<div class="phx-topic abstract-wrapper">There's good news for LTL and truckload carriers: their record profits should keep on rolling in 200</div>

There's good news for LTL and truckload carriers: their record profits should keep on rolling in 200

<div>There's good news for LTL and truckload carriers: their record profits should keep on rolling in 2006. But, for shippers and receivers paying the freight, that's the bad news. Can you remember the days not so long ago when truckload carriers quoted rates and held them steady for years? In 2005, rates escalated at a dizzying pace. Some lanes increased to the extent that purchasing two LTL pups became a cheaper alternative to a full truckload. Many of the factors that contributed to the truckload capacity crisis of 2005 have not abated. Hours of service, driver shortages and fuel will...

There's good news for LTL and truckload carriers: their record profits should keep on rolling in 2006. But, for shippers and receivers paying the freight, that's the bad news. Can you remember the days not so long ago when truckload carriers quoted rates and held them steady for years? In 2005, rates escalated at a dizzying pace. Some lanes increased to the extent that purchasing two LTL pups became a cheaper alternative to a full truckload. Many of the factors that contributed to the truckload capacity crisis of 2005 have not abated. Hours of service, driver shortages and fuel will continue to leave truckload carriers in the driver's seat this year. Certainly the aftermath of Hurricane Katrina and the Federal Emergency Management Agency sanctioned overpayments to reserve capacity should not present itself again this year, short of a similar but unlikely recurrence of a natural disaster. Everything considered, I would expect some settling of truckload pricing in 2006. This means you can look for prices to increase by single digit increments with equipment availability remaining moderately difficult, particularly in specific traffic lanes. A few years ago, the LTL sector witnessed unprecedented contraction. Who among us wasn't flabbergasted in 2003 when Yellow announced it acquired Roadway? That transaction began a wave of industry consolidation as powerful as the 2004 Indian Ocean tsunami. And it's still going on! Yellow Roadway purchased billion-dollar USF, UPS acquired Overnite, what's next? Even regional carriers are getting in on the act. Old Dominion Freight Line recently acquired UW Freight Line of Salt Lake City, Utah, while Vitran Express purchased Nevada-based Sierra West Express and Kansas carrier Chris Truck Line and Estes Express completed its purchase of G.I. Trucking in California. Many of the industry observers and experts I talk to on a regular basis strongly believe that 2006 competitors will not settle for the regional "tuck-in" transaction. Like UPS prior to the Overnite acquisition, Deutsche Post and its revitalized DHL brand are looking to make an LTL splash in the United States. They have the cash (about $4 billion as of fiscal year 2004) and the means (projected $3 billion in operating profit for fiscal year 2005) to pull off such a deal. Who might they acquire? The Yellow acquisition of Roadway Express proved that with the right deal structure, any company in our industry could be acquired. No one really believes that YRC Worldwide -- the parent of the Yellow, Roadway and YRC Regional (formerly USF and New Penn) -- Fed Ex and UPS are done competing for U.S. market share. Without sacrificing profitability for market share via higher discounts, acquisition seems to be the prudent road. All in all, LTL carriers experienced strong financial returns in 2005. Many of the capacity issues in the truckload sector served to displace shipments that used to go full truckload onto LTL pups. This year should continue to place pressure on shippers to seek more strategic transportation solutions. The days of higher discounts, lower freight classes and 10-year-old base rates are on the way out. If you are not a shipper with desirable freight (low value, high density, easy deliveries, moving in the right direction), you better start considering ideas such as pool consolidation, hundredweight services from package carriers, small regional inventories and even postponement manufacturing. If you have gotten by on the basis of negotiating huge discounts for large volume of undesirable freight, your thought process will need to change this year. Samuel R. Polakoff is president of TBB Global Logistics, a third-party logistics provider in New Freedom, Pa.

No Relief in Sight From Rising Rates

<div class="phx-topic abstract-wrapper">Strong demand and the resulting tightening of intra-Asia vessel capacity is lifting intra-Asia rates, a sharp contrast to falling spot pricing on both the trans-Pacific and Asia–Europe trades. </div>

Strong demand and the resulting tightening of intra-Asia vessel capacity is lifting intra-Asia rates, a sharp contrast to falling spot pricing on both the trans-Pacific and Asia–Europe trades.

