<div class="phx-topic abstract-wrapper">Specialized carrier Zeamarine has published an IMO 2020-driven bunker clause announcement for its tramp and semi-liner multipurpose and heavy-lift fleet as it looks to offset the coming jump in fuel costs.
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Specialized carrier Zeamarine has published an IMO 2020-driven bunker clause announcement for its tramp and semi-liner multipurpose and heavy-lift fleet as it looks to offset the coming jump in fuel costs.

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<div>Zeamarine Friday became one of the first, if not the first, <a>major multipurpose vessel/heavy-lift (MPV/HL) carriers</a> to announce a bunker adjustment policy directly related to the International Maritime Organization (IMO) 2020 switch to low-sulfur fuel.In a statement, the Hamburg-based carrier said tramp bookings will be subject to a new IMO 2020 bunker adjustment clause for voyage quotations as of Sept. 1. For liner services, which operate in defined, predictable service patterns, <a>Zeamarine</a> will levy a low-sulfur surcharge of $35 per freight ton for all bookings beginning on or after Sept. 1, regardless of volume or loading/discharge region. Zeamarine CCO <a>Dominik...

Zeamarine Friday became one of the first, if not the first, major multipurpose vessel/heavy-lift (MPV/HL) carriers to announce a bunker adjustment policy directly related to the International Maritime Organization (IMO) 2020 switch to low-sulfur fuel. In a statement, the Hamburg-based carrier said tramp bookings will be subject to a new IMO 2020 bunker adjustment clause for voyage quotations as of Sept. 1. For liner services, which operate in defined, predictable service patterns, Zeamarine will levy a low-sulfur surcharge of $35 per freight ton for all bookings beginning on or after Sept. 1, regardless of volume or loading/discharge region. Zeamarine CCO Dominik Stehle told JOC.com the tramp bunker adjustment clause will be based on the difference between IFO 380 (traditional 3.5 percent sulfur “heavy” fuel oil) and marine gasoil (MGO), pricey low-sulfur fuel now used in emission control areas globally. “For each $10 difference between IFO 380 and MGO, we will charge an additional fee per freight ton,” Stehle said. This method for figuring costs will continue until early 2020, when the global fleet completes the IMO-required switch away from high-sulfur fuel oil (HSFO) to new blends of 0.5-percent sulfur fuels, also called very low-sulfur fuel oils (VLSFO). The IMO mandate goes into effect Jan. 1, 2020. Zeamarine has begun preparing its fleet for the switchover, Stehle said, which requires taking ships off hire for several days, cleaning tanks, and running them on several cycles of new fuel. “There are a lot of expenses associated with this new regulation, and these are being incurred in the fourth quarter of 2019, so that is why we are charging the new bunker rates as of September 1,” he said. “There are significant costs related to the preparation of our vessels.” Although the fleet has seen challenges with low-sulfur fuel compatibility and ship engines, Stehle believes the oil companies will have hashed out their problems by Jan 1. “No producers can afford not to be ready” for IMO 2020 requirements, he said. In the interim, he expects the fleet to rely on expensive but reliable MGO once they’ve switched their ships over from burning HSFO. Supply side questions Some analysts are not so sanguine about the supply of low-sulfur bunker fuel post-January 1, however. According to energy analysts at IHS Markit, the parent company of JOC.com, come 2020, refiners will be able to meet only half of the global low-sulfur marine fuel demand with new VLSFO bunkers. The remaining demand for compliant low-sulfur fuel will be satisfied with MGO — especially given that VLSFO is a new product that, at least initially, will be sold in different variations in different ports, raising engine compatibility concerns and availability questions. IHS Markit sees “diesel [i.e. MGO] prices rising sharply and HSFO prices plummeting,” due to what will be a sharp pullback in demand, said Daniel Evans, vice president and Paris-based head of refining and marketing. Contact Janet Nodar at janet.nodar@ihsmarkit.com or follow her on Twitter @janet_nodar .

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Zeamarine sets IMO 2020 bunker adjustment

<div class="phx-topic abstract-wrapper">Mediterranean Shipping Co. is furthering its lead in vessel tonnage so far this year as it absorbs more than double the amount of new capacity added by No. 2 carrier Maersk. </div>

Mediterranean Shipping Co. is furthering its lead in vessel tonnage so far this year as it absorbs more than double the amount of new capacity added by No. 2 carrier Maersk.

