<div class="phx-topic abstract-wrapper">Current plans call for the development of a 600-meter quay and a 49-acre backup ecosystem able to handle 800,000 TEUs annually.</div>

Current plans call for the development of a 600-meter quay and a 49-acre backup ecosystem able to handle 800,000 TEUs annually.

Feature image

<div class="phx-topic">Bangladeshi shippers long battling supply chain pressures due to creaky port infrastructure and operational inefficiencies could soon find some relief. APM Terminals has been selected to build and operate a $550 million container terminal — named the Laldia Container Terminal — at Chittagong Port, Bangladesh's main cargo gateway, on a 30-year concession, with a provision to extend it further based on performance metrics. Current plans call for the development of a 600-meter quay and a 49-acre backup ecosystem able to handle 800,000 TEUs annually. “This greenfield project enables us to play an active role in supporting the growth of the local manufacturers, exporters, importers and the broader Bangladeshi economy,” AP Moller-Maersk said in a statement. “We are strengthening our commitment to the country with an aim of creating a safe and efficient terminal as well as creating skilled jobs for the future prosperity of the region.” The terminal giant is expected to hold an undisclosed controlling stake in the terminal entity set up with local partner QNS Container Services. Targeted to be operational in 2030, APMT said the new terminal will progressively allow the port to handle ships of up to 6,000-TEU capacity compared with the current 2,800-TEU tonnage limit. Maersk commands about 30% of Bangladeshi containerized trade, aided by an expansive warehousing footprint that includes a 210,000-square-foot facility it opened in Chittagong in May 2023. “The Laldia Container Terminal will usher in a new chapter in our port ecosystem,” said S.M. Moniruzzaman, the Chittagong port chairman. “Through this project, the capacity and efficiency of Chittagong Port will increase significantly, which will make the country’s trade flows more dynamic.” <h3>Shift to landlord model in terminal operations </h3>The public-private-partnership is seemingly a progression of Chittagong's ongoing shift towards a landlord model of operations. While Saudi Arabia-based Red Sea Gateway Terminal (RSGT) recently inked a deal to modernize and operate the port’s Patenga Container Terminal (PCT) on a 22-year concession, negotiations are said to be in an advanced stage on a plan to hand over the operation of Chittagong's New Mooring Container Terminal (NCT) to DP World. Bangladesh's mainstay apparel export trade has had to deal with multiple supply chain challenges in recent years <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fbangladeshs-supply-chains-grind-to-a-halt-amid-political-upheaval-5703092&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C896b1f0b94b84a4faef808de25eec1da%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C638989904550731846%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=nw%2F%2BjUIyxG7YsOJN%2BbH%2FYNI5zT0YrtlLNa7sLSgV03s%3D&amp;reserved=0">due to lingering political unrest and strained bilateral relations with India</a>, putting cross-border transshipment flows in disarray. A steep upward revision in service rates at Chittagong and across inland container depots following recent government tariff policy changes has added to those trade concerns. Chittagong handled 3.2 million TEUs in 2024, up 7.5% year over year, industry data shows. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Bangladeshi shippers long battling supply chain pressures due to creaky port infrastructure and operational inefficiencies could soon find some relief. APM Terminals has been selected to build and operate a $550 million container terminal — named the Laldia Container Terminal — at Chittagong Port, Bangladesh's main cargo gateway, on a 30-year concession, with a provision to extend it further based on performance metrics. Current plans call for the development of a 600-meter quay and a 49-acre backup ecosystem able to handle 800,000 TEUs annually. “This greenfield project enables us to play an active role in supporting the growth of the local manufacturers, exporters, importers and the broader Bangladeshi economy,” AP Moller-Maersk said in a statement. “We are strengthening our commitment to the country with an aim of creating a safe and efficient terminal as well as creating skilled jobs for the future prosperity of the region.” The terminal giant is expected to hold an undisclosed controlling stake in the terminal entity set up with local partner QNS Container Services. Targeted to be operational in 2030, APMT said the new terminal will progressively allow the port to handle ships of up to 6,000-TEU capacity compared with the current 2,800-TEU tonnage limit. Maersk commands about 30% of Bangladeshi containerized trade, aided by an expansive warehousing footprint that includes a 210,000-square-foot facility it opened in Chittagong in May 2023. “The Laldia Container Terminal will usher in a new chapter in our port ecosystem,” said S.M. Moniruzzaman, the Chittagong port chairman. “Through this project, the capacity and efficiency of Chittagong Port will increase significantly, which will make the country’s trade flows more dynamic.” Shift to landlord model in terminal operations The public-private-partnership is seemingly a progression of Chittagong's ongoing shift towards a landlord model of operations. While Saudi Arabia-based Red Sea Gateway Terminal (RSGT) recently inked a deal to modernize and operate the port’s Patenga Container Terminal (PCT) on a 22-year concession, negotiations are said to be in an advanced stage on a plan to hand over the operation of Chittagong's New Mooring Container Terminal (NCT) to DP World. Bangladesh's mainstay apparel export trade has had to deal with multiple supply chain challenges in recent years due to lingering political unrest and strained bilateral relations with India , putting cross-border transshipment flows in disarray. A steep upward revision in service rates at Chittagong and across inland container depots following recent government tariff policy changes has added to those trade concerns. Chittagong handled 3.2 million TEUs in 2024, up 7.5% year over year, industry data shows. Contact Bency Mathew at bencyvmathew@gmail.com .

Port News

Port infrastructure

Marine terminals

International ports

Maritime

APM Terminals to build Bangladesh's deepest container terminal at Chittagong

<div class="phx-topic abstract-wrapper">Europe’s third-largest port offset a sharp drop in US trade with solid increases in imports from China, Malaysia and India, while seeing big gains in intra-Europe volumes. </div>

Europe’s third-largest port offset a sharp drop in US trade with solid increases in imports from China, Malaysia and India, while seeing big gains in intra-Europe volumes.

<div class="phx-topic">The Port of Hamburg Monday reported an 8.4% increase in container volume from January through September as booming Asian imports and intra-Europe shipments brushed off a sharp tariff-hit drop in trade with the US. Europe’s third-largest container port handled 6.3 million TEUs in the first nine months of 2025, with Asian trade rising 11% year over year and trade with Europe up 14%, according to a Port of Hamburg statement. In the same period, container traffic with the US was “affected by complications in trade,” the German hub said, reflected by volumes that declined 23.9% to 395,000 TEUs. “Throughput at the Port of Hamburg remains on a robust course after the third quarter of 2025,” the port said. “While US container transport continued to decline, the trade areas Asia and Europe continued their positive development.” Trade with China has risen steadily through the year; the nine-month volume of 1.8 million TEUs was up 7.9% year over year. Malaysia trade grew 89.8% to 273,000 TEUs, while trade with India was up 45.5% at 214,000 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="55fd340f-6c0a-4a5d-8bf6-4edc81a3d6ca"></dynamic-object></div>The robust demand can be seen in data from Container Trades Statistics (CTS) that shows Asia-Europe volumes from January through September were up 9.8% year over year. In Hamburg’s intra-Europe trade from January through September, Denmark volumes increased 37.1% to 147,000 TEUs, Finland was up 26.5% at 195,000 TEUs and Poland volumes increased 18.9% to 276,000 TEUs. <h3>Slow growth at European rivals </h3>The strong performance of Hamburg contrasted with slower growth at its two larger European rivals, Rotterdam and Antwerp-Bruges. Rotterdam reported <a href="https://www.joc.com/article/asia-europe-ocean-imports-drive-up-rotterdams-nine-month-volume-6105135">a 3% increase in nine-month volume to 10.7 million TEUs</a>, while Antwerp-Bruges saw its volume rise just 1.6% to 10.3 million TEUs in the period. After a solid first half-year, container throughput at Antwerp-Bruges declined 2.4% in the third quarter year over year, with the drop in throughput linked to the normalization of container shipping alliances, the Belgian port noted in a recent operational statement. The port’s market share in the Hamburg–Le Havre range dropped 0.7 percentage points to 29.8% in the first half of 2025, largely because of lack of terminal capacity. Other factors that affected container handling and operations were low container shipping schedule reliability and a series of strikes. Jacques Vandermeiren, CEO of the Port of Antwerp-Bruges, said the decline in market share was mostly a result of congestion in the first half that was driven by a range of factors. “Volumes were sufficient, but available terminal capacity was inadequate,” Vandermeiren said in the port statement. “Rearrangements within shipping alliances also had a temporary impact on the distribution of traffic between ports. We anticipate that our market share will recover as soon as additional capacity becomes available.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The Port of Hamburg Monday reported an 8.4% increase in container volume from January through September as booming Asian imports and intra-Europe shipments brushed off a sharp tariff-hit drop in trade with the US. Europe’s third-largest container port handled 6.3 million TEUs in the first nine months of 2025, with Asian trade rising 11% year over year and trade with Europe up 14%, according to a Port of Hamburg statement. In the same period, container traffic with the US was “affected by complications in trade,” the German hub said, reflected by volumes that declined 23.9% to 395,000 TEUs. “Throughput at the Port of Hamburg remains on a robust course after the third quarter of 2025,” the port said. “While US container transport continued to decline, the trade areas Asia and Europe continued their positive development.” Trade with China has risen steadily through the year; the nine-month volume of 1.8 million TEUs was up 7.9% year over year. Malaysia trade grew 89.8% to 273,000 TEUs, while trade with India was up 45.5% at 214,000 TEUs. The robust demand can be seen in data from Container Trades Statistics (CTS) that shows Asia-Europe volumes from January through September were up 9.8% year over year. In Hamburg’s intra-Europe trade from January through September, Denmark volumes increased 37.1% to 147,000 TEUs, Finland was up 26.5% at 195,000 TEUs and Poland volumes increased 18.9% to 276,000 TEUs. Slow growth at European rivals The strong performance of Hamburg contrasted with slower growth at its two larger European rivals, Rotterdam and Antwerp-Bruges. Rotterdam reported a 3% increase in nine-month volume to 10.7 million TEUs , while Antwerp-Bruges saw its volume rise just 1.6% to 10.3 million TEUs in the period. After a solid first half-year, container throughput at Antwerp-Bruges declined 2.4% in the third quarter year over year, with the drop in throughput linked to the normalization of container shipping alliances, the Belgian port noted in a recent operational statement. The port’s market share in the Hamburg–Le Havre range dropped 0.7 percentage points to 29.8% in the first half of 2025, largely because of lack of terminal capacity. Other factors that affected container handling and operations were low container shipping schedule reliability and a series of strikes. Jacques Vandermeiren, CEO of the Port of Antwerp-Bruges, said the decline in market share was mostly a result of congestion in the first half that was driven by a range of factors. “Volumes were sufficient, but available terminal capacity was inadequate,” Vandermeiren said in the port statement. “Rearrangements within shipping alliances also had a temporary impact on the distribution of traffic between ports. We anticipate that our market share will recover as soon as additional capacity becomes available.” Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Asia-Europe

Container Shipping News

Robust Asia, Europe trade drives up Hamburg's container volumes

<div class="phx-topic abstract-wrapper">The move comes less than two weeks after Democrats were overwhelmingly successful on Election Day, winning a number of key state and local races where affordability and the rising cost of every day products were key issues.</div>

The move comes less than two weeks after Democrats were overwhelmingly successful on Election Day, winning a number of key state and local races where affordability and the rising cost of every day products were key issues.

<div class="phx-topic">The Trump administration late Friday exempted a wide-ranging list of food and agriculture imports from previously imposed tariffs as concerns grow that US consumers are seeing grocery costs rise. The move came via an executive order issued by President Donald Trump that ends the so-called “reciprocal” tariffs first announced in a separate executive order in April. At the time, Trump said those tariffs were required to redress trade imbalances that threatened US national security. The broad exemptions, effective retroactively to Thursday (Nov. 13), cover common products like beef, coffee, bananas and dozens of other agricultural and food products. Trump said he has been advised by officials to ease tariffs on those products, particularly on products not produced in the US. The White House couched the significant rollbacks as an appropriate move in the aftermath of several trade deals with key partners. But the about-face comes less than two weeks after Democrats were overwhelmingly successful on Election Day, winning a number of key state and local races where affordability and the rising cost of every day products were key issues, with opponents of the Trump administration pinning the hikes on tariffs. Separately, US Trade Representative Jamieson Greer said earlier Friday that the administration had negotiated the framework for a deal with Switzerland that would reduce duties on imports from that country to 15%, down from the previous level of 39%. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com.</a></div>

The Trump administration late Friday exempted a wide-ranging list of food and agriculture imports from previously imposed tariffs as concerns grow that US consumers are seeing grocery costs rise. The move came via an executive order issued by President Donald Trump that ends the so-called “reciprocal” tariffs first announced in a separate executive order in April. At the time, Trump said those tariffs were required to redress trade imbalances that threatened US national security. The broad exemptions, effective retroactively to Thursday (Nov. 13), cover common products like beef, coffee, bananas and dozens of other agricultural and food products. Trump said he has been advised by officials to ease tariffs on those products, particularly on products not produced in the US. The White House couched the significant rollbacks as an appropriate move in the aftermath of several trade deals with key partners. But the about-face comes less than two weeks after Democrats were overwhelmingly successful on Election Day, winning a number of key state and local races where affordability and the rising cost of every day products were key issues, with opponents of the Trump administration pinning the hikes on tariffs. Separately, US Trade Representative Jamieson Greer said earlier Friday that the administration had negotiated the framework for a deal with Switzerland that would reduce duties on imports from that country to 15%, down from the previous level of 39%. Contact Eric Johnson at eric.johnson@spglobal.com.

