<div class="phx-topic abstract-wrapper">Leonard Sahling sees performance-based logistics as "the next big thing" in supply-chain management.</div>

Leonard Sahling sees performance-based logistics as "the next big thing" in supply-chain management.

<div>Leonard Sahling sees performance-based logistics as "the next big thing" in supply-chain management.In an industry noted for its vague jargon, performance-based logistics is pretty much what its name indicates. The concept works like this: A third-party logistics provider and a client establish a collaborative partnership at the outset of their relationship. The client articulates as precisely as possible what it really wants to accomplish. The 3PL finds the best way to achieve the goals and is paid accordingly."It fits into the whole movement toward effective and successful collaboration," said Sahling, first vice president, global, at ProLogis, the big warehouse and...

Leonard Sahling sees performance-based logistics as "the next big thing" in supply-chain management. In an industry noted for its vague jargon, performance-based logistics is pretty much what its name indicates. The concept works like this: A third-party logistics provider and a client establish a collaborative partnership at the outset of their relationship. The client articulates as precisely as possible what it really wants to accomplish. The 3PL finds the best way to achieve the goals and is paid accordingly. "It fits into the whole movement toward effective and successful collaboration," said Sahling, first vice president, global, at ProLogis, the big warehouse and distribution-center 3PL. Most current logistics contracts are transactional in nature, based on the number of phone calls, for example, or orders filled, or the number of pallets or containers moved. The 3PL gets paid regardless of whether the client feels the 3PL is reaching the client's goals. Under performance-based logistics, payments to the 3PL are based on its success in delivering outcomes. "The client does not pay for unit transactions of such support services as warehousing, transportation, spare parts, repairs or hours of technical support," said a recent report in the ProLogis Supply Chain Review. When a 3PL succeeds under such a contract, "service providers will be rewarded with increased profits, longer-term contracts and the opportunity to earn even greater profits through a variety of incentives," the ProLogis report said. Comparing the traditional contract approach to the performance-based logistics contract reveals sharp differences in structure and pricing. ProLogis said the traditional 3PL contract length typically is one to three years. A performance-based contract's length is tied to the "payback period" for the service provider to recoup its investments. Pricing models in the traditional contract are usually one of three varieties: fixed-price per transaction, fixed-price per transaction plus incentives, or cost-plus with fixed margins per transaction. Under a performance-based contract, pricing is usually fixed-price for the solution with a monthly management fee, or fixed price plus incentives. Under performance-based contracts, "the traditional relationship is turned on its head," Sahling said. "The 3PL is paid on the basis of achieving the goals. Basically, you stop defining goals on a transactional basis." The ProLogis report, written by Kate Vitasek, managing partner of Supply Chain Visions of Bellevue, Wash., and Steve Geary, a partner at Supply Chain Visions, describes performance-based logistics as "a new collaborative business model designed to align the interests of both the client and the logistics service provider." The Defense Department has embraced the performance-based logistics approach for logistics services. The ProLogis report said the military has used the concept to improve performance and cut costs of logistics support for weapons systems, as well as parts such as tires and subsystems such as engines. A recent example of the process was evident in the U.S. Transportation Command's huge Defense Transportation Coordination Initiative contract awarded to Menlo Worldwide - worth potentially $1.6 billion. For the first time, Transcom will use a private 3PL to manage most of its freight movements in the continental United States. DTCI is widely described by those involved as not an outsourcing initiative but as a long-term, strategic partnership. "DTCI is a team effort . . . Menlo will utilize best commercial practices to enable load consolidation and optimization, use of more efficient intermodal means of transportation and tailored scheduling to meet the customer requirements," said Air Force General Norton A. Schwartz, Transcom commander. Transcom's contract with Menlo has three phases, with specific implementation and performance goals at each step. "In our view, one of the key lessons is about planning - with a project like this, an organization must clearly define every detail, including regulations, performance metrics, frequency of measurement, data input and data management, and integration protocols," said Robert L. Bianco, senior vice president of Con-way Inc. and president of Menlo Worldwide. "The term 'outsourcing' really doesn't apply." The Pentagon's use of performance-based logistics has grown dramatically. The Navy first used it for a $35 million contract in 1998; last year, the Navy had more than $800 million in performance-based logistics contracts. An October 2006 Defense Department directive outlined the DOD's intention to extend the concept to all of its major procurement categories. Companies considering performance-based logistics should realize they are entering into "de facto partnerships with their logistics services providers and that these partnerships cannot be created overnight," the ProLogis report said. If performance-based logistics is so good, why isn't it more widely used? Sahling said the concept is simple, but execution is difficult. "It takes a high level of collaboration at the outset and throughout the 3PL-client relationship," he said. "It's human nature - it's difficult for us to collaborate with each other." Sahling noted that 3PLs and their clients "often have testy relationships. Usually the client has to beat its 3PLs over the head to get costs down." Sahling said many 3PLs and customers have "kind of a landlord-tenant relationship," with little trust. Performance-based contracts "require a change in the way each side thinks about the relationship," he said. Managing risk is one of the main issues that supply-chain managers face. The ProLogis report said a properly designed performance-based contract will use improved collaboration to reduce both partners' risks, "thereby eliminating uncertainty and the associated drag on effectiveness and operating costs." "It smacks of common sense to me," Sahling said. "It addresses the problems that have prevented true collaboration from taking off so far. The DOD approach is something we would like to see applied in the private sector. We're proselytizing for this and trying to get people to think differently." Bill DiBenedetto can be contacted at bdibenedetto@joc.com . Readers of the digital edition of the JoC who want more information can click on: www.prologis.com/ www.scvisions.com/

