<div class="phx-topic abstract-wrapper">After the storms of August &amp;ndash; political, financial and most recently natural &amp;ndash; things may seem to be getting back to normal. It won&amp;rsquo;t last.
 
</div>

After the storms of August &ndash; political, financial and most recently natural &ndash; things may seem to be getting back to normal. It won&rsquo;t last.

<div>After the storms of August &amp;ndash; political, financial and most recently natural &amp;ndash; things may seem to be getting back to normal. It won&amp;rsquo;t last.Come September, and more precisely after Labor Day, the games begin anew and the fate of the economy may hang in the balance.President Obama has already said he will offer a major economic rescue proposal once the end-of-summer Sept. 5 holiday is past and Congress is back. And again this week he signaled it will include transportation infrastructure programs. That focus gained more attention this week as Irene sank hundreds of roads on the East Coast.House...

After the storms of August &ndash; political, financial and most recently natural &ndash; things may seem to be getting back to normal. It won&rsquo;t last. Come September, and more precisely after Labor Day, the games begin anew and the fate of the economy may hang in the balance. President Obama has already said he will offer a major economic rescue proposal once the end-of-summer Sept. 5 holiday is past and Congress is back. And again this week he signaled it will include transportation infrastructure programs. That focus gained more attention this week as Irene sank hundreds of roads on the East Coast. House Majority Leader Eric Cantor took no vacation from warning that his dominant GOP bloc will oppose new White House stimulus efforts, or even disaster funds that are not offset with more austerity elsewhere in the budget. An earthquake in his Virginia district did not shake his resolve. Ben Bernanke said he, too, will wait until deep into the month before unveiling new Federal Reserve monetary support for this fragile recovery. The chairman has his own &lsquo;take no action&rsquo; faction to contend with, and may hope a two-day Fed policy meeting late in September gives him more time to twist arms. It also allows Fed officials to first see what Obama, Cantor and others may do with fiscal policy. From the sidelines, transportation industry officials are quite anxious that Washington policymakers may once again tangle, play chicken and manufacture a deadline crisis before federal funding expires Sept. 30. That could put future transport program spending by states in disarray for months to come, and disrupt thousands of construction projects that need to keep moving in this work season. There are hopeful reports that Republican lawmakers, at least in the Senate, want to avoid another market-shaking political crisis next month, and will help to quickly pass a lot of funding bills. We&rsquo;ll see. But policy experts are far from reassured. They see months ahead of delays and brinksmanship before Congress can settle on either a new long-term surface transportation bill or even a medium-term program. So, enjoy what&rsquo;s left of the vacation period. Or say good riddance to a summer that brought anything but relaxation. Political leaders are crafting economic war games for when the summer is through, and the road ahead could be rough. -- Contact John D. Boyd at jboyd@joc.com . Follow him on Twitter www.twitter.com/jboydjoc

Maritime

Trucking News

Rail News

Transport, Trade and Regulation News

See You in September

<div class="phx-topic abstract-wrapper">The US trucking market is stable, and it’s likely to stay that way until demand increases truck utilization significantly, FTR said at its 2025 transportation conference. </div>

The US trucking market is stable, and it’s likely to stay that way until demand increases truck utilization significantly, FTR said at its 2025 transportation conference.

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<div class="phx-topic">Stubborn US truck overcapacity is not likely to shift before 2027, prolonging shipper pricing power, according to FTR Transportation Intelligence. Excess capacity has become the norm in the truckload sector, Avery Vise, vice president of trucking at FTR, said Tuesday at the 2025 FTR Transportation Conference in Indianapolis. “There’s been a stabilization of the carrier population” after three years of low freight demand, Vise said. Despite some significant motor carrier closures, “we still have this real large overhang of very small carriers that for whatever reason is not exiting the market.” In August, the number of US truck drivers employed at fleets with one to five trucks was 39% higher than in March 2020, according to Federal Motor Carrier Safety Administration (FMCSA) data, Vise told the conference, which the Journal of Commerce attended virtually. That’s down from a 62% gain over March 2020 reported for July 2022, but still a substantial increase in capacity from pre-pandemic levels. The same data shows the number of drivers at carriers with 101 or more trucks down 1.1% in August from March 2020. There’s been a <a href="https://www.joc.com/article/us-truck-capacity-shifting-as-spot-rates-drop-5245829">long-term shift</a> of truck drivers from large carriers to <a href="https://www.joc.com/article/revised-us-payroll-numbers-underscore-truckload-market-shift-5965577">smaller operators</a>, Vise said. Despite predictions that more carriers are likely to be pushed out of the business by low rates, FTR doesn’t expect the number to fall much further, absent an unexpected event or recession. ”We haven’t seen any real tightening in the market since 2024,” he said. “Not until we get to 2027 do we expect active truck utilization to be stronger than now to any significant degree.” Active truck utilization as measured by FTR has hovered between 92% and 94% since 2024. “From a carrier perspective that means a lot more focus on cutting costs and getting much more productivity out of everything,” Vise said. With capacity stable, FTR doesn’t expect the type of rate recovery many trucking companies would like to see. “We do see an increase in rates,” but not a strong one, Vise said. “It’s just going to inch along, falling below the levels of inflation. That may be one of the reason the utilization forecast is so weak.” FTR forecasts a 1.5% annualized gain in dry-van truckload contract rates in 2025, following a 3.1% drop in 2024, and a 1.2% gain in 2026. Spot dry-van rates are expected to rise 1.3% in 2025 and 1.4% in 2026, according to the research firm. <h3>Demand versus supply </h3>A missing demand catalyst, such as increased consumer spending on goods, is needed to tighten capacity, according to FTR. Without higher demand, there may be little room for motor carriers to cut much more capacity. Carriers still have debt and other obligations to meet, Vise noted. The Journal of Commerce Truckload Capacity Index (TCI), which measures truck counts at large, publicly owned carriers, increased for the first time in 11 quarters in the second quarter, rising 1.1 percentage points. That’s a sign some carriers are preparing for higher volumes in late 2025 and 2026. Some speakers at the conference believed cuts in supply, rather than increased demand, would drive a rate recovery for trucking. “I don’t think it’s going to be consumption that pulls us out (of the freight downturn), but it will be capacity,” said Matt Perry, senior vice president of account management at Werner Enterprises. Carriers with 200 or 300 trucks may be more at risk than smaller operators, he said. “There are a lot of companies that are one big accident, one customer loss away from not being able to continue,” Perry said. Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a></div>