Transport, Trade and Regulation News

Supply chain

White House rolls back tariffs on broad list of food and ag imports

<div class="phx-topic abstract-wrapper">As contract tendering season on the European trades gets underway, carriers are stepping up capacity management efforts to elevate spot rates and better match supply with demand.</div>

As contract tendering season on the European trades gets underway, carriers are stepping up capacity management efforts to elevate spot rates and better match supply with demand.

<div class="phx-topic">The spot market from Asia to North Europe and the Mediterranean is holding on to rate gains made through a series of carrier price increases that have been levied on the trade lanes every two weeks since the beginning of October. With tendering season for long-term rates on the European trades getting underway, the higher prices are being supported by significant capacity withdrawals in the form of blank sailings. “We have seen many times before that successfully implemented rate increases in Q4 have stuck around until year-end, but the impact it has had on contract negotiations is not uniform,” said Peter Sand, chief analyst at rate benchmarking platform Xeneta. He said the short-term market may favor carriers now, but in the coming contract talks there was a 50/50 chance that the long-term rates would also be elevated. “This time around, Xeneta doesn’t expect to see a very strong impact,” Sand added. “The global market conditions are quite simply too weak.” On Asia-North Europe, the four-week weekly capacity rolling average of 320,000 TEUs in the first half of September fell to 266,300 TEUs in the first week of November, a drop of 16.8%, Xeneta data shows. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b07fd015-2b73-4e9d-a61e-e44aaa45715e"></dynamic-object></div>In October, carriers blanked sailings that removed 230,000 TEUs of capacity from the Asia-North Europe trade lane, about 23% of the total capacity, according to Xeneta. November blanks announced so far are already at 110,000 TEUs, with more canceled sailings expected. So far, the capacity management approach pushed by carriers is paying off. Rates increased for the fifth consecutive week as carriers implemented another freight-all-kinds (FAK) price hike this week. The Asia-North Europe spot rate is currently at $2,075 per FEU, up $775 since the beginning of October, while the Asia-Mediterranean rate of $2,550/FEU is up $950 compared with Oct. 1, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. <h3>Signs of rising demand </h3>There are also signs of a pickup in demand through the fourth quarter as shippers build inventories ahead of a late Chinese New Year that will fall in mid-February. “We are hearing that Gemini [Cooperation] is filling all its ships and a lot of space out of Asia is sold out already,” said Antonios Rigalos, managing partner of shipper network ShiftX, at the organization’s beneficial cargo owner (BCO) conference in Hamburg this week. James Huang, head of Unitrans Agency in Shanghai, said at the Hamburg event that the overall Asia-Europe market is “reasonably strong,” and he expected that situation to prevail ahead of Chinese New Year. “Rates will be under pressure because of the capacity coming into the market but carriers are canceling sailings to hold up rates,” Huang said. Reports of recent strong volume are not yet backed up by data for October. The latest volume numbers from Container Trades Statistics showed that demand on Asia-Europe from January through September was up 9.8% year over year. Still, even as carriers try to match supply with demand, they are also contending with continued fleet growth and steadily rising overcapacity. Jan Tiedemann, senior analyst at Alphaliner, said there have been three years of record ship deliveries that have seen net growth in the fleet of more than 2 million TEUs with scrapping virtually non-existent over the past five years. “Next year there will be a slowdown but then in 2027 and 2028 we will once again have record deliveries,” Tiedemann told the Hamburg BCO conference. “It’s going crazy again, and all these ships ordered this year will create a second [delivery] wave in 2028 and 2029.” The order book is currently above 10 million TEUs in capacity, which represents almost one-third of the in-service fleet, according to Alphaliner. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The spot market from Asia to North Europe and the Mediterranean is holding on to rate gains made through a series of carrier price increases that have been levied on the trade lanes every two weeks since the beginning of October. With tendering season for long-term rates on the European trades getting underway, the higher prices are being supported by significant capacity withdrawals in the form of blank sailings. “We have seen many times before that successfully implemented rate increases in Q4 have stuck around until year-end, but the impact it has had on contract negotiations is not uniform,” said Peter Sand, chief analyst at rate benchmarking platform Xeneta. He said the short-term market may favor carriers now, but in the coming contract talks there was a 50/50 chance that the long-term rates would also be elevated. “This time around, Xeneta doesn’t expect to see a very strong impact,” Sand added. “The global market conditions are quite simply too weak.” On Asia-North Europe, the four-week weekly capacity rolling average of 320,000 TEUs in the first half of September fell to 266,300 TEUs in the first week of November, a drop of 16.8%, Xeneta data shows. In October, carriers blanked sailings that removed 230,000 TEUs of capacity from the Asia-North Europe trade lane, about 23% of the total capacity, according to Xeneta. November blanks announced so far are already at 110,000 TEUs, with more canceled sailings expected. So far, the capacity management approach pushed by carriers is paying off. Rates increased for the fifth consecutive week as carriers implemented another freight-all-kinds (FAK) price hike this week. The Asia-North Europe spot rate is currently at $2,075 per FEU, up $775 since the beginning of October, while the Asia-Mediterranean rate of $2,550/FEU is up $950 compared with Oct. 1, according to Platts, a sister company of the Journal of Commerce within S&P Global. Signs of rising demand There are also signs of a pickup in demand through the fourth quarter as shippers build inventories ahead of a late Chinese New Year that will fall in mid-February. “We are hearing that Gemini [Cooperation] is filling all its ships and a lot of space out of Asia is sold out already,” said Antonios Rigalos, managing partner of shipper network ShiftX, at the organization’s beneficial cargo owner (BCO) conference in Hamburg this week. James Huang, head of Unitrans Agency in Shanghai, said at the Hamburg event that the overall Asia-Europe market is “reasonably strong,” and he expected that situation to prevail ahead of Chinese New Year. “Rates will be under pressure because of the capacity coming into the market but carriers are canceling sailings to hold up rates,” Huang said. Reports of recent strong volume are not yet backed up by data for October. The latest volume numbers from Container Trades Statistics showed that demand on Asia-Europe from January through September was up 9.8% year over year. Still, even as carriers try to match supply with demand, they are also contending with continued fleet growth and steadily rising overcapacity. Jan Tiedemann, senior analyst at Alphaliner, said there have been three years of record ship deliveries that have seen net growth in the fleet of more than 2 million TEUs with scrapping virtually non-existent over the past five years. “Next year there will be a slowdown but then in 2027 and 2028 we will once again have record deliveries,” Tiedemann told the Hamburg BCO conference. “It’s going crazy again, and all these ships ordered this year will create a second [delivery] wave in 2028 and 2029.” The order book is currently above 10 million TEUs in capacity, which represents almost one-third of the in-service fleet, according to Alphaliner. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Capacity cuts support series of rate hikes on Asia-Europe ocean trade

<div class="phx-topic abstract-wrapper">The comments from Joe Hinrichs follow a report that CSX’s board of directors was displeased that UP allegedly contacted Hinrichs first about a potential UP-CSX combination and only turned to Norfolk Southern after receiving a tepid response. </div>

The comments from Joe Hinrichs follow a report that CSX’s board of directors was displeased that UP allegedly contacted Hinrichs first about a potential UP-CSX combination and only turned to Norfolk Southern after receiving a tepid response.

<div class="phx-topic">Former CSX CEO Joe Hinrichs, who was ousted from the company in late September, has repudiated a published report claiming that Union Pacific Railroad (UP) reached out to him earlier this year on a possible acquisition before UP hooked up with Norfolk Southern Railway (NS). Hinrichs’ remarks, which came in response <a href="https://www.linkedin.com/posts/ariashe_i-had-a-great-time-with-jim-vena-eric-gehringer-activity-7394791477358379008-F3Km/?utm_source=share&amp;utm_medium=member_desktop&amp;rcm=ACoAAALKEPMBiWV_z6vaO3hg8YwYfGScgW-oeOI">to a LinkedIn post Thursday by a Journal of Commerce editor</a>, follow an Oct. 21 report in <a href="https://www.semafor.com/article/10/21/2025/the-inside-story-of-csxs-ceo-shakeup">online news publication Semafor</a> stating that CSX’s board of directors was displeased that UP CEO Jim Vena allegedly contacted Hinrichs first about a potential UP-CSX combination and only turned to Norfolk Southern after receiving a tepid response from Hinrichs. But Hinrichs denied that version of events via a response to the LinkedIn post. “Jim Vena never reached out to me regarding UP-CSX,” Hinrichs wrote. “Jim and I discussed this very subject [why UP never talked to CSX] after the UP-NS announcement that they were in ‘advanced talks’ as I asked him why they did not. I will keep that conversation private.” CSX announced Hinrich’s dismissal on Sept. 28, just over a month after an activist investor called for him to step down amid competitive pressures brought on by the UP-NS deal, <a href="https://www.joc.com/article/up-confirms-in-advanced-discussions-on-deal-with-norfolk-southern-6049046">which was unveiled in late July</a>. In an <a href="https://www.sec.gov/Archives/edgar/data/100885/000119312525204376/d908896ds4.htm">S-4 filing</a> made with the US Securities and Exchange Commission two weeks prior to Hinrich’s dismissal, UP stated that Vena contacted Hinrichs only after UP was in advanced talks with Norfolk Southern. Hinrichs said the SEC filing accurately captures the chain of events. <h3>No clarity at UP media event </h3>The Journal of Commerce, during a UP-sponsored media event in Chicago on Wednesday, asked Vena to comment on the Semafor report and to clarify which CEO he approached first for a potential merger: Hinrichs at CSX or Norfolk Southern’s Mark George. Vena declined to provide specifics. “We looked at everybody. We looked at the Canadian railroads and we looked at the Eastern railroads,” Vena responded. “I wasn’t in the boardroom at CSX. I have no idea what happened there.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Former CSX CEO Joe Hinrichs, who was ousted from the company in late September, has repudiated a published report claiming that Union Pacific Railroad (UP) reached out to him earlier this year on a possible acquisition before UP hooked up with Norfolk Southern Railway (NS). Hinrichs’ remarks, which came in response to a LinkedIn post Thursday by a Journal of Commerce editor , follow an Oct. 21 report in online news publication Semafor stating that CSX’s board of directors was displeased that UP CEO Jim Vena allegedly contacted Hinrichs first about a potential UP-CSX combination and only turned to Norfolk Southern after receiving a tepid response from Hinrichs. But Hinrichs denied that version of events via a response to the LinkedIn post. “Jim Vena never reached out to me regarding UP-CSX,” Hinrichs wrote. “Jim and I discussed this very subject [why UP never talked to CSX] after the UP-NS announcement that they were in ‘advanced talks’ as I asked him why they did not. I will keep that conversation private.” CSX announced Hinrich’s dismissal on Sept. 28, just over a month after an activist investor called for him to step down amid competitive pressures brought on by the UP-NS deal, which was unveiled in late July . In an S-4 filing made with the US Securities and Exchange Commission two weeks prior to Hinrich’s dismissal, UP stated that Vena contacted Hinrichs only after UP was in advanced talks with Norfolk Southern. Hinrichs said the SEC filing accurately captures the chain of events. No clarity at UP media event The Journal of Commerce, during a UP-sponsored media event in Chicago on Wednesday, asked Vena to comment on the Semafor report and to clarify which CEO he approached first for a potential merger: Hinrichs at CSX or Norfolk Southern’s Mark George. Vena declined to provide specifics. “We looked at everybody. We looked at the Canadian railroads and we looked at the Eastern railroads,” Vena responded. “I wasn’t in the boardroom at CSX. I have no idea what happened there.” Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

North-American rail

Intermodal providers

Surface

Former CSX CEO denies that UP came to him first on potential merger

<div class="phx-topic abstract-wrapper">Remarks from the group’s CFO came as the carrier’s third-quarter financials showed year-over-year declines.</div>

Remarks from the group’s CFO came as the carrier’s third-quarter financials showed year-over-year declines.