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<div class="phx-topic">Mediterranean Shipping Co. (MSC) widened its already leading market share among ocean carriers as its fleet added the most ships in the first half of 2025, according to Alphaliner. Many of those new ships, though, are entering non-US trades as trans-Pacific demand appears to be ebbing for the remainder of the year. MSC’s fleet grew 5.5% in H1, Alphaliner said in its weekly newsletter Wednesday. Only Ocean Network Express (ONE) saw a higher growth rate during that period at 5.9%, but MSC outstripped others for most new capacity, adding some 365,173 TEUs to its fleet, Alphaliner said. The additional capacity, a combination of newbuild deliveries and acquisitions of second-hand ships, brings MSC’s total fleet to over 6.6 million TEUs, Alphaliner said. It added that MSC’s “relentless pursuit of capacity” has widened the gap with its former 2M partner Maersk, which added 170,371 TEUs during the first half of 2025 and brought its capacity to 4.5 million TEUs. “To put this into perspective, this gap (between MSC and Maersk) is equal to the entire fleet of ONE,” Alphaliner said, adding MSC is expected to take delivery of another 380,000 TEUs of newbuild capacity during the second half of 2025. Alphaliner said Maersk’s goal is not to enlarge its fleet as much as it aims to replace older vessels and make its network more efficient. It added that CMA CGM, which has the second-largest orderbook of new ships at 1.5 million TEUs, is “set to overtake Maersk in the coming years” in terms of fleet size. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="00f898cc-0bf5-4e4d-80d3-6db9454b1165"></dynamic-object></div><h3>Ships head to non-US markets </h3>During a speech last month to agriculture shippers, MSC’s US president, Fabio Santucci, said that while the fleet buildup may look excessive, it will head off even worse delays for shippers. Port congestion ties up about 10% of the global feet, he said, while the ongoing diversions around southern Africa absorb another 6%. MSC’s additional tonnage “is being fully absorbed and utilized and we are able to move cargo at 65% schedule reliability,” Santucci said. “Had we been more responsible financially, we would have had fewer ships, but the challenge is 50% schedule reliability.” While Santucci noted that MSC’s trans-Pacific reliability is hovering around 80%, much of the new tonnage is not currently serving US markets. Of 25 post-Panamax vessels delivered to MSC in the first half of 2025, only one – the 8,496-TEU MSC Benin – has called the US West Coast, according to satellite data from Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. Santucci said MSC is seeing the most cargo growth outside the US, with South America and Africa seeing respective growth of 10% and 12% during the first half of the year. Europe is also growing “well above average,” he said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Mediterranean Shipping Co. (MSC) widened its already leading market share among ocean carriers as its fleet added the most ships in the first half of 2025, according to Alphaliner. Many of those new ships, though, are entering non-US trades as trans-Pacific demand appears to be ebbing for the remainder of the year. MSC’s fleet grew 5.5% in H1, Alphaliner said in its weekly newsletter Wednesday. Only Ocean Network Express (ONE) saw a higher growth rate during that period at 5.9%, but MSC outstripped others for most new capacity, adding some 365,173 TEUs to its fleet, Alphaliner said. The additional capacity, a combination of newbuild deliveries and acquisitions of second-hand ships, brings MSC’s total fleet to over 6.6 million TEUs, Alphaliner said. It added that MSC’s “relentless pursuit of capacity” has widened the gap with its former 2M partner Maersk, which added 170,371 TEUs during the first half of 2025 and brought its capacity to 4.5 million TEUs. “To put this into perspective, this gap (between MSC and Maersk) is equal to the entire fleet of ONE,” Alphaliner said, adding MSC is expected to take delivery of another 380,000 TEUs of newbuild capacity during the second half of 2025. Alphaliner said Maersk’s goal is not to enlarge its fleet as much as it aims to replace older vessels and make its network more efficient. It added that CMA CGM, which has the second-largest orderbook of new ships at 1.5 million TEUs, is “set to overtake Maersk in the coming years” in terms of fleet size. Ships head to non-US markets During a speech last month to agriculture shippers, MSC’s US president, Fabio Santucci, said that while the fleet buildup may look excessive, it will head off even worse delays for shippers. Port congestion ties up about 10% of the global feet, he said, while the ongoing diversions around southern Africa absorb another 6%. MSC’s additional tonnage “is being fully absorbed and utilized and we are able to move cargo at 65% schedule reliability,” Santucci said. “Had we been more responsible financially, we would have had fewer ships, but the challenge is 50% schedule reliability.” While Santucci noted that MSC’s trans-Pacific reliability is hovering around 80%, much of the new tonnage is not currently serving US markets. Of 25 post-Panamax vessels delivered to MSC in the first half of 2025, only one – the 8,496-TEU MSC Benin – has called the US West Coast, according to satellite data from Sea-web, a sister product of the Journal of Commerce within S&P Global. Santucci said MSC is seeing the most cargo growth outside the US, with South America and Africa seeing respective growth of 10% and 12% during the first half of the year. Europe is also growing “well above average,” he said. Contact Michael Angell at michael.angell@spglobal.com

