<div>Copyright 2008, Traffic World, Inc.Rising fuel costs and lowered financial expectations have pushed the FedEx Ground independent-driver/ contractor legal issues into the background - but not off the radar.The company still faces a number of class-action and individual legal battles against the model - as well as an Internal Revenue Service ruling that those drivers are employees and not contractors, with a bill for about $319 million.The latest skirmish is a mid-March brief filed by the company in the U.S. Court of Appeals for the District of Columbia Circuit requesting a review of a National Labor Relations Board determination that...

Copyright 2008, Traffic World, Inc. Rising fuel costs and lowered financial expectations have pushed the FedEx Ground independent-driver/ contractor legal issues into the background - but not off the radar. The company still faces a number of class-action and individual legal battles against the model - as well as an Internal Revenue Service ruling that those drivers are employees and not contractors, with a bill for about $319 million. The latest skirmish is a mid-March brief filed by the company in the U.S. Court of Appeals for the District of Columbia Circuit requesting a review of a National Labor Relations Board determination that drivers at two Massachusetts terminals are employees. The company has maintained that its drivers are entrepreneurs who enjoy the freedom of being independent contractors. But the company lost an appeal of a California court decision that its single-route drivers are employees. FedEx initiated a drive to convert all state solo routes into multiple ones - a move it is pushing for across the country. Christine P. Richards, company executive vice president and general counsel secretary, told analysts about half of the routes are handled by multi-area contractors. "That has been growing steadily over the last few years," she said. The goal is to have 100 percent in California by May 31, she said.

Air Cargo

FedEx Seeks Review of NLRB Decision

<div class="phx-topic abstract-wrapper">Lured by shorter voyage times and commensurate cost savings, shipping companies have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago.</div>

Lured by shorter voyage times and commensurate cost savings, shipping companies have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago.

