<div class="phx-topic abstract-wrapper">The port will go ahead with the first phase of developing more container handling capability at its second-largest marine terminal, which is also providing temporary parking for big ships. </div>

The port will go ahead with the first phase of developing more container handling capability at its second-largest marine terminal, which is also providing temporary parking for big ships.

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<div class="phx-topic">The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority (GPA) this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement. While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. <a href="https://www.joc.com/article/savannahs-parking-spot-targets-idle-time-for-ships-main-terminal-5964038">That berth is now available as a “parking spot” for ships</a> to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. <h3>Lay berth cutting idle time </h3>The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three.The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 container ships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority (GPA) this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement. While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. That berth is now available as a “parking spot” for ships to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. Lay berth cutting idle time The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three.The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 container ships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at michael.angell@spglobal.com .

Port News

North American ports

Marine terminals

Container Shipping News

Maritime

Savannah to fund Ocean Terminal improvements as lay berth opens

<div class="phx-topic abstract-wrapper">Mario Cordero has frequently said that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations.</div>

Mario Cordero has frequently said that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations.

<div class="phx-topic">Mario Cordero, who, as executive director of the Port of Long Beach, oversaw the port’s 28% growth in container volumes over the past eight years, will retire at the end of 2025. The Long Beach Board of Harbor Commissioners will meet “soon ... to discuss next steps for a transition plan,” the port said in a statement Thursday. “I could not be more grateful for what has been the opportunity of a lifetime to lead the Port of Long Beach,” Cordero said in the statement. Before becoming Long Beach’s executive director in May 2017, Cordero served as a Long Beach harbor commissioner and was a member of the Federal Maritime Commission (FMC) in Washington. He’s a Los Angeles native who practiced law for more than 30 years. Cordero has frequently said in public appearances that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations. He proposed the port’s green initiative in 2003 while serving as a member of the Long Beach Board of Harbor Commissioners. The board ratified the Green Port Policy in 2005. Cordero served as a member of the port’s governing board from 2003 until being appointed to the FMC by President Barack Obama in 2011. He served as FMC chairman from 2013 to 2017. He left the FMC in May 2017 to become executive director of the Port of Long Beach. The port handled 7.5 million laden and empty TEUs in 2017, Cordero’s first year as executive director. Last year, Long Beach moved 9.6 million TEUs, according to the port’s website. “Mario has always stepped up to serve...,” Long Beach Mayor Rex Richardson said in the statement. “He has guided one of the world’s busiest seaports through unprecedented times with vision and steady leadership.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Mario Cordero, who, as executive director of the Port of Long Beach, oversaw the port’s 28% growth in container volumes over the past eight years, will retire at the end of 2025. The Long Beach Board of Harbor Commissioners will meet “soon ... to discuss next steps for a transition plan,” the port said in a statement Thursday. “I could not be more grateful for what has been the opportunity of a lifetime to lead the Port of Long Beach,” Cordero said in the statement. Before becoming Long Beach’s executive director in May 2017, Cordero served as a Long Beach harbor commissioner and was a member of the Federal Maritime Commission (FMC) in Washington. He’s a Los Angeles native who practiced law for more than 30 years. Cordero has frequently said in public appearances that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations. He proposed the port’s green initiative in 2003 while serving as a member of the Long Beach Board of Harbor Commissioners. The board ratified the Green Port Policy in 2005. Cordero served as a member of the port’s governing board from 2003 until being appointed to the FMC by President Barack Obama in 2011. He served as FMC chairman from 2013 to 2017. He left the FMC in May 2017 to become executive director of the Port of Long Beach. The port handled 7.5 million laden and empty TEUs in 2017, Cordero’s first year as executive director. Last year, Long Beach moved 9.6 million TEUs, according to the port’s website. “Mario has always stepped up to serve...,” Long Beach Mayor Rex Richardson said in the statement. “He has guided one of the world’s busiest seaports through unprecedented times with vision and steady leadership.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port infrastructure

Cordero to retire at end of 2025 after eight years as Long Beach executive director

<div class="phx-topic">The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement.While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. That berth is now available as a <a href="https://www.joc.com/article/savannahs-parking-spot-targets-idle-time-for-ships-main-terminal-5964038">“parking spot”</a> for ships to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. <h3>Lay berth cutting idle time</h3>The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three. The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 containerships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement. While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. That berth is now available as a “parking spot” for ships to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. Lay berth cutting idle time The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three. The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 containerships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at michael.angell@spglobal.com

<div class="phx-topic abstract-wrapper">In its request for proposals to develop Pier 500, the port will specify that it seeks to contract with a member company of the Pacific Maritime Association that pledges to follow the guidelines for terminal operations on the US West Coast.</div>

In its request for proposals to develop Pier 500, the port will specify that it seeks to contract with a member company of the Pacific Maritime Association that pledges to follow the guidelines for terminal operations on the US West Coast.

<div class="phx-topic">Plans by the Port of Los Angeles to build a new 200-acre, two-berth container terminal are being driven by projections that the Southern California gateway of LA and Long Beach will reach its combined capacity of 40 million TEUs in 2040. The proposed Pier 500 container terminal, which will take about 10 years to complete once construction begins, will position the Southern California port complex of Los Angeles and Long Beach to handle growing cargo volumes well beyond 2040, Gene Seroka, executive director of the Port of Los Angeles, told the Journal of Commerce Thursday. The LA-LB port complex, the largest in the US, handled a combined 19.9 million laden and empty TEUs in 2024, about a 20% increase over the previous year, according to data on the ports’ websites. “Infrastructure like this always has a 20- to 30-year horizon,” Seroka said. Los Angeles earlier this week announced it was seeking proposals for the pre-development of Pier 500, which will have about 3,000 linear feet of available wharf space. It will be located just south of the port’s Pier 400, the largest container terminal in the US and operated by APM Terminals. No cost estimate was provided by the port. The TEU capacity of the new terminal will depend on the type of terminal the winning developer decides to build, whether manual or automated. And an actual construction timeline won’t be known until all environmental clearances are secured.<h3>Will seek PMA member to operate new terminal </h3>In its request for proposals to develop Pier 500, Los Angeles will specify that it seeks to contract with a member company of the Pacific Maritime Association (PMA) that pledges to follow the guidelines for terminal operations on the US West Coast, Seroka said. The PMA, which consists of ocean carriers and terminal operators, negotiates and administers the coastwide waterfront contract with the International Longshore and Warehouse Union (ILWU). The pre-development process will include all necessary environmental assessments required by both state and federal law. “The entire proposed Pier 500 project, from pre-development, entitlement procurement and environmental review and full buildout and operation is expected to take approximately 10 years,” the port said in a statement. Development and construction are expected to move forward faster than most new terminals built on landfill, Seroka said, because the port has identified a submerged 124-acre landfill site that is only 15 feet below the water line. “We’ll cap off the 15 feet, so construction should proceed quicker than for most projects,” Seroka said. “We’ve been dumping rocks there for years from various construction projects.” While construction proceeds, Los Angeles will continue to implement operational improvements at the port and enhance its data-sharing efforts with port stakeholders, including shipping lines, terminal operators, drayage operators, railroads and warehouse operators, to squeeze greater productivity from the existing infrastructure, Seroka said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Plans by the Port of Los Angeles to build a new 200-acre, two-berth container terminal are being driven by projections that the Southern California gateway of LA and Long Beach will reach its combined capacity of 40 million TEUs in 2040. The proposed Pier 500 container terminal, which will take about 10 years to complete once construction begins, will position the Southern California port complex of Los Angeles and Long Beach to handle growing cargo volumes well beyond 2040, Gene Seroka, executive director of the Port of Los Angeles, told the Journal of Commerce Thursday. The LA-LB port complex, the largest in the US, handled a combined 19.9 million laden and empty TEUs in 2024, about a 20% increase over the previous year, according to data on the ports’ websites. “Infrastructure like this always has a 20- to 30-year horizon,” Seroka said. Los Angeles earlier this week announced it was seeking proposals for the pre-development of Pier 500, which will have about 3,000 linear feet of available wharf space. It will be located just south of the port’s Pier 400, the largest container terminal in the US and operated by APM Terminals. No cost estimate was provided by the port. The TEU capacity of the new terminal will depend on the type of terminal the winning developer decides to build, whether manual or automated. And an actual construction timeline won’t be known until all environmental clearances are secured. Will seek PMA member to operate new terminal In its request for proposals to develop Pier 500, Los Angeles will specify that it seeks to contract with a member company of the Pacific Maritime Association (PMA) that pledges to follow the guidelines for terminal operations on the US West Coast, Seroka said. The PMA, which consists of ocean carriers and terminal operators, negotiates and administers the coastwide waterfront contract with the International Longshore and Warehouse Union (ILWU). The pre-development process will include all necessary environmental assessments required by both state and federal law. “The entire proposed Pier 500 project, from pre-development, entitlement procurement and environmental review and full buildout and operation is expected to take approximately 10 years,” the port said in a statement. Development and construction are expected to move forward faster than most new terminals built on landfill, Seroka said, because the port has identified a submerged 124-acre landfill site that is only 15 feet below the water line. “We’ll cap off the 15 feet, so construction should proceed quicker than for most projects,” Seroka said. “We’ve been dumping rocks there for years from various construction projects.” While construction proceeds, Los Angeles will continue to implement operational improvements at the port and enhance its data-sharing efforts with port stakeholders, including shipping lines, terminal operators, drayage operators, railroads and warehouse operators, to squeeze greater productivity from the existing infrastructure, Seroka said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Trans-Pacific