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MSC outstripping rivals on new capacity for 2025: Alphaliner

<div class="phx-topic abstract-wrapper">But the mini rush will be short-lived, with imports falling month to month between August and November, the National Retail Federation and Hackett Associates said in their latest Global Port Tracker.</div>

But the mini rush will be short-lived, with imports falling month to month between August and November, the National Retail Federation and Hackett Associates said in their latest Global Port Tracker.

<div class="phx-topic">US imports in July are expected to hit their highest level in at least the past 18 months and their peak for 2025, driven by the Aug. 1 extension granted by the Trump administration before the implementation of so-called reciprocal tariffs on a host of US trading partners, a major retail group said Wednesday. But the mini rush will be short-lived, with imports falling month to month between August and November, the National Retail Federation (NRF) and Hackett Associates said in their latest Global Port Tracker (GPT). “The tariff situation remains highly fluid and retailers are working hard to stock up for the holiday season before the various tariffs that have been announced and paused actually take effect,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said. “Retailers have brought in as much merchandise as possible ahead of the reciprocal tariffs taking effect...” The White House’s unexpected extension of a 90-day pause in new tariffs that were due to take effect July 9 caused the NRF and Hackett to upgrade their import projections for July through October compared with June’s GPT. And while Gold said the brief extension was “greatly appreciated” by retailers, he chided the Trump administration for the seeming whiplash nature of its tariff policy. “...Uncertainty over tariffs makes it increasingly difficult for retailers to plan, especially small businesses that have no capacity to absorb tariffs,” he said. “...It is vital for the administration to finalize negotiations with our trading partners and provide stability and certainty for US retailers.” <h3>Big bump in July forecast </h3>The GPT’s updated forecast calls for 2.36 million TEUs in US imports in July, up almost 11% from the June GPT and surpassing the 2.32 million TEUs brought in during July 2024. July is the only month in the second half of 2025 forecast to see year-over-year increases, so far. In August, retailers expect US imports to reach 2.08 million TEUs, up 5% from the forecast made in June but more than 10% under the 2.32 million TEUs imported in August 2024. September import projections were upgraded to 1.82 million TEUs — up 2.2% from the projection made last month but nearly 20% below year-ago levels. October’s import forecast increased by just half a percent to 1.81 million TEUs, 19.1% below volumes from October 2024. In its initial forecast for November, the GPT pegs imports at 1.7 million TEUs, down 16.2% year over year. Amid the forecasts for significant year-over-year import declines for the second half of 2025, Hackett Associates founder Ben Hackett pointed to supply chain uncertainty exacerbated by shifting tariff policies. “The global supply chain functions best in a trade environment that is smooth and predictable,” he said. “Instead, it has been forced to contend with erratic policies and geopolitical volatility.” The latest GPT projects June’s import volumes will come in at 2.06 million TEUs, up about 2.5% from the forecast made last month. Meanwhile, May’s actual volume of 1.95 million TEUs was about 2% higher than projected in the prior GPT. As volumes in the trans-Pacific look to retract beyond July, carriers have responded with reductions to capacity, with plans to deploy 6.2% less tonnage from Asia to the US West Coast in August than in July, according to maritime intelligence provider eeSea. The GPT is published monthly using import data collected from 13 ports on the US East, West and Gulf coasts. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

