<div class="phx-topic abstract-wrapper">Hapag-Lloyd has joined other major carriers in shrugging off flat volumes to ride high rates across congested ocean trade lanes to a record annual operating profit. </div>

Hapag-Lloyd has joined other major carriers in shrugging off flat volumes to ride high rates across congested ocean trade lanes to a record annual operating profit.

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<div>Hapag-Lloyd reported what it called an “extraordinary” operating result Tuesday, with average rate levels through 2021 rising 80 percent year over year to offset flat volumes and almost double the carrier’s annual revenue. While profit and loss figures will be provided when Hapag-Lloyd publishes its annual report on March 10, a record net result is guaranteed. The carrier has already told investors to <a>expect a four-fold gain in operating profit for 2021</a> compared with the previous year, forecasting $12 billion to $13 billion. Revenue in 2021 reached $26.4 billion, built on average rate levels of $2,003 per TEU that added...

Hapag-Lloyd reported what it called an “extraordinary” operating result Tuesday, with average rate levels through 2021 rising 80 percent year over year to offset flat volumes and almost double the carrier’s annual revenue. While profit and loss figures will be provided when Hapag-Lloyd publishes its annual report on March 10, a record net result is guaranteed. The carrier has already told investors to expect a four-fold gain in operating profit for 2021 compared with the previous year, forecasting $12 billion to $13 billion. Revenue in 2021 reached $26.4 billion, built on average rate levels of $2,003 per TEU that added $11.8 billion to the revenue achieved in 2020. Hapag-Lloyd's other main earnings metrics for 2021 were also deep in the black. Earnings before interest, taxes, depreciation, and amortization (EBITDA) were up more than four times compared with 2020 at $12.8 billion, while EBIT at $11.1 billion was 7.4 times above that achieved in 2020. Click to enlarge . The soaring rate levels allowed Hapag-Lloyd to grow its earnings despite volume that was flat year over year at 11.9 million TEU. “The main drivers of these positive business developments have been significantly improved freight rates resulting from very strong demand for goods exported from Asia,” Hapag-Lloyd said in a statement. “At the same time, the major disruptions in global supply chains have led to a significant increase in transport expenses.” Congestion cuts capacity, raises rates Flat or declining volumes, coupled with rising rates, have been a constant in the container shipping sector for the last two years, caused by port congestion and inland logistics bottlenecks in Asia, North Europe, and particularly in the US. The congestion has delayed vessels and destroyed schedule reliability, with ships missing berthing windows, blanking sailings, or omitting ports to shorten rotations. That has effectively limited capacity, which has cut volumes on the major trades and pushed rates higher. Short-term rates of 90 days or less from Asia to the US West Coast rose 105 percent through 2021 to end the year at $8,738 per FEU, while long-term contract rates of three months and above rose 80 percent to $5,620 per FEU, according to rate benchmarking platform Xeneta. Asia to North Europe short-term rates doubled through 2021 to reach $8,219 per TEU on Dec. 31, while long-term rates of three months and above tripled to $5,001 per TEU. On the trans-Atlantic westbound trade, short-term rates through 2021 rose 224 percent to end the year on $5,278 per TEU, while long-term contract rates almost doubled to $4,817 per TEU. The port and inland logistics woes in key markets, especially the US, were highlighted by Ocean Network Express (ONE) this week when the carrier announced its fiscal half-year results. Despite posting a record six-month net profit of $6.7 billion , ONE said there would be little improvement in the port and inland logistics problems this calendar year and has forecast annual net profit for its fiscal year ending March 31 of $11.7 billion — almost three times that of the previous year. Maersk on Jan. 14 added $1 billion to its anticipated 2021 operating profit that it now expects to be as high as $24 billion. Cosco Shipping Holdings, state-owned parent of Cosco Shipping and OOCL, expects to report an annual net profit for 2021 of $14.2 billion, eight times higher than in 2020. Contact Greg Knowler at greg.knowler@ihsmarkit.com and follow him on Twitter: @greg_knowler .

Maritime

Soaring rates, congestion drive Hapag-Lloyd to ‘extraordinary’ 2021 result

<div class="phx-topic abstract-wrapper">The role of the Southeast Asian powerhouse in global trade is accelerating, fueled by geographic advantages, a skilled workforce and consistent inflows of foreign investment, says DHL Express.</div>

The role of the Southeast Asian powerhouse in global trade is accelerating, fueled by geographic advantages, a skilled workforce and consistent inflows of foreign investment, says DHL Express.

