<div class="phx-topic abstract-wrapper">"For Sale: One Careful Owner" boasts a notice pinned to a huge tunnel boring machine parked just out</div>

"For Sale: One Careful Owner" boasts a notice pinned to a huge tunnel boring machine parked just out

<div>"For Sale: One Careful Owner" boasts a notice pinned to a huge tunnel boring machine parked just outside Folkestone.The redundant machine is a few hundred yards from the massive terminal complex at the English end of the Channel Tunnel, which should start commercial operations by the end of the year.As that date approaches, pressure is growing on both Eurotunnel, the Anglo/ French company that owns and will operate the tunnel, and operators of cross-channel ferries. Both industries are scrambling to secure market share.The opening shots in a war of words that undoubtedly will heat up in the coming months were...

"For Sale: One Careful Owner" boasts a notice pinned to a huge tunnel boring machine parked just outside Folkestone. The redundant machine is a few hundred yards from the massive terminal complex at the English end of the Channel Tunnel, which should start commercial operations by the end of the year.As that date approaches, pressure is growing on both Eurotunnel, the Anglo/ French company that owns and will operate the tunnel, and operators of cross-channel ferries. Both industries are scrambling to secure market share. The opening shots in a war of words that undoubtedly will heat up in the coming months were fired by Gareth Cooper, managing director of Stena Sealink Line, one of the two big ferry operators on the key Dover/Calais route. Painting an upbeat picture of prospects for cross-Channel traffic, Mr. Cooper accused Eurotunnel of being overly optimistic about its share of that traffic. He said Channel Tunnel's revenues may fall short of Eurotunnel forecasts by as much as UK150 million ($220 million) in its first full year of operation. Eurotunnel expects to carry around 75 percent of tourists and 40 percent of freight crossing the Channel. But Mr. Cooper reckons the figures may be closer to 50 percent of passengers and 35 percent of commercial traffic. While he was at it, Mr. Cooper also turned on P & O European Ferries Ltd., his major competitor on the short-sea crossing between England and France. He said the British-owned ferry operator stood to lose far more revenue than Swedish-owned Stena Sealink when the tunnel opens. And he expressed surprise that P & O European Ferries was planning to add another ship to its short-sea service, bearing in mind the likely loss of income next year. Mr. Cooper's fighting words were something of a surprise to the P & O group. In part, that was because Stena suffered huge losses on its U.K. ferry services when it acquired Sealink after a bitter takeover battle. But their surprise also stemmed from the fact that the two ferry companies are seeking permission to operate joint short-sea services. Both companies believe they must cooperate if they are to compete effectively with the tunnel. Previous applications to Britain's Director General of Fair Trading have been turned down, but P & O and Stena last month asked the government to overturn those rulings. Nevertheless, it is no secret in the ferry industry that P & O European Ferries was reluctant to form a partnership with Stena Sealink until its financial position had recovered and services were improved. While refraining from a direct response to Mr. Cooper's remarks, P & O European Ferries Managing Director Graeme Dunlop has no such reservations when it comes to the tunnel. "Those who want a somewhat spartan service will take the tunnel," he said. "Those who want quality of service, restaurants, shops and a break in the journey will take our ferries." Certainly the threat of competition from the tunnel has galvanized the ferry operators into action, upgrading the quality of their ships and improving landside facilities. They also made a special effort to attract roll-on, roll-off commercial traffic by targeting truck drivers, offering vastly improved restaurants and rest areas on the ferries. Not to be outdone, Eurotunnel officials have joined in the sparring, pointing out that ferry services are frequently canceled by weather problems and often run late. In particular, Eurotunnel's Commercial Director Christopher Garnett last week singled out Stena Sealink for providing somewhat indifferent service. "We're particularly surprised that they seem to be more intent on playing games of competitive one-upmanship rather than getting themselves into a financially strong position before we open," Mr. Garnett said last week. Antagonizing the ferry lines even further, Mr. Garnett predicted that Eurotunnel will be the equivalent of a highway link between Britain and the continent while the ferries will become the country lanes. Despite the rhetoric, all the parties agree there should be enough business to go round, in contrast to earlier fears that ferries would be driven out of business. Although the ferry companies undoubtedly will suffer a sharp drop in business during the early months of tunnel operations, the long-term picture looks pretty healthy for all concerned. Traffic on the short-sea routes between Britain and France has grown dramatically in recent years, with passenger numbers up from 22 million in 1988 to a projected 30 million this year. Between 1980 and 1992, the number of cars carried by the ferries on the short-sea routes has climbed 100 percent while freight has soared a massive 240 percent, according to Mr. Cooper. He estimates the Anglo-French short-sea market is worth some $900 million a year. This means that even if the tunnel takes 60 percent of the tourist market and 40 percent of the roll-on, roll-off freight, there would still be a residual market for the ferries of some $600 million. As Mr. Cooper pointed out, that level of business supported a number of ferry operators in the mid- 1980s, when real costs were much higher.