US imports in July are expected to hit their highest level in at least the past 18 months and their peak for 2025, driven by the Aug. 1 extension granted by the Trump administration before the implementation of so-called reciprocal tariffs on a host of US trading partners, a major retail group said Wednesday. But the mini rush will be short-lived, with imports falling month to month between August and November, the National Retail Federation (NRF) and Hackett Associates said in their latest Global Port Tracker (GPT). “The tariff situation remains highly fluid and retailers are working hard to stock up for the holiday season before the various tariffs that have been announced and paused actually take effect,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said. “Retailers have brought in as much merchandise as possible ahead of the reciprocal tariffs taking effect...” The White House’s unexpected extension of a 90-day pause in new tariffs that were due to take effect July 9 caused the NRF and Hackett to upgrade their import projections for July through October compared with June’s GPT. And while Gold said the brief extension was “greatly appreciated” by retailers, he chided the Trump administration for the seeming whiplash nature of its tariff policy. “...Uncertainty over tariffs makes it increasingly difficult for retailers to plan, especially small businesses that have no capacity to absorb tariffs,” he said. “...It is vital for the administration to finalize negotiations with our trading partners and provide stability and certainty for US retailers.” Big bump in July forecast The GPT’s updated forecast calls for 2.36 million TEUs in US imports in July, up almost 11% from the June GPT and surpassing the 2.32 million TEUs brought in during July 2024. July is the only month in the second half of 2025 forecast to see year-over-year increases, so far. In August, retailers expect US imports to reach 2.08 million TEUs, up 5% from the forecast made in June but more than 10% under the 2.32 million TEUs imported in August 2024. September import projections were upgraded to 1.82 million TEUs — up 2.2% from the projection made last month but nearly 20% below year-ago levels. October’s import forecast increased by just half a percent to 1.81 million TEUs, 19.1% below volumes from October 2024. In its initial forecast for November, the GPT pegs imports at 1.7 million TEUs, down 16.2% year over year. Amid the forecasts for significant year-over-year import declines for the second half of 2025, Hackett Associates founder Ben Hackett pointed to supply chain uncertainty exacerbated by shifting tariff policies. “The global supply chain functions best in a trade environment that is smooth and predictable,” he said. “Instead, it has been forced to contend with erratic policies and geopolitical volatility.” The latest GPT projects June’s import volumes will come in at 2.06 million TEUs, up about 2.5% from the forecast made last month. Meanwhile, May’s actual volume of 1.95 million TEUs was about 2% higher than projected in the prior GPT. As volumes in the trans-Pacific look to retract beyond July, carriers have responded with reductions to capacity, with plans to deploy 6.2% less tonnage from Asia to the US West Coast in August than in July, according to maritime intelligence provider eeSea. The GPT is published monthly using import data collected from 13 ports on the US East, West and Gulf coasts. Contact Laura Robb at laura.robb@spglobal.com .

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US retailers upgrade import forecast after tariff deadline extended to Aug. 1

<div class="phx-topic abstract-wrapper">The moves by CMA CGM were made to improve westbound transit times that remain a challenge due to ongoing vessel diversions around southern Africa. </div>

The moves by CMA CGM were made to improve westbound transit times that remain a challenge due to ongoing vessel diversions around southern Africa.

<div class="phx-topic">CMA CGM has implemented a series of adjustments to its premier “Indamex” service between India and the US East Coast (USEC) to better compete with its peers on the trade lane, including dropping a long-time call at Charleston. The move was made to improve westbound transit times that remain a challenge due to ongoing vessel diversions around southern Africa. The French carrier will also phase in three additional ships into the network to offer a weekly rotation as consistently as possible as sporadic void calls continue to vex schedule reliability. The service has blanked four Indian sailings through June and July. “The Indamex lineup is being reinforced by adding three vessels to the fleet,” CMA CGM said in a customer advisory. With the enhancements, the carrier estimates the Indamex roundtrip voyage duration will improve to 84 days from the current 90-plus days. The full revised rotation will be Pakistan’s Port Qasim, Nhava Sheva, Mundra, Colombo, New York, Norfolk, Savannah, and back to Port Qasim. But CMA CGM said the call at Port Qasim remains restricted to import discharge operations amid transit cargo restrictions for Pakistani containers at Indian ports, an issue tied to recent regional trade tensions. The reorganized routing also removes a temporary call to Khalifa Port in Abu Dhabi that the carrier introduced in May to handle Pakistani transshipments, which are now expected to be relayed entirely over Colombo in Sri Lanka. For Indian loads, the changes are due to begin with the Belita that has an estimated time of arrival of July 13 in Nhava Sheva Port, berthing data shows. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="56199e2b-5df4-468f-a149-b18ae7c32e51"></dynamic-object></div>The Indamex service has been a long-time market leader on the India-USEC route. It is now a standalone operation for CMA CGM following Hapag-Lloyd’s exit from the network in February as it shifted to the Gemini Cooperation alliance with Maersk. The Cosco Shipping and OOCL subsidiary co-load on the loop via weekly slot space arrangements with CMA CGM. The service changes also appear to be an attempt by CMA CGM to regain market share lost to competitors — Maersk, in particular, after it introduced an enhanced “MECL” loop on the trade lane in February. Still, Hapag-Lloyd’s TPI service leads India-North America volumes, accounting for about 25% of the market, according to anecdotal industry data. Meanwhile, most India-USEC carriers, including Hapag-Lloyd and CMA CGM, have jettisoned rate hike plans they were to implement beginning July 15, in another indication of their faltering price recovery efforts. Still, spot rates on the trade lane have shown some strength so far this month, with Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegging rates at $2,800 per FEU as of July 8, up 6% on the week. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