Transport, Trade and Regulation News

Paying for results

<div class="phx-topic abstract-wrapper">The trucking shutdown adds to existing pressure at India’s busiest container gateway after a buildup of import boxes caused severe rail slowdowns last month.</div>

The trucking shutdown adds to existing pressure at India’s busiest container gateway after a buildup of import boxes caused severe rail slowdowns last month.

Feature image

<div class="phx-topic">Landside cargo flow in and out of the ports of Mundra and Kandla has effectively been shut down after drayage operators serving the western Indian ports walked out Friday, bringing over-the-road cargo traffic in the region to a standstill, industry sources tell the Journal of Commerce. The shutdown adds to existing pressure at Adani Ports-operated Mundra, which only recently recovered from <a href="https://www.joc.com/article/congestion-choking-mundra-port-threatens-north-india-cargo-flow-6074653">severe rail congestion</a>. Approximately 70% of containerized cargo landing at Mundra, the busiest container gateway in India, moves inland by truck. The strike action, reportedly involving about 35,000 freight vehicles, revolves around long-standing demands, with highway infrastructure improvements at the top of that list. “Movement of import and export cargo through Mundra, Kandla and CFS [container freight station] facilities, [container] empty depots and associated industrial units will remain suspended until further notice,” the striking truckers said in a joint statement. “This collective action is intended to ensure long-term solutions that will ultimately benefit the entire trade and industry ecosystem connected with Mundra and Kandla.” Carrier sources in Mundra have voiced concerns over the drayage halt as cargo lifts remain under growing pressure due to a US tariff-linked downturn in westbound volumes and no immediate sign that the strike will result in fresh negotiations. “Anticipating truck service disruptions, we have managed to pre-gate additional containers into the terminal for our week-end US East Coast sailing,” said an operations executive at a European carrier who asked not to be identified. “But the impact for early next week vessels will be heavy if the strike is not lifted by then.” A truck owner with major hauling stakes in Mundra said drayage carriers will not budge on their demands for better highway conditions amid constantly rising toll rates. “We are fighting a well-coordinated ‘no road, no toll’ battle,” the source said. “We had issued strike notices in advance to help all trade stakeholders plan their critical or urgent shipments ahead of the strike.” The shutdown comes amid an easing of severe rail delays at Mundra that were triggered by a buildup of import containers. “The rail system is now largely back to normal, though there might still be some minor delays in transfer of containers at the port upon arrival due to yard lingering space problems,” a freight forwarder familiar with the port’s operations told the Journal of Commerce. Container volumes through Mundra rose 4% year over year to 5.6 million TEUs in the first eight months of 2025, according to data obtained by the Journal of Commerce. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Landside cargo flow in and out of the ports of Mundra and Kandla has effectively been shut down after drayage operators serving the western Indian ports walked out Friday, bringing over-the-road cargo traffic in the region to a standstill, industry sources tell the Journal of Commerce. The shutdown adds to existing pressure at Adani Ports-operated Mundra, which only recently recovered from severe rail congestion . Approximately 70% of containerized cargo landing at Mundra, the busiest container gateway in India, moves inland by truck. The strike action, reportedly involving about 35,000 freight vehicles, revolves around long-standing demands, with highway infrastructure improvements at the top of that list. “Movement of import and export cargo through Mundra, Kandla and CFS [container freight station] facilities, [container] empty depots and associated industrial units will remain suspended until further notice,” the striking truckers said in a joint statement. “This collective action is intended to ensure long-term solutions that will ultimately benefit the entire trade and industry ecosystem connected with Mundra and Kandla.” Carrier sources in Mundra have voiced concerns over the drayage halt as cargo lifts remain under growing pressure due to a US tariff-linked downturn in westbound volumes and no immediate sign that the strike will result in fresh negotiations. “Anticipating truck service disruptions, we have managed to pre-gate additional containers into the terminal for our week-end US East Coast sailing,” said an operations executive at a European carrier who asked not to be identified. “But the impact for early next week vessels will be heavy if the strike is not lifted by then.” A truck owner with major hauling stakes in Mundra said drayage carriers will not budge on their demands for better highway conditions amid constantly rising toll rates. “We are fighting a well-coordinated ‘no road, no toll’ battle,” the source said. “We had issued strike notices in advance to help all trade stakeholders plan their critical or urgent shipments ahead of the strike.” The shutdown comes amid an easing of severe rail delays at Mundra that were triggered by a buildup of import containers. “The rail system is now largely back to normal, though there might still be some minor delays in transfer of containers at the port upon arrival due to yard lingering space problems,” a freight forwarder familiar with the port’s operations told the Journal of Commerce. Container volumes through Mundra rose 4% year over year to 5.6 million TEUs in the first eight months of 2025, according to data obtained by the Journal of Commerce. Contact Bency Mathew at bencyvmathew@gmail.com .

