<div class="phx-topic abstract-wrapper">While Ocean Network Express is waiving detention penalties tied to the coronavirus, other ocean carriers have not shown as much flexibility when cargo owners cannot return empty boxes during the supply chain disruption.</div>

While Ocean Network Express is waiving detention penalties tied to the coronavirus, other ocean carriers have not shown as much flexibility when cargo owners cannot return empty boxes during the supply chain disruption.

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<div>Shippers and truckers are raising the alarm on how blank sailings linked to the coronavirus disease 2019 (COVID-19) will cause a rash of detention penalties between $100 to $200 per day if it remains difficult to return empty containers to terminals in Los Angeles and Long Beach.While Ocean Network Express (ONE) is waiving detention fees, according to a Feb. 25 advisory from the company, other steamship lines haven’t provided such amnesty, say motor carriers. Container lines may be reluctant to waive such fees, considering the volume slump caused by COVID-19 is costing them $300 to 350 million weekly, according to...

Shippers and truckers are raising the alarm on how blank sailings linked to the coronavirus disease 2019 (COVID-19) will cause a rash of detention penalties between $100 to $200 per day if it remains difficult to return empty containers to terminals in Los Angeles and Long Beach. While Ocean Network Express (ONE) is waiving detention fees, according to a Feb. 25 advisory from the company, other steamship lines haven’t provided such amnesty, say motor carriers. Container lines may be reluctant to waive such fees, considering the volume slump caused by COVID-19 is costing them $300 to 350 million weekly, according to consultancy Sea-Intelligence Maritime Consulting. There are limits to the leniency carriers will show, however, with ONE saying it won’t reimburse for storage or escalating fees. That resistance is causing trucker and cargo owner frustration about being penalized for factors they argue are beyond their control. “From an administrative standpoint, the other steamship lines are making it an onerous process to dispute detention/per diem right now,” said Robert Loya, vice president of CMI West, a drayage provider in Southern California owned by NFI Industries. Most of the container terminal operators in the Los Angeles-Long Beach port complex began to manage the return of empty boxes last month in order to avoid yard congestion. “If you fill up a terminal with empties, you don’t have enough space to handle the containers that are coming in. That’s the issue,” said Ed DeNike, president of SSA Containers. Some terminals last month began notifying beneficial cargo owners (BCOs) they would only issue appointments to return empty containers if the trucker retrieved a full container, known as a dual transaction. Other terminals began to refuse returns of all empty containers. Several terminal operators told JOC.com that is necessary because of the reduction of outbound vessel capacity needed to return the empties to Asia, and available terminal space is becoming scarce. Blank sailings have also reduced import volumes so much that work shifts in Los Angeles-Long Beach have been canceled over the past couple of weeks, ostensibly to save on longshore labor costs. According to a schedule of gate closures shared with JOC.com, individual terminals in Los Angeles-Long Beach have announced 25 day or evening work shifts that will be canceled this week from Monday through Friday. The semantics game on fee waivers Photo credit: Noatum Logistics. During the Federal Maritime Commission’s investigation into detention and demurrage, ocean carrier sources told JOC.com it’s common to extend free time when a terminal is completely closed. If a hurricane shuts down a terminal, for example, a BCO shouldn’t lose a free day to pick up or return containers. The coronavirus detention discussion, however, is more complicated because restrictions, such as a dual transaction requirement, are different than closures. Even eliminating one shift isn’t the same as a shutdown; limited access is different than no access. Even if one terminal isn’t accepting an empty, that doesn’t mean an ocean carrier can’t push back on detention. “That assumes it’s the only location taking the empty [box]. If the steamship line gives you three locations and one is closed or not taking the empty, you’ve got two other options,” Loya said. “What is happening right now, though, is the first may not take the empty, the second has no available appointments, and the third requires a dual transaction.” BCOs and truckers can argue that it’s unreasonable to charge detention/per diem. An ocean carrier, however, can counter that drayman has a responsibility to book an appointment before the slots fill up, or to schedule a dual transaction, thus penalties shouldn’t be waived. Address disruptions in service contracts What a BCO can do to dispute detention/per diem penalties depends on the contract. If the ocean carrier bills the motor carrier under merchant haulage, then the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) is an avenue to resolve the dispute. If the ocean carrier bills the BCO under a door delivery, the UIIA doesn’t apply. Lori Fellmer, vice president of logistics and carrier management with BassTech International, recommends BCOs address disruptions in their service contract. Even if the coronavirus is an extraordinary event, there have been enough disruptions in Southern California that a BCO should negotiate the issue. “Not every BCO has the leverage to get language into a contract,” Fellmer said. “But you can have these conversations with your steamship lines, even if it’s not in your contract. Unfortunately, a steamship line can, at any moment, publish something in a tariff that puts the BCO on the hook if all else fails.” Keeping documents is also crucial to fighting a detention/per diem penalty, sources say. They recommend saving emails, taking screenshots if a portal shows no available appointments, and following up phone calls with an email summarizing the contents of the conversation. “We always ask the recipient in a follow-up email to let us know if there is anything we misunderstood,” said Rachael Acker, logistics manager with Wolverine Worldwide, Inc. “That way, both sides have a common understanding of what was discussed on the phone call.” Contact Ari Ashe at ari.ashe@ihsmarkit.com and follow him on Twitter: @arijashe .

North American ports

US truckers, shippers resist coronavirus-linked detention fees

<div class="phx-topic abstract-wrapper">The vagueness of China’s potential retaliation against the US puts not just US-flag vessels under threat, but also any individuals and organizations accused of harming Beijing’s shipping interests.</div>

The vagueness of China’s potential retaliation against the US puts not just US-flag vessels under threat, but also any individuals and organizations accused of harming Beijing’s shipping interests.