Port of Los Angeles looks to handle future growth with new terminal project

<div class="phx-topic abstract-wrapper">Multiple carrier sources who spoke with the Journal of Commerce say refrigerated volumes from India to the US are already down by as much as 50% from the normal pattern for seafood trade.</div>

Multiple carrier sources who spoke with the Journal of Commerce say refrigerated volumes from India to the US are already down by as much as 50% from the normal pattern for seafood trade.

<div class="phx-topic">Ocean carriers and freight forwarders out of India are reporting significant setbacks in reefer exports to the US as steep tariffs have created an increasingly unfavorable business environment. Indian perishables trades to the US primarily come from the seafood, frozen/packaged food and pharmaceutical industries. The market was initially hit by a 50% tariff effective Aug. 27, with the exception of pharmaceutical products. But the Indian drug industry has now also been targeted by US tariffs, although the full impact there is unknown in the absence of clarity. Multiple carrier sources who spoke with the Journal of Commerce agreed that India reefer volumes to the US are already down by 30% to 50% from the normal pattern for seafood export trades. Sources pegged India’s combined pre-tariff reefer trade to the US at about 750 FEUs a week. “We are seeing vulnerability in shrimp volumes ... it could eventually lead to a more significant decline over time," said Bhavik Mota, Maersk’s director of regional ocean management for India, the Middle East and Africa. “The exports of goods such as pharmaceuticals are holding firm, but we will have to see which way it goes when the new tariff on pharma comes into force." Sanyukta Kulkarni, trade lane manager for the Indian subcontinent at global forwarder DSV, believes the downturn in India-US reefer volumes could become more pronounced in the coming months if there is no relief from the deep “tariff wounds.” “As a forwarder, we are starting to see the impact, but it’s not drastic at the moment as many importers have continued to fulfill their previously committed volumes with suppliers,” Kulkarni said. “Additionally, finding supply chain alternatives to match that scale will take time.” Forwarder sources explained that reefer bookings were expected to be strong between September and October as exporters typically try to rush shipments ahead of the onset of the local Hindu festival season of Diwali that involves extended holidays and factory production cutbacks and closures. <h3>Carriers adjust capacity to manage rates </h3>While reefer booking prices out of India have weakened, forwarders believe major carriers have been able to prevent a sharp fall by adjusting capacity via blank sailings and/or lower reefer plug allotments. Average freight-all-kinds (FAK) or contract rates for reefer loads from Nhava Sheva to New York now stand at $3,000 to $3,200 per FEU, a decline of up to $500 per FEU since early September, sources say. Amid the uncertainty, container lines are devising new strategies to support reefer trade out of India. Ocean Network Express (ONE) recently opened a dedicated intermodal reefer train service from Hyderabad in southern India — a hub for the Indian pharmaceutical industry — to Nhava Sheva Port in tandem with its US East Coast sailings. The US is the largest market for Indian pharmaceutical exports. And thanks to advanced reefer equipment management systems, including remote control capabilities, supply chains for that trade have dramatically consolidated on the ocean leg — 70% to 30% by air freight. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Ocean carriers and freight forwarders out of India are reporting significant setbacks in reefer exports to the US as steep tariffs have created an increasingly unfavorable business environment. Indian perishables trades to the US primarily come from the seafood, frozen/packaged food and pharmaceutical industries. The market was initially hit by a 50% tariff effective Aug. 27, with the exception of pharmaceutical products. But the Indian drug industry has now also been targeted by US tariffs, although the full impact there is unknown in the absence of clarity. Multiple carrier sources who spoke with the Journal of Commerce agreed that India reefer volumes to the US are already down by 30% to 50% from the normal pattern for seafood export trades. Sources pegged India’s combined pre-tariff reefer trade to the US at about 750 FEUs a week. “We are seeing vulnerability in shrimp volumes ... it could eventually lead to a more significant decline over time," said Bhavik Mota, Maersk’s director of regional ocean management for India, the Middle East and Africa. “The exports of goods such as pharmaceuticals are holding firm, but we will have to see which way it goes when the new tariff on pharma comes into force." Sanyukta Kulkarni, trade lane manager for the Indian subcontinent at global forwarder DSV, believes the downturn in India-US reefer volumes could become more pronounced in the coming months if there is no relief from the deep “tariff wounds.” “As a forwarder, we are starting to see the impact, but it’s not drastic at the moment as many importers have continued to fulfill their previously committed volumes with suppliers,” Kulkarni said. “Additionally, finding supply chain alternatives to match that scale will take time.” Forwarder sources explained that reefer bookings were expected to be strong between September and October as exporters typically try to rush shipments ahead of the onset of the local Hindu festival season of Diwali that involves extended holidays and factory production cutbacks and closures. Carriers adjust capacity to manage rates While reefer booking prices out of India have weakened, forwarders believe major carriers have been able to prevent a sharp fall by adjusting capacity via blank sailings and/or lower reefer plug allotments. Average freight-all-kinds (FAK) or contract rates for reefer loads from Nhava Sheva to New York now stand at $3,000 to $3,200 per FEU, a decline of up to $500 per FEU since early September, sources say. Amid the uncertainty, container lines are devising new strategies to support reefer trade out of India. Ocean Network Express (ONE) recently opened a dedicated intermodal reefer train service from Hyderabad in southern India — a hub for the Indian pharmaceutical industry — to Nhava Sheva Port in tandem with its US East Coast sailings. The US is the largest market for Indian pharmaceutical exports. And thanks to advanced reefer equipment management systems, including remote control capabilities, supply chains for that trade have dramatically consolidated on the ocean leg — 70% to 30% by air freight. Contact Bency Mathew at bencyvmathew@gmail.com .