CHANNEL TUNNEL MAKES WAVES

<div class="phx-topic abstract-wrapper">Volumes from Oceania to the US East Coast have grown steadily during the past five years, with this June recording the most imports ever for a single month.</div>

Volumes from Oceania to the US East Coast have grown steadily during the past five years, with this June recording the most imports ever for a single month.

Feature image

<div class="phx-topic">Mediterranean Shipping Co. (MSC) will launch a new direct weekly service between the US East Coast and Oceania in February, boosting total monthly sailings on the small but expanding trade lane by roughly a quarter. The standalone service, announced Wednesday, will be called the Eagle Service and serve several ports in Australia and New Zealand, with additional stops through the Panama Canal. It will include 11 vessels, but MSC declined to comment on how much capacity the service will bring to the trade. The full rotation includes Philadelphia, Savannah, Freeport, Rodman, Papeete, Auckland, Sydney, Melbourne, Brisbane, Tauranga, Rodman and Cristobal, before returning to Philadelphia. Volumes from Oceania to the US East Coast have grown steadily during the past five years. Between 2020 and 2024, data from PIERS shows the compound annual growth rate for USEC volumes from Oceania was 5.2%, rising to 108,198 TEUs in 2025 from 84,120 TEUs in 2020. PIERS is a sister product of the Journal of Commerce within S&amp;P Global. US imports to the East Coast from Oceania reached an all-time high for a single month in June, with 10,384 TEUs, up 6.3% year on year. April 2025 is the only other month when US imports from Oceania have exceeded 10,000 TEUs, PIERS data shows. Through the first half of 2025, Maersk has had the largest presence among carriers on the USEC-Oceania trade lane, with CMA CGM and MSC coming in second and third place, respectively. Maersk’s H1 imports from Oceania to the US East Coast alone exceeded the total TEUs carried on the trade by CMA CGM and MSC individually. Maritime intelligence provider eeSea shows four services consistently present on the trade lane since 2022, with about 13 to 14 sailings per month for the first seven months of 2025. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

Mediterranean Shipping Co. (MSC) will launch a new direct weekly service between the US East Coast and Oceania in February, boosting total monthly sailings on the small but expanding trade lane by roughly a quarter. The standalone service, announced Wednesday, will be called the Eagle Service and serve several ports in Australia and New Zealand, with additional stops through the Panama Canal. It will include 11 vessels, but MSC declined to comment on how much capacity the service will bring to the trade. The full rotation includes Philadelphia, Savannah, Freeport, Rodman, Papeete, Auckland, Sydney, Melbourne, Brisbane, Tauranga, Rodman and Cristobal, before returning to Philadelphia. Volumes from Oceania to the US East Coast have grown steadily during the past five years. Between 2020 and 2024, data from PIERS shows the compound annual growth rate for USEC volumes from Oceania was 5.2%, rising to 108,198 TEUs in 2025 from 84,120 TEUs in 2020. PIERS is a sister product of the Journal of Commerce within S&P Global. US imports to the East Coast from Oceania reached an all-time high for a single month in June, with 10,384 TEUs, up 6.3% year on year. April 2025 is the only other month when US imports from Oceania have exceeded 10,000 TEUs, PIERS data shows. Through the first half of 2025, Maersk has had the largest presence among carriers on the USEC-Oceania trade lane, with CMA CGM and MSC coming in second and third place, respectively. Maersk’s H1 imports from Oceania to the US East Coast alone exceeded the total TEUs carried on the trade by CMA CGM and MSC individually. Maritime intelligence provider eeSea shows four services consistently present on the trade lane since 2022, with about 13 to 14 sailings per month for the first seven months of 2025. Contact Laura Robb at laura.robb@spglobal.com . 

