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<div class="phx-topic abstract-wrapper">China will continue to expand its economy, but its growth will be based upon technology and innovation rather than low-cost labor, according to a consultant who has lived there for the past 20 years.&lt;</div>

China will continue to expand its economy, but its growth will be based upon technology and innovation rather than low-cost labor, according to a consultant who has lived there for the past 20 years.<

<div>China will continue to expand its economy, but its growth will be based upon technology and innovation rather than low-cost labor, according to a consultant who has lived there for the past 20 years.For U.S. companies seeking to invest in or sell their products to China, some of the best opportunities will therefore be found in areas such as clean-energy technology, information technology, biotechnology and high-end manufacturing, said James McGregor, senior counselor in Beijing to APCO Worldwide.China over the past 30 years has experienced unprecedented growth as the so-called factory for the world. That economic model, which began under Communist...

China will continue to expand its economy, but its growth will be based upon technology and innovation rather than low-cost labor, according to a consultant who has lived there for the past 20 years. For U.S. companies seeking to invest in or sell their products to China, some of the best opportunities will therefore be found in areas such as clean-energy technology, information technology, biotechnology and high-end manufacturing, said James McGregor, senior counselor in Beijing to APCO Worldwide. China over the past 30 years has experienced unprecedented growth as the so-called factory for the world. That economic model, which began under Communist Party leader Deng Xiaoping, is running out of steam, McGregor said. &ldquo;The Deng Xiaoping era is over,&rdquo; McGregor told the annual Asia/Pacific Business Outlook conference Tuesday at the University of Southern California. China will not forgo low-cost manufacturing altogether. Some of the manufacturing will shift inland. Many plants will remain in the coastal regions but will achieve significant productivity improvements through implementation of technology. Other plants will move to Southeast Asia in search of low-cost labor . &ldquo;It will balance out,&rdquo; he said. The focus of government initiatives today, however, derives from the &ldquo;indigenous innovation&rdquo; movement that the government announced in 2006. China is encouraging scientific research and its application to industries that will employ the millions of college graduates that are pouring into the work force today. The number of college graduates each year has tripled to 6 million. These young graduates have known only prosperity and exponential economic growth in their lives. They want white collar jobs that will give them instant middle class status. &ldquo;The government runs scared of the expectations of these people. They are impatient people,&rdquo; McGregor said. Although China has been the subject of much criticism from international institutions such as the World Bank for the massive number of state-owned enterprises that dominate its economy, U.S. companies that want to do business in China should not expect these enterprises to lose their influence anytime soon. In many key sectors of the economy, state-owned-enterprises control 75 to 90 percent of the assets. &ldquo;This will be hard to break because they are integrated with the Communist Party,&rdquo; McGregor said. It is difficult to predict what type of reform, if any, will occur later this year when Vice President Xi Jinping replaces Hu Jintao as head of the Communist Party, but the country&rsquo;s new leader will have to deal with the &ldquo;princelings,&rdquo; or descendants of prominent and influential senior Communists, that have gained influence in China, McGregor said. Contact Bill Mongelluzzo at bmongelluzzo@joc.com . Follow him on Twitter @billmongelluzzo .

China's Growth Tied to Technology, Consultant Says

<div class="phx-topic abstract-wrapper">The company’s spending push is another sign that shipping and logistics multinationals are increasingly betting on India’s potential as an alternative maritime hub. </div>

The company’s spending push is another sign that shipping and logistics multinationals are increasingly betting on India’s potential as an alternative maritime hub.