Maritime

Port News

Drayage

International ports

Drayage strike shuts inland flow from Mundra, Kandla ports

<div class="phx-topic abstract-wrapper">The world’s largest container ship operator “proactively restructured” its US service network to mitigate any impact from the Trump administration’s new levies on Chinese ships, according to MSC CEO Soren Toft.</div>

The world’s largest container ship operator “proactively restructured” its US service network to mitigate any impact from the Trump administration’s new levies on Chinese ships, according to MSC CEO Soren Toft.

<div class="phx-topic">Mediterranean Shipping Co. (MSC) is the latest carrier to change vessel deployments for its US network ahead of new port fees on Chinese-built ships, signaling to its shippers that the carrier will absorb, if not entirely avoid, the cost of the new fees.In a customer advisory sent Thursday, CEO Soren Toft said MSC “proactively restructured its global vessel network” in response to <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">the US Trade Representative’s fees on Chinese-built or -operated ships calling US ports</a>. The fees, scheduled to start Oct. 14 and based on the higher of either gross tonnage or container volume, amount to an extra $300 to $600 per container by various estimates.“This internal adjustment ensures full alignment with applicable US trade regulations while maintaining the reliability and efficiency of MSC’s service offerings,” Toft said in the notice. MSC’s announcement comes after CMA CGM said Wednesday that <a href="https://www.joc.com/article/cma-cgm-reroutes-china-built-ships-to-avoid-us-port-fees-6078488">it doesn’t plan to charge customers</a> shipping to the US to cover the cost of the new fees after removing Chinese-built ships from its US service networks. China’s Cosco Shipping, which will not be able to avoid the fee due its ownership, also does not plan to levy a surcharge, according to a carrier executive and Cosco customer familiar with the carrier’s plan.Thirty-five of the 266 individual ships operated by MSC that called the US during the last six months were built in China, according to data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global.While many of those were likely ad hoc calls, some of MSC’s Chinese fleet that was in regular rotation to the US now appear to be deployed to non-US trades, Sea-web and vessel schedules show. The 9,411-TEU MSC Jeongmin, which has made 154 calls to the US over the last five years, the last of which was to Los Angeles in August as part of the carrier’s California Express service from Europe, is now part of the Levante Express service between the Mediterranean and northern Europe. The 8,496-TEU MSC Ivory Coast, which made 13 US calls over the last five years, is now listed in the rotation for the carrier’s West Mediterranean-Red Sea service.MSC’s fleet composition offers versatility in its deployments. According to Sea-web data, about half of MSC’s active container fleet is from South Korean shipbuilders, while Chinese vessels make up about a quarter of its fleet. However, MSC has an additional 106 vessels, with an aggregate capacity of 1.9 million TEUs, on order or under construction at Chinese shipyards, with no known orders from South Korean yards on its books, Sea-web data shows. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Mediterranean Shipping Co. (MSC) is the latest carrier to change vessel deployments for its US network ahead of new port fees on Chinese-built ships, signaling to its shippers that the carrier will absorb, if not entirely avoid, the cost of the new fees. In a customer advisory sent Thursday, CEO Soren Toft said MSC “proactively restructured its global vessel network” in response to the US Trade Representative’s fees on Chinese-built or -operated ships calling US ports . The fees, scheduled to start Oct. 14 and based on the higher of either gross tonnage or container volume, amount to an extra $300 to $600 per container by various estimates. “This internal adjustment ensures full alignment with applicable US trade regulations while maintaining the reliability and efficiency of MSC’s service offerings,” Toft said in the notice. MSC’s announcement comes after CMA CGM said Wednesday that it doesn’t plan to charge customers shipping to the US to cover the cost of the new fees after removing Chinese-built ships from its US service networks. China’s Cosco Shipping, which will not be able to avoid the fee due its ownership, also does not plan to levy a surcharge, according to a carrier executive and Cosco customer familiar with the carrier’s plan. Thirty-five of the 266 individual ships operated by MSC that called the US during the last six months were built in China, according to data from Sea-web, a sister company of the Journal of Commerce within S&P Global. While many of those were likely ad hoc calls, some of MSC’s Chinese fleet that was in regular rotation to the US now appear to be deployed to non-US trades, Sea-web and vessel schedules show. The 9,411-TEU MSC Jeongmin, which has made 154 calls to the US over the last five years, the last of which was to Los Angeles in August as part of the carrier’s California Express service from Europe, is now part of the Levante Express service between the Mediterranean and northern Europe. The 8,496-TEU MSC Ivory Coast, which made 13 US calls over the last five years, is now listed in the rotation for the carrier’s West Mediterranean-Red Sea service. MSC’s fleet composition offers versatility in its deployments. According to Sea-web data, about half of MSC’s active container fleet is from South Korean shipbuilders, while Chinese vessels make up about a quarter of its fleet. However, MSC has an additional 106 vessels, with an aggregate capacity of 1.9 million TEUs, on order or under construction at Chinese shipyards, with no known orders from South Korean yards on its books, Sea-web data shows. Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Container lines

MSC ready for US port fees after network changes: CEO

<div class="phx-topic abstract-wrapper">Little to no scrapping and scant new orders should keep the MPV fleet stable for now, but things could change quickly if demand surges. </div>

Little to no scrapping and scant new orders should keep the MPV fleet stable for now, but things could change quickly if demand surges.

