise. But among enterprises, brokers will be compared against a deeper bench of in-house capabilities." Allen agreed, saying that while most importers are going to rely even more on brokers given the speed of regulatory changes has quickened, “those that do invest in self-filing are usually larger companies that have done a cost/benefit analysis.” More transformational will be how AI is deployed, said Sherlock. "AI tools are raising the bar for what is expected of knowledge workers,” he said. “Customs brokers are increasingly expected to act as trade advisors. Accurate entry filing is becoming table stakes, despite it also being harder now than ever before. Executive teams are asking for integrated data, documents, and insights to manage near-daily changes to trade policy. So digitally native brokers that can provide this access will win." <h3>‘Human involvement’ </h3>Allen described the AI mandate on brokers as being similar in significance to when they had to first adjust to automation during the rollout of the Automated Commercial System (ACS) nearly four decades ago. Indeed, even as surging demand and technology advancements herald a new era of shipper-broker-CBP interaction, brokers remain confident they have an edge that will remain. “The intricacies of international trade regulations, evolving tariff mandates, and sudden executive orders lead to potential disputes regarding the legal information presented, often necessitating human involvement,” said JD Gonzalez, president of the National Customs Brokers and Forwarders Association of America (NCBFAA). “While technology can streamline certain processes, it is unlikely to fully replace the need for experienced customs brokers.” Where brokers invest is likely to be the determinant of their ability to adapt. Allen noted that brokers “who resisted the automation of ACS are no longer in operation.” Basu said the priorities should be on software that helps automate what slows a broker down, generally processes like entry generation or classification. But they should also invest in things that build client trust, he said. “They’re leaning into advisory roles by helping importers interpret policy changes, model duty impact, and prepare for audits,” Basu said. “This is how long-term loyalty is built.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