Feature image

<div class="phx-topic">Global terminal and logistics giant DP World is rapidly bolstering its Indian footprint in anticipation of demand growth amid trade diversification moves and other promising regional market dynamics. The Dubai-based company has committed a further $5 billion to expand its integrated supply chain ecosystems in India. The announcement came Thursday during a government-spearheaded maritime conclave in Mumbai. That fresh investment adds to the $3 billion DP World has already poured into the Indian market across marine terminal and multimodal logistics verticals, the company said in a statement. “DP World has been a part of India’s growth story for nearly three decades,” said group Chairman and CEO Sultan Ahmed bin Sulayem. “This new investment, combined with the strategic partnerships, reaffirms our commitment to advancing India’s maritime and logistics industry and cementing the nation’s position in global trade.” The group aims to tap new opportunities in coastal shipping, shipbuilding and repair, and other advanced freight service solutions. Coastal shipping development seems to be an emerging priority on DP World’s growth agenda for India, possibly by adding more locally flagged assets to subsidiary Unifeeder’s fleet. Unifeeder acquired Indian feeder line Shreyas Shipping in 2020. DP World subsidiary Drydocks World also plans to open a ship repair cluster at Cochin, looking beyond the port gates. <h3>DP World not alone in new Indian investment </h3>The global operator already holds five container terminal concessions across four port locations in India. Additionally, it is building a $550-million box terminal off Kandla Port along the Indian west coast with an annual designed capacity of 2.2 million TEUs, targeted to begin phase 1 operations in 2027. DP World’s 2024 Indian container volumes stood at 5.4 million TEUs, representing approximately 22% of the 24 million TEUs handled nationally during the year, data shows. The company’s investment push is another sign that shipping and logistics multinationals are increasingly betting on India’s potential as an alternative maritime hub. For example, in addition <a href="https://www.joc.com/article/maersk-joins-cma-cgm-in-reflagging-container-ships-in-india-amid-antitrust-pressure-6104614">to vessel reflaggings and shipyard-related interests</a>, Maersk now intends to extend its Indian reach to container manufacturing, historically a Chinese fiefdom. The Danish liner is said to be exploring a partnership with Delhi-based diversified group DCM Shriram for local production and/or sourcing. This seemingly ties in with DCM’s existing joint venture with South Korea’s Hyundai Mobis in that field. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Global terminal and logistics giant DP World is rapidly bolstering its Indian footprint in anticipation of demand growth amid trade diversification moves and other promising regional market dynamics. The Dubai-based company has committed a further $5 billion to expand its integrated supply chain ecosystems in India. The announcement came Thursday during a government-spearheaded maritime conclave in Mumbai. That fresh investment adds to the $3 billion DP World has already poured into the Indian market across marine terminal and multimodal logistics verticals, the company said in a statement. “DP World has been a part of India’s growth story for nearly three decades,” said group Chairman and CEO Sultan Ahmed bin Sulayem. “This new investment, combined with the strategic partnerships, reaffirms our commitment to advancing India’s maritime and logistics industry and cementing the nation’s position in global trade.” The group aims to tap new opportunities in coastal shipping, shipbuilding and repair, and other advanced freight service solutions. Coastal shipping development seems to be an emerging priority on DP World’s growth agenda for India, possibly by adding more locally flagged assets to subsidiary Unifeeder’s fleet. Unifeeder acquired Indian feeder line Shreyas Shipping in 2020. DP World subsidiary Drydocks World also plans to open a ship repair cluster at Cochin, looking beyond the port gates. DP World not alone in new Indian investment The global operator already holds five container terminal concessions across four port locations in India. Additionally, it is building a $550-million box terminal off Kandla Port along the Indian west coast with an annual designed capacity of 2.2 million TEUs, targeted to begin phase 1 operations in 2027. DP World’s 2024 Indian container volumes stood at 5.4 million TEUs, representing approximately 22% of the 24 million TEUs handled nationally during the year, data shows. The company’s investment push is another sign that shipping and logistics multinationals are increasingly betting on India’s potential as an alternative maritime hub. For example, in addition to vessel reflaggings and shipyard-related interests , Maersk now intends to extend its Indian reach to container manufacturing, historically a Chinese fiefdom. The Danish liner is said to be exploring a partnership with Delhi-based diversified group DCM Shriram for local production and/or sourcing. This seemingly ties in with DCM’s existing joint venture with South Korea’s Hyundai Mobis in that field. Contact Bency Mathew at bencyvmathew@gmail.com .

DP World lines up $5 billion investment program for India expansion

<div class="phx-topic abstract-wrapper">ODFL, XPO and Saia reported annualized declines in third-quarter shipments but are positioning themselves for a stronger freight market in 2026. </div>

ODFL, XPO and Saia reported annualized declines in third-quarter shipments but are positioning themselves for a stronger freight market in 2026.