<div class="phx-topic">Container shipping is facing a weaker 2026 amid likely lackluster demand, overcapacity and a possible shift of mainline carriers back to the Red Sea and Suez Canal, a top CMA CGM executive said Friday. “We see uncertainty for the coming quarters,” Ramon Fernandez, CMA CGM Group’s chief financial officer, said during an online briefing. “We anticipate a slowdown in global trade and freight rates may continue to normalize.” His remarks coincided with the carrier’s third-quarter financial results, which saw year-over-year declines. While CMA CGM’s shipping division saw a year-over-year decline in the quarter, Fernandez said it was an improvement compared with the second quarter, which was affected by the US-China trade and tariff spat. Fernandez said the carrier’s fourth quarter will not be as strong as the third quarter, even though freight rates have rebounded since China’s Golden Week holidays in early October. Despite concerns about overcapacity, Fernandez said CMA CGM needs new ships to maintain trade growth while investing in dual-fuel vessels to cut emissions. “There is no alternative,” he said. “We need to replace older vessels.” He did not immediately comment on reports that the world’s third-largest carrier signed a deal this week for up to 10 22,000-TEU liquefied natural gas (LNG) dual-fuel ships with China’s Dalian Shipbuilding Industry Co., even though the shipyard confirmed the order. But he said CMA CGM would operate more than 200 dual-fuel ships by 2029, including 160 owned vessels. <h3>French Navy escorting CMA CGM ships in Red Sea </h3>On Red Sea transits, Fernandez confirmed the French Navy is escorting Marseille-based CMA CGM’s ships as part of the security conditions necessary for transiting the Red Sea and Suez Canal while avoiding attacks from Houthi militants operating from Yemen. CMA CGM <a href="https://www.joc.com/article/cma-cgm-alliance-megaships-test-red-sea-waters-on-return-to-asia-6105787">cautiously dipped its propeller back into Red Sea transits</a> earlier this month when the 17,859-TEU CMA CGM Benjamin Franklin became the first ultra‑large container ship to pass through the Red Sea in nearly two years. Sister ship CMA CGM Zheng He is currently transiting the Suez and Red Sea region. Both ships are operating eastbound legs of the carrier’s French Asia Line 1 service, also known as the Ocean Alliance’s NEU4 service. “If the [security] situation gets better, then we will adapt to this environment,” Fernandez said. He would not comment on how the carrier’s partners in the Ocean Alliance, who comprise Cosco Shipping, OOCL and Evergreen Marine, view the possibility of Red Sea transits, only saying: “They make their own choices.” A significant shift of vessels back to transiting the Suez Canal and Red Sea would result in a surge of capacity, depressing freight rates on East-West trades as carriers switched back from longer voyages around southern Africa. Container ship diversions away from the Red Sea began in late 2023 following the first Houthi attacks soon after the start of the Israel-Hamas war, soaking up between 8% and 12% of global tonnage — depending on varying estimates from analysts and carriers — due to the longer transits. Peter Sand, chief analyst at online benchmarking platform Xeneta, said global freight rates are already forecast to fall by up to 25% next year even without a return to Red Sea transits. Speculation that carriers will return to the shorter Suez Canal route has increased since Houthi rebels in Yemen announced a ceasefire on shipping last week, <a href="https://www.joc.com/article/houthi-pause-on-shipping-attacks-lowers-tensions-but-risk-remains-6114790">but risks remain</a>. <h3>Terminal deals </h3>Fernandez, meanwhile, told the briefing that CMA CGM would continue to develop its terminal and logistics businesses. On Thursday, <a href="https://www.joc.com/article/cma-cgm-revives-talks-for-ownership-stake-in-hamburg-terminal-alphaliner-6105199">the carrier confirmed the signing of a term sheet to take a 20% stake in Eurogate Container Terminal Hamburg (CTH)</a>, a deal it expected to complete in the first half of next year. CTH has a current capacity of 4 million TEUs, but a planned expansion project will add 3,500 feet of quay wall and 94 acres of yard space to increase capacity to 6 million TEUs. CMA CGM will also acquire Freightliner UK Intermodal Logistics, one of Britain’s rail operators, in a transaction expected to be finalized in early 2026 subject to regulatory approvals. CEVA Logistics has also completed the acquisition of Borusan Lojistik, a major logistics player in Turkey. Fernandez’s comments came after the shipping, logistics, air cargo and media group reported Friday a 73% drop in third-quarter net income to $749 million, down from $2.7 billion in the prior year. Revenue fell 11% to $14 billion. Shipping saw a 17% drop in third-quarter revenue to $9 billion against $10.8 billion a year earlier. Earnings before interest, tax, depreciation and amortization (EBITDA) fell 49% to $2.2 billion from the third quarter of 2024. Liftings rose 2.3% to 6.2 million TEUs year over year as CMA CGM focused on the “development of its inter-regional and south-south trades,” Fernandez said, without giving further details. Third-quarter revenue from the logistics division slipped 5% to $4.8 billion, while EBITDA fell 7% to $459 million. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Container shipping is facing a weaker 2026 amid likely lackluster demand, overcapacity and a possible shift of mainline carriers back to the Red Sea and Suez Canal, a top CMA CGM executive said Friday. “We see uncertainty for the coming quarters,” Ramon Fernandez, CMA CGM Group’s chief financial officer, said during an online briefing. “We anticipate a slowdown in global trade and freight rates may continue to normalize.” His remarks coincided with the carrier’s third-quarter financial results, which saw year-over-year declines. While CMA CGM’s shipping division saw a year-over-year decline in the quarter, Fernandez said it was an improvement compared with the second quarter, which was affected by the US-China trade and tariff spat. Fernandez said the carrier’s fourth quarter will not be as strong as the third quarter, even though freight rates have rebounded since China’s Golden Week holidays in early October. Despite concerns about overcapacity, Fernandez said CMA CGM needs new ships to maintain trade growth while investing in dual-fuel vessels to cut emissions. “There is no alternative,” he said. “We need to replace older vessels.” He did not immediately comment on reports that the world’s third-largest carrier signed a deal this week for up to 10 22,000-TEU liquefied natural gas (LNG) dual-fuel ships with China’s Dalian Shipbuilding Industry Co., even though the shipyard confirmed the order. But he said CMA CGM would operate more than 200 dual-fuel ships by 2029, including 160 owned vessels. French Navy escorting CMA CGM ships in Red Sea On Red Sea transits, Fernandez confirmed the French Navy is escorting Marseille-based CMA CGM’s ships as part of the security conditions necessary for transiting the Red Sea and Suez Canal while avoiding attacks from Houthi militants operating from Yemen. CMA CGM cautiously dipped its propeller back into Red Sea transits earlier this month when the 17,859-TEU CMA CGM Benjamin Franklin became the first ultra‑large container ship to pass through the Red Sea in nearly two years. Sister ship CMA CGM Zheng He is currently transiting the Suez and Red Sea region. Both ships are operating eastbound legs of the carrier’s French Asia Line 1 service, also known as the Ocean Alliance’s NEU4 service. “If the [security] situation gets better, then we will adapt to this environment,” Fernandez said. He would not comment on how the carrier’s partners in the Ocean Alliance, who comprise Cosco Shipping, OOCL and Evergreen Marine, view the possibility of Red Sea transits, only saying: “They make their own choices.” A significant shift of vessels back to transiting the Suez Canal and Red Sea would result in a surge of capacity, depressing freight rates on East-West trades as carriers switched back from longer voyages around southern Africa. Container ship diversions away from the Red Sea began in late 2023 following the first Houthi attacks soon after the start of the Israel-Hamas war, soaking up between 8% and 12% of global tonnage — depending on varying estimates from analysts and carriers — due to the longer transits. Peter Sand, chief analyst at online benchmarking platform Xeneta, said global freight rates are already forecast to fall by up to 25% next year even without a return to Red Sea transits. Speculation that carriers will return to the shorter Suez Canal route has increased since Houthi rebels in Yemen announced a ceasefire on shipping last week, but risks remain . Terminal deals Fernandez, meanwhile, told the briefing that CMA CGM would continue to develop its terminal and logistics businesses. On Thursday, the carrier confirmed the signing of a term sheet to take a 20% stake in Eurogate Container Terminal Hamburg (CTH) , a deal it expected to complete in the first half of next year. CTH has a current capacity of 4 million TEUs, but a planned expansion project will add 3,500 feet of quay wall and 94 acres of yard space to increase capacity to 6 million TEUs. CMA CGM will also acquire Freightliner UK Intermodal Logistics, one of Britain’s rail operators, in a transaction expected to be finalized in early 2026 subject to regulatory approvals. CEVA Logistics has also completed the acquisition of Borusan Lojistik, a major logistics player in Turkey. Fernandez’s comments came after the shipping, logistics, air cargo and media group reported Friday a 73% drop in third-quarter net income to $749 million, down from $2.7 billion in the prior year. Revenue fell 11% to $14 billion. Shipping saw a 17% drop in third-quarter revenue to $9 billion against $10.8 billion a year earlier. Earnings before interest, tax, depreciation and amortization (EBITDA) fell 49% to $2.2 billion from the third quarter of 2024. Liftings rose 2.3% to 6.2 million TEUs year over year as CMA CGM focused on the “development of its inter-regional and south-south trades,” Fernandez said, without giving further details. Third-quarter revenue from the logistics division slipped 5% to $4.8 billion, while EBITDA fell 7% to $459 million. Contact Keith Wallis at keithwallis@hotmail.com .

CMA CGM expects softer 2026 due to trade, rate and Red Sea uncertainties

<div class="phx-topic abstract-wrapper">If the proposed Union Pacific–Norfolk Southern merger proceeds, the balance of power inside a little-known cooperative that serves as the industry’s shared equipment pool could shift dramatically.</div>

If the proposed Union Pacific–Norfolk Southern merger proceeds, the balance of power inside a little-known cooperative that serves as the industry’s shared equipment pool could shift dramatically.

<div class="phx-topic">When your railroad says “no cars available,” the problem usually isn’t a shortage. It’s a cooperative most shippers have never heard of — one that controls nearly every intermodal container, autorack and flatcar in North America. And if the proposed Union Pacific (UP)–Norfolk Southern (NS) merger proceeds, the balance of power inside that cooperative could shift dramatically. That cooperative is TTX Company. While shippers and unions debate potential service disruptions and job losses from the $85 billion merger announced in July, a more fundamental question has gone unasked: What happens when one railroad becomes the dominant voice in the industry’s shared equipment pool? <h3>The system you didn’t know existed </h3>TTX manages approximately 177,000 well cars, flats, autoracks and boxcars, representing about $17 billion in assets. It’s a neutral pool owned collectively by the Class I railroads, operating under Surface Transportation Board (STB) oversight since 1974. The concept is simple: Competing railroads share rolling stock rather than hoarding it. When a car finishes one move, it can be loaded again immediately, regardless of whose track it’s on next. This model has saved the industry billions in duplicate investment and given shippers a measure of reliability in an otherwise fragmented system. Cars flow to demand, not ownership. Repairs are standardized. Procurement is centralized. Until now, no single railroad has had enough control to tilt the playing field. <h3>Why the merger changes everything </h3>The combined Union Pacific–Norfolk Southern network would span nearly 60% of US rail route miles across 43 states, likely making them TTX’s largest shareholder by a significant margin. On paper, neutrality is guaranteed through the STB’s pooling agreement. In practice, concentration of influence can change incentives subtly, but powerfully. Who prioritizes which lanes for car replacement? Who decides where limited heavy-duty flats or autoracks are deployed first? When I was at Maersk negotiating large-scale rail contracts, we constantly ran into a black hole of visibility. Equipment was technically available, but no one could pinpoint where it was or who controlled the next move. The pooling model made coordination possible, but it also made accountability diffuse. Now imagine that opacity combined with ownership concentration. A railroad controlling the largest stake in TTX doesn’t need to explicitly starve competitors of equipment. It just needs to optimize for its own network first. Repairs get prioritized in its lanes. New equipment gets spec’d for its corridors. Allocation algorithms favor its terminals. The result isn’t dramatic — it’s death by a thousand micro-decisions that tilt velocity in one direction. <h3>What gravity looks like </h3>Every time a major shipper changes carriers, the math inside the TTX pool shifts. Steel doesn’t teleport. Cars must physically migrate through the network, a process that can take weeks. Shortages often follow commercial wins because the new carrier gains the freight before it gains the equipment. Even in a neutral pool, gravity takes time to reset. Post-merger, that shock absorption could become selective. If car allocation subtly favors the combined UP-NS lanes, competitors lose not just freight; they lose the equipment velocity needed to compete for the next contract. <h3>What the STB should do </h3>The STB received formal notice of the merger on July 30, 2025. The railroads plan to file their full application by Jan. 29, 2026, triggering a 16-month statutory review. The STB has broad authority to preserve equilibrium through independent TTX governance, fleet-allocation audits and service-performance metrics tied to pooling access. Whether those powers are used will determine if TTX remains the stabilizer it was built to be, or becomes another lever of competitive advantage hidden inside consolidation. The 1996 Union Pacific-Southern Pacific merger produced what the head of the nation’s largest rail union called a “massive meltdown.” Service disruptions lasted months. The STB should apply those lessons to equipment pooling now, before approval — not after the damage is done. <h3>What shippers should ask now </h3>Most customers never deal directly with TTX, but they feel its influence in every service metric. Don’t wait until after the merger is approved. Start asking pointed questions now: How do you measure car velocity in my lanes? Who controls the pool cars that serve my freight? What protections ensure neutrality if ownership concentration shifts? If your railroad can’t answer clearly, you’re not buying transportation, you’re buying uncertainty. <h3>The bottom line </h3>TTX doesn’t appear in marketing campaigns, but its model — shared steel, shared access — keeps the industry balanced. The merger debate has focused on jobs, rates and service promises. But the real test will be whether a system designed for competition can survive when one player holds the dominant stake. Because when the pool tips, everyone feels it. And once gravity shifts, it doesn’t shift back. Paul Tonsager has held executive roles at Maersk, CN Rail, CN Worldwide, Coyote (RXO), and Patriot Rail. He is the founder of Integrated Multimodal Solutions LLC and author of the Substack newsletter Signals &amp; Switches. Contact him at  <a href="mailto:paul.tonsager@multimodalsolutions.io">paul.tonsager@multimodalsolutions.io</a>. </div>