Stubborn US truck overcapacity is not likely to shift before 2027, prolonging shipper pricing power, according to FTR Transportation Intelligence. Excess capacity has become the norm in the truckload sector, Avery Vise, vice president of trucking at FTR, said Tuesday at the 2025 FTR Transportation Conference in Indianapolis. “There’s been a stabilization of the carrier population” after three years of low freight demand, Vise said. Despite some significant motor carrier closures, “we still have this real large overhang of very small carriers that for whatever reason is not exiting the market.” In August, the number of US truck drivers employed at fleets with one to five trucks was 39% higher than in March 2020, according to Federal Motor Carrier Safety Administration (FMCSA) data, Vise told the conference, which the Journal of Commerce attended virtually. That’s down from a 62% gain over March 2020 reported for July 2022, but still a substantial increase in capacity from pre-pandemic levels. The same data shows the number of drivers at carriers with 101 or more trucks down 1.1% in August from March 2020. There’s been a long-term shift of truck drivers from large carriers to smaller operators , Vise said. Despite predictions that more carriers are likely to be pushed out of the business by low rates, FTR doesn’t expect the number to fall much further, absent an unexpected event or recession. ”We haven’t seen any real tightening in the market since 2024,” he said. “Not until we get to 2027 do we expect active truck utilization to be stronger than now to any significant degree.” Active truck utilization as measured by FTR has hovered between 92% and 94% since 2024. “From a carrier perspective that means a lot more focus on cutting costs and getting much more productivity out of everything,” Vise said. With capacity stable, FTR doesn’t expect the type of rate recovery many trucking companies would like to see. “We do see an increase in rates,” but not a strong one, Vise said. “It’s just going to inch along, falling below the levels of inflation. That may be one of the reason the utilization forecast is so weak.” FTR forecasts a 1.5% annualized gain in dry-van truckload contract rates in 2025, following a 3.1% drop in 2024, and a 1.2% gain in 2026. Spot dry-van rates are expected to rise 1.3% in 2025 and 1.4% in 2026, according to the research firm. Demand versus supply A missing demand catalyst, such as increased consumer spending on goods, is needed to tighten capacity, according to FTR. Without higher demand, there may be little room for motor carriers to cut much more capacity. Carriers still have debt and other obligations to meet, Vise noted. The Journal of Commerce Truckload Capacity Index (TCI), which measures truck counts at large, publicly owned carriers, increased for the first time in 11 quarters in the second quarter, rising 1.1 percentage points. That’s a sign some carriers are preparing for higher volumes in late 2025 and 2026. Some speakers at the conference believed cuts in supply, rather than increased demand, would drive a rate recovery for trucking. “I don’t think it’s going to be consumption that pulls us out (of the freight downturn), but it will be capacity,” said Matt Perry, senior vice president of account management at Werner Enterprises. Carriers with 200 or 300 trucks may be more at risk than smaller operators, he said. “There are a lot of companies that are one big accident, one customer loss away from not being able to continue,” Perry said. Contact William B. Cassidy at bill.cassidy@spglobal.com

Truckload

Surface

‘Excess’ truck capacity to linger through 2027: FTR

<div class="phx-topic abstract-wrapper">Despite weakening supply-demand fundamentals, container vessel charter rates are rising and carriers are neither idling nor scrapping ships. </div>

Despite weakening supply-demand fundamentals, container vessel charter rates are rising and carriers are neither idling nor scrapping ships.