Cool Cargo News

Tariffs lead to sharp decline in Indian reefer exports to US: industry sources

<div class="phx-topic abstract-wrapper">As production shifts to counter the impact of US tariffs, the diversification of consumer markets will create new growth opportunities for the air freight industry, observers say.</div>

As production shifts to counter the impact of US tariffs, the diversification of consumer markets will create new growth opportunities for the air freight industry, observers say.

<div class="phx-topic">The widespread imposition of US tariffs has changed trade flows as manufacturers take a “US-plus one” approach to production, driving a diversification of air cargo trade lanes that spells good news for the industry, the head of The International Air Cargo Association (Tiaca) says. Tiaca Director-General Glyn Hughes told an air cargo webinar hosted by rate benchmarking platform Xeneta Thursday that carriers were agile enough to respond quickly to big geographical changes in demand driven by US policy and deploy the required capacity appropriately. “Over the last few years, we’ve heard ‘China-plus one’ from a production perspective to diversify supply chain risks, and we’re now hearing much more about ‘US-plus one’ from a consumption perspective,” Hughes said. “We will see a lot more production shifts to parts of Southeast Asia and a diversification of consumer markets under those conditions, and more areas of production and more areas of increasing consumption is really good for air cargo,” he added. The shift in air cargo trade lanes was a result of the May 2 removal by the White House of the “de minimis” exemption from duties on Chinese imports valued at under $800. Dozens of daily freighters serving the massive trans-Pacific demand for e-commerce were no longer required, forcing airlines to urgently look for new markets. But as quickly as US demand for Chinese e-commerce plummeted, giant online platforms Temu and Shein shifted their estimated billion-dollar marketing budget from the US to Europe, providing employment for the fleet of no-longer-surplus freighters. “The Chinese online platforms were able to decide, nearly overnight, instead of spending a billion dollars of advertising in the US, it was moved to Europe and we started buying, shifting [air cargo] capacity all the way from the trans-Pacific into Europe as a result,” said Niall van de Wouw, chief air freight officer at Xeneta. “It was done so effectively that the rates have remained fairly stable despite tremendous fluctuations with a massive increase in volumes into Europe and a decrease in volumes into the US. I find this astounding,” van de Wouw told the Xeneta webinar. <h3>Muted activity on trans-Pacific </h3>Global air cargo spot rates registered a fifth consecutive month of year-over-year declines in September, falling 4% to an average of $2.54 per kilogram, according to Xeneta. Much of the downward pressure came from muted activity on trans-Atlantic and trans-Pacific routes, where repeated extensions of US tariff deadlines appear to have pulled forward volumes into the summer months. While rates declined globally, average outbound Shanghai-Europe rates from May through September were flat year over year at $4.20/kg, while average Shanghai-Chicago rates for the same period were down 9% at $5.10/kg, Baltic Air Index (BAI) data showed. In a market update Friday, Cargo Facts Consulting noted that with the global de minimis repeal now in effect and the US-China 90-day tariff truce set to expire in November, demand patterns remained highly uncertain, with tactical redeployments of freighter aircraft continuing to shape capacity. <h3>US policy diverting trade </h3>Tiaca’s Hughes said the shifting of air freight capacity will not be limited to e-commerce developments as the uncertainties around doing business with the US spill over into other sectors. “We’re going to see other industries saying the potential volatility of moving freight to the US market could be too fractured or too risky where all of a sudden your cargo, whether it goes by air or ocean, could be hit with a 25%, 40%, 50% tariff, which makes it uneconomic and too risky to produce and send,” Hughes told the Xeneta webinar. Cargo Facts Consulting noted in its update that global trade momentum was positive, but the composition has shifted with e-commerce and time-sensitive components gaining market share of air cargo, while discretionary consumer electronics tied to China-US flows have remained under pressure. “The policy backdrop is prompting strategies that prioritize flexibility, additional entry points and country-of-origin diversification,” Cargo Facts said. In its fourth-quarter outlook, the consultancy expects continued volatility into the peak season as the US removal of the de minimis exemption collides with reduced winter airline schedules and incremental net freighter growth. “Asia-Europe should remain the relative outperformer, supported by e-commerce, postal-parcel re-routing and alternative sourcing from North and Southeast Asia,” the Cargo Facts outlook noted. “Trans-Pacific strength will depend on how quickly platforms and consolidators adapt labeling, screening and routing to the new US requirements.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.</div>

The widespread imposition of US tariffs has changed trade flows as manufacturers take a “US-plus one” approach to production, driving a diversification of air cargo trade lanes that spells good news for the industry, the head of The International Air Cargo Association (Tiaca) says. Tiaca Director-General Glyn Hughes told an air cargo webinar hosted by rate benchmarking platform Xeneta Thursday that carriers were agile enough to respond quickly to big geographical changes in demand driven by US policy and deploy the required capacity appropriately. “Over the last few years, we’ve heard ‘China-plus one’ from a production perspective to diversify supply chain risks, and we’re now hearing much more about ‘US-plus one’ from a consumption perspective,” Hughes said. “We will see a lot more production shifts to parts of Southeast Asia and a diversification of consumer markets under those conditions, and more areas of production and more areas of increasing consumption is really good for air cargo,” he added. The shift in air cargo trade lanes was a result of the May 2 removal by the White House of the “de minimis” exemption from duties on Chinese imports valued at under $800. Dozens of daily freighters serving the massive trans-Pacific demand for e-commerce were no longer required, forcing airlines to urgently look for new markets. But as quickly as US demand for Chinese e-commerce plummeted, giant online platforms Temu and Shein shifted their estimated billion-dollar marketing budget from the US to Europe, providing employment for the fleet of no-longer-surplus freighters. “The Chinese online platforms were able to decide, nearly overnight, instead of spending a billion dollars of advertising in the US, it was moved to Europe and we started buying, shifting [air cargo] capacity all the way from the trans-Pacific into Europe as a result,” said Niall van de Wouw, chief air freight officer at Xeneta. “It was done so effectively that the rates have remained fairly stable despite tremendous fluctuations with a massive increase in volumes into Europe and a decrease in volumes into the US. I find this astounding,” van de Wouw told the Xeneta webinar. Muted activity on trans-Pacific Global air cargo spot rates registered a fifth consecutive month of year-over-year declines in September, falling 4% to an average of $2.54 per kilogram, according to Xeneta. Much of the downward pressure came from muted activity on trans-Atlantic and trans-Pacific routes, where repeated extensions of US tariff deadlines appear to have pulled forward volumes into the summer months. While rates declined globally, average outbound Shanghai-Europe rates from May through September were flat year over year at $4.20/kg, while average Shanghai-Chicago rates for the same period were down 9% at $5.10/kg, Baltic Air Index (BAI) data showed. In a market update Friday, Cargo Facts Consulting noted that with the global de minimis repeal now in effect and the US-China 90-day tariff truce set to expire in November, demand patterns remained highly uncertain, with tactical redeployments of freighter aircraft continuing to shape capacity. US policy diverting trade Tiaca’s Hughes said the shifting of air freight capacity will not be limited to e-commerce developments as the uncertainties around doing business with the US spill over into other sectors. “We’re going to see other industries saying the potential volatility of moving freight to the US market could be too fractured or too risky where all of a sudden your cargo, whether it goes by air or ocean, could be hit with a 25%, 40%, 50% tariff, which makes it uneconomic and too risky to produce and send,” Hughes told the Xeneta webinar. Cargo Facts Consulting noted in its update that global trade momentum was positive, but the composition has shifted with e-commerce and time-sensitive components gaining market share of air cargo, while discretionary consumer electronics tied to China-US flows have remained under pressure. “The policy backdrop is prompting strategies that prioritize flexibility, additional entry points and country-of-origin diversification,” Cargo Facts said. In its fourth-quarter outlook, the consultancy expects continued volatility into the peak season as the US removal of the de minimis exemption collides with reduced winter airline schedules and incremental net freighter growth. “Asia-Europe should remain the relative outperformer, supported by e-commerce, postal-parcel re-routing and alternative sourcing from North and Southeast Asia,” the Cargo Facts outlook noted. “Trans-Pacific strength will depend on how quickly platforms and consolidators adapt labeling, screening and routing to the new US requirements.” Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Forwarder News