The advancement of artificial intelligence (AI)-based tools in global trade compliance, along with heightened demand for customs expertise due to rapid changes in US trade policy, is threatening to reshape the way shippers, customs brokers and US Customs and Border Protection interact with one another. It is likely the most significant shift in that set of relationships since security, rather than revenue collection, became the primary focus of US customs in the wake of the Sept. 11 terror attacks in 2001. Essentially, AI is being used by CBP to target violations in such a way that it is forcing shippers and customs brokers to adopt technology that helps account for increased scrutiny, and increased accuracy of that scrutiny. The Trump administration’s intense focus on tariffs as a tool to reorient the US economy is translating into more investment in enforcement of country-of-origin designations and product classifications, as well as other customs violations. ”The CBP budget was increased significantly, including for newer enforcement technology,” said Cindy Allen, CEO of consulting firm Trade Force Multiplier and a former customs executive with FedEx. Allen contends this will enable more targeted enforcement and investigations by CBP. “Customs brokers would be well-positioned to look at these same software and technology vendors and offer these services to their clients, especially the small to medium businesses who wouldn’t necessarily invest in this technology on their own,” she said. AI struggles with ‘gray’ While AI is everywhere these days, the reality is that it is not uniformly adept at all tasks. “AI at this stage is very good with the black and white analytics and validations, but it is not very good at the gray, and that is where the gray matter and expertise of licensed customs brokers is essential,” said Anand Raghavendran, chief product officer at KlearNow, a technology company that supports importers who want to self-file and those who need a customs broker to do so. In terms of the demands on brokers, Raghavendran said eliminating manual tasks is critical because extra capacity is needed to interpret and quickly implement changes in trade policy. “To remain competitive, brokers need to move past their traditional transactional roles and become much more digitally empowered,” he said. Plethora of options There’s no shortage of solutions from which customs brokers can choose. Companies founded over the last two years have taken advantage of underlying advancements in software development to build products faster, while established trade technology providers have developed AI tools to enhance their existing products. Exhibitors at the American Association of Exporters and Importers (AAEI) annual conference in late June were a testament to that proliferation, with so-called “digital customs brokers” interspersed with tools aimed at brokers, shippers and customs agencies. Those products tend to touch areas like entry creation automation or AI-powered classification determination. There has also been a rise in the number of digital brokers, basically traditional brokers built using modern software that’s intended to interface with customs more easily. “Technology is not making customs brokers redundant, it's making them resilient,” said Sam Basu, CEO and founder of customs software vendor Anchor AI. “Experienced brokers who have institutional knowledge and use technology to move faster and with far greater accuracy are ultimately CBP’s most dependable allies.” It seems implausible that customs brokers lose their value overnight, but the pressures on that segment of the industry are significant. Aside from technology promising more process efficiency, the current environment means brokers, trade consultants, and attorneys are overrun with demand for their services. Self-filing quandary There remains belief in some circles that over time more shippers will be empowered to self-file, or to use digital brokers instead of traditional ones. Basu, however, said digital-first brokers often focus on low-complexity, high-volume freight, and self-filing remains perilous for most importers. “It might sound appealing in theory, but the reality is that most importers don’t see it as a viable option,” Basu said. “Self-filing requires in-house trade compliance expertise, real-time awareness of regulatory changes, and the infrastructure to respond if something goes wrong, like a hold, audit, or penalty.” Most companies simply don’t have the appetite for that, he said, especially when the cost of a misclassification or missed regulation can far outweigh the savings of skipping a broker. However, Justin Sherlock, CEO of customs software startup Caspian, said there is an increasing appetite for self-filing. “Hiring in-house trade compliance experts has grown rapidly with recent trade policy, and so I expect demand for self-filing technology to grow as well,” he said. “Customs brokers will always have a strong footing in [the small and medium-sized business market], where teams depend on them for outsourced expertise. But among enterprises, brokers will be compared against a deeper bench of in-house capabilities." Allen agreed, saying that while most importers are going to rely even more on brokers given the speed of regulatory changes has quickened, “those that do invest in self-filing are usually larger companies that have done a cost/benefit analysis.” More transformational will be how AI is deployed, said Sherlock. "AI tools are raising the bar for what is expected of knowledge workers,” he said. “Customs brokers are increasingly expected to act as trade advisors. Accurate entry filing is becoming table stakes, despite it also being harder now than ever before. Executive teams are asking for integrated data, documents, and insights to manage near-daily changes to trade policy. So digitally native brokers that can provide this access will win." ‘Human involvement’ Allen described the AI mandate on brokers as being similar in significance to when they had to first adjust to automation during the rollout of the Automated Commercial System (ACS) nearly four decades ago. Indeed, even as surging demand and technology advancements herald a new era of shipper-broker-CBP interaction, brokers remain confident they have an edge that will remain. “The intricacies of international trade regulations, evolving tariff mandates, and sudden executive orders lead to potential disputes regarding the legal information presented, often necessitating human involvement,” said JD Gonzalez, president of the National Customs Brokers and Forwarders Association of America (NCBFAA). “While technology can streamline certain processes, it is unlikely to fully replace the need for experienced customs brokers.” Where brokers invest is likely to be the determinant of their ability to adapt. Allen noted that brokers “who resisted the automation of ACS are no longer in operation.” Basu said the priorities should be on software that helps automate what slows a broker down, generally processes like entry generation or classification. But they should also invest in things that build client trust, he said. “They’re leaning into advisory roles by helping importers interpret policy changes, model duty impact, and prepare for audits,” Basu said. “This is how long-term loyalty is built.” Contact Eric Johnson at eric.johnson@spglobal.com .

Supply chain

Logistics Technology News

Automation, tariff pressures put onus on customs brokers to adapt

<div class="phx-topic abstract-wrapper">Despite significant injections of reefer capacity in early 2025, US cold chain stakeholders say they continue to face equipment scarcity issues.</div>

Despite significant injections of reefer capacity in early 2025, US cold chain stakeholders say they continue to face equipment scarcity issues.