Maritime

Container Shipping News

Trans-Pacific

MSC to launch new USEC-Oceania weekly service in February

<div class="phx-topic abstract-wrapper">Any tie-up between the two railroads would be classified as a “major transaction” under US Surface Transportation Board regulations and subject to a rigorous review that could take two to three years. </div>

Any tie-up between the two railroads would be classified as a “major transaction” under US Surface Transportation Board regulations and subject to a rigorous review that could take two to three years.

<div class="phx-topic">Union Pacific Railroad (UP) and Norfolk Southern (NS) confirmed Thursday they are in “advanced discussions” on a possible merger to create a transcontinental railroad, although UP officials declined to offer further details during a second-quarter earnings call. UP CEO Jim Vena cautioned that there are no assurances a deal will be reached. Any tie-up <a href="https://www.joc.com/article/potential-up-ns-tie-up-would-cause-major-shift-in-us-intermodal-market-6046025">between the two railroads</a> would be classified as a “major transaction” under US Surface Transportation Board regulations and subject to a rigorous review that could take two to three years. “We didn’t wake up one morning and say we’re going to do something like we just announced that we’re in discussion,” Vena told analysts. “We’ve done a lot of homework to get us to this place.” Vena declined to say how close the companies are to a deal or whether they have contacted federal regulators or the White House. “If you fundamentally have a railroad that’s operating the way we operate, then you can do things that help the nation, help our customers win, and that’s what it’s all about,” he said. “Everything else in the world is moving ahead ... If you stand still, you get left behind.” If a deal between UP and NS is announced and approved, it could benefit shippers of industrial and bulk goods, according to industry analysts with experience at Class I railroads. One analyst, who did not want to be identified, said the biggest gains would go to so-called “watershed” customers, meaning shippers that are located close to the operational networks of two railroads. Many of those shippers currently use trucks to avoid the delays and complications of handing freight between rail carriers. <h3>Differing views on intermodal impact </h3>A transaction between the two Class I railroads <a href="https://www.joc.com/article/potential-up-ns-tie-up-would-cause-major-shift-in-us-intermodal-market-6046025">would benefit Hub Group, Swift Intermodal, and parcel giant UPS</a>, which partner with both Union Pacific and Norfolk Southern. But analysts differ on whether a transcontinental railroad would ease congestion in cities such as Chicago, Memphis and Kansas City, where trains are broken up and containers exchanged between carriers. UP and rival BNSF Railway build West Coast trains bound for Chicago with freight destined for both the Chicagoland area and the East Coast. Ramp workers must break up the trains, sort and organize the containers, then mount the boxes into a stack or route them to NS or CSX for onward delivery. It’s not unlike how dockworkers separate containers for local delivery from those headed inland, then further divide loads between railroads and move them to on-dock yards. Ted Prince, CEO of Tri-Cities Intermodal, said he doesn’t believe much would change in gateway cities under a UP-NS merger. “The situation today in Chicago is not going to be any different after [a] merger,” Prince said. “A container traveling from Los Angeles to Philadelphia is still going to be sliced and diced in Chicago.” Prince also downplayed any impact on international intermodal freight, noting that ocean carriers tend to avoid expensive land-bridge routes in favor of all-water service to East Coast ports, followed by shorter drays. <h3>‘Untapped opportunities’ for intermodal </h3>But Paul Tonsager, a former Canadian National Railway executive, believes a potential merger could have an impact on the intermodal market. “Everyone is chomping at the bit to find ways around Chicago, and I cannot imagine Jim Vena getting into all of this without wanting to make his mark,” Tonsager said. “For example, Red Bull ships a lot from Phoenix to Philadelphia, but they don’t want to mess around with the railroad on this lane. We don’t know how much density is possible on such a lane, but with data and artificial intelligence, it’ll be much easier to find untapped opportunities.” He also sees potential to expand international intermodal business. “It’s inherent on the railroads to open up these opportunities and not be the historical barrier that they’ve been,” he said. “Would you spend $80 billion and just go ‘Okay, well I’m just going to operate the way I’ve always operated?’ I seriously doubt that. This is where the STB [Surface Transportation Board] can step in and push on the UP.” Federal regulators have the authority to impose conditions on major mergers. Railroads must show that a deal serves the public interest, reduces highway congestion and promotes competition. Other railroads, as well as non-intermodal shippers, are likely to use a possible merger as an opportunity to seek concessions from UP in exchange for public support. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Union Pacific Railroad (UP) and Norfolk Southern (NS) confirmed Thursday they are in “advanced discussions” on a possible merger to create a transcontinental railroad, although UP officials declined to offer further details during a second-quarter earnings call. UP CEO Jim Vena cautioned that there are no assurances a deal will be reached. Any tie-up between the two railroads would be classified as a “major transaction” under US Surface Transportation Board regulations and subject to a rigorous review that could take two to three years. “We didn’t wake up one morning and say we’re going to do something like we just announced that we’re in discussion,” Vena told analysts. “We’ve done a lot of homework to get us to this place.” Vena declined to say how close the companies are to a deal or whether they have contacted federal regulators or the White House. “If you fundamentally have a railroad that’s operating the way we operate, then you can do things that help the nation, help our customers win, and that’s what it’s all about,” he said. “Everything else in the world is moving ahead ... If you stand still, you get left behind.” If a deal between UP and NS is announced and approved, it could benefit shippers of industrial and bulk goods, according to industry analysts with experience at Class I railroads. One analyst, who did not want to be identified, said the biggest gains would go to so-called “watershed” customers, meaning shippers that are located close to the operational networks of two railroads. Many of those shippers currently use trucks to avoid the delays and complications of handing freight between rail carriers. Differing views on intermodal impact A transaction between the two Class I railroads would benefit Hub Group, Swift Intermodal, and parcel giant UPS , which partner with both Union Pacific and Norfolk Southern. But analysts differ on whether a transcontinental railroad would ease congestion in cities such as Chicago, Memphis and Kansas City, where trains are broken up and containers exchanged between carriers. UP and rival BNSF Railway build West Coast trains bound for Chicago with freight destined for both the Chicagoland area and the East Coast. Ramp workers must break up the trains, sort and organize the containers, then mount the boxes into a stack or route them to NS or CSX for onward delivery. It’s not unlike how dockworkers separate containers for local delivery from those headed inland, then further divide loads between railroads and move them to on-dock yards. Ted Prince, CEO of Tri-Cities Intermodal, said he doesn’t believe much would change in gateway cities under a UP-NS merger. “The situation today in Chicago is not going to be any different after [a] merger,” Prince said. “A container traveling from Los Angeles to Philadelphia is still going to be sliced and diced in Chicago.” Prince also downplayed any impact on international intermodal freight, noting that ocean carriers tend to avoid expensive land-bridge routes in favor of all-water service to East Coast ports, followed by shorter drays. ‘Untapped opportunities’ for intermodal But Paul Tonsager, a former Canadian National Railway executive, believes a potential merger could have an impact on the intermodal market. “Everyone is chomping at the bit to find ways around Chicago, and I cannot imagine Jim Vena getting into all of this without wanting to make his mark,” Tonsager said. “For example, Red Bull ships a lot from Phoenix to Philadelphia, but they don’t want to mess around with the railroad on this lane. We don’t know how much density is possible on such a lane, but with data and artificial intelligence, it’ll be much easier to find untapped opportunities.” He also sees potential to expand international intermodal business. “It’s inherent on the railroads to open up these opportunities and not be the historical barrier that they’ve been,” he said. “Would you spend $80 billion and just go ‘Okay, well I’m just going to operate the way I’ve always operated?’ I seriously doubt that. This is where the STB [Surface Transportation Board] can step in and push on the UP.” Federal regulators have the authority to impose conditions on major mergers. Railroads must show that a deal serves the public interest, reduces highway congestion and promotes competition. Other railroads, as well as non-intermodal shippers, are likely to use a possible merger as an opportunity to seek concessions from UP in exchange for public support. Contact Ari Ashe at ari.ashe@spglobal.com .