Feature image

<div class="phx-topic">A surge of Southeast Asia cargo ahead of a manufacturing slowdown in China next month is filling up the holds of intra-Asia carriers, with vessels booked through September and early reports of rolled cargo. The tightening of vessel capacity serving Indonesia, Vietnam and Malaysia, lanes that feed the trans-Pacific trade, comes despite lackluster expectations for a pre-Golden Week surge of Chinese exports and reflects increased sourcing from Southeast Asia in the face of higher US tariffs on imports from China. Forwarders say the strong volumes are lifting intra-Asia rates, in sharp contrast to <a href="https://www.joc.com/article/ocean-market-in-trans-pacific-arrives-at-spot-pricing-tipping-point-6073669">falling spot pricing on both the trans-Pacific</a> and <a href="https://www.joc.com/article/early-peak-new-vessels-could-tip-asia-europe-into-overcapacity-6077749 ">Asia–Europe trades</a>. The increase in demand has also caused a capacity shortage and port congestion in markets like Indonesia, where most of the country’s major exporters are experiencing delays of two or three days, said Antonella Teodoro, MDS Transmodal senior consultant. The volume surge and resulting tightening of intra-Asia capacity reflects the “growing concentration of complex, high-value manufacturing within Asia and the need for stronger regional supply chains,” she said. The lack of space has caused some carriers to create so-called roll pools, holding cargo at origin to prioritize higher-yield bookings, Eunice Yu, head of ocean freight at Dachser Air &amp; Sea Logistics Asia Pacific in Hong Kong, told the Journal of Commerce. A FIBS Logistics spokesperson in Singapore said that some carriers, including SITC, CMA CGM subsidiary CNC Line and Korea Maritime Transport Co (KMTC), “are already fully booked on intra-Asia services to [Indonesia, Vietnam and Malaysia] until the end of September.” Forwarders also highlighted Indonesia as a particularly strong cargo market, with several intra-Asia carriers announcing a raft of new Indonesia focused services. CNC Line, SeaLead and CK Shipping are launching the jointly operated China Indonesia Korea (CIK) service from Sept. 15 with direct connections from South Korea and central China to Indonesia. Pacific International Lines’ (PIL) said Tuesday it will commence a Korea China Indonesia (KCI) string on Oct. 13 that will follow an identical routing to the joint CIK loop. The top 10 carriers serving Southeast Asia by deployed capacity increased tonnage 10% year over year to 4.7 million TEU in September, according to MDS Transmodal. Maersk drove the gains as part of its Gemini Cooperation alliance with Hapag-Lloyd, followed by CMA CGM, Mediterranean Shipping Co. (MSC) and SITC. Cosco Shipping remains the largest carrier in the highly fragmented intra-Asia market. In the longer term, factory closures in China due to the long October holiday is expected to temporarily soften the intra-Asia market before it “gradually picks up again in November, leading into the traditional fourth-quarter peak season, when rates should move higher than September levels,” Yu said. In first half of 2025, non-oil related trade by value between mainland China and Southeast Asia jumped nearly 46% compared to the year prior; and in the four months ended in June, the US imported more from Southeast Asia than China for the first time since 2000, according to an analysis by investment bank HSBC. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

A surge of Southeast Asia cargo ahead of a manufacturing slowdown in China next month is filling up the holds of intra-Asia carriers, with vessels booked through September and early reports of rolled cargo. The tightening of vessel capacity serving Indonesia, Vietnam and Malaysia, lanes that feed the trans-Pacific trade, comes despite lackluster expectations for a pre-Golden Week surge of Chinese exports and reflects increased sourcing from Southeast Asia in the face of higher US tariffs on imports from China. Forwarders say the strong volumes are lifting intra-Asia rates, in sharp contrast to falling spot pricing on both the trans-Pacific and Asia–Europe trades . The increase in demand has also caused a capacity shortage and port congestion in markets like Indonesia, where most of the country’s major exporters are experiencing delays of two or three days, said Antonella Teodoro, MDS Transmodal senior consultant. The volume surge and resulting tightening of intra-Asia capacity reflects the “growing concentration of complex, high-value manufacturing within Asia and the need for stronger regional supply chains,” she said. The lack of space has caused some carriers to create so-called roll pools, holding cargo at origin to prioritize higher-yield bookings, Eunice Yu, head of ocean freight at Dachser Air & Sea Logistics Asia Pacific in Hong Kong, told the Journal of Commerce. A FIBS Logistics spokesperson in Singapore said that some carriers, including SITC, CMA CGM subsidiary CNC Line and Korea Maritime Transport Co (KMTC), “are already fully booked on intra-Asia services to [Indonesia, Vietnam and Malaysia] until the end of September.” Forwarders also highlighted Indonesia as a particularly strong cargo market, with several intra-Asia carriers announcing a raft of new Indonesia focused services. CNC Line, SeaLead and CK Shipping are launching the jointly operated China Indonesia Korea (CIK) service from Sept. 15 with direct connections from South Korea and central China to Indonesia. Pacific International Lines’ (PIL) said Tuesday it will commence a Korea China Indonesia (KCI) string on Oct. 13 that will follow an identical routing to the joint CIK loop. The top 10 carriers serving Southeast Asia by deployed capacity increased tonnage 10% year over year to 4.7 million TEU in September, according to MDS Transmodal. Maersk drove the gains as part of its Gemini Cooperation alliance with Hapag-Lloyd, followed by CMA CGM, Mediterranean Shipping Co. (MSC) and SITC. Cosco Shipping remains the largest carrier in the highly fragmented intra-Asia market. In the longer term, factory closures in China due to the long October holiday is expected to temporarily soften the intra-Asia market before it “gradually picks up again in November, leading into the traditional fourth-quarter peak season, when rates should move higher than September levels,” Yu said. In first half of 2025, non-oil related trade by value between mainland China and Southeast Asia jumped nearly 46% compared to the year prior; and in the four months ended in June, the US imported more from Southeast Asia than China for the first time since 2000, according to an analysis by investment bank HSBC. Contact Keith Wallis at keithwallis@hotmail.com .