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<div class="phx-topic">Vietnam’s rapidly expanding technology export sector continues to provide lift for the air freight industry connecting the manufacturing hub with key markets in North America, Europe, the Middle East and Africa. DHL Express is the latest carrier <a href="https://www.joc.com/article/vietnam-air-cargo-exports-jump-on-weaker-china-demand-6072907">to inject capacity into the market</a>, adding more than 300 tons of weekly air cargo capacity to its existing flight schedules out of Hanoi to handle the increasing demand. "Vietnam's role in global trade is accelerating, fueled by geographic advantages, a skilled workforce and consistent inflows of foreign investment," said Peter Bardens, senior vice president for network operations and aviation in Asia-Pacific at DHL Express. "(Vietnam) has risen as a tech manufacturing powerhouse in recent years, especially in the northern region where Hanoi is seeing a boom in high-tech exports,” Bardens said in a statement Wednesday, adding that DHL Express saw a double-digit increase in tech-related shipments from Hanoi in the first half of the year. Air cargo capacity on Vietnam-to-North America routes last week was up 95% year over year at 2,400 tons, according to air freight analyst Rotate, while Vietnam-Europe capacity rose 39% to 4,800 tons. While the gains are from a relatively low base, the strong growth is attracting airlines. Rotate looked at the carriers best positioned to serve the market, with local carrier Vietnam Airlines unsurprisingly offering the most capacity out of the Southeast Asian powerhouse at 85,000 tons. Close behind was Korean Air, which in August signed a memorandum of understanding with Vietnam Airlines that includes expanding cooperation in air cargo and developing air freight corridors between Vietnam and South Korea. <h3>High-tech hub </h3>As companies continue to diversify their supply chains, Vietnam has emerged as a preferred manufacturing hub, particularly for high-tech products such as laptops and electronics. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7084d51e-36f3-40cb-9601-c4d4c11caed3"></dynamic-object></div>The country's Ministry of Information and Communications forecasts that the information and communication technology (ICT) industry will achieve $169.3 billion in total revenue in 2025, an 11.4% year-over-year increase. Hardware and electronics exports are expected to grow 12.3% to $148.5 billion. The DHL Trade Atlas 2025 has identified Vietnam among the top 30 countries globally for both the speed and scale of trade growth in the next five years. Vietnam is also one of the top 20 high-growth markets identified by DHL Group, benefiting from strong geographic tailwinds and its strategic location in Southeast Asia. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Vietnam’s rapidly expanding technology export sector continues to provide lift for the air freight industry connecting the manufacturing hub with key markets in North America, Europe, the Middle East and Africa. DHL Express is the latest carrier to inject capacity into the market , adding more than 300 tons of weekly air cargo capacity to its existing flight schedules out of Hanoi to handle the increasing demand. "Vietnam's role in global trade is accelerating, fueled by geographic advantages, a skilled workforce and consistent inflows of foreign investment," said Peter Bardens, senior vice president for network operations and aviation in Asia-Pacific at DHL Express. "(Vietnam) has risen as a tech manufacturing powerhouse in recent years, especially in the northern region where Hanoi is seeing a boom in high-tech exports,” Bardens said in a statement Wednesday, adding that DHL Express saw a double-digit increase in tech-related shipments from Hanoi in the first half of the year. Air cargo capacity on Vietnam-to-North America routes last week was up 95% year over year at 2,400 tons, according to air freight analyst Rotate, while Vietnam-Europe capacity rose 39% to 4,800 tons. While the gains are from a relatively low base, the strong growth is attracting airlines. Rotate looked at the carriers best positioned to serve the market, with local carrier Vietnam Airlines unsurprisingly offering the most capacity out of the Southeast Asian powerhouse at 85,000 tons. Close behind was Korean Air, which in August signed a memorandum of understanding with Vietnam Airlines that includes expanding cooperation in air cargo and developing air freight corridors between Vietnam and South Korea. High-tech hub As companies continue to diversify their supply chains, Vietnam has emerged as a preferred manufacturing hub, particularly for high-tech products such as laptops and electronics. The country's Ministry of Information and Communications forecasts that the information and communication technology (ICT) industry will achieve $169.3 billion in total revenue in 2025, an 11.4% year-over-year increase. Hardware and electronics exports are expected to grow 12.3% to $148.5 billion. The DHL Trade Atlas 2025 has identified Vietnam among the top 30 countries globally for both the speed and scale of trade growth in the next five years. Vietnam is also one of the top 20 high-growth markets identified by DHL Group, benefiting from strong geographic tailwinds and its strategic location in Southeast Asia. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Forwarder News

Air Cargo Carriers News

Air Cargo

Vietnam tech exports driving air freight capacity injection

<div class="phx-topic abstract-wrapper">The rise of code generation tools portends a future where even non-technical people can build software, potentially threatening the hold incumbent software-as-a-service providers have on logistics customers. </div>

The rise of code generation tools portends a future where even non-technical people can build software, potentially threatening the hold incumbent software-as-a-service providers have on logistics customers.