<div class="phx-topic">The multipurpose and heavy-lift (MPV/HL) shipping sector is walking a fine line between stability and potential capacity shortfalls, according to experts. A modest order book and an aging MPV/HL fleet means the delicate balance of supply and demand in the breakbulk and project cargo industry is vulnerable to sudden changes in global economics, geopolitics and shipper strategies, experts said during a Journal of Commerce webcast Sept. 11. Despite a “relatively positive” outlook for cargo demand, “carriers have consistently stressed that they will not order additional ships without outside investment and/or long-term commitments from shippers,” said Susan Oatway, senior research analyst at the Journal of Commerce. There were 143 MPV/HLs on order at the end of July, equivalent to 9% of the current operating fleet, according to a Journal of Commerce analysis. The order book is dominated by heavy-lift capable vessels, with 63% of new buildings on order capable of lifting over 250 tons on a combinable lift. However, of the 80 heavy-lift vessels on order, only five are specialized deck carriers, and 13 have lift capability of more than 750 tons. At the same time, MPV demolitions have slowed “considerably” in 2025, Oatway said, with just four ships sent to the scrapyard through July, compared with 20 vessels in all of 2024. This dearth of scrapping is a primary reason for the upward revision in the Journal of Commerce’s fleet growth forecast, to 1.8% per year through 2029, although Oatway noted that growth is still only enough to replace tonnage exiting the market. Yorck Niclas Prehm, head of research at shipbroker Toepfer Transport, said demolitions have slowed because MPV ownership has become “an asset play.” There is no incentive for owners to scrap MPVs purchased during the COVID-19 pandemic, for example, until charter rates fall below operating costs for a given ship. <h3>‘Clear downward pressure’ </h3>Prehm said that given the current geopolitical climate, the “moderate” order book creates stability for both shippers and carriers. “The MPV segment is not overbuilt,” he said. Oatway said falling container freight rates and massive amounts of capacity hitting the water this year could prompt container lines to “chase even more breakbulk cargo,” while roll-on/roll-off ships could provide additional capacity for high and heavy project cargo. On the demand side, global GDP forecasts have “changed dramatically” in the last nine months, with “clear downward pressure on growth globally,” according to Peter Molloy, senior associate for breakbulk and heavy-lift at Drewry. “Although the demand spread has smoothed out, I don’t think it is something that everyone can sit back on,” Molloy told the webcast. Downward movement in MPV/HL charter rates illustrates the building pressure. The Toepfer Multipurpose Index (TMI), based on expected average rates for six- to 12-month time charters for 12,500 deadweight-ton (dwt) “F-Type” vessels, slipped 0.5%, to $12,753 per day in September, the third consecutive monthly decline. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ea382181-08cd-4298-912f-87c79836bcf7"></dynamic-object></div>In its latest TMI report, Toepfer said optimism in the MPV/HL sector “seems to be diminishing” amid heightened volatility in trades that, until recently, had been important demand drivers. “The most significant decline was in the Far East to America trades, as the various grace periods for the implementation of US import tariffs came to an end, and with them the race to move cargoes quickly and in advance,” Toepfer said. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