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<div class="phx-topic">Halifax — Container lines are bracing for potentially getting caught in the crossfire between China and the United States over new US port fees that will take effect in two weeks unless the White House provides concessions. While ocean carriers, aside from China-based lines, <a href="https://www.joc.com/article/chinese-tonnage-moving-out-of-us-container-trade-ahead-of-new-fees-xeneta-6081320">have made moves to avoid the new fees</a> that start Oct. 14, China’s warning of retaliatory action against the US earlier this week reinjects uncertainty on the US trades. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6090908_0.1.jpg"></img></div>China on Sunday <a href="https://www.joc.com/article/china-flexes-maritime-power-in-response-to-coming-us-port-fee-6088252">implemented changes to its shipping law</a> allowing it to levy its own special fees and restrict vessels of countries accused of targeting its shipping operations. But the amendment doesn’t specify how China would determine whether a ship is considered to originate from the offending country. Such vague language means China could target not just US-flag vessels operated by Matson, but any vessel it determines was receiving US support, executives from two container lines told the Journal of Commerce. The sources, who did not want to be identified, said they expected the Trump administration to grant concessions to China-based carriers Cosco, its subsidiary OOCL and Hong Kong-based nice carrier Hede. However, the scale of the threat to operations and unpredictability of the White House forces all ocean carriers to prepare for the worst. <h3>‘Sky is basically the limit’ for China retaliation </h3>China’s “shot across the bow” in the form of the shipping law change allows the country to also target individuals and organizations, not just container operators, Lars Jensen, maritime analyst and Journal of Commerce contributor, told an industry event in Halifax on Wednesday. “This would impact Matson dramatically, which indirectly, would impact the services between the US mainland and Hawaii, and with the vague language that they reserve the right to go after individuals or organizations, well, then the sky is basically the limit,” Jensen said at the Halifax Supply Chain Forum. Maersk and CMA CGM also operate US-flag fleets. Cosco, OOCL and Hede are subject to higher US port fees than their peers but will remain serving the Asia-US trades. A Hede representative told the Journal of Commerce that reports it was suspending its expedited service were incorrect. Cosco, <a href="https://www.joc.com/article/cosco-says-no-changes-to-us-services-as-new-port-fees-approach-6082151">which told its US customers to expect little change in its services and rates</a>, has removed 52,000 TEUs in China-built tonnage since April and currently has about 215,000 TEUs on capacity deployed on US trades, according to an analysis by benchmarking platform Xeneta. On the Asia-US trade, China-built tonnage accounts for 499,000 TEUs, or 15% of the trade. Cosco and OOCL together handle the largest share of US imports from Asia, shipping nearly 16% of laden Asia imports in August. The US Trade Representative’s port fee plan was unveiled in February, just two months after the office concluded an investigation that determined China unfairly subsidizes its shipbuilding industry. The speed of the new US port fees — in place in less than 10 months — should give the industry pause, particularly in light of the Federal Maritime Commission’s current investigation into abuse of flags of convenience. ”So the question is, then, what action will the US government take? Will we see restrictions facing flag states?,” Jensen said. “We certainly don’t know. But it seems very certain that (the White House will act) at some point during 2026.” Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

Halifax — Container lines are bracing for potentially getting caught in the crossfire between China and the United States over new US port fees that will take effect in two weeks unless the White House provides concessions. While ocean carriers, aside from China-based lines, have made moves to avoid the new fees that start Oct. 14, China’s warning of retaliatory action against the US earlier this week reinjects uncertainty on the US trades. China on Sunday implemented changes to its shipping law allowing it to levy its own special fees and restrict vessels of countries accused of targeting its shipping operations. But the amendment doesn’t specify how China would determine whether a ship is considered to originate from the offending country. Such vague language means China could target not just US-flag vessels operated by Matson, but any vessel it determines was receiving US support, executives from two container lines told the Journal of Commerce. The sources, who did not want to be identified, said they expected the Trump administration to grant concessions to China-based carriers Cosco, its subsidiary OOCL and Hong Kong-based nice carrier Hede. However, the scale of the threat to operations and unpredictability of the White House forces all ocean carriers to prepare for the worst. ‘Sky is basically the limit’ for China retaliation China’s “shot across the bow” in the form of the shipping law change allows the country to also target individuals and organizations, not just container operators, Lars Jensen, maritime analyst and Journal of Commerce contributor, told an industry event in Halifax on Wednesday. “This would impact Matson dramatically, which indirectly, would impact the services between the US mainland and Hawaii, and with the vague language that they reserve the right to go after individuals or organizations, well, then the sky is basically the limit,” Jensen said at the Halifax Supply Chain Forum. Maersk and CMA CGM also operate US-flag fleets. Cosco, OOCL and Hede are subject to higher US port fees than their peers but will remain serving the Asia-US trades. A Hede representative told the Journal of Commerce that reports it was suspending its expedited service were incorrect. Cosco, which told its US customers to expect little change in its services and rates , has removed 52,000 TEUs in China-built tonnage since April and currently has about 215,000 TEUs on capacity deployed on US trades, according to an analysis by benchmarking platform Xeneta. On the Asia-US trade, China-built tonnage accounts for 499,000 TEUs, or 15% of the trade. Cosco and OOCL together handle the largest share of US imports from Asia, shipping nearly 16% of laden Asia imports in August. The US Trade Representative’s port fee plan was unveiled in February, just two months after the office concluded an investigation that determined China unfairly subsidizes its shipbuilding industry. The speed of the new US port fees — in place in less than 10 months — should give the industry pause, particularly in light of the Federal Maritime Commission’s current investigation into abuse of flags of convenience. ”So the question is, then, what action will the US government take? Will we see restrictions facing flag states?,” Jensen said. “We certainly don’t know. But it seems very certain that (the White House will act) at some point during 2026.” Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Container lines

Trans-Pacific

Container Shipping News

Maritime

China’s port fee warning to US puts ocean carriers on edge

<div class="phx-topic abstract-wrapper">The Class I railroad says the real entity behind the complaint is Norfolk Southern’s merger partner Union Pacific, which CPKC says has been delivering trains too long to safely operate. </div>

The Class I railroad says the real entity behind the complaint is Norfolk Southern’s merger partner Union Pacific, which CPKC says has been delivering trains too long to safely operate.