<div class="phx-topic">A theory in technology circles began to bubble up earlier this year as the use of artificial intelligence-based coding tools started to take hold in virtually every corner of the software world: Will these tools kill the software-as-a-service (SaaS) market? Code generation tools like Cursor, Windsurf, Claude, Devin, base44 and Lovable are already <a href="https://www.joc.com/article/code-generation-tools-altering-efficiency-capacity-for-logistics-technology-providers-6052945">transforming the experience for software developers</a>, allowing them to build products more quickly and add programming capacity to their teams without hiring expensive developers. To be clear, the key benefit of these tools remains the augmentation of coding capacity, with logistics software executives telling the Journal of Commerce that they currently add anywhere from 20% to 100% more capacity to their teams. But technology experts have also wondered if these coding tools might render existing software somewhat redundant. In such a scenario, a programmer at a company that uses a piece of software could essentially build a new feature on top of that existing software, or, at an extreme level, could theoretically build an entire product to replace that software. Where this gets really interesting is if code generation software becomes powerful enough that non-technical people could build features or entire systems for themselves, merely through prompts. That activity, often referred to as “vibe coding,” can essentially be described as coding with English through a program that turns prompts into code. Think of an operations employee at a shipper prompting a code generation tool to create an application that builds a carrier scorecard by pulling information from its transportation management system (TMS), its visibility provider, its freight brokers and receiving facilities. Or, more significantly, think of a shipper having the ability to just create its own TMS through a series of prompts. “Lovable just released ‘agent mode’ and I think it could build a TMS that rivals existing systems that freight brokers use,” Gabe Pankonin, CEO at less-than-truckload broker Rocket Shipping, wrote in a July post on X. “The age of SaaS TMS platforms is coming to an end way quicker than I thought.” <h3>New dimension to ‘build versus buy’ </h3>Pankonin told the Journal of Commerce he expects a lot of companies in freight technology to be disrupted from customer-building features to developing their own AI agents. “The SaaS message has always been ‘use our platform, and you don’t have to build it yourself,’” he said. “In the next three years, it’s going to be easier to build it yourself than implement someone else’s technology. With Lovable and base44, if you know how to prompt, you’re a designer, and then you can do some real damage. I tell it what I want, but I don’t have to code it.” The idea of using natural language to build software might sound appealing to companies for a number of reasons. For one, the product would be tailored specifically to the needs of the company building it, reshaping the age-old build-versus-buy dilemma. For companies that invest in their ability to build tools for themselves, the speed of development could also be an advantage. But it’s not so simple, of course. The reality is that large companies – whether shippers, logistics companies or carriers – tend to rely on established enterprise software for a reason. It’s stable, it’s continually maintained and generally effective. “Coding with English allows people to build basic unsophisticated systems or working prototypes,” WiseTech Global CEO Zubin Appoo, told the Journal of Commerce. “They’re not yet able to build anything with production strength. Our [intellectual property] is our deep domain expertise, understanding how players connect to each other and what the industry needs. And the connectivity that we bring across everybody. “The interface with government authorities, denied party lists, with entities from manufacturing to demand, that’s not something that AI can or will ever be able to do,” he added. <h3>Differing viewpoints </h3>There is a variety of views on whether coding tools will ever have that capability, or whether they will be a part of the arsenal of software vendors rather than an existential threat to them. “I would agree there’s vulnerability,” said Jake Hoffman, chief technology officer at Gnosis Freight, which provides container management software for shippers. “Understanding the nuance for each customer is the way we approach it. The demand from customers will get higher and they will either build this all themselves or seek a partner using these tools.” Hoffman said that SaaS providers can use the tools on offer to “scale the nuances,” instead of viewing the need to cater to individual preferences from customers as a cost burden. Aaron Levie, CEO of content management software vendor Box, said in an August post on X that in “workflows where the cost of getting something wrong is high, enterprises will have a tendency to pick core platforms for their most common, important and repeatable functions.” <h3>Micro apps </h3>But Levie said “there will also be a long tail of experiences where users can generate micro apps on the fly when they need quick applications or use cases automated, when there’s no obvious piece of software to do that with.” In general, Levie said that code generation tools will be used to build software in what he described as a “personal context” that only affects a single user or small team and not an entire enterprise. “But I would have different expectations in an enterprise context,” he wrote. “The point of much of the software that we use in the enterprise is largely to just keep our processes on track and moving forward reliably. For any of these workflows and data sets, you need a high degree of stable patterns that you know will work every single time. You’re relying on the software vendor to think about the underlying process, so you don’t have to keep the software up to date with new regulations or industry trends.” Contact Eric Johnson at eric.johnson@spglobal.com. </div>