<div class="phx-topic">An odd disconnect has taken hold in container shipping that defies easy explanation but points to possible tectonic shifts in the global market. Fundamentals are deteriorating, but demand for tonnage remains robust. Carrier profits are rapidly disappearing in the face of dwindling volume growth, falling freight rates and an all-time-high order book that equates to nearly 30% of the existing fleet. However, charter rates and secondhand ship prices are rising, and carriers have not begun idling or scrapping vessels. “The reason is there is still a shortage of tonnage on the high seas,” a senior carrier executive told the Journal of Commerce. The executive, who asked not to be identified, and his peers say the diversification of containerized trade routes, a trend accelerated by US tariffs, is driving strong demand for tonnage, especially the smaller ships that have not seen the same growth as larger vessels. There is a “global restructuring of trade routes” underway, according to Jon Monroe, a veteran carrier, non-vessel-operating common carrier and technology executive who consults for forwarders. “Despite the insane capacity increase from new vessel introductions, carriers are keeping their charter vessels to service new growth markets,” he said. “China is pivoting to Central America, South America, Southeast Asia and of course Africa. And services are moving from direct, to hub-and-spoke networks requiring feeders for transshipments.” Maersk CEO Vincent Clerc made a similar point about China on the company’s Aug. 7 earnings call. “I think the fabric of global trade is changing,” Clerc said. “If you just look at the numbers, what we’ve seen in the last two and a half years is an acceleration of globalization on the back of huge commercial success from Chinese companies that are taking market share on the global stage.” Others point to growing importance of regional trade lanes amid a diversification of sourcing and geopolitical factors, as well as growth in non-US trade lanes, given that imposition of high tariffs in recent months is unique to the US. That has led to greater demand for smaller vessels able to call a greater diversity of ports. <h3>A ‘fully employed’ fleet </h3>One Asia-based ocean carrier source described it as a “structure supply situation,” noting a shortage of ships above 3,000 TEUs, which are in demand on several trades. In smaller vessel segments, fewer ships are becoming available to meet the demand, keeping charter rates elevated. “While spot rates have come under pressure, charter rates and secondhand vessel values remain firm — largely due to extended routing, geopolitical disruptions and the need for flexible tonnage,” said Aditi Rasquinha, CEO Greater China for DHL Global Forwarding. “Larger vessels dominate main trades, intensifying competition, while smaller ships remain in demand for regional and diversionary services. This has delayed scrapping and kept idle fleet levels low.” The idle fleet, currently at just 0.5%, is hovering near all-time lows, according to an Aug. 19 Alphaliner report. “With such minimal idling, the sector is considered ‘fully employed,’” the analyst wrote. At the current pace of scrapping — less than 4,000 TEUs of capacity was scrapped in the first half of 2025 — this year will see the lowest annual total of TEUs sent to the scrapyard in two decades, Alphaliner said. Charter rates, meanwhile, are very strong. The <a href="https://www.harperpetersen.com/container">Harpex container ship charter index</a>, published by Hamburg-based shipbroker Harper Peterson, has nearly tripled since the beginning of 2024. The average price for a five-year-old container ship has increased 17% year over year and 6% since the beginning of 2025, according to BIMCO. Industry fundamentals, however, are headed in the opposite direction. Average global container spot rates have tumbled 60% since August 2024, according to the Drewry World Container Index (WCI). At the same time, carrier profits are plummeting, and analysts say the worst could be yet to come. In the second quarter of 2025, carriers collectively generated net income of $4.4 billion, down from $9.9 billion in the first quarter and $12 billion in the same three-month period last year, according to analyst John McCown. JP Morgan expects carriers to experience “deep losses” beginning next year. “We continue to see an industry that is suffering from material oversupply,” the investment bank wrote in a recent advisory. Some believe there are deeper forces that explain the disconnect between deteriorating industry fundamentals and a fully deployed fleet. Specifically, it is the idea that when carriers look beyond the current cycle, they see market forces working in their favor in the long term. “The industry’s profitability profile has shifted,” said Johnson Leung, partner at Linerlytica and a former financial analyst. “Peak freight rates in the current cycle are much higher than in the previous one, while the troughs remain at similar levels. This dynamic gives liners more hope to bet on the cycle beyond this near-term slump. “And the whole industry is in a net cash position, which puts pressure on the management to deploy capital [because] net cash is not optimal for generating financial returns,” he added. “It makes more sense for them to reinvest in their core business rather than in areas where they have less expertise.” Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