When your railroad says “no cars available,” the problem usually isn’t a shortage. It’s a cooperative most shippers have never heard of — one that controls nearly every intermodal container, autorack and flatcar in North America. And if the proposed Union Pacific (UP)–Norfolk Southern (NS) merger proceeds, the balance of power inside that cooperative could shift dramatically. That cooperative is TTX Company. While shippers and unions debate potential service disruptions and job losses from the $85 billion merger announced in July, a more fundamental question has gone unasked: What happens when one railroad becomes the dominant voice in the industry’s shared equipment pool? The system you didn’t know existed TTX manages approximately 177,000 well cars, flats, autoracks and boxcars, representing about $17 billion in assets. It’s a neutral pool owned collectively by the Class I railroads, operating under Surface Transportation Board (STB) oversight since 1974. The concept is simple: Competing railroads share rolling stock rather than hoarding it. When a car finishes one move, it can be loaded again immediately, regardless of whose track it’s on next. This model has saved the industry billions in duplicate investment and given shippers a measure of reliability in an otherwise fragmented system. Cars flow to demand, not ownership. Repairs are standardized. Procurement is centralized. Until now, no single railroad has had enough control to tilt the playing field. Why the merger changes everything The combined Union Pacific–Norfolk Southern network would span nearly 60% of US rail route miles across 43 states, likely making them TTX’s largest shareholder by a significant margin. On paper, neutrality is guaranteed through the STB’s pooling agreement. In practice, concentration of influence can change incentives subtly, but powerfully. Who prioritizes which lanes for car replacement? Who decides where limited heavy-duty flats or autoracks are deployed first? When I was at Maersk negotiating large-scale rail contracts, we constantly ran into a black hole of visibility. Equipment was technically available, but no one could pinpoint where it was or who controlled the next move. The pooling model made coordination possible, but it also made accountability diffuse. Now imagine that opacity combined with ownership concentration. A railroad controlling the largest stake in TTX doesn’t need to explicitly starve competitors of equipment. It just needs to optimize for its own network first. Repairs get prioritized in its lanes. New equipment gets spec’d for its corridors. Allocation algorithms favor its terminals. The result isn’t dramatic — it’s death by a thousand micro-decisions that tilt velocity in one direction. What gravity looks like Every time a major shipper changes carriers, the math inside the TTX pool shifts. Steel doesn’t teleport. Cars must physically migrate through the network, a process that can take weeks. Shortages often follow commercial wins because the new carrier gains the freight before it gains the equipment. Even in a neutral pool, gravity takes time to reset. Post-merger, that shock absorption could become selective. If car allocation subtly favors the combined UP-NS lanes, competitors lose not just freight; they lose the equipment velocity needed to compete for the next contract. What the STB should do The STB received formal notice of the merger on July 30, 2025. The railroads plan to file their full application by Jan. 29, 2026, triggering a 16-month statutory review. The STB has broad authority to preserve equilibrium through independent TTX governance, fleet-allocation audits and service-performance metrics tied to pooling access. Whether those powers are used will determine if TTX remains the stabilizer it was built to be, or becomes another lever of competitive advantage hidden inside consolidation. The 1996 Union Pacific-Southern Pacific merger produced what the head of the nation’s largest rail union called a “massive meltdown.” Service disruptions lasted months. The STB should apply those lessons to equipment pooling now, before approval — not after the damage is done. What shippers should ask now Most customers never deal directly with TTX, but they feel its influence in every service metric. Don’t wait until after the merger is approved. Start asking pointed questions now: How do you measure car velocity in my lanes? Who controls the pool cars that serve my freight? What protections ensure neutrality if ownership concentration shifts? If your railroad can’t answer clearly, you’re not buying transportation, you’re buying uncertainty. The bottom line TTX doesn’t appear in marketing campaigns, but its model — shared steel, shared access — keeps the industry balanced. The merger debate has focused on jobs, rates and service promises. But the real test will be whether a system designed for competition can survive when one player holds the dominant stake. Because when the pool tips, everyone feels it. And once gravity shifts, it doesn’t shift back. Paul Tonsager has held executive roles at Maersk, CN Rail, CN Worldwide, Coyote (RXO), and Patriot Rail. He is the founder of Integrated Multimodal Solutions LLC and author of the Substack newsletter Signals & Switches. Contact him at   paul.tonsager@multimodalsolutions.io .

UP-NS merger could mean new dominant voice inside rail industry cooperative

<div class="phx-topic abstract-wrapper">The LTL world of 2025 does not reward those who guess, but rather those who know — and knowing begins with visibility. </div>

The LTL world of 2025 does not reward those who guess, but rather those who know — and knowing begins with visibility.

<div class="phx-topic">The US less-than-truckload (LTL) sector stands at a critical crossroads. Faced with depressed demand, high operating costs, economic uncertainty and rising customer expectations, LTL carriers, brokers and shippers are under mounting pressure to do more with less. Efficiency, accuracy and transparency have never been more vital. Even as some aspects of LTL have modernized, persistent blind spots still drain time, revenue and customer satisfaction. Accessorial management and location visibility remain at the heart of operational performance and profitability in the LTL sector, and companies must solve these challenges to thrive in this freight environment. Accessorial charges are often treated as the fine print of freight, but their financial impact is anything but small. These additional fees, covering services such as liftgate usage, residential delivery, limited-access sites and inside delivery are frequently not accounted for until after a delivery is completed. At that point, shippers receive unexpected invoices, brokers scramble to reconcile charges, and carriers are left fielding disputes that strain valuable relationships and negatively impact their bottom line. Without an accurate, upfront method of identifying potential accessorials, companies lose control over cost predictability. This unpredictability does more than damage budgets. It undermines long-term rate negotiations and muddies performance metrics such as cost per shipment and gross margin. Billing disputes over accessorials can also slow down cash flow and stretch out time-to-payment cycles. As the logistics sector faces tighter margins and rising customer expectations, these seemingly minor charges can add up to major financial consequences. Location data is another underestimated factor that directly impacts LTL performance. While most transportation management systems (TMSs) offer basic shipment tracking, they often lack granular location insights. This includes data points such as whether a site is residential or commercial, whether there is dock access or a forklift onsite, or if the delivery site has limited hours or requires specialized entry. These details may seem minor, but their absence leads to service mismatches, re-delivery attempts, extended dwell times and more accessorial charges. For example, failing to flag a residential delivery that requires a liftgate can result in a surprise fee and an unhappy customer. A shipment bound for a military base or an airport without the right equipment or credentials can create costly delays and failed deliveries. Inaccurate or incomplete location information does more than increase costs — it erodes operational agility. <h3>Technology can ease challenges </h3>The good news is that technology now exists to solve these challenges at scale. New platforms that leverage AI, machine learning and geospatial data are transforming how logistics professionals manage LTL freight. These tools can identify potential accessorial charges before the freight is tendered, analyze delivery site characteristics in real time and deliver a unified accessorial view across all stakeholders. By automating accessorial identification during order entry and integrating precise location attributes such as limited access, loading dock availability, forklifts on site or gated entry, these platforms allow teams to move from reactive firefighting to proactive planning. With real-time alerts and API integrations that connect directly into a TMS, shippers, brokers and carriers can operate from a shared source of accessorial truth. The impact of smarter accessorial identification and location visibility delivers measurable results. Companies that have adopted these advanced solutions have reported a 75% reduction in unexpected accessorial fees, leading to cleaner invoices and faster dispute resolution. Customers have also seen improved on-time in-full (OTIF) performance, driving higher customer satisfaction and stronger service-level agreement (SLA) compliance. This shift is particularly timely in 2025, as the LTL industry grapples with economic volatility, rising operating costs and major classification changes. Freight volumes are inconsistent, carriers are prioritizing profitability over market share, and the new National Motor Freight Traffic Association density-based classification system is forcing shippers to re-evaluate how they package and price freight. In this environment, hidden costs such as accessorials and inefficiencies tied to poor location visibility can erode already thin margins. With shifting demand, cost inflation and operational headwinds, the ability to forecast costs, identify risks and plan accordingly has become a key competitive advantage. In the past, accessorial management and granular location visibility may have been viewed as optional enhancements. Today, they are essential for any company that relies on LTL shipping as a core part of its logistics strategy. When customer expectations are rising and disruptions are the new norm, having visibility into every shipment detail and every delivery site is table stakes. The LTL world of 2025 does not reward those who guess. It rewards those who know, and knowing begins with visibility. North Winship is president of Shiplify. Contact him at <a href="mailto:northw@shiplify.com">northw@shiplify.com</a>. Bart De Muynck is a strategic advisor for Drewry. Contact him at <a href="mailto:bart@bartdemuynck.com">bart@bartdemuynck.com</a>. </div>