<div class="phx-topic">Canadian Pacific Kansas City (CPKC) shot down a complaint from Norfolk Southern (NS) that alleged CPKC is throttling access on a jointly owned track in the US Southeast, saying NS’ merger partner Union Pacific is ignoring the track’s safety protocols on the length of train blocks. CPKC said in a statement to the Journal of Commerce that it plans a detailed response to a filing NS made Tuesday with the US Surface Transportation Board (STB) regarding operation of <a href="https://www.joc.com/article/a-merged-cp-kcs-would-offer-new-cross-border-intermodal-growth-ramp-5250376">the Meridian Speedway</a>, a 320-mile track between Shreveport, Louisiana. and Meridian, Mississippi. The letter claimed that CPKC, <a href="https://www.joc.com/article/us-regulators-approve-cp-kcs-merger-to-form-first-us-canada-mexico-rail-5192986">the track’s majority owner and operator</a>, is failing to provide on-time service to NS, which has haulage rights on Meridian as its minority owner. It said two-thirds of CPKC trains hauling NS intermodal freight are behind schedule, pushing up to 100,000 loads to trucks. NS is asking the STB to require an action plan from CPKC that will address crew availability and how it will improve train speeds on the Meridian. “There has been a substantial deterioration in intermodal train service ... which has affected traffic to multiple intermodal customers, some of whom have diverted their traffic from rail service to trucks,” NS’ letter said. CPKC said in its statement that it is “preparing a detailed response to refute these misleading claims and representations” and that the railroad “has lived up to its commitments” that were part of the STB’s approval for Canadian Pacific’s takeover of Kansas City Southern. CPKC said it recently told Union Pacific (UP), which also ships freight on Meridian through its interchange agreements with NS, that UP’s train blocks are too long by some 2,500 feet. That length exceeds the design length for sidings on the single-track route, CPKC said. The railroad said that the shorter train lengths are outlined in Meridian’s operating agreement and benefit all customers through faster speeds and reliability, “We understand that delivering shorter trains at Shreveport requires adjustments by UP when it builds it trains out west,” CPKC said. “It is our responsibility in safely and efficiently operating the Speedway to ensure our customers’ interests are weighed and protected fairly as well, not only just what UP believes is in their best interest.” <h3>UPS, FedEx major Meridian customers </h3>Meridian is a key rail gateway to the Southeast, with UPS and FedEx both major customers for eastbound parcel traffic to Atlanta. According to one source familiar with matter, UPS has been having to truck its eastbound parcels since August due to the disruption. Speaking in Chicago Wednesday at the Journal of Commerce Inland Distribution conference, UP Chief Executive Jim Vena said <a href="https://www.joc.com/article/inland-25-ns-merger-wont-limit-access-to-other-railroads-up-ceo-6090216">Meridian was routinely handling train blocks exceeding 11,000 feet under Kansas City Southern</a>. But CPKC has now throttled those blocks down to 8,000 feet. While UP did not raise the issue with the STB because it’s not a party to Meridian’s operation, Vena said his company also addressed the matter in a letter directly to CPKC. He said UP would have more leverage in the matter due to the access it grants CPKC trains on tracks to Mexico. “They [CPKC] need to have a ‘come-to-Jesus’ moment,” Vena said. “All of a sudden you wake and then you tell me that you’re short of crews? Well, you’re short of crews because you decided not to run this 11,000-foot train that you always used to be able to run.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Canadian Pacific Kansas City (CPKC) shot down a complaint from Norfolk Southern (NS) that alleged CPKC is throttling access on a jointly owned track in the US Southeast, saying NS’ merger partner Union Pacific is ignoring the track’s safety protocols on the length of train blocks. CPKC said in a statement to the Journal of Commerce that it plans a detailed response to a filing NS made Tuesday with the US Surface Transportation Board (STB) regarding operation of the Meridian Speedway , a 320-mile track between Shreveport, Louisiana. and Meridian, Mississippi. The letter claimed that CPKC, the track’s majority owner and operator , is failing to provide on-time service to NS, which has haulage rights on Meridian as its minority owner. It said two-thirds of CPKC trains hauling NS intermodal freight are behind schedule, pushing up to 100,000 loads to trucks. NS is asking the STB to require an action plan from CPKC that will address crew availability and how it will improve train speeds on the Meridian. “There has been a substantial deterioration in intermodal train service ... which has affected traffic to multiple intermodal customers, some of whom have diverted their traffic from rail service to trucks,” NS’ letter said. CPKC said in its statement that it is “preparing a detailed response to refute these misleading claims and representations” and that the railroad “has lived up to its commitments” that were part of the STB’s approval for Canadian Pacific’s takeover of Kansas City Southern. CPKC said it recently told Union Pacific (UP), which also ships freight on Meridian through its interchange agreements with NS, that UP’s train blocks are too long by some 2,500 feet. That length exceeds the design length for sidings on the single-track route, CPKC said. The railroad said that the shorter train lengths are outlined in Meridian’s operating agreement and benefit all customers through faster speeds and reliability, “We understand that delivering shorter trains at Shreveport requires adjustments by UP when it builds it trains out west,” CPKC said. “It is our responsibility in safely and efficiently operating the Speedway to ensure our customers’ interests are weighed and protected fairly as well, not only just what UP believes is in their best interest.” UPS, FedEx major Meridian customers Meridian is a key rail gateway to the Southeast, with UPS and FedEx both major customers for eastbound parcel traffic to Atlanta. According to one source familiar with matter, UPS has been having to truck its eastbound parcels since August due to the disruption. Speaking in Chicago Wednesday at the Journal of Commerce Inland Distribution conference, UP Chief Executive Jim Vena said Meridian was routinely handling train blocks exceeding 11,000 feet under Kansas City Southern . But CPKC has now throttled those blocks down to 8,000 feet. While UP did not raise the issue with the STB because it’s not a party to Meridian’s operation, Vena said his company also addressed the matter in a letter directly to CPKC. He said UP would have more leverage in the matter due to the access it grants CPKC trains on tracks to Mexico. “They [CPKC] need to have a ‘come-to-Jesus’ moment,” Vena said. “All of a sudden you wake and then you tell me that you’re short of crews? Well, you’re short of crews because you decided not to run this 11,000-foot train that you always used to be able to run.” Contact Michael Angell at michael.angell@spglobal.com .