The multipurpose and heavy-lift (MPV/HL) shipping sector is walking a fine line between stability and potential capacity shortfalls, according to experts. A modest order book and an aging MPV/HL fleet means the delicate balance of supply and demand in the breakbulk and project cargo industry is vulnerable to sudden changes in global economics, geopolitics and shipper strategies, experts said during a Journal of Commerce webcast Sept. 11. Despite a “relatively positive” outlook for cargo demand, “carriers have consistently stressed that they will not order additional ships without outside investment and/or long-term commitments from shippers,” said Susan Oatway, senior research analyst at the Journal of Commerce. There were 143 MPV/HLs on order at the end of July, equivalent to 9% of the current operating fleet, according to a Journal of Commerce analysis. The order book is dominated by heavy-lift capable vessels, with 63% of new buildings on order capable of lifting over 250 tons on a combinable lift. However, of the 80 heavy-lift vessels on order, only five are specialized deck carriers, and 13 have lift capability of more than 750 tons. At the same time, MPV demolitions have slowed “considerably” in 2025, Oatway said, with just four ships sent to the scrapyard through July, compared with 20 vessels in all of 2024. This dearth of scrapping is a primary reason for the upward revision in the Journal of Commerce’s fleet growth forecast, to 1.8% per year through 2029, although Oatway noted that growth is still only enough to replace tonnage exiting the market. Yorck Niclas Prehm, head of research at shipbroker Toepfer Transport, said demolitions have slowed because MPV ownership has become “an asset play.” There is no incentive for owners to scrap MPVs purchased during the COVID-19 pandemic, for example, until charter rates fall below operating costs for a given ship. ‘Clear downward pressure’ Prehm said that given the current geopolitical climate, the “moderate” order book creates stability for both shippers and carriers. “The MPV segment is not overbuilt,” he said. Oatway said falling container freight rates and massive amounts of capacity hitting the water this year could prompt container lines to “chase even more breakbulk cargo,” while roll-on/roll-off ships could provide additional capacity for high and heavy project cargo. On the demand side, global GDP forecasts have “changed dramatically” in the last nine months, with “clear downward pressure on growth globally,” according to Peter Molloy, senior associate for breakbulk and heavy-lift at Drewry. “Although the demand spread has smoothed out, I don’t think it is something that everyone can sit back on,” Molloy told the webcast. Downward movement in MPV/HL charter rates illustrates the building pressure. The Toepfer Multipurpose Index (TMI), based on expected average rates for six- to 12-month time charters for 12,500 deadweight-ton (dwt) “F-Type” vessels, slipped 0.5%, to $12,753 per day in September, the third consecutive monthly decline. In its latest TMI report, Toepfer said optimism in the MPV/HL sector “seems to be diminishing” amid heightened volatility in trades that, until recently, had been important demand drivers. “The most significant decline was in the Far East to America trades, as the various grace periods for the implementation of US import tariffs came to an end, and with them the race to move cargoes quickly and in advance,” Toepfer said. Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk News