The US less-than-truckload (LTL) sector stands at a critical crossroads. Faced with depressed demand, high operating costs, economic uncertainty and rising customer expectations, LTL carriers, brokers and shippers are under mounting pressure to do more with less. Efficiency, accuracy and transparency have never been more vital. Even as some aspects of LTL have modernized, persistent blind spots still drain time, revenue and customer satisfaction. Accessorial management and location visibility remain at the heart of operational performance and profitability in the LTL sector, and companies must solve these challenges to thrive in this freight environment. Accessorial charges are often treated as the fine print of freight, but their financial impact is anything but small. These additional fees, covering services such as liftgate usage, residential delivery, limited-access sites and inside delivery are frequently not accounted for until after a delivery is completed. At that point, shippers receive unexpected invoices, brokers scramble to reconcile charges, and carriers are left fielding disputes that strain valuable relationships and negatively impact their bottom line. Without an accurate, upfront method of identifying potential accessorials, companies lose control over cost predictability. This unpredictability does more than damage budgets. It undermines long-term rate negotiations and muddies performance metrics such as cost per shipment and gross margin. Billing disputes over accessorials can also slow down cash flow and stretch out time-to-payment cycles. As the logistics sector faces tighter margins and rising customer expectations, these seemingly minor charges can add up to major financial consequences. Location data is another underestimated factor that directly impacts LTL performance. While most transportation management systems (TMSs) offer basic shipment tracking, they often lack granular location insights. This includes data points such as whether a site is residential or commercial, whether there is dock access or a forklift onsite, or if the delivery site has limited hours or requires specialized entry. These details may seem minor, but their absence leads to service mismatches, re-delivery attempts, extended dwell times and more accessorial charges. For example, failing to flag a residential delivery that requires a liftgate can result in a surprise fee and an unhappy customer. A shipment bound for a military base or an airport without the right equipment or credentials can create costly delays and failed deliveries. Inaccurate or incomplete location information does more than increase costs — it erodes operational agility. Technology can ease challenges The good news is that technology now exists to solve these challenges at scale. New platforms that leverage AI, machine learning and geospatial data are transforming how logistics professionals manage LTL freight. These tools can identify potential accessorial charges before the freight is tendered, analyze delivery site characteristics in real time and deliver a unified accessorial view across all stakeholders. By automating accessorial identification during order entry and integrating precise location attributes such as limited access, loading dock availability, forklifts on site or gated entry, these platforms allow teams to move from reactive firefighting to proactive planning. With real-time alerts and API integrations that connect directly into a TMS, shippers, brokers and carriers can operate from a shared source of accessorial truth. The impact of smarter accessorial identification and location visibility delivers measurable results. Companies that have adopted these advanced solutions have reported a 75% reduction in unexpected accessorial fees, leading to cleaner invoices and faster dispute resolution. Customers have also seen improved on-time in-full (OTIF) performance, driving higher customer satisfaction and stronger service-level agreement (SLA) compliance. This shift is particularly timely in 2025, as the LTL industry grapples with economic volatility, rising operating costs and major classification changes. Freight volumes are inconsistent, carriers are prioritizing profitability over market share, and the new National Motor Freight Traffic Association density-based classification system is forcing shippers to re-evaluate how they package and price freight. In this environment, hidden costs such as accessorials and inefficiencies tied to poor location visibility can erode already thin margins. With shifting demand, cost inflation and operational headwinds, the ability to forecast costs, identify risks and plan accordingly has become a key competitive advantage. In the past, accessorial management and granular location visibility may have been viewed as optional enhancements. Today, they are essential for any company that relies on LTL shipping as a core part of its logistics strategy. When customer expectations are rising and disruptions are the new norm, having visibility into every shipment detail and every delivery site is table stakes. The LTL world of 2025 does not reward those who guess. It rewards those who know, and knowing begins with visibility. North Winship is president of Shiplify. Contact him at northw@shiplify.com . Bart De Muynck is a strategic advisor for Drewry. Contact him at bart@bartdemuynck.com .

Trucking News

Visibility transforming accessorial and location insights in LTL shipping

Year-over-year % change

PIERS containerized US import and export volumes is the transportation industry’s largest US waterborne trade data set, covering all US ports. Every day, the PIERS team processes an average of about 60,000 bills of lading filed with US Customs and Border Protection (CBP) and integrates this transactional trade data with standardized company details. PIERS contains US trade data going back to 2003. [PIERS](https://www.spglobal.com/marketintelligence/en/mi/products/piers.html)

Asia to US container volumes (PIERS)

PIERS Total US imports from Asia (Monthly) (year-over-year change) Gateway

<div class="phx-topic abstract-wrapper">The carrier’s CEO also confirmed Gemini is mulling a price premium, which he forecast would be a “small three-digit number per TEU” to reflect the inventory cost savings customers achieve through the alliance’s consistent on-time delivery.</div>

The carrier’s CEO also confirmed Gemini is mulling a price premium, which he forecast would be a “small three-digit number per TEU” to reflect the inventory cost savings customers achieve through the alliance’s consistent on-time delivery.

<div class="phx-topic">Hapag-Lloyd is refining the Gemini Cooperation hub-and-spoke network with partner Maersk that will likely see some extra port calls and others removed from Gemini services, CEO Rolf Habben Jansen said Thursday. The review is considering “what worked well and what could be improved,” Habben Jansen said during the carrier’s third-quarter results briefing. “We’ll wrap up the review, then ... inform the market, but don’t expect anything revolutionary,” he said. The changes will “strengthen reliability and unlock cost efficiencies, with full cost savings run rate expected by 2026,” Hapag-Lloyd said. Habben Jansen also confirmed <a href="https://www.joc.com/article/value-unlocked-by-gemini-will-clear-path-for-premium-charge-maersk-ceo-6111339">Gemini is mulling a price premium</a>, which he forecast would be a “small three-digit number per TEU” to reflect the inventory cost savings customers achieve through Gemini’s consistent on-time delivery. The CEO gave no further details of the changes, but said Gemini has consistently delivered monthly schedule reliability of 89% to 95% since its launch in February, citing data from Sea-Intelligence Maritime Analysis. That is significantly better than its closest competitors, who had schedule reliability ranging between 70% and 80% from February through September. “We are very happy with [Gemini],” Habben Jansen said. “We hit 90% schedule reliability almost from Day 1.” <h3>Possible expansion of hub-and-spoke model </h3>That reliability helped drive an above-market increase in container volumes for Hapag-Lloyd, growing 9% to 10.2 million TEUs in the first nine months of the year. Most of the increase was on trans-Pacific and Asia-Europe trades, while volumes on the trans-Atlantic, Africa and inter-regional trades were stable. Highlighting the gains, the carrier said trans-Pacific volumes rose to 3 million TEUs this year through September, from 2.5 million TEUs in the same period last year, while Asia-Europe liftings climbed to 3 million TEUs from 2.7 million TEUs. Habben Jansen said while the focus over the next 12 to 18 months is to improve reliability of the current Gemini network schedule, there is potential to adopt Gemini’s hub-and-spoke model in other trades. He said if Hapag-Lloyd did decide to expand the concept, it would have to assess how and where it could be done and “with whom.” Habben Jansen also confirmed the carrier is in talks to add 22 ships to its fleet that would be a mix of newbuildings ordered direct from shipyards and vessels taken on long-term charter. “Final negotiations are going on” with details likely confirmed “in the next 30 days,” he said. The new ships would vary between 1,800 TEUs, 3,000 TEUs and 4,500 TEUs and replace older, less fuel-efficient vessels in the carrier’s 305-strong fleet. “We have a fair number of ships that are reaching 25 years,” Habben Jansen said. The carrier is also planning to continue expanding its terminals business “through acquisitions and synergies with our liner business,” although Habben Jansen said there were no further details to give at this stage. The CEO forecast full-year 2025 revenues at $23 billion. “Rates came back from early October,” he said. “In the last couple of weeks, bookings have been really strong.” Habben Jansen, meanwhile, said the carrier had no immediate plans to return to the Red Sea and Suez Canal region following the latest Houthi ceasefire. “We always said we’d like to see some stability,” he said, pointing out that previous ceasefires were later broken. Hapag-Lloyd saw group net profit fall 86% to $161 million in the third quarter, down from $1.1 billion in the prior year. Revenue fell 11% to $5.4 billion in the third quarter, with liner shipping contributing $5.3 billion and terminals $130 million. The carrier’s average freight rate in the quarter slipped to $1,391 per TEU from $1,612/TEU. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Hapag-Lloyd is refining the Gemini Cooperation hub-and-spoke network with partner Maersk that will likely see some extra port calls and others removed from Gemini services, CEO Rolf Habben Jansen said Thursday. The review is considering “what worked well and what could be improved,” Habben Jansen said during the carrier’s third-quarter results briefing. “We’ll wrap up the review, then ... inform the market, but don’t expect anything revolutionary,” he said. The changes will “strengthen reliability and unlock cost efficiencies, with full cost savings run rate expected by 2026,” Hapag-Lloyd said. Habben Jansen also confirmed Gemini is mulling a price premium , which he forecast would be a “small three-digit number per TEU” to reflect the inventory cost savings customers achieve through Gemini’s consistent on-time delivery. The CEO gave no further details of the changes, but said Gemini has consistently delivered monthly schedule reliability of 89% to 95% since its launch in February, citing data from Sea-Intelligence Maritime Analysis. That is significantly better than its closest competitors, who had schedule reliability ranging between 70% and 80% from February through September. “We are very happy with [Gemini],” Habben Jansen said. “We hit 90% schedule reliability almost from Day 1.” Possible expansion of hub-and-spoke model That reliability helped drive an above-market increase in container volumes for Hapag-Lloyd, growing 9% to 10.2 million TEUs in the first nine months of the year. Most of the increase was on trans-Pacific and Asia-Europe trades, while volumes on the trans-Atlantic, Africa and inter-regional trades were stable. Highlighting the gains, the carrier said trans-Pacific volumes rose to 3 million TEUs this year through September, from 2.5 million TEUs in the same period last year, while Asia-Europe liftings climbed to 3 million TEUs from 2.7 million TEUs. Habben Jansen said while the focus over the next 12 to 18 months is to improve reliability of the current Gemini network schedule, there is potential to adopt Gemini’s hub-and-spoke model in other trades. He said if Hapag-Lloyd did decide to expand the concept, it would have to assess how and where it could be done and “with whom.” Habben Jansen also confirmed the carrier is in talks to add 22 ships to its fleet that would be a mix of newbuildings ordered direct from shipyards and vessels taken on long-term charter. “Final negotiations are going on” with details likely confirmed “in the next 30 days,” he said. The new ships would vary between 1,800 TEUs, 3,000 TEUs and 4,500 TEUs and replace older, less fuel-efficient vessels in the carrier’s 305-strong fleet. “We have a fair number of ships that are reaching 25 years,” Habben Jansen said. The carrier is also planning to continue expanding its terminals business “through acquisitions and synergies with our liner business,” although Habben Jansen said there were no further details to give at this stage. The CEO forecast full-year 2025 revenues at $23 billion. “Rates came back from early October,” he said. “In the last couple of weeks, bookings have been really strong.” Habben Jansen, meanwhile, said the carrier had no immediate plans to return to the Red Sea and Suez Canal region following the latest Houthi ceasefire. “We always said we’d like to see some stability,” he said, pointing out that previous ceasefires were later broken. Hapag-Lloyd saw group net profit fall 86% to $161 million in the third quarter, down from $1.1 billion in the prior year. Revenue fell 11% to $5.4 billion in the third quarter, with liner shipping contributing $5.3 billion and terminals $130 million. The carrier’s average freight rate in the quarter slipped to $1,391 per TEU from $1,612/TEU. Contact Keith Wallis at keithwallis@hotmail.com .

Trans-Pacific

Hapag-Lloyd refining Gemini network to improve efficiencies: Habben Jansen

<div class="phx-topic abstract-wrapper">With 196,000 TEUs of new capacity added to its fleet, the latest orders mean Evergreen will leapfrog both Hapag-Lloyd and Ocean Network Express in global capacity to become the fifth-largest container line.</div>

With 196,000 TEUs of new capacity added to its fleet, the latest orders mean Evergreen will leapfrog both Hapag-Lloyd and Ocean Network Express in global capacity to become the fifth-largest container line.