Rail News

Intermodal providers

Surface

CPKC pushes back on NS complaint over Meridian track access

<div class="phx-topic abstract-wrapper">The large-scale effort involving the carrier’s time-charter fleet is a tacit acknowledgement of the immense challenges of the energy transition facing the maritime industry.</div>

The large-scale effort involving the carrier’s time-charter fleet is a tacit acknowledgement of the immense challenges of the energy transition facing the maritime industry.

<div class="phx-topic">Maersk on Thursday announced a 200-ship retrofit program of its time-charter fleet to reduce slot costs through improved fuel efficiency and greater carrying capacity, generating cost savings and lowering greenhouse gas emissions. The large-scale effort is a tacit acknowledgement of the immense challenges of the energy transition and the scaling up of alternative fuels necessary to meet the maritime industry’s net-zero targets. “While fuel transition is needed to reach our long-term goal of net-zero emissions by 2040, investments in existing fleet efficiency enhancement technologies is a powerful tool to gain significant emissions reductions in the short term,” Ahmed Hassan, head of asset strategy and strategic partnerships at Maersk, said in a statement. “This strong emphasis on efficiency measures can deliver tangible progress towards our 2030 goal,” Hassan added. “That goes for owned as well as chartered vessels.” More than 1,500 individual retrofit projects involving 50 different shipowners, with another 1,000 projects scheduled for 2027, are aimed at helping the carrier meet its short-term decarbonization goals. Maersk has set a target of a 35% absolute reduction in Scope 1 emissions by 2030 compared with the 2022 baseline year. Maersk did not disclose the cost of the retrofits but said the investments will be split between the carrier and the vessel owners. “Our medium- and long-term chartered fleet makes up a significant proportion of our operations as well as of our total fuel consumption,” Hassan said. “By working closely with our partners, we aim to implement solutions that not only reduce emissions but also enhance the overall competitiveness of our fleet. “Fleet renewal is often seen as new vessels replacing the old, but it is also about ensuring your existing vessels keep their competitive edge,” he added. <h3>Range of solutions rolled out </h3>The scale of Maersk’s project, which covers vessels of different sizes and configurations, requires varying retrofit tools. Many of the 200 vessels being retrofitted will have their bulbous bow replaced to reduce drag and enhance hydrodynamic efficiency, ultimately lowering fuel consumption. Other retrofit solutions include the replacement of propellers that will maximize thrust while minimizing energy loss, reducing reliance on fuel oil-fired boilers, and the installation of shaft generator systems that cut down auxiliary engine usage. Cargo-carrying capacity is also being enhanced through a range of structural and technical improvements, such as elevating the wheelhouse to improve line of sight and increase intake, raising the lashing bridges, strengthening the vessel’s deadweight capacity for deeper drafts, and upgrading both lashing systems and loading computer functionalities. “Many of these ships were designed and constructed at a time when container vessels in general were sailing at faster speeds,” Anda Cristescu, head of chartering and newbuilding at Maersk, said in the carrier’s statement. “To bring down fuel consumption, we have over the years introduced less compressed vessel schedules, but the propellers and bulbs optimized for faster speeds have been kept. There lies a big efficiency potential in replacing them,” she added. Maersk has maintained its fleet at just over 4 million TEUs for several years, a capacity it regards as “optimal.” The carrier last December made a 20-ship order totaling 300,000 TEUs with delivery scheduled for 2028, but said the new vessels will replace older tonnage. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Maersk on Thursday announced a 200-ship retrofit program of its time-charter fleet to reduce slot costs through improved fuel efficiency and greater carrying capacity, generating cost savings and lowering greenhouse gas emissions. The large-scale effort is a tacit acknowledgement of the immense challenges of the energy transition and the scaling up of alternative fuels necessary to meet the maritime industry’s net-zero targets. “While fuel transition is needed to reach our long-term goal of net-zero emissions by 2040, investments in existing fleet efficiency enhancement technologies is a powerful tool to gain significant emissions reductions in the short term,” Ahmed Hassan, head of asset strategy and strategic partnerships at Maersk, said in a statement. “This strong emphasis on efficiency measures can deliver tangible progress towards our 2030 goal,” Hassan added. “That goes for owned as well as chartered vessels.” More than 1,500 individual retrofit projects involving 50 different shipowners, with another 1,000 projects scheduled for 2027, are aimed at helping the carrier meet its short-term decarbonization goals. Maersk has set a target of a 35% absolute reduction in Scope 1 emissions by 2030 compared with the 2022 baseline year. Maersk did not disclose the cost of the retrofits but said the investments will be split between the carrier and the vessel owners. “Our medium- and long-term chartered fleet makes up a significant proportion of our operations as well as of our total fuel consumption,” Hassan said. “By working closely with our partners, we aim to implement solutions that not only reduce emissions but also enhance the overall competitiveness of our fleet. “Fleet renewal is often seen as new vessels replacing the old, but it is also about ensuring your existing vessels keep their competitive edge,” he added. Range of solutions rolled out The scale of Maersk’s project, which covers vessels of different sizes and configurations, requires varying retrofit tools. Many of the 200 vessels being retrofitted will have their bulbous bow replaced to reduce drag and enhance hydrodynamic efficiency, ultimately lowering fuel consumption. Other retrofit solutions include the replacement of propellers that will maximize thrust while minimizing energy loss, reducing reliance on fuel oil-fired boilers, and the installation of shaft generator systems that cut down auxiliary engine usage. Cargo-carrying capacity is also being enhanced through a range of structural and technical improvements, such as elevating the wheelhouse to improve line of sight and increase intake, raising the lashing bridges, strengthening the vessel’s deadweight capacity for deeper drafts, and upgrading both lashing systems and loading computer functionalities. “Many of these ships were designed and constructed at a time when container vessels in general were sailing at faster speeds,” Anda Cristescu, head of chartering and newbuilding at Maersk, said in the carrier’s statement. “To bring down fuel consumption, we have over the years introduced less compressed vessel schedules, but the propellers and bulbs optimized for faster speeds have been kept. There lies a big efficiency potential in replacing them,” she added. Maersk has maintained its fleet at just over 4 million TEUs for several years, a capacity it regards as “optimal.” The carrier last December made a 20-ship order totaling 300,000 TEUs with delivery scheduled for 2028, but said the new vessels will replace older tonnage. Contact Greg Knowler at greg.knowler@spglobal.com .