Feature image

<div class="phx-topic">Shorter transits and cost savings are luring more multi-purpose vessel (MPV) carriers into Arctic waters, with a jump in sailings through the Northern Sea Route in Russia this year and a steady flow of traffic through the Northwest Passage in Canada. Norway’s Centre for High North Logistics, which tracks vessels through the Northern Sea Route, reported 52 voyages up to the end of August, the latest figures available, in a season that usually lasts until November. At the same time last year, the Centre reported 30 transits. Western sanctions on Russia due to the war in Ukraine meant most using the Northern Sea Route were Russian- or Chinese-controlled operators, including Fesco and Hong Kong Top Honor Shipping, which sailed its multipurpose vessels Sunny Grace and Sunny Faith through the region this year. The Scott Polar Research Institute (SPRI), which monitors shipping along the Northwest Passage, recorded 35 transits in this year’s sailing season between August and October, similar to the 38 voyages in 2024. Highlighting the potential advantages of both routes, Guus van der Linde, spokesperson at Netherlands-headquartered MPV operator Royal Wagenborg, told the Journal of Commerce: “During a limited period a year, the Northwest Passage presents an alternative to the Panama Canal for certain types of vessels and shipping routes, resulting in a reduced transit time, cost savings and strategic flexibility.” The company said that for one voyage, the Northwest Passage was 3,750 nautical miles shorter than the traditional route via the Panama Canal, resulting in about 14 days less sailing and thus a reduction in emissions of over 40%. The Northern Sea Route offers a 3,000-mile savings versus the Suez Canal. <h3>Multipurpose carriers demonstrate interest </h3>Lured by shorter voyage times and commensurate cost savings, Wagenborg is among a raft of shipping companies that have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago. Wagenborg, which has previously described its Arctic operations as “knocking on the door of the North Pole,” has steadily increased the number of voyages via the Northwest Passage since its first voyage in 2016. “Wagenborg has completed over 50 successful commercial transits of the Northwest Passage, establishing a proven track record…in a route in global shipping that is gaining importance and number of transits,” van der Linde said. Those transits include seven in the 2024 season and four this year, with Wagenborg vessels being the first and last ships to enter the Northwest Passage for the 2025 season, according to the SPRI. The Atlanticborg  was the first vessel to transit the route at the start of this year’s season on Aug. 6, while the ill-fated Thamesborg, which grounded in Franklin Strait, closed the transit season on Oct. 14 after being trapped for 33 days. Van der Linde said the advantages of shorter voyages and cost savings have to be weighed against the challenges of ice navigation, seasonal limitations and environmental protection. “All transits are undertaken with extensive planning, including the use of low-sulfur marine gas oil, a relatively slow operating speed, and enhanced navigation and communication systems,” he said. The carrier has a fleet of 33 ice-class ships ranging between 4,300 and 22,000 deadweight metric tons (DWT). According to the SPRI, Wagenborg’s voyages this year have included cargo from Finland to Indonesia onboard the 15,750-dwt Alaskaborg and cargo from Turkey to Canada’s Bathurst inlet shipped by the 19,500-dwt Taagborg, which continued to China. The 15,570-dwt Atlanticborg also made an unusual return transit through the Norwest Passage after transporting cargo from Québec to South Korea and returning with anodes from China to Québec. Other multipurpose and heavy-lift vessel operators, including BigLift Shipping, have used Arctic routes in the past, although the company said none of its ships have used the Canadian Arctic route since 2023.   The grounding of the Thamesborg, which was carrying anodes from China to Quebec, highlighted the perils of Arctic sailing. “We regret that even with every known technology and safeguard in play, the grounding of Thamesborg occurred,” van der Linde said. <h3>Arctic transits come with significant challenges </h3>Unlike blue ocean sailing via the Panama Canal and southern Africa, navigating the Canadian and Russian archipelagos in the Arctic is often done at slow speeds to maneuver through the many inlets and avoid treacherous shoals. There are seven routes through the Northwest Passage, according to the Scott Polar Research Institute. The challenges have led to a cautious approach by other operators. James Jung, director of South Korean heavy-lift vessel operator CY Shipping, said the company, which operates a joint fleet with BigLift Shipping of eight ships, has carried out studies on using the Northwest Passage and Northern Sea Route. The carrier’s ships are not ice-classed and therefore subject to a limited navigation period for both routes during the northern summer and fall. The carrier also identified the high cost of employing ice pilots as a deterrent to using Arctic routes. “I don’t think we will transit via the Northern Sea Route so soon because of the ongoing Ukraine war and sanctions,” Jung told the Journal of Commerce. Jung also explained there are very few heavy-lift project cargoes destined for North America’s high-north, “so carriers can still make use of the Panama Canal” because the benefits of voyage time and cost of using the Northwest Passage aren’t there.  Polar sailing, though, is captivating the South Korean government, which recently made the commercialization of Arctic Sea routes one of its priorities in the five-year development blueprint for its maritime sector. The plan proposes the development of ports and related logistics hubs for Arctic cargo, plus government subsidies for new icebreaking ships. As part of that effort, the South Korean government organized a briefing at the Korea Shipping Association headquarters in Seoul on Oct. 31 to garner and encourage carrier interest in northern shipping routes, which the government sees as a new growth engine for the economy. The government is especially focused on developing the Northern Sea Route through the Russian Arctic. “Since South Korea conducted a total of five trial operations' between 2013 and 2016, national shipping companies' interest in the Northern Sea Route has been low,” the Ministry of Oceans and Fisheries said in a statement. “But national shipping companies have recently expressed a lot of interest in the government's policy of developing the Northern Sea Route.” The ministry expects to organize further meetings to discuss additional trial voyages next year. Heo Man-wook, director of the ministry’s shipping and logistics bureau, said the Arctic Sea routes have enormous economic potential. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Shorter transits and cost savings are luring more multi-purpose vessel (MPV) carriers into Arctic waters, with a jump in sailings through the Northern Sea Route in Russia this year and a steady flow of traffic through the Northwest Passage in Canada. Norway’s Centre for High North Logistics, which tracks vessels through the Northern Sea Route, reported 52 voyages up to the end of August, the latest figures available, in a season that usually lasts until November. At the same time last year, the Centre reported 30 transits. Western sanctions on Russia due to the war in Ukraine meant most using the Northern Sea Route were Russian- or Chinese-controlled operators, including Fesco and Hong Kong Top Honor Shipping, which sailed its multipurpose vessels Sunny Grace and Sunny Faith through the region this year. The Scott Polar Research Institute (SPRI), which monitors shipping along the Northwest Passage, recorded 35 transits in this year’s sailing season between August and October, similar to the 38 voyages in 2024. Highlighting the potential advantages of both routes, Guus van der Linde, spokesperson at Netherlands-headquartered MPV operator Royal Wagenborg, told the Journal of Commerce: “During a limited period a year, the Northwest Passage presents an alternative to the Panama Canal for certain types of vessels and shipping routes, resulting in a reduced transit time, cost savings and strategic flexibility.” The company said that for one voyage, the Northwest Passage was 3,750 nautical miles shorter than the traditional route via the Panama Canal, resulting in about 14 days less sailing and thus a reduction in emissions of over 40%. The Northern Sea Route offers a 3,000-mile savings versus the Suez Canal. Multipurpose carriers demonstrate interest Lured by shorter voyage times and commensurate cost savings, Wagenborg is among a raft of shipping companies that have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago. Wagenborg, which has previously described its Arctic operations as “knocking on the door of the North Pole,” has steadily increased the number of voyages via the Northwest Passage since its first voyage in 2016. “Wagenborg has completed over 50 successful commercial transits of the Northwest Passage, establishing a proven track record…in a route in global shipping that is gaining importance and number of transits,” van der Linde said. Those transits include seven in the 2024 season and four this year, with Wagenborg vessels being the first and last ships to enter the Northwest Passage for the 2025 season, according to the SPRI. The Atlanticborg  was the first vessel to transit the route at the start of this year’s season on Aug. 6, while the ill-fated Thamesborg, which grounded in Franklin Strait, closed the transit season on Oct. 14 after being trapped for 33 days. Van der Linde said the advantages of shorter voyages and cost savings have to be weighed against the challenges of ice navigation, seasonal limitations and environmental protection. “All transits are undertaken with extensive planning, including the use of low-sulfur marine gas oil, a relatively slow operating speed, and enhanced navigation and communication systems,” he said. The carrier has a fleet of 33 ice-class ships ranging between 4,300 and 22,000 deadweight metric tons (DWT). According to the SPRI, Wagenborg’s voyages this year have included cargo from Finland to Indonesia onboard the 15,750-dwt Alaskaborg and cargo from Turkey to Canada’s Bathurst inlet shipped by the 19,500-dwt Taagborg, which continued to China. The 15,570-dwt Atlanticborg also made an unusual return transit through the Norwest Passage after transporting cargo from Québec to South Korea and returning with anodes from China to Québec. Other multipurpose and heavy-lift vessel operators, including BigLift Shipping, have used Arctic routes in the past, although the company said none of its ships have used the Canadian Arctic route since 2023.   The grounding of the Thamesborg, which was carrying anodes from China to Quebec, highlighted the perils of Arctic sailing. “We regret that even with every known technology and safeguard in play, the grounding of Thamesborg occurred,” van der Linde said. Arctic transits come with significant challenges Unlike blue ocean sailing via the Panama Canal and southern Africa, navigating the Canadian and Russian archipelagos in the Arctic is often done at slow speeds to maneuver through the many inlets and avoid treacherous shoals. There are seven routes through the Northwest Passage, according to the Scott Polar Research Institute. The challenges have led to a cautious approach by other operators. James Jung, director of South Korean heavy-lift vessel operator CY Shipping, said the company, which operates a joint fleet with BigLift Shipping of eight ships, has carried out studies on using the Northwest Passage and Northern Sea Route. The carrier’s ships are not ice-classed and therefore subject to a limited navigation period for both routes during the northern summer and fall. The carrier also identified the high cost of employing ice pilots as a deterrent to using Arctic routes. “I don’t think we will transit via the Northern Sea Route so soon because of the ongoing Ukraine war and sanctions,” Jung told the Journal of Commerce. Jung also explained there are very few heavy-lift project cargoes destined for North America’s high-north, “so carriers can still make use of the Panama Canal” because the benefits of voyage time and cost of using the Northwest Passage aren’t there.  Polar sailing, though, is captivating the South Korean government, which recently made the commercialization of Arctic Sea routes one of its priorities in the five-year development blueprint for its maritime sector. The plan proposes the development of ports and related logistics hubs for Arctic cargo, plus government subsidies for new icebreaking ships. As part of that effort, the South Korean government organized a briefing at the Korea Shipping Association headquarters in Seoul on Oct. 31 to garner and encourage carrier interest in northern shipping routes, which the government sees as a new growth engine for the economy. The government is especially focused on developing the Northern Sea Route through the Russian Arctic. “Since South Korea conducted a total of five trial operations' between 2013 and 2016, national shipping companies' interest in the Northern Sea Route has been low,” the Ministry of Oceans and Fisheries said in a statement. “But national shipping companies have recently expressed a lot of interest in the government's policy of developing the Northern Sea Route.” The ministry expects to organize further meetings to discuss additional trial voyages next year. Heo Man-wook, director of the ministry’s shipping and logistics bureau, said the Arctic Sea routes have enormous economic potential. Contact Keith Wallis at keithwallis@hotmail.com.