A theory in technology circles began to bubble up earlier this year as the use of artificial intelligence-based coding tools started to take hold in virtually every corner of the software world: Will these tools kill the software-as-a-service (SaaS) market? Code generation tools like Cursor, Windsurf, Claude, Devin, base44 and Lovable are already transforming the experience for software developers , allowing them to build products more quickly and add programming capacity to their teams without hiring expensive developers. To be clear, the key benefit of these tools remains the augmentation of coding capacity, with logistics software executives telling the Journal of Commerce that they currently add anywhere from 20% to 100% more capacity to their teams. But technology experts have also wondered if these coding tools might render existing software somewhat redundant. In such a scenario, a programmer at a company that uses a piece of software could essentially build a new feature on top of that existing software, or, at an extreme level, could theoretically build an entire product to replace that software. Where this gets really interesting is if code generation software becomes powerful enough that non-technical people could build features or entire systems for themselves, merely through prompts. That activity, often referred to as “vibe coding,” can essentially be described as coding with English through a program that turns prompts into code. Think of an operations employee at a shipper prompting a code generation tool to create an application that builds a carrier scorecard by pulling information from its transportation management system (TMS), its visibility provider, its freight brokers and receiving facilities. Or, more significantly, think of a shipper having the ability to just create its own TMS through a series of prompts. “Lovable just released ‘agent mode’ and I think it could build a TMS that rivals existing systems that freight brokers use,” Gabe Pankonin, CEO at less-than-truckload broker Rocket Shipping, wrote in a July post on X. “The age of SaaS TMS platforms is coming to an end way quicker than I thought.” New dimension to ‘build versus buy’ Pankonin told the Journal of Commerce he expects a lot of companies in freight technology to be disrupted from customer-building features to developing their own AI agents. “The SaaS message has always been ‘use our platform, and you don’t have to build it yourself,’” he said. “In the next three years, it’s going to be easier to build it yourself than implement someone else’s technology. With Lovable and base44, if you know how to prompt, you’re a designer, and then you can do some real damage. I tell it what I want, but I don’t have to code it.” The idea of using natural language to build software might sound appealing to companies for a number of reasons. For one, the product would be tailored specifically to the needs of the company building it, reshaping the age-old build-versus-buy dilemma. For companies that invest in their ability to build tools for themselves, the speed of development could also be an advantage. But it’s not so simple, of course. The reality is that large companies – whether shippers, logistics companies or carriers – tend to rely on established enterprise software for a reason. It’s stable, it’s continually maintained and generally effective. “Coding with English allows people to build basic unsophisticated systems or working prototypes,” WiseTech Global CEO Zubin Appoo, told the Journal of Commerce. “They’re not yet able to build anything with production strength. Our [intellectual property] is our deep domain expertise, understanding how players connect to each other and what the industry needs. And the connectivity that we bring across everybody. “The interface with government authorities, denied party lists, with entities from manufacturing to demand, that’s not something that AI can or will ever be able to do,” he added. Differing viewpoints There is a variety of views on whether coding tools will ever have that capability, or whether they will be a part of the arsenal of software vendors rather than an existential threat to them. “I would agree there’s vulnerability,” said Jake Hoffman, chief technology officer at Gnosis Freight, which provides container management software for shippers. “Understanding the nuance for each customer is the way we approach it. The demand from customers will get higher and they will either build this all themselves or seek a partner using these tools.” Hoffman said that SaaS providers can use the tools on offer to “scale the nuances,” instead of viewing the need to cater to individual preferences from customers as a cost burden. Aaron Levie, CEO of content management software vendor Box, said in an August post on X that in “workflows where the cost of getting something wrong is high, enterprises will have a tendency to pick core platforms for their most common, important and repeatable functions.” Micro apps But Levie said “there will also be a long tail of experiences where users can generate micro apps on the fly when they need quick applications or use cases automated, when there’s no obvious piece of software to do that with.” In general, Levie said that code generation tools will be used to build software in what he described as a “personal context” that only affects a single user or small team and not an entire enterprise. “But I would have different expectations in an enterprise context,” he wrote. “The point of much of the software that we use in the enterprise is largely to just keep our processes on track and moving forward reliably. For any of these workflows and data sets, you need a high degree of stable patterns that you know will work every single time. You’re relying on the software vendor to think about the underlying process, so you don’t have to keep the software up to date with new regulations or industry trends.” Contact Eric Johnson at eric.johnson@spglobal.com.