<div class="phx-topic">The production of refrigerated containers globally is at its highest level in at least a decade, but that hasn’t been enough to relieve reefer scarcity amid increased maintenance needs, retirement of older equipment, elevated demand on some regional trades and rising market volatility, US market stakeholders say. Figures prepared for the Journal of Commerce by maritime consultancy Drewry show 93,000 TEUs of reefer equipment entered the global market in the first quarter of 2025, up almost 145% from the same period of 2024. “On average, over the last 10 years, the industry has produced somewhere between 275,000 to 300,000 TEUs of reefer equipment annually,” said Bob Sappio, CEO of refrigerated container lessor SeaCube. “This year, we’re expecting there to be closer to 350,000 TEUs.” Nearly all reefer containers are produced by three Chinese companies: China International Marine Containers, Dong Fang International Containers and Guangdong FUWA Engineering Group Co. According to Sappio, the lead time for ordering new 40-foot reefer containers has doubled to about four months. Costs are also going up, as recent steel tariffs raise prices of any equipment purchases made in the US. <h3>A hot cold chain </h3>Extreme heat is one factor driving up equipment problems. Amanda Oren, vice president of industry strategy for grocery at supply chain planning company RELEX, said that they’ve seen more disruptions due to high temperatures. “The East Coast has been [extremely hot] ...” Oren told the Journal of Commerce. “It’s impacting the supply chain at large for refrigerated product.” According to the National Oceanic and Atmospheric Administration (NOAA), 13 heat records were broken in the 30 days leading up to July 12, with another 14 heat records tied. Many of those were concentrated on the East Coast. A forwarder focused on temperature-controlled shipments told the Journal of Commerce that reefer equipment is put under more stress in high temperatures, and many locations won’t load a reefer until it’s cooled. “Cooling an empty container full of hot air is no easy task,” said the forwarder. “When the [equipment] is put under this kind of stress, any weak points can become fail points, and we see an uptick in maintenance issues and failures when we see temperatures like we have.” As maintenance needs are magnified by elevated temperatures, some aging equipment is already due for retirement, said Sappio. A significant portion of the global reefer fleet is 11 to 14 years old, he said, meaning it’s close to being withdrawn from service. <h3>US demand cooled in May </h3>The US moved record-setting reefer volumes last year, reaching a total of 467,700 TEUs, up 17% compared with 2023, according to PIERS, a sister company of the Journal of Commerce within S&amp; P Global. This May, however, PIERS data shows US reefer exports at 56,254 TEUs, down nearly 20% compared with last year. Similarly, May reefer imports were down 5.4% on the year at 156,733 TEUs, the lowest monthly total since August 2023. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4ef4b851-58b1-4fdd-b7c5-ad0e1717a1f9"></dynamic-object></div>Oren says tariffs are driving some shippers to diversify supply chains and re-source cargo, further contributing to instability. “We’re starting to see product being sourced that used to come from China looking at different sourcing options, like Southeast Asia or South Korea,” she said. Still, the global reefer market is predicted to grow about 2% annually through 2029, according to figures from Drewry shared during a reefer webinar last month. “The reefer trade is growing okay, but obviously there [are] some areas which are growing faster than others,” Philip Gray, Drewry’s senior associate of reefer shipping, said during the webinar. Oceania to Asia, Central America to North America and North Europe to Asia were the lanes with the most significant growth last year, according to the webinar. But the lack of predictability, sources say, is making it harder for carriers to accurately position equipment to meet the shifting demands of different trades. “Uncertainty and volatility are just going to be our companions, certainly for [the rest] of this year,” said Sappio. “It’s difficult under normal circumstances to accurately forecast, but under these circumstances, it’s nearly impossible.” Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>. </div>

The production of refrigerated containers globally is at its highest level in at least a decade, but that hasn’t been enough to relieve reefer scarcity amid increased maintenance needs, retirement of older equipment, elevated demand on some regional trades and rising market volatility, US market stakeholders say. Figures prepared for the Journal of Commerce by maritime consultancy Drewry show 93,000 TEUs of reefer equipment entered the global market in the first quarter of 2025, up almost 145% from the same period of 2024. “On average, over the last 10 years, the industry has produced somewhere between 275,000 to 300,000 TEUs of reefer equipment annually,” said Bob Sappio, CEO of refrigerated container lessor SeaCube. “This year, we’re expecting there to be closer to 350,000 TEUs.” Nearly all reefer containers are produced by three Chinese companies: China International Marine Containers, Dong Fang International Containers and Guangdong FUWA Engineering Group Co. According to Sappio, the lead time for ordering new 40-foot reefer containers has doubled to about four months. Costs are also going up, as recent steel tariffs raise prices of any equipment purchases made in the US. A hot cold chain Extreme heat is one factor driving up equipment problems. Amanda Oren, vice president of industry strategy for grocery at supply chain planning company RELEX, said that they’ve seen more disruptions due to high temperatures. “The East Coast has been [extremely hot] ...” Oren told the Journal of Commerce. “It’s impacting the supply chain at large for refrigerated product.” According to the National Oceanic and Atmospheric Administration (NOAA), 13 heat records were broken in the 30 days leading up to July 12, with another 14 heat records tied. Many of those were concentrated on the East Coast. A forwarder focused on temperature-controlled shipments told the Journal of Commerce that reefer equipment is put under more stress in high temperatures, and many locations won’t load a reefer until it’s cooled. “Cooling an empty container full of hot air is no easy task,” said the forwarder. “When the [equipment] is put under this kind of stress, any weak points can become fail points, and we see an uptick in maintenance issues and failures when we see temperatures like we have.” As maintenance needs are magnified by elevated temperatures, some aging equipment is already due for retirement, said Sappio. A significant portion of the global reefer fleet is 11 to 14 years old, he said, meaning it’s close to being withdrawn from service. US demand cooled in May The US moved record-setting reefer volumes last year, reaching a total of 467,700 TEUs, up 17% compared with 2023, according to PIERS, a sister company of the Journal of Commerce within S& P Global. This May, however, PIERS data shows US reefer exports at 56,254 TEUs, down nearly 20% compared with last year. Similarly, May reefer imports were down 5.4% on the year at 156,733 TEUs, the lowest monthly total since August 2023. Oren says tariffs are driving some shippers to diversify supply chains and re-source cargo, further contributing to instability. “We’re starting to see product being sourced that used to come from China looking at different sourcing options, like Southeast Asia or South Korea,” she said. Still, the global reefer market is predicted to grow about 2% annually through 2029, according to figures from Drewry shared during a reefer webinar last month. “The reefer trade is growing okay, but obviously there [are] some areas which are growing faster than others,” Philip Gray, Drewry’s senior associate of reefer shipping, said during the webinar. Oceania to Asia, Central America to North America and North Europe to Asia were the lanes with the most significant growth last year, according to the webinar. But the lack of predictability, sources say, is making it harder for carriers to accurately position equipment to meet the shifting demands of different trades. “Uncertainty and volatility are just going to be our companions, certainly for [the rest] of this year,” said Sappio. “It’s difficult under normal circumstances to accurately forecast, but under these circumstances, it’s nearly impossible.” Contact Laura Robb at laura.robb@spglobal.com .