Breakbulk carriers

Project cargo

Breakbulk News

Maritime

Rise in Arctic MPV transits comes despite challenges of ice navigation

<div class="phx-topic abstract-wrapper">The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests, and that means importers face significant financial risks.</div>

The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests, and that means importers face significant financial risks.

<div class="phx-topic">Already strained by tariffs and economic uncertainty, US breakbulk and project cargo importers are increasingly adding hefty fines and the risk of re-exportation of cargoes to their list of financial anxieties with inspection enforcement by the US Customs and Border Protection (CBP) on the rise. The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests. And that means importers face significant financial risks, including fines that can exceed seven figures and the potential re-exportation of shipments, which disrupts supply chains and inflates consumer prices. During the US federal government’s 2025 fiscal year that ended Sep. 30, the CBP issued 87,684 Agriculture Emergency Action Notifications (EANs), up 11.2% from FY 2024. Of those, 16,527 were related to pests, according to CBP figures. EANs alert trade entities of non-compliance with regulations of the Animal and Plant Health Inspection Service (APHIS), which is overseen by the US Department of Agriculture. Torge Runge, senior operations manager of industrial projects and energy transport solutions in North America for logistics company Gebrüder Weiss, said a snail debacle cost the company upwards of $70,000, after fumigation costs, terminal fees and storage charges. While the fumigation was the most expensive line item, Runge told the Journal of Commerce a delay in the company being informed about the problem further contributed to increased demurrage and detention costs. “There was a big gap between when the shipment arrived and when we actually notified what was going on with it,” Runge said. “We lost almost a week there. We only had two days of free time and after that, it got really expensive.” Overall, Runge said additional transparency throughout the pest identification process between the regulatory bodies and shippers could be improved. To get any details on pests found in cargo, shippers need to submit a Freedom of Information Act (FOIA) request, a bureaucratic process that can take more than a month. In the meantime, project cargo forwarders are often left with the bill. <h3>‘Limited options’ for shippers </h3>When an import shipment is considered to be at risk for pest contamination – which is usually dictated by commodity and origin – the cargo is often targeted by CBP for an inspection. If pests are found, importers have limited options for next steps depending on the nature of the pest, the commodity, packaging and the regulatory response – usually leading to direct and indirect financial losses for multiple parties. “If pests are detected, CBP takes immediate action to prevent their introduction: quarantine, treatment, re-exportation or destruction, and notification,” CBP media relations specialist Rusty Payne told the Journal of Commerce. CBP works in conjunction with other entities – like the Agriculture Department’s APHIS – to find pests in cargo. CBP serves as the frontline defense, while USDA-APHIS provides the technical and regulatory framework to guide pest management efforts, Payne told the Journal of Commerce.  While some instances of pests can be solved stateside with costly fumigation services, others require affected cargo to be returned to its origin entirely. ”[Re-exportation] is just a net loss,” said Kenneth Western, CBP’s chief agriculture specialist at the Houston Seaport. “There’s no money made by the customer...they don’t have a product to re-sell, and the US government doesn’t get the duty.” To avoid contamination, Western recommends shippers familiarize themselves with the risks associated with their commodity or origin. For example, placing tiles on or near grass can attract snails. “Specific practices may include pre-treatment for shipments before export to eliminate pests,” the CBP’s Payne told the Journal of Commerce. “Common treatments include fumigation, heat treatment, cold treatment, or irradiation, depending on the commodity.” <h3>Knock on wood </h3>Shipments using wood packaging materials (WPM), including items like pallets, crates, and boxes, are particularly at risk of re-exportation. “One of the biggest things that we find here in Houston is usually insects being found in wood packaging material used to block and brace imported cargo,” Western told the Journal of Commerce. Violating the International Standards for Phytosanitary Measures No. 15 (ISPM 15) due to the detection of certain invasive wood-boring pests in wood packaging materials can lead to substantial fines and even the immediate re-exportation of an entire shipment. To address pest risks effectively, the USDA has outlined specific treatment methods for wood packaging materials. Importers can choose between heat treatment and fumigation with methyl bromide. Heat treatment requires raising the wood's core temperature to at least 56°C for a minimum of 30 minutes, while fumigation involves sealing the wood in a controlled environment with methyl bromide for at least 16 hours. Those treatments, however, are not always effective, resulting in incomplete exterminations, shippers said. After treatment, each piece of WPM must be clearly marked to indicate that it has undergone the necessary pest control measures. This marking process includes a variety of information, such as the IPPC logo, the country code of origin, and a unique identification number, ensuring that the wood packaging meets international safety standards before shipment. “When they ship it, it has that stamp on it. That's a promise to us,” said Western of the wood stamp indicating ISPM 15 compliance. “If we find any insects in there, if it was treated properly, they should be dead. But sometimes, we are finding a lot of insects in the wood packing material, [even if] the stamp is authentic...When that happens, they are subject to a penalty.” And those penalties can be hefty – up to three times the cost of the cargo, said Western. While fumigation can provide a solution to allow some cargo to stay in the US, shipments found to contain live pests in wood must be sent back to their origin. And several importers said they have noticed an increase in pest detections, even in wood packaging materials that they understood to be compliant with ISPM 15 standards. <h3>Closer to a solution </h3>Shippers in July moved a step closer to an alternative solution to re-exportation for live pests found in WPM when the USDA approved the so-called shredder-hammermill treatment, a new emergency phytosanitary destruction method for dunnage, pallets, WPM and other non-compliant wood products.   According to CBP, the treatment process uses a wood shredder and a hammermill grinder combination to destroy any potential pests, but requires an APHIS-approved shredder-hammermill treatment facility at the port. But the actual machine to perform the task has yet to be fabricated. “By just pulverizing the wood, they don't have to export it or anything,” said Diana Davila, senior vice president of US operations at logistics company UTC Overseas, Inc. “We want to get it out there and say (if) someone can come up with a solution, they can make money on it, and they can save these projects millions of dollars.” While USDA approval for the solution moves forward, using a shredder-hammermill machine is still far off, with months required for design, sourcing and fabrication. “The information about what is required has been shared, so the next step is for the machine to be engineered,” said Davila. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com.</a></div>

