<div class="phx-topic abstract-wrapper">The two seated members of the Consumer Product Safety Commission by a split vote have turned down an emergency request by the National Association of Manufacturers to postpone a labeling requirement f</div>

The two seated members of the Consumer Product Safety Commission by a split vote have turned down an emergency request by the National Association of Manufacturers to postpone a labeling requirement f

<div>The two seated members of the Consumer Product Safety Commission by a split vote have turned down an emergency request by the National Association of Manufacturers to postpone a labeling requirement for children&amp;rsquo;s products that Congress ordered in the Consumer Product Safety Improvement Act. Acting Chairman Nancy Nord voted on Thursday to approve NAM&amp;rsquo;s request, but Commissioner Thomas H. Moore voted to deny it. It was the first time the commissioners split a vote on a CPSIA question.The CPSIA calls for children&amp;rsquo;s products &amp;ndash; those intended for consumers 12 years old and younger &amp;ndash; to attach labels that would identify...

The two seated members of the Consumer Product Safety Commission by a split vote have turned down an emergency request by the National Association of Manufacturers to postpone a labeling requirement for children&rsquo;s products that Congress ordered in the Consumer Product Safety Improvement Act. Acting Chairman Nancy Nord voted on Thursday to approve NAM&rsquo;s request, but Commissioner Thomas H. Moore voted to deny it. It was the first time the commissioners split a vote on a CPSIA question. The CPSIA calls for children&rsquo;s products &ndash; those intended for consumers 12 years old and younger &ndash; to attach labels that would identify the name and location of the manufacturer, plus production number, batch number or other identifying characteristics. This portion of the CPSIA is scheduled to take effect on Aug. 14, one year after the law passed Congress. The NAM argued that it would take more than a year to work the tracking labels into productions, since they would require design, packaging changes, and legal and compliance reviews. In voting no, Moore said that the CPSIA allows manufacturers to use good judgment in complying with the tracking label requirement. He reminded them that the purpose for the requirement was to expedite locating products in case of a recall. Rosario Palmieri, NAM vice president for legal and regulatory policy, said the tracking label requirement adds to the confusion and uncertainty over CPSIA which &ldquo;have become a nightmare for many manufacturers. Contact R.G. Edmonson at bedmonson@joc.com .

Transport, Trade and Regulation News

Consumer Product Labeling Must Proceed

<div class="phx-topic abstract-wrapper">The JV is accompanied by a long-term agreement that will lock in the supply of LNG to the ocean carrier’s fast-growing dual-fuel fleet that will increase to 123 vessels by 2029.</div>

The JV is accompanied by a long-term agreement that will lock in the supply of LNG to the ocean carrier’s fast-growing dual-fuel fleet that will increase to 123 vessels by 2029.

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<div class="phx-topic">CMA CGM and TotalEnergies have formed a joint venture to co-develop and operate a new liquefied natural gas (LNG) bunkering vessel in the Amsterdam-Rotterdam-Antwerp region. Under a long-term agreement unveiled Wednesday, TotalEnergies will also supply CMA CGM with up to 360,000 tons of LNG per year until 2040. Rodolphe Saadé, chairman and CEO of CMA CGM Group, said the deal marks the first time a shipping company and an energy provider have agreed to jointly operate an LNG bunkering vessel. “It is a concrete way to scale up alternative fuels and accelerate the decarbonization of global trade,” Saadé said in a statement. The joint venture is subject to regulatory approval.The 20,000 cubic meter vessel will be deployed in 2028 and be based in Rotterdam. The 50/50 JV between the two French companies will offer complete logistics service, from LNG reloading and storing access at gate terminal facilities to bunker delivery to both CMA CGM and other carriers operating LNG-powered ships. TotalEnergies has been operating Gas Agility, an18,600-cubic meter LNG bunker vessel, in the Amsterdam-Rotterdam-Antwerp area since 2020; the new vessel will be integrated into the LNG network and the established logistics infrastructure in the region. TotalEnergies also operates the LNG bunker vessel Gas Vitality in CMA CGM’s home Port of Marseille. CMA CGM’s long-term supply agreement with TotalEnergies will run from 2028 to 2040 and will lock in the supply of LNG to the carrier’s dual-fuel fleet that will number 123 vessels by 2029. “LNG is today the most mature and immediately available solution to reduce the environmental footprint of maritime transport,” Patrick Pouyanné, chairman and CEO of TotalEnergies, said in the statement. <h3>Rising popularity of LNG-powered vessels </h3>LNG cuts greenhouse gas emissions by up to 20% compared to conventional marine fuel, with the potential to reduce emissions by 67% using biomethane and by 85% if synthetic LNG is used. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8d37b682-b951-410d-bd1f-c060a3fe1b8b"></dynamic-object></div>The fuel choice by ocean carriers – at least for now – is increasingly between LNG and methanol that together comprised 70% of the total 1.7 million TEUs in orders made in 2024, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. While methanol led the way in 2023, last year saw a resurgence in LNG-capable ship orders amid growing concerns over the availability of methanol at scale, and that LNG shopping spree has continued in 2025. Just last week, Mediterranean Shipping Co. (MSC) ordered six 22,000-TEU dual-fuel LNG vessels and upsized another six LNG-fueled container ships from 19,000 TEUs to 22,000 TEUs, while Yang Ming ordered seven 15,000-TEU dual-fuel LNG ships. LNG is produced from fossil fuel, but the intention of dual-fuel ship owners is to gradually replace conventional LNG with more sustainable bio-methane or synthetic e-LNG that is produced using renewable energy and captured carbon. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