Logistics Technology News

Logistics technology executives differ on coding threat to incumbent products

<div class="phx-topic abstract-wrapper">The slow drive to bring more maritime equipment manufacturing to the US has received a small boost with a crane order from MSC’s terminal division that will include US-made components. </div>

The slow drive to bring more maritime equipment manufacturing to the US has received a small boost with a crane order from MSC’s terminal division that will include US-made components.

<div class="phx-topic">Mediterranean Shipping Co.’s terminal division is throwing its support to the US’ bid to reshore maritime equipment manufacturing away from China with an order for new ship-to-shore cranes using American-made parts. Crane manufacturer Paceco has announced that a supply deal with Total Terminals International at the Port of Long Beach for two new ship-to-shore cranes “will include key American-made components supplied by US companies.” Total Terminals, the largest container facility at Long Beach, is operated by MSC’s Terminal Investment Limited (TiL). The two cranes, capable of handling ultra-large containerships, are expected to enter service in 2027, Paceco said in a statement. It did not detail what parts of the cranes would be made in the US. While the new cranes will be built in Japan, the inclusion of US components in the cranes shows “that there are reliable alternatives that both meet the needs of US ports and support broader national security and supply chain resilience goals,” Troy Collard, Paceco’s general manager of sales, said in the statement, issued last week.Paceco, a subsidiary of Japanese conglomerate Mitsui E&amp;S, was named by the Biden administration as one of the beneficiaries from <a href="https://www.joc.com/article/white-house-counters-risk-of-chinese-port-cranes-with-20-billion-for-us-sourcing-5200230">approximately $20 billion in grants</a> made available under the 2021 Infrastructure Act that aimed to foster domestic manufacturing of ship-to-shore cranes. The grants were in response to concerns over <a href="https://www.joc.com/article/zpmc-pressures-us-ports-for-remote-crane-access-house-report-5726693">Chinese manufacturer ZPMC’s dominance of the crane market</a>. The Trump administration has not outlined further direct incentives for domestic crane manufacturers, but <a href="https://www.joc.com/article/looming-us-tariffs-put-economic-viability-of-sts-cranes-in-doubt-6055678">the US Trade Representative has proposed a 100% tariff on Chinese-made cranes and components</a>. Until that tariff becomes official, Chinese cranes are still subject to the 30% reciprocal tariffs the Trump administration has slapped on China. The new Long Beach cranes, though, will be subject to the 15% tariffs the Trump administration has issued for imports from Japan. Ports across the US are grappling with the higher costs of ship-to-shore cranes. The South Carolina Ports Authority had originally budgeted $25 million for new cranes from ZPMC. In light of the Trump administration’s tariff actions, the port revised its budget for non-Chinese cranes that would cost $34 million instead. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Mediterranean Shipping Co.’s terminal division is throwing its support to the US’ bid to reshore maritime equipment manufacturing away from China with an order for new ship-to-shore cranes using American-made parts. Crane manufacturer Paceco has announced that a supply deal with Total Terminals International at the Port of Long Beach for two new ship-to-shore cranes “will include key American-made components supplied by US companies.” Total Terminals, the largest container facility at Long Beach, is operated by MSC’s Terminal Investment Limited (TiL). The two cranes, capable of handling ultra-large containerships, are expected to enter service in 2027, Paceco said in a statement. It did not detail what parts of the cranes would be made in the US. While the new cranes will be built in Japan, the inclusion of US components in the cranes shows “that there are reliable alternatives that both meet the needs of US ports and support broader national security and supply chain resilience goals,” Troy Collard, Paceco’s general manager of sales, said in the statement, issued last week. Paceco, a subsidiary of Japanese conglomerate Mitsui E&S, was named by the Biden administration as one of the beneficiaries from approximately $20 billion in grants made available under the 2021 Infrastructure Act that aimed to foster domestic manufacturing of ship-to-shore cranes. The grants were in response to concerns over Chinese manufacturer ZPMC’s dominance of the crane market . The Trump administration has not outlined further direct incentives for domestic crane manufacturers, but the US Trade Representative has proposed a 100% tariff on Chinese-made cranes and components . Until that tariff becomes official, Chinese cranes are still subject to the 30% reciprocal tariffs the Trump administration has slapped on China. The new Long Beach cranes, though, will be subject to the 15% tariffs the Trump administration has issued for imports from Japan. Ports across the US are grappling with the higher costs of ship-to-shore cranes. The South Carolina Ports Authority had originally budgeted $25 million for new cranes from ZPMC. In light of the Trump administration’s tariff actions, the port revised its budget for non-Chinese cranes that would cost $34 million instead. Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Marine terminals