Maritime

Container Shipping News

Container lines

Surging Southeast Asia volumes strain intra-Asia capacity

<div class="phx-topic abstract-wrapper">Delivery of the fuel will begin immediately and build on a strategic collaboration Hapag-Lloyd established with Shell in 2023 to accelerate the decarbonization of its fleet.</div>

Delivery of the fuel will begin immediately and build on a strategic collaboration Hapag-Lloyd established with Shell in 2023 to accelerate the decarbonization of its fleet.

<div class="phx-topic">Hapag-Lloyd and Shell Western LNG have signed a multiyear agreement for the supply of liquefied biomethane for its growing fleet of dual-fuel container vessels. Details on the volume of fuel to be provided were not disclosed, but the supply agreement begins immediately and builds on <a href="https://www.joc.com/article/hapag-lloyd-inks-lng-deal-to-power-incoming-mega-ship-fleet-5242198">a strategic collaboration the carrier established with Shell in 2023</a> to accelerate the decarbonization of its alternative marine fuel. “This agreement helps secure the fuel certainty and supply reliability we need to further expand the use of waste-based renewable fuels across our fleet,” Jan Christensen, senior director of global fuel purchasing at Hapag-Lloyd, said in a statement Thursday. Christensen added that it is important for carriers to use the lower-emission fuels that are already available today, rather than waiting for future solutions. Hapag-Lloyd currently has 13 dual-fuel LNG container ships in its fleet, known as the Hamburg Express class, <a href="https://www.joc.com/article/hapag-lloyd-makes-4-billion-move-down-lng-path-with-24-ship-dual-fuel-order-5787368">which were ordered in November 2024</a>. The last vessel in the order, Wilhelmshaven Express, was delivered earlier this year. The carrier has another 24 container ships — 12 16,800-TEU ships and 12 9,200-TEU vessels — capable of running on either LNG or ammonia on order and scheduled for delivery starting in 2027. Hapag-Lloyd aims to achieve net-zero fleet operations by 2045, cutting emissions across its fleet while supporting customers in their efforts to decarbonize their supply chains. Biomethane, also known as bio-LNG, will play a significant role in this decarbonization strategy. <h3>‘Fueling the next chapter’ </h3>The fuel choice by ocean carriers — at least for now — is increasingly between LNG and methanol. Ships capable of running on one of those two fuels comprised 70% of the total 1.7 million TEUs of vessel capacity ordered in 2024, according to data from Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. In July, Mediterranean Shipping Co. (MSC) ordered six 22,000-TEU dual-fuel LNG vessels and upsized another six LNG-fueled container ships from 19,000 TEUs to 22,000 TEUs, while Yang Ming ordered seven 15,000-TEU dual-fuel LNG ships. In February, Taiwan’s Evergreen Marine <a href="https://www.joc.com/article/evergreen-makes-32-billion-order-for-lng-capable-megaships-5943682">ordered 11 24,000-TEU LNG-capable vessels</a>, while Maersk last year <a href="https://www.joc.com/article/maersks-lng-order-hedges-bet-on-green-fuel-technology-ceo-5703200">ordered dual-fuel vessels totaling 800,000 TEUs</a> capable of sailing on methanol as well as LNG. Several carriers have also signed similar deals to lock in fuel supply. Hapag-Lloyd in November last year signed an agreement with Chinese energy producer Goldwind for the annual supply of 250,000 tons of green methanol per year from 2026, joining Gemini Cooperation partner Maersk, which already has a 500,000-tons-per-year green methanol deal with Goldwind. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b7235aec-17d5-4005-bec9-2ab17950874b"></dynamic-object></div>CMA CGM inked a long-term LNG supply agreement with TotalEnergies that will run from 2028 to 2040 and power the carrier’s dual-fuel fleet, which will number 123 vessels by 2029. Dexter Belmar, vice president of global downstream LNG at Shell, said these deals help build the confidence needed to produce and consume renewable fuels at scale. “Bio-LNG is no longer a concept — it’s here, and it’s fueling the next chapter of shipping decarbonization,” he said in the joint statement, noting that Shell now offers liquefied biomethane at 22 strategic locations within its global LNG bunkering network. Biomethane is a drop-in fuel that enables LNG dual-fuel vessels to transition to renewable fuels without any equipment modifications. Derived from the decomposition of organic waste, such as crop residues, livestock manure and food waste, biogas is upgraded to biomethane by removing CO2 and impurities. The liquefied biomethane is then fed into the local gas grid, liquefied and supplied to ships on a mass-balanced basis. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd and Shell Western LNG have signed a multiyear agreement for the supply of liquefied biomethane for its growing fleet of dual-fuel container vessels. Details on the volume of fuel to be provided were not disclosed, but the supply agreement begins immediately and builds on a strategic collaboration the carrier established with Shell in 2023 to accelerate the decarbonization of its alternative marine fuel. “This agreement helps secure the fuel certainty and supply reliability we need to further expand the use of waste-based renewable fuels across our fleet,” Jan Christensen, senior director of global fuel purchasing at Hapag-Lloyd, said in a statement Thursday. Christensen added that it is important for carriers to use the lower-emission fuels that are already available today, rather than waiting for future solutions. Hapag-Lloyd currently has 13 dual-fuel LNG container ships in its fleet, known as the Hamburg Express class, which were ordered in November 2024 . The last vessel in the order, Wilhelmshaven Express, was delivered earlier this year. The carrier has another 24 container ships — 12 16,800-TEU ships and 12 9,200-TEU vessels — capable of running on either LNG or ammonia on order and scheduled for delivery starting in 2027. Hapag-Lloyd aims to achieve net-zero fleet operations by 2045, cutting emissions across its fleet while supporting customers in their efforts to decarbonize their supply chains. Biomethane, also known as bio-LNG, will play a significant role in this decarbonization strategy. ‘Fueling the next chapter’ The fuel choice by ocean carriers — at least for now — is increasingly between LNG and methanol. Ships capable of running on one of those two fuels comprised 70% of the total 1.7 million TEUs of vessel capacity ordered in 2024, according to data from Sea-web, a sister product of the Journal of Commerce within S&P Global. In July, Mediterranean Shipping Co. (MSC) ordered six 22,000-TEU dual-fuel LNG vessels and upsized another six LNG-fueled container ships from 19,000 TEUs to 22,000 TEUs, while Yang Ming ordered seven 15,000-TEU dual-fuel LNG ships. In February, Taiwan’s Evergreen Marine ordered 11 24,000-TEU LNG-capable vessels , while Maersk last year ordered dual-fuel vessels totaling 800,000 TEUs capable of sailing on methanol as well as LNG. Several carriers have also signed similar deals to lock in fuel supply. Hapag-Lloyd in November last year signed an agreement with Chinese energy producer Goldwind for the annual supply of 250,000 tons of green methanol per year from 2026, joining Gemini Cooperation partner Maersk, which already has a 500,000-tons-per-year green methanol deal with Goldwind. CMA CGM inked a long-term LNG supply agreement with TotalEnergies that will run from 2028 to 2040 and power the carrier’s dual-fuel fleet, which will number 123 vessels by 2029. Dexter Belmar, vice president of global downstream LNG at Shell, said these deals help build the confidence needed to produce and consume renewable fuels at scale. “Bio-LNG is no longer a concept — it’s here, and it’s fueling the next chapter of shipping decarbonization,” he said in the joint statement, noting that Shell now offers liquefied biomethane at 22 strategic locations within its global LNG bunkering network. Biomethane is a drop-in fuel that enables LNG dual-fuel vessels to transition to renewable fuels without any equipment modifications. Derived from the decomposition of organic waste, such as crop residues, livestock manure and food waste, biogas is upgraded to biomethane by removing CO2 and impurities. The liquefied biomethane is then fed into the local gas grid, liquefied and supplied to ships on a mass-balanced basis. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Asia-Europe

Trans-Pacific

Hapag-Lloyd locks in LNG supply with Shell fuel deal

<div class="phx-topic abstract-wrapper">Experts from the Working Group on US Nuclear Dominance recommend a federal review of critical supply chain components and bottlenecks as they relate to nuclear project cargo transport. </div>

Experts from the Working Group on US Nuclear Dominance recommend a federal review of critical supply chain components and bottlenecks as they relate to nuclear project cargo transport.