Already strained by tariffs and economic uncertainty, US breakbulk and project cargo importers are increasingly adding hefty fines and the risk of re-exportation of cargoes to their list of financial anxieties with inspection enforcement by the US Customs and Border Protection (CBP) on the rise. The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests. And that means importers face significant financial risks, including fines that can exceed seven figures and the potential re-exportation of shipments, which disrupts supply chains and inflates consumer prices. During the US federal government’s 2025 fiscal year that ended Sep. 30, the CBP issued 87,684 Agriculture Emergency Action Notifications (EANs), up 11.2% from FY 2024. Of those, 16,527 were related to pests, according to CBP figures. EANs alert trade entities of non-compliance with regulations of the Animal and Plant Health Inspection Service (APHIS), which is overseen by the US Department of Agriculture. Torge Runge, senior operations manager of industrial projects and energy transport solutions in North America for logistics company Gebrüder Weiss, said a snail debacle cost the company upwards of $70,000, after fumigation costs, terminal fees and storage charges. While the fumigation was the most expensive line item, Runge told the Journal of Commerce a delay in the company being informed about the problem further contributed to increased demurrage and detention costs. “There was a big gap between when the shipment arrived and when we actually notified what was going on with it,” Runge said. “We lost almost a week there. We only had two days of free time and after that, it got really expensive.” Overall, Runge said additional transparency throughout the pest identification process between the regulatory bodies and shippers could be improved. To get any details on pests found in cargo, shippers need to submit a Freedom of Information Act (FOIA) request, a bureaucratic process that can take more than a month. In the meantime, project cargo forwarders are often left with the bill. ‘Limited options’ for shippers When an import shipment is considered to be at risk for pest contamination – which is usually dictated by commodity and origin – the cargo is often targeted by CBP for an inspection. If pests are found, importers have limited options for next steps depending on the nature of the pest, the commodity, packaging and the regulatory response – usually leading to direct and indirect financial losses for multiple parties. “If pests are detected, CBP takes immediate action to prevent their introduction: quarantine, treatment, re-exportation or destruction, and notification,” CBP media relations specialist Rusty Payne told the Journal of Commerce. CBP works in conjunction with other entities – like the Agriculture Department’s APHIS – to find pests in cargo. CBP serves as the frontline defense, while USDA-APHIS provides the technical and regulatory framework to guide pest management efforts, Payne told the Journal of Commerce.  While some instances of pests can be solved stateside with costly fumigation services, others require affected cargo to be returned to its origin entirely. ”[Re-exportation] is just a net loss,” said Kenneth Western, CBP’s chief agriculture specialist at the Houston Seaport. “There’s no money made by the customer...they don’t have a product to re-sell, and the US government doesn’t get the duty.” To avoid contamination, Western recommends shippers familiarize themselves with the risks associated with their commodity or origin. For example, placing tiles on or near grass can attract snails. “Specific practices may include pre-treatment for shipments before export to eliminate pests,” the CBP’s Payne told the Journal of Commerce. “Common treatments include fumigation, heat treatment, cold treatment, or irradiation, depending on the commodity.” Knock on wood Shipments using wood packaging materials (WPM), including items like pallets, crates, and boxes, are particularly at risk of re-exportation. “One of the biggest things that we find here in Houston is usually insects being found in wood packaging material used to block and brace imported cargo,” Western told the Journal of Commerce. Violating the International Standards for Phytosanitary Measures No. 15 (ISPM 15) due to the detection of certain invasive wood-boring pests in wood packaging materials can lead to substantial fines and even the immediate re-exportation of an entire shipment. To address pest risks effectively, the USDA has outlined specific treatment methods for wood packaging materials. Importers can choose between heat treatment and fumigation with methyl bromide. Heat treatment requires raising the wood's core temperature to at least 56°C for a minimum of 30 minutes, while fumigation involves sealing the wood in a controlled environment with methyl bromide for at least 16 hours. Those treatments, however, are not always effective, resulting in incomplete exterminations, shippers said. After treatment, each piece of WPM must be clearly marked to indicate that it has undergone the necessary pest control measures. This marking process includes a variety of information, such as the IPPC logo, the country code of origin, and a unique identification number, ensuring that the wood packaging meets international safety standards before shipment. “When they ship it, it has that stamp on it. That's a promise to us,” said Western of the wood stamp indicating ISPM 15 compliance. “If we find any insects in there, if it was treated properly, they should be dead. But sometimes, we are finding a lot of insects in the wood packing material, [even if] the stamp is authentic...When that happens, they are subject to a penalty.” And those penalties can be hefty – up to three times the cost of the cargo, said Western. While fumigation can provide a solution to allow some cargo to stay in the US, shipments found to contain live pests in wood must be sent back to their origin. And several importers said they have noticed an increase in pest detections, even in wood packaging materials that they understood to be compliant with ISPM 15 standards. Closer to a solution Shippers in July moved a step closer to an alternative solution to re-exportation for live pests found in WPM when the USDA approved the so-called shredder-hammermill treatment, a new emergency phytosanitary destruction method for dunnage, pallets, WPM and other non-compliant wood products.   According to CBP, the treatment process uses a wood shredder and a hammermill grinder combination to destroy any potential pests, but requires an APHIS-approved shredder-hammermill treatment facility at the port. But the actual machine to perform the task has yet to be fabricated. “By just pulverizing the wood, they don't have to export it or anything,” said Diana Davila, senior vice president of US operations at logistics company UTC Overseas, Inc. “We want to get it out there and say (if) someone can come up with a solution, they can make money on it, and they can save these projects millions of dollars.” While USDA approval for the solution moves forward, using a shredder-hammermill machine is still far off, with months required for design, sourcing and fabrication. “The information about what is required has been shared, so the next step is for the machine to be engineered,” said Davila. Contact Laura Robb at laura.robb@spglobal.com.