Air Cargo Carriers News

Air Cargo

Post-tariff air freight market diversifies into ‘US-plus one’ strategy: Tiaca

<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

Surface

Visibility transforming accessorial and location insights in LTL shipping

<div class="phx-topic abstract-wrapper">There are measures carriers can take around the edges, but if they really want to take control of supply — and thus price — collectively sidelining some high-caliber tonnage is the standout solution, writes Jeremy Masters. </div>

There are measures carriers can take around the edges, but if they really want to take control of supply — and thus price — collectively sidelining some high-caliber tonnage is the standout solution, writes Jeremy Masters.

<div class="phx-topic">The laws of supply and demand dictate that prices will move in accordance with the relativity of the two. Container carriers can marginally move the dial between what is containerized and what is bulk or breakbulk by offering very attractive (low contribution) rates. An innovative product — for example, Gemini Cooperation’s high reliability network or an express service — might lure some air freight to sea freight. For the most part, however, carriers have very little control over demand. The key price lever that carriers have is slot supply, and current fundamentals point to heavy surplus, even as diversions around southern Africa continue. Are the carriers, then, sprinting to the edge of the cliff with newbuild deliveries, fresh orders, second-hand buying and chartering of what little spare capacity is left, followed by a freefall? Or do they at least have a parachute to slow down their momentum? There are some things they can do to help themselves in trades with overcapacity. <h3>Pushing pause </h3>The most obvious and dramatic way would be to park ships. To be impactful, that would mean collectively taking out multiple strings rather than tinkering with single strings or blank sailings. Understandably, there is a mental block in the big east-west trades when it comes to parking high-capacity, high-value, newer ships. But if the carriers get supply even minimally below demand, the economics are massively in their favor. Let's assume that, in the Asia-to-Europe trade, each consortium (for these purposes, Mediterranean Shipping Co. would be considered a consortium) ties up one string of ultra-large container vessels (ULCVs) that was forecasted to make a minimal contribution to fixed cost because of declining rates. If, because of removing these strings, freight rates were a very conservative $500 per TEU higher on average on the headhaul than they would have been, based on 20,000 TEU per week and 50 weeks, all consortiums would accumulate an additional $500,000 million per annum on all remaining loops. There would be, of course, some incremental lay-up costs, but other costs would remain similar. Parking some $3 billion worth of assets per consortium is easier in theory than in practice, especially for those carriers who need to justify some heavy investments to their boards. If the carriers accept that drastic action is required, however, and there is enough collective action — not orchestrated action, of course, in contravention of competition rules — then the results will be dramatically better, and the ships will be readily available for an upturn. <h3>Beyond parking </h3>Are there less capacity-eating measures that carriers could undertake? The catalyst for a major dive in multi-trade rates would be a return to the Red Sea and Suez Canal for Asia-to-Europe strings, but it's unlikely that we will go overnight from high-risk Red Sea transits to totally safe ones. Given the disruption and risk — for carriers and their clients — of moving all strings back to the Red Sea only to find that further issues arise, it would be entirely justifiable to keep some strings moving around the Cape of Good Hope. Big beneficial cargo owners (BCOs) and forwarders/non-vessel operating common carriers (NVOCCs) have — forcefully — adjusted to the Cape routing. And while there is higher on-the-water inventory cost, the weekly pipeline of arrivals are established. They would naturally lean towards the faster Red Sea routing, but at the same time, would want to strenuously avoid a situation where production lines are stopped or shelves empty because they have put all their eggs in the Red Sea basket that has turned bad again. This may be counterintuitive, given more expensive ship systems around the Cape, but carriers could also implement two-tier pricing to re-enforce this prudence — essentially, a premium for Red Sea risk or a deficit for longer transits, whichever you prefer. Slow-steaming is another area of capacity control where a systematic approach could eat up more capacity. This means not just applying it in over-tonnaged trades, but in all trades. Tonnage can then be moved from trades where there is oversupply to those that are short because of slow-steaming. Finally, there is the scrapping of older vessels. If we look at carriers' desire to hold onto bigger, newer assets and their purchase of relatively old smaller tonnage to run regional and feeder networks, this does not look to be a particularly encouraging area for capacity shedding. There are measures the carriers can take around the edges, but if they really want to take control of supply – and thus price – collectively sidelining some high-caliber tonnage is the standout solution. Contact Jeremy Masters at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