<div class="phx-topic">To achieve global dominance, the US nuclear energy sector will need “committed and sustained federal action” in developing related domestic manufacturing and heavy-lift project supply chains, according to a new report sponsored by a pair of nonprofit public policy and energy reform think tanks. The report outlines a roadmap for US President Donald Trump’s nuclear policy agenda, following executive orders signed in May aiming to build 10 new large-scale reactors by 2030 and quadruple US installed nuclear capacity to 400 GW by 2050. “These reactors can meet the demands of America’s growing economy — and the world’s — but they can fulfill their potential only if the federal government does its part to get nuclear energy policy right,” the Working Group on US Nuclear Dominance concluded. “We need to build and operate nuclear reactors in America and export them to the world.” The group consists of senior leaders from the energy, policy, financial, legal, academic and technical sectors assembled by the nonprofit Energy Innovation Reform Project and the Center for the National Interest. The nuclear build-out, especially large-scale reactor projects, could become a prominent source of breakbulk and project cargo activity if they come to fruition. But getting there will require the US to fill some gaps in its nuclear supply chain. The report recommends a federal review to assess critical supply chain components and bottlenecks, examine tariffs affecting nuclear energy supply chains, and map out US manufacturing timelines. Despite the current wave of momentum, an overwhelming regulatory environment and the challenges of supporting the sector’s growth could prevent the US nuclear industry from ramping up to the levels some may want, Lucas Strom, head of US industrial projects for DHL Global Forwarding, told the Journal of Commerce. “The time and cost it takes to get nuclear projects going usually deters companies from following that path,” Strom said. “With administrations changing every four to eight years, I think it’s going to be a challenge on a broad scale.” <h3>Rapid growth expectations </h3>The drive to scale up the US nuclear sector has already resulted in efforts to reactivate decommissioned nuclear plants, including an 835-MW reactor at Three Mile Island in Pennsylvania to power datacenters for Microsoft and the 800-MW Palisades Nuclear Plant in Michigan. In the last three years, the industry has shifted from shutting down nuclear plants to opening them up, according to Patrick O’Brien, director of government affairs and communications at energy equipment manufacturer Holtec International. “You’ve really seen a shift in how nuclear is valued, both from a public perception but also from an elected official perception,” he said during a Sept. 5 webcast hosted by S&amp;P Global, parent company of the Journal of Commerce. New research from Morgan Stanley indicates that global nuclear capacity could more than double to 860 GW by 2050, the financial services firm said in an Aug. 12 report. That estimate is 53% higher than Morgan Stanley’s initial forecast published last year, when analysts predicted that a “renaissance” was coming for the industry. Morgan Stanley now estimates that investments in the global nuclear sector will reach $2.2 trillion in the next 25 years, up from $1.5 trillion in its previous projection. The US is the world’s largest producer of nuclear power, but China currently has the most nuclear power plants under construction, planned or proposed and is on track to surpass the US as the global leader in nuclear capacity by 2030, according to the Morgan Stanley report. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

To achieve global dominance, the US nuclear energy sector will need “committed and sustained federal action” in developing related domestic manufacturing and heavy-lift project supply chains, according to a new report sponsored by a pair of nonprofit public policy and energy reform think tanks. The report outlines a roadmap for US President Donald Trump’s nuclear policy agenda, following executive orders signed in May aiming to build 10 new large-scale reactors by 2030 and quadruple US installed nuclear capacity to 400 GW by 2050. “These reactors can meet the demands of America’s growing economy — and the world’s — but they can fulfill their potential only if the federal government does its part to get nuclear energy policy right,” the Working Group on US Nuclear Dominance concluded. “We need to build and operate nuclear reactors in America and export them to the world.” The group consists of senior leaders from the energy, policy, financial, legal, academic and technical sectors assembled by the nonprofit Energy Innovation Reform Project and the Center for the National Interest. The nuclear build-out, especially large-scale reactor projects, could become a prominent source of breakbulk and project cargo activity if they come to fruition. But getting there will require the US to fill some gaps in its nuclear supply chain. The report recommends a federal review to assess critical supply chain components and bottlenecks, examine tariffs affecting nuclear energy supply chains, and map out US manufacturing timelines. Despite the current wave of momentum, an overwhelming regulatory environment and the challenges of supporting the sector’s growth could prevent the US nuclear industry from ramping up to the levels some may want, Lucas Strom, head of US industrial projects for DHL Global Forwarding, told the Journal of Commerce. “The time and cost it takes to get nuclear projects going usually deters companies from following that path,” Strom said. “With administrations changing every four to eight years, I think it’s going to be a challenge on a broad scale.” Rapid growth expectations The drive to scale up the US nuclear sector has already resulted in efforts to reactivate decommissioned nuclear plants, including an 835-MW reactor at Three Mile Island in Pennsylvania to power datacenters for Microsoft and the 800-MW Palisades Nuclear Plant in Michigan. In the last three years, the industry has shifted from shutting down nuclear plants to opening them up, according to Patrick O’Brien, director of government affairs and communications at energy equipment manufacturer Holtec International. “You’ve really seen a shift in how nuclear is valued, both from a public perception but also from an elected official perception,” he said during a Sept. 5 webcast hosted by S&P Global, parent company of the Journal of Commerce. New research from Morgan Stanley indicates that global nuclear capacity could more than double to 860 GW by 2050, the financial services firm said in an Aug. 12 report. That estimate is 53% higher than Morgan Stanley’s initial forecast published last year, when analysts predicted that a “renaissance” was coming for the industry. Morgan Stanley now estimates that investments in the global nuclear sector will reach $2.2 trillion in the next 25 years, up from $1.5 trillion in its previous projection. The US is the world’s largest producer of nuclear power, but China currently has the most nuclear power plants under construction, planned or proposed and is on track to surpass the US as the global leader in nuclear capacity by 2030, according to the Morgan Stanley report. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk News