CMA CGM and TotalEnergies have formed a joint venture to co-develop and operate a new liquefied natural gas (LNG) bunkering vessel in the Amsterdam-Rotterdam-Antwerp region. Under a long-term agreement unveiled Wednesday, TotalEnergies will also supply CMA CGM with up to 360,000 tons of LNG per year until 2040. Rodolphe Saadé, chairman and CEO of CMA CGM Group, said the deal marks the first time a shipping company and an energy provider have agreed to jointly operate an LNG bunkering vessel. “It is a concrete way to scale up alternative fuels and accelerate the decarbonization of global trade,” Saadé said in a statement. The joint venture is subject to regulatory approval. The 20,000 cubic meter vessel will be deployed in 2028 and be based in Rotterdam. The 50/50 JV between the two French companies will offer complete logistics service, from LNG reloading and storing access at gate terminal facilities to bunker delivery to both CMA CGM and other carriers operating LNG-powered ships. TotalEnergies has been operating Gas Agility, an18,600-cubic meter LNG bunker vessel, in the Amsterdam-Rotterdam-Antwerp area since 2020; the new vessel will be integrated into the LNG network and the established logistics infrastructure in the region. TotalEnergies also operates the LNG bunker vessel Gas Vitality in CMA CGM’s home Port of Marseille. CMA CGM’s long-term supply agreement with TotalEnergies will run from 2028 to 2040 and will lock in the supply of LNG to the carrier’s dual-fuel fleet that will number 123 vessels by 2029. “LNG is today the most mature and immediately available solution to reduce the environmental footprint of maritime transport,” Patrick Pouyanné, chairman and CEO of TotalEnergies, said in the statement. Rising popularity of LNG-powered vessels LNG cuts greenhouse gas emissions by up to 20% compared to conventional marine fuel, with the potential to reduce emissions by 67% using biomethane and by 85% if synthetic LNG is used. The fuel choice by ocean carriers – at least for now – is increasingly between LNG and methanol that together comprised 70% of the total 1.7 million TEUs in orders made in 2024, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. While methanol led the way in 2023, last year saw a resurgence in LNG-capable ship orders amid growing concerns over the availability of methanol at scale, and that LNG shopping spree has continued in 2025. Just last week, Mediterranean Shipping Co. (MSC) ordered six 22,000-TEU dual-fuel LNG vessels and upsized another six LNG-fueled container ships from 19,000 TEUs to 22,000 TEUs, while Yang Ming ordered seven 15,000-TEU dual-fuel LNG ships. LNG is produced from fossil fuel, but the intention of dual-fuel ship owners is to gradually replace conventional LNG with more sustainable bio-methane or synthetic e-LNG that is produced using renewable energy and captured carbon. Contact Greg Knowler at greg.knowler@spglobal.com .

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CMA CGM, TotalEnergies ink deal to jointly operate LNG bunkering vessel

<div class="phx-topic abstract-wrapper">Canada’s port stakeholders are hopeful the new prime minister and world-renowned economist will fast-track major projects and modernize labor negotiations.</div>

Canada’s port stakeholders are hopeful the new prime minister and world-renowned economist will fast-track major projects and modernize labor negotiations.