<div class="phx-topic">US less-than-truckload (LTL) providers are pursuing highly individualized paths in an anemic freight market, with shipment volumes rising but still lower than a year ago. Three of the largest LTL carriers this week reported gains in average revenue per hundredweight for the third quarter, a sign that their pricing is not falling despite a weak market. LTL revenue per hundredweight, with or without fuel surcharges, was up 4.7% year over year at Old Dominion Freight Line (ODFL) in the third quarter. At XPO, it rose 5.8% with surcharges and 5.9% without them. Saia reported a 0.5% increase in LTL revenue per hundredweight including surcharges and a 0.1% drop without them. Even with a flatter yield, Saia reported an average contract pricing renewal rate of 5.1% for the quarter. The company recently announced a 5.9% general rate increase (GRI) for non-contract tariff rates, which was effective Oct. 1. ODFL is pursuing a 4.9% non-contract GRI, effective Nov. 3, while LTL sector leader FedEx Freight will seek a 5.9% GRI on Jan. 5. The motor carriers reject claims that LTL carrier pricing discipline is weakening under the pressure of low freight demand. The US long-distance LTL producer price index, a measure of total LTL costs paid by shippers, was up 10.5% year over year in August, the last month for which data is available thanks to the US government shutdown. In discussions with shippers, “the tone is starting to shift,” Mario Harik, CEO of XPO, the fourth-largest US LTL provider, said in an interview. “A lot of customers are concerned about capacity. They can go to a discount carrier, but when the market starts to turn, will they have capacity? More and more customers expect a recovery in 2026.” <h3>Limited expectations </h3>Harik spoke with the Journal of Commerce before XPO’s earnings call with Wall Street analysts Thursday. ODFL, the second-largest US LTL carrier, released earnings Wednesday, and Saia, ranked sixth among LTL carriers by revenue, announced results Thursday. Their results differed, but their expectations were similar. “Demand feels consistent to me, but obviously we haven’t seen the inflection that we’ve all been waiting for,” ODFL CEO Adam Satterfield said Wednesday. “When will the market change? I mean, that’s obviously the big question. I’ve asked ChatGPT that, and it suggests next year. So who knows? We’ll see if AI is right or another economic forecast [is].” Saia’s shipper customers are “incrementally more positive” about prospects for 2026, CEO Frederick Holzgrefe told analysts Thursday. “We’ve got a view of the tariff landscape,” he said. “We’ve got a view of tax policy. We’ve got a view around interest rates. All that is incrementally positive, right? I’m waiting to see it in the numbers.” So far, the numbers are mostly negative in terms of volume. ODFL’s average daily shipment (ADS) count dropped 7.9% year over year in the third quarter. At XPO, the ADS fell 3.5%, while Saia’s shipments dropped 1.9% from a year ago. “We are not yet seeing a demand recovery,” XPO’s Harik said, and he doesn’t expect one in the fourth quarter. “Customers expect the market to be steady” through the end of 2025, he said. “Things aren’t getting better, but they’re not getting worse.” Customers do expect improvement in 2026, Harik said. For one, a drop in the federal funds rate could stimulate industrial demand and more corporate investment. “We have all these tailwinds,” he said. <h3>Established strategies </h3>ODFL, XPO and Saia are taking long-established approaches to the market as they wait for those tailwinds to blow. ODFL’s third-quarter decline in daily shipments was accompanied by a 4.3% annualized drop in revenue to $1.4 billion. The company remains highly profitable despite a 12.2% drop in net profit to $271 million, with a 74.3% operating ratio. ODFL has consistently been willing to protect its bottom line at the expense of top-line revenue, maintaining a premium price to protect profit margin rather than trying to use price to gain market share — a model many LTL carriers are trying to emulate. “We want to win market share; we don’t want to go out and try to take it,” said Satterfield. Saia’s revenue fell 0.3% year over year in the quarter to $839.6 million, while its net profit dropped 6.9% to $86.3 million. Its operating ratio rose slightly to 85.9%. Saia hopes to grow “share of wallet” by gaining new business from existing customers as it realigns its network, which has expanded nationwide with 39 new terminals since 2022, many of them purchased from Yellow. “It’s really not about how quickly we can grow shipment count for the sake of shipment count,” CFO Matthew Batteh said. XPO is adding new customers, onboarding 2,500 small business shippers in the third quarter and 7,500 year to date, Harik said. Those “local” customers now account for 25% of XPO’s LTL revenue, he said. The carrier is also gaining revenue from new premium services launched over the past year that carry a higher price, generating more revenue. XPO’s North American LTL revenue rose 0.3% to $1.3 billion. Operating income for the North American LTL business rose 9.6% to $217 million, although overall net income dropped 13.7% to $82 million. “We’re still in the early innings” of a freight recovery, Harik told analysts. “When the cycle starts turning, we’ll improve even more.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