The laws of supply and demand dictate that prices will move in accordance with the relativity of the two. Container carriers can marginally move the dial between what is containerized and what is bulk or breakbulk by offering very attractive (low contribution) rates. An innovative product — for example, Gemini Cooperation’s high reliability network or an express service — might lure some air freight to sea freight. For the most part, however, carriers have very little control over demand. The key price lever that carriers have is slot supply, and current fundamentals point to heavy surplus, even as diversions around southern Africa continue. Are the carriers, then, sprinting to the edge of the cliff with newbuild deliveries, fresh orders, second-hand buying and chartering of what little spare capacity is left, followed by a freefall? Or do they at least have a parachute to slow down their momentum? There are some things they can do to help themselves in trades with overcapacity. Pushing pause The most obvious and dramatic way would be to park ships. To be impactful, that would mean collectively taking out multiple strings rather than tinkering with single strings or blank sailings. Understandably, there is a mental block in the big east-west trades when it comes to parking high-capacity, high-value, newer ships. But if the carriers get supply even minimally below demand, the economics are massively in their favor. Let's assume that, in the Asia-to-Europe trade, each consortium (for these purposes, Mediterranean Shipping Co. would be considered a consortium) ties up one string of ultra-large container vessels (ULCVs) that was forecasted to make a minimal contribution to fixed cost because of declining rates. If, because of removing these strings, freight rates were a very conservative $500 per TEU higher on average on the headhaul than they would have been, based on 20,000 TEU per week and 50 weeks, all consortiums would accumulate an additional $500,000 million per annum on all remaining loops. There would be, of course, some incremental lay-up costs, but other costs would remain similar. Parking some $3 billion worth of assets per consortium is easier in theory than in practice, especially for those carriers who need to justify some heavy investments to their boards. If the carriers accept that drastic action is required, however, and there is enough collective action — not orchestrated action, of course, in contravention of competition rules — then the results will be dramatically better, and the ships will be readily available for an upturn. Beyond parking Are there less capacity-eating measures that carriers could undertake? The catalyst for a major dive in multi-trade rates would be a return to the Red Sea and Suez Canal for Asia-to-Europe strings, but it's unlikely that we will go overnight from high-risk Red Sea transits to totally safe ones. Given the disruption and risk — for carriers and their clients — of moving all strings back to the Red Sea only to find that further issues arise, it would be entirely justifiable to keep some strings moving around the Cape of Good Hope. Big beneficial cargo owners (BCOs) and forwarders/non-vessel operating common carriers (NVOCCs) have — forcefully — adjusted to the Cape routing. And while there is higher on-the-water inventory cost, the weekly pipeline of arrivals are established. They would naturally lean towards the faster Red Sea routing, but at the same time, would want to strenuously avoid a situation where production lines are stopped or shelves empty because they have put all their eggs in the Red Sea basket that has turned bad again. This may be counterintuitive, given more expensive ship systems around the Cape, but carriers could also implement two-tier pricing to re-enforce this prudence — essentially, a premium for Red Sea risk or a deficit for longer transits, whichever you prefer. Slow-steaming is another area of capacity control where a systematic approach could eat up more capacity. This means not just applying it in over-tonnaged trades, but in all trades. Tonnage can then be moved from trades where there is oversupply to those that are short because of slow-steaming. Finally, there is the scrapping of older vessels. If we look at carriers' desire to hold onto bigger, newer assets and their purchase of relatively old smaller tonnage to run regional and feeder networks, this does not look to be a particularly encouraging area for capacity shedding. There are measures the carriers can take around the edges, but if they really want to take control of supply – and thus price – collectively sidelining some high-caliber tonnage is the standout solution. Contact Jeremy Masters at jeremy@shippingmastershk.com .

Container lines

Ocean carriers are not helpless when it comes to managing capacity

Shanghai to Melbourne

{dateX.formatDate('MMM dd, yyyy')}: ${valueY} 
Y-o-Y: {percet_year_Melbourne.formatNumber("##.#%")}

The Shanghai Shipping Exchange’s (SSE) Shanghai Containerized Freight Index (SCFI) reflects spot rates and associated seaborne charges for containerized exports from Shanghai. The SCFI includes indices of freight rates in 13 individual shipping routes and a composite index, using Oct. 16, 2009, as the base period (Oct. 16, 2009 = 1,000). [SSE](https://en.sse.net.cn/indices/scfinew.jsp)

Shanghai to Melbourne container spot rates (SSE)

Shanghai to Melbourne Container Spot Rates (SCFI-Weekly) Gateway

<div class="phx-topic abstract-wrapper">Canadian transportation regulators are considering whether empty container fees are justified, following protests from shipowners and vessel operators. </div>

Canadian transportation regulators are considering whether empty container fees are justified, following protests from shipowners and vessel operators.

<div class="phx-topic">The Port of Montreal has joined Vancouver in imposing a surcharge on outbound empty containers as ocean carriers challenge the justification for the fees with Canadian regulators. The Montreal Port Authority (MPA) imposed a one-time C$10 fee per outbound empty TEU container starting Tuesday after Vancouver implemented a similar C$17.58 surcharge on May 1. The ports have defended the fees, arguing they’ll speed up cargo flow at marine terminals and help pay for infrastructure improvements. “The surcharge will help us recover the costs of maintaining infrastructure that empties strain daily,” a spokesperson for the Montreal Port Authority told the Journal of Commerce. “Ultimately, this initiative supports our broader goals of reducing congestion, maintaining fluidity and minimizing environmental impacts across the supply chain.” The Shipping Federation of Canada, which represents shipowners and carriers, rejected the justification for the fees, saying they will disrupt operations and incentivize shippers to use other Canadian ports or even shift to the US. The clash comes as Prime Minister Mark Carney trumpets the need to make Canadian exporters more competitive and diversify trade away from the US. The fees at Vancouver and Montreal are expected to yield millions of dollars. Approximately 507,000 TEUs of empty outbound containers were shipped out of Vancouver in the first half of 2025, which would have accrued $8.9 million if the new surcharge had taken effect at the start of the year. The Shipping Federation in the spring appealed the Vancouver Fraser Port Authority’s then-proposed empty container fee, asking the Canadian Transportation Agency to intervene. The agency has not yet responded; a decision against the port authority could spur lawmakers to introduce legislation. A bill that would have allowed port users to challenge fees was introduced in the Canadian Parliament in 2023 but was never passed. Saying that the fee is under review, a spokesperson for the Vancouver port declined to comment. The fee for loading empty equipment onto vessels is half that of laden export containers, which is $35.15 per FEU. <h3>Shipping group pushes back </h3>According to the Shipping Federation of Canada, Vancouver has justified the fees in presentations to the industry, saying the handling of empty containers places wear and tear on infrastructure and the boxes take up terminal space, so the fees would help ease port congestion by encouraging movement of the containers. The shipping federation has countered by saying that the terminal operator, not the port authority, takes on such costs and that wharfage by its definition only applies to laden cargo. There’s a natural imbalance in the weight of inbound containers loaded with items such as toys and other retail items compared with outbound containers loaded with heavier agriculture and machinery exports, the shipping federation noted in a March 12 comment on Vancouver’s fee. Thus, it said, it’s not uncommon to “top off” outbound vessels with empty containers to optimize ship utilization. “The concept of incentivizing the carrier to fill more empties with export cargo makes no sense within such a context, as the vessel’s cargo carrying capacity is inherently constrained from both an operational and commercial perspective, and cannot simply be expanded in response to a new financial measure imposed by the port,” the federation wrote. The group added that the new fee disadvantages container transport versus bulk and multipurpose shipping and criticized the lack of transparency on how the fees would be invested in infrastructure. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