North American ports

New ship-to-shore cranes with US parts coming to Long Beach

<div class="phx-topic abstract-wrapper">The proposed creation of a transcontinental railroad could allow West Coast ports to better compete for Asia cargo destined for markers east of Chicago, writes Executive Editor Mark Szakonyi. </div>

The proposed creation of a transcontinental railroad could allow West Coast ports to better compete for Asia cargo destined for markers east of Chicago, writes Executive Editor Mark Szakonyi.

<div class="phx-topic">The planned transcontinental merger of two major US railroads may incentivize more US West Coast routings and increase competition with the Port of Vancouver for Midwest markets. That would come after West Coast ports over the past decade have lost share to East and Gulf coast gateways and to ports in Western Canada. The efficiencies gained by merging Union Pacific Railroad (UP) and Norfolk Southern Railway (NS) would make cross-country shipments from the West Coast to markets east of Chicago more cost feasible. The merger, if approved by federal rail regulators, would also allow the combined entity to directly serve markets in Detroit and Indiana, regions now served from the West Coast via Canadian National Railway (CN’s) connection to Vancouver. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6085077_0.1.jpg"></img></div>A single transcontinental operator could open so-called watershed markets primarily within the Ohio Valley and the eastern region straddling the Mississippi River, thanks to more efficient operations in Chicago and other Midwest hubs and no need for interchanges, said Vann Cunningham, a former associate vice president of economic development at BNSF Railway. The merging of the two networks, including the IT systems underpinning both, would eliminate interchange moves that normally take 24 to 48 hours, cutting operating costs and offering shippers a faster option than the all-water route via the Panama Canal to East Coast ports, Cunningham told the Journal of Commerce. The merger would give the Port of Los Angeles “access to the most populous third of the nation that has been otherwise stitched together through hands-offs,” Gene Seroka, executive director of the busiest US container port as measured by volume, <a href="https://www.ajot.com/insights/full/ai-port-of-los-angeles-sees-up-ns-merger-as-seamless-transit-to-east-coast">told the American Journal of Transportation in August</a>. A merger could drive more volume through the Alameda Corridor, and the impact on single-line operations and pricing are being analyzed, said Michael Leue, CEO of the Alameda Corridor Transportation Authority. But Leue cautioned that the authority would work to ensure that any cross-country networks don’t take the focus away from trying to convert more truckload freight to rail volumes in the West. “The eastern carriers have successfully grown their [inland point intermodal] share by developing logistics centers and short-haul markets,” he said. <h3>West Coast halts shift of discretionary cargo </h3>The US West Coast in the last two years has stemmed the bleed of discretionary cargo that had shifted to all-water routing through the Panama Canal to the East and Gulf coasts. That is largely due to the labor threats that hobbled East and Gulf coast ports in late 2024, as well as US importers rushing to get Asian imports into the country earlier this year before various tariff deadlines. In the first eight months of 2024 and 2025, approximately 59% of laden US imports from Asia came in through the US West Coast, compared with 56% during the same period in 2023, which was the lowest share in the last decade, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. In 2015, nearly 65% of laden US imports came through the US West Coast. The extent to which US West Coast ports gain greater traction in watershed markets hinges not just on how UP and NS can merge their disparate networks, IT systems and operating cultures, but also rail flow at their terminals. West Coast ports in the last two years have been able to handle peak season volumes better than in previous years, thanks to increased cooperation among stakeholders, better forecasting of demand and infrastructure improvements. Those gains can easily slip if Western railroads’ prioritization on network efficiency doesn’t allow them to provide more railcars, putting upstream congestion pressure on the marine terminals. A merged entity able to reach a Midwest market via the US West Coast may also force CN and Vancouver to become more competitive, although there’s no guarantee that a merged UP-NS would target such international intermodal business. <h3>The case against a West Coast windfall </h3>Rail analyst Paul Tonsager is skeptical that a merged entity will move the needle for West Coast ports, arguing that a transcontinental line may actually encourage more routing through the East Coast. Deals could be cut between medium-sized East Coast ports and carriers to incentivize routings, he said. Ultimately, ocean carriers are more focused on rail price rather than services, and the low margins from international rail business pale in comparison with higher-paying chemical and other bulk business, disincentivizing bold intermodal moves and investments, said Tonsager, a former executive at CN and Maersk. The impact of a transcontinental line would take years to realize, given that rail analysts say a unified provider wouldn’t be humming until three years into the merger. Rail contracts with container lines are multiyear, and there’s no guarantee that a merged entity would want to pass newly achieved operating savings to customers. The cost to move an ocean container cross-country via rail is more than $2,000 compared with $600 to $700 to truck a container from an East Coast port into the Ohio Valley area, according to estimates from various sources. Factoring in the fact that ocean container rates are approximately $1,000 more for East Coast routings than for West Coast routings, a merged railroad would have to realize more operational savings, and, importantly, be willing to pass it to ocean carriers and their customers. In the meantime, the other Class I railroads have rushed to launch jointly-operated services to better compete with a merged UP-NS. While such arrangements can attract more cargo, they can’t deliver the interchange efficiency of a single transcontinental operator, and eventually, the balance of benefits to both railroad partners favors one network over the other, several rail analysts told the Journal of Commerce. Grinding operating efficiencies out of a single transcontinental line is ultimately more beneficial, but that’s just one factor in the equation favoring West Coast routings. Contact Mark Szakonyi at <a href="https://www.joc.com/article/mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