US less-than-truckload (LTL) providers are pursuing highly individualized paths in an anemic freight market, with shipment volumes rising but still lower than a year ago. Three of the largest LTL carriers this week reported gains in average revenue per hundredweight for the third quarter, a sign that their pricing is not falling despite a weak market. LTL revenue per hundredweight, with or without fuel surcharges, was up 4.7% year over year at Old Dominion Freight Line (ODFL) in the third quarter. At XPO, it rose 5.8% with surcharges and 5.9% without them. Saia reported a 0.5% increase in LTL revenue per hundredweight including surcharges and a 0.1% drop without them. Even with a flatter yield, Saia reported an average contract pricing renewal rate of 5.1% for the quarter. The company recently announced a 5.9% general rate increase (GRI) for non-contract tariff rates, which was effective Oct. 1. ODFL is pursuing a 4.9% non-contract GRI, effective Nov. 3, while LTL sector leader FedEx Freight will seek a 5.9% GRI on Jan. 5. The motor carriers reject claims that LTL carrier pricing discipline is weakening under the pressure of low freight demand. The US long-distance LTL producer price index, a measure of total LTL costs paid by shippers, was up 10.5% year over year in August, the last month for which data is available thanks to the US government shutdown. In discussions with shippers, “the tone is starting to shift,” Mario Harik, CEO of XPO, the fourth-largest US LTL provider, said in an interview. “A lot of customers are concerned about capacity. They can go to a discount carrier, but when the market starts to turn, will they have capacity? More and more customers expect a recovery in 2026.” Limited expectations Harik spoke with the Journal of Commerce before XPO’s earnings call with Wall Street analysts Thursday. ODFL, the second-largest US LTL carrier, released earnings Wednesday, and Saia, ranked sixth among LTL carriers by revenue, announced results Thursday. Their results differed, but their expectations were similar. “Demand feels consistent to me, but obviously we haven’t seen the inflection that we’ve all been waiting for,” ODFL CEO Adam Satterfield said Wednesday. “When will the market change? I mean, that’s obviously the big question. I’ve asked ChatGPT that, and it suggests next year. So who knows? We’ll see if AI is right or another economic forecast [is].” Saia’s shipper customers are “incrementally more positive” about prospects for 2026, CEO Frederick Holzgrefe told analysts Thursday. “We’ve got a view of the tariff landscape,” he said. “We’ve got a view of tax policy. We’ve got a view around interest rates. All that is incrementally positive, right? I’m waiting to see it in the numbers.” So far, the numbers are mostly negative in terms of volume. ODFL’s average daily shipment (ADS) count dropped 7.9% year over year in the third quarter. At XPO, the ADS fell 3.5%, while Saia’s shipments dropped 1.9% from a year ago. “We are not yet seeing a demand recovery,” XPO’s Harik said, and he doesn’t expect one in the fourth quarter. “Customers expect the market to be steady” through the end of 2025, he said. “Things aren’t getting better, but they’re not getting worse.” Customers do expect improvement in 2026, Harik said. For one, a drop in the federal funds rate could stimulate industrial demand and more corporate investment. “We have all these tailwinds,” he said. Established strategies ODFL, XPO and Saia are taking long-established approaches to the market as they wait for those tailwinds to blow. ODFL’s third-quarter decline in daily shipments was accompanied by a 4.3% annualized drop in revenue to $1.4 billion. The company remains highly profitable despite a 12.2% drop in net profit to $271 million, with a 74.3% operating ratio. ODFL has consistently been willing to protect its bottom line at the expense of top-line revenue, maintaining a premium price to protect profit margin rather than trying to use price to gain market share — a model many LTL carriers are trying to emulate. “We want to win market share; we don’t want to go out and try to take it,” said Satterfield. Saia’s revenue fell 0.3% year over year in the quarter to $839.6 million, while its net profit dropped 6.9% to $86.3 million. Its operating ratio rose slightly to 85.9%. Saia hopes to grow “share of wallet” by gaining new business from existing customers as it realigns its network, which has expanded nationwide with 39 new terminals since 2022, many of them purchased from Yellow. “It’s really not about how quickly we can grow shipment count for the sake of shipment count,” CFO Matthew Batteh said. XPO is adding new customers, onboarding 2,500 small business shippers in the third quarter and 7,500 year to date, Harik said. Those “local” customers now account for 25% of XPO’s LTL revenue, he said. The carrier is also gaining revenue from new premium services launched over the past year that carry a higher price, generating more revenue. XPO’s North American LTL revenue rose 0.3% to $1.3 billion. Operating income for the North American LTL business rose 9.6% to $217 million, although overall net income dropped 13.7% to $82 million. “We’re still in the early innings” of a freight recovery, Harik told analysts. “When the cycle starts turning, we’ll improve even more.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Top LTL carriers maintain profit while planning paths to freight recovery