<div class="phx-topic">The new government of Prime Minster Mark Carney has created rare sentiment among Canadian shipping stakeholders about action out of Ottawa: overflowing optimism. Carney, an economist who headed both the Bank of Canada and the Bank of England, brings a hard-charging approach focused on galvanizing the county’s sagging productivity. He rode into office in March thanks to an electorate united in anger and frustration over President Donald Trump’s tariffs and insults over Canada’s sovereignty. The changed relationship with the US has also galvanized efforts to lessen Canada’s trade dependence on its neighbor. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6047895_0.1.jpg"></img></div>Carney’s pledge to streamline the regulatory bureaucracy that has made Canada an Organisation for Economic Co-operation and Development laggard in completing major infrastructure projects is good news for ports and railroads that have seen regulatory approval timelines stretch past a decade. The former Goldman Sachs executive is the best chance the shipping industry has seen in a decade to reduce the power of organized transportation labor to cripple national supply chains when contract negotiations break down, according to one person tied to port labor policy. More competitive tax policies — along with faster regulatory approvals and more guardrails to keep labor-employer negotiations constructive — will make Canada more attractive to investment, said Eric Harvey, president and CEO of the Railway Association of Canada. “We are at a rare moment of opportunity. Government and industry alike seem willing to have a serious conversation about what it takes to keep supply chains moving and competitive,” Harvey told the Journal of Commerce. <h3>Pushing big projects forward </h3>Carney’s Liberal Party on June 20 passed legislation giving the federal government power to fast-track projects deemed of national importance, streamlining the current approval process involving environmental regulators and indigenous parties. Enacting Bill C-5 will benefit projects such as the C$3 billion mega-terminal the Vancouver Fraser Port Authority has sought for two decades, as well as Montreal’s C$1.57 million Contrecoeur terminal project Both projects will need more federal investment to lure marine terminal operators, with Vancouver needing some C$1 billion from the federal government, according to two people familiar with the project. The port has yet to request proposals for an operator of the Robert Bank Terminal 2 but in July began its search for a construction company to plan and build the 2.4 million-TEU facility. The Montreal Port Authority (MPA) also plans to announce this year the concessionaire for the builder and operator of its planned terminal. The facility would be located about 43 miles upriver from the city along the St. Lawrence and have an annual capacity of 1.15 million TEUs. The MPA couldn’t attract a partner in its first attempt two years ago after the winning bidder balked. Since then, the Quebec provincial government and Canada’s infrastructure bank have kicked in C$130 million and $C300 million, respectively, potentially making the project more attractive to bidders. In awarding the money to the Contrecoeur terminal project in February, Quebec Premier François Legault stressed the need to “diversify our markets to reduce our dependence on the United States.” Given his corporate background, Carney is loath to look to public coffers for all the funding and instead will turn to large Canadian investors, according to one veteran railroad leader. <h3>Rethinking transport labor negotiations </h3>While Carney hasn’t publicly addressed organized transportation labor, port stakeholders see a new government ready to listen, have a conversation and then act, in stark contrast to his Liberal predecessor Justin Trudeau. <a href="https://www.joc.com/article/bc-ports-longshore-unions-need-new-bargaining-process-report-6026105">The release of a report by the Labor Ministry</a> in May offers some recommendations on how British Columbia ports can avoid labor unrest that has shaken their image as unexcitingly dependable. <a href="https://www.canada.ca/content/dam/esdc-edsc/documents/programs/labour-relations/reports/industrial-inquiry-commission-longshoring-west-coast-ports/Report-Recommendations-EN.pdf">The report</a>, undertaken after two years of labor disruptions to the ports of Vancouver and Prince Rupert, strongly recommends that unions bargain with employers on a province-wide basis, rather than a port- or employer-specific basis. The report didn’t hold back in its criticism of the current model that “is far from healthy, and is marred by ongoing conflicts, misaligned priorities and a fiercely protectionist stance by the union.” The report’s recommendation of the creation of a “special mediator” to monitor contract negotiations should be adopted by other transportation industries including railroads, the authors argued in the report, released May 8. The last strike involving major railroads Canadian National and Canadian Pacific railways <a href="https://www.joc.com/article/canadian-ports-liner-operators-bracing-for-rail-strike-impact-5708554">lasted just 17 hours in August 2024</a> but disrupted cargo transport nonetheless, as both railroads began embargoing cargo a week prior. Because the current model doesn’t allow the federal government to be fully informed and there isn’t a formal process for dispute intervention, unions can challenge back-to-work orders by saying there are other, less drastic steps that can be taken to keep bargaining on track, according to the report. The report notes that the need for Canada’s ports to become more competitive has “only been amplified” by Trump’s then-tariff threats. Trump has already made it slightly less attractive for US importers to ship imports through Canadian ports. In his May executive order seeking to rebuild US shipbuilding, Trump closed the loophole of the Harbor Maintenance Tax, a 0.125% charge on US imports. The attacks by Trump have put a spotlight on years of weakened Canada productivity, giving Carney arguably the strongest mandate in years north of the border to shake up how the country builds port infrastructure and responds to breakdowns in labor-employer negotiations. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