The Port of Montreal has joined Vancouver in imposing a surcharge on outbound empty containers as ocean carriers challenge the justification for the fees with Canadian regulators. The Montreal Port Authority (MPA) imposed a one-time C$10 fee per outbound empty TEU container starting Tuesday after Vancouver implemented a similar C$17.58 surcharge on May 1. The ports have defended the fees, arguing they’ll speed up cargo flow at marine terminals and help pay for infrastructure improvements. “The surcharge will help us recover the costs of maintaining infrastructure that empties strain daily,” a spokesperson for the Montreal Port Authority told the Journal of Commerce. “Ultimately, this initiative supports our broader goals of reducing congestion, maintaining fluidity and minimizing environmental impacts across the supply chain.” The Shipping Federation of Canada, which represents shipowners and carriers, rejected the justification for the fees, saying they will disrupt operations and incentivize shippers to use other Canadian ports or even shift to the US. The clash comes as Prime Minister Mark Carney trumpets the need to make Canadian exporters more competitive and diversify trade away from the US. The fees at Vancouver and Montreal are expected to yield millions of dollars. Approximately 507,000 TEUs of empty outbound containers were shipped out of Vancouver in the first half of 2025, which would have accrued $8.9 million if the new surcharge had taken effect at the start of the year. The Shipping Federation in the spring appealed the Vancouver Fraser Port Authority’s then-proposed empty container fee, asking the Canadian Transportation Agency to intervene. The agency has not yet responded; a decision against the port authority could spur lawmakers to introduce legislation. A bill that would have allowed port users to challenge fees was introduced in the Canadian Parliament in 2023 but was never passed. Saying that the fee is under review, a spokesperson for the Vancouver port declined to comment. The fee for loading empty equipment onto vessels is half that of laden export containers, which is $35.15 per FEU. Shipping group pushes back According to the Shipping Federation of Canada, Vancouver has justified the fees in presentations to the industry, saying the handling of empty containers places wear and tear on infrastructure and the boxes take up terminal space, so the fees would help ease port congestion by encouraging movement of the containers. The shipping federation has countered by saying that the terminal operator, not the port authority, takes on such costs and that wharfage by its definition only applies to laden cargo. There’s a natural imbalance in the weight of inbound containers loaded with items such as toys and other retail items compared with outbound containers loaded with heavier agriculture and machinery exports, the shipping federation noted in a March 12 comment on Vancouver’s fee. Thus, it said, it’s not uncommon to “top off” outbound vessels with empty containers to optimize ship utilization. “The concept of incentivizing the carrier to fill more empties with export cargo makes no sense within such a context, as the vessel’s cargo carrying capacity is inherently constrained from both an operational and commercial perspective, and cannot simply be expanded in response to a new financial measure imposed by the port,” the federation wrote. The group added that the new fee disadvantages container transport versus bulk and multipurpose shipping and criticized the lack of transparency on how the fees would be invested in infrastructure. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Montreal joins Vancouver in levying empty container fee

<div class="phx-topic abstract-wrapper">A string of storms in September has roiled vessel schedules and terminal operations throughout the region.</div>

A string of storms in September has roiled vessel schedules and terminal operations throughout the region.

<div class="phx-topic">Ocean carriers are warning of skipped port calls, rerouted cargo and vessel delays on a raft of trans-Pacific and Asia-Europe and Asia-Mediterranean sailings over the next two weeks in the aftermath of the recent typhoons that have hit China. The threat of widespread disruption comes on the eve of China’s National Day holiday that starts Wednesday and is expected to last 10 days. <a href="https://www.joc.com/article/south-china-supply-chains-brace-for-years-strongest-typhoon-6084358">Typhoon Ragasa closed ports in southern China and Taiwan for three days last week</a>, Tropical Storm Mitag affected the Philippines and southeast China in mid-September and Typhoon Tapah struck the same region in early September. Hapag-Lloyd said its Gemini Cooperation services with partner Maersk are among those affected by the string of tropical cyclones. The most severely impacted are Gemini’s Pacific Southwest services, WC1 and WC3, with Nansha omitted this week on the trans-Pacific eastbound sailing by Gerd Maersk. Hapag-Lloyd said cargo will be rolled to the next WC1 voyage. Shanghai will also be omitted this week and next week on Gemini’s WC3 service to recover schedule reliability from delays caused by the typhoons, Hapag-Lloyd said. Sailings affected are those by GSL Lydia this week, with cargo transferred to the WC2 and US2 services, and by Norwalk next week, with cargo shifted to the US2 service operated by Kandla Express and US1 served by CCNI Algol. The delays follow call omissions last week at Yantian by the Gunvor Maersk due to Typhoon Ragasa. Hapag-Lloyd said cargo for Nansha has been discharged in both Vung Tau in Vietnam and Yantian, and will be carried back the Guangzhou international gateway port in three subsequent sailings. The carrier said the Dortmund Express operating Gemini’s Asia-US East Coast 1 service was late berthing at Yantian last Friday due to Ragasa after having already omitted Nansha on the same service due to Typhoon Tapah. Ocean Network Express (ONE) also highlighted delays of up to seven days on its Asia-Mediterranean MS1 and MD2 services due to the storms in the South China Sea. ONE confirmed a four-day delay by ACX Pearl operating its Japan-Straits-Malaysia service due to the disruption at Hong Kong and at Keelung in Taiwan. The carrier also said vessels are being delayed due to Typhoon Neoguri, which affected Japan and South Korea last week. CMA CGM also warned of vessel delays following port closures at Manila and Subic due to Typhoon Bualoi, which hit the Philippines over the weekend. Delays are also likely at Haiphong after Bualoi made landfall in northern Vietnam Monday, killing at least 30 people and causing extensive flooding. <h3>Congested ports gradually recovering </h3>Ports in south China are gradually recovering from the impact of Ragasa, with Hong Kong back to normal operations, but some Shenzhen terminals are still heavily congested. “The backlog [at Hong Kong and DaChan Bay] caused by Typhoon Ragasa has already been cleared,” a spokesperson for Hong Kong’s Modern Terminals told the Journal of Commerce Tuesday. A senior executive at a Hong Kong-based forwarder said Shenzhen’s western terminals, including Shekou and Chiwan, are still heavily congested. “The terminals will remain open during the extended National Day holiday and with factories closed for the holiday, this should provide [the terminals] with some respite to clear the backlog of cargo,” the executive told the Journal of Commerce Tuesday. Hapag-Lloyd said Shekou is still experiencing berthing delays of four to five days, with a five- to seven-day wait at Yantian. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Ocean carriers are warning of skipped port calls, rerouted cargo and vessel delays on a raft of trans-Pacific and Asia-Europe and Asia-Mediterranean sailings over the next two weeks in the aftermath of the recent typhoons that have hit China. The threat of widespread disruption comes on the eve of China’s National Day holiday that starts Wednesday and is expected to last 10 days. Typhoon Ragasa closed ports in southern China and Taiwan for three days last week , Tropical Storm Mitag affected the Philippines and southeast China in mid-September and Typhoon Tapah struck the same region in early September. Hapag-Lloyd said its Gemini Cooperation services with partner Maersk are among those affected by the string of tropical cyclones. The most severely impacted are Gemini’s Pacific Southwest services, WC1 and WC3, with Nansha omitted this week on the trans-Pacific eastbound sailing by Gerd Maersk. Hapag-Lloyd said cargo will be rolled to the next WC1 voyage. Shanghai will also be omitted this week and next week on Gemini’s WC3 service to recover schedule reliability from delays caused by the typhoons, Hapag-Lloyd said. Sailings affected are those by GSL Lydia this week, with cargo transferred to the WC2 and US2 services, and by Norwalk next week, with cargo shifted to the US2 service operated by Kandla Express and US1 served by CCNI Algol. The delays follow call omissions last week at Yantian by the Gunvor Maersk due to Typhoon Ragasa. Hapag-Lloyd said cargo for Nansha has been discharged in both Vung Tau in Vietnam and Yantian, and will be carried back the Guangzhou international gateway port in three subsequent sailings. The carrier said the Dortmund Express operating Gemini’s Asia-US East Coast 1 service was late berthing at Yantian last Friday due to Ragasa after having already omitted Nansha on the same service due to Typhoon Tapah. Ocean Network Express (ONE) also highlighted delays of up to seven days on its Asia-Mediterranean MS1 and MD2 services due to the storms in the South China Sea. ONE confirmed a four-day delay by ACX Pearl operating its Japan-Straits-Malaysia service due to the disruption at Hong Kong and at Keelung in Taiwan. The carrier also said vessels are being delayed due to Typhoon Neoguri, which affected Japan and South Korea last week. CMA CGM also warned of vessel delays following port closures at Manila and Subic due to Typhoon Bualoi, which hit the Philippines over the weekend. Delays are also likely at Haiphong after Bualoi made landfall in northern Vietnam Monday, killing at least 30 people and causing extensive flooding. Congested ports gradually recovering Ports in south China are gradually recovering from the impact of Ragasa, with Hong Kong back to normal operations, but some Shenzhen terminals are still heavily congested. “The backlog [at Hong Kong and DaChan Bay] caused by Typhoon Ragasa has already been cleared,” a spokesperson for Hong Kong’s Modern Terminals told the Journal of Commerce Tuesday. A senior executive at a Hong Kong-based forwarder said Shenzhen’s western terminals, including Shekou and Chiwan, are still heavily congested. “The terminals will remain open during the extended National Day holiday and with factories closed for the holiday, this should provide [the terminals] with some respite to clear the backlog of cargo,” the executive told the Journal of Commerce Tuesday. Hapag-Lloyd said Shekou is still experiencing berthing delays of four to five days, with a five- to seven-day wait at Yantian. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

