<div class="phx-topic abstract-wrapper">I am sitting in a United Airlines plane flying over the Pacific on its way to Tokyo, trying to keep </div>

I am sitting in a United Airlines plane flying over the Pacific on its way to Tokyo, trying to keep

<div>I am sitting in a United Airlines plane flying over the Pacific on its way to Tokyo, trying to keep my promise to some 30 students at Mount Union College in Alliance, Ohio. I gave them my word that if they wrote about the unification of markets among the 12 nations of the European Community, scheduled to be implemented Jan. 1, 1993, I would read their papers and write a column about them.The students are taking a marketing course taught by Capt. Robert E. Hart, who is in his second year of teaching at Mount Union College. I became friends...

I am sitting in a United Airlines plane flying over the Pacific on its way to Tokyo, trying to keep my promise to some 30 students at Mount Union College in Alliance, Ohio. I gave them my word that if they wrote about the unification of markets among the 12 nations of the European Community, scheduled to be implemented Jan. 1, 1993, I would read their papers and write a column about them. The students are taking a marketing course taught by Capt. Robert E. Hart, who is in his second year of teaching at Mount Union College. I became friends with Mr. Hart while he served as president and chief executive of the Marine Index Bureau Inc. here in Manhattan. He had held that job since 1968 before retiring last year.Before that, Mr. Hart was with American Export Lines, a job he took after spending 20 yearsas a U.S. Naval officer. During World War II, Mr. Hart skippered a small landing craft with 30 GIs onto Omaha Beach on D-Day, as well as an attack cargo ship during the invasion of Samar in the Philippines. When Mr. Hart begins teaching his marketing class at Mount Union, a class that primarily concentrates on the trade markets of the world, he encourages his students to read The Journal of Commerce. "The students were into reading the Wall St. Journal, which is fine if you are studying investments in securities," he said. "But when you are going to a school in the heartland of America and are trying to become more knowledgeable about world trade, you've got to read The Journal of Commerce." Since the students are now reading our paper, I felt an obligation to read what they had to say about EC '92. But Mr. Hart did not give me the papers until three days before I was to leave for an 18-day stay in Japan under the auspices of the International Press Institute and the Japan Newspaper Publishers & Editors Association. So, I am sitting on the plane writing this column on my laptop computer. Mr. and Mrs. America, (as Walter Winchell used to say), you will be pleased to know that the United States is in good hands. These students are nothing but optimistic when considering what could be a frightening time for American business. "Breaking down trade barriers, of course, is not an easy task," writes Skip Dowd. "Each country, of course, has its own separate interests and in most cases its own currencies . . . I don't believe that this should be viewed as a monopolistic move, such as OPEC in the 1970s. There are few similarities. If the EC succeeds, trading and buying will become efficient." "I personally can't wait for this European market to mature," writes Jeff Chenevey. "I will probably be in the computer market by then and the boost (in business) will be tremendous." Michael Rogers predicts that the efficiencies from easier distribution of goods and reduced problems at border crossings will save Europe $150 billion a year. Jackie Middleton says, "Trade opportunities will be limitless for U.S. companies." Doug Nelson is more philosophical. "Everybody is thinking of the new business, trade and (hopefully) profit. But what about the many side effects. For example, the effect that EC '92 will force on education to force emphasis on the international areas." Hirohisa Furukawa, a graduate student, figures the United States will be able to take advantage of Europe's open market policy better than Japan. "Japan is further from Europe than the United States and also has very special business habits, which sometimes bother European business persons. . . . In short, the trade barriers tumbling will give the best opportunities to the United States. However, at the same time, it must be the best chance for Japanese companies to expand their market to Europe. I wonder whether Japan will be bashed by Europe." Don Everetts says, "Now is the perfect time for the United States to get its foot in the door before the madness of 1992 comes to be. This has already affected the United States in a major way. The country's largest accounting firms are beginning to combine to form huge firms . . . to prepare for the rough competition ahead." Jennifer Opatrny sees EC '92 permitting large multinational corporations to expand their markets "while letting small U.S. companies have the opportunity to try the European market." Duane Jonnson perhaps gives the clearest explanation of EC '92. "This has the potential to be a tremendous opportunity for business due to the fact that distribution of goods and services is now going to be made so much easier. No longer will a firm have to deal with 12 different sets of regulations, laws, taxes and economic systems in order to get their products to a consumer. Instead market strategies can be developed to take advantage of all of western Europe rather than one separate country." The final words come from Matt McCallum. "Good luck EC '92 and thank you for opening many opportunities. Stanford Erickson is editor of The Journal of Commerce.

LIMITLESS PROMISE FOR EC '92

<div class="phx-topic abstract-wrapper">But a rise in demand for general cargo will not be enough to offset the sharp decline in e-commerce shipments that followed the US clampdown in May on low-value imports from China. </div>

But a rise in demand for general cargo will not be enough to offset the sharp decline in e-commerce shipments that followed the US clampdown in May on low-value imports from China.

Feature image

<div class="phx-topic">MUNICH — Trans-Pacific air cargo demand is showing signs of recovery amid restocking efforts in the US, with airlines bringing back some of the freighter capacity that had been shifted out of the trade lane to serve strengthening general cargo markets. But the volume generated by seasonal tech product launches, semiconductors, perishables and pharma — and boosted by shippers being forced into the air <a href="https://www.joc.com/article/pause-in-tariff-hikes-drives-big-gains-in-trans-pacific-spot-rates-6017111">as China-US ocean space tightens</a> — will not replace the massive demand for e-commerce that filled dozens of freighters per day, according to Airbus. “E-commerce has been driving freight demand over the past years, and the big question out there is what's going to happen to it,” Oliver von Tronchin, head of freighter marketing at the French aircraft manufacturer, told an Air Cargo Europe panel at the Transport Logistic exhibition this week. “What we are looking at is the change to the de minimis rule and the European equivalent, and if a $2.75 item is left with $100 flat fee from the US, people will not buy that item,” he added. After eliminating the duty-free exemption for low-value shipments from China valued at under $800 on May 2, the US on May 14 reduced the de minimis tariff on the low-value imports from 120% to 54%. Items sent via post from China to the US will be charged a flat fee of $100, regardless of value. The European Union is proposing a €2 handling fee for small parcels under €150 from China that would be paid by online retailers, such as Shein and Temu, but Brussels has not set an implementation date. In 2024, e-commerce shipments accounted for about 50% of China to US air freight volume, according to rate benchmarking platform Xeneta. Since the duty-free status of low-value Chinese imports was revoked in May, the volume has declined. The drop in trans-Pacific air freight is a leading factor in the International Air Transport Association’s (IATA) forecast of little to no growth in global air cargo volume for 2025, a huge climbdown from the 12% jump in year over year demand in 2024. <h3>Challenge to match supply and demand </h3>Airlines are trying to match supply with demand, but on the trans-Pacific are not being helped by the policy changes emanating from the White House. China-US tonnage in mid-May was down 25% year over year, with freighter capacity down 40%, according to Cargo Facts Consulting. As volume began to recover over the last two weeks, it encouraged carriers to bring back freighters, but with e-commerce demand muted, most of the returning lift was serving general cargo. C.H. Robinson noted in a market update this week that airlines were being cautious in adding capacity as demand recovers, with that balancing act expected to tighten available space and push rates higher throughout June, especially for non-priority shipments. The forwarder warned that end-of-quarter demand and tariff deadlines will likely create bottlenecks for last-minute bookings on China-US routes and advised shippers to explore alternate routes through Southeast Asia and book space two to three weeks in advance. The rising demand on the trans-Pacific can be seen in data from air cargo analyst Rotate, which shows an 11% increase in air cargo capacity on the Asia-North America route last week compared with the average capacity deployed over the previous four weeks. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="d1642275-60f0-447f-84f8-8fd17fcb6d8f"></dynamic-object></div>China to US spot rates are rising in tandem with the increasing demand; as of June 1, they were up 14% from the first week of May at $4.31 per kilogram, according to Xeneta. Nadeem Sultan, senior vice president of cargo planning and freighters at Emirates SkyCargo, said general air freight volume was growing on Asia-North America, but airlines remained in a holding pattern regarding the tariffs. ”We are seeing that demand rise, but right now, everybody is waiting until mid-August when the 90-day pause in (China) tariffs ends to see what the permanent rule is going to be,” he said. "Depending on what the politicians say over the coming weeks, corporate companies are going to decide how high the risk is and whether they should be frontloading or not,” Sultan added. “But it is too early for them to make that decision now and I would say by the middle of July we will have more clarity.” <h3>E-commerce is ‘a way of life’ </h3>While e-commerce volume is currently under pressure, airlines and aircraft manufacturers at Air Cargo Europe were bullish on future air cargo demand. “Overall, e-commerce is still robust and will still be a sizable driver within air freight in the years ahead,” von Tronchin said. “It has become a way of life, and we're used to that way of life, and I don't think any of us are necessarily going to change it.” Jannie Davel, CEO of MSC Air Cargo, agreed, noting that e-commerce would remain a core component of air freight, and that the market would rebalance, although not to the high demand of the past. Davel added that shippers of general cargo were also adapting to changing trade flows as the tariffs forced Asian manufacturers to adjust production strategies. “We are seeing a lot of high-tech manufacturing shifting out of China to South Asia, so even if the tariffs are maintained, the trade will still be there,” he said. “It will maybe take some time to adjust, but then it will balance out.” The bullish view on air cargo demand was shared by Boeing and Airbus. Even with the US-China trade war roiling international markets and changing demand patterns, the plane makers have left their 20-year market forecasts unchanged. John Purdoch, director of product marketing of freighters at Boeing, said all the fundamentals in the market remained in place to support long-term growth. “Over the next 20 years, almost 3,000 new freighters will enter the market in all segments, and over 800 of those in the large, wide-body space,” Purdoch said. “We believe we are on a long-term growth path of 4% growth year over year for the next 20 years.” Von Tronchin said Airbus was “in the long-term game,” adding that the current disruptions to the market were temporary. "Our global market forecast is for 20 years, and as we saw in COVID-19 and after the financial crisis, air cargo has always come back to a trend of 3% to 4% growth per year,” he said. “Air cargo will remain a growth industry, independent of the short-term effects we are seeing.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

MUNICH — Trans-Pacific air cargo demand is showing signs of recovery amid restocking efforts in the US, with airlines bringing back some of the freighter capacity that had been shifted out of the trade lane to serve strengthening general cargo markets. But the volume generated by seasonal tech product launches, semiconductors, perishables and pharma — and boosted by shippers being forced into the air as China-US ocean space tightens — will not replace the massive demand for e-commerce that filled dozens of freighters per day, according to Airbus. “E-commerce has been driving freight demand over the past years, and the big question out there is what's going to happen to it,” Oliver von Tronchin, head of freighter marketing at the French aircraft manufacturer, told an Air Cargo Europe panel at the Transport Logistic exhibition this week. “What we are looking at is the change to the de minimis rule and the European equivalent, and if a $2.75 item is left with $100 flat fee from the US, people will not buy that item,” he added. After eliminating the duty-free exemption for low-value shipments from China valued at under $800 on May 2, the US on May 14 reduced the de minimis tariff on the low-value imports from 120% to 54%. Items sent via post from China to the US will be charged a flat fee of $100, regardless of value. The European Union is proposing a €2 handling fee for small parcels under €150 from China that would be paid by online retailers, such as Shein and Temu, but Brussels has not set an implementation date. In 2024, e-commerce shipments accounted for about 50% of China to US air freight volume, according to rate benchmarking platform Xeneta. Since the duty-free status of low-value Chinese imports was revoked in May, the volume has declined. The drop in trans-Pacific air freight is a leading factor in the International Air Transport Association’s (IATA) forecast of little to no growth in global air cargo volume for 2025, a huge climbdown from the 12% jump in year over year demand in 2024. Challenge to match supply and demand Airlines are trying to match supply with demand, but on the trans-Pacific are not being helped by the policy changes emanating from the White House. China-US tonnage in mid-May was down 25% year over year, with freighter capacity down 40%, according to Cargo Facts Consulting. As volume began to recover over the last two weeks, it encouraged carriers to bring back freighters, but with e-commerce demand muted, most of the returning lift was serving general cargo. C.H. Robinson noted in a market update this week that airlines were being cautious in adding capacity as demand recovers, with that balancing act expected to tighten available space and push rates higher throughout June, especially for non-priority shipments. The forwarder warned that end-of-quarter demand and tariff deadlines will likely create bottlenecks for last-minute bookings on China-US routes and advised shippers to explore alternate routes through Southeast Asia and book space two to three weeks in advance. The rising demand on the trans-Pacific can be seen in data from air cargo analyst Rotate, which shows an 11% increase in air cargo capacity on the Asia-North America route last week compared with the average capacity deployed over the previous four weeks. China to US spot rates are rising in tandem with the increasing demand; as of June 1, they were up 14% from the first week of May at $4.31 per kilogram, according to Xeneta. Nadeem Sultan, senior vice president of cargo planning and freighters at Emirates SkyCargo, said general air freight volume was growing on Asia-North America, but airlines remained in a holding pattern regarding the tariffs. ”We are seeing that demand rise, but right now, everybody is waiting until mid-August when the 90-day pause in (China) tariffs ends to see what the permanent rule is going to be,” he said. "Depending on what the politicians say over the coming weeks, corporate companies are going to decide how high the risk is and whether they should be frontloading or not,” Sultan added. “But it is too early for them to make that decision now and I would say by the middle of July we will have more clarity.” E-commerce is ‘a way of life’ While e-commerce volume is currently under pressure, airlines and aircraft manufacturers at Air Cargo Europe were bullish on future air cargo demand. “Overall, e-commerce is still robust and will still be a sizable driver within air freight in the years ahead,” von Tronchin said. “It has become a way of life, and we're used to that way of life, and I don't think any of us are necessarily going to change it.” Jannie Davel, CEO of MSC Air Cargo, agreed, noting that e-commerce would remain a core component of air freight, and that the market would rebalance, although not to the high demand of the past. Davel added that shippers of general cargo were also adapting to changing trade flows as the tariffs forced Asian manufacturers to adjust production strategies. “We are seeing a lot of high-tech manufacturing shifting out of China to South Asia, so even if the tariffs are maintained, the trade will still be there,” he said. “It will maybe take some time to adjust, but then it will balance out.” The bullish view on air cargo demand was shared by Boeing and Airbus. Even with the US-China trade war roiling international markets and changing demand patterns, the plane makers have left their 20-year market forecasts unchanged. John Purdoch, director of product marketing of freighters at Boeing, said all the fundamentals in the market remained in place to support long-term growth. “Over the next 20 years, almost 3,000 new freighters will enter the market in all segments, and over 800 of those in the large, wide-body space,” Purdoch said. “We believe we are on a long-term growth path of 4% growth year over year for the next 20 years.” Von Tronchin said Airbus was “in the long-term game,” adding that the current disruptions to the market were temporary. "Our global market forecast is for 20 years, and as we saw in COVID-19 and after the financial crisis, air cargo has always come back to a trend of 3% to 4% growth per year,” he said. “Air cargo will remain a growth industry, independent of the short-term effects we are seeing.” Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo

Signs of air cargo recovery on the trans-Pacific as freighter aircraft return

<div class="phx-topic abstract-wrapper">Client relationships have not been harmed by tariffs because shippers and carriers recognize the need for additional and unexpected costs to be passed through the supply chain.</div>

Client relationships have not been harmed by tariffs because shippers and carriers recognize the need for additional and unexpected costs to be passed through the supply chain.

<div class="phx-topic">Trade tariffs — much maligned by shippers and carriers alike — are helping to raise awareness of the influence of external factors in pricing and operations in the project cargo industry, experts in the sector say. Alessio Bianchi, managing director for project cargo forwarder DCS Liburnus, told the Journal of Commerce that it is now easier to communicate to clients that these new costs are an industry-wide challenge, not a personal dispute. ”We are telling clients ‘This is not about me, it’s not about you, it’s something that we have to cope with,’” he said. Unforeseen expenses, especially tariffs, are increasingly being passed directly to the client. Thomas Parlow, managing director for TP Shipping, said when making budgetary calls to clients, his team now stresses that any kind of new tariffs, including those proposed to be levied on vessels calling the US, will be for the client's account. In response to the US Trade Representative’s proposed port tax on Chinese-built vessels calling at US ports — currently in its third draft — charterers are now laser-focused on the build origin of multipurpose and heavy-lift vessels. ”It’s all ‘where was it built?,’” said Mathias Audrain, commercial business development director at Companie Maritime Nantaise. As an asset owner, Audrain noted that none of the company’s roll-on/roll-off or container-ro/ro fleet was built in China. He added that it is important to distinguish between port fees for the vessel and for the cargo, acknowledging that these unexpected changes are creating "some surprise" for charterers. The political landscape, he noted, is “suddenly changing the rules of the game.” Speaking to the Journal of Commerce, the project cargo specialists shared concerns that there are no US-built vessels with heavy lift capacity, “except for the ones that are specifically built for the US military operations," Parlow said. This scarcity could drive up costs for US-bound project cargo; Kyriakos Kalis, director at project cargo forwarder Cosmatos, warned that limiting tonnage would inevitably lead to higher prices for goods reaching the US. <h3>Tax questions still circulating </h3>The ripple effects of the proposed fees and tariffs on the project cargo sector extend to broader trade dynamics. Rajesh Vaidyanathan Iyer, from the projects and logistics cluster at Khimji Ramdas, an Oman conglomerate with a project forwarding arm, highlighted the unique position of Middle Eastern countries with existing free trade agreements with the US, such as Oman and Bahrain. He added that there are ongoing inquiries to the US embassies in Middle Eastern countries regarding the potential effects on tax exemption treaties that countries in the region currently have with the US. Despite the volatility, there’s a strong desire for stability. Bianchi expressed a common hope. ”The general consensus is that at a certain point, everything will stabilize,” he said. “We don’t need high rates or low rates. It’s stable rates.” The current climate is also spurring strategic shifts in project cargo manufacturing. Iyer has observed "renewed interest from (India and China) to set up factories in the Middle East," due to the more favorable tariff regime for the region. An influx of investment, particularly in free zones in the UAE and Oman, is creating new project opportunities for the logistics sector, with several companies already committing to setting up factories, he said. Decarbonization efforts are a key driver of demand, particularly evident in the growing size of wind turbine components. Iyer pointed out that wind blades in the Middle East are often 95 meters plus, significantly larger than the 60- to 70-meter blades commonly used in parts of the US. Kalis highlighted the transport challenges posed by longer blades, which are "not so easy to transport in all countries." The nature of cargo handling is also evolving. Bianchi noted that many large container ships, primarily built in China, could face significant costs if they are tariffed for every call, impacting project cargo component prices. ”A lot of container ships are now carrying breakbulk pieces,” he said, noting that was due to increased terminal lifting capacities that made it possible to accommodate larger cargoes on those vessels. Audrain said that container lines are developing expertise to handle diverse project cargo, and are even dedicating space on ships for specific projects. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Trade tariffs — much maligned by shippers and carriers alike — are helping to raise awareness of the influence of external factors in pricing and operations in the project cargo industry, experts in the sector say. Alessio Bianchi, managing director for project cargo forwarder DCS Liburnus, told the Journal of Commerce that it is now easier to communicate to clients that these new costs are an industry-wide challenge, not a personal dispute. ”We are telling clients ‘This is not about me, it’s not about you, it’s something that we have to cope with,’” he said. Unforeseen expenses, especially tariffs, are increasingly being passed directly to the client. Thomas Parlow, managing director for TP Shipping, said when making budgetary calls to clients, his team now stresses that any kind of new tariffs, including those proposed to be levied on vessels calling the US, will be for the client's account. In response to the US Trade Representative’s proposed port tax on Chinese-built vessels calling at US ports — currently in its third draft — charterers are now laser-focused on the build origin of multipurpose and heavy-lift vessels. ”It’s all ‘where was it built?,’” said Mathias Audrain, commercial business development director at Companie Maritime Nantaise. As an asset owner, Audrain noted that none of the company’s roll-on/roll-off or container-ro/ro fleet was built in China. He added that it is important to distinguish between port fees for the vessel and for the cargo, acknowledging that these unexpected changes are creating "some surprise" for charterers. The political landscape, he noted, is “suddenly changing the rules of the game.” Speaking to the Journal of Commerce, the project cargo specialists shared concerns that there are no US-built vessels with heavy lift capacity, “except for the ones that are specifically built for the US military operations," Parlow said. This scarcity could drive up costs for US-bound project cargo; Kyriakos Kalis, director at project cargo forwarder Cosmatos, warned that limiting tonnage would inevitably lead to higher prices for goods reaching the US. Tax questions still circulating The ripple effects of the proposed fees and tariffs on the project cargo sector extend to broader trade dynamics. Rajesh Vaidyanathan Iyer, from the projects and logistics cluster at Khimji Ramdas, an Oman conglomerate with a project forwarding arm, highlighted the unique position of Middle Eastern countries with existing free trade agreements with the US, such as Oman and Bahrain. He added that there are ongoing inquiries to the US embassies in Middle Eastern countries regarding the potential effects on tax exemption treaties that countries in the region currently have with the US. Despite the volatility, there’s a strong desire for stability. Bianchi expressed a common hope. ”The general consensus is that at a certain point, everything will stabilize,” he said. “We don’t need high rates or low rates. It’s stable rates.” The current climate is also spurring strategic shifts in project cargo manufacturing. Iyer has observed "renewed interest from (India and China) to set up factories in the Middle East," due to the more favorable tariff regime for the region. An influx of investment, particularly in free zones in the UAE and Oman, is creating new project opportunities for the logistics sector, with several companies already committing to setting up factories, he said. Decarbonization efforts are a key driver of demand, particularly evident in the growing size of wind turbine components. Iyer pointed out that wind blades in the Middle East are often 95 meters plus, significantly larger than the 60- to 70-meter blades commonly used in parts of the US. Kalis highlighted the transport challenges posed by longer blades, which are "not so easy to transport in all countries." The nature of cargo handling is also evolving. Bianchi noted that many large container ships, primarily built in China, could face significant costs if they are tariffed for every call, impacting project cargo component prices. ”A lot of container ships are now carrying breakbulk pieces,” he said, noting that was due to increased terminal lifting capacities that made it possible to accommodate larger cargoes on those vessels. Audrain said that container lines are developing expertise to handle diverse project cargo, and are even dedicating space on ships for specific projects. Contact Carly Fields at carly.fields@spglobal.com .

Maritime

Breakbulk News

Breakbulk carriers

Project cargo

Tariffs prompt honest talk on costs among project cargo players

<div class="phx-topic abstract-wrapper">Maritime employers along Canada’s West Coast have a new agreement that will avert the type of labor actions seen late last year. </div>

Maritime employers along Canada’s West Coast have a new agreement that will avert the type of labor actions seen late last year.

<div class="phx-topic">Maritime employers at the Port of Vancouver have agreed on a new contract with the union representing longshore foremen that will ensure labor peace at Canada’s biggest gateway for the next two years. The deal was reached between the two sides before Canada’s labor board proceeded to binding an agreement upon employers and the union. The British Columbia Maritime Employers Association (BCMEA) said in a statement Wednesday that it and the International Longshore and Warehouse Union Local 514 both ratified a new four-year collective bargaining agreement for longshore foremen. The agreement lasts through March 2027 as its retroactive April 2023 start coincides with the expiry of the previous master contract that covered about 700 members across both Vancouver and Prince Rupert. “We look forward to working together to implement the terms of the agreement,” the BCMEA said in its statement, without providing further details of the deal. The agreement comes after <a href="https://www.joc.com/article/bc-container-ports-ready-to-lock-out-longshore-foremen-after-strike-vote-5784004">Canada’s labor board forced striking foremen in British Columbia back to work</a> last November, ruling their strike was illegal because <a href="https://www.joc.com/article/ilwu-canada-illegal-strike-ruling-averts-vancouver-shutdown-5192250">it targeted one terminal</a>, DP World Centerm, for its use of semi-automated rail cranes. When the Canada Industrial Relations Board sought to put the contract dispute to binding arbitration, Local 514 mounted a legal challenge to the process back in December. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Maritime employers at the Port of Vancouver have agreed on a new contract with the union representing longshore foremen that will ensure labor peace at Canada’s biggest gateway for the next two years. The deal was reached between the two sides before Canada’s labor board proceeded to binding an agreement upon employers and the union. The British Columbia Maritime Employers Association (BCMEA) said in a statement Wednesday that it and the International Longshore and Warehouse Union Local 514 both ratified a new four-year collective bargaining agreement for longshore foremen. The agreement lasts through March 2027 as its retroactive April 2023 start coincides with the expiry of the previous master contract that covered about 700 members across both Vancouver and Prince Rupert. “We look forward to working together to implement the terms of the agreement,” the BCMEA said in its statement, without providing further details of the deal. The agreement comes after Canada’s labor board forced striking foremen in British Columbia back to work last November, ruling their strike was illegal because it targeted one terminal , DP World Centerm, for its use of semi-automated rail cranes. When the Canada Industrial Relations Board sought to put the contract dispute to binding arbitration, Local 514 mounted a legal challenge to the process back in December. Contact Michael Angell at michael.angell@spglobal.com .

Longshore labor

North American ports

BC longshore foremen reach deal with port employers on new contract

<div class="phx-topic abstract-wrapper">The terminal operator said it has reduced the inventory of rail-bound containers at its Elizabeth facility to about 1,600, down from about 4,000 in early May. </div>

The terminal operator said it has reduced the inventory of rail-bound containers at its Elizabeth facility to about 1,600, down from about 4,000 in early May.

<div class="phx-topic">APM Terminals is looking to move a backlog of rail containers at its New Jersey facility stemming from the first wave of tariff-driven frontloading and the startup of the Gemini Cooperation alliance. US East Coast ports anticipate more waves of frontloading ahead, but their lesser exposure to China may mean only small surges, at best. APM said in a statement Wednesday that it has reduced the inventory of rail-bound containers at its Elizabeth terminal to about 1,600, from about 4,000 in early May. The heavy inventory resulted in dwell times for intermodal imports into the port reaching almost nine days by the end of May, according to data from the Port Authority of New York and New Jersey (PANYNJ), the highest in two years of data. Rail dwell is typically three to four days. The rail inventory had been growing through spring, with the PANYNJ reporting March and April import volumes that were the highest since September and October of 2024. The number of rail lifts for containers during April was the highest since October 2022. APM said the volumes were likely driven by <a href="https://www.joc.com/article/us-in-race-to-replenish-china-stocks-to-avoid-summer-shortages-maersk-ceo-6001159">shippers concerned about ever-changing US tariff policy</a>. APM also saw heavier volume with <a href="https://www.joc.com/article/apm-to-spend-500-million-to-enhance-cargo-handling-at-elizabeth-terminal-5969027">the start of vessel services offered through the Gemini Cooperation between Maersk and Hapag-Lloyd</a>, further adding to the backlog. APM is owned by Maersk. Along with APM extending shifts and operating hours at its rail yard, Norfolk Southern also added another daily train from Elizabeth to handle the added volume. APM anticipates that rail dwell should be back to normal by mid-to-late June. “As of early June, we have seen significant improvement in rail flow,” it said. “Average rail dwell times are improving daily with higher utilization of rail assets.” <h3>Surge, but not severe </h3>Lowering rail dwell will be critical in the coming weeks. At a recent update meeting convened by PANYNJ, multiple port stakeholders said they anticipate <a href="https://www.joc.com/article/china-us-ocean-bookings-surge-since-weekend-trade-deal-hapag-lloyd-6004653">a volume surge starting around the middle of June</a> that could last through much of summer. However, the degree of that surge could be tempered by the port’s lower exposure to freight from China. “While we do expect a surge, we don’t expect it to be as severe as other gateways since China accounts for about 25% of our volume,” the PANYNJ said in a statement to the Journal of Commerce. Nonetheless, the PANYNJ said area marine terminals are evacuating as much cargo as possible to make room for more imports and may extend gate hours or open on Saturdays as needed. The Shipping Association of New York and New Jersey (SANYNJ) said in a statement that it is balancing vacation requests from longshore workers with demand from marine terminals. Thanks to stricter terms around absenteeism negotiated in local union contracts, the SANYNJ said there should be fewer concerns about longshore workers not showing up as scheduled. Some terminals have also agreed to higher staffing levels for longshore workers in some crafts in return for productivity gains on each shift. Anticipating a buildup of empty containers that would reduce truck fluidity, the PANYNJ is looking for additional empty depot space around the port. Port Director Bethann Rooney asked ocean carriers in a May letter to “implement aggressive plans to evacuate accumulated empty containers and prioritize balancing containers in the port to ensure fluidity.” “During the last major cargo surge in 2022, empty containers remained in the port for extended periods of time, which limited the trucker’s ability to efficiently return empties,” Rooney said in the letter. “This contributed to significant congestion, chassis shortages, inefficient land use, and increased and unnecessary costs for our shared stakeholders and customers.” Ports America Chief Executive Matthew Leech told the Journal of Commerce that he expects multiple waves of container frontloading through summer. The first wave of freight trying to beat the April implementation of President Donald Trump’s reciprocal tariffs — since paused — has already reached US ports and will recede shortly. But the next round of frontloading could pick up in mid-to-late June as importers from Europe try to get ahead of the July 9 delayed start of Trump’s 50% tariff against the European Union. After that, shippers from China have until mid-August before Trump’s 145% tariffs go back into effect. “We’re at the tail end of the first frontloading from early April,” Leech said. “Now with the other tariff reprieves, it could start to accelerate through mid-August.” Leech said the surge may be constrained by the availability of empty containers in Asia for imports. The cancellation of freight bookings from China immediately after the announcement of Trump’s tariffs meant a lot of containers were used to store goods. Leech estimated a backlog of some 500,000 containers packed for shipment but delayed due to tariffs. Now with those goods finally moving, any additional purchase orders will have to wait on those empty containers being returned to their origin, he added. “The surge is coming, but the issue is equipment availability,” Leech said. “There’s a significant inventory of empties that need to be returned.” <h3>Railroad expects surge </h3>Norfolk Southern (NS) said in a statement to the Journal of Commerce that it expects a “surge in traffic in the coming weeks.” After a crane outage last week at its Landers intermodal yard in Chicago, NS said all four cranes at Landers are currently running. The <a href="https://www.joc.com/article/ns-opening-lots-in-memphis-to-address-terminal-gridlock-5242669">additional space</a>, <a href="https://www.joc.com/article/norfolk-southern-adds-to-southeast-intermodal-capacity-with-new-cranes-5217288">increased crane capacity</a> and <a href="https://www.joc.com/article/norfolk-southern-debuts-atlanta-appointment-system-for-import-loads-5222077">appointment system</a> at its intermodal yards should be able to handle the surge, it said. “NS is in a strong position to manage through the anticipated volume fluctuations,” the railroad said. “We have taken the lessons we learned during past disruptions and will leverage them in the coming months.” Other East Coast ports, though, are taking concerns about a cargo surge in stride. A spokesperson for the Port of Virginia told the Journal of Commerce the terminals there are running at about 60% to 65% capacity, so there’s room for more imports. Moreover, China only represents about 20% of the port’s inbound volumes. A spokesperson for the South Carolina Ports Authority told the Journal of Commerce that while it does expect increased volumes from China, operations at Charleston are fluid. “We feel comfortable to handle what’s coming,” the spokesperson said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>.</div>

APM Terminals is looking to move a backlog of rail containers at its New Jersey facility stemming from the first wave of tariff-driven frontloading and the startup of the Gemini Cooperation alliance. US East Coast ports anticipate more waves of frontloading ahead, but their lesser exposure to China may mean only small surges, at best. APM said in a statement Wednesday that it has reduced the inventory of rail-bound containers at its Elizabeth terminal to about 1,600, from about 4,000 in early May. The heavy inventory resulted in dwell times for intermodal imports into the port reaching almost nine days by the end of May, according to data from the Port Authority of New York and New Jersey (PANYNJ), the highest in two years of data. Rail dwell is typically three to four days. The rail inventory had been growing through spring, with the PANYNJ reporting March and April import volumes that were the highest since September and October of 2024. The number of rail lifts for containers during April was the highest since October 2022. APM said the volumes were likely driven by shippers concerned about ever-changing US tariff policy . APM also saw heavier volume with the start of vessel services offered through the Gemini Cooperation between Maersk and Hapag-Lloyd , further adding to the backlog. APM is owned by Maersk. Along with APM extending shifts and operating hours at its rail yard, Norfolk Southern also added another daily train from Elizabeth to handle the added volume. APM anticipates that rail dwell should be back to normal by mid-to-late June. “As of early June, we have seen significant improvement in rail flow,” it said. “Average rail dwell times are improving daily with higher utilization of rail assets.” Surge, but not severe Lowering rail dwell will be critical in the coming weeks. At a recent update meeting convened by PANYNJ, multiple port stakeholders said they anticipate a volume surge starting around the middle of June that could last through much of summer. However, the degree of that surge could be tempered by the port’s lower exposure to freight from China. “While we do expect a surge, we don’t expect it to be as severe as other gateways since China accounts for about 25% of our volume,” the PANYNJ said in a statement to the Journal of Commerce. Nonetheless, the PANYNJ said area marine terminals are evacuating as much cargo as possible to make room for more imports and may extend gate hours or open on Saturdays as needed. The Shipping Association of New York and New Jersey (SANYNJ) said in a statement that it is balancing vacation requests from longshore workers with demand from marine terminals. Thanks to stricter terms around absenteeism negotiated in local union contracts, the SANYNJ said there should be fewer concerns about longshore workers not showing up as scheduled. Some terminals have also agreed to higher staffing levels for longshore workers in some crafts in return for productivity gains on each shift. Anticipating a buildup of empty containers that would reduce truck fluidity, the PANYNJ is looking for additional empty depot space around the port. Port Director Bethann Rooney asked ocean carriers in a May letter to “implement aggressive plans to evacuate accumulated empty containers and prioritize balancing containers in the port to ensure fluidity.” “During the last major cargo surge in 2022, empty containers remained in the port for extended periods of time, which limited the trucker’s ability to efficiently return empties,” Rooney said in the letter. “This contributed to significant congestion, chassis shortages, inefficient land use, and increased and unnecessary costs for our shared stakeholders and customers.” Ports America Chief Executive Matthew Leech told the Journal of Commerce that he expects multiple waves of container frontloading through summer. The first wave of freight trying to beat the April implementation of President Donald Trump’s reciprocal tariffs — since paused — has already reached US ports and will recede shortly. But the next round of frontloading could pick up in mid-to-late June as importers from Europe try to get ahead of the July 9 delayed start of Trump’s 50% tariff against the European Union. After that, shippers from China have until mid-August before Trump’s 145% tariffs go back into effect. “We’re at the tail end of the first frontloading from early April,” Leech said. “Now with the other tariff reprieves, it could start to accelerate through mid-August.” Leech said the surge may be constrained by the availability of empty containers in Asia for imports. The cancellation of freight bookings from China immediately after the announcement of Trump’s tariffs meant a lot of containers were used to store goods. Leech estimated a backlog of some 500,000 containers packed for shipment but delayed due to tariffs. Now with those goods finally moving, any additional purchase orders will have to wait on those empty containers being returned to their origin, he added. “The surge is coming, but the issue is equipment availability,” Leech said. “There’s a significant inventory of empties that need to be returned.” Railroad expects surge Norfolk Southern (NS) said in a statement to the Journal of Commerce that it expects a “surge in traffic in the coming weeks.” After a crane outage last week at its Landers intermodal yard in Chicago, NS said all four cranes at Landers are currently running. The additional space , increased crane capacity and appointment system at its intermodal yards should be able to handle the surge, it said. “NS is in a strong position to manage through the anticipated volume fluctuations,” the railroad said. “We have taken the lessons we learned during past disruptions and will leverage them in the coming months.” Other East Coast ports, though, are taking concerns about a cargo surge in stride. A spokesperson for the Port of Virginia told the Journal of Commerce the terminals there are running at about 60% to 65% capacity, so there’s room for more imports. Moreover, China only represents about 20% of the port’s inbound volumes. A spokesperson for the South Carolina Ports Authority told the Journal of Commerce that while it does expect increased volumes from China, operations at Charleston are fluid. “We feel comfortable to handle what’s coming,” the spokesperson said. Contact Michael Angell at michael.angell@spglobal.com .

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Marine terminals

Intermodal providers

APM clearing out New Jersey rail container backlog ahead of a summer surge

<div class="phx-topic abstract-wrapper">The shift of some capacity to the Asia-US trade to meet surging demand there is contributing to tighter vessel space in the ECSA market, forwarders tell the Journal of Commerce. </div>

The shift of some capacity to the Asia-US trade to meet surging demand there is contributing to tighter vessel space in the ECSA market, forwarders tell the Journal of Commerce.

<div class="phx-topic">Shippers moving cargo from Asia to the East Coast of South America (ECSA) are dealing with peak season delays and a doubling of container spot rates in recent weeks amid equipment imbalances and congestion at major destination ports. The shift of some capacity to the Asia-US trade to meet surging demand there is also contributing to tighter vessel space in the ECSA market, forwarders tell the Journal of Commerce. Congestion at the Brazilian ports of Itapoa, Santos, Rio Grande and Pecem and at Buenos Aires in Argentina, has soaked up newly deployed tonnage, pushing container spot rates to $4,650 per FEU, up from $2,360 per FEU, in just the last two weeks on the eastbound leg of the trade, according to data from Platts, a sister company of the Journal of Commerce within S&amp;P Global. Forwarders say inbound space is booked for at least the next two weeks. Marcelo Machado, a freight forwarder at CSS Logistics in Brazil, said vessel slots for the first half of June were bought quickly as blank sailings exacerbated an already significant capacity reduction. “Blank sailings had a great deal to do with the situation,” said Machado. “Then carriers like Hyundai started directing vessels to the US. There was a lot of demand and carriers had to redirect vessels to the US.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3255cb79-f66b-43bf-b624-083a7fa64a93"></dynamic-object></div>Container lines are seeking peak season surcharges (PSSs) on contract rates valid for more than 90 days. CMA CGM said on May 30 it would impose a $2,000-per-container surcharge on all cargo from Asia to ECSA from July 1 until further notice. The carrier said another $1,000-per-container surcharge would be introduced June 7, followed by a third surcharge of $2,000 per container on June 22. “Spot rates have been going up week by week,” Mauricio Fisch, director of Brazil logistics company Ocean Express, told the Journal of Commerce. <h3>Equipment, congestion difficulties </h3>As the Asia-ECSA trade is in peak season, rate increases have been further bolstered by equipment scarcity and congestion at the key Brazilian ports, which are experiencing “slightly disrupted operations,” according to Kuehne + Nagle’s SeaExplorer platform. Buenos Aires is seeing berthing delays of one to three days due to congestion, while Rio Grande, Itapoa, Santos and Pecem are seeing average vessel waiting times of about two to three days, said Kuehne + Nagle. Forwarders say congestion has been getting progressively worse since January, when an ongoing strike by Brazilian customs workers began, increasing cargo delays. “The customs [workers] are intensifying the strike and won’t [serve] any activities other than priority shipments that are time critical,” said another Brazil forwarder. Forwarders also report ECSA equipment issues, noting a lack of TEUs from Zim Integrated Shipping Services across all Brazilian ports and Cosco Shipping lacking volume at Rio de Janeiro. Cosco and Zim declined to comment. Another forwarder said carriers are prioritizing more lucrative spot market shipments over contracted cargo, “causing a lot of cargo to roll or miss equipment availability, leading to delays and forcing [later] bookings [at] higher rates.” <h3>Capacity management </h3>Forwarders say carriers are aggressively managing capacity, driven partly by volatile North American demand. HMM canceled several calls on its Far East-India-East Latin America service due to vessels being redeployed on the Asia-US trade, Fisch said. Asia-ECSA also saw more May blanks, with 12.6% of the total capacity blanked and 250,000 TEUs of active capacity, according to maritime visibility platform eeSea. In April, only 2.8% of the lane’s capacity was blanked. Projections from eeSea show capacity is due to increase on the trade this month. While most carriers increased capacity on direct services quarter over quarter, Hapag-Lloyd and Cosco were outliers, choosing to remove approximately one-third and one-fifth of capacity, respectively, in the second quarter compared with the first quarter, according to MDS Transmodal. <h3>West Coast also seeing impacts </h3>Seeing similar increases, the Platts index shows North Asia to West Coast South America (WCSA) rates rose 63% in the past two weeks to reach $3,700 per FEU amid equipment and space issues, with forwarders reporting rates as high as $5,000 per FEU. CMA CGM said it would impose two PSSs in June for cargo from Asia to WCSA, Central America and the Caribbean — $1,000 per FEU on June 7 and $2,000 per FEU on June 22. Meanwhile, Valparaiso in Chile and Buenaventura in Colombia are considered “slightly disrupted” by SeaExplorer, with vessel waiting times of about three and four days on average, respectively. Peru’s Port of Callao is “heavily disrupted” due to local street closures, which could increase port entry times by 30%, Kuehne + Nagle said. Additionally, a forwarder noted equipment scarcity for all container equipment from CMA CGM throughout WCSA. The carrier declined to comment. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  Contact Keith Wallis at <a href="mailto: keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Shippers moving cargo from Asia to the East Coast of South America (ECSA) are dealing with peak season delays and a doubling of container spot rates in recent weeks amid equipment imbalances and congestion at major destination ports. The shift of some capacity to the Asia-US trade to meet surging demand there is also contributing to tighter vessel space in the ECSA market, forwarders tell the Journal of Commerce. Congestion at the Brazilian ports of Itapoa, Santos, Rio Grande and Pecem and at Buenos Aires in Argentina, has soaked up newly deployed tonnage, pushing container spot rates to $4,650 per FEU, up from $2,360 per FEU, in just the last two weeks on the eastbound leg of the trade, according to data from Platts, a sister company of the Journal of Commerce within S&P Global. Forwarders say inbound space is booked for at least the next two weeks. Marcelo Machado, a freight forwarder at CSS Logistics in Brazil, said vessel slots for the first half of June were bought quickly as blank sailings exacerbated an already significant capacity reduction. “Blank sailings had a great deal to do with the situation,” said Machado. “Then carriers like Hyundai started directing vessels to the US. There was a lot of demand and carriers had to redirect vessels to the US.” Container lines are seeking peak season surcharges (PSSs) on contract rates valid for more than 90 days. CMA CGM said on May 30 it would impose a $2,000-per-container surcharge on all cargo from Asia to ECSA from July 1 until further notice. The carrier said another $1,000-per-container surcharge would be introduced June 7, followed by a third surcharge of $2,000 per container on June 22. “Spot rates have been going up week by week,” Mauricio Fisch, director of Brazil logistics company Ocean Express, told the Journal of Commerce. Equipment, congestion difficulties As the Asia-ECSA trade is in peak season, rate increases have been further bolstered by equipment scarcity and congestion at the key Brazilian ports, which are experiencing “slightly disrupted operations,” according to Kuehne + Nagle’s SeaExplorer platform. Buenos Aires is seeing berthing delays of one to three days due to congestion, while Rio Grande, Itapoa, Santos and Pecem are seeing average vessel waiting times of about two to three days, said Kuehne + Nagle. Forwarders say congestion has been getting progressively worse since January, when an ongoing strike by Brazilian customs workers began, increasing cargo delays. “The customs [workers] are intensifying the strike and won’t [serve] any activities other than priority shipments that are time critical,” said another Brazil forwarder. Forwarders also report ECSA equipment issues, noting a lack of TEUs from Zim Integrated Shipping Services across all Brazilian ports and Cosco Shipping lacking volume at Rio de Janeiro. Cosco and Zim declined to comment. Another forwarder said carriers are prioritizing more lucrative spot market shipments over contracted cargo, “causing a lot of cargo to roll or miss equipment availability, leading to delays and forcing [later] bookings [at] higher rates.” Capacity management Forwarders say carriers are aggressively managing capacity, driven partly by volatile North American demand. HMM canceled several calls on its Far East-India-East Latin America service due to vessels being redeployed on the Asia-US trade, Fisch said. Asia-ECSA also saw more May blanks, with 12.6% of the total capacity blanked and 250,000 TEUs of active capacity, according to maritime visibility platform eeSea. In April, only 2.8% of the lane’s capacity was blanked. Projections from eeSea show capacity is due to increase on the trade this month. While most carriers increased capacity on direct services quarter over quarter, Hapag-Lloyd and Cosco were outliers, choosing to remove approximately one-third and one-fifth of capacity, respectively, in the second quarter compared with the first quarter, according to MDS Transmodal. West Coast also seeing impacts Seeing similar increases, the Platts index shows North Asia to West Coast South America (WCSA) rates rose 63% in the past two weeks to reach $3,700 per FEU amid equipment and space issues, with forwarders reporting rates as high as $5,000 per FEU. CMA CGM said it would impose two PSSs in June for cargo from Asia to WCSA, Central America and the Caribbean — $1,000 per FEU on June 7 and $2,000 per FEU on June 22. Meanwhile, Valparaiso in Chile and Buenaventura in Colombia are considered “slightly disrupted” by SeaExplorer, with vessel waiting times of about three and four days on average, respectively. Peru’s Port of Callao is “heavily disrupted” due to local street closures, which could increase port entry times by 30%, Kuehne + Nagle said. Additionally, a forwarder noted equipment scarcity for all container equipment from CMA CGM throughout WCSA. The carrier declined to comment. Contact Laura Robb at laura.robb@spglobal.com .  Contact Keith Wallis at keithwallis@hotmail.com .

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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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