CMA CGM has implemented a series of adjustments to its premier “Indamex” service between India and the US East Coast (USEC) to better compete with its peers on the trade lane, including dropping a long-time call at Charleston. The move was made to improve westbound transit times that remain a challenge due to ongoing vessel diversions around southern Africa. The French carrier will also phase in three additional ships into the network to offer a weekly rotation as consistently as possible as sporadic void calls continue to vex schedule reliability. The service has blanked four Indian sailings through June and July. “The Indamex lineup is being reinforced by adding three vessels to the fleet,” CMA CGM said in a customer advisory. With the enhancements, the carrier estimates the Indamex roundtrip voyage duration will improve to 84 days from the current 90-plus days. The full revised rotation will be Pakistan’s Port Qasim, Nhava Sheva, Mundra, Colombo, New York, Norfolk, Savannah, and back to Port Qasim. But CMA CGM said the call at Port Qasim remains restricted to import discharge operations amid transit cargo restrictions for Pakistani containers at Indian ports, an issue tied to recent regional trade tensions. The reorganized routing also removes a temporary call to Khalifa Port in Abu Dhabi that the carrier introduced in May to handle Pakistani transshipments, which are now expected to be relayed entirely over Colombo in Sri Lanka. For Indian loads, the changes are due to begin with the Belita that has an estimated time of arrival of July 13 in Nhava Sheva Port, berthing data shows. The Indamex service has been a long-time market leader on the India-USEC route. It is now a standalone operation for CMA CGM following Hapag-Lloyd’s exit from the network in February as it shifted to the Gemini Cooperation alliance with Maersk. The Cosco Shipping and OOCL subsidiary co-load on the loop via weekly slot space arrangements with CMA CGM. The service changes also appear to be an attempt by CMA CGM to regain market share lost to competitors — Maersk, in particular, after it introduced an enhanced “MECL” loop on the trade lane in February. Still, Hapag-Lloyd’s TPI service leads India-North America volumes, accounting for about 25% of the market, according to anecdotal industry data. Meanwhile, most India-USEC carriers, including Hapag-Lloyd and CMA CGM, have jettisoned rate hike plans they were to implement beginning July 15, in another indication of their faltering price recovery efforts. Still, spot rates on the trade lane have shown some strength so far this month, with Platts, a sister company of the Journal of Commerce within S&P Global, pegging rates at $2,800 per FEU as of July 8, up 6% on the week. Contact Bency Mathew at bencyvmathew@gmail.com .

India-US ‘Indamex’ string drops Charleston, adds more ships to bolster reliability

<div class="phx-topic abstract-wrapper">In the latest course correction in the US’ busiest trade lane, carriers are set to deploy less tonnage in August as spot rates fall and retail import forecasts weaken. </div>

In the latest course correction in the US’ busiest trade lane, carriers are set to deploy less tonnage in August as spot rates fall and retail import forecasts weaken.