Breakbulk carriers

Energy projects

Heavy-haul transport

Project cargo

‘Committed’ federal supply chain support key to US nuclear build-out: report

<div class="phx-topic abstract-wrapper">The suspension of the TP9/WC6 service from Xiamen and Busan is the latest effort by carriers to stem declining container spot rates and adjusting capacity to softening demand.</div>

The suspension of the TP9/WC6 service from Xiamen and Busan is the latest effort by carriers to stem declining container spot rates and adjusting capacity to softening demand.

<div class="phx-topic">Clarification: A previous version of this story referred to the TP9/WC6 as a standalone Maersk service. The Gemini Cooperation is suspending a relatively new trans-Pacific service, the latest effort by ocean carriers to adjust capacity to meet falling demand and put a floor on US inbound container spot rates, Gemini partners Maersk and Hapag-Lloyd said Wednesday. The suspension of the T9/WC6 service, which Gemini introduced to take advantage of a tariff-induced volume surge, comes <a href="https://www.joc.com/article/premier-alliance-service-halt-latest-sign-of-trans-pacific-demand-downturn-6076326">after Maersk and Hapag-Lloyd warned customers of three blank sailings next month</a>, reflecting a fast-shifting market. The last sailing of the TP9, which connected Xiamen, Busan and Long Beach, will depart Busan Sept. 23. “This service was introduced over the summer to provide more capacity in those traditional peak-volume months, with a port coverage that duplicates what we have on the standing network,” a Maersk spokesperson told the Journal of Commerce Wednesday. The suspension followed a similar announcement that the Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming would <a href="https://www.joc.com/article/premier-alliance-service-halt-latest-sign-of-trans-pacific-demand-downturn-6076326">suspend its Pacific South 5 express service</a>. US retailers forecast import volumes will <a href="https://www.joc.com/article/us-retailers-upgrade-import-forecast-but-still-expect-q4-decline-6077875">fall sharply in the fourth quarter</a> and into January, putting pressure on carriers to remove functional capacity. Carriers are also leaning on blank sailings to manage trans-Pacific capacity, blanking about 10% of deployed tonnage to the US West Coast in September and October, according to maritime intelligence provider eeSea. Almost 18% of deployed capacity from Asia to the East and Gulf coasts will be blanked, up from 12.8% in September. Even so, container lines plan to deploy a total of 2.1 million TEUs of capacity from Asia to the US this month after accounting for blank sailings, up from 1.9 million TEUs in September 2024, according to eeSea. The next significant wave of capacity adjustments will come during the first half of October, when carriers will blank at least 18 sailings on Asia–North America routes. Container spot rates, as tracked by various indices, have been declining since early June. Average pricing from Asia to the West Coast reached $2,100 per FEU on Sept. 9, down 66% from $6,040 per FEU in the week of June 6, according to Platts, a sister product of the Journal of Commerce within S&amp;P Global. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com.</a></div>