The new government of Prime Minster Mark Carney has created rare sentiment among Canadian shipping stakeholders about action out of Ottawa: overflowing optimism. Carney, an economist who headed both the Bank of Canada and the Bank of England, brings a hard-charging approach focused on galvanizing the county’s sagging productivity. He rode into office in March thanks to an electorate united in anger and frustration over President Donald Trump’s tariffs and insults over Canada’s sovereignty. The changed relationship with the US has also galvanized efforts to lessen Canada’s trade dependence on its neighbor. Carney’s pledge to streamline the regulatory bureaucracy that has made Canada an Organisation for Economic Co-operation and Development laggard in completing major infrastructure projects is good news for ports and railroads that have seen regulatory approval timelines stretch past a decade. The former Goldman Sachs executive is the best chance the shipping industry has seen in a decade to reduce the power of organized transportation labor to cripple national supply chains when contract negotiations break down, according to one person tied to port labor policy. More competitive tax policies — along with faster regulatory approvals and more guardrails to keep labor-employer negotiations constructive — will make Canada more attractive to investment, said Eric Harvey, president and CEO of the Railway Association of Canada. “We are at a rare moment of opportunity. Government and industry alike seem willing to have a serious conversation about what it takes to keep supply chains moving and competitive,” Harvey told the Journal of Commerce. Pushing big projects forward Carney’s Liberal Party on June 20 passed legislation giving the federal government power to fast-track projects deemed of national importance, streamlining the current approval process involving environmental regulators and indigenous parties. Enacting Bill C-5 will benefit projects such as the C$3 billion mega-terminal the Vancouver Fraser Port Authority has sought for two decades, as well as Montreal’s C$1.57 million Contrecoeur terminal project Both projects will need more federal investment to lure marine terminal operators, with Vancouver needing some C$1 billion from the federal government, according to two people familiar with the project. The port has yet to request proposals for an operator of the Robert Bank Terminal 2 but in July began its search for a construction company to plan and build the 2.4 million-TEU facility. The Montreal Port Authority (MPA) also plans to announce this year the concessionaire for the builder and operator of its planned terminal. The facility would be located about 43 miles upriver from the city along the St. Lawrence and have an annual capacity of 1.15 million TEUs. The MPA couldn’t attract a partner in its first attempt two years ago after the winning bidder balked. Since then, the Quebec provincial government and Canada’s infrastructure bank have kicked in C$130 million and $C300 million, respectively, potentially making the project more attractive to bidders. In awarding the money to the Contrecoeur terminal project in February, Quebec Premier François Legault stressed the need to “diversify our markets to reduce our dependence on the United States.” Given his corporate background, Carney is loath to look to public coffers for all the funding and instead will turn to large Canadian investors, according to one veteran railroad leader. Rethinking transport labor negotiations While Carney hasn’t publicly addressed organized transportation labor, port stakeholders see a new government ready to listen, have a conversation and then act, in stark contrast to his Liberal predecessor Justin Trudeau. The release of a report by the Labor Ministry in May offers some recommendations on how British Columbia ports can avoid labor unrest that has shaken their image as unexcitingly dependable. The report , undertaken after two years of labor disruptions to the ports of Vancouver and Prince Rupert, strongly recommends that unions bargain with employers on a province-wide basis, rather than a port- or employer-specific basis. The report didn’t hold back in its criticism of the current model that “is far from healthy, and is marred by ongoing conflicts, misaligned priorities and a fiercely protectionist stance by the union.” The report’s recommendation of the creation of a “special mediator” to monitor contract negotiations should be adopted by other transportation industries including railroads, the authors argued in the report, released May 8. The last strike involving major railroads Canadian National and Canadian Pacific railways lasted just 17 hours in August 2024 but disrupted cargo transport nonetheless, as both railroads began embargoing cargo a week prior. Because the current model doesn’t allow the federal government to be fully informed and there isn’t a formal process for dispute intervention, unions can challenge back-to-work orders by saying there are other, less drastic steps that can be taken to keep bargaining on track, according to the report. The report notes that the need for Canada’s ports to become more competitive has “only been amplified” by Trump’s then-tariff threats. Trump has already made it slightly less attractive for US importers to ship imports through Canadian ports. In his May executive order seeking to rebuild US shipbuilding, Trump closed the loophole of the Harbor Maintenance Tax, a 0.125% charge on US imports. The attacks by Trump have put a spotlight on years of weakened Canada productivity, giving Carney arguably the strongest mandate in years north of the border to shake up how the country builds port infrastructure and responds to breakdowns in labor-employer negotiations. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Supply chain

Port News

Longshore labor

North-American rail

North American ports

Carney has fresh opportunity to galvanize Canadian shipping industry

<div class="phx-topic abstract-wrapper">The $51.8 million cash deal includes Marten’s physical assets and the transfer of its existing contracts with food and beverage shippers. </div>

The $51.8 million cash deal includes Marten’s physical assets and the transfer of its existing contracts with food and beverage shippers.