An odd disconnect has taken hold in container shipping that defies easy explanation but points to possible tectonic shifts in the global market. Fundamentals are deteriorating, but demand for tonnage remains robust. Carrier profits are rapidly disappearing in the face of dwindling volume growth, falling freight rates and an all-time-high order book that equates to nearly 30% of the existing fleet. However, charter rates and secondhand ship prices are rising, and carriers have not begun idling or scrapping vessels. “The reason is there is still a shortage of tonnage on the high seas,” a senior carrier executive told the Journal of Commerce. The executive, who asked not to be identified, and his peers say the diversification of containerized trade routes, a trend accelerated by US tariffs, is driving strong demand for tonnage, especially the smaller ships that have not seen the same growth as larger vessels. There is a “global restructuring of trade routes” underway, according to Jon Monroe, a veteran carrier, non-vessel-operating common carrier and technology executive who consults for forwarders. “Despite the insane capacity increase from new vessel introductions, carriers are keeping their charter vessels to service new growth markets,” he said. “China is pivoting to Central America, South America, Southeast Asia and of course Africa. And services are moving from direct, to hub-and-spoke networks requiring feeders for transshipments.” Maersk CEO Vincent Clerc made a similar point about China on the company’s Aug. 7 earnings call. “I think the fabric of global trade is changing,” Clerc said. “If you just look at the numbers, what we’ve seen in the last two and a half years is an acceleration of globalization on the back of huge commercial success from Chinese companies that are taking market share on the global stage.” Others point to growing importance of regional trade lanes amid a diversification of sourcing and geopolitical factors, as well as growth in non-US trade lanes, given that imposition of high tariffs in recent months is unique to the US. That has led to greater demand for smaller vessels able to call a greater diversity of ports. A ‘fully employed’ fleet One Asia-based ocean carrier source described it as a “structure supply situation,” noting a shortage of ships above 3,000 TEUs, which are in demand on several trades. In smaller vessel segments, fewer ships are becoming available to meet the demand, keeping charter rates elevated. “While spot rates have come under pressure, charter rates and secondhand vessel values remain firm — largely due to extended routing, geopolitical disruptions and the need for flexible tonnage,” said Aditi Rasquinha, CEO Greater China for DHL Global Forwarding. “Larger vessels dominate main trades, intensifying competition, while smaller ships remain in demand for regional and diversionary services. This has delayed scrapping and kept idle fleet levels low.” The idle fleet, currently at just 0.5%, is hovering near all-time lows, according to an Aug. 19 Alphaliner report. “With such minimal idling, the sector is considered ‘fully employed,’” the analyst wrote. At the current pace of scrapping — less than 4,000 TEUs of capacity was scrapped in the first half of 2025 — this year will see the lowest annual total of TEUs sent to the scrapyard in two decades, Alphaliner said. Charter rates, meanwhile, are very strong. The Harpex container ship charter index , published by Hamburg-based shipbroker Harper Peterson, has nearly tripled since the beginning of 2024. The average price for a five-year-old container ship has increased 17% year over year and 6% since the beginning of 2025, according to BIMCO. Industry fundamentals, however, are headed in the opposite direction. Average global container spot rates have tumbled 60% since August 2024, according to the Drewry World Container Index (WCI). At the same time, carrier profits are plummeting, and analysts say the worst could be yet to come. In the second quarter of 2025, carriers collectively generated net income of $4.4 billion, down from $9.9 billion in the first quarter and $12 billion in the same three-month period last year, according to analyst John McCown. JP Morgan expects carriers to experience “deep losses” beginning next year. “We continue to see an industry that is suffering from material oversupply,” the investment bank wrote in a recent advisory. Some believe there are deeper forces that explain the disconnect between deteriorating industry fundamentals and a fully deployed fleet. Specifically, it is the idea that when carriers look beyond the current cycle, they see market forces working in their favor in the long term. “The industry’s profitability profile has shifted,” said Johnson Leung, partner at Linerlytica and a former financial analyst. “Peak freight rates in the current cycle are much higher than in the previous one, while the troughs remain at similar levels. This dynamic gives liners more hope to bet on the cycle beyond this near-term slump. “And the whole industry is in a net cash position, which puts pressure on the management to deploy capital [because] net cash is not optimal for generating financial returns,” he added. “It makes more sense for them to reinvest in their core business rather than in areas where they have less expertise.” Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

Container Shipping News

Container lines

Strong secondhand container ship demand defies deteriorating market

<div class="phx-topic abstract-wrapper">Despite freefalling spot rates and lackluster demand expectations for the fourth quarter, carriers have been far more conservative in blanking sailings this year.</div>

Despite freefalling spot rates and lackluster demand expectations for the fourth quarter, carriers have been far more conservative in blanking sailings this year.