Breakbulk carriers

Multipurpose vessel supply-demand balance on knife edge

<div class="phx-topic abstract-wrapper">Equipment manufacturers and industry associations urged the US Department of Commerce to take a measured approach to avoid unintentionally harming the domestic wind industry.</div>

Equipment manufacturers and industry associations urged the US Department of Commerce to take a measured approach to avoid unintentionally harming the domestic wind industry.

<div class="phx-topic">US wind energy shippers are voicing concerns about potential tariffs and subsequent supply chain disruptions and delays to clean energy development that could result from a Department of Commerce investigation into imports of wind turbines and their components. In <a href="https://www.federalregister.gov/documents/2025/08/25/2025-16191/notice-of-request-for-public-comments-on-section-232-national-security-investigation-of-imports-of">public comments on the Section 232 national security investigation</a>, US equipment manufacturers and industry associations advocated for a measured approach to any potential remedies to avoid unintentionally harming the domestic industry. “If the administration decides to put additional tariffs on these wind components and parts in addition to those already being paid by the industry, the industry should be given time to adjust supply chains accordingly,” wrote Vanessa Sciarra, vice president for trade and international competitiveness at the American Clean Power Association. “[C]utting off access to affordable inputs before viable domestic or allied alternatives are available risks hurting US manufacturing efforts.” Henry Kelley, president of Blue Wind Technology, a US-based manufacturer of nacelles and other wind energy components, highlighted the dual challenge of protecting domestic industry while not stifling growth. “Wind is among the fastest-growing sectors in US energy security,” Kelley said. “Broad tariffs risk raising costs for manufacturers like Blue Wind without effectively targeting unfair trade practices.” Kelley painted a sobering picture of the current supply chain landscape, stating that “presently, there are no domestic suppliers ready to fully meet demand for many nacelle and turbine components.” He called for a “grace period” to allow US suppliers to scale up production and to prevent policy measures from “unintentionally derail[ing] clean energy progress.” Roger Martella, chief corporate officer and executive vice president of GE Vernova, emphasized the wind equipment manufacturer’s strong domestic footprint, noting that its “US supply chain consists of over 300 manufacturing and services suppliers representing over 50,000 total jobs, of which nearly 36,000 are manufacturing.” Martella also pointed to GE Vernova’s own technological innovations as a way to address cost concerns, stating that its new technology will “reduce manufacturing costs of casted components and provide a drastic financial advantage when compared to including costs of importation logistics and tariffs from China or the European Union.” Comments from the government of the People’s Republic of China, however, presented a starkly different perspective, calling the Section 232 measures a form of “bullying, unilateralism and protectionism under the pretext of national security.” The comments warned that “constraints on parts and components supply and higher turbine costs would discourage new construction and expansion of existing projects and reduce employment opportunities across the wind power sector in the United States.” Furthermore, the Chinese government argued that the US wind industry’s difficulties are rooted in internal structural issues, such as a lack of specialized installation vessels, limited port capacity and transportation pressures associated with larger turbines. “Before these internal structural issues are effectively resolved, attributing the US industry’s difficulties to imports will neither improve the resilience of the US domestic supply chain nor address the deeper challenges that the US wind power industry is facing,” it wrote. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