<div class="phx-topic">Container lines are pulling back on the deployment of tonnage from Asia to the US in August in the latest course correction linked to stop-and-start import demand amid tariff uncertainty. Container lines are set to deploy 6.2% less tonnage from Asia to the US West Coast in August than in July, equating to 90,000 TEUs of capacity, according to maritime intelligence provider eeSea. Comparatively, ocean capacity from Asia to US East and Gulf coasts will be trimmed by just 1.7%. Mediterranean Shipping Co. this week suspended its Pearl service to Long Beach, with the last sailing out of Xiamen on July 13, according to Kuehne + Nagel’s SeaExplorer tool. Container lines can also blank sailings — removing ships from services or skipping ports — to further calibrate capacity to weakening demand.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="0d272fa5-b752-4ec3-a342-964ef1a2b1f3"></dynamic-object></div>The rate of blanking compared with deployed capacity in May reached 26%, equating to 262,000 TEUs, as carriers adjusted networks, according to eeSea. In June, the rate was 9.5%. <h3>Tariff whiplash </h3>Carriers began pushing capacity back into the trade in May in anticipation of a surge of imports from China, driven by an early peak season caused in large part by the 90-day reprieve on higher US tariffs. Just a month earlier, US importers canceled China bookings after President Donald Trump on April 9 imposed 145% tariffs. In response, ocean carriers blanked sailings and suspended services, although Trump soon reversed course. Now carriers face an expanding capacity overhang amid downbeat retail import forecasts and the surge in US imports linked to the initial tariff reprieve in its last gasp. The tentative agreement with China to bring US tariffs to 55% hasn’t had much impact on importers’ peak season ordering, thanks to more than eight months of frontloading shipments and a narrow window for getting goods in before the year-end shopping season. While US retailers <a href="https://www.joc.com/article/pause-on-tariffs-prompts-us-retailers-to-upgrade-summer-import-forecast-6022230">upgraded their import forecast</a> slightly in early June, their volume expectations still lag the same period in 2024. US imports are expected to reach 2.13 million TEUs this month, down from 2.32 million TEUs a year ago, according to the Global Port Tracker. Retailers plan to bring in 14.7% less volume, equating to 331,000 TEUs of capacity, next month compared with August 2024. US laden imports from Asia have been falling since September, with the exception of a short-lived recovery in April, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. In September, inbound volumes hit 1.79 million TEUs, falling to 1.4 million TEUs by May. Container spot rates from Asia to the US, a barometer of how capacity is matching up to demand, have been falling for a month, according to various indexes. For example, container spot rates from Shanghai to the US West Coast last week were less than half the price a month ago, at $2,089 per FEU, according to the Shanghai Containerized Freight Index. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com ">mark.szakonyi@spglobal.com</a>. </div>

Container lines are pulling back on the deployment of tonnage from Asia to the US in August in the latest course correction linked to stop-and-start import demand amid tariff uncertainty. Container lines are set to deploy 6.2% less tonnage from Asia to the US West Coast in August than in July, equating to 90,000 TEUs of capacity, according to maritime intelligence provider eeSea. Comparatively, ocean capacity from Asia to US East and Gulf coasts will be trimmed by just 1.7%. Mediterranean Shipping Co. this week suspended its Pearl service to Long Beach, with the last sailing out of Xiamen on July 13, according to Kuehne + Nagel’s SeaExplorer tool. Container lines can also blank sailings — removing ships from services or skipping ports — to further calibrate capacity to weakening demand. The rate of blanking compared with deployed capacity in May reached 26%, equating to 262,000 TEUs, as carriers adjusted networks, according to eeSea. In June, the rate was 9.5%. Tariff whiplash Carriers began pushing capacity back into the trade in May in anticipation of a surge of imports from China, driven by an early peak season caused in large part by the 90-day reprieve on higher US tariffs. Just a month earlier, US importers canceled China bookings after President Donald Trump on April 9 imposed 145% tariffs. In response, ocean carriers blanked sailings and suspended services, although Trump soon reversed course. Now carriers face an expanding capacity overhang amid downbeat retail import forecasts and the surge in US imports linked to the initial tariff reprieve in its last gasp. The tentative agreement with China to bring US tariffs to 55% hasn’t had much impact on importers’ peak season ordering, thanks to more than eight months of frontloading shipments and a narrow window for getting goods in before the year-end shopping season. While US retailers upgraded their import forecast slightly in early June, their volume expectations still lag the same period in 2024. US imports are expected to reach 2.13 million TEUs this month, down from 2.32 million TEUs a year ago, according to the Global Port Tracker. Retailers plan to bring in 14.7% less volume, equating to 331,000 TEUs of capacity, next month compared with August 2024. US laden imports from Asia have been falling since September, with the exception of a short-lived recovery in April, according to PIERS, a sister product of the Journal of Commerce within S&P Global. In September, inbound volumes hit 1.79 million TEUs, falling to 1.4 million TEUs by May. Container spot rates from Asia to the US, a barometer of how capacity is matching up to demand, have been falling for a month, according to various indexes. For example, container spot rates from Shanghai to the US West Coast last week were less than half the price a month ago, at $2,089 per FEU, according to the Shanghai Containerized Freight Index. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Container lines cutting trans-Pacific capacity overhang