The planned transcontinental merger of two major US railroads may incentivize more US West Coast routings and increase competition with the Port of Vancouver for Midwest markets. That would come after West Coast ports over the past decade have lost share to East and Gulf coast gateways and to ports in Western Canada. The efficiencies gained by merging Union Pacific Railroad (UP) and Norfolk Southern Railway (NS) would make cross-country shipments from the West Coast to markets east of Chicago more cost feasible. The merger, if approved by federal rail regulators, would also allow the combined entity to directly serve markets in Detroit and Indiana, regions now served from the West Coast via Canadian National Railway (CN’s) connection to Vancouver. A single transcontinental operator could open so-called watershed markets primarily within the Ohio Valley and the eastern region straddling the Mississippi River, thanks to more efficient operations in Chicago and other Midwest hubs and no need for interchanges, said Vann Cunningham, a former associate vice president of economic development at BNSF Railway. The merging of the two networks, including the IT systems underpinning both, would eliminate interchange moves that normally take 24 to 48 hours, cutting operating costs and offering shippers a faster option than the all-water route via the Panama Canal to East Coast ports, Cunningham told the Journal of Commerce. The merger would give the Port of Los Angeles “access to the most populous third of the nation that has been otherwise stitched together through hands-offs,” Gene Seroka, executive director of the busiest US container port as measured by volume, told the American Journal of Transportation in August . A merger could drive more volume through the Alameda Corridor, and the impact on single-line operations and pricing are being analyzed, said Michael Leue, CEO of the Alameda Corridor Transportation Authority. But Leue cautioned that the authority would work to ensure that any cross-country networks don’t take the focus away from trying to convert more truckload freight to rail volumes in the West. “The eastern carriers have successfully grown their [inland point intermodal] share by developing logistics centers and short-haul markets,” he said. West Coast halts shift of discretionary cargo The US West Coast in the last two years has stemmed the bleed of discretionary cargo that had shifted to all-water routing through the Panama Canal to the East and Gulf coasts. That is largely due to the labor threats that hobbled East and Gulf coast ports in late 2024, as well as US importers rushing to get Asian imports into the country earlier this year before various tariff deadlines. In the first eight months of 2024 and 2025, approximately 59% of laden US imports from Asia came in through the US West Coast, compared with 56% during the same period in 2023, which was the lowest share in the last decade, according to PIERS, a sister product of the Journal of Commerce within S&P Global. In 2015, nearly 65% of laden US imports came through the US West Coast. The extent to which US West Coast ports gain greater traction in watershed markets hinges not just on how UP and NS can merge their disparate networks, IT systems and operating cultures, but also rail flow at their terminals. West Coast ports in the last two years have been able to handle peak season volumes better than in previous years, thanks to increased cooperation among stakeholders, better forecasting of demand and infrastructure improvements. Those gains can easily slip if Western railroads’ prioritization on network efficiency doesn’t allow them to provide more railcars, putting upstream congestion pressure on the marine terminals. A merged entity able to reach a Midwest market via the US West Coast may also force CN and Vancouver to become more competitive, although there’s no guarantee that a merged UP-NS would target such international intermodal business. The case against a West Coast windfall Rail analyst Paul Tonsager is skeptical that a merged entity will move the needle for West Coast ports, arguing that a transcontinental line may actually encourage more routing through the East Coast. Deals could be cut between medium-sized East Coast ports and carriers to incentivize routings, he said. Ultimately, ocean carriers are more focused on rail price rather than services, and the low margins from international rail business pale in comparison with higher-paying chemical and other bulk business, disincentivizing bold intermodal moves and investments, said Tonsager, a former executive at CN and Maersk. The impact of a transcontinental line would take years to realize, given that rail analysts say a unified provider wouldn’t be humming until three years into the merger. Rail contracts with container lines are multiyear, and there’s no guarantee that a merged entity would want to pass newly achieved operating savings to customers. The cost to move an ocean container cross-country via rail is more than $2,000 compared with $600 to $700 to truck a container from an East Coast port into the Ohio Valley area, according to estimates from various sources. Factoring in the fact that ocean container rates are approximately $1,000 more for East Coast routings than for West Coast routings, a merged railroad would have to realize more operational savings, and, importantly, be willing to pass it to ocean carriers and their customers. In the meantime, the other Class I railroads have rushed to launch jointly-operated services to better compete with a merged UP-NS. While such arrangements can attract more cargo, they can’t deliver the interchange efficiency of a single transcontinental operator, and eventually, the balance of benefits to both railroad partners favors one network over the other, several rail analysts told the Journal of Commerce. Grinding operating efficiencies out of a single transcontinental line is ultimately more beneficial, but that’s just one factor in the equation favoring West Coast routings. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