Maritime

Container Shipping News

Trans-Pacific

Cool Cargo News

Reefer fleet growth yet to show in availability of equipment

<div class="phx-topic abstract-wrapper">A bill reintroduced in the House of Representatives would require customs fees to be directed to covering building and other capital costs related to inspections. </div>

A bill reintroduced in the House of Representatives would require customs fees to be directed to covering building and other capital costs related to inspections.

<div class="phx-topic">US ports and shippers are asking Congress to rein in the costs of customs inspections at local ports of entry, throwing their support behind legislation that would require processing fees to cover expenses related to inspection facilities. In a letter sent last week to six of the bill’s original co-sponsors in the House of Representatives, the American Association of Port Authorities (AAPA) and 26 other groups asked for renewed support of the Customs and Border Protection (CBP) Space Act (Securing Ports and America’s Commerce and Economy). First introduced last year, two of the original co-sponsors, Florida Rep. Laurel Lee and Washington Rep. Marie Gluesenkamp, plan to bring the bill before Congress again this term. The CBP Space Act would require that the merchandise processing fee, which is based on the value of goods imported and can range between $32 and $634, would also cover any capital costs for inspection and other facilities for US customs officers at ports of entry. The fee currently just covers the salaries and other expenses for maintaining officers in the field. The AAPA and other signatories said in the letter that local customs offices have been asking ports to pay for “carpeting, heated driveways, unused computers, TVs, office renovations, and other capital improvements unrelated to cargo and passenger inspections.” “Many public port authorities are run by local or state governments with small, fixed budgets and limited discretionary spending,” the letter said. “Yet CBP has presented them with bills that often total hundreds of thousands of dollars, and in some cases, exceed $1 million.”It said CBP threatens to slow walk inspections or reduce local staff if the bills are not paid. The CBP Space Act would, if passed, directly prohibit the agency from asking ports to fund “administrative, training, or recreation facilities” at a port of entry. The bill would also require the CBP to provide an annual report to Congress on how the agency is spending the merchandise processing fee and require CBP to work with the Treasury Department on setting a fee that would cover capital costs for local facilities.Carlos Buqueras, the executive director of SeaPort Manatee along Florida’s Gulf Coast, said in the letter that it’s Congress’ responsibility to adequately fund CBP’s mission and that the legislation “puts Congress’ long-held directives into law … [and] allows CBP officers to restore their full focus to the nation’s economy and security.”Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