<div class="phx-topic abstract-wrapper">Recent tensions involved CPKC’s opposition to the UP-NS merger, but the battle has morphed into a larger disagreement about poor service on a 300-mile stretch of track in Louisiana and Mississippi known as the Meridian Speedway. </div>

Recent tensions involved CPKC’s opposition to the UP-NS merger, but the battle has morphed into a larger disagreement about poor service on a 300-mile stretch of track in Louisiana and Mississippi known as the Meridian Speedway.

<div class="phx-topic">Canadian Pacific Kansas City (CPKC) is escalating its dispute with rivals Union Pacific Railroad (UP) and Norfolk Southern Railway (NS), taking aim at the two over intermodal service in the US Southeast while reiterating criticism of their proposed merger. CPKC was one of the first railroads to come out against the $85 billion deal between UP and NS, but the battle has morphed into a larger disagreement about poor service on a 300-mile stretch of track in Louisiana and Mississippi known as the <a href="https://www.joc.com/article/cpkc-pushes-back-on-ns-complaint-over-meridian-track-access-6090887">Meridian Speedway</a>. The Meridian Speedway represents the fastest way to route cargo from California to the US Southeast, but intermodal service has deteriorated significantly in 2025. CPKC owns 70% of the joint venture operating the Speedway, shuttling cargo between UP and NS in addition to its own freight in the corridor. NS, which filed a complaint to the US Surface Transportation Board (STB) on Sept. 30, alleges that more than two-thirds of the trains on Meridian in August took longer than the contractually guaranteed 13-hour transit, resulting in a 10% decline in volume as shippers such as FedEx and UPS trucked shipments to avoid the delays. CPKC on Wednesday called the NS complaint a “self-serving narrative” without merit. “There was infrastructure built for 8,500-foot trains, but our predecessors at [Kansas City Southern] allowed NS to run long trains,” CPKC CEO Keith Creel said on the company’s third-quarter earnings call. “That’s what we stopped, and that’s what NS and UP do not like.” UP CEO Jim Vena told the Journal of Commerce Inland Distribution Conference on Oct. 1 that he was unhappy with the restrictions implemented by CPKC. “We started running two trains because we’re not leaving the customer traffic behind,” Vena said at the conference. “[CPKC was] delaying both trains. The amount of delay on the first train was excessive and then our second train sat around for 12, 16, 24 hours at times.” But Creel argued that Meridian’s rail siding — akin to a shoulder on a highway — was not built to handle the 10,000- to 12,000-foot trains routinely delivered by UP and NS. When two trains need to use the same track, the CPKC train is the one parked on the siding because it’s the only one that fits. “Our trains are taking over an 11-hour delay per day to accommodate a longer train. It doesn’t make any sense,” Creel said on the CPKC call. “I’m not going to subsidize NS’ operation, nor am I going to subsidize UP’s operation for their operational synergies at the cost of my service to my customers. I have a responsibility to protect my customers as well. [Meridian is] built to run 8,500-foot trains. That’s what we’re going to do.” CPKC and NS have reached a temporary truce allowing one long eastbound train per day through mid-November, when a new CPKC crew will be added and restrictions return to 8,500 feet. NS agreed to compensate CPKC for delays to its trains. The STB is closed during the government shutdown, preventing any action on the dispute. <h3>CPKC again attacks UP-NS transaction </h3>Creel on Wednesday also elaborated on why CPKC opposes the UP-NS merger, urging the STB not to rush the regulatory process. “I know there’s an echo chamber. I read it, I hear it, I sense it,” Creel said. “I know there’s a lot of invested investors that perhaps want this to be a layup. This is not a layup.” He cautioned that UP must clear a high hurdle to get approval, calling it “a hurdle not even remotely close to being the same” as the lower one applied when Canadian Pacific acquired Kansas City Southern in 2023. Creel said the STB also remembers how UP suffered significant service failures four years ago, and if the deal was approved, UP-NS would control more than 40% of US rail traffic. Creel rejected the idea that the concerns of CPKC, a Canada-based company, will fall on deaf ears in Washington. “One-third of our employees live, work and are taxpaying [citizens] in the United States ... we are undeniably wrapped in the American flag,” he said. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Canadian Pacific Kansas City (CPKC) is escalating its dispute with rivals Union Pacific Railroad (UP) and Norfolk Southern Railway (NS), taking aim at the two over intermodal service in the US Southeast while reiterating criticism of their proposed merger. CPKC was one of the first railroads to come out against the $85 billion deal between UP and NS, but the battle has morphed into a larger disagreement about poor service on a 300-mile stretch of track in Louisiana and Mississippi known as the Meridian Speedway . The Meridian Speedway represents the fastest way to route cargo from California to the US Southeast, but intermodal service has deteriorated significantly in 2025. CPKC owns 70% of the joint venture operating the Speedway, shuttling cargo between UP and NS in addition to its own freight in the corridor. NS, which filed a complaint to the US Surface Transportation Board (STB) on Sept. 30, alleges that more than two-thirds of the trains on Meridian in August took longer than the contractually guaranteed 13-hour transit, resulting in a 10% decline in volume as shippers such as FedEx and UPS trucked shipments to avoid the delays. CPKC on Wednesday called the NS complaint a “self-serving narrative” without merit. “There was infrastructure built for 8,500-foot trains, but our predecessors at [Kansas City Southern] allowed NS to run long trains,” CPKC CEO Keith Creel said on the company’s third-quarter earnings call. “That’s what we stopped, and that’s what NS and UP do not like.” UP CEO Jim Vena told the Journal of Commerce Inland Distribution Conference on Oct. 1 that he was unhappy with the restrictions implemented by CPKC. “We started running two trains because we’re not leaving the customer traffic behind,” Vena said at the conference. “[CPKC was] delaying both trains. The amount of delay on the first train was excessive and then our second train sat around for 12, 16, 24 hours at times.” But Creel argued that Meridian’s rail siding — akin to a shoulder on a highway — was not built to handle the 10,000- to 12,000-foot trains routinely delivered by UP and NS. When two trains need to use the same track, the CPKC train is the one parked on the siding because it’s the only one that fits. “Our trains are taking over an 11-hour delay per day to accommodate a longer train. It doesn’t make any sense,” Creel said on the CPKC call. “I’m not going to subsidize NS’ operation, nor am I going to subsidize UP’s operation for their operational synergies at the cost of my service to my customers. I have a responsibility to protect my customers as well. [Meridian is] built to run 8,500-foot trains. That’s what we’re going to do.” CPKC and NS have reached a temporary truce allowing one long eastbound train per day through mid-November, when a new CPKC crew will be added and restrictions return to 8,500 feet. NS agreed to compensate CPKC for delays to its trains. The STB is closed during the government shutdown, preventing any action on the dispute. CPKC again attacks UP-NS transaction Creel on Wednesday also elaborated on why CPKC opposes the UP-NS merger, urging the STB not to rush the regulatory process. “I know there’s an echo chamber. I read it, I hear it, I sense it,” Creel said. “I know there’s a lot of invested investors that perhaps want this to be a layup. This is not a layup.” He cautioned that UP must clear a high hurdle to get approval, calling it “a hurdle not even remotely close to being the same” as the lower one applied when Canadian Pacific acquired Kansas City Southern in 2023. Creel said the STB also remembers how UP suffered significant service failures four years ago, and if the deal was approved, UP-NS would control more than 40% of US rail traffic. Creel rejected the idea that the concerns of CPKC, a Canada-based company, will fall on deaf ears in Washington. “One-third of our employees live, work and are taxpaying [citizens] in the United States ... we are undeniably wrapped in the American flag,” he said. Contact Ari Ashe at ari.ashe@spglobal.com .

CPKC slams UP, NS on Meridian congestion, merger plans

<div class="phx-topic abstract-wrapper">China-based Cosco’s latest earnings came as Beijing and Washington announced a one-year pause in their reciprocal port fees as part of a broader trade framework that included a reduction in US tariffs on Chinese imports.</div>

China-based Cosco’s latest earnings came as Beijing and Washington announced a one-year pause in their reciprocal port fees as part of a broader trade framework that included a reduction in US tariffs on Chinese imports.