<div class="phx-topic">Asia-Europe ocean carriers face a moving target in their attempts to match rising capacity with softening demand due to a slew of new vessels entering the trade lane and ongoing port congestion dragging schedule reliability to dismal levels. Despite reports of full ships from carriers, the frontloading that led to an early peak season on the Asia-Europe trade is expected to curb demand through the last quarter, with blank sailings announcements picking up ahead of China’s National Day Golden Week holiday that begins on Oct. 1. “The Asia-Europe trade lane saw peak season earlier this year, with the usual September surge already past,” C.H. Robinson noted in a September market update. “This shift in timing patterns means that September through December will likely see below-normal shipping volumes compared to historical trends.” The weakening volume will coincide with the delivery of more than 1 million TEUs in capacity that are scheduled to enter service before the end of the year. Importantly, 67% of the new vessels will have a capacity of more than 15,200 TEUs, according to Alphaliner, which means most will necessarily be deployed on the already oversupplied Asia-North Europe and Mediterranean trades. Alan Murphy, CEO of Sea-Intelligence Maritime Analysis, noted in the firm’s Sunday Spotlight newsletter that Asia-North Europe rates are showing structural weakness. “This could imply an increasing overcapacity of ultra-large container vessels, which to a large degree have no other relevant deployment focus than the Asia-Europe trade,” he explained. “As such, this is problematic going forward, as we will see ever more of these vessels delivered.” <h3>Blank sailings below last year’s levels </h3>The carriers, for their part, are managing capacity by blanking sailings, but not at the same level as last year, said Destine Ozuygur, product marketing manager at rate benchmarking platform Xeneta. “We saw blanking announcements from Mediterranean Shipping Co. (MSC) last week and a few more, which we are currently factoring into the database,” she told the Journal of Commerce. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e408891d-d5c3-4aa2-bee2-432e034b0aaa"></dynamic-object></div>MSC announced six blank sailings on Asia-Europe loops for the last two weeks of September, ahead of China’s National Day Golden Week holiday, while Maersk has said it will blank four sailings in late September and early October. Ozuygur said, so far, carriers are scheduled to blank a total of 13 Asia-North Europe sailings in September and 16 in October, far short of the 25 sailings canceled in September and 39 in October last year. “We do expect to see a few more but don’t currently believe it will reach those [prior-year] levels,” she said. That relative lack of blanks has put additional downward pressure on spot rates, which have been in freefall since mid-July, as reflected by the various rate indices — Drewry’s World Container Index, Xeneta, the Shanghai Containerized Freight Index and Platts. Average spot rates from Asia to North Europe fell to $1,700 per FEU as of Monday, down 49.1% from the week of July 18 and 63.5% from the same week last year, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Short-term Asia-Mediterranean pricing of $2,100 per FEU was down 52.3% from its summer peak in the week of June 20 and 54.7% year over year. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7b12031d-6ddc-4ecd-8caa-64db04f5c585"></dynamic-object></div>C.H. Robinson wrote in its September update that there is insufficient cargo demand on Asia-Europe to support any rate hikes, with carriers choosing market share over pushing through increases. That could be a positive for shippers beyond the initial cost savings. “We’re seeing Asia-North Europe spot rates falling at an accelerated pace, while Mediterranean rates are declining more slowly, eliminating the traditional price differential between these destinations,” the forwarder noted. “This convergence means there’s no longer a significant advantage between North European and Mediterranean discharge ports based solely on rates,” C.H. Robinson added. “Greater flexibility in port selection then allows for more strategic supply-chain optimization beyond the cost of the ocean shipping itself.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="aae86b37-a758-4057-a868-4900e5237525"></dynamic-object></div>In tandem with the rate decline is schedule reliability that in August fell to its lowest level in years. Data from eeSea shows on-time performance on Asia-North Europe of just 17% and 16% from Asia to the Mediterranean. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Asia-Europe ocean carriers face a moving target in their attempts to match rising capacity with softening demand due to a slew of new vessels entering the trade lane and ongoing port congestion dragging schedule reliability to dismal levels. Despite reports of full ships from carriers, the frontloading that led to an early peak season on the Asia-Europe trade is expected to curb demand through the last quarter, with blank sailings announcements picking up ahead of China’s National Day Golden Week holiday that begins on Oct. 1. “The Asia-Europe trade lane saw peak season earlier this year, with the usual September surge already past,” C.H. Robinson noted in a September market update. “This shift in timing patterns means that September through December will likely see below-normal shipping volumes compared to historical trends.” The weakening volume will coincide with the delivery of more than 1 million TEUs in capacity that are scheduled to enter service before the end of the year. Importantly, 67% of the new vessels will have a capacity of more than 15,200 TEUs, according to Alphaliner, which means most will necessarily be deployed on the already oversupplied Asia-North Europe and Mediterranean trades. Alan Murphy, CEO of Sea-Intelligence Maritime Analysis, noted in the firm’s Sunday Spotlight newsletter that Asia-North Europe rates are showing structural weakness. “This could imply an increasing overcapacity of ultra-large container vessels, which to a large degree have no other relevant deployment focus than the Asia-Europe trade,” he explained. “As such, this is problematic going forward, as we will see ever more of these vessels delivered.” Blank sailings below last year’s levels The carriers, for their part, are managing capacity by blanking sailings, but not at the same level as last year, said Destine Ozuygur, product marketing manager at rate benchmarking platform Xeneta. “We saw blanking announcements from Mediterranean Shipping Co. (MSC) last week and a few more, which we are currently factoring into the database,” she told the Journal of Commerce. MSC announced six blank sailings on Asia-Europe loops for the last two weeks of September, ahead of China’s National Day Golden Week holiday, while Maersk has said it will blank four sailings in late September and early October. Ozuygur said, so far, carriers are scheduled to blank a total of 13 Asia-North Europe sailings in September and 16 in October, far short of the 25 sailings canceled in September and 39 in October last year. “We do expect to see a few more but don’t currently believe it will reach those [prior-year] levels,” she said. That relative lack of blanks has put additional downward pressure on spot rates, which have been in freefall since mid-July, as reflected by the various rate indices — Drewry’s World Container Index, Xeneta, the Shanghai Containerized Freight Index and Platts. Average spot rates from Asia to North Europe fell to $1,700 per FEU as of Monday, down 49.1% from the week of July 18 and 63.5% from the same week last year, according to Platts, a sister company of the Journal of Commerce within S&P Global. Short-term Asia-Mediterranean pricing of $2,100 per FEU was down 52.3% from its summer peak in the week of June 20 and 54.7% year over year. C.H. Robinson wrote in its September update that there is insufficient cargo demand on Asia-Europe to support any rate hikes, with carriers choosing market share over pushing through increases. That could be a positive for shippers beyond the initial cost savings. “We’re seeing Asia-North Europe spot rates falling at an accelerated pace, while Mediterranean rates are declining more slowly, eliminating the traditional price differential between these destinations,” the forwarder noted. “This convergence means there’s no longer a significant advantage between North European and Mediterranean discharge ports based solely on rates,” C.H. Robinson added. “Greater flexibility in port selection then allows for more strategic supply-chain optimization beyond the cost of the ocean shipping itself.” In tandem with the rate decline is schedule reliability that in August fell to its lowest level in years. Data from eeSea shows on-time performance on Asia-North Europe of just 17% and 16% from Asia to the Mediterranean. Contact Greg Knowler at greg.knowler@spglobal.com .