<div class="phx-topic">Hub Group has positioned itself to be among the largest temperature-controlled intermodal operators in the US, saying Tuesday it will acquire the reefer intermodal division of Marten Transport for $51.8 million in cash. Hub will add nearly 1,250 refrigerated containers to its existing fleet. “We are excited to more than double Hub Group’s temperature-controlled container fleet and leverage our existing intermodal network to serve Marten Intermodal’s customers,” Hub Group CEO Phil Yeager said in a statement. “We are committed to sustaining the strong service and growth momentum of our leading temperature-controlled intermodal offering.” The acquisition includes Marten’s physical assets and the transfer of its existing contracts with food and beverage shippers. The deal, expected to close by the end of the third quarter, means Illinois-based Hub will be approximately on par in the reefer intermodal space with Prime Inc., which operates a significant trucking fleet and owns about 2,200 refrigerated containers, according to data from Jason Hilsenbeck, president of Loadmatch.com, a drayage tracking platform. Hub owned a little more than 900 reefer containers before the Marten transaction. J.B. Hunt Transport Services remains the market leader in the temperature-controlled intermodal space with a refrigerated container fleet of about 4,700 boxes, more than twice the size of Hub and Prime. <h3>Risks in the reefer space </h3>Wisconsin-based Marten Transport, known for its refrigerated truckload business, will be leaving the intermodal space entirely. The decision reflects a broader industry trend driven in part by Class I railroads raising prices for trailer-on-flatcar loads, thus encouraging customers to shift toward containerized freight, which is easier to stack and lift at terminals. But containers also create operational challenges in the reefer space. Temperature-controlled containers are heavier than trailers due to the combined weight of the box, chassis, insulation and generator sets used to power the units. The additional weight results in fewer pallets being able to be legally loaded into a container than a truck trailer, particularly dense items such as frozen foods. The capacity gap between trailers and containers has narrowed in recent years, but it remains a concern for shippers. For time-sensitive perishable products such as produce or ice cream, trucking remains the faster, more reliable option. Despite those risks, Hub Group apparently sees an opportunity to expand its reach among food and beverage shippers and supplement its dry intermodal business with new refrigerated offerings. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Hub Group has positioned itself to be among the largest temperature-controlled intermodal operators in the US, saying Tuesday it will acquire the reefer intermodal division of Marten Transport for $51.8 million in cash. Hub will add nearly 1,250 refrigerated containers to its existing fleet. “We are excited to more than double Hub Group’s temperature-controlled container fleet and leverage our existing intermodal network to serve Marten Intermodal’s customers,” Hub Group CEO Phil Yeager said in a statement. “We are committed to sustaining the strong service and growth momentum of our leading temperature-controlled intermodal offering.” The acquisition includes Marten’s physical assets and the transfer of its existing contracts with food and beverage shippers. The deal, expected to close by the end of the third quarter, means Illinois-based Hub will be approximately on par in the reefer intermodal space with Prime Inc., which operates a significant trucking fleet and owns about 2,200 refrigerated containers, according to data from Jason Hilsenbeck, president of Loadmatch.com, a drayage tracking platform. Hub owned a little more than 900 reefer containers before the Marten transaction. J.B. Hunt Transport Services remains the market leader in the temperature-controlled intermodal space with a refrigerated container fleet of about 4,700 boxes, more than twice the size of Hub and Prime. Risks in the reefer space Wisconsin-based Marten Transport, known for its refrigerated truckload business, will be leaving the intermodal space entirely. The decision reflects a broader industry trend driven in part by Class I railroads raising prices for trailer-on-flatcar loads, thus encouraging customers to shift toward containerized freight, which is easier to stack and lift at terminals. But containers also create operational challenges in the reefer space. Temperature-controlled containers are heavier than trailers due to the combined weight of the box, chassis, insulation and generator sets used to power the units. The additional weight results in fewer pallets being able to be legally loaded into a container than a truck trailer, particularly dense items such as frozen foods. The capacity gap between trailers and containers has narrowed in recent years, but it remains a concern for shippers. For time-sensitive perishable products such as produce or ice cream, trucking remains the faster, more reliable option. Despite those risks, Hub Group apparently sees an opportunity to expand its reach among food and beverage shippers and supplement its dry intermodal business with new refrigerated offerings. Contact Ari Ashe at ari.ashe@spglobal.com .

Surface

Intermodal providers

Cool Cargo News

Hub Group boosts reefer intermodal business with Marten acquisition

<div class="phx-topic abstract-wrapper">Consumer demand is driving container imports, but the weakening competitive position of European industry is directly impacting the integrated industrial cluster at the port.</div>

Consumer demand is driving container imports, but the weakening competitive position of European industry is directly impacting the integrated industrial cluster at the port.