US ports and shippers are asking Congress to rein in the costs of customs inspections at local ports of entry, throwing their support behind legislation that would require processing fees to cover expenses related to inspection facilities. In a letter sent last week to six of the bill’s original co-sponsors in the House of Representatives, the American Association of Port Authorities (AAPA) and 26 other groups asked for renewed support of the Customs and Border Protection (CBP) Space Act (Securing Ports and America’s Commerce and Economy). First introduced last year, two of the original co-sponsors, Florida Rep. Laurel Lee and Washington Rep. Marie Gluesenkamp, plan to bring the bill before Congress again this term. The CBP Space Act would require that the merchandise processing fee, which is based on the value of goods imported and can range between $32 and $634, would also cover any capital costs for inspection and other facilities for US customs officers at ports of entry. The fee currently just covers the salaries and other expenses for maintaining officers in the field. The AAPA and other signatories said in the letter that local customs offices have been asking ports to pay for “carpeting, heated driveways, unused computers, TVs, office renovations, and other capital improvements unrelated to cargo and passenger inspections.” “Many public port authorities are run by local or state governments with small, fixed budgets and limited discretionary spending,” the letter said. “Yet CBP has presented them with bills that often total hundreds of thousands of dollars, and in some cases, exceed $1 million.” It said CBP threatens to slow walk inspections or reduce local staff if the bills are not paid. The CBP Space Act would, if passed, directly prohibit the agency from asking ports to fund “administrative, training, or recreation facilities” at a port of entry. The bill would also require the CBP to provide an annual report to Congress on how the agency is spending the merchandise processing fee and require CBP to work with the Treasury Department on setting a fee that would cover capital costs for local facilities. Carlos Buqueras, the executive director of SeaPort Manatee along Florida’s Gulf Coast, said in the letter that it’s Congress’ responsibility to adequately fund CBP’s mission and that the legislation “puts Congress’ long-held directives into law … [and] allows CBP officers to restore their full focus to the nation’s economy and security.” Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Transport, Trade and Regulation News

Ports ask Congress to help shift the costs of operating local customs offices

<div class="phx-topic abstract-wrapper">Some customers and competitors were surprised by the timing of the surcharges, which are typically implemented in August or September, if at all, and only after volume spikes.</div>

Some customers and competitors were surprised by the timing of the surcharges, which are typically implemented in August or September, if at all, and only after volume spikes.

<div class="phx-topic">J.B. Hunt Transport Services is defending its decision to impose surcharges of up to $1,500 per container on some shippers moving goods from Southern California, saying the fees are necessary to maintain service levels during an unpredictable peak season. <a href="https://www.joc.com/article/jb-hunt-hits-some-shippers-with-big-surcharges-in-southern-california-6043454">The surcharges</a>, which apply to certain retail, appliance and electronics shippers, are intended to ensure J.B. Hunt has the equipment and personnel in place if demand increases ahead of the holiday season, the company said during its quarterly earnings call late Tuesday. The surcharges are a tool, in a way, for J.B. Hunt to regulate how much unplanned freight it accepts during the busiest weeks of the year, ensuring there are enough drivers and containers to haul shipments for all its customers in Southern California. The surcharges went into effect July 13. “The last thing our industry can do is fail this shipping community at a time when the demand upticks,” Darren Field, president of J.B. Hunt’s intermodal division, said on the earnings call. “We have a handful of customers that said, ‘Hey, I might have extra business in July.’ We had many customers say, ‘I’m going to have the same peak I had last year’ ... and we just wanted a plan so we’re not caught by surprise.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="69b9e75c-ee79-4b00-9c29-ef0bc47d2af2"></dynamic-object></div>Meanwhile, maintaining strong service is important as J.B. Hunt and rail partner BNSF Railway performed above average in the second quarter, according to indicators. BNSF’s average Z-score, a proprietary Journal of Commerce calculation factoring train speeds, trains being held and idle laden railcars, has been positive for 13 consecutive weeks based on data filed with the US Surface Transportation Board (STB). Positive Z-scores indicate the railroad is outperforming its own history, while negative scores indicate underperformance. J.B. Hunt was also named the best intermodal provider by 41.5% of shippers in the latest Journal of Commerce Intermodal Service Scorecard, the highest percentage among its peers. The survey of more than 240 shippers was conducted between May 1 and June 30. The company regularly topped <a href="https://www.joc.com/resources/special-reports/domestic-intermodal-service-scorecard">prior surveys</a> as well, including in categories such as equipment availability, on-time pickups and on-time deliveries. Executing service becomes harder when week-over-week volumes become volatile. “This added complexity, lack of accurate forecast and potential for volatility, is why our peak season surcharge programs are starting earlier this year,” Spencer Frazier, executive vice president of sales for J.B. Hunt, said on the call. “Regardless of customer strategy and the shape of peak season, we will be ready to meet their demand when it occurs.” <h3>Some customers will look to skirt the charges </h3>Some J.B. Hunt customers and competitors were surprised by the timing of the surcharges. Peak season surcharges (PSSs) are typically implemented in August or September, if at all, and only after volume spikes. BNSF hauled more than 18,000 ocean containers during the week ending July 13, the highest since late January, according to data platform RailState. However, the railroad only hauled about 12,000 domestic containers during the same week, on par with its rolling 26-week average covering the first half of the year. J.B. Hunt implemented the surcharges after discussions with shippers over the last three weeks, customers told the Journal of Commerce. The fees apply only when a shipper out of Southern California exceeds its weekly contracted allotment, but the added costs can be substantial. “At $1,500 extra, our [competing] truckload rates become far cheaper,” said one J.B. Hunt customer who did not want to be identified. “That’s the trifecta of bad: higher rates, slower transit, and increased risk of theft.” Customers have also questioned whether J.B. Hunt incurs $1,500 in costs to reposition equipment to Southern California, or whether the surcharge reflects an attempt by J.B. Hunt to compensate for what it could not obtain during earlier contract negotiations. A second J.B. Hunt customer said they would take steps to avoid the fees. “We will look for opportunities not to pay the $1,500. That’s the short answer,” the source said. “We feel really confident that we’ll be successful.” Shippers said there are multiple ways to sidestep the charges, especially when only a few containers exceed weekly contractual limits. Some may shift overflow freight to J.B. Hunt’s competitors, both asset-based and non-asset-based intermodal providers. Others may opt for truckload carriers on the spot market, particularly as trucking rates remain low. Still others may delay non-urgent cargo by a few days, taking advantage of the weekly reset on allotments. It is not yet clear whether J.B. Hunt’s rivals will follow suit on the surcharges. While most major intermodal providers imposed PSSs last year, none set rates above $1,000 per container, except J.B. Hunt. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