<div class="phx-topic">Taiwan’s Evergreen Marine on Wednesday confirmed an order for 14 14,000-TEU liquefied natural gas (LNG)-fueled ships that could cost almost $3 billion, with the vessels split between South Korea’s Samsung Heavy Industries and China’s Guangzhou Shipyard International. Evergreen said each ship would cost between $175 million and $205 million, taking the total cost to between $2.45 billion and $2.9 million. The two shipbuilders will construct seven vessels each. The deals were approved at an Evergreen Marine (Asia) board of directors meeting Wednesday, the carrier said in a filing to the Taiwan stock exchange, ending recent speculation by shipbrokers that Evergreen was readying a massive order. With 196,000 TEUs of new capacity added to its fleet, the latest orders mean Evergreen will leapfrog both Hapag-Lloyd and Ocean Network Express in global capacity to become the fifth-largest container line, up from seventh place. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="82b6ff12-d7ca-420a-abbe-7b9998b29e56"></dynamic-object></div>Fleet data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows the latest deals boost Evergreen’s total capacity to 2,747,549 TEUs, against 2,606,972 TEUs for ONE and 2,360,562 TEUs for Hapag-Lloyd. The orders also reinforce LNG as the next generation fuel of choice for carriers, increasing the total number of LNG-fueled container ships on order to about 380, according to S&amp;P Global Market Intelligence. <h3>Q3 financials up from Q2, but down from year-ago period </h3>The green light for the new ships came as Evergreen, together with Taiwan’s two other top carriers — Yang Ming Marine Transport and Wan Hai Lines — announced a rebound in third-quarter net profits compared with the second quarter, buoyed by a recovery in freight rates in July as shippers frontloaded cargo to beat US tariffs. But third-quarter financials were lower across the board compared with the 2024 third quarter. Evergreen led the pack with net profit of $700 million, the carrier said in a separate exchange filing Wednesday, up from $403 million in the second quarter but down 63% compared with $1.9 billion in the third quarter last year. Operating revenues fell 34% to $3.1 billion in the third quarter from $4.7 billion a year earlier, the filing showed. Yang Ming Marine saw third-quarter net profit climb to $194 million, the carrier said Wednesday, up from $31 million in the second quarter but down from $890 million in the third quarter last year. Third-quarter operating revenues of almost $1.4 billion were similar to the previous two quarters, although down 39% from $2.3 billion in the prior year. “Compared with the same period in 2024, weaker freight rates resulted in softer profitability,” Yang Ming said in a statement. Yang Ming, the only one of the three carriers to comment on the market, said it was hopeful that the temporary pause in US-China tariff tensions “may help stimulate pre-Lunar New Year shipment demand on trans-Pacific routes.” The carrier said the intra-Asia and Middle East markets were “expected to remain steady, supported by stable demand.” “Despite persistent global trade policy uncertainty and elevated geopolitical risks, Yang Ming has continued to maintain schedule reliability and enhance operational efficiency, supporting steady business performance,” it said. Meanwhile, intra-Asia-focused Wan Hai Lines saw third-quarter net profit climb to $363 million, up from $41 million in the second quarter but almost half the $600 million reported in the third quarter last year. Operating revenues in the third quarter were $1.1 billion, in line with the previous two quarters but down 35% from $1.7 billion a year earlier. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Taiwan’s Evergreen Marine on Wednesday confirmed an order for 14 14,000-TEU liquefied natural gas (LNG)-fueled ships that could cost almost $3 billion, with the vessels split between South Korea’s Samsung Heavy Industries and China’s Guangzhou Shipyard International. Evergreen said each ship would cost between $175 million and $205 million, taking the total cost to between $2.45 billion and $2.9 million. The two shipbuilders will construct seven vessels each. The deals were approved at an Evergreen Marine (Asia) board of directors meeting Wednesday, the carrier said in a filing to the Taiwan stock exchange, ending recent speculation by shipbrokers that Evergreen was readying a massive order. With 196,000 TEUs of new capacity added to its fleet, the latest orders mean Evergreen will leapfrog both Hapag-Lloyd and Ocean Network Express in global capacity to become the fifth-largest container line, up from seventh place. Fleet data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows the latest deals boost Evergreen’s total capacity to 2,747,549 TEUs, against 2,606,972 TEUs for ONE and 2,360,562 TEUs for Hapag-Lloyd. The orders also reinforce LNG as the next generation fuel of choice for carriers, increasing the total number of LNG-fueled container ships on order to about 380, according to S&P Global Market Intelligence. Q3 financials up from Q2, but down from year-ago period The green light for the new ships came as Evergreen, together with Taiwan’s two other top carriers — Yang Ming Marine Transport and Wan Hai Lines — announced a rebound in third-quarter net profits compared with the second quarter, buoyed by a recovery in freight rates in July as shippers frontloaded cargo to beat US tariffs. But third-quarter financials were lower across the board compared with the 2024 third quarter. Evergreen led the pack with net profit of $700 million, the carrier said in a separate exchange filing Wednesday, up from $403 million in the second quarter but down 63% compared with $1.9 billion in the third quarter last year. Operating revenues fell 34% to $3.1 billion in the third quarter from $4.7 billion a year earlier, the filing showed. Yang Ming Marine saw third-quarter net profit climb to $194 million, the carrier said Wednesday, up from $31 million in the second quarter but down from $890 million in the third quarter last year. Third-quarter operating revenues of almost $1.4 billion were similar to the previous two quarters, although down 39% from $2.3 billion in the prior year. “Compared with the same period in 2024, weaker freight rates resulted in softer profitability,” Yang Ming said in a statement. Yang Ming, the only one of the three carriers to comment on the market, said it was hopeful that the temporary pause in US-China tariff tensions “may help stimulate pre-Lunar New Year shipment demand on trans-Pacific routes.” The carrier said the intra-Asia and Middle East markets were “expected to remain steady, supported by stable demand.” “Despite persistent global trade policy uncertainty and elevated geopolitical risks, Yang Ming has continued to maintain schedule reliability and enhance operational efficiency, supporting steady business performance,” it said. Meanwhile, intra-Asia-focused Wan Hai Lines saw third-quarter net profit climb to $363 million, up from $41 million in the second quarter but almost half the $600 million reported in the third quarter last year. Operating revenues in the third quarter were $1.1 billion, in line with the previous two quarters but down 35% from $1.7 billion a year earlier. Contact Keith Wallis at keithwallis@hotmail.com .

Evergreen says will spend almost $3 billion on 14 new LNG-fueled ships

<div class="phx-topic abstract-wrapper">While premium pricing has long been elusive for ocean carriers, the cost benefits from the Maersk-Hapag Lloyd alliance may prove to be enough to justify overhauling the network.</div>

While premium pricing has long been elusive for ocean carriers, the cost benefits from the Maersk-Hapag Lloyd alliance may prove to be enough to justify overhauling the network.

<div class="phx-topic">More than nine months into the Gemini Cooperation’s journey — possibly the most radical reinvention ever attempted in container shipping — two things are becoming clear: stated schedule reliability that is well above industry averages has largely been achieved and doubts about its sustainability are fading. A hub-and-spoke network able to keep feeder ships filled is lowering costs, mimicking the common-feeder model in place for decades in Asia and other regions. The one big unanswered question that remains is whether, or to what extent, premium revenue can be extracted from shippers by Gemini partners Maersk and Hapag-Lloyd. Maersk, <a href="https://www.joc.com/article/value-unlocked-by-gemini-will-clear-path-for-premium-charge-maersk-ceo-6111339">during its third-quarter earnings release last week</a>, provided the clearest picture to date on that very question. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6113169_0.1.jpg"></img></div>CEO Vincent Clerc said he believed premium pricing is coming, but that trust in Gemini’s reliability needed to be more firmly entrenched beyond the standards established thus far. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” Clerc told analysts. But a tantalizing possibility may be emerging: It might not actually matter. The reason is that while premium pricing has long been elusive for ocean carriers, the cost benefits from Gemini may themselves prove to be enough to justify overhauling the network. Maersk cited annualized cost savings of $720 million to $950 million through the implementation of the Gemini network as a result of lower bunker costs and greater asset utilization. This is coming from higher utilization of ships and shorter sailing distances, which resulted in 6% higher capacity but 3% lower total fuel consumption. Running ships at a higher utilization in the network, Clerc said, allows the carrier to transport more volumes at the same capacity. Carriers such as Singapore-based X-Press Feeders and Bengal Tiger Line handle large carriers’ feeder volumes by keeping costs lower through higher utilization than the carriers have been able to achieve on their own. On the cost structure, “we are opening up a gap now with Gemini that is going to be ... quite handy, especially in the current rate environment,” Clerc said. “It’s a pretty significant lever that we have unlocked here,” stemming in part from using “fit-for-purpose shuttles rather than underutilized mainliners,” he added. The revenue side is less clear. It is unclear how much of a premium revenue opportunity exists by offering high schedule reliability. In prior eras, carriers invested significant sums in fuel to stay on schedule only for a weak market to undercut their argument for premium rates. Indeed, whether investing more in fuel to keep ships on schedule, deploying 53-foot ocean containers to allow customs to load more cargo or departing every day on time as was envisioned in Daily Maersk, there has been little in terms of premium pricing over a period of decades to show for it. <h3>Premium appetites? </h3>A market exists; the question is how big. The existence of high-reliability, premium-priced services offered by Matson, UWL, Zim Integrated Shipping Services and Tailwind on the Asia-Europe trade point to a segment of the shipper market able to capture supply chain value from reliable schedules. Also, in limited cases, some large shippers have shown themselves willing to pay a premium for preferential stowage, leading to expedited movement of containers off the ship and through the terminal, including for so-called peel-off stacks. The Gemini partners, however, believe a fundamental value proposition continues to exist by enabling customers to slash costs by reducing inventory. “I am optimistic that if someone can remove $10 million a day and [they can] save two weeks in that, that I can get a premium,” Stuart Sandlin, Hapag-Lloyd’s regional president for the Americas, told the South Carolina International Trade Conference on Oct. 29. “I candidly think [Gemini is] a premium product and should command some sort of premium price.” As Clerc put it on the earnings call: “Today, every customer has a buffer stock and that reliability needs to unlock a reduction of that buffer stock. They need to trust that [Gemini] has weathered sufficient ups and downs and is steady [so] that they can take out some of that buffer stock. And if they do, they pocket that savings and then we can capture some of it in form of a premium.” For both Maersk and Hapag-Lloyd, the Gemini network fits respective strategies and approaches to the market. It harks back to hub-and-spoke networks of an earlier day and is true to Maersk’s historic DNA of running on time, a source of tension within the former 2M alliance with Mediterranean Shipping Co. For Hapag-Lloyd, it can’t promote itself as the best major carrier in terms of service quality, its stated objective, and not run on time. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>.</div>

More than nine months into the Gemini Cooperation’s journey — possibly the most radical reinvention ever attempted in container shipping — two things are becoming clear: stated schedule reliability that is well above industry averages has largely been achieved and doubts about its sustainability are fading. A hub-and-spoke network able to keep feeder ships filled is lowering costs, mimicking the common-feeder model in place for decades in Asia and other regions. The one big unanswered question that remains is whether, or to what extent, premium revenue can be extracted from shippers by Gemini partners Maersk and Hapag-Lloyd. Maersk, during its third-quarter earnings release last week , provided the clearest picture to date on that very question. CEO Vincent Clerc said he believed premium pricing is coming, but that trust in Gemini’s reliability needed to be more firmly entrenched beyond the standards established thus far. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” Clerc told analysts. But a tantalizing possibility may be emerging: It might not actually matter. The reason is that while premium pricing has long been elusive for ocean carriers, the cost benefits from Gemini may themselves prove to be enough to justify overhauling the network. Maersk cited annualized cost savings of $720 million to $950 million through the implementation of the Gemini network as a result of lower bunker costs and greater asset utilization. This is coming from higher utilization of ships and shorter sailing distances, which resulted in 6% higher capacity but 3% lower total fuel consumption. Running ships at a higher utilization in the network, Clerc said, allows the carrier to transport more volumes at the same capacity. Carriers such as Singapore-based X-Press Feeders and Bengal Tiger Line handle large carriers’ feeder volumes by keeping costs lower through higher utilization than the carriers have been able to achieve on their own. On the cost structure, “we are opening up a gap now with Gemini that is going to be ... quite handy, especially in the current rate environment,” Clerc said. “It’s a pretty significant lever that we have unlocked here,” stemming in part from using “fit-for-purpose shuttles rather than underutilized mainliners,” he added. The revenue side is less clear. It is unclear how much of a premium revenue opportunity exists by offering high schedule reliability. In prior eras, carriers invested significant sums in fuel to stay on schedule only for a weak market to undercut their argument for premium rates. Indeed, whether investing more in fuel to keep ships on schedule, deploying 53-foot ocean containers to allow customs to load more cargo or departing every day on time as was envisioned in Daily Maersk, there has been little in terms of premium pricing over a period of decades to show for it. Premium appetites? A market exists; the question is how big. The existence of high-reliability, premium-priced services offered by Matson, UWL, Zim Integrated Shipping Services and Tailwind on the Asia-Europe trade point to a segment of the shipper market able to capture supply chain value from reliable schedules. Also, in limited cases, some large shippers have shown themselves willing to pay a premium for preferential stowage, leading to expedited movement of containers off the ship and through the terminal, including for so-called peel-off stacks. The Gemini partners, however, believe a fundamental value proposition continues to exist by enabling customers to slash costs by reducing inventory. “I am optimistic that if someone can remove $10 million a day and [they can] save two weeks in that, that I can get a premium,” Stuart Sandlin, Hapag-Lloyd’s regional president for the Americas, told the South Carolina International Trade Conference on Oct. 29. “I candidly think [Gemini is] a premium product and should command some sort of premium price.” As Clerc put it on the earnings call: “Today, every customer has a buffer stock and that reliability needs to unlock a reduction of that buffer stock. They need to trust that [Gemini] has weathered sufficient ups and downs and is steady [so] that they can take out some of that buffer stock. And if they do, they pocket that savings and then we can capture some of it in form of a premium.” For both Maersk and Hapag-Lloyd, the Gemini network fits respective strategies and approaches to the market. It harks back to hub-and-spoke networks of an earlier day and is true to Maersk’s historic DNA of running on time, a source of tension within the former 2M alliance with Mediterranean Shipping Co. For Hapag-Lloyd, it can’t promote itself as the best major carrier in terms of service quality, its stated objective, and not run on time. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

Gemini delivers cost savings as it marks a path to premium pricing

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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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Filling the Supply Chain Education Gap with LTL Education Courses