<div class="phx-topic">Plunging freight rates and US tariff policy led to a 56% slump in net profit for Cosco Shipping Holdings in the third quarter, the company said Thursday, as profits fell to $1.3 billion from $3 billion in the prior-year period. Revenue fell 20% to $8.2 billion between July and September, from $10.3 billion a year earlier, the container line and ports group said in a third-quarter report. “In the first three quarters of 2025, affected by the continuous spillover effects caused by [US] tariff policies, rising geopolitical uncertainties and weakening demand for global trade in goods, freight rates in the container shipping market continued to fluctuate,” Cosco said. China-based Cosco’s earnings came as <a href="https://www.joc.com/article/us-china-suspend-reciprocal-port-fees-as-part-of-wider-trade-deal-6105849">Beijing and Washington announced a one-year pause</a> in their reciprocal port fees as part of a broader trade framework that included a reduction in US tariffs on Chinese imports. For the nine months through September, Cosco said net profit fell 29% to $3.8 billion, while revenues slipped 4% to $23.6 billion. Cosco said revenue dropped on all trades except for domestic services, despite an increase in liftings on all services except the trans-Pacific. The worst affected trades were the trans-Pacific, where third-quarter revenue plunged 34% to $2 billion, and Asia-Europe, including the Mediterranean, which saw a 33% fall in revenue to $1.5 billion. Revenue from intra-Asia and Australia trades fell 14% to $1.9 billion in the third quarter. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a2606c91-b30c-4219-b617-9491b44b6af1"></dynamic-object></div>Cosco’s total liftings in the third quarter climbed 5% to 6.9 million TEUs, although the trans-Pacific recorded a 4% fall in container volumes to 1.2 million TEUS. Cosco saw a 3% rise in liftings on Asia-Europe/Mediterranean services to 1 million TEUs, with 2% growth on intra-Asia services to 2.3 million TEUs. Meanwhile, Cosco Shipping Ports contributed $82 million to group net profit in the third quarter and $264 million in the first nine months, up 1% and 20%, respectively, year over year. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Plunging freight rates and US tariff policy led to a 56% slump in net profit for Cosco Shipping Holdings in the third quarter, the company said Thursday, as profits fell to $1.3 billion from $3 billion in the prior-year period. Revenue fell 20% to $8.2 billion between July and September, from $10.3 billion a year earlier, the container line and ports group said in a third-quarter report. “In the first three quarters of 2025, affected by the continuous spillover effects caused by [US] tariff policies, rising geopolitical uncertainties and weakening demand for global trade in goods, freight rates in the container shipping market continued to fluctuate,” Cosco said. China-based Cosco’s earnings came as Beijing and Washington announced a one-year pause in their reciprocal port fees as part of a broader trade framework that included a reduction in US tariffs on Chinese imports. For the nine months through September, Cosco said net profit fell 29% to $3.8 billion, while revenues slipped 4% to $23.6 billion. Cosco said revenue dropped on all trades except for domestic services, despite an increase in liftings on all services except the trans-Pacific. The worst affected trades were the trans-Pacific, where third-quarter revenue plunged 34% to $2 billion, and Asia-Europe, including the Mediterranean, which saw a 33% fall in revenue to $1.5 billion. Revenue from intra-Asia and Australia trades fell 14% to $1.9 billion in the third quarter. Cosco’s total liftings in the third quarter climbed 5% to 6.9 million TEUs, although the trans-Pacific recorded a 4% fall in container volumes to 1.2 million TEUS. Cosco saw a 3% rise in liftings on Asia-Europe/Mediterranean services to 1 million TEUs, with 2% growth on intra-Asia services to 2.3 million TEUs. Meanwhile, Cosco Shipping Ports contributed $82 million to group net profit in the third quarter and $264 million in the first nine months, up 1% and 20%, respectively, year over year. Contact Keith Wallis at keithwallis@hotmail.com .

Cosco cites falling freight rates, tariff woes for 56% drop in Q3 net profits

<div class="phx-topic abstract-wrapper">But there was no indication when the pause would take effect or what would happen to the port fees already paid by ship operators in the two weeks since the US and China imposed the reciprocal levies on Oct. 14.</div>

But there was no indication when the pause would take effect or what would happen to the port fees already paid by ship operators in the two weeks since the US and China imposed the reciprocal levies on Oct. 14.