Forwarding

Asia-Europe

Early peak, new vessels could tip Asia-Europe into overcapacity

<div class="phx-topic abstract-wrapper">Cracks may be appearing in the LTL pricing wall, as shipment levels drop, but LTL costs remain elevated compared with pandemic-era rates.</div>

Cracks may be appearing in the LTL pricing wall, as shipment levels drop, but LTL costs remain elevated compared with pandemic-era rates.

<div class="phx-topic">Daily shipment volumes fell at some of the largest US less-than-truckload (LTL) carriers in August, as soft demand reportedly brought new pressure to bear on rates and challenged the LTL industry’s pricing discipline. Continued market softness could open more opportunities for cost savings as LTL shippers renew contracts with their carriers or at least hold price increases to a minimum. Even so, LTL carriers continue to expand as they seek new customers and additional volume and <a href="https://www.joc.com/article/ltl-carriers-expanding-us-networks-despite-low-freight-demand-6053685">build greater density</a> into their freight networks. And LTL costs <a href="https://www.joc.com/article/us-ltl-rates-still-rising-after-muted-response-to-shipment-reclassification-6063877">remain elevated</a>, even compared with pandemic-era highs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="914cdb2d-10c9-442d-8d38-5fc6e7a45eeb"></dynamic-object></div>Financial updates released last week by Old Dominion Freight Line (ODFL), XPO and Saia gave no indication that freight demand rose in August, a month when S&amp;P Global reported a surge in manufacturing output. The S&amp;P Global Purchasing Managers’ Index for US manufacturing rose from 49.8 in July to 53 in August, signaling expansion and inventory growth. However, daily shipment counts at Saia, the sixth-largest US LTL carrier ranked by revenue, dropped 2.2% year over year in August. Shipments at XPO, the fourth-largest carrier, fell 3.4%. Daily volumes at second-largest-ranked ODFL fell 8.2% in August, reflecting “ongoing softness in the domestic economy,” ODFL said. ABF Freight System, a subsidiary of ArcBest, bucked the trend, increasing its shipment count 5% year over year in August and 1% from July, the company said Monday. <h3>Working the core </h3>Despite continued softness in manufacturing and housing, ABF said it succeeded in adding new core LTL business in August. “The company remains focused on onboarding new business while maintaining consistent reliability,” ArcBest said in a filing with the US Securities and Exchange Commission. Total revenue per hundredweight — a measure of pricing, surcharges and costs often called yield — was flat at ABF in August. ODFL said its revenue per day fell 4.8% from a year earlier in August. However, revenue per hundredweight, excluding fuel surcharges, rose 4.5%. That’s a sign that pricing, excluding surcharges, continued to rise at ODFL. Since the Great Recession ended in 2009, LTL carriers have become known for their pricing “discipline,” and for placing more emphasis on profitability than market share. Some sources say that discipline is showing cracks as lower volume raises the cost of operating LTL networks and hammers trucking companies’ bottom lines. Some LTL carriers are becoming “super aggressive,” said Mike Regan, chief of relationship development at TranzAct Technologies, a freight audit, payment and procurement firm. “I had the CEO of an LTL company tell me, ‘We’re going to price to get our trucks full, then we’ll go back to the (rates) we want,’” Regan said. Other sources, including a major logistics provider, said they are seeing more targeted price cuts in lanes and markets where LTL carriers want freight. Costing models and analytics — technology many LTL providers didn’t have 10 years ago — are helping carriers determine where they can cut without endangering profits and margins. <h3>Adding space, chasing freight </h3>At the same time, LTL companies continue to expand their networks. Ohio-based Midwestern regional LTL provider Dayton Freight Lines on Monday said it is opening a terminal in Bedford, Pa., to provide more direct LTL coverage linking the Midwest with Pennsylvania and Maryland. Dayton partners with A. Duie Pyle in the region, and Pyle has also been expanding in Ohio. The US producer price index (PPI) for long-distance LTL trucking has shown no signs of slowing through July, the last month for which data was available. The PPI, which represents all-inclusive LTL “selling prices” paid by shippers, rose 7.3% year over year in July to 265.4, a reading 2.6% higher than its previous peak in 2022. LTL carriers are still winning increases of 2% to 3% in contract renewals or extensions, according to Satish Jindel, president of research firm SJ Consulting Group. “They’re all looking for more business,” Jindel said. Discounting “would just put pressure on their margins. It would begin to look like 2009 again,” — a time when heavy discounts during a recession led to losses for several LTL carriers. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