US wind energy shippers are voicing concerns about potential tariffs and subsequent supply chain disruptions and delays to clean energy development that could result from a Department of Commerce investigation into imports of wind turbines and their components. In public comments on the Section 232 national security investigation , US equipment manufacturers and industry associations advocated for a measured approach to any potential remedies to avoid unintentionally harming the domestic industry. “If the administration decides to put additional tariffs on these wind components and parts in addition to those already being paid by the industry, the industry should be given time to adjust supply chains accordingly,” wrote Vanessa Sciarra, vice president for trade and international competitiveness at the American Clean Power Association. “[C]utting off access to affordable inputs before viable domestic or allied alternatives are available risks hurting US manufacturing efforts.” Henry Kelley, president of Blue Wind Technology, a US-based manufacturer of nacelles and other wind energy components, highlighted the dual challenge of protecting domestic industry while not stifling growth. “Wind is among the fastest-growing sectors in US energy security,” Kelley said. “Broad tariffs risk raising costs for manufacturers like Blue Wind without effectively targeting unfair trade practices.” Kelley painted a sobering picture of the current supply chain landscape, stating that “presently, there are no domestic suppliers ready to fully meet demand for many nacelle and turbine components.” He called for a “grace period” to allow US suppliers to scale up production and to prevent policy measures from “unintentionally derail[ing] clean energy progress.” Roger Martella, chief corporate officer and executive vice president of GE Vernova, emphasized the wind equipment manufacturer’s strong domestic footprint, noting that its “US supply chain consists of over 300 manufacturing and services suppliers representing over 50,000 total jobs, of which nearly 36,000 are manufacturing.” Martella also pointed to GE Vernova’s own technological innovations as a way to address cost concerns, stating that its new technology will “reduce manufacturing costs of casted components and provide a drastic financial advantage when compared to including costs of importation logistics and tariffs from China or the European Union.” Comments from the government of the People’s Republic of China, however, presented a starkly different perspective, calling the Section 232 measures a form of “bullying, unilateralism and protectionism under the pretext of national security.” The comments warned that “constraints on parts and components supply and higher turbine costs would discourage new construction and expansion of existing projects and reduce employment opportunities across the wind power sector in the United States.” Furthermore, the Chinese government argued that the US wind industry’s difficulties are rooted in internal structural issues, such as a lack of specialized installation vessels, limited port capacity and transportation pressures associated with larger turbines. “Before these internal structural issues are effectively resolved, attributing the US industry’s difficulties to imports will neither improve the resilience of the US domestic supply chain nor address the deeper challenges that the US wind power industry is facing,” it wrote. Contact Carly Fields at carly.fields@spglobal.com .

Supply chain

Project cargo

Energy projects

US wind sector warns against further increase in import tariffs

<div class="phx-topic abstract-wrapper">COFC Logistics joins a growing list of intermodal providers that see Mexico–US cross-border freight as a major growth engine going forward.</div>

COFC Logistics joins a growing list of intermodal providers that see Mexico–US cross-border freight as a major growth engine going forward.

<div class="phx-topic">COFC Logistics, a partner to hundreds of US intermodal marketing companies (IMCs), is expanding to enter cross-border intermodal service, forging a partnership with BNSF Railway and Grupo México’s Ferromex (GMXT) The Ohio-based company is a wholesaler that provides domestic containers and slots on BNSF trains, often used by IMCs to offer their shippers options to use both western US railroads. The COFC service will offer originations in Monterrey and Silao to seven US destinations in the BNSF network, but the majority of the freight will terminate in Chicago or Dallas. “We are excited to expand the reach and capacity of our industry-leading intermodal network to the IMC community, through these key additions to COFC Logistics’ service offering,” said Jon Gabriel, BNSF’s group vice president of consumer products, in a statement. For shippers that rely on non-asset IMCs, the new BNSF service offers another option for cross-border freight. Rival Union Pacific Railroad has served Mexico for decades, most recently teaming up with GMXT on the <a href="https://www.joc.com/article/service-levels-to-determine-success-in-reshaped-mexico-us-intermodal-market-5192946">Falcon and Eagle Premium services</a>, but diversifying rail partners can help mitigate service disruptions. COFC, which made a similar — but unsuccessful — entry into the Mexico market more than a decade ago, believes this time will be different. “We’ve done our homework and retooled our approach in Mexico, bringing a renewed strategy and sharper execution compared with the past,” Jonathan Mulch, vice president of sales and marketing, told the Journal of Commerce. “This expansion gives us nationwide reach with our domestic product and reestablishes our presence in Mexico, a market that is growing fast but is highly competitive.” Although the long-term potential is strong — shippers moved $74.4 billion worth of freight between the US and Mexico in July, up 5.2% year over year, according to the US Bureau of Transportation Statistics — intermodal volumes on the GMXT have faltered this year. Through the first week of September, the Mexican railroad has hauled 622,151 intermodal loads, down 1.9% year over year, according to the Association of American Railroads (AAR). CPKC offers two cross-border intermodal services, the Mexico Midwest Express to Chicago and the Southeast Mexico Express to Atlanta, but demand is more difficult to gauge because the railroad does not separate Mexican and non-Mexican volumes in the data reported to AAR. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