<div class="phx-topic">The US and China have agreed to pause tit-for-tat port fees for one year as part of wider trade-related measures announced Thursday after talks between presidents Donald Trump and Xi Jinping in South Korea meant to deescalate tensions between the two superpowers. China’s Commerce Ministry confirmed that port levies on US-built, -controlled or -registered ships calling at Chinese ports would be suspended, while a similar measure on Chinese-built or -controlled ships will be lifted by the US. But there was no indication when the pause would take effect or what would happen to the port fees already paid by ship operators in the two weeks since the US and China imposed the reciprocal levies on Oct. 14. “Following the US suspension, China will also suspend its countermeasures against the US for one year,” the Commerce Ministry said in a statement. The ministry also confirmed that Chinese export controls imposed earlier this month on rare earths, used in automobiles, airplanes, mobile phones and other equipment, would also be suspended for a year. The US and China also agreed to expand agricultural trade, with China again ready to buy US soybeans. As part of the broad agreement, the US will “cancel the 10% so-called ‘fentanyl tariffs’ and suspend, for an additional year, the 24% reciprocal tariffs levied on Chinese goods,” the Commerce Ministry added. This will reduce the overall US tariffs on Chinese goods to 47%. The ministry said all the measures were agreed to during economic and trade talks last weekend in Kuala Lumpur, Malaysia, between delegations led by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng. But details were only released Thursday to coincide with the Trump-Xi meeting in Gyeongju, about 43 miles from Busan, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. Commenting on the suspension of reciprocal port fees, Lars Jensen, CEO of consultant Vespucci Maritime and a Journal of Commerce contributor, said ocean carriers are likely to adopt a cautious response to the fee suspensions. “Given this is a time-limited suspension it would likely see shipping lines maintain a deployment stance whereby they, to some degree, still abide by the restrictions and certainly keep a plan for vessel-reshuffling handy,” Jensen said in a LinkedIn post Thursday. “Overall, this does point to some de-escalation in the trade war between the US and China, but there is not necessarily a long-term certainty of the trade environment given that some of these agreements are one-year only,” he added. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

The US and China have agreed to pause tit-for-tat port fees for one year as part of wider trade-related measures announced Thursday after talks between presidents Donald Trump and Xi Jinping in South Korea meant to deescalate tensions between the two superpowers. China’s Commerce Ministry confirmed that port levies on US-built, -controlled or -registered ships calling at Chinese ports would be suspended, while a similar measure on Chinese-built or -controlled ships will be lifted by the US. But there was no indication when the pause would take effect or what would happen to the port fees already paid by ship operators in the two weeks since the US and China imposed the reciprocal levies on Oct. 14. “Following the US suspension, China will also suspend its countermeasures against the US for one year,” the Commerce Ministry said in a statement. The ministry also confirmed that Chinese export controls imposed earlier this month on rare earths, used in automobiles, airplanes, mobile phones and other equipment, would also be suspended for a year. The US and China also agreed to expand agricultural trade, with China again ready to buy US soybeans. As part of the broad agreement, the US will “cancel the 10% so-called ‘fentanyl tariffs’ and suspend, for an additional year, the 24% reciprocal tariffs levied on Chinese goods,” the Commerce Ministry added. This will reduce the overall US tariffs on Chinese goods to 47%. The ministry said all the measures were agreed to during economic and trade talks last weekend in Kuala Lumpur, Malaysia, between delegations led by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng. But details were only released Thursday to coincide with the Trump-Xi meeting in Gyeongju, about 43 miles from Busan, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. Commenting on the suspension of reciprocal port fees, Lars Jensen, CEO of consultant Vespucci Maritime and a Journal of Commerce contributor, said ocean carriers are likely to adopt a cautious response to the fee suspensions. “Given this is a time-limited suspension it would likely see shipping lines maintain a deployment stance whereby they, to some degree, still abide by the restrictions and certainly keep a plan for vessel-reshuffling handy,” Jensen said in a LinkedIn post Thursday. “Overall, this does point to some de-escalation in the trade war between the US and China, but there is not necessarily a long-term certainty of the trade environment given that some of these agreements are one-year only,” he added. Contact Keith Wallis at keithwallis@hotmail.com .

US, China suspend reciprocal port fees as part of wider trade deal

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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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