Maersk launches massive retrofit drive to boost vessel fuel efficiency

<div class="phx-topic abstract-wrapper">Less-than-truckload carriers are holding onto pricing discipline despite low demand, but more opportunities for LTL savings exist, speakers told the Inland ‘25 conference. </div>

Less-than-truckload carriers are holding onto pricing discipline despite low demand, but more opportunities for LTL savings exist, speakers told the Inland ‘25 conference.

<div class="phx-topic">The famed discipline that has driven US less-than-truckload (LTL) pricing higher over the past decade appears to be holding. But some cracks in that pricing wall have been sighted and may be growing as low freight demand puts pressure on carrier profit margins. “The cracks in the wall are there,” Mike Regan, co-founder of TranzAct Technologies, told the Journal of Commerce’s 2025 Inland Distribution Conference in Chicago Tuesday. “We are seeing LTL carriers doing what I call defending their turf in a sea of uncertainty.” In negotiations with LTL trucking companies and shippers, Regan sees more carriers lowering rates in lanes where they need more shipments and density to protect margins. And many carriers have expanded their networks and have more space to fill. “If you have freight in lanes you want to protect, you’re going to see great pricing,” Regan said. “If you have freight in other lanes, you’re going to see different pricing.” He said he has seen one LTL carrier seeking a 5% rate hike accept a 12% rate cut to keep business. “We’re seeing carrier pricing behavior that’s irrational,” Regan said. He expects to see more such behavior as the spinoff of FedEx Freight by FedEx approaches next June. Other speakers at the conference disagreed, saying they see LTL carriers holding a line on pricing, while suggesting shippers that help carriers cut costs will benefit. “The pricing discipline is actually very solid,” said Mich Fabriga, vice president of LTL pricing at AFS Logistics, who noted the pricing floor in LTL is uneven. “One carrier can drop pricing, but that lower rate is actually an increase for another carrier.” Regional LTL carrier A. Duie Pyle is seeing low single-digit increases in contract LTL rates, said John Luciani, COO for LTL solutions. But rising costs put a premium on efficiency. “It’s a race to reduce costs,” Luciani told the conference. Increased use of dimensioning equipment to rebill shipments and new density-based classifications may also impact the cost shippers pay for LTL service, although changes to the LTL freight classification system have not had a major effect on pricing. Any cracks in LTL pricing haven’t shown up in data the US Bureau of Labor Statistics uses to create the long-distance LTL producer price index (PPI). The index, based on final, all-inclusive selling prices paid by shippers, was at a record high of 269 in August. That reading is 10.5% higher year over year and 4.3% higher than in May. Shippers facing such cost hikes — including rates and accessorial charges — need new strategies. Shippers need to “take a step back” and determine what is going to drive carrier behavior going forward, said Regan. “We have a unique opportunity to sit down with carriers, throw out the stagnant procurement model, and come up with something different,” he said. <h3>Ongoing expansion </h3>Pyle, a multiregional carrier covering the Northeast from Maine to Virginia and parts of the Midwest, has been expanding into Ohio this year and plans to keep expanding even though Pyle’s freight volume, year over year, is essentially flat, Luciani said. “We’re seeing the same number of shipments, but shipments are getting smaller,” he said during a panel discussion with Regan and other speakers. “What used to be a 1,100-pound LTL shipment two years ago is now a 950-pound shipment,” he said. It’s a trend that other speakers said will continue as shippers reduce the size of shipments and ship more frequently to meet customer replenishment and inventory needs. However, shipment numbers, not just weights, are down at many LTL carriers. FedEx Freight, the largest US LTL provider, saw its average daily shipment count <a href="https://www.joc.com/article/truckload-carriers-capturing-more-ltl-shipments-fedex-freight-6083463">drop 2.2% year over year</a> and 2.3% from the previous quarter in the quarter that ended Aug. 31. In its most recent earnings report, FedEx Freight highlighted two factors many analysts and executives say are inhibiting LTL growth — <a href="https://www.joc.com/article/manufacturing-malaise-clouds-outlook-for-us-industrial-freight-6001813">softness in US manufacturing</a> and a glut of cheap truckload capacity. Neither problem is expected to fade in the near future. Carriers aren’t retreating on plans to expand their networks, although some may postpone those plans, or portions of them, until later in 2026. Instead, the industry has been building its way back from significant contraction following the collapse of Yellow in 2023. “We’re looking at a functional restructuring of the LTL industry even as we speak,” Regan said. The eventual spinoff of FedEx Freight could accelerate that restructuring. Pyle has seen significant contraction in its home territory in the past decade. Even before Yellow’s collapse, New England Motor Freight, a large regional LTL carrier, <a href="https://www.joc.com/article/nemf-bankruptcy-reveals-ltl-sinkholes-5226845">shut down in 2019</a>. When Yellow <a href="https://www.joc.com/article/us-ltl-trucking-market-still-in-flux-as-freight-shifts-among-carriers-5200601">shut down</a>, so did its northeastern subsidiary, New Penn. That created room for Pyle to grow, and competitive dynamics and customer needs keep Pyle looking for opportunities, Luciani said. The need to cut transit times was a primary factor behind Pyle’s decision to open terminals in Columbus and Toledo, Ohio. “We’re expanding our coverage to compete with two of our regional competitors,” as shippers look for faster ways to move freight from the Midwest to the East, he said. The company is planning to expand terminals in various parts of the Northeast, too. Customers leave carriers no choice. As the use of more sophisticated shipping technologies increases, changing how and when companies ship, carriers need to meet the new stakes, Luciani said. “We’re always looking for long-term partnerships,” he said. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