Daily shipment volumes fell at some of the largest US less-than-truckload (LTL) carriers in August, as soft demand reportedly brought new pressure to bear on rates and challenged the LTL industry’s pricing discipline. Continued market softness could open more opportunities for cost savings as LTL shippers renew contracts with their carriers or at least hold price increases to a minimum. Even so, LTL carriers continue to expand as they seek new customers and additional volume and build greater density into their freight networks. And LTL costs remain elevated , even compared with pandemic-era highs. Financial updates released last week by Old Dominion Freight Line (ODFL), XPO and Saia gave no indication that freight demand rose in August, a month when S&P Global reported a surge in manufacturing output. The S&P Global Purchasing Managers’ Index for US manufacturing rose from 49.8 in July to 53 in August, signaling expansion and inventory growth. However, daily shipment counts at Saia, the sixth-largest US LTL carrier ranked by revenue, dropped 2.2% year over year in August. Shipments at XPO, the fourth-largest carrier, fell 3.4%. Daily volumes at second-largest-ranked ODFL fell 8.2% in August, reflecting “ongoing softness in the domestic economy,” ODFL said. ABF Freight System, a subsidiary of ArcBest, bucked the trend, increasing its shipment count 5% year over year in August and 1% from July, the company said Monday. Working the core Despite continued softness in manufacturing and housing, ABF said it succeeded in adding new core LTL business in August. “The company remains focused on onboarding new business while maintaining consistent reliability,” ArcBest said in a filing with the US Securities and Exchange Commission. Total revenue per hundredweight — a measure of pricing, surcharges and costs often called yield — was flat at ABF in August. ODFL said its revenue per day fell 4.8% from a year earlier in August. However, revenue per hundredweight, excluding fuel surcharges, rose 4.5%. That’s a sign that pricing, excluding surcharges, continued to rise at ODFL. Since the Great Recession ended in 2009, LTL carriers have become known for their pricing “discipline,” and for placing more emphasis on profitability than market share. Some sources say that discipline is showing cracks as lower volume raises the cost of operating LTL networks and hammers trucking companies’ bottom lines. Some LTL carriers are becoming “super aggressive,” said Mike Regan, chief of relationship development at TranzAct Technologies, a freight audit, payment and procurement firm. “I had the CEO of an LTL company tell me, ‘We’re going to price to get our trucks full, then we’ll go back to the (rates) we want,’” Regan said. Other sources, including a major logistics provider, said they are seeing more targeted price cuts in lanes and markets where LTL carriers want freight. Costing models and analytics — technology many LTL providers didn’t have 10 years ago — are helping carriers determine where they can cut without endangering profits and margins. Adding space, chasing freight At the same time, LTL companies continue to expand their networks. Ohio-based Midwestern regional LTL provider Dayton Freight Lines on Monday said it is opening a terminal in Bedford, Pa., to provide more direct LTL coverage linking the Midwest with Pennsylvania and Maryland. Dayton partners with A. Duie Pyle in the region, and Pyle has also been expanding in Ohio. The US producer price index (PPI) for long-distance LTL trucking has shown no signs of slowing through July, the last month for which data was available. The PPI, which represents all-inclusive LTL “selling prices” paid by shippers, rose 7.3% year over year in July to 265.4, a reading 2.6% higher than its previous peak in 2022. LTL carriers are still winning increases of 2% to 3% in contract renewals or extensions, according to Satish Jindel, president of research firm SJ Consulting Group. “They’re all looking for more business,” Jindel said. Discounting “would just put pressure on their margins. It would begin to look like 2009 again,” — a time when heavy discounts during a recession led to losses for several LTL carriers. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Falling US LTL volumes putting pressure on margins, rates

<div class="phx-topic abstract-wrapper">The Montreal Port Authority said permits are in the works for Contrecoeur’s underwater work, while DP World has signed on to design and operate the terminal.</div>

The Montreal Port Authority said permits are in the works for Contrecoeur’s underwater work, while DP World has signed on to design and operate the terminal.