COFC Logistics, a partner to hundreds of US intermodal marketing companies (IMCs), is expanding to enter cross-border intermodal service, forging a partnership with BNSF Railway and Grupo México’s Ferromex (GMXT) The Ohio-based company is a wholesaler that provides domestic containers and slots on BNSF trains, often used by IMCs to offer their shippers options to use both western US railroads. The COFC service will offer originations in Monterrey and Silao to seven US destinations in the BNSF network, but the majority of the freight will terminate in Chicago or Dallas. “We are excited to expand the reach and capacity of our industry-leading intermodal network to the IMC community, through these key additions to COFC Logistics’ service offering,” said Jon Gabriel, BNSF’s group vice president of consumer products, in a statement. For shippers that rely on non-asset IMCs, the new BNSF service offers another option for cross-border freight. Rival Union Pacific Railroad has served Mexico for decades, most recently teaming up with GMXT on the Falcon and Eagle Premium services , but diversifying rail partners can help mitigate service disruptions. COFC, which made a similar — but unsuccessful — entry into the Mexico market more than a decade ago, believes this time will be different. “We’ve done our homework and retooled our approach in Mexico, bringing a renewed strategy and sharper execution compared with the past,” Jonathan Mulch, vice president of sales and marketing, told the Journal of Commerce. “This expansion gives us nationwide reach with our domestic product and reestablishes our presence in Mexico, a market that is growing fast but is highly competitive.” Although the long-term potential is strong — shippers moved $74.4 billion worth of freight between the US and Mexico in July, up 5.2% year over year, according to the US Bureau of Transportation Statistics — intermodal volumes on the GMXT have faltered this year. Through the first week of September, the Mexican railroad has hauled 622,151 intermodal loads, down 1.9% year over year, according to the Association of American Railroads (AAR). CPKC offers two cross-border intermodal services, the Mexico Midwest Express to Chicago and the Southeast Mexico Express to Atlanta, but demand is more difficult to gauge because the railroad does not separate Mexican and non-Mexican volumes in the data reported to AAR. Contact Ari Ashe at ari.ashe@spglobal.com .

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In today’s competitive logistical landscape, efficiency is an absolute necessity for smooth operations. Yet, in the barge sector, many operators still rely on fragmented systems, delayed updates, and manual tracking methods that slow decision-making and increase operational risk. OpenTug’s new eBook, How Enhanced Visibility Transforms Barge Operations, reveals how unified, real-time data can become your competitive advantage leading to improved voyage management and more actionable insights. Drawing on industry best practices and real-world examples, it explores how operational transparency empowers teams to: ●	Reduce delays with accurate ETAs and proactive scheduling decisions ●	Improve asset utilization by identifying underused equipment and optimizing cargos ●	Strengthen safety and compliance through consistent, accessible documentation and reporting ●	Boost customer satisfaction with transparent status updates and faster response time You’ll learn how visibility can connect every part of your operation into a single, actionable view. The ability to see and act on real-time information transforms the way you plan, execute, and deliver. From managing a small regional fleet to running a large, national operation, this eBook will help you understand the measurable benefits of enhanced visibility and how technology like BargeOS is transforming the way barge logistics is managed. Get your copy today and see how clear insights lead to stronger performance, smarter decisions, and more profitable operations. <a href="https://9315820.fs1.hubspotusercontent-na1.net/hubfs/9315820/eBook/Nav-theFuture-AJW-08.19.25.pdf" rel="noreferrer" class="joc_admin__link">Click here</a><span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1756152344211_Opentug%20logo.png" alt="" class="joc_admin__inline-image-inherit">

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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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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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