In 1995, we began operations with a clear vision: to grow alongside Mexico and connect the world through our terminals. Our priority has always been to deliver excellence in service, foster economic development, and strengthen our communities. We firmly believe that progress is not only measured in tons of cargo moved, but in the opportunities we create. _______________________________________________________________ This year marks a significant milestone: SSA Marine Mexico celebrates 30 years of presence in the country, having established itself from day one as the leading port operator nationwide. Over the past three decades, we have built a legacy of reliability, innovation, and commitment to Mexico’s growth. Our journey has been defined by continuous evolution and a steadfast dedication to our mission. SSA Marine México currently operates in six of the country’s most important ports: Cozumel, Lazaro Cardenas, Manzanillo, Progreso, Tuxpan, and Veracruz. Additionally, we have signed a concession to operate a new multipurpose terminal in Guaymas, Sonora, expanding our footprint to the north of the country. We serve a wide range of segments including containers, general cargo, automobiles, cruise ships, hydrocarbons, and asphalt. As part of this ongoing commitment, SSA Marine Mexico continues to strengthen its infrastructure and capabilities. International trade remains a key driver of global economic growth, and we are proud to support this momentum. Through our continuous improvement strategy, we invest in cutting-edge technology and equipment to deliver more efficient and competitive services, contributing to the success of Mexican businesses. •	Manzanillo, Colima- Specialized Container Terminal I: On October 13, we celebrated the arrival of two new STS (Ship To Shore) Super Post Panamax dockside cranes. This $21.2 million USD investment significantly boosts our operational capacity, streamlining cargo reception and delivery processes. In line with our modernization efforts, we will also retire four of our oldest cranes, paving the way for a more sustainable and technologically advanced fleet that meets the evolving demands of international trade. With these upgrades, SSA Marine México now operates a total of 16 cranes along our 1,350-meter dock, reaffirming our position as a national benchmark in port <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982635607_Manzanillo.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> •	As for the Multipurpose Terminal and Specialized Facility, also in Manzanillo, Colima, improvement and conditioning works are planned, along with the acquisition of four E-RTG (Electric Rubber-Tyred Gantry) cranes to enhance operational efficiency and sustainability. •	At our Automobile and General Cargo Terminal in the port of Veracruz, we continue to lead with specialized value-added services that support our clients’ growth. Recent investments include a new washing cabin and a general cargo warehouse, increasing indoor storage capacity by 67%. •	Lazaro Cardenas, Michoacan – Specialized Automobile Terminal: we are working on the development of an additional 4-hectare storage space within our bonded area and a 10-hectare Vehicle Distribution Center (VDC). These enhancements, along with ongoing personnel and system improvements, will reinforce our leadership in automotive handling across the Mexican Pacific coast.<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982742240_Lazaro.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> Through these strategic investments, SSA Marine Mexico reaffirms its commitment to the sustained growth of Mexico’s foreign trade. By expanding capacity, modernizing infrastructure, and diversifying services, we continue to strengthen the country’s competitiveness in global logistics. Today, we celebrate three decades of dedication, innovation, and leadership, with deep gratitude to our employees, clients, and partners for being part of this incredible journey. LINK: https://www.ssamarine.mx/<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1760982787360_SSA%20Marine%20Mexico%20logo%20150pxW.png" alt="" class="joc_admin__inline-image-inherit">

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SSA Marine Mexico: 30 years growing together.

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<div class="phx-topic abstract-wrapper">The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver.</div>

The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver.

<div class="phx-topic">Schneider National on Monday launched a new intermodal product offering a 95% on-time guarantee that is designed to convert truckload shippers that have been long skeptical of rail service reliability. The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver. “Reliability is a cornerstone of our operations,” Jim Filter, Schneider’s executive vice president, said in a statement. “Fast Track gives shippers peace of mind with unmatched speed and consistency, supported by our professional drivers and robust nationwide network of company-owned assets.” Some shippers need truck-like transit times; others value predictable delivery windows above all. “If what they are looking for is a faster transit, we will put it on an [expedited] train,” Michael Baumgardt, vice president of intermodal for Schneider, told the Journal of Commerce. “Some customers need a consistent schedule that you can’t deviate from ever. The consistency must be 95% to 100% on schedule. Our Fast Track product will serve both types of customers.” Fast Track will be more expensive than standard intermodal because of its service guarantees, but Schneider said it should remain cheaper than truckload, particularly on longer hauls over 1,200 miles. The Schneider product comes after competitor J.B. Hunt Transport Services launched the Quantum product <a href="https://www.joc.com/article/j-b-hunt-bnsf-launch-new-intermodal-service-to-grab-time-sensitive-freight-5215574">in 2023</a> with a 95% on-time guarantee, which expanded into <a href="https://www.joc.com/article/jb-hunt-launching-quantum-de-mexico-for-time-sensitive-cross-border-freight-6014579">Mexico</a> earlier this year. Similar to Quantum, Fast Track is planned “backward” from the point of delivery. Schneider will work with shippers to define what qualifies as on time — i.e. the delivery window of the shipper — and their speed requirements, before building a route that meets those expectations. “We begin by understanding what our customer is trying to accomplish,” Baumgardt said. “Then we determine what we are going to need to do differently, which may include alternative routings, longer drays, or skipping an interchange and using our asset-based truckload network. It could also mean changes from a customer at origin.” Schneider is likely to focus its efforts on Canadian Pacific Kansas City’s (CPKC’s) Mexico Midwest Express, where its single-line route is advertised as up to two days faster than competitors. However, Schneider said Fast Track will also include lanes with CSX Transportation and Union Pacific Railroad (UP), noting that it coordinated with all three railroads before launching. <h3>How Schneider plans to meet the 95% guarantee </h3>To execute the service guarantee, Schneider has worked with CPKC, CSX and UP on priority loading and unloading, a “first-on, first-off” approach similar to premium handling in ocean shipping. Schneider will also flag containers to ensure none are left behind when trains are full, akin to rolled cargo in ocean transportation. “We will work with the railroads to segregate these containers to ensure that they don’t get left behind,” Baumgardt said. “And if there needs to be a priority to get off the train to meet the customer’s needs, we’d work with the railroad on that too. Our teams are closely integrated with our rail partners on Fast Track.” Schneider shares a key advantage with J.B. Hunt: insourced chassis and drayage. Most containers move on company-operated tractors, and every container rides on Schneider-owned chassis, minimizing reliance on third parties for the first and final mile. Schneider also has more than 10,000 company tractors in its one-way and dedicated truckload divisions, which can step in when rail disruptions occur. If a train is delayed en route, the railroad can unload the container at the next available location and Schneider can complete the move via highway to honor the on-time guarantee. That flexibility is harder to replicate south of the border for J.B. Hunt and Schneider as neither have company assets there. “We have partnerships in Mexico and the types of carriers that we use, which we are very particular about, we’ve already had situation already where we’ve had to make changes on the fly and been very successful doing it,” Baumgardt said. “We have trusted third-party partners in Mexico that we know can deliver the security, capacity, and speed that would be required for Fast Track if it were to come to it.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Schneider National on Monday launched a new intermodal product offering a 95% on-time guarantee that is designed to convert truckload shippers that have been long skeptical of rail service reliability. The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver. “Reliability is a cornerstone of our operations,” Jim Filter, Schneider’s executive vice president, said in a statement. “Fast Track gives shippers peace of mind with unmatched speed and consistency, supported by our professional drivers and robust nationwide network of company-owned assets.” Some shippers need truck-like transit times; others value predictable delivery windows above all. “If what they are looking for is a faster transit, we will put it on an [expedited] train,” Michael Baumgardt, vice president of intermodal for Schneider, told the Journal of Commerce. “Some customers need a consistent schedule that you can’t deviate from ever. The consistency must be 95% to 100% on schedule. Our Fast Track product will serve both types of customers.” Fast Track will be more expensive than standard intermodal because of its service guarantees, but Schneider said it should remain cheaper than truckload, particularly on longer hauls over 1,200 miles. The Schneider product comes after competitor J.B. Hunt Transport Services launched the Quantum product in 2023 with a 95% on-time guarantee, which expanded into Mexico earlier this year. Similar to Quantum, Fast Track is planned “backward” from the point of delivery. Schneider will work with shippers to define what qualifies as on time — i.e. the delivery window of the shipper — and their speed requirements, before building a route that meets those expectations. “We begin by understanding what our customer is trying to accomplish,” Baumgardt said. “Then we determine what we are going to need to do differently, which may include alternative routings, longer drays, or skipping an interchange and using our asset-based truckload network. It could also mean changes from a customer at origin.” Schneider is likely to focus its efforts on Canadian Pacific Kansas City’s (CPKC’s) Mexico Midwest Express, where its single-line route is advertised as up to two days faster than competitors. However, Schneider said Fast Track will also include lanes with CSX Transportation and Union Pacific Railroad (UP), noting that it coordinated with all three railroads before launching. How Schneider plans to meet the 95% guarantee To execute the service guarantee, Schneider has worked with CPKC, CSX and UP on priority loading and unloading, a “first-on, first-off” approach similar to premium handling in ocean shipping. Schneider will also flag containers to ensure none are left behind when trains are full, akin to rolled cargo in ocean transportation. “We will work with the railroads to segregate these containers to ensure that they don’t get left behind,” Baumgardt said. “And if there needs to be a priority to get off the train to meet the customer’s needs, we’d work with the railroad on that too. Our teams are closely integrated with our rail partners on Fast Track.” Schneider shares a key advantage with J.B. Hunt: insourced chassis and drayage. Most containers move on company-operated tractors, and every container rides on Schneider-owned chassis, minimizing reliance on third parties for the first and final mile. Schneider also has more than 10,000 company tractors in its one-way and dedicated truckload divisions, which can step in when rail disruptions occur. If a train is delayed en route, the railroad can unload the container at the next available location and Schneider can complete the move via highway to honor the on-time guarantee. That flexibility is harder to replicate south of the border for J.B. Hunt and Schneider as neither have company assets there. “We have partnerships in Mexico and the types of carriers that we use, which we are very particular about, we’ve already had situation already where we’ve had to make changes on the fly and been very successful doing it,” Baumgardt said. “We have trusted third-party partners in Mexico that we know can deliver the security, capacity, and speed that would be required for Fast Track if it were to come to it.” Contact Ari Ashe at ari.ashe@spglobal.com .

Schneider launches premium intermodal service with 95% on-time guarantee

<div class="phx-topic abstract-wrapper">The new details clarify the role the two railroads will play in Schneider’s just-launched Fast Track product, which comes with a 95% on-time guarantee. </div>

The new details clarify the role the two railroads will play in Schneider’s just-launched Fast Track product, which comes with a 95% on-time guarantee.