The famed discipline that has driven US less-than-truckload (LTL) pricing higher over the past decade appears to be holding. But some cracks in that pricing wall have been sighted and may be growing as low freight demand puts pressure on carrier profit margins. “The cracks in the wall are there,” Mike Regan, co-founder of TranzAct Technologies, told the Journal of Commerce’s 2025 Inland Distribution Conference in Chicago Tuesday. “We are seeing LTL carriers doing what I call defending their turf in a sea of uncertainty.” In negotiations with LTL trucking companies and shippers, Regan sees more carriers lowering rates in lanes where they need more shipments and density to protect margins. And many carriers have expanded their networks and have more space to fill. “If you have freight in lanes you want to protect, you’re going to see great pricing,” Regan said. “If you have freight in other lanes, you’re going to see different pricing.” He said he has seen one LTL carrier seeking a 5% rate hike accept a 12% rate cut to keep business. “We’re seeing carrier pricing behavior that’s irrational,” Regan said. He expects to see more such behavior as the spinoff of FedEx Freight by FedEx approaches next June. Other speakers at the conference disagreed, saying they see LTL carriers holding a line on pricing, while suggesting shippers that help carriers cut costs will benefit. “The pricing discipline is actually very solid,” said Mich Fabriga, vice president of LTL pricing at AFS Logistics, who noted the pricing floor in LTL is uneven. “One carrier can drop pricing, but that lower rate is actually an increase for another carrier.” Regional LTL carrier A. Duie Pyle is seeing low single-digit increases in contract LTL rates, said John Luciani, COO for LTL solutions. But rising costs put a premium on efficiency. “It’s a race to reduce costs,” Luciani told the conference. Increased use of dimensioning equipment to rebill shipments and new density-based classifications may also impact the cost shippers pay for LTL service, although changes to the LTL freight classification system have not had a major effect on pricing. Any cracks in LTL pricing haven’t shown up in data the US Bureau of Labor Statistics uses to create the long-distance LTL producer price index (PPI). The index, based on final, all-inclusive selling prices paid by shippers, was at a record high of 269 in August. That reading is 10.5% higher year over year and 4.3% higher than in May. Shippers facing such cost hikes — including rates and accessorial charges — need new strategies. Shippers need to “take a step back” and determine what is going to drive carrier behavior going forward, said Regan. “We have a unique opportunity to sit down with carriers, throw out the stagnant procurement model, and come up with something different,” he said. Ongoing expansion Pyle, a multiregional carrier covering the Northeast from Maine to Virginia and parts of the Midwest, has been expanding into Ohio this year and plans to keep expanding even though Pyle’s freight volume, year over year, is essentially flat, Luciani said. “We’re seeing the same number of shipments, but shipments are getting smaller,” he said during a panel discussion with Regan and other speakers. “What used to be a 1,100-pound LTL shipment two years ago is now a 950-pound shipment,” he said. It’s a trend that other speakers said will continue as shippers reduce the size of shipments and ship more frequently to meet customer replenishment and inventory needs. However, shipment numbers, not just weights, are down at many LTL carriers. FedEx Freight, the largest US LTL provider, saw its average daily shipment count drop 2.2% year over year and 2.3% from the previous quarter in the quarter that ended Aug. 31. In its most recent earnings report, FedEx Freight highlighted two factors many analysts and executives say are inhibiting LTL growth — softness in US manufacturing and a glut of cheap truckload capacity. Neither problem is expected to fade in the near future. Carriers aren’t retreating on plans to expand their networks, although some may postpone those plans, or portions of them, until later in 2026. Instead, the industry has been building its way back from significant contraction following the collapse of Yellow in 2023. “We’re looking at a functional restructuring of the LTL industry even as we speak,” Regan said. The eventual spinoff of FedEx Freight could accelerate that restructuring. Pyle has seen significant contraction in its home territory in the past decade. Even before Yellow’s collapse, New England Motor Freight, a large regional LTL carrier, shut down in 2019 . When Yellow shut down , so did its northeastern subsidiary, New Penn. That created room for Pyle to grow, and competitive dynamics and customer needs keep Pyle looking for opportunities, Luciani said. The need to cut transit times was a primary factor behind Pyle’s decision to open terminals in Columbus and Toledo, Ohio. “We’re expanding our coverage to compete with two of our regional competitors,” as shippers look for faster ways to move freight from the Midwest to the East, he said. The company is planning to expand terminals in various parts of the Northeast, too. Customers leave carriers no choice. As the use of more sophisticated shipping technologies increases, changing how and when companies ship, carriers need to meet the new stakes, Luciani said. “We’re always looking for long-term partnerships,” he said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Inland ‘25: Low demand putting pricing pressure on US LTL carriers