Transport, Trade and Regulation News

Supply chain

Penalties for pests found in project cargo packing adds to shipper woes

<div class="phx-topic abstract-wrapper">The latest Global Port Tracker report warns of double-digit declines in imports for the rest of the year and no growth in early 2026. </div>

The latest Global Port Tracker report warns of double-digit declines in imports for the rest of the year and no growth in early 2026.

<div class="phx-topic">US retailers are throttling back post-winter holiday restocking despite anticipating strong sales for the upcoming holiday season, planning to import less than 2 million TEUs monthly through March. The latest Global Port Tracker (GPT), published on Friday by Hackett Associates and the National Retail Federation (NRF), projected double-digit declines in imports for the rest of the year and no growth in early 2026, with volumes expected to fall steadily to 1.79 million TEUs in March. Months of frontloading explain the harsher-than-usual import slowdown for the final months of this year, but uncertain consumer sentiment and ever-changing US tariff policy are keeping retail inventories running lean. US container volumes, which initially rose earlier in the year thanks to cargo frontloading to avoid higher tariffs — surging 3.7% year over year in the first half — will end the year down 2.3% from 2024, according to the GPT. The Trump administration’s shifting tariff policy makes “market forecasting highly uncertain,” Ben Hackett, founder of Hackett Associates, said in a statement. “Our trade outlook is for a small decline in imports this year compared with 2024 and a further, larger decline in the first quarter of 2026,” he said. US imports this month and in December will plunge 14.4% and 19.9%, respectively, from a year ago, according to the GPT. The volumes compare poorly with the year-earlier period partly because cargo was frontloaded last year due to labor woes, notably a brief port strike along the US East and Gulf coasts. <h3>Strong sales, weak replenishing </h3>US retail sales this year will top $1 trillion, expanding approximately 3% to 4% from last year, according to a GPT analysis released Thursday. US consumer sentiment is weakening, however, with a preliminary November reading from the University of Michigan’s index showing weakness from October due to heightened concerns over the more than five-week government shutdown. In the face of mixed US economic signals and fluctuating tariff policy, US retailers have been playing it safe when it comes to restocking. US inventory-to-sales ratios for retailers have hovered between 1.28 and 1.32, according to the US Bureau of Economic Analysis, suggesting that despite the frontloading of imports in the first half of the year, importers are keeping stocks lean. That strategy seems to extend into 2026, when GPT forecasts imports will fall to 1.98 million TEUs in January and 1.85 million TEUs in February.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8fd4291a-fe85-42be-bbea-ccd1a61de56d"></dynamic-object></div>The US-China trade deal announced last week spurred US retailers to move quickly on imports they need in the short term, but the effect was limited. The one-year halving of the so-called “fentanyl tax” on imports from China still leaves the tariff rate at approximately 47%, which is higher than the levies on imports from other Asian source countries tapped by US retailers. The GPT covers the ports of Los Angeles/Long Beach, Oakland, and Seattle and Tacoma on the West Coast; New York/New Jersey, the Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast; and Houston on the Gulf Coast. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

US retailers are throttling back post-winter holiday restocking despite anticipating strong sales for the upcoming holiday season, planning to import less than 2 million TEUs monthly through March. The latest Global Port Tracker (GPT), published on Friday by Hackett Associates and the National Retail Federation (NRF), projected double-digit declines in imports for the rest of the year and no growth in early 2026, with volumes expected to fall steadily to 1.79 million TEUs in March. Months of frontloading explain the harsher-than-usual import slowdown for the final months of this year, but uncertain consumer sentiment and ever-changing US tariff policy are keeping retail inventories running lean. US container volumes, which initially rose earlier in the year thanks to cargo frontloading to avoid higher tariffs — surging 3.7% year over year in the first half — will end the year down 2.3% from 2024, according to the GPT. The Trump administration’s shifting tariff policy makes “market forecasting highly uncertain,” Ben Hackett, founder of Hackett Associates, said in a statement. “Our trade outlook is for a small decline in imports this year compared with 2024 and a further, larger decline in the first quarter of 2026,” he said. US imports this month and in December will plunge 14.4% and 19.9%, respectively, from a year ago, according to the GPT. The volumes compare poorly with the year-earlier period partly because cargo was frontloaded last year due to labor woes, notably a brief port strike along the US East and Gulf coasts. Strong sales, weak replenishing US retail sales this year will top $1 trillion, expanding approximately 3% to 4% from last year, according to a GPT analysis released Thursday. US consumer sentiment is weakening, however, with a preliminary November reading from the University of Michigan’s index showing weakness from October due to heightened concerns over the more than five-week government shutdown. In the face of mixed US economic signals and fluctuating tariff policy, US retailers have been playing it safe when it comes to restocking. US inventory-to-sales ratios for retailers have hovered between 1.28 and 1.32, according to the US Bureau of Economic Analysis, suggesting that despite the frontloading of imports in the first half of the year, importers are keeping stocks lean. That strategy seems to extend into 2026, when GPT forecasts imports will fall to 1.98 million TEUs in January and 1.85 million TEUs in February. The US-China trade deal announced last week spurred US retailers to move quickly on imports they need in the short term, but the effect was limited. The one-year halving of the so-called “fentanyl tax” on imports from China still leaves the tariff rate at approximately 47%, which is higher than the levies on imports from other Asian source countries tapped by US retailers. The GPT covers the ports of Los Angeles/Long Beach, Oakland, and Seattle and Tacoma on the West Coast; New York/New Jersey, the Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast; and Houston on the Gulf Coast. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Port News