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<div class="phx-topic abstract-wrapper">After initially holding back on blank sailings, carriers have announced additional capacity withdrawals to match the slowing demand ahead of Oct. 1, when Chinese factories close for eight days for the National Day holiday. </div>

After initially holding back on blank sailings, carriers have announced additional capacity withdrawals to match the slowing demand ahead of Oct. 1, when Chinese factories close for eight days for the National Day holiday.

<div class="phx-topic">Ocean carriers have accelerated their Golden Week blank sailings for October in a last-ditch attempt to stop the sliding spot market as a broad-based weakness in rates across major trade lanes threatens to drag prices to loss-making levels. After initially holding back on blank sailings, carriers have announced additional capacity withdrawals to match the slowing demand ahead of Oct. 1, when Chinese factories close for eight days for the National Day holiday. For the four-week period beginning Sept. 29, global blank sailings are now mostly in line with historical thresholds, according to Sea-Intelligence Maritime Analysis. Asia-North America West Coast will see capacity reductions of 13.6%, Asia-North America East Coast 14.4%, Asia-North Europe 17% and the Asia-Mediterranean trade lane 16.7%. The rise in canceled sailings was widely anticipated following the tumultuous rate decline seen on the trans-Pacific in the past week. Asia-US West Coast rates tumbled 20% in the past week to $1,400 per FEU, with Asia-US East Coast rates losing 9% in the past week to settle at $2,500/FEU as of Sept. 22, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. On Asia-North Europe, rates are edging closer to levels not seen since before attacks against commercial shipping began in the Red Sea about 21 months ago, falling 8% sequentially over the last week to $1,400/FEU, while Platts shows Asia-Mediterranean rates lost 6% week over week to $1,800/FEU as of Sept. 22. Falling demand and excess capacity have spot rates falling across all market indexes. Peter Sand, chief analyst at rate benchmarking platform Xeneta, said the spot market “is beginning to bite carriers” and was rapidly approaching breakeven levels. “Being 5% to 10% above pre-Red Sea levels — the last point where carriers were loss-making — is a hard stop for the carriers,” Sand told the Journal of Commerce. “Admittedly, current rates still sit comfortably above the nine-year low point of October 2023, so short-term rates will continue to slide most likely until end-December before the pre-Chinese New Year rush allows carriers to jack up rates once again.” <h3>Fourth quarter US ‘demand shock’ </h3>Parash Jain, managing director and global head of transport and logistics research at global bank HSBC, said barring congestion-related shocks, the freight rate environment will continue to weaken. “Our headline view is that we will get a demand shock from the US going into the fourth quarter of this year, and that will carry on into early next year,” Jain told a recent Freightos webinar. It was a view shared by analysts at J.P. Morgan, who said in a market update that the Shanghai Containerized Freight Index (SCFI), which also fell sharply in the past week, was at a level that implied loss-making operations and that this week’s rate deterioration was “an important trigger point” that required a fundamental reassessment of the rate outlook. “We expect rates to continue to erode, pushing the industry into steep losses as the cost base of the industry has increased materially vs. 2019, thus pushing the breakeven point higher across the board,” the bank’s transport analysts noted. “Even if the Red Sea diversions continue into perpetuity — which appears to be the market’s view given continued geopolitical events — to us it demonstrates that the industry has limited pricing control while oversupply continues to present material challenges for the sector,” the J.P. Morgan analysts added. <h3>Steadily expanding order book </h3>While demand falters on the major trade lanes, ocean shipping capacity continues to rise. The global container shipping order book has reached 30% of the world’s in-service fleet at 9.7 million TEUs, according to Sea-web, a sister company of the Journal of Commerce. Scrapping is virtually non-existent this year and more than 1 million TEUs in capacity are scheduled to enter service before the end of the year. But the rates are not being determined by pure supply-demand metrics, at least not on the Asia-Europe trade. Even with capacity pouring into service, data from Alphaliner shows that the nine biggest liner operators currently need 461 vessels to fully staff all 31 Asia-Europe liner services. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="776ec9be-87f0-49bd-b492-e803a0c6c3b9"></dynamic-object></div>Asia-Europe is currently missing 36 vessels that are needed to guarantee uninterrupted weekly sailings, and with a small idle fleet and the complete absence of larger vessels from the spot charter market, some carriers have no way of filling those gaps. Despite longer transits around Africa to avoid the Red Sea and the lack of tonnage on Asia-Europe, the supply-demand effect on freight rates has completely evaporated. “Spot rates from Shanghai to North Europe have declined 45% over the past 10 weeks, with double-digit decreases in the last three weeks,” Alphaliner noted. “This clearly hints at a rate war between some of the major operators.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Ocean carriers have accelerated their Golden Week blank sailings for October in a last-ditch attempt to stop the sliding spot market as a broad-based weakness in rates across major trade lanes threatens to drag prices to loss-making levels. After initially holding back on blank sailings, carriers have announced additional capacity withdrawals to match the slowing demand ahead of Oct. 1, when Chinese factories close for eight days for the National Day holiday. For the four-week period beginning Sept. 29, global blank sailings are now mostly in line with historical thresholds, according to Sea-Intelligence Maritime Analysis. Asia-North America West Coast will see capacity reductions of 13.6%, Asia-North America East Coast 14.4%, Asia-North Europe 17% and the Asia-Mediterranean trade lane 16.7%. The rise in canceled sailings was widely anticipated following the tumultuous rate decline seen on the trans-Pacific in the past week. Asia-US West Coast rates tumbled 20% in the past week to $1,400 per FEU, with Asia-US East Coast rates losing 9% in the past week to settle at $2,500/FEU as of Sept. 22, according to Platts, a sister company of the Journal of Commerce within S&P Global. On Asia-North Europe, rates are edging closer to levels not seen since before attacks against commercial shipping began in the Red Sea about 21 months ago, falling 8% sequentially over the last week to $1,400/FEU, while Platts shows Asia-Mediterranean rates lost 6% week over week to $1,800/FEU as of Sept. 22. Falling demand and excess capacity have spot rates falling across all market indexes. Peter Sand, chief analyst at rate benchmarking platform Xeneta, said the spot market “is beginning to bite carriers” and was rapidly approaching breakeven levels. “Being 5% to 10% above pre-Red Sea levels — the last point where carriers were loss-making — is a hard stop for the carriers,” Sand told the Journal of Commerce. “Admittedly, current rates still sit comfortably above the nine-year low point of October 2023, so short-term rates will continue to slide most likely until end-December before the pre-Chinese New Year rush allows carriers to jack up rates once again.” Fourth quarter US ‘demand shock’ Parash Jain, managing director and global head of transport and logistics research at global bank HSBC, said barring congestion-related shocks, the freight rate environment will continue to weaken. “Our headline view is that we will get a demand shock from the US going into the fourth quarter of this year, and that will carry on into early next year,” Jain told a recent Freightos webinar. It was a view shared by analysts at J.P. Morgan, who said in a market update that the Shanghai Containerized Freight Index (SCFI), which also fell sharply in the past week, was at a level that implied loss-making operations and that this week’s rate deterioration was “an important trigger point” that required a fundamental reassessment of the rate outlook. “We expect rates to continue to erode, pushing the industry into steep losses as the cost base of the industry has increased materially vs. 2019, thus pushing the breakeven point higher across the board,” the bank’s transport analysts noted. “Even if the Red Sea diversions continue into perpetuity — which appears to be the market’s view given continued geopolitical events — to us it demonstrates that the industry has limited pricing control while oversupply continues to present material challenges for the sector,” the J.P. Morgan analysts added. Steadily expanding order book While demand falters on the major trade lanes, ocean shipping capacity continues to rise. The global container shipping order book has reached 30% of the world’s in-service fleet at 9.7 million TEUs, according to Sea-web, a sister company of the Journal of Commerce. Scrapping is virtually non-existent this year and more than 1 million TEUs in capacity are scheduled to enter service before the end of the year. But the rates are not being determined by pure supply-demand metrics, at least not on the Asia-Europe trade. Even with capacity pouring into service, data from Alphaliner shows that the nine biggest liner operators currently need 461 vessels to fully staff all 31 Asia-Europe liner services. Asia-Europe is currently missing 36 vessels that are needed to guarantee uninterrupted weekly sailings, and with a small idle fleet and the complete absence of larger vessels from the spot charter market, some carriers have no way of filling those gaps. Despite longer transits around Africa to avoid the Red Sea and the lack of tonnage on Asia-Europe, the supply-demand effect on freight rates has completely evaporated. “Spot rates from Shanghai to North Europe have declined 45% over the past 10 weeks, with double-digit decreases in the last three weeks,” Alphaliner noted. “This clearly hints at a rate war between some of the major operators.” Contact Greg Knowler at greg.knowler@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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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 premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Breakbulk News

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

Port News

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

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