<div class="phx-topic abstract-wrapper">But Union Pacific’s Jim Vena says the cooperation agreements that rival railroads are making to compete with a combined UP-NS don’t yield the same benefits as a merger. </div>

But Union Pacific’s Jim Vena says the cooperation agreements that rival railroads are making to compete with a combined UP-NS don’t yield the same benefits as a merger.

<div class="phx-topic">Chicago — Shippers will still have easy access to other rail networks should Union Pacific’s (UP’s) merger with Norfolk Southern (NS) be completed, according to UP CEO Jim Vena. But Vena, speaking Tuesday at the Journal of Commerce’s Inland Distribution Conference, said such interline partnerships between railroads fail to deliver the same efficiencies as a merger, citing problems that NS is having in a track access agreement with Canadian Pacific Kansas City (CPKC). Vena said he’s confident UP can maintain <a href="https://www.joc.com/article/shippers-logistics-providers-satisfied-with-h1-rail-performance-6063203">its current high satisfaction with intermodal shippers</a> once its merger with NS is approved. While UP’s average 20-hour dwell time for railcars is among the lowest in the industry, Vena said that dwell could drop even further through a coast-to-coast network with NS. He expects overall transit times on many routes will fall by 24 to 48 hours once the merger is approved. “There’s going to be 1,000 truck moves today in Chicago that are going to move containers from our railroad to another one,” Vena told Inland ‘25. “That rubber-tire interchange is gone when you ship on the new Union Pacific. We won’t be stopping the train. We’re going to give you service right through to the end location.” In addition to avoiding interchange delays, a merged rail network will also be able to spread its volumes through more terminals and potentially avoid the congestion issues that periodically hit Chicago. Smaller hubs such as Kansas City can offer faster crew changes, while <a href="https://www.joc.com/article/up-ns-joint-intermodal-service-to-link-west-coast-with-louisville-in-midwest-6080692">opening new destinations such as Louisville</a>. “If that’s the fastest route, we’re going through Chicago,” Vena said. “If the best way is to go through Kansas City and head to the northeast, then we’ll go that way.” UP already offers a coast-to-coast intermodal service through its EMP shared container service with NS and UMAX shared container service with CSX Transportation. Even while a combined UP-NS will have that same service, Vena said his railroad will still offer shippers the option of using UMAX if they choose. “We want to keep the UMAX program,” he said. “There are certain things that are going to be better with the combined UP-NS. But if the customer says I want that service with the CSX and UMAX, that’s what we’ll do.” During a separate panel, CSX Vice President Andrew Johnson said the carrier also remains committed to the UMAX program, citing a recently weekly volume record for UMAX shipments. He said the steel-wheel interchange with CSX in Chicago eliminates hundreds of truck trips. “We are committed to growing the UMAX product regardless of what happens with this merger,” Johnson said. “We will have a rail box product that we’re not walking away from.” <h3>Vena not happy with CPKC-linked NS delays in Southeast </h3>Even with a coast-to-coast network, Vena said there are regions where a combined UP-NS will still need to cooperate with other railroads to reach certain destinations, especially in the Southeast. Vena said UP will steer shippers to the fastest option, even if it involves other railroads. “If freight is headed to Florida, the fastest way and the quickest route is with CSX connecting through New Orleans,” he said. “We’ll make sure we give that option to shippers.” However, Vena said that type of cooperation is not being reciprocated by others. NS shipments to the Southeast market are facing delays on a 320-mile track segment through Mississippi and Louisiana that NS owns with CPKC known as the Meridian Speedway. Vena said CPKC, the track’s majority owner, is currently only allowing 8,000-foot trains to operate on the tracks, rather than the 11,000-foot trains allowed on the tracks under its previous owner, pre-merger Kansas City Southern. The Southeast service is primarily used by large parcel shippers FedEx and UPS to reach Atlanta. Vena said NS runs two trains instead of one to ensure those shipments will not be delayed. While the track access is NS’ problem until the merger is completed, Vena said he sent a letter to CPKC questioning why the limits are in place. And on Tuesday, Norfolk Southern filed a complaint with the Surface Transportation Board (STB), alleging that CPKC is violating commitments it made to regulators when it acquired Kansas City Southern in 2023. “We ran trains for a long time with no major headaches until you get the combination of CP and Kansas City and for some reason, they decided that they couldn’t run an 11,000-foot train even though that’s the commitment they made to the STB,” Vena said. “I’m not happy with it and hopefully they wake up and change their mind and go back to operating the trains the way they were supposed to.” Vena said the track access issue shows the difficulties that railroads have had in executing cooperation agreements. While <a href="https://www.joc.com/article/bnsf-csx-unveil-new-joint-intermodal-lanes-in-aftermath-of-up-ns-merger-6067789">other railroads</a> are marketing new intermodal services through cooperation agreements, Vena said those deals will still be plagued by the different processes and operations of separate railroads. “Those cooperation agreements have never worked out,” he said. CSX’s Johnson, whose company is adding <a href="https://www.joc.com/article/cn-csx-joint-service-to-connect-west-canada-and-nashville-6077903">other intermodal lanes to compete with UP-NS</a>, defended