Container lines

Trans-Atlantic

Trans-Pacific

North American ports

US retailers throttle back on imports amid uncertain consumer sentiment

<div class="phx-topic abstract-wrapper">Daniel Elliott III told a webinar that the proposed $85 billion merger is “leaning more toward approval” because of the White House’s support. </div>

Daniel Elliott III told a webinar that the proposed $85 billion merger is “leaning more toward approval” because of the White House’s support.

<div class="phx-topic">A former chairman of the US Surface Transportation Board (STB) said the proposed merger between Union Pacific Railroad (UP) and Norfolk Southern Railway (NS) is likely to win regulatory approval, citing President Donald Trump’s influence and the political alignment of the current board. Daniel Elliott III, who served two nonconsecutive terms as STB chairman between 2009 and 2017, told a webinar Thursday that the $85 billion transaction is “leaning more toward approval” because of the administration’s support. The webinar was hosted by Breakthrough, a supply chain optimization and transportation advisory firm that advises major shippers on freight strategy and fuel management. “If this administration shows support for the merger, it’ll be very difficult for the STB to say, ‘Oh no, I’m not going to vote that way,’” Elliott said. “Right now, it’s leaning more towards approval of the merger because of the influence the most powerful man can have on just about anything that happens in Washington, DC.” UP wants to <a href="https://www.joc.com/article/up-ceo-pushing-to-file-formal-ns-merger-application-by-dec-1-6102362">file the merger application by Dec. 1</a>, although the STB is closed during the government shutdown and its work backlog grows by the day. The timeline for a final decision hasn’t been set, but most likely would not come until 2027. Trump voiced support for the deal after meeting UP CEO Jim Vena in the Oval Office in September. Union Pacific, interestingly, is listed among the corporate donors for the construction of the new 90,000-square-foot White House ballroom, a privately-funded initiative by the Trump administration that has caused controversy because it involved the demolition of the East Wing of the White House. The proposed UP-NS mega-merger has divided the rail industry. BNSF Railway and Canadian Pacific Kansas City have publicly opposed the deal, while Canadian National Railway and CSX Transportation have discussed protecting the interests of their shippers during the application review process. The US’ largest rail union, SMART-TD, and major intermodal partners including Hub Group and Knight Swift, support the transaction. Elliott said the growing partnership demonstrated recently between BNSF and CSX is aimed at showing regulators that the same benefits can be achieved without consolidation. “If this thing is approved, BNSF will be pretty much forced, I think, to merge with CSX at that point to remain on the same footing,” he said. “You don’t want to give anything away by letting Union Pacific have an advantage. That would mean that there are two railroads carrying about 95% of the freight traffic in the United States — kind of like the Canadians are with CN and CPKC.” <h3>STB nominees say they’ll be objective </h3>Meanwhile, at a Senate Commerce Committee hearing Thursday, two Trump nominees to the STB — Bruce Kloster and Michelle Schultz — pledged not to prejudge the UP-NS matter before reviewing the formal merger application. Kloster would be a new member to the board, while Schultz has been renominated for a second term after initially being nominated to the STB at the end of Trump’s first term. “My commitment to you and to this committee would be to be objective, to be fair, to be impartial, to do all the research and analysis to come up with the right decision regarding this merger,” said Kloster. “Absolutely, I will treat it with independence and impartiality.” Schultz echoed those comments. “In all matters that come before the board, I review the evidentiary record, the comments that are filed on the docket and the applicable law and statutes, and I will be prepared to do so in this case as well,” she said. Both nominees said the post-2001 STB merger rules, which put in place a stricter framework for major rail combinations, would govern their review. It will be the first test of those rules because the Canadian Pacific-Kansas City Southern transaction approved by the STB in 2023 was deemed a “minor” transaction. The stricter standards for major transactions require railroads to not merely avoid harming competition, but to demonstrate how a merger would enhance competition. The railroads must also submit detailed service plans to prevent disruption during an integration. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