<div class="phx-topic abstract-wrapper">The routing impasse between the railroads threatens supply chain disruptions for ocean carrier CMA CGM, which has cargo booked on the service that is due to begin later this week.</div>

The routing impasse between the railroads threatens supply chain disruptions for ocean carrier CMA CGM, which has cargo booked on the service that is due to begin later this week.

<div class="phx-topic">BNSF Railway has filed an <a href="https://dcms-external.s3.amazonaws.com/DCMS_External_PROD/1751927358207/309737.pdf">emergency petition</a> with the US Surface Transportation Board (STB) to intervene in a dispute with Union Pacific Railroad (UP) in which BNSF alleges UP is blocking the launch of a new freight service between the Port of Oakland and Salt Lake City. The impasse threatens supply chain disruptions for ocean carrier CMA CGM, which has cargo booked on the service that is due to begin later this week. The disagreement involves how BNSF will route trains between Oakland and Salt Lake City. BNSF wants to run a double-stack intermodal service along the so-called Northern Route, which passes through Northern California and Nevada. UP said BNSF must instead use the Southern Route over Donner Pass near Lake Tahoe, where UP invested in costly tunnel upgrades more than a decade ago. The route selected has financial implications for both Class I railroads, including how many train crews are needed and whether BNSF would owe Union Pacific millions of dollars for using the upgraded Southern Route. BNSF has the right to use UP-owned tracks between Oakland and Salt Lake City. However, UP controls dispatching and provides train crews, and without its cooperation, BNSF cannot move containers across the corridor. The dispute, meanwhile, threatens the launch of an international intermodal service scheduled for later this week. CMA CGM called the matter “deeply concerning” and costly for cargo owners. “Without immediate resolution, our supply chain will be disrupted, impacting our customers across the region, including potentially a loss of business,” Bob Basila, senior vice president of CMA CGM, wrote in <a href="https://dcms-external.s3.amazonaws.com/DCMS_External_PROD/1751927391221/309738.pdf">a filing to the STB Monday</a>. “We have made substantial operational and commercial commitments based on the availability of this service, and the current impasse threatens to undermine those investments.” BNSF said emergency relief is necessary given freight has already arrived in Oakland. “The first empty train arrived in Salt Lake City [July 6] and the first container arrived [July 7],” BNSF wrote Monday in its petition to the STB. “Once loaded, the first westbound train is expected to leave Salt Lake City this week. BNSF anticipates the first eastbound movement of BNSF double-stack intermodal trains over the Northern Route will begin as early as later this week.” There is potential for business growth in Salt Lake City for ocean carriers. In 2020, ocean carriers handled nearly 52,000 TEUs between Oakland and Salt Lake City, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. The total, however, has fallen each subsequent year, ending last year at 16,600 TEUs. If ocean carriers were able to return to the 2020 total, it would be enough volume to support multiple trains per week in both directions, although it’s unlikely there would be daily trains. <h3>Allegations fly in both directions </h3>BNSF told the STB it would prefer to use the Northern Route and claimed UP is employing delay tactics in retaliation for BNSF signing multi-year agreements with two former UP ocean carrier partners, including CMA CGM. UP alleges that BNSF did not provide sufficient prior notice to hire crews and plan resources to handle up to five trains per week in both directions between Oakland and Salt Lake City and requires more time to prepare. Carl Garrison, UP’s vice president of network planning and operations, said BNSF only notified UP senior staff of its needs on June 20. BNSF countered that it contacted UP on May 2, including written correspondence and follow-up phone calls. “If BNSF cannot fulfill its promises to begin running new intermodal service this week, it has only itself to blame,” UP wrote in <a href="https://dcms-external.s3.amazonaws.com/DCMS_External_PROD/1751971741044/309739.pdf">its response Monday</a> to the STB. UP also said trains on the Northern Route primarily run westbound, so running a bi-directional service would require significant operational adjustments and could degrade the performance of existing trains. It added that the Southern Route is best equipped to handle bi-directional traffic. The Southern Route was upgraded in 2009 to accommodate double-stack intermodal trains. If BNSF uses it, the company could be required to reimburse UP for up to half the cost of those improvements. BNSF argues doing so would cost tens of millions of dollars, making the new service financially unsustainable. BNSF would only need to pay for crew services, dispatching and track access on the Northern Route, a much lower figure. UP also said the matter should go through the normal STB dispute process, not an emergency filing. The normal dispute resolution process outlined in a 2002 agreement includes meetings, executive escalation, and potential arbitration or mediation, which can take far longer to resolve. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