cooperation agreements as an efficient, viable way to link two railroads. “Despite what you heard earlier this morning, interline partnerships do work, they’ve worked for a long, long time, and they will continue to work with whatever happens with this merger,” he said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Chicago — Shippers will still have easy access to other rail networks should Union Pacific’s (UP’s) merger with Norfolk Southern (NS) be completed, according to UP CEO Jim Vena. But Vena, speaking Tuesday at the Journal of Commerce’s Inland Distribution Conference, said such interline partnerships between railroads fail to deliver the same efficiencies as a merger, citing problems that NS is having in a track access agreement with Canadian Pacific Kansas City (CPKC). Vena said he’s confident UP can maintain its current high satisfaction with intermodal shippers once its merger with NS is approved. While UP’s average 20-hour dwell time for railcars is among the lowest in the industry, Vena said that dwell could drop even further through a coast-to-coast network with NS. He expects overall transit times on many routes will fall by 24 to 48 hours once the merger is approved. “There’s going to be 1,000 truck moves today in Chicago that are going to move containers from our railroad to another one,” Vena told Inland ‘25. “That rubber-tire interchange is gone when you ship on the new Union Pacific. We won’t be stopping the train. We’re going to give you service right through to the end location.” In addition to avoiding interchange delays, a merged rail network will also be able to spread its volumes through more terminals and potentially avoid the congestion issues that periodically hit Chicago. Smaller hubs such as Kansas City can offer faster crew changes, while opening new destinations such as Louisville . “If that’s the fastest route, we’re going through Chicago,” Vena said. “If the best way is to go through Kansas City and head to the northeast, then we’ll go that way.” UP already offers a coast-to-coast intermodal service through its EMP shared container service with NS and UMAX shared container service with CSX Transportation. Even while a combined UP-NS will have that same service, Vena said his railroad will still offer shippers the option of using UMAX if they choose. “We want to keep the UMAX program,” he said. “There are certain things that are going to be better with the combined UP-NS. But if the customer says I want that service with the CSX and UMAX, that’s what we’ll do.” During a separate panel, CSX Vice President Andrew Johnson said the carrier also remains committed to the UMAX program, citing a recently weekly volume record for UMAX shipments. He said the steel-wheel interchange with CSX in Chicago eliminates hundreds of truck trips. “We are committed to growing the UMAX product regardless of what happens with this merger,” Johnson said. “We will have a rail box product that we’re not walking away from.” Vena not happy with CPKC-linked NS delays in Southeast Even with a coast-to-coast network, Vena said there are regions where a combined UP-NS will still need to cooperate with other railroads to reach certain destinations, especially in the Southeast. Vena said UP will steer shippers to the fastest option, even if it involves other railroads. “If freight is headed to Florida, the fastest way and the quickest route is with CSX connecting through New Orleans,” he said. “We’ll make sure we give that option to shippers.” However, Vena said that type of cooperation is not being reciprocated by others. NS shipments to the Southeast market are facing delays on a 320-mile track segment through Mississippi and Louisiana that NS owns with CPKC known as the Meridian Speedway. Vena said CPKC, the track’s majority owner, is currently only allowing 8,000-foot trains to operate on the tracks, rather than the 11,000-foot trains allowed on the tracks under its previous owner, pre-merger Kansas City Southern. The Southeast service is primarily used by large parcel shippers FedEx and UPS to reach Atlanta. Vena said NS runs two trains instead of one to ensure those shipments will not be delayed. While the track access is NS’ problem until the merger is completed, Vena said he sent a letter to CPKC questioning why the limits are in place. And on Tuesday, Norfolk Southern filed a complaint with the Surface Transportation Board (STB), alleging that CPKC is violating commitments it made to regulators when it acquired Kansas City Southern in 2023. “We ran trains for a long time with no major headaches until you get the combination of CP and Kansas City and for some reason, they decided that they couldn’t run an 11,000-foot train even though that’s the commitment they made to the STB,” Vena said. “I’m not happy with it and hopefully they wake up and change their mind and go back to operating the trains the way they were supposed to.” Vena said the track access issue shows the difficulties that railroads have had in executing cooperation agreements. While other railroads are marketing new intermodal services through cooperation agreements, Vena said those deals will still be plagued by the different processes and operations of separate railroads. “Those cooperation agreements have never worked out,” he said. CSX’s Johnson, whose company is adding other intermodal lanes to compete with UP-NS , defended cooperation agreements as an efficient, viable way to link two railroads. “Despite what you heard earlier this morning, interline partnerships do work, they’ve worked for a long, long time, and they will continue to work with whatever happens with this merger,” he said. Contact Michael Angell at michael.angell@spglobal.com .

North-American rail

Inland ‘25: NS merger won’t limit access to other railroads: UP CEO

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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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