Clarification: A previous version of this story referred to the TP9/WC6 as a standalone Maersk service. The Gemini Cooperation is suspending a relatively new trans-Pacific service, the latest effort by ocean carriers to adjust capacity to meet falling demand and put a floor on US inbound container spot rates, Gemini partners Maersk and Hapag-Lloyd said Wednesday. The suspension of the T9/WC6 service, which Gemini introduced to take advantage of a tariff-induced volume surge, comes after Maersk and Hapag-Lloyd warned customers of three blank sailings next month , reflecting a fast-shifting market. The last sailing of the TP9, which connected Xiamen, Busan and Long Beach, will depart Busan Sept. 23. “This service was introduced over the summer to provide more capacity in those traditional peak-volume months, with a port coverage that duplicates what we have on the standing network,” a Maersk spokesperson told the Journal of Commerce Wednesday. The suspension followed a similar announcement that the Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming would suspend its Pacific South 5 express service . US retailers forecast import volumes will fall sharply in the fourth quarter and into January, putting pressure on carriers to remove functional capacity. Carriers are also leaning on blank sailings to manage trans-Pacific capacity, blanking about 10% of deployed tonnage to the US West Coast in September and October, according to maritime intelligence provider eeSea. Almost 18% of deployed capacity from Asia to the East and Gulf coasts will be blanked, up from 12.8% in September. Even so, container lines plan to deploy a total of 2.1 million TEUs of capacity from Asia to the US this month after accounting for blank sailings, up from 1.9 million TEUs in September 2024, according to eeSea. The next significant wave of capacity adjustments will come during the first half of October, when carriers will blank at least 18 sailings on Asia–North America routes. Container spot rates, as tracked by various indices, have been declining since early June. Average pricing from Asia to the West Coast reached $2,100 per FEU on Sept. 9, down 66% from $6,040 per FEU in the week of June 6, according to Platts, a sister product of the Journal of Commerce within S&P Global. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com . Contact Laura Robb at laura.robb@spglobal.com.

Gemini suspends seasonal trans-Pacific service

<div class="phx-topic abstract-wrapper">Lean inventory management and low sales ratios could lead to stockouts in early 2026, Armada Corporate Intelligence warns, depending on the strength of consumer demand. </div>

Lean inventory management and low sales ratios could lead to stockouts in early 2026, Armada Corporate Intelligence warns, depending on the strength of consumer demand.

<div class="phx-topic">The US freight downturn is stretching into its fourth year, but inventory restocking may give trucking a boost in early 2026, an analyst told a Journal of Commerce webcast Tuesday. “Inventory-to-sales ratios right now are not as elevated as we would expect, with all the inbound freight that hit us in June and July,” Keith Prather, managing director and partner at Armada Corporate Intelligence, said during the Mid-Year Trucking Outlook webcast. “Only about 7% of the market is overstocked,” compared with June 2019, Prather said. Excepting durable goods, about 28% of the market is overstocked compared with a 10-year average. If consumers continue to spend, “there are stockouts possible in some industries,” he said, leading to inventory replenishment in the first half of 2026. That could mean more freight moving in tractor-trailers.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="f7f23f1a-7279-43e9-b9c6-557d1fcfc85b"></dynamic-object></div>Whether consumers will open their wallets wider in the fourth quarter is a big question. Although the US doesn’t appear headed toward a recession, growth is weak, Paul Bingham, director of transportation consulting for S&amp;P Global Market Intelligence, said. Consumer spending “is not going to go into decline like we would see in a recession, but it’s still going to be weak in the second half of the year,” Bingham said during the webcast. Spending on durable goods will drop year over year in 2025, he predicted, “and that’s even accounting for the pull-ahead spending where people were buying automobiles and appliances to get ahead of tariff inflation.” Inventory-to-sales ratios (ISRs) compare the value of a company’s inventory to net sales and provide a measure of how quickly inventory moves off the shelf. The lower the ratio, the greater the supply-chain efficiency, but as ratios drop, the risk of stockouts and lost sales rises, with less inventory on hand. General merchandise stores, including Walmart and Costco, had an ISR of 1.28 in June, the last month for which data are available. That’s 10.5% lower than the 10-year average of 1.43 and 6% below the pre-pandemic June 2019 reading of 1.36. The retail sector as a whole had an ISR of 1.30 in June, down 9.1% from the 10-year average (1.43) and 11% below June 2019 (1.46). Merchant wholesalers, with an ISR of 1.30, were up 0.8% from their 10-year average (1.29) and down 4% from June 2019 (1.35). Manufacturers could be called “overstocked,” Prather said, with a June ISR of 1.57, 16.3% above their 10-year average (1.35) and 9% higher than in June 2019 (1.44). <h3>Matching inventory, demand </h3>Armada’s analysis coincides with reports of importers holding some shipments, drawing down pre-tariff stocks and generally practicing lean inventory management to cope with uncertainty created by high US tariffs. Retailer Kirkland, for example, has said it is “metering and holding” imports as it navigates tariff deadlines and seasonal demand. Other retailers accelerated shipments, as did manufacturers looking to avoid higher input costs. “Shippers did a great job of pulling down inventory” in the first half of 2025, Cory Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, told the Journal of Commerce last month. “(Inventories) were flat going into ‘Liberation Day,’ got pulled down, and now they’ve climbed back up,” Klujsza said, referring to the April 2 introduction of US reciprocal tariffs. But are inventories low enough to cause stockouts and a supply chain reset? That depends on the level of demand. The good news is that the US economy does not appear to be heading into a recession, said Bingham. S&amp;P Global, the parent company of the Journal of Commerce, forecasts US real GDP will expand 1.9% in 2025, down from 2.8% in 2024. “Consumers are still purchasing goods, we still have some business spending and that’s keeping us out of recession,” Bingham said. “But this is a <a href="https://www.joc.com/article/us-truckload-market-mired-in-malaise-as-import-surge-wanes-6075566">weak growth economy</a>.” Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. Journal of Commerce Research Analyst Cathy Morrow Roberson contributed to this story.</div>