BNSF Railway has filed an emergency petition with the US Surface Transportation Board (STB) to intervene in a dispute with Union Pacific Railroad (UP) in which BNSF alleges UP is blocking the launch of a new freight service between the Port of Oakland and Salt Lake City. The impasse threatens supply chain disruptions for ocean carrier CMA CGM, which has cargo booked on the service that is due to begin later this week. The disagreement involves how BNSF will route trains between Oakland and Salt Lake City. BNSF wants to run a double-stack intermodal service along the so-called Northern Route, which passes through Northern California and Nevada. UP said BNSF must instead use the Southern Route over Donner Pass near Lake Tahoe, where UP invested in costly tunnel upgrades more than a decade ago. The route selected has financial implications for both Class I railroads, including how many train crews are needed and whether BNSF would owe Union Pacific millions of dollars for using the upgraded Southern Route. BNSF has the right to use UP-owned tracks between Oakland and Salt Lake City. However, UP controls dispatching and provides train crews, and without its cooperation, BNSF cannot move containers across the corridor. The dispute, meanwhile, threatens the launch of an international intermodal service scheduled for later this week. CMA CGM called the matter “deeply concerning” and costly for cargo owners. “Without immediate resolution, our supply chain will be disrupted, impacting our customers across the region, including potentially a loss of business,” Bob Basila, senior vice president of CMA CGM, wrote in a filing to the STB Monday . “We have made substantial operational and commercial commitments based on the availability of this service, and the current impasse threatens to undermine those investments.” BNSF said emergency relief is necessary given freight has already arrived in Oakland. “The first empty train arrived in Salt Lake City [July 6] and the first container arrived [July 7],” BNSF wrote Monday in its petition to the STB. “Once loaded, the first westbound train is expected to leave Salt Lake City this week. BNSF anticipates the first eastbound movement of BNSF double-stack intermodal trains over the Northern Route will begin as early as later this week.” There is potential for business growth in Salt Lake City for ocean carriers. In 2020, ocean carriers handled nearly 52,000 TEUs between Oakland and Salt Lake City, according to PIERS, a sister product of the Journal of Commerce within S&P Global. The total, however, has fallen each subsequent year, ending last year at 16,600 TEUs. If ocean carriers were able to return to the 2020 total, it would be enough volume to support multiple trains per week in both directions, although it’s unlikely there would be daily trains. Allegations fly in both directions BNSF told the STB it would prefer to use the Northern Route and claimed UP is employing delay tactics in retaliation for BNSF signing multi-year agreements with two former UP ocean carrier partners, including CMA CGM. UP alleges that BNSF did not provide sufficient prior notice to hire crews and plan resources to handle up to five trains per week in both directions between Oakland and Salt Lake City and requires more time to prepare. Carl Garrison, UP’s vice president of network planning and operations, said BNSF only notified UP senior staff of its needs on June 20. BNSF countered that it contacted UP on May 2, including written correspondence and follow-up phone calls. “If BNSF cannot fulfill its promises to begin running new intermodal service this week, it has only itself to blame,” UP wrote in its response Monday to the STB. UP also said trains on the Northern Route primarily run westbound, so running a bi-directional service would require significant operational adjustments and could degrade the performance of existing trains. It added that the Southern Route is best equipped to handle bi-directional traffic. The Southern Route was upgraded in 2009 to accommodate double-stack intermodal trains. If BNSF uses it, the company could be required to reimburse UP for up to half the cost of those improvements. BNSF argues doing so would cost tens of millions of dollars, making the new service financially unsustainable. BNSF would only need to pay for crew services, dispatching and track access on the Northern Route, a much lower figure. UP also said the matter should go through the normal STB dispute process, not an emergency filing. The normal dispute resolution process outlined in a 2002 agreement includes meetings, executive escalation, and potential arbitration or mediation, which can take far longer to resolve. Contact Ari Ashe at ari.ashe@spglobal.com .

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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