<div class="phx-topic">Union Pacific Railroad (UP) and CSX Transportation will provide priority loading on trains as part of Schneider National’s new Fast Track product, a <a href="https://www.joc.com/article/schneider-launches-premium-intermodal-service-with-95-on-time-guarantee-6112323">premium intermodal service</a> introduced earlier this week that comes with a 95% on-time guarantee for shippers. Both railroads will also provide lift services for so-called “hot loads” if a train is running behind schedule, requiring a transfer to a Schneider truck. The priority agreement does not extend to unloading at destination terminals. In most cases, shippers using Fast Track would pay more compared with standard intermodal service, but less than a truckload move. The new details clarify the role the two railroads will play in Schneider’s 95% on-time guarantee. UP spoke about its responsibilities during a media event on Wednesday in Chicago, while an industry source confirmed to the Journal of Commerce that CSX’s arrangement with Schneider is identical. “Schneider will get an expedited code from us, which allows them to get in our terminals earlier, or a little later, but it guarantees them a spot on the train,” Kenny Rocker, UP’s executive vice president of sales, said during the company-sponsored media event. “There’s no service guarantee from UP specifically, it’s coming from the private-asset provider, in this case Schneider.” Schneider Fast Track is targeting companies that have shied away from intermodal rail because of the lack of reliable, consistent service. Many of them are in the automotive and retail sectors, which requires high-precision delivery times, or the companies risk losing sales. “It’s a great product,” UP CEO Jim Vena said Wednesday when asked about Fast Track. “I think more companies will be looking at [Schneider’s Fast Track] to see what markets they service and what they can do for their customers.” One exception to Schneider’s priority status is parcel traffic. UPS and FedEx have clauses in their contracts requiring UP to put their loads on the assigned train or face penalties. Vena said the parcel carriers pay higher rates in exchange for that guarantee. “The parcels can come 15 minutes before train departure, deliver the load, and we have to put it on the train, but they pay for it,” Vena said, explaining that Schneider Fast Track will get a priority level just below the parcel carriers. Unlike on Canadian Pacific Kansas City’s Midwest Mexico Express, where Schneider is the primary customer, the intermodal carrier shares slots on trains in the US with chief competitors J.B. Hunt Transport Services and Hub Group. It also must compete for space with retailer Amazon, which owns more than 22,000 containers, and the parcel carriers. “We’ll have notifications ahead of time [of how many Fast Track loads are booked] so we can plan the train,” said Eric Gehringer, UP’s chief operating officer. “If we’re halfway through loading the train and we know there are 13 of these loads coming in, we can leave room.” <h3>Fast Track shows UP, CSX will maintain relationship </h3>Schneider’s Fast Track also undercuts claims that UP would stop working with CSX if regulators approve its proposed $85 billion acquisition of Norfolk Southern Railway. UP has repeatedly said nothing will change with CSX, including its commitment to Schneider and to the rail-owned containers labeled “UMAX” used by intermodal marketing companies (IMCs). BNSF Railway, which opposes the UP-NS transaction, has said the merger would result in the elimination of 300 intermodal lanes, a figure that includes every interchange between UP and CSX and between BNSF and Norfolk Southern. BNSF CEO Katie Farmer appeared to soften her earlier concerns in a statement issued Wednesday, while also reminding shippers and regulators of UP’s own warnings about past rail mergers. “I’m sure the nation’s rail customers are relieved that UP is committing to keep all current intermodal lanes open if their merger with NS is approved,” Farmer said. But she also pointed to UP’s filings during the US Surface Transportation Board’s review of the Canadian Pacific-Kansas City Southern merger in 2023, in which UP argued that consolidation could harm service on interline moves — i.e. containers handled by two railroads. “CPKC would have the ability to implement such anticompetitive strategies by raising rates shippers must pay for interline service or degrading the quality of service shippers receive when using interline service,” UP wrote at the time. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Union Pacific Railroad (UP) and CSX Transportation will provide priority loading on trains as part of Schneider National’s new Fast Track product, a premium intermodal service introduced earlier this week that comes with a 95% on-time guarantee for shippers. Both railroads will also provide lift services for so-called “hot loads” if a train is running behind schedule, requiring a transfer to a Schneider truck. The priority agreement does not extend to unloading at destination terminals. In most cases, shippers using Fast Track would pay more compared with standard intermodal service, but less than a truckload move. The new details clarify the role the two railroads will play in Schneider’s 95% on-time guarantee. UP spoke about its responsibilities during a media event on Wednesday in Chicago, while an industry source confirmed to the Journal of Commerce that CSX’s arrangement with Schneider is identical. “Schneider will get an expedited code from us, which allows them to get in our terminals earlier, or a little later, but it guarantees them a spot on the train,” Kenny Rocker, UP’s executive vice president of sales, said during the company-sponsored media event. “There’s no service guarantee from UP specifically, it’s coming from the private-asset provider, in this case Schneider.” Schneider Fast Track is targeting companies that have shied away from intermodal rail because of the lack of reliable, consistent service. Many of them are in the automotive and retail sectors, which requires high-precision delivery times, or the companies risk losing sales. “It’s a great product,” UP CEO Jim Vena said Wednesday when asked about Fast Track. “I think more companies will be looking at [Schneider’s Fast Track] to see what markets they service and what they can do for their customers.” One exception to Schneider’s priority status is parcel traffic. UPS and FedEx have clauses in their contracts requiring UP to put their loads on the assigned train or face penalties. Vena said the parcel carriers pay higher rates in exchange for that guarantee. “The parcels can come 15 minutes before train departure, deliver the load, and we have to put it on the train, but they pay for it,” Vena said, explaining that Schneider Fast Track will get a priority level just below the parcel carriers. Unlike on Canadian Pacific Kansas City’s Midwest Mexico Express, where Schneider is the primary customer, the intermodal carrier shares slots on trains in the US with chief competitors J.B. Hunt Transport Services and Hub Group. It also must compete for space with retailer Amazon, which owns more than 22,000 containers, and the parcel carriers. “We’ll have notifications ahead of time [of how many Fast Track loads are booked] so we can plan the train,” said Eric Gehringer, UP’s chief operating officer. “If we’re halfway through loading the train and we know there are 13 of these loads coming in, we can leave room.” Fast Track shows UP, CSX will maintain relationship Schneider’s Fast Track also undercuts claims that UP would stop working with CSX if regulators approve its proposed $85 billion acquisition of Norfolk Southern Railway. UP has repeatedly said nothing will change with CSX, including its commitment to Schneider and to the rail-owned containers labeled “UMAX” used by intermodal marketing companies (IMCs). BNSF Railway, which opposes the UP-NS transaction, has said the merger would result in the elimination of 300 intermodal lanes, a figure that includes every interchange between UP and CSX and between BNSF and Norfolk Southern. BNSF CEO Katie Farmer appeared to soften her earlier concerns in a statement issued Wednesday, while also reminding shippers and regulators of UP’s own warnings about past rail mergers. “I’m sure the nation’s rail customers are relieved that UP is committing to keep all current intermodal lanes open if their merger with NS is approved,” Farmer said. But she also pointed to UP’s filings during the US Surface Transportation Board’s review of the Canadian Pacific-Kansas City Southern merger in 2023, in which UP argued that consolidation could harm service on interline moves — i.e. containers handled by two railroads. “CPKC would have the ability to implement such anticompetitive strategies by raising rates shippers must pay for interline service or degrading the quality of service shippers receive when using interline service,” UP wrote at the time. Contact Ari Ashe at ari.ashe@spglobal.com .

UP, CSX give priority loading to Schneider’s new intermodal service

<div class="phx-topic abstract-wrapper">The United States Trade Representative also confirmed in a statement Sunday that planned 100% tariffs on China-built ship-to-shore cranes and other cargo handling equipment, due to take effect Monday, have also been suspended for a year.</div>

The United States Trade Representative also confirmed in a statement Sunday that planned 100% tariffs on China-built ship-to-shore cranes and other cargo handling equipment, due to take effect Monday, have also been suspended for a year.

<div class="phx-topic">The deal struck by the US and China to pause reciprocal port fees for one year starting Monday has generally been welcomed by shipping, agricultural and manufacturing interests as well as port industry players, the US Trade Representative said, although the move has been criticized by labor unions. The USTR said in a statement Sunday it received 73 responses during a 48-hour comment period it held last Thursday and Friday to garner feedback from the <a href="https://www.joc.com/article/us-china-suspend-reciprocal-port-fees-as-part-of-wider-trade-deal-6105849">pause in port fees and tariffs targeting China</a>.“Many [respondents] noted that suspension of the action would lower shipping costs and avoid commercial disruption,” the USTR said, adding the pause would provide an opportunity for the US to negotiate with China “on the issues raised in this investigation and permit additional time to find solutions to increase investment in US shipbuilding.” The USTR also confirmed in its statement that planned 100% tariffs on China-built ship-to-shore cranes and other cargo handling equipment, due to take effect Monday, have also been suspended for a year. It said it is still accepting comments until Tuesday on proposals to impose tariffs of up to 150% on certain cargo handling equipment produced in China, including rubber tire gantry cranes and related components. But any action is likely to be stayed in the wake of the broad trade deal announced Oct. 30 between Washington and Beijing. Highlighting the advantages of the port fee suspension, Joe Kramek, president and CEO of the Washington, DC-based World Shipping Council, said the pause would support the "continued use of US small and medium-sized ports, and contribute to lower costs for US farmers and manufacturers who rely on ocean liner transportation to move $335 billion in American exports each year." Kramek was one of several respondents to call for the USTR to make the suspension permanent. More than 20 agricultural and farmer groups including cotton, citrus, almond, potato and dairy producers welcomed the port fee and tariff freeze, pointing out their ability to compete overseas would be otherwise undercut. “Additional costs from port fees or equipment tariffs would directly harm US farmers and exporters, reduce export opportunities and weaken rural economies that depend heavily on agricultural trade,” USA Pulses CEO Tim McGreevy said in the group’s submission. He also recommended agriculture’s “complete exemption from all related Section 301 fees, including port fees, vessel sourcing requirements, and tariffs on critical port equipment and components.” China’s Transport Ministry, meanwhile, confirmed it had suspended its reciprocal port fees on US-linked ships from 1 p.m. local time Monday. The measure applies to US-owned, -operated, -flagged or -controlled ships. <h3>Unions unhappy </h3>Not all those responding to the USTR welcomed the US pause in port fees, with shipyard-related unions saying US workers will be “pushed aside” by the decision. Suspending the port fee and related action “will continue to give China a free pass on its predatory behavior and will have far-reaching negative consequences as we attempt to restore America’s maritime sector,” four unions, including the United Steel Workers, the International Brotherhood of Electrical Workers, and the International Brotherhood of Boilermakers, said in a joint submission. The groups said there were early signs of a revitalization in US shipbuilding investment since the USTR announced its measures targeting China’s maritime sector last April, while order books at China’s shipyards have “declined at a more significant rate than during the COVID-19 pandemic.” The pause now means US workers “are again being pushed aside, even as new commercial orders — worth billions of dollars — flow back into Chinese shipyards,” the labor groups said. The unions were among five labor groups that filed a petition with the USTR in March 2024 that led to the USTR’s investigation into China’s dominance in the maritime and shipbuilding sectors, which subsequently resulted in October’s implementation of US port fees — and the reciprocal fees from China. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

The deal struck by the US and China to pause reciprocal port fees for one year starting Monday has generally been welcomed by shipping, agricultural and manufacturing interests as well as port industry players, the US Trade Representative said, although the move has been criticized by labor unions. The USTR said in a statement Sunday it received 73 responses during a 48-hour comment period it held last Thursday and Friday to garner feedback from the pause in port fees and tariffs targeting China . “Many [respondents] noted that suspension of the action would lower shipping costs and avoid commercial disruption,” the USTR said, adding the pause would provide an opportunity for the US to negotiate with China “on the issues raised in this investigation and permit additional time to find solutions to increase investment in US shipbuilding.” The USTR also confirmed in its statement that planned 100% tariffs on China-built ship-to-shore cranes and other cargo handling equipment, due to take effect Monday, have also been suspended for a year. It said it is still accepting comments until Tuesday on proposals to impose tariffs of up to 150% on certain cargo handling equipment produced in China, including rubber tire gantry cranes and related components. But any action is likely to be stayed in the wake of the broad trade deal announced Oct. 30 between Washington and Beijing. Highlighting the advantages of the port fee suspension, Joe Kramek, president and CEO of the Washington, DC-based World Shipping Council, said the pause would support the "continued use of US small and medium-sized ports, and contribute to lower costs for US farmers and manufacturers who rely on ocean liner transportation to move $335 billion in American exports each year." Kramek was one of several respondents to call for the USTR to make the suspension permanent. More than 20 agricultural and farmer groups including cotton, citrus, almond, potato and dairy producers welcomed the port fee and tariff freeze, pointing out their ability to compete overseas would be otherwise undercut. “Additional costs from port fees or equipment tariffs would directly harm US farmers and exporters, reduce export opportunities and weaken rural economies that depend heavily on agricultural trade,” USA Pulses CEO Tim McGreevy said in the group’s submission. He also recommended agriculture’s “complete exemption from all related Section 301 fees, including port fees, vessel sourcing requirements, and tariffs on critical port equipment and components.” China’s Transport Ministry, meanwhile, confirmed it had suspended its reciprocal port fees on US-linked ships from 1 p.m. local time Monday. The measure applies to US-owned, -operated, -flagged or -controlled ships. Unions unhappy Not all those responding to the USTR welcomed the US pause in port fees, with shipyard-related unions saying US workers will be “pushed aside” by the decision. Suspending the port fee and related action “will continue to give China a free pass on its predatory behavior and will have far-reaching negative consequences as we attempt to restore America’s maritime sector,” four unions, including the United Steel Workers, the International Brotherhood of Electrical Workers, and the International Brotherhood of Boilermakers, said in a joint submission. The groups said there were early signs of a revitalization in US shipbuilding investment since the USTR announced its measures targeting China’s maritime sector last April, while order books at China’s shipyards have “declined at a more significant rate than during the COVID-19 pandemic.” The pause now means US workers “are again being pushed aside, even as new commercial orders — worth billions of dollars — flow back into Chinese shipyards,” the labor groups said. The unions were among five labor groups that filed a petition with the USTR in March 2024 that led to the USTR’s investigation into China’s dominance in the maritime and shipbuilding sectors, which subsequently resulted in October’s implementation of US port fees — and the reciprocal fees from China. Contact Keith Wallis at keithwallis@hotmail.com .

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