Surface

Rail News

North-American rail

Intermodal providers

UP confirms in ‘advanced discussions’ on deal with Norfolk Southern

<div class="phx-topic abstract-wrapper">The negative foreign exchange effects were most noticeable in the forwarder’s US dollar-denominated ocean freight business, where earnings fell sharply in the second quarter.</div>

The negative foreign exchange effects were most noticeable in the forwarder’s US dollar-denominated ocean freight business, where earnings fell sharply in the second quarter.

<div class="phx-topic">Kuehne + Nagel (K+N) Thursday reported above-market share growth in both air and ocean volumes in the first half of the year, although foreign currency headwinds weighed on the forwarder’s financial results. The negative foreign exchange effects were most noticeable in US dollar-denominated ocean freight. Despite a 20% increase in first-half ocean revenue to $5.9 billion and an 11% increase in second-quarter revenue to $2.8 billion, K+N’s earnings before interest and taxes (EBIT) in the ocean segment fell 5% year over year to $462 million in the first half and slid 16% to $98 million in the second quarter. Markus Blanka-Graff, CFO for Swiss-based Kuehne + Nagel, described the currency headwinds as “one of the most significant developments” this year. “Since ‘Liberation Day’ at the start of Q2, we have seen the devaluation of our key functional currencies, the US dollar and Euro, relative to our reporting currency, the Swiss franc,” Blanka-Graff told analysts on a first-half earnings call, referring to the launch of the Trump administration’s new tariff policy. “The average exchange rate for these currencies declined by 8% and 4% year over year, respectively,” he added. “This resulted in a 6% EBIT headwind in the second quarter alone, or 3% on a half-year basis.” Total first-half revenue was up 12% at $15.7 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4% to $1.5 billion, although overall EBIT fell 1% to $937 million and net profit slid 1% to $700 million. While Kuehne + Nagel has maintained its full-year profitability forecast, the currency effect saw the forwarder adjusting its EBIT guidance range from $1.9 billion to $2.2 billion to $1.8 billion to $2 billion. <h3>‘Solid operational performance’ </h3>Although the negative foreign exchange effects undermined its earnings, Kuehne + Nagel CEO Stefan Paul said the forwarder put in a “solid operational performance” in the first half. In the volatile demand and rate environment that followed President Donald Trump’s April 2 “Liberation Day,” when tariffs were rolled out on the US’ trading partners, Paul said Kuehne + Nagel was able to offset declining ocean volumes to and from the US with gains in other markets. Overall container volume rose 4% year over year in the first half to 2.1 million TEUs against market growth of 1%, with Kuehne + Nagel also reporting “substantial market share gains” on the trade route from Asia to Europe. “We gained a significant amount of new businesses in the RFQ [request for quotation] season during the first half and we are confident we will see the same pattern in the third and the fourth quarters,” Paul said. <h3>Strong growth in air cargo </h3>K+N’s air cargo division delivered a robust performance. Revenue of $4.6 billion in the first six months was up 11% year over year and EBITA rose 9% to $1 billion. EBIT was up 13% at $289 million while volume increased 7% year over year to 1.1 million tons. The market growth in air cargo in the first half was about 4%, Paul noted. Kuehne + Nagel reported strong growth in volume in most of its air freight verticals, particularly perishables, semiconductors and “hyperscalers” — IT equipment providing the cloud infrastructure that powers modern digital applications and services. Paul said hyperscalers was “a promising field” that Kuehne + Nagel was actively pursuing, with “quite a few” people from the high-tech sector employed by the company in the past few weeks to grow the business. “This vertical ... is growing significantly and we expect it will bring high single-digit growth to the air freight business going into the fourth quarter,” he said. Meanwhile, subdued demand in European markets dragged down earnings in K+N’s road logistics business. Revenue was flat year over year at $2.2 billion, but EBIT plunged 26% to $59 million. The acquisition of Spanish groupage logistics provider TDN was completed at the end of the second quarter, enabling Kuehne + Nagel to expand its regional coverage on the Iberian Peninsula. In K+N’s contract logistics division, the second quarter was the strongest in the history of the business unit, with revenue growing 5% year over year to just shy of $3 billion. However, foreign exchange effects saw EBIT falling 2% year over year to $125 million. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Kuehne + Nagel (K+N) Thursday reported above-market share growth in both air and ocean volumes in the first half of the year, although foreign currency headwinds weighed on the forwarder’s financial results. The negative foreign exchange effects were most noticeable in US dollar-denominated ocean freight. Despite a 20% increase in first-half ocean revenue to $5.9 billion and an 11% increase in second-quarter revenue to $2.8 billion, K+N’s earnings before interest and taxes (EBIT) in the ocean segment fell 5% year over year to $462 million in the first half and slid 16% to $98 million in the second quarter. Markus Blanka-Graff, CFO for Swiss-based Kuehne + Nagel, described the currency headwinds as “one of the most significant developments” this year. “Since ‘Liberation Day’ at the start of Q2, we have seen the devaluation of our key functional currencies, the US dollar and Euro, relative to our reporting currency, the Swiss franc,” Blanka-Graff told analysts on a first-half earnings call, referring to the launch of the Trump administration’s new tariff policy. “The average exchange rate for these currencies declined by 8% and 4% year over year, respectively,” he added. “This resulted in a 6% EBIT headwind in the second quarter alone, or 3% on a half-year basis.” Total first-half revenue was up 12% at $15.7 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4% to $1.5 billion, although overall EBIT fell 1% to $937 million and net profit slid 1% to $700 million. While Kuehne + Nagel has maintained its full-year profitability forecast, the currency effect saw the forwarder adjusting its EBIT guidance range from $1.9 billion to $2.2 billion to $1.8 billion to $2 billion. ‘Solid operational performance’ Although the negative foreign exchange effects undermined its earnings, Kuehne + Nagel CEO Stefan Paul said the forwarder put in a “solid operational performance” in the first half. In the volatile demand and rate environment that followed President Donald Trump’s April 2 “Liberation Day,” when tariffs were rolled out on the US’ trading partners, Paul said Kuehne + Nagel was able to offset declining ocean volumes to and from the US with gains in other markets. Overall container volume rose 4% year over year in the first half to 2.1 million TEUs against market growth of 1%, with Kuehne + Nagel also reporting “substantial market share gains” on the trade route from Asia to Europe. “We gained a significant amount of new businesses in the RFQ [request for quotation] season during the first half and we are confident we will see the same pattern in the third and the fourth quarters,” Paul said. Strong growth in air cargo K+N’s air cargo division delivered a robust performance. Revenue of $4.6 billion in the first six months was up 11% year over year and EBITA rose 9% to $1 billion. EBIT was up 13% at $289 million while volume increased 7% year over year to 1.1 million tons. The market growth in air cargo in the first half was about 4%, Paul noted. Kuehne + Nagel reported strong growth in volume in most of its air freight verticals, particularly perishables, semiconductors and “hyperscalers” — IT equipment providing the cloud infrastructure that powers modern digital applications and services. Paul said hyperscalers was “a promising field” that Kuehne + Nagel was actively pursuing, with “quite a few” people from the high-tech sector employed by the company in the past few weeks to grow the business. “This vertical ... is growing significantly and we expect it will bring high single-digit growth to the air freight business going into the fourth quarter,” he said. Meanwhile, subdued demand in European markets dragged down earnings in K+N’s road logistics business. Revenue was flat year over year at $2.2 billion, but EBIT plunged 26% to $59 million. The acquisition of Spanish groupage logistics provider TDN was completed at the end of the second quarter, enabling Kuehne + Nagel to expand its regional coverage on the Iberian Peninsula. In K+N’s contract logistics division, the second quarter was the strongest in the history of the business unit, with revenue growing 5% year over year to just shy of $3 billion. However, foreign exchange effects saw EBIT falling 2% year over year to $125 million. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo

Air Cargo Forwarder News

Forwarding

Post-tariff foreign currency headwinds hit Kuehne + Nagel’s H1, Q2 profit

<div class="phx-topic abstract-wrapper">Local freight forwarders have reported rate increases in the range of $300 to $500 per FEU month over month and expect further slight gains if the pace of demand remains steady.</div>

Local freight forwarders have reported rate increases in the range of $300 to $500 per FEU month over month and expect further slight gains if the pace of demand remains steady.

<div class="phx-topic">Container lines active on the India-Europe trades have been able to push short-term contract and spot rates noticeably higher in July, thanks to elevated bookings powered by the onset of peak shipping season, albeit milder than the normal pattern. Local freight forwarders have reported rate increases in the range of $300 to $500 per FEU month over month and expect further slight gains if the pace of demand remains steady. Sources who spoke with the Journal of Commerce pegged average booking prices from West India (Nhava Sheva/Mundra) to Felixstowe/London Gateway or Rotterdam at between $1,700 and $1,800 per TEU and $2,000 and $2,100 per FEU. Most premier services have their vessels fully booked to their westbound allocations for the next two weeks at least, according to forwarder sources. Sporadic schedule disruptions have in some part contributed to the space pressure. CMA CGM, which had a void call on its premier “Epic” routing last week, has suspended spot bookings for Indian loads to North Europe until the end of July, sources said. “Spot space on other India-Europe connections, including the Gemini network, is also either tight or sold out on their upcoming sailings as carriers are increasingly prioritizing service contract customers for the peak season,” a sales executive at a Mumbai-based forwarding house who did not want to be identified told the Journal of Commerce. “Vessels for August are also filling fast, so carriers are constantly adjusting spot rates.” Forwarders also believe anticipated overbooked sailings have the potential to cause cargo rollovers through the first half of August. <h3>Hapag-Lloyd plans Aug. 1 rate hike </h3>Meanwhile, Hapag-Lloyd plans to roll a $500-per-container increase into its published tariff rates for India-North Europe/Mediterranean trades beginning Aug 1. Maersk and CMA CGM set new freight-all-kinds (FAK) rates on July 15 with increases of the same level. Sources also said several carriers, particularly Hapag-Lloyd and Maersk, are experiencing tight availability of 20-foot boxes in Nhava Sheva and across certain inland container depots (ICDs) in northern India. August FAK rates published by Hapag-Lloyd for Nhava Sheva-North Europe bookings seem to reflect that scenario — at $2,139 per TEU and $1,778 per FEU. “For now, rates appear to be stable and slightly climbing, but much will depend on carriers’ vessel blanking strategies for August,” a second forwarder said. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Container lines active on the India-Europe trades have been able to push short-term contract and spot rates noticeably higher in July, thanks to elevated bookings powered by the onset of peak shipping season, albeit milder than the normal pattern. Local freight forwarders have reported rate increases in the range of $300 to $500 per FEU month over month and expect further slight gains if the pace of demand remains steady. Sources who spoke with the Journal of Commerce pegged average booking prices from West India (Nhava Sheva/Mundra) to Felixstowe/London Gateway or Rotterdam at between $1,700 and $1,800 per TEU and $2,000 and $2,100 per FEU. Most premier services have their vessels fully booked to their westbound allocations for the next two weeks at least, according to forwarder sources. Sporadic schedule disruptions have in some part contributed to the space pressure. CMA CGM, which had a void call on its premier “Epic” routing last week, has suspended spot bookings for Indian loads to North Europe until the end of July, sources said. “Spot space on other India-Europe connections, including the Gemini network, is also either tight or sold out on their upcoming sailings as carriers are increasingly prioritizing service contract customers for the peak season,” a sales executive at a Mumbai-based forwarding house who did not want to be identified told the Journal of Commerce. “Vessels for August are also filling fast, so carriers are constantly adjusting spot rates.” Forwarders also believe anticipated overbooked sailings have the potential to cause cargo rollovers through the first half of August. Hapag-Lloyd plans Aug. 1 rate hike Meanwhile, Hapag-Lloyd plans to roll a $500-per-container increase into its published tariff rates for India-North Europe/Mediterranean trades beginning Aug 1. Maersk and CMA CGM set new freight-all-kinds (FAK) rates on July 15 with increases of the same level. Sources also said several carriers, particularly Hapag-Lloyd and Maersk, are experiencing tight availability of 20-foot boxes in Nhava Sheva and across certain inland container depots (ICDs) in northern India. August FAK rates published by Hapag-Lloyd for Nhava Sheva-North Europe bookings seem to reflect that scenario — at $2,139 per TEU and $1,778 per FEU. “For now, rates appear to be stable and slightly climbing, but much will depend on carriers’ vessel blanking strategies for August,” a second forwarder said. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

Asia-Europe

India-Europe rates strengthen on peak season space demand, capacity cuts

<div class="phx-topic abstract-wrapper">The Asian Development Bank also warned in a note Wednesday that escalating tariffs and further trade friction would further dim intra-Asia growth prospects. </div>

The Asian Development Bank also warned in a note Wednesday that escalating tariffs and further trade friction would further dim intra-Asia growth prospects.