J.B. Hunt Transport Services is defending its decision to impose surcharges of up to $1,500 per container on some shippers moving goods from Southern California, saying the fees are necessary to maintain service levels during an unpredictable peak season. The surcharges , which apply to certain retail, appliance and electronics shippers, are intended to ensure J.B. Hunt has the equipment and personnel in place if demand increases ahead of the holiday season, the company said during its quarterly earnings call late Tuesday. The surcharges are a tool, in a way, for J.B. Hunt to regulate how much unplanned freight it accepts during the busiest weeks of the year, ensuring there are enough drivers and containers to haul shipments for all its customers in Southern California. The surcharges went into effect July 13. “The last thing our industry can do is fail this shipping community at a time when the demand upticks,” Darren Field, president of J.B. Hunt’s intermodal division, said on the earnings call. “We have a handful of customers that said, ‘Hey, I might have extra business in July.’ We had many customers say, ‘I’m going to have the same peak I had last year’ ... and we just wanted a plan so we’re not caught by surprise.” Meanwhile, maintaining strong service is important as J.B. Hunt and rail partner BNSF Railway performed above average in the second quarter, according to indicators. BNSF’s average Z-score, a proprietary Journal of Commerce calculation factoring train speeds, trains being held and idle laden railcars, has been positive for 13 consecutive weeks based on data filed with the US Surface Transportation Board (STB). Positive Z-scores indicate the railroad is outperforming its own history, while negative scores indicate underperformance. J.B. Hunt was also named the best intermodal provider by 41.5% of shippers in the latest Journal of Commerce Intermodal Service Scorecard, the highest percentage among its peers. The survey of more than 240 shippers was conducted between May 1 and June 30. The company regularly topped prior surveys as well, including in categories such as equipment availability, on-time pickups and on-time deliveries. Executing service becomes harder when week-over-week volumes become volatile. “This added complexity, lack of accurate forecast and potential for volatility, is why our peak season surcharge programs are starting earlier this year,” Spencer Frazier, executive vice president of sales for J.B. Hunt, said on the call. “Regardless of customer strategy and the shape of peak season, we will be ready to meet their demand when it occurs.” Some customers will look to skirt the charges Some J.B. Hunt customers and competitors were surprised by the timing of the surcharges. Peak season surcharges (PSSs) are typically implemented in August or September, if at all, and only after volume spikes. BNSF hauled more than 18,000 ocean containers during the week ending July 13, the highest since late January, according to data platform RailState. However, the railroad only hauled about 12,000 domestic containers during the same week, on par with its rolling 26-week average covering the first half of the year. J.B. Hunt implemented the surcharges after discussions with shippers over the last three weeks, customers told the Journal of Commerce. The fees apply only when a shipper out of Southern California exceeds its weekly contracted allotment, but the added costs can be substantial. “At $1,500 extra, our [competing] truckload rates become far cheaper,” said one J.B. Hunt customer who did not want to be identified. “That’s the trifecta of bad: higher rates, slower transit, and increased risk of theft.” Customers have also questioned whether J.B. Hunt incurs $1,500 in costs to reposition equipment to Southern California, or whether the surcharge reflects an attempt by J.B. Hunt to compensate for what it could not obtain during earlier contract negotiations. A second J.B. Hunt customer said they would take steps to avoid the fees. “We will look for opportunities not to pay the $1,500. That’s the short answer,” the source said. “We feel really confident that we’ll be successful.” Shippers said there are multiple ways to sidestep the charges, especially when only a few containers exceed weekly contractual limits. Some may shift overflow freight to J.B. Hunt’s competitors, both asset-based and non-asset-based intermodal providers. Others may opt for truckload carriers on the spot market, particularly as trucking rates remain low. Still others may delay non-urgent cargo by a few days, taking advantage of the weekly reset on allotments. It is not yet clear whether J.B. Hunt’s rivals will follow suit on the surcharges. While most major intermodal providers imposed PSSs last year, none set rates above $1,000 per container, except J.B. Hunt. Contact Ari Ashe at ari.ashe@spglobal.com .