<div class="phx-topic">DP World plans to develop and operate a C$1.6 billion container terminal outside of Montreal, after the port authority took the first step in securing a development permit for the facility capable of handling post-Panamax vessels.The global terminal operator on Monday said it had signed an agreement with the Montreal Port Authority (MPA) to design Contrecoeur’s surface work, which would be finalized in the coming weeks before developing a plan for long-term operations. DP World operates the Centerm facility at the Port of Vancouver, as well as the container terminals at the ports of Prince Rupert and Saint John.“This agreement marks an important milestone in shaping the Port of Montreal’s future and reinforces Canada’s role as a gateway for global trade,” DP World’s Canadian Chief Executive Douglas Smith said in <a href="https://www.linkedin.com/posts/dougsmithadani_im-proud-to-share-that-dp-world-in-canada-activity-7370841590816329729-ZOtQ?utm_source=share&amp;utm_medium=member_ios&amp;rcm=ACoAAAEaE6wBxuCBA3GF9B8BLvf-lPuv3EJkHFE">a LinkedIn post</a>. The Contrecoeur terminal, to be built on land the MPA acquired three decades ago, would have an annual throughput capacity of 1.15 million TEUs. Thanks to its location further up the St. Lawrence River, Contrecoeur will be able to handle larger ships than the 8,000-TEU vessels that can call at Montreal.The workhorse vessels serving Montreal’s four existing containers terminals, which are operated by Montreal Gateway Terminals Partnership and Termont Montreal, range in capacity from 4,000 to 5,000 TEUs. The port authority is working with federal agencies and river pilots to start trialing the navigation of larger ships on the St. Lawrence River.The MPA said last week it submitted a permitting application to the Canadian federal agency in charge of waterways for below-surface work on the Contrecoeur marine terminal. The MPA said it expects the agency to issue a permit for the work in the coming weeks. DP World said it expects underwater work on Contrecoeur to begin next year, with surface work slated to begin in 2027 and terminal operations to begin by 2030.The application involved 10 studies over two years on the project’s impact to local fish habitats. The MPA said it plans to do extensive underwater and above-ground plantings and other remediation work to minimize the environmental impact of the Contrecoeur project.In planning since the 1980s, the Contrecoeur project faced <a href="https://www.joc.com/article/montreal-relaunches-search-process-for-contrecoeur-terminal-operator-5204826">a delay in 2023</a> after several terminal operators decided not to participate in bidding for the terminal’s concession because of the cost of the underwater work. Originally budgeted at C$1 billion, the project is now expected to cost C$1.5 billion.Since that time, the <a href="https://www.joc.com/article/montreal-port-gets-federal-funds-for-mega-terminal-after-operators-balk-at-risk-5222977">federal</a> and <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">provincial governments</a> have provided more funding to the project. Advancing the Contrecoeur project has become more of a priority for Canada as the country <a href="https://www.joc.com/article/carney-has-fresh-opportunity-to-galvanize-canadian-shipping-industry-6047928">looks to lessen its reliance on trade with the US</a>. In a visit to Montreal last month, Prime Minister Mark Carney said the Contrecouer project could benefit from newly passed legislation streamlining environmental rules and other regulations to speed the construction of infrastructure projects of national importance.Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

DP World plans to develop and operate a C$1.6 billion container terminal outside of Montreal, after the port authority took the first step in securing a development permit for the facility capable of handling post-Panamax vessels. The global terminal operator on Monday said it had signed an agreement with the Montreal Port Authority (MPA) to design Contrecoeur’s surface work, which would be finalized in the coming weeks before developing a plan for long-term operations. DP World operates the Centerm facility at the Port of Vancouver, as well as the container terminals at the ports of Prince Rupert and Saint John. “This agreement marks an important milestone in shaping the Port of Montreal’s future and reinforces Canada’s role as a gateway for global trade,” DP World’s Canadian Chief Executive Douglas Smith said in a LinkedIn post . The Contrecoeur terminal, to be built on land the MPA acquired three decades ago, would have an annual throughput capacity of 1.15 million TEUs. Thanks to its location further up the St. Lawrence River, Contrecoeur will be able to handle larger ships than the 8,000-TEU vessels that can call at Montreal. The workhorse vessels serving Montreal’s four existing containers terminals, which are operated by Montreal Gateway Terminals Partnership and Termont Montreal, range in capacity from 4,000 to 5,000 TEUs. The port authority is working with federal agencies and river pilots to start trialing the navigation of larger ships on the St. Lawrence River. The MPA said last week it submitted a permitting application to the Canadian federal agency in charge of waterways for below-surface work on the Contrecoeur marine terminal. The MPA said it expects the agency to issue a permit for the work in the coming weeks. DP World said it expects underwater work on Contrecoeur to begin next year, with surface work slated to begin in 2027 and terminal operations to begin by 2030. The application involved 10 studies over two years on the project’s impact to local fish habitats. The MPA said it plans to do extensive underwater and above-ground plantings and other remediation work to minimize the environmental impact of the Contrecoeur project. In planning since the 1980s, the Contrecoeur project faced a delay in 2023 after several terminal operators decided not to participate in bidding for the terminal’s concession because of the cost of the underwater work. Originally budgeted at C$1 billion, the project is now expected to cost C$1.5 billion. Since that time, the federal and provincial governments have provided more funding to the project. Advancing the Contrecoeur project has become more of a priority for Canada as the country looks to lessen its reliance on trade with the US . In a visit to Montreal last month, Prime Minister Mark Carney said the Contrecouer project could benefit from newly passed legislation streamlining environmental rules and other regulations to speed the construction of infrastructure projects of national importance. Contact Michael Angell at michael.angell@spglobal.com

North American ports

DP World to build big-ship container terminal in Montreal

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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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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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A must-attend conference for shippers & logistics providers moving goods inland

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Attend Inland25

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

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Journal of Commerce Magazine

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

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Intermodal Savings Index

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

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

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Gateway

Customers scoring their intermodal partners to identify the best service providers

Latest News

More News & Analysis

‘Excess’ truck capacity to linger through 2027: FTR

Strong secondhand container ship demand defies deteriorating market

Early peak, new vessels could tip Asia-Europe into overcapacity