A former chairman of the US Surface Transportation Board (STB) said the proposed merger between Union Pacific Railroad (UP) and Norfolk Southern Railway (NS) is likely to win regulatory approval, citing President Donald Trump’s influence and the political alignment of the current board. Daniel Elliott III, who served two nonconsecutive terms as STB chairman between 2009 and 2017, told a webinar Thursday that the $85 billion transaction is “leaning more toward approval” because of the administration’s support. The webinar was hosted by Breakthrough, a supply chain optimization and transportation advisory firm that advises major shippers on freight strategy and fuel management. “If this administration shows support for the merger, it’ll be very difficult for the STB to say, ‘Oh no, I’m not going to vote that way,’” Elliott said. “Right now, it’s leaning more towards approval of the merger because of the influence the most powerful man can have on just about anything that happens in Washington, DC.” UP wants to file the merger application by Dec. 1 , although the STB is closed during the government shutdown and its work backlog grows by the day. The timeline for a final decision hasn’t been set, but most likely would not come until 2027. Trump voiced support for the deal after meeting UP CEO Jim Vena in the Oval Office in September. Union Pacific, interestingly, is listed among the corporate donors for the construction of the new 90,000-square-foot White House ballroom, a privately-funded initiative by the Trump administration that has caused controversy because it involved the demolition of the East Wing of the White House. The proposed UP-NS mega-merger has divided the rail industry. BNSF Railway and Canadian Pacific Kansas City have publicly opposed the deal, while Canadian National Railway and CSX Transportation have discussed protecting the interests of their shippers during the application review process. The US’ largest rail union, SMART-TD, and major intermodal partners including Hub Group and Knight Swift, support the transaction. Elliott said the growing partnership demonstrated recently between BNSF and CSX is aimed at showing regulators that the same benefits can be achieved without consolidation. “If this thing is approved, BNSF will be pretty much forced, I think, to merge with CSX at that point to remain on the same footing,” he said. “You don’t want to give anything away by letting Union Pacific have an advantage. That would mean that there are two railroads carrying about 95% of the freight traffic in the United States — kind of like the Canadians are with CN and CPKC.” STB nominees say they’ll be objective Meanwhile, at a Senate Commerce Committee hearing Thursday, two Trump nominees to the STB — Bruce Kloster and Michelle Schultz — pledged not to prejudge the UP-NS matter before reviewing the formal merger application. Kloster would be a new member to the board, while Schultz has been renominated for a second term after initially being nominated to the STB at the end of Trump’s first term. “My commitment to you and to this committee would be to be objective, to be fair, to be impartial, to do all the research and analysis to come up with the right decision regarding this merger,” said Kloster. “Absolutely, I will treat it with independence and impartiality.” Schultz echoed those comments. “In all matters that come before the board, I review the evidentiary record, the comments that are filed on the docket and the applicable law and statutes, and I will be prepared to do so in this case as well,” she said. Both nominees said the post-2001 STB merger rules, which put in place a stricter framework for major rail combinations, would govern their review. It will be the first test of those rules because the Canadian Pacific-Kansas City Southern transaction approved by the STB in 2023 was deemed a “minor” transaction. The stricter standards for major transactions require railroads to not merely avoid harming competition, but to demonstrate how a merger would enhance competition. The railroads must also submit detailed service plans to prevent disruption during an integration. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

North-American rail

Intermodal providers

Surface

Trump support likely to get UP-NS deal approved: ex-STB chairman

<div class="phx-topic abstract-wrapper">With its unit costs falling in the aftermath of its alliance with Hapag-Lloyd, the carrier is becoming more confident in discussions with customers on charging a premium for services that in the third quarter came with schedule reliability of about 90%.</div>

With its unit costs falling in the aftermath of its alliance with Hapag-Lloyd, the carrier is becoming more confident in discussions with customers on charging a premium for services that in the third quarter came with schedule reliability of about 90%.

<div class="phx-topic">Maersk is edging closer to charging a premium for providing industry-leading schedule reliability as the carrier unlocks unit cost savings across its Gemini Cooperation network. Maersk CEO Vincent Clerc said the carrier has “broken some efficiency frontier” as the Gemini network launched with partner Hapag-Lloyd in February was fully phased in on east-west trade lanes during the third quarter. “From a cost perspective, I think it’s a pretty significant lever that we have unlocked ... this has legs to continue into the coming quarters,” Clerc told analysts on <a href="https://www.joc.com/article/maersk-boosts-earnings-guidance-on-higher-container-volume-growth-6110653">Maersk’s third-quarter earnings</a> call Thursday. With its unit costs falling, Maersk is becoming more confident in discussions with customers about charging a premium for services that came with schedule reliability of about 90% in the third quarter. While conversations with customers around a premium are already underway, Clerc said the current on-time performance would need to be sustained before such a charge could be rolled out. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” he told analysts. “For instance, today every customer has buffer stock, and that reliability needs to unlock a reduction in that buffer stock,” Clerc added. “They need to trust that [Gemini] has weathered sufficient ups and downs and is steady [so] that they can take out some of that buffer stock.” <h3>Tapping into savings </h3>If shippers could pocket those savings, Clerc said Maersk would be able to tap into those savings in the form of a premium. “That process is starting. It’s a long-haul process, but certainly where we see some potential to capture value,” he noted. “Not everything [in Gemini] is fully in a place where value has been unlocked, but we are very positive with the discussions so far." Clerc said from a unit cost perspective, he would need one or two more quarters of data from Maersk and its rivals to see who was holding the upper hand. But the CEO was confident Maersk would remain in front. “What we can see with the numbers that have been released so far is that we’re making more progress on unit costs than what [competitors are] making, and we attribute this to Gemini, which is the big thing that we did to lower our unit costs,” he said. “We’re quite positive that with Gemini we’re opening a gap now that is going to be quite handy, especially in the current rate environment, and we will continue to work at making it as big as possible,” Clerc added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Maersk is edging closer to charging a premium for providing industry-leading schedule reliability as the carrier unlocks unit cost savings across its Gemini Cooperation network. Maersk CEO Vincent Clerc said the carrier has “broken some efficiency frontier” as the Gemini network launched with partner Hapag-Lloyd in February was fully phased in on east-west trade lanes during the third quarter. “From a cost perspective, I think it’s a pretty significant lever that we have unlocked ... this has legs to continue into the coming quarters,” Clerc told analysts on Maersk’s third-quarter earnings call Thursday. With its unit costs falling, Maersk is becoming more confident in discussions with customers about charging a premium for services that came with schedule reliability of about 90% in the third quarter. While conversations with customers around a premium are already underway, Clerc said the current on-time performance would need to be sustained before such a charge could be rolled out. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” he told analysts. “For instance, today every customer has buffer stock, and that reliability needs to unlock a reduction in that buffer stock,” Clerc added. “They need to trust that [Gemini] has weathered sufficient ups and downs and is steady [so] that they can take out some of that buffer stock.” Tapping into savings If shippers could pocket those savings, Clerc said Maersk would be able to tap into those savings in the form of a premium. “That process is starting. It’s a long-haul process, but certainly where we see some potential to capture value,” he noted. “Not everything [in Gemini] is fully in a place where value has been unlocked, but we are very positive with the discussions so far." Clerc said from a unit cost perspective, he would need one or two more quarters of data from Maersk and its rivals to see who was holding the upper hand. But the CEO was confident Maersk would remain in front. “What we can see with the numbers that have been released so far is that we’re making more progress on unit costs than what [competitors are] making, and we attribute this to Gemini, which is the big thing that we did to lower our unit costs,” he said. “We’re quite positive that with Gemini we’re opening a gap now that is going to be quite handy, especially in the current rate environment, and we will continue to work at making it as big as possible,” Clerc added. Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Value unlocked by Gemini will clear path for premium charge: Maersk CEO

Use code GTW595 at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code FSW30 at checkout to save 30% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

FALL SALE EXTENDED

Use code FSW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Wide Box

SUBSCRIBE TODAY

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code FSW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Subscribe Now - Anonymous to Gold - Wide Box

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>

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

In 1995, we began operations with a clear vision: to grow alongside Mexico and connect the world through our terminals. Our priority has always been to deliver excellence in service, foster economic development, and strengthen our communities. We firmly believe that progress is not only measured in tons of cargo moved, but in the opportunities we create. _______________________________________________________________ This year marks a significant milestone: SSA Marine Mexico celebrates 30 years of presence in the country, having established itself from day one as the leading port operator nationwide. Over the past three decades, we have built a legacy of reliability, innovation, and commitment to Mexico’s growth. Our journey has been defined by continuous evolution and a steadfast dedication to our mission. SSA Marine México currently operates in six of the country’s most important ports: Cozumel, Lazaro Cardenas, Manzanillo, Progreso, Tuxpan, and Veracruz. Additionally, we have signed a concession to operate a new multipurpose terminal in Guaymas, Sonora, expanding our footprint to the north of the country. We serve a wide range of segments including containers, general cargo, automobiles, cruise ships, hydrocarbons, and asphalt. As part of this ongoing commitment, SSA Marine Mexico continues to strengthen its infrastructure and capabilities. International trade remains a key driver of global economic growth, and we are proud to support this momentum. Through our continuous improvement strategy, we invest in cutting-edge technology and equipment to deliver more efficient and competitive services, contributing to the success of Mexican businesses. •	Manzanillo, Colima- Specialized Container Terminal I: On October 13, we celebrated the arrival of two new STS (Ship To Shore) Super Post Panamax dockside cranes. This $21.2 million USD investment significantly boosts our operational capacity, streamlining cargo reception and delivery processes. In line with our modernization efforts, we will also retire four of our oldest cranes, paving the way for a more sustainable and technologically advanced fleet that meets the evolving demands of international trade. With these upgrades, SSA Marine México now operates a total of 16 cranes along our 1,350-meter dock, reaffirming our position as a national benchmark in port <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982635607_Manzanillo.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> •	As for the Multipurpose Terminal and Specialized Facility, also in Manzanillo, Colima, improvement and conditioning works are planned, along with the acquisition of four E-RTG (Electric Rubber-Tyred Gantry) cranes to enhance operational efficiency and sustainability. •	At our Automobile and General Cargo Terminal in the port of Veracruz, we continue to lead with specialized value-added services that support our clients’ growth. Recent investments include a new washing cabin and a general cargo warehouse, increasing indoor storage capacity by 67%. •	Lazaro Cardenas, Michoacan – Specialized Automobile Terminal: we are working on the development of an additional 4-hectare storage space within our bonded area and a 10-hectare Vehicle Distribution Center (VDC). These enhancements, along with ongoing personnel and system improvements, will reinforce our leadership in automotive handling across the Mexican Pacific coast.<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982742240_Lazaro.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> Through these strategic investments, SSA Marine Mexico reaffirms its commitment to the sustained growth of Mexico’s foreign trade. By expanding capacity, modernizing infrastructure, and diversifying services, we continue to strengthen the country’s competitiveness in global logistics. Today, we celebrate three decades of dedication, innovation, and leadership, with deep gratitude to our employees, clients, and partners for being part of this incredible journey. LINK: https://www.ssamarine.mx/<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1760982787360_SSA%20Marine%20Mexico%20logo%20150pxW.png" alt="" class="joc_admin__inline-image-inherit">

Manzanillo.jpg

SSA Marine Mexico: 30 years growing together.

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

FALL SALE EXTENDED: Use code FSW30 to save 30% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

SUBSCRIBE AND SAVE

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

SUBSCRIBE TODAY: Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Offer Box

UPGRADE TO GOLD AND SAVE: Use code GTW595 at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

Subscribe Now - Anonymous to Gold - Offer Box

FALL SALE EXTENDED: Use code FSW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

FALL SALE EXTENDED: Use codeFSW995 at checkout to save $500 on a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

TPM Conference - Rectangle Box

Attend TPM26

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

The Journal of Commerce’s air cargo news covers the movement of air cargo, including air cargo shipping, air cargo carriers, air freight forwarders, air freight, air shipments, cargo airports and cargo news. It also tracks air cargo trends, air freight news, shifting of cargo between air and ocean, airports and airfreight delays and congestion.

Journal of Commerce offers extensive air freight forwarder news and analysis of air cargo forwarding, including topics such as strategies, capacity, services.

Air Cargo Forwarder News | Journal of Commerce

Air Cargo Forwarder News

Stay informed with air cargo carriers news. Journal of Commerce covers updates on air cargo carriers, air craft carrier capacity, rates routings and technology.

Air Cargo Carriers News | Journal of Commerce

Air Cargo Carriers News

Get the latest air cargo news and analysis with JOC. From carriers to trends, get insights into air freight news, air cargo shipping, and more.

Latest News

More News & Analysis

Rise in Arctic MPV transits comes despite challenges of ice navigation

Penalties for pests found in project cargo packing adds to shipper woes

US retailers throttle back on imports amid uncertain consumer sentiment