<div class="phx-topic">Intra-Asia trade risks being thrown into chaos if the US imposes hefty tariffs on goods from the region should current trade talks break down, Hutchison Port Holdings Trust (HPH Trust) warned Wednesday. While the Singapore-listed port operator, a subsidiary of Hong Kong conglomerate CK Hutchison, was commenting before the Trump administration announced trade deals with three Asian countries — Japan, Indonesia and the Philippines — late Tuesday in the US, those countries still face significant levies on exports to the US. The Asian Development Bank also warned in a note Wednesday that escalating tariffs and further trade friction would further dim intra-Asia growth prospects. HPH Trust, which controls Hutchison’s Hong Kong and mainland China port interests, said the US government sent letters to several counties in Asia to increase pressure on them to conclude trade negotiations by an Aug. 1 deadline. “If these trade deals fail to materialize, the sudden reinstatement of higher tariffs and possible sectoral tariffs by the US could trigger fresh turmoil in global trade, particularly for intra-Asia trade,” HPH Trust said. The warning was included as part of the company’s first-half results announcement. In the agreements confirmed Wednesday, Japanese exports to the US will be charged a 15% tariff, down from a proposed 25% levy, while a 19% tariff will be added to imports from the Philippines. Indonesia will also have a 19% tariff added to its exports to the US, although that is down from the 32% the US said it would apply without a deal. But other major Asian exporters to the US, including South Korea and Thailand, have yet to agree to trade deals. South Korea and Malaysia both face a 25% tariff, with Thailand and Cambodia each looking at a 36% levy. Myanmar and Laos would have exports to the US taxed at 40%. Officials from the US and China, meanwhile, are due to meet next week in Stockholm to continue talks on a trade deal, <a href="https://www.reuters.com/world/china/us-china-discuss-tariff-deadline-extension-trump-reaches-philippines-deal-2025-07-22/">Reuters reported</a>. The US has imposed an Aug. 14 deadline for reaching a deal, without which Chinese goods could face a 145% US tariff. “Uneven progress in tariff negotiations and the potential expansion of tariffs to additional products could further disrupt trade activities and weigh on growth for the region,” said Dong He, chief economist at the regional government-backed ASEAN+3 Macroeconomic Research Office (AMRO). AMRO is forecasting economic growth in the intra-Asia region to be 3.8% this year, slipping to 3.6% in 2026. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Intra-Asia trade risks being thrown into chaos if the US imposes hefty tariffs on goods from the region should current trade talks break down, Hutchison Port Holdings Trust (HPH Trust) warned Wednesday. While the Singapore-listed port operator, a subsidiary of Hong Kong conglomerate CK Hutchison, was commenting before the Trump administration announced trade deals with three Asian countries — Japan, Indonesia and the Philippines — late Tuesday in the US, those countries still face significant levies on exports to the US. The Asian Development Bank also warned in a note Wednesday that escalating tariffs and further trade friction would further dim intra-Asia growth prospects. HPH Trust, which controls Hutchison’s Hong Kong and mainland China port interests, said the US government sent letters to several counties in Asia to increase pressure on them to conclude trade negotiations by an Aug. 1 deadline. “If these trade deals fail to materialize, the sudden reinstatement of higher tariffs and possible sectoral tariffs by the US could trigger fresh turmoil in global trade, particularly for intra-Asia trade,” HPH Trust said. The warning was included as part of the company’s first-half results announcement. In the agreements confirmed Wednesday, Japanese exports to the US will be charged a 15% tariff, down from a proposed 25% levy, while a 19% tariff will be added to imports from the Philippines. Indonesia will also have a 19% tariff added to its exports to the US, although that is down from the 32% the US said it would apply without a deal. But other major Asian exporters to the US, including South Korea and Thailand, have yet to agree to trade deals. South Korea and Malaysia both face a 25% tariff, with Thailand and Cambodia each looking at a 36% levy. Myanmar and Laos would have exports to the US taxed at 40%. Officials from the US and China, meanwhile, are due to meet next week in Stockholm to continue talks on a trade deal, Reuters reported . The US has imposed an Aug. 14 deadline for reaching a deal, without which Chinese goods could face a 145% US tariff. “Uneven progress in tariff negotiations and the potential expansion of tariffs to additional products could further disrupt trade activities and weigh on growth for the region,” said Dong He, chief economist at the regional government-backed ASEAN+3 Macroeconomic Research Office (AMRO). AMRO is forecasting economic growth in the intra-Asia region to be 3.8% this year, slipping to 3.6% in 2026. Contact Keith Wallis at keithwallis@hotmail.com .

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Intra-Asia trade faces fresh turmoil from potential hefty US tariffs: HPH Trust

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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

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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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