International ports

Hapag-Lloyd, ONE warn of skipped calls, vessel delays due to Asian typhoons

<div class="phx-topic abstract-wrapper">The move by CSX to relieve Joe Hinrichs of his duties comes after Ancora Holdings urged the railroad’s board of directors to seek a merger with BNSF Railway or Canadian Pacific Kansas City in response to the UP-NS deal. </div>

The move by CSX to relieve Joe Hinrichs of his duties comes after Ancora Holdings urged the railroad’s board of directors to seek a merger with BNSF Railway or Canadian Pacific Kansas City in response to the UP-NS deal.

<div class="phx-topic">Joe Hinrichs was ousted as CEO of CSX Transportation on Sunday by the railroad’s board of directors, just over a month after an activist investor called for him to step down amid competitive pressures brought on by the proposed merger of Union Pacific Railroad and Norfolk Southern Railway. The CSX board named veteran business executive Steve Angel as CEO effective Sept. 28. “It has been a privilege to serve as CEO of CSX,” Hinrichs said in a statement from CSX. “I am proud of the progress we have made in improving performance, strengthening customer relationships, and building a culture centered on safety and collaboration.” While the move itself isn’t surprising, the timing of it was because Hinrichs attended a grand reopening of the Howard Street Tunnel in Baltimore last Friday and was scheduled to host another event this Thursday at the Blue Ridge Subdivision on the Tennessee-North Carolina border. At the Friday event, Hinrichs talked about how he was celebrating his third anniversary with CSX and looked forward to all the opportunities ahead in 2026 with both projects completed. Multiple sources told the Journal of Commerce that Hinrichs was unaware of his fate when attending the event in Baltimore and only learned of the decision afterward. Angel is an executive with over 45 years of experience leading large companies, including Praxair and Linde, two industrial gas companies that merged in 2018. Similar to Hinrichs, he has no prior railroading experience. “My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders,” Angel said in the CSX statement. “We believe [Angel’s] track record of driving operational excellence and cultivating strong relationships with key stakeholders, including partners and customers, makes him the ideal CEO to lead CSX into its next chapter,” Kevin Boone, CSX’s executive vice president and chief commercial officer, wrote in a letter to customers that was obtained by the Journal of Commerce. “Importantly ... [the] announcement does not change anything about our valued relationship with you. Our top priority remains delivering the reliable service you have come to expect from CSX.” <h3>Investor urged CSX to act </h3>The move by CSX to relieve Hinrichs of his duties comes after Ancora Holdings, an activist investor, urged the railroad’s board of directors in August to seek a merger with BNSF Railway or Canadian Pacific Kansas City in response to the UP-NS transaction. Without such a deal, Ancora called for a leadership change at CSX. “[We] urged the board to terminate [Hinrichs] if he could not quickly position CSX to catch up to the railroads that have embraced the need for transcontinental service in the United States,” Ancora said in a statement Monday. “As we expected, Mr. Hinrichs botched the opportunity and, if anything, appeared to try to fight the tailwinds of consolidation.” BNSF and CPKC have since stated they are not looking to merge or acquire any railroads, leaving Angel with the immediate responsibility of responding to the UP-NS transaction. Nevertheless, Ancora said Angel “is an initial step in the right direction for CSX.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Joe Hinrichs was ousted as CEO of CSX Transportation on Sunday by the railroad’s board of directors, just over a month after an activist investor called for him to step down amid competitive pressures brought on by the proposed merger of Union Pacific Railroad and Norfolk Southern Railway. The CSX board named veteran business executive Steve Angel as CEO effective Sept. 28. “It has been a privilege to serve as CEO of CSX,” Hinrichs said in a statement from CSX. “I am proud of the progress we have made in improving performance, strengthening customer relationships, and building a culture centered on safety and collaboration.” While the move itself isn’t surprising, the timing of it was because Hinrichs attended a grand reopening of the Howard Street Tunnel in Baltimore last Friday and was scheduled to host another event this Thursday at the Blue Ridge Subdivision on the Tennessee-North Carolina border. At the Friday event, Hinrichs talked about how he was celebrating his third anniversary with CSX and looked forward to all the opportunities ahead in 2026 with both projects completed. Multiple sources told the Journal of Commerce that Hinrichs was unaware of his fate when attending the event in Baltimore and only learned of the decision afterward. Angel is an executive with over 45 years of experience leading large companies, including Praxair and Linde, two industrial gas companies that merged in 2018. Similar to Hinrichs, he has no prior railroading experience. “My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders,” Angel said in the CSX statement. “We believe [Angel’s] track record of driving operational excellence and cultivating strong relationships with key stakeholders, including partners and customers, makes him the ideal CEO to lead CSX into its next chapter,” Kevin Boone, CSX’s executive vice president and chief commercial officer, wrote in a letter to customers that was obtained by the Journal of Commerce. “Importantly ... [the] announcement does not change anything about our valued relationship with you. Our top priority remains delivering the reliable service you have come to expect from CSX.” Investor urged CSX to act The move by CSX to relieve Hinrichs of his duties comes after Ancora Holdings, an activist investor, urged the railroad’s board of directors in August to seek a merger with BNSF Railway or Canadian Pacific Kansas City in response to the UP-NS transaction. Without such a deal, Ancora called for a leadership change at CSX. “[We] urged the board to terminate [Hinrichs] if he could not quickly position CSX to catch up to the railroads that have embraced the need for transcontinental service in the United States,” Ancora said in a statement Monday. “As we expected, Mr. Hinrichs botched the opportunity and, if anything, appeared to try to fight the tailwinds of consolidation.” BNSF and CPKC have since stated they are not looking to merge or acquire any railroads, leaving Angel with the immediate responsibility of responding to the UP-NS transaction. Nevertheless, Ancora said Angel “is an initial step in the right direction for CSX.” Contact Ari Ashe at ari.ashe@spglobal.com .

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CSX CEO removed amid activist pressure in wake of UP-NS merger

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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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<div class="phx-topic abstract-wrapper">A regulation change that went into effect over the weekend allows Beijing to penalize and block vessels from countries that it accuses of targeting its own shipping activities. </div>

A regulation change that went into effect over the weekend allows Beijing to penalize and block vessels from countries that it accuses of targeting its own shipping activities.