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North-American rail

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J.B. Hunt says surcharges necessary to maintain peak season service

<div class="phx-topic abstract-wrapper">With more ships expected to divert to the longer Cape of Good Hope route around southern Africa, shippers could find it more difficult to secure capacity for project cargoes. </div>

With more ships expected to divert to the longer Cape of Good Hope route around southern Africa, shippers could find it more difficult to secure capacity for project cargoes.

<div class="phx-topic">Multipurpose vessel (MPV) availability could tighten globally in the near term due to a whole-fleet shift away from the Red Sea, just as breakbulk and project cargo demand ramps up. <a href="https://www.joc.com/article/new-houthi-attacks-likely-kill-hopes-of-shipping-returning-to-red-sea-this-year-6040923">Last week’s attacks</a> of the Liberian-flagged, Greek-owned Magic Sea and the Greek-operated, Liberia-flagged Eternity C by Houthis in the Red Sea are expected to prompt MPV operators that were still sailing through the Red Sea to re-evaluate the safety of the route. Kyriacos Panayides, CEO of MPV ship operator AAL Shipping, said that after the most recent attacks, more “non-western operators” are now considering the Cape of Good Hope route around southern Africa. “The Red Sea passage vessels on radar have reduced dramatically since last week, down to only ... [about] 30 vessels per day,” he told the Journal of Commerce. Market experts said the ship diversions could artificially reduce the number of MPVs available for breakbulk and project cargo loads in the short term as the entire fleet shifts to the longer Cape route. It could also reduce the impact of the two-tier MPV market that has developed over the past two years, where operators not targeted by Houthis continued to sail via the Red Sea, offering cheaper freight rates than MPV operators sailing via the Cape. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1e7f3686-4313-47cb-9fe9-d40ac8e832e6"></dynamic-object></div>The longer sailing times for all shippers come on the back of a surge of cargo activity in the second quarter, where shippers withheld cargoes rushed to move orders before a reprieve for US tariffs expired, according to Ritesh Nair, head of projects at project cargo forwarder Rhenus Projects Logistics. The 90-day tariff reprieve for the majority of countries announced by the US was due to end on July 9. However, the Trump administration decided to delay its deadline for implementing reciprocal tariffs to Aug. 1. “We expect Q3/Q4 to be steady and then to pick up from Q2 2026,” Nair told the Journal of Commerce. “Vessel operators are hesitating taking vessels on time charter and cargo flows are shifting a bit, making the whole market super volatile and unsecure.” Nair added that it is “difficult to budget” in the current breakbulk and project cargo market. <h3>Misinformation, uncertainty are rife </h3>Nair also spoke of misinformation circling on risk mitigation strategies related to the US trade uncertainty. Giving the example of Free Trade Zones and bonded warehouses, he said that clients were confused about the benefits of each. “FTZs allow you to defer duties, but with bonded warehouses you can hedge against a future duty rate,” he said. “How willing is a customer or their finance team to hedge?” He added that space is drying up on bonded warehouses. In its July report, Toepfer Transport spoke of a “stagnation” in MPV charter rates, although acknowledged that the opportunity to achieve or outperform the index rate depends heavily on the trade region. On the demand side, Toepfer said some carriers have reported good utilization of tonnage, except in the trans-Atlantic trades. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ea382181-08cd-4298-912f-87c79836bcf7"></dynamic-object></div>The Toepfer Multipurpose Index (TMI) slipped 1% to $12,895 in June, although it is up 1.81% year over year. Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500-deadweight-ton (dwt) “F-Type” vessels with safe working loads of 240-360 metric tons, as reported to Toepfer by owners and operators. Toepfer did concede that some of the positive sentiment in the charter market was related to fixtures of F500 types, mainly newbuildings that are still to be delivered. Drewry’s General Cargo Index also dropped slightly month over month in June, down 0.7% to 137, while its Project Cargo Transport Index slipped 0.5% to 169 over the same period. The base point for both indexes is 100 starting in January 2019, meaning that the calculations begin from that point onward. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Multipurpose vessel (MPV) availability could tighten globally in the near term due to a whole-fleet shift away from the Red Sea, just as breakbulk and project cargo demand ramps up. Last week’s attacks of the Liberian-flagged, Greek-owned Magic Sea and the Greek-operated, Liberia-flagged Eternity C by Houthis in the Red Sea are expected to prompt MPV operators that were still sailing through the Red Sea to re-evaluate the safety of the route. Kyriacos Panayides, CEO of MPV ship operator AAL Shipping, said that after the most recent attacks, more “non-western operators” are now considering the Cape of Good Hope route around southern Africa. “The Red Sea passage vessels on radar have reduced dramatically since last week, down to only ... [about] 30 vessels per day,” he told the Journal of Commerce. Market experts said the ship diversions could artificially reduce the number of MPVs available for breakbulk and project cargo loads in the short term as the entire fleet shifts to the longer Cape route. It could also reduce the impact of the two-tier MPV market that has developed over the past two years, where operators not targeted by Houthis continued to sail via the Red Sea, offering cheaper freight rates than MPV operators sailing via the Cape. The longer sailing times for all shippers come on the back of a surge of cargo activity in the second quarter, where shippers withheld cargoes rushed to move orders before a reprieve for US tariffs expired, according to Ritesh Nair, head of projects at project cargo forwarder Rhenus Projects Logistics. The 90-day tariff reprieve for the majority of countries announced by the US was due to end on July 9. However, the Trump administration decided to delay its deadline for implementing reciprocal tariffs to Aug. 1. “We expect Q3/Q4 to be steady and then to pick up from Q2 2026,” Nair told the Journal of Commerce. “Vessel operators are hesitating taking vessels on time charter and cargo flows are shifting a bit, making the whole market super volatile and unsecure.” Nair added that it is “difficult to budget” in the current breakbulk and project cargo market. Misinformation, uncertainty are rife Nair also spoke of misinformation circling on risk mitigation strategies related to the US trade uncertainty. Giving the example of Free Trade Zones and bonded warehouses, he said that clients were confused about the benefits of each. “FTZs allow you to defer duties, but with bonded warehouses you can hedge against a future duty rate,” he said. “How willing is a customer or their finance team to hedge?” He added that space is drying up on bonded warehouses. In its July report, Toepfer Transport spoke of a “stagnation” in MPV charter rates, although acknowledged that the opportunity to achieve or outperform the index rate depends heavily on the trade region. On the demand side, Toepfer said some carriers have reported good utilization of tonnage, except in the trans-Atlantic trades. The Toepfer Multipurpose Index (TMI) slipped 1% to $12,895 in June, although it is up 1.81% year over year. Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500-deadweight-ton (dwt) “F-Type” vessels with safe working loads of 240-360 metric tons, as reported to Toepfer by owners and operators. Toepfer did concede that some of the positive sentiment in the charter market was related to fixtures of F500 types, mainly newbuildings that are still to be delivered. Drewry’s General Cargo Index also dropped slightly month over month in June, down 0.7% to 137, while its Project Cargo Transport Index slipped 0.5% to 169 over the same period. The base point for both indexes is 100 starting in January 2019, meaning that the calculations begin from that point onward. Contact Carly Fields at carly.fields@spglobal.com .

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MPV availability likely to tighten in aftermath of latest Houthi attacks

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

SMC3rates_shutterstock_5247046.jpg

Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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