<div class="phx-topic">Rotterdam faced “exceptional congestion” in the first half of the year as rising volumes — including the arrival of more than 100 ships with container exchanges of 12,000 TEUs — kept operations at the port under pressure, the Dutch hub said Tuesday. But a deeper concern for Rotterdam is the weakening competitive position of European industry that directly impacts the integrated industrial cluster of the port. “In recent months, we as a port have been confronted with economic uncertainties, lagging investments and disruptions in supply chains,” Boudewijn Siemons, CEO of the Port of Rotterdam Authority, said in a first-half results statement. The current investment climate in the Netherlands is causing companies to postpone or cancel investments, including those in sustainability, while at the same time production is increasing in countries outside Europe where conditions are more favorable, the port statement noted. “In these turbulent times, as a port we must ensure that the security of supply of energy, food and other essential materials in Europe remains guaranteed,” Siemons said. “It is also very important that industry in the port remains competitive so as not to weaken Europe’s strategic autonomy.” From a container shipping perspective, Rotterdam is back on top as first-half volume allowed it to reclaim its title as Europe’s busiest container port that was <a href="https://www.joc.com/article/strong-h1-volumes-space-crunch-keep-antwerp-terminals-under-pressure-6043917">lost for the first time to Antwerp-Bruges in the first quarter</a>. First-half volume increased 2.7% year over year to 7 million TEUs, driven by an 8.4% increase in imports from Asia to support growing European consumption and a 9.1% increase in trade with North America. <h3>Structural shortcomings exposed </h3>However, the increasing throughput and rising call sizes are exposing structural shortcomings in Rotterdam. Call size refers to the total number of containers loaded on and taken off a ship during a port call. “Solutions to make the entire system more efficient and resilient must be sought in structural cooperation within the chain,” the port statement said. “The arrival of more than 100 container ships with a call size exceeding 12,000 TEUs this half year underscores the urgency of the situation.” Handling the huge container flows and large call sizes in Rotterdam is coming on top of the phasing in and out of services in changing carrier alliances, labor interruptions and challenging weather conditions at the beginning of the year that have led to increasing waiting times on the land side of the deep-sea terminal operations. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a16621f7-4a3c-4aa5-bf93-8863f02dd57f"></dynamic-object></div>The congestion is mostly confined to the land side, with a limited number of large container ships waiting to berth. This was confirmed by data from port visibility provider Portcast that shows six ships waiting to berth at Rotterdam as of July 20. Low water levels on the Rhine and import duties imposed by the US on exports from Europe and China have not yet had “a demonstrable negative effect” on container handling in the first half of the year, according to the port. One of the structural changes being discussed in Rotterdam is the smarter use of existing infrastructure; for example, by shifting more road transport to off-peak hours, bundling and exchanging containers on inland waterway corridors and sharing data via digital platforms. <h3>Bulk shipments show sharp decline </h3>While Rotterdam works on improving container flows, concerns are growing over the weakening competitive position of European industry. As one of the main gateways to North Europe, that is having a direct impact on Rotterdam’s bulk handling volume, particularly liquid bulk. Several chemical companies have announced closures of plants in the Rotterdam area with the loss of hundreds of jobs, raising concerns about the future of the Dutch chemicals cluster. Rotterdam’s total liquid bulk segment declined 5.3% year over year in the first half to 96.2 million metric tons. The throughput of mineral oil products showed a decline of 21.5% to 6.2 million metric tons, with the port describing the market as being in “backwardation,” which makes storage unprofitable because the current spot price is higher than the product’s futures price. LNG was an outlier in the liquid bulk sector, with throughput increasing 9% as gas stocks in Europe continued to be replenished during the summer. But the volume of product categorized as “other liquid bulk cargo” fell 5.9% in the first half, mainly due to lower supplies of biodiesel from China because of anti-dumping duties and reduced use of palm oil as a raw material for biodiesel production in Europe. Throughput of dry bulk cargo fell 8.9% year over year in the first half. The volume of iron ore and scrap was down 12.2% because of lower production in the German steel industry that is influenced by ongoing economic uncertainty and trade restrictions. Coal throughput decreased 21.1% due to lower supplies of coking coal, which is used in blast furnaces for steel production. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Rotterdam faced “exceptional congestion” in the first half of the year as rising volumes — including the arrival of more than 100 ships with container exchanges of 12,000 TEUs — kept operations at the port under pressure, the Dutch hub said Tuesday. But a deeper concern for Rotterdam is the weakening competitive position of European industry that directly impacts the integrated industrial cluster of the port. “In recent months, we as a port have been confronted with economic uncertainties, lagging investments and disruptions in supply chains,” Boudewijn Siemons, CEO of the Port of Rotterdam Authority, said in a first-half results statement. The current investment climate in the Netherlands is causing companies to postpone or cancel investments, including those in sustainability, while at the same time production is increasing in countries outside Europe where conditions are more favorable, the port statement noted. “In these turbulent times, as a port we must ensure that the security of supply of energy, food and other essential materials in Europe remains guaranteed,” Siemons said. “It is also very important that industry in the port remains competitive so as not to weaken Europe’s strategic autonomy.” From a container shipping perspective, Rotterdam is back on top as first-half volume allowed it to reclaim its title as Europe’s busiest container port that was lost for the first time to Antwerp-Bruges in the first quarter . First-half volume increased 2.7% year over year to 7 million TEUs, driven by an 8.4% increase in imports from Asia to support growing European consumption and a 9.1% increase in trade with North America. Structural shortcomings exposed However, the increasing throughput and rising call sizes are exposing structural shortcomings in Rotterdam. Call size refers to the total number of containers loaded on and taken off a ship during a port call. “Solutions to make the entire system more efficient and resilient must be sought in structural cooperation within the chain,” the port statement said. “The arrival of more than 100 container ships with a call size exceeding 12,000 TEUs this half year underscores the urgency of the situation.” Handling the huge container flows and large call sizes in Rotterdam is coming on top of the phasing in and out of services in changing carrier alliances, labor interruptions and challenging weather conditions at the beginning of the year that have led to increasing waiting times on the land side of the deep-sea terminal operations. The congestion is mostly confined to the land side, with a limited number of large container ships waiting to berth. This was confirmed by data from port visibility provider Portcast that shows six ships waiting to berth at Rotterdam as of July 20. Low water levels on the Rhine and import duties imposed by the US on exports from Europe and China have not yet had “a demonstrable negative effect” on container handling in the first half of the year, according to the port. One of the structural changes being discussed in Rotterdam is the smarter use of existing infrastructure; for example, by shifting more road transport to off-peak hours, bundling and exchanging containers on inland waterway corridors and sharing data via digital platforms. Bulk shipments show sharp decline While Rotterdam works on improving container flows, concerns are growing over the weakening competitive position of European industry. As one of the main gateways to North Europe, that is having a direct impact on Rotterdam’s bulk handling volume, particularly liquid bulk. Several chemical companies have announced closures of plants in the Rotterdam area with the loss of hundreds of jobs, raising concerns about the future of the Dutch chemicals cluster. Rotterdam’s total liquid bulk segment declined 5.3% year over year in the first half to 96.2 million metric tons. The throughput of mineral oil products showed a decline of 21.5% to 6.2 million metric tons, with the port describing the market as being in “backwardation,” which makes storage unprofitable because the current spot price is higher than the product’s futures price. LNG was an outlier in the liquid bulk sector, with throughput increasing 9% as gas stocks in Europe continued to be replenished during the summer. But the volume of product categorized as “other liquid bulk cargo” fell 5.9% in the first half, mainly due to lower supplies of biodiesel from China because of anti-dumping duties and reduced use of palm oil as a raw material for biodiesel production in Europe. Throughput of dry bulk cargo fell 8.9% year over year in the first half. The volume of iron ore and scrap was down 12.2% because of lower production in the German steel industry that is influenced by ongoing economic uncertainty and trade restrictions. Coal throughput decreased 21.1% due to lower supplies of coking coal, which is used in blast furnaces for steel production. Contact Greg Knowler at greg.knowler@spglobal.com .

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Flagging European industry clouds Rotterdam’s rising container volume

<div class="phx-topic abstract-wrapper">The largest US less-than-truckload provider says it won’t enforce new density-based classifications until Dec. 1, giving shippers more time to adapt to changes. </div>

The largest US less-than-truckload provider says it won’t enforce new density-based classifications until Dec. 1, giving shippers more time to adapt to changes.

<div class="phx-topic">FedEx Freight, the largest US less-than-truckload (LTL) carrier, is delaying by 150 days the implementation of changes to the shipment classification system used to set LTL pricing. The revisions to the National Motor Freight Classification (NMFC), which took effect Saturday, affect thousands of products, moving them to density-based classes. “To ensure ample time to fully adapt processes and pricing to the new classifications, FedEx Freight is delaying enforcement until Dec. 1,” the company said <a href="https://www.fedex.com/en-us/shipping/freight/class-calculator.html#nmfc">on its website</a>. No other LTL carriers have followed suit yet, but FedEx Freight is a large enough provider that the 150-day reprieve will impact thousands of US shippers. FedEx Freight has nearly 15% of the total US LTL market in terms of daily shipments, hauling about 98,900 shipments a day in 2024, according to SJ Consulting Group data. The trucking arm of FedEx had about $9.1 billion in revenue in calendar year 2024. The next largest LTL carrier, Old Dominion Freight Line, had $5.8 billion in revenue. <h3>Greater weight on density </h3>Shippers have been wrestling for much of the past year with <a href="https://www.joc.com/article/us-shippers-urged-to-prepare-now-for-upcoming-ltl-class-changes-rate-resetting-5933927">how to adjust and prepare for changes</a> that move more than 2,000 NMFC items into full-scale density classes. The National Motor Freight Traffic Association (NMFTA), which administers the NMFC, and LTL carriers have urged shippers to review how they build palletized shipments. With the revisions now in place, the question turns from whether shippers are ready to adapt to whether trucking companies are willing to implement them in a weak LTL market. Old Dominion Freight Line (ODFL) and XPO saw shipment volumes drop in May, with ODFL’s daily volume falling 6.8% year over year that month and XPO’s shipments slipping 5%, according to company reports. FedEx Freight’s shipment count fell 1% year over year in the quarter ending May 31. LTL pricing has remained resilient, however, with the US long-distance LTL producer price index (PPI) up 7.8% year over year in June at a reading of 261, its highest to date this year, according to the US Bureau of Labor Statistics. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="2b531ac2-bb4f-4809-9a8a-81ad615a8698"></dynamic-object></div>Classification is a tool used to help determine pricing based on shipment characteristics by commodity including density, handling, stowability and liability. Density-based pricing considers the mass (pounds) and volume (cubic feet) of the load rather than other characteristics. The July 19 changes are only the beginning as the NMFTA continues to review nearly 20,000 commodity codes for additional changes in the future. <h3>Pricing impact </h3>Although there’s no set formula to show how much LTL rates might increase under the NMFC revisions, shippers have said they believe rates will rise — especially if they do nothing. With more products shifting to density-only classifications, shippers that move low-density items such as cabinets, chairs and foam that take up lots of trailer space may pay more. High density items such as ceramic tile, concrete bricks, or steel fasteners are likely to cost less to ship because they take up less space in the truck. The goal is to maximize the use of space inside the trailer with as many shipments from as many customers as possible, increasing daily productivity and reducing costs. The key to avoiding rate increases, experts say, is for shippers to provide exact weight and dimension data for palletized shipments on bills of lading. Inaccurate data or a lack of information could lead to repricing of freight or additional charges. FedEx Freight said after Dec. 1 it may apply an inspection surcharge for shipments with incomplete or inaccurate information listed on the bill of lading. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. Senior Editor Ari Ashe contributed to this report. </div>

FedEx Freight, the largest US less-than-truckload (LTL) carrier, is delaying by 150 days the implementation of changes to the shipment classification system used to set LTL pricing. The revisions to the National Motor Freight Classification (NMFC), which took effect Saturday, affect thousands of products, moving them to density-based classes. “To ensure ample time to fully adapt processes and pricing to the new classifications, FedEx Freight is delaying enforcement until Dec. 1,” the company said on its website . No other LTL carriers have followed suit yet, but FedEx Freight is a large enough provider that the 150-day reprieve will impact thousands of US shippers. FedEx Freight has nearly 15% of the total US LTL market in terms of daily shipments, hauling about 98,900 shipments a day in 2024, according to SJ Consulting Group data. The trucking arm of FedEx had about $9.1 billion in revenue in calendar year 2024. The next largest LTL carrier, Old Dominion Freight Line, had $5.8 billion in revenue. Greater weight on density Shippers have been wrestling for much of the past year with how to adjust and prepare for changes that move more than 2,000 NMFC items into full-scale density classes. The National Motor Freight Traffic Association (NMFTA), which administers the NMFC, and LTL carriers have urged shippers to review how they build palletized shipments. With the revisions now in place, the question turns from whether shippers are ready to adapt to whether trucking companies are willing to implement them in a weak LTL market. Old Dominion Freight Line (ODFL) and XPO saw shipment volumes drop in May, with ODFL’s daily volume falling 6.8% year over year that month and XPO’s shipments slipping 5%, according to company reports. FedEx Freight’s shipment count fell 1% year over year in the quarter ending May 31. LTL pricing has remained resilient, however, with the US long-distance LTL producer price index (PPI) up 7.8% year over year in June at a reading of 261, its highest to date this year, according to the US Bureau of Labor Statistics. Classification is a tool used to help determine pricing based on shipment characteristics by commodity including density, handling, stowability and liability. Density-based pricing considers the mass (pounds) and volume (cubic feet) of the load rather than other characteristics. The July 19 changes are only the beginning as the NMFTA continues to review nearly 20,000 commodity codes for additional changes in the future. Pricing impact Although there’s no set formula to show how much LTL rates might increase under the NMFC revisions, shippers have said they believe rates will rise — especially if they do nothing. With more products shifting to density-only classifications, shippers that move low-density items such as cabinets, chairs and foam that take up lots of trailer space may pay more. High density items such as ceramic tile, concrete bricks, or steel fasteners are likely to cost less to ship because they take up less space in the truck. The goal is to maximize the use of space inside the trailer with as many shipments from as many customers as possible, increasing daily productivity and reducing costs. The key to avoiding rate increases, experts say, is for shippers to provide exact weight and dimension data for palletized shipments on bills of lading. Inaccurate data or a lack of information could lead to repricing of freight or additional charges. FedEx Freight said after Dec. 1 it may apply an inspection surcharge for shipments with incomplete or inaccurate information listed on the bill of lading. Contact William B. Cassidy at bill.cassidy@spglobal.com . Senior Editor Ari Ashe contributed to this report.

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FedEx Freight delays enforcement of LTL re-classification

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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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