<div class="phx-topic">China has amended its maritime regulations to allow it to penalize and restrict vessels of countries accused of targeting its shipping operations, flexing its power and raising the stakes just two weeks before a US tax on Chinese operators and shipbuilding takes effect. China Premier Li Qiang has signed into law an amendment that took effect Sunday, laying the groundwork for China to block not just vessels, but also data, information and other maritime services of other countries it wishes to target, according to an order from China’s State Council seen by the Journal of Commerce. The amendment keeps the door open for conciliation through treaties and agreements, which comes as the Trump administration seeks to negotiate a larger trade deal with China. The move by Beijing comes ahead of the Oct. 14 date when US Customs and Border Protection will begin collecting special taxes on ships calling US ports that are operated by China-based companies or were built in China. The US has accused China of unfairly subsidizing its shipbuilding industry to establish global maritime dominance and is leveling the sharpest taxes on Cosco Shipping and its OOCL subsidiary. Container lines not based in China <a href="https://www.joc.com/article/chinese-tonnage-moving-out-of-us-container-trade-ahead-of-new-fees-xeneta-6081320">have shifted China-built ships out of US services</a> and replaced them with vessels from South Korea and elsewhere to avoid the new fees. Major carriers including <a href="https://www.joc.com/article/msc-ready-for-us-port-fees-after-network-changes-ceo-6079762">Maersk and Mediterranean Shipping Co.</a> have said in recent weeks they won’t need to levy a surcharge to recoup costs from the new fee. Cosco and OOCL, which together handle the largest share of US imports from Asia, have signaled they will continue to operate in the US trades. The port fees, <a href="https://www.joc.com/article/us-port-fees-could-exceed-2b-for-cosco-oocl-hsbc-6077305">estimated by investment bank HSBC to cost the two Chinese carriers at least $2 billion in the first year</a>, will rise incrementally over the next four years. The US Trade Representative (USTR) is expected in the coming week to release an FAQ regarding the so-called Section 301 investigation into China’s maritime activities and respond to requests for clarifications and changes on the US new tax, according to one person close to the matter. The investigation targets Chinese-built chassis, container equipment and cranes, some of which are being <a href="https://www.joc.com/article/freeport-pays-crane-tariffs-to-avoid-ustr-fee-risk-6087337">received by US ports this month before the Oct. 14 deadline</a>. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

China has amended its maritime regulations to allow it to penalize and restrict vessels of countries accused of targeting its shipping operations, flexing its power and raising the stakes just two weeks before a US tax on Chinese operators and shipbuilding takes effect. China Premier Li Qiang has signed into law an amendment that took effect Sunday, laying the groundwork for China to block not just vessels, but also data, information and other maritime services of other countries it wishes to target, according to an order from China’s State Council seen by the Journal of Commerce. The amendment keeps the door open for conciliation through treaties and agreements, which comes as the Trump administration seeks to negotiate a larger trade deal with China. The move by Beijing comes ahead of the Oct. 14 date when US Customs and Border Protection will begin collecting special taxes on ships calling US ports that are operated by China-based companies or were built in China. The US has accused China of unfairly subsidizing its shipbuilding industry to establish global maritime dominance and is leveling the sharpest taxes on Cosco Shipping and its OOCL subsidiary. Container lines not based in China have shifted China-built ships out of US services and replaced them with vessels from South Korea and elsewhere to avoid the new fees. Major carriers including Maersk and Mediterranean Shipping Co. have said in recent weeks they won’t need to levy a surcharge to recoup costs from the new fee. Cosco and OOCL, which together handle the largest share of US imports from Asia, have signaled they will continue to operate in the US trades. The port fees, estimated by investment bank HSBC to cost the two Chinese carriers at least $2 billion in the first year , will rise incrementally over the next four years. The US Trade Representative (USTR) is expected in the coming week to release an FAQ regarding the so-called Section 301 investigation into China’s maritime activities and respond to requests for clarifications and changes on the US new tax, according to one person close to the matter. The investigation targets Chinese-built chassis, container equipment and cranes, some of which are being received by US ports this month before the Oct. 14 deadline . Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Supply chain

Transport, Trade and Regulation News

China flexes maritime power in response to coming US port fee

<div class="phx-topic abstract-wrapper">The shipbuilding interest would follow the carrier’s recent trio of container vessel reflaggings in India as it looks to develop a stronger profile in the subcontinent market. </div>

The shipbuilding interest would follow the carrier’s recent trio of container vessel reflaggings in India as it looks to develop a stronger profile in the subcontinent market.

<div class="phx-topic">CMA CGM is set to become the first major ocean carrier to build container ships in India, ordering three short-haul box ships with Cochin Shipyard Ltd. (CSL), India’s largest facility, industry sources tell the Journal of Commerce. While the final details are still being worked out, the planned newbuildings will most likely be liquefied natural gas (LNG)-powered vessels. An official announcement is expected in the coming weeks, but a CSL executive who did not want to be identified confirmed ongoing talks with CMA CGM, who did not respond to a request for comment. The shipbuilding interest builds on the carrier’s recent trio of container vessel reflaggings in India, with the CMA CGM Vitoria, CMA CGM Manaus and CMA CGM Diamond now part of a regional India-Red Sea “BIGEX” loop it runs jointly with two Middle East-based feeder operators. <h3>Government investing in shipbuilding </h3>The Indian government has been seeking industry support to rev up the country’s shipbuilding ecosystems through liberalization policies and incentive schemes, a push turbo-charged this week with the announcement of a whopping $8 billion maritime investment package. “The package introduces a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation and policy reforms to create a robust maritime infrastructure,” an official statement from the government said. CSL has already agreed to collaborate with South Korea’s HD Korea Shipbuilding &amp; Offshore Engineering on shipbuilding projects, with those efforts having yielded some positive results. Maersk in early 2025 struck a deal with CSL for ship repair/drydocking services in a near-term diversification strategy, with the potential to pursue shipbuilding opportunities in the longer term. “Our partnership with CSL is progressing well,” a Maersk spokesperson said. “We endeavor to have our first ship repair soon.” In another shot in the arm, Swan Defence and Heavy Industries -- India's largest private shipyard -- on Tuesday announced it had formed a strategic alliance with South Korea's Samsung Heavy Industries to jointly explore shipbuilding and heavy engineering projects.Mediterranean Shipping Co., the largest global operator of container tonnage, has also shown interest in Indian shipbuilding. MSC CEO Soren Toft in February met with Piyush Goyal, India’s minister of commerce and industry, to discuss a number of items, including shipbuilding and repair, according to local reports. Still, shipbuilding is not a “low-hanging fruit” opportunity for India to reap quickly because of its vast infrastructure and cost gaps with traditional marketplaces in East Asia, industry observers say. “Except for two yards, none of the [Indian] yards have a capacity of more than 10,000 deadweight tons, so the ships that we build will be limited to that size only,” said a local shipowner who did not want to be identified. “We have made some inquiries and found that our yards are completely priced out.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM is set to become the first major ocean carrier to build container ships in India, ordering three short-haul box ships with Cochin Shipyard Ltd. (CSL), India’s largest facility, industry sources tell the Journal of Commerce. While the final details are still being worