<div class="phx-topic abstract-wrapper">Shippers are closely tracking the progress of the highway bill through a House-Senate conference com</div>

Shippers are closely tracking the progress of the highway bill through a House-Senate conference com

<div>Shippers are closely tracking the progress of the highway bill through a House-Senate conference committee as they try to keep a mandatory fuel surcharge and expansion of highway tolling out of the final package.The conference committee began its work last week with the lofty goal of sending a bill to the White House before the seventh highway bill extension expires at the end of June. The committee is working to agree on an overall spending limit, likely to fall somewhere between the $284 billion approved by the House and the White House and the $295 billion Senate version of the...

Shippers are closely tracking the progress of the highway bill through a House-Senate conference committee as they try to keep a mandatory fuel surcharge and expansion of highway tolling out of the final package. The conference committee began its work last week with the lofty goal of sending a bill to the White House before the seventh highway bill extension expires at the end of June. The committee is working to agree on an overall spending limit, likely to fall somewhere between the $284 billion approved by the House and the White House and the $295 billion Senate version of the highway bill. "As much attention as there is on getting this bill done, I think there should also be attention on how did we get into this mess and how do we not do it again," American Trucking Associations President and CEO William H. Graves said at a June 3 Transportation Table. The freight transportation world cares about those big picture issues, but there are more specific points of the bills that are of top concern as shippers and others lobby conferees. The fuel surcharge language, which is in the House bill but not the Senate bill, would directly affect shippers' pocketbooks. "Contact the conferees," National Small Shipments Traffic Conference counsel John Cutler told shippers on a TranzAct Technologies conference call. "Tell them we need a highway bill and we need a highway bill soon. Shippers ought to be opposing the mandatory federal fuel surcharge. It kicks in at $1.15. We're talking about something permanent. It's one of those marketplace distortions." Also, conferees will hash out an agreement on the percent on the dollar return to states from gas tax payments. The donor-donee issue hung up the debate last year. Cutler said the tolling language would affect shippers too, but indirectly. "The House bill is more generous on tolling," he said. "Tolling is a big concern for the trucking industry and therefore for shippers. This is an obvious source of revenue for states. And those costs are not going to be absorbed by truckers. Therefore shippers ought to be concerned." The House bill contains a provision inserted by Rep. Mark Kennedy, R-Minn., to allow tolling of new Interstate lanes under certain conditions but would prohibit new tolling of existing lanes. The amendment has drawn an odd of mix of accolades from both tolling opponents and proponents. Opponents like the prohibition on tolling existing roadways and proponents like the expanded use of tolling on highways. Reason Foundation Senior Fellow and editor of tollroadsnews.com Peter Samuel said it is natural that the trucking industry and its customers would oppose an expansion of tolling. "Of course like any other group they would like to shift the cost to someone else," he said. "If taxpayers generally can pay for the upkeep and construction of roads, of course they would prefer a free road." Many shippers would also like to see the current hours of service rule written into law, but neither legislative body included it in their highway bill. As the Federal Motor Carrier Safety Administration proceeds with its separate rulemaking process on rewriting that rule, those who would like to see the rule codified are still pushing the committee to do that.

Transport, Trade and Regulation News

Continuing Legislative Roadwork

<div class="phx-topic abstract-wrapper">The decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said in a quarterly update Friday.</div>

The decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said in a quarterly update Friday.

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<div class="phx-topic">OOCL’s second-quarter revenues dropped 6.5% year on year to $2.1 billion amid falling freight rates on trans-Pacific and Asia-Europe services, the carrier said in a quarterly update Friday. The revenue decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said. OOCL, the liner offshoot of Hong Kong-listed Orient Overseas (International), a Cosco Shipping Holdings subsidiary, said Q2 trans-Pacific revenues were also hit by a 4.3% fall in container volumes to 501,814 TEUs. Trans-Pacific revenues fell 18% to $753 million in the second quarter from $922 million a year earlier. OOCL said revenue from Asia-Europe services dropped 15% to $443 million in the April-June period despite a 3% increase in liftings to 361,722 TEUs. There were brighter results in OOCL’s two other main markets. Intra-Asia and Australasia remained OOCL’s biggest contributor to revenue and volumes after the carrier saw a 9% increase to $728 million in second-quarter revenue. Liftings climbed 8% to 951,940 TEUs. Revenue from trans-Atlantic services surged 25% to $194 million while container volumes rose 21% to 147,824 TEUs. OOCL’s update only gave revenue and liftings figures; parent company OOIL will likely release full half-year results in mid-August. The carrier’s revenue result echoes that of Taiwan’s Big Three container lines, <a href="https://www.joc.com/article/taiwans-big-three-carriers-see-falling-q2-revenues-as-demand-slump-begins-6041608">which on Wednesday reported worsening Q2 revenues</a> compared with the first quarter. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

OOCL’s second-quarter revenues dropped 6.5% year on year to $2.1 billion amid falling freight rates on trans-Pacific and Asia-Europe services, the carrier said in a quarterly update Friday. The revenue decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said. OOCL, the liner offshoot of Hong Kong-listed Orient Overseas (International), a Cosco Shipping Holdings subsidiary, said Q2 trans-Pacific revenues were also hit by a 4.3% fall in container volumes to 501,814 TEUs. Trans-Pacific revenues fell 18% to $753 million in the second quarter from $922 million a year earlier. OOCL said revenue from Asia-Europe services dropped 15% to $443 million in the April-June period despite a 3% increase in liftings to 361,722 TEUs. There were brighter results in OOCL’s two other main markets. Intra-Asia and Australasia remained OOCL’s biggest contributor to revenue and volumes after the carrier saw a 9% increase to $728 million in second-quarter revenue. Liftings climbed 8% to 951,940 TEUs. Revenue from trans-Atlantic services surged 25% to $194 million while container volumes rose 21% to 147,824 TEUs. OOCL’s update only gave revenue and liftings figures; parent company OOIL will likely release full half-year results in mid-August. The carrier’s revenue result echoes that of Taiwan’s Big Three container lines, which on Wednesday reported worsening Q2 revenues compared with the first quarter. Contact Keith Wallis at keithwallis@hotmail.com.

Container Shipping News

Container lines

Trans-Atlantic

Asia-Europe

Trans-Pacific

Maritime

OOCL’s Q2 revenue slides on lower trans-Pacific, Asia-Europe rates

<div class="phx-topic abstract-wrapper">Adoption of digital bills of lading has been stronger in Asia, but US traction is necessary to help container lines meet a 2030 commitment to fully move to electronic documents.</div>

Adoption of digital bills of lading has been stronger in Asia, but US traction is necessary to help container lines meet a 2030 commitment to fully move to electronic documents.

<div class="phx-topic">US Bank has completed its first trade finance transaction using a digital ocean bill of lading (BoL), another small step toward the industry’s intent to transition to 100% digital BoLs by 2030. The transaction, disclosed by US Bank on Thursday, was facilitated by electronic bill of lading (eBL) software vendor WaveBL for a US-based exporter using Mediterranean Shipping Co., which issued the eBL. MSC is a WaveBL customer, one of two container lines using the software vendor; Zim Integrated Shipping Services is the other. Adoption of eBLs is growing, but off a low base, and is more commonly used in Asia, where the eBL software provider IQAX is getting traction among banks and export suppliers. The nine member carriers of the Digital Container Shipping Association (DCSA) committed in early 2023 to shift to 100% digital bills of lading by 2030. This week’s move by US Bank highlights the potential in American banks adopting a process to accommodate digital BoLs. Traditionally, bills of lading transfer titles between buyers and sellers at a point determined by the shipment’s Incoterm, and banks traditionally play a role in issuing letters of credit to suppliers. In theory, an eBL would negate the need for most letters of credit, as the digital data contained in the document can be used by the buyer, seller, shipping line and banks to understand the financial risk of the shipment. “Our clients are looking for smarter, more efficient ways to manage their import and export activities,” US Bank Senior Vice President Christine Bravo said in a statement. US Bank said a transaction such as this normally would require a courier to physically transport documents across continents, often taking several days. “By contrast, the digital process reduced that timeline to minutes, eliminating delays, [and] enhancing security and compliance,” the bank said. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

US Bank has completed its first trade finance transaction using a digital ocean bill of lading (BoL), another small step toward the industry’s intent to transition to 100% digital BoLs by 2030. The transaction, disclosed by US Bank on Thursday, was facilitated by electronic bill of lading (eBL) software vendor WaveBL for a US-based exporter using Mediterranean Shipping Co., which issued the eBL. MSC is a WaveBL customer, one of two container lines using the software vendor; Zim Integrated Shipping Services is the other. Adoption of eBLs is growing, but off a low base, and is more commonly used in Asia, where the eBL software provider IQAX is getting traction among banks and export suppliers. The nine member carriers of the Digital Container Shipping Association (DCSA) committed in early 2023 to shift to 100% digital bills of lading by 2030. This week’s move by US Bank highlights the potential in American banks adopting a process to accommodate digital BoLs. Traditionally, bills of lading transfer titles between buyers and sellers at a point determined by the shipment’s Incoterm, and banks traditionally play a role in issuing letters of credit to suppliers. In theory, an eBL would negate the need for most letters of credit, as the digital data contained in the document can be used by the buyer, seller, shipping line and banks to understand the financial risk of the shipment. “Our clients are looking for smarter, more efficient ways to manage their import and export activities,” US Bank Senior Vice President Christine Bravo said in a statement. US Bank said a transaction such as this normally would require a courier to physically transport documents across continents, often taking several days. “By contrast, the digital process reduced that timeline to minutes, eliminating delays, [and] enhancing security and compliance,” the bank said. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

US Bank eBL trial for US exporter notches another step toward 2030 goal

<div class="phx-topic abstract-wrapper">The Marseille-based liner has finalized operational plans to call off its remaining vessel-sharing agreements with the carriers after Gemini Cooperation-linked realignments.</div>

The Marseille-based liner has finalized operational plans to call off its remaining vessel-sharing agreements with the carriers after Gemini Cooperation-linked realignments.

<div class="phx-topic">CMA CGM is switching from vessel-sharing agreements (VSAs) to standalone operations across trades out of India in a new strategic approach as it expands its fleet. The Marseille-based liner has finalized operational plans to call off its two remaining VSAs with Hapag-Lloyd and Maersk after Gemini Cooperation-linked realignments. The upcoming disengagements include the Swahili Express (SWAX2) loop run with Hapag-Lloyd on the India-East Africa trade and the Midas network, involving two strings, operated with Maersk on the India-West Africa trade. CMA CGM has had three ships out of the five used on the joint SWAX2, with one vessel each from Hapag-Lloyd and Emirates Shipping Line (ESL). Midas has involved a fleet of 10 ships — six from Maersk and four from CMA CGM — on String 1 and three vessels from each on String 2. The French carrier has already sent its partners termination notices, due to take effect from next month for the SWAX2 operation and from late 2025/early 2026 for the Midas network. Sources at Hapag-Lloyd and Maersk in India were unavailable for comment. The Gemini launch in February saw CMA CGM delink from the decades-long consortium partnerships with Hapag-Lloyd on the India-US East Coast and North Europe trades. CMA CGM’s India VSA operations are now confined to Cosco Shipping/OOCL on the Epic service. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM is switching from vessel-sharing agreements (VSAs) to standalone operations across trades out of India in a new strategic approach as it expands its fleet. The Marseille-based liner has finalized operational plans to call off its two remaining VSAs with Hapag-Lloyd and Maersk after Gemini Cooperation-linked realignments. The upcoming disengagements include the Swahili Express (SWAX2) loop run with Hapag-Lloyd on the India-East Africa trade and the Midas network, involving two strings, operated with Maersk on the India-West Africa trade. CMA CGM has had three ships out of the five used on the joint SWAX2, with one vessel each from Hapag-Lloyd and Emirates Shipping Line (ESL). Midas has involved a fleet of 10 ships — six from Maersk and four from CMA CGM — on String 1 and three vessels from each on String 2. The French carrier has already sent its partners termination notices, due to take effect from next month for the SWAX2 operation and from late 2025/early 2026 for the Midas network. Sources at Hapag-Lloyd and Maersk in India were unavailable for comment. The Gemini launch in February saw CMA CGM delink from the decades-long consortium partnerships with Hapag-Lloyd on the India-US East Coast and North Europe trades. CMA CGM’s India VSA operations are now confined to Cosco Shipping/OOCL on the Epic service. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM ends existing Indian VSAs with Hapag-Lloyd, Maersk

<div class="phx-topic abstract-wrapper">The gathering will be closely watched by ocean carriers, shippers and container terminal operators in the US and Europe for signs that global unions are developing a coordinated cross-border “solidarity strike” strategy.</div>

The gathering will be closely watched by ocean carriers, shippers and container terminal operators in the US and Europe for signs that global unions are developing a coordinated cross-border “solidarity strike” strategy.

<div class="phx-topic">Dockworker trade unions from around the world will come together in Lisbon on Nov. 5 to confront “the threat of automation” facing ports and workers in the maritime industry. Described as “a call to action,” the gathering will be closely watched by ocean carriers, shippers and container terminal operators in the US and Europe for signs that global unions are developing a coordinated cross-border capability. Organized by the International Longshoremen’s Association (ILA) and coordinated by the International Dockworkers Council (IDC), the “People Over Profit: Anti-Automation Conference” will examine the future of labor in the maritime and port sector. “The event will bring together trade unions from around the world to confront the threat of automation driven by economic interests that prioritize profit over human employment,” the IDC said in a statement Friday. “This conference represents a unique opportunity to strengthen the defense of decent jobs, occupational safety and collective rights at a decisive moment for the future of maritime and port labor,” it added. The conference intends to develop a shared roadmap and a strategic plan to halt “the unregulated advance of these technological processes,” the IDC said. Coordinated cross-border “solidarity strikes” have yet to be seen among dockworker unions. Dutch union FNV Havens in February called on workers in terminals around Europe to refuse to handle ships diverted from Rotterdam’s Hutchison Ports’ Delta II terminal in solidarity with its striking dockers, but there were no reports of ships being refused service. <h3>Lightning rod for strike action </h3>Global container terminal operators have been accelerating moves to automate operations using fast-developing AI and 5G technology to handle increasing volumes of cargo while also facing a shortage of labor. Port automation and new technology have become a lightning rod for union action in the US. Last October, the ILA led <a href="https://www.joc.com/article/ila-usmx-agree-on-new-wage-offer-and-contract-extension-that-reopens-ports-5741882">a three-day strike at terminals across the US East and Gulf coasts</a> over wages and concerns around automation. The following month, talks between the ILA and the United States Maritime Alliance (USMX) on a new master contract broke down again due to the union’s concerns about <a href="https://www.joc.com/article/ila-targets-rail-mounted-gantry-cranes-amid-impasse-in-port-labor-talks-5874742">the use of semi-automated rail-mounted gantry cranes (RMGs)</a> at marine terminals. ILA President Harold Daggett said in a separate statement about the Lisbon conference that he was “proud to see this alliance of maritime workers come together in solidarity and strength.” “The automation agenda is creeping into every corner of our economy, from transportation to retail to logistics, and it threatens not only our jobs but the very fabric of our communities,” Daggett said. Automation is not as much of a hot button issue in Europe. Several ports are implementing different levels of automation, from semi- to fully automated terminals deploying automated guided vehicles, automated stacking cranes and remotely operated ship-to-shore cranes. Europe’s busiest container port of Antwerp-Bruges is investing heavily in automation, and while this was raising concerns with dockworker unions, Luc Arnouts, vice president of international relations and networks at the port, said deploying the technology was about being competitive. “If I need eight people on a gang to do a job, then I do some automation I can do the job with four,” Arnouts said. “But you still need to put the eight men there so four will be sitting here in the corner, earning their money but not doing anything. “We feel that discussions [over automation] have become more mature with the unions understanding that keeping the eight people there will, in the end, lead to zero people working at that spot,” he added. Arnouts said there was a widespread shortage of labor “all over the place,” which would offset the loss of jobs caused by automation. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Dockworker trade unions from around the world will come together in Lisbon on Nov. 5 to confront “the threat of automation” facing ports and workers in the maritime industry. Described as “a call to action,” the gathering will be closely watched by ocean carriers, shippers and container terminal operators in the US and Europe for signs that global unions are developing a coordinated cross-border capability. Organized by the International Longshoremen’s Association (ILA) and coordinated by the International Dockworkers Council (IDC), the “People Over Profit: Anti-Automation Conference” will examine the future of labor in the maritime and port sector. “The event will bring together trade unions from around the world to confront the threat of automation driven by economic interests that prioritize profit over human employment,” the IDC said in a statement Friday. “This conference represents a unique opportunity to strengthen the defense of decent jobs, occupational safety and collective rights at a decisive moment for the future of maritime and port labor,” it added. The conference intends to develop a shared roadmap and a strategic plan to halt “the unregulated advance of these technological processes,” the IDC said. Coordinated cross-border “solidarity strikes” have yet to be seen among dockworker unions. Dutch union FNV Havens in February called on workers in terminals around Europe to refuse to handle ships diverted from Rotterdam’s Hutchison Ports’ Delta II terminal in solidarity with its striking dockers, but there were no reports of ships being refused service. Lightning rod for strike action Global container terminal operators have been accelerating moves to automate operations using fast-developing AI and 5G technology to handle increasing volumes of cargo while also facing a shortage of labor. Port automation and new technology have become a lightning rod for union action in the US. Last October, the ILA led a three-day strike at terminals across the US East and Gulf coasts over wages and concerns around automation. The following month, talks between the ILA and the United States Maritime Alliance (USMX) on a new master contract broke down again due to the union’s concerns about the use of semi-automated rail-mounted gantry cranes (RMGs) at marine terminals. ILA President Harold Daggett said in a separate statement about the Lisbon conference that he was “proud to see this alliance of maritime workers come together in solidarity and strength.” “The automation agenda is creeping into every corner of our economy, from transportation to retail to logistics, and it threatens not only our jobs but the very fabric of our communities,” Daggett said. Automation is not as much of a hot button issue in Europe. Several ports are implementing different levels of automation, from semi- to fully automated terminals deploying automated guided vehicles, automated stacking cranes and remotely operated ship-to-shore cranes. Europe’s busiest container port of Antwerp-Bruges is investing heavily in automation, and while this was raising concerns with dockworker unions, Luc Arnouts, vice president of international relations and networks at the port, said deploying the technology was about being competitive. “If I need eight people on a gang to do a job, then I do some automation I can do the job with four,” Arnouts said. “But you still need to put the eight men there so four will be sitting here in the corner, earning their money but not doing anything. “We feel that discussions [over automation] have become more mature with the unions understanding that keeping the eight people there will, in the end, lead to zero people working at that spot,” he added. Arnouts said there was a widespread shortage of labor “all over the place,” which would offset the loss of jobs caused by automation. Contact Greg Knowler at greg.knowler@spglobal.com .

Port News

Longshore labor

Global dockworker unions plan Lisbon gathering for anti-automation ‘call to action’

<div class="phx-topic abstract-wrapper">Trans-Pacific carriers are facing rapidly declining demand and freight rates on the trade lane as the frontloading that occurred during the 90-day pause on new US tariffs — now extended to Aug. 1 — has largely lost steam. </div>

Trans-Pacific carriers are facing rapidly declining demand and freight rates on the trade lane as the frontloading that occurred during the 90-day pause on new US tariffs — now extended to Aug. 1 — has largely lost steam.

<div class="phx-topic">Taiwan’s “Big Three” container lines saw their second-quarter revenues fall sharply from the first quarter, an early indicator of the worsening conditions facing ocean carriers as they report second-quarter and first-half results in the coming weeks. Evergreen Marine, Taiwan’s biggest container line, said its revenue fell 21% to $2.9 billion between April and June. Revenues at Yang Ming were 15% lower, while Wan Hai recorded a 6% decline in second-quarter revenue. The companies provided revenue data only in filings made to Taiwan’s stock exchange on Wednesday. They will not release complete first-half results until next month. Evergreen said its first-half revenues were unchanged compared with a year ago at $6.7 billion, while Yang Ming’s first-half revenue dropped 13% to $2.9 billion. Only Wan Hai Lines, strongly focused on the intra-Asia trade, saw revenue gains in the first half, with a 9.4% increase to $2.5 billion. Trans-Pacific carriers are facing rapidly declining demand and freight rates on the trade lane as the frontloading that occurred during the 90-day pause on new US tariffs — now extended to Aug. 1 — has largely lost steam. The Asia-US trade accounts for about 30% of total revenues for Evergreen and Yang Ming, according to company and Journal of Commerce data, while the figure is 26% for Wan Hai. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Taiwan’s “Big Three” container lines saw their second-quarter revenues fall sharply from the first quarter, an early indicator of the worsening conditions facing ocean carriers as they report second-quarter and first-half results in the coming weeks. Evergreen Marine, Taiwan’s biggest container line, said its revenue fell 21% to $2.9 billion between April and June. Revenues at Yang Ming were 15% lower, while Wan Hai recorded a 6% decline in second-quarter revenue. The companies provided revenue data only in filings made to Taiwan’s stock exchange on Wednesday. They will not release complete first-half results until next month. Evergreen said its first-half revenues were unchanged compared with a year ago at $6.7 billion, while Yang Ming’s first-half revenue dropped 13% to $2.9 billion. Only Wan Hai Lines, strongly focused on the intra-Asia trade, saw revenue gains in the first half, with a 9.4% increase to $2.5 billion. Trans-Pacific carriers are facing rapidly declining demand and freight rates on the trade lane as the frontloading that occurred during the 90-day pause on new US tariffs — now extended to Aug. 1 — has largely lost steam. The Asia-US trade accounts for about 30% of total revenues for Evergreen and Yang Ming, according to company and Journal of Commerce data, while the figure is 26% for Wan Hai. Contact Keith Wallis at keithwallis@hotmail.com .

Taiwan’s ‘Big Three’ carriers see falling Q2 revenues as demand slump begins

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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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Filling the Supply Chain Education Gap with LTL Education Courses

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