The US freight downturn is stretching into its fourth year, but inventory restocking may give trucking a boost in early 2026, an analyst told a Journal of Commerce webcast Tuesday. “Inventory-to-sales ratios right now are not as elevated as we would expect, with all the inbound freight that hit us in June and July,” Keith Prather, managing director and partner at Armada Corporate Intelligence, said during the Mid-Year Trucking Outlook webcast. “Only about 7% of the market is overstocked,” compared with June 2019, Prather said. Excepting durable goods, about 28% of the market is overstocked compared with a 10-year average. If consumers continue to spend, “there are stockouts possible in some industries,” he said, leading to inventory replenishment in the first half of 2026. That could mean more freight moving in tractor-trailers. Whether consumers will open their wallets wider in the fourth quarter is a big question. Although the US doesn’t appear headed toward a recession, growth is weak, Paul Bingham, director of transportation consulting for S&P Global Market Intelligence, said. Consumer spending “is not going to go into decline like we would see in a recession, but it’s still going to be weak in the second half of the year,” Bingham said during the webcast. Spending on durable goods will drop year over year in 2025, he predicted, “and that’s even accounting for the pull-ahead spending where people were buying automobiles and appliances to get ahead of tariff inflation.” Inventory-to-sales ratios (ISRs) compare the value of a company’s inventory to net sales and provide a measure of how quickly inventory moves off the shelf. The lower the ratio, the greater the supply-chain efficiency, but as ratios drop, the risk of stockouts and lost sales rises, with less inventory on hand. General merchandise stores, including Walmart and Costco, had an ISR of 1.28 in June, the last month for which data are available. That’s 10.5% lower than the 10-year average of 1.43 and 6% below the pre-pandemic June 2019 reading of 1.36. The retail sector as a whole had an ISR of 1.30 in June, down 9.1% from the 10-year average (1.43) and 11% below June 2019 (1.46). Merchant wholesalers, with an ISR of 1.30, were up 0.8% from their 10-year average (1.29) and down 4% from June 2019 (1.35). Manufacturers could be called “overstocked,” Prather said, with a June ISR of 1.57, 16.3% above their 10-year average (1.35) and 9% higher than in June 2019 (1.44). Matching inventory, demand Armada’s analysis coincides with reports of importers holding some shipments, drawing down pre-tariff stocks and generally practicing lean inventory management to cope with uncertainty created by high US tariffs. Retailer Kirkland, for example, has said it is “metering and holding” imports as it navigates tariff deadlines and seasonal demand. Other retailers accelerated shipments, as did manufacturers looking to avoid higher input costs. “Shippers did a great job of pulling down inventory” in the first half of 2025, Cory Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, told the Journal of Commerce last month. “(Inventories) were flat going into ‘Liberation Day,’ got pulled down, and now they’ve climbed back up,” Klujsza said, referring to the April 2 introduction of US reciprocal tariffs. But are inventories low enough to cause stockouts and a supply chain reset? That depends on the level of demand. The good news is that the US economy does not appear to be heading into a recession, said Bingham. S&P Global, the parent company of the Journal of Commerce, forecasts US real GDP will expand 1.9% in 2025, down from 2.8% in 2024. “Consumers are still purchasing goods, we still have some business spending and that’s keeping us out of recession,” Bingham said. “But this is a weak growth economy .” Contact William B. Cassidy at bill.cassidy@spglobal.com . Journal of Commerce Research Analyst Cathy Morrow Roberson contributed to this story.

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Transform Barge Operations with Total Visibility

At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: <a href="https://www.ssamarine.mx/" rel="noreferrer" class="joc_admin__link">https://www.ssamarine.mx/</a>

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SSA Marine Mexico: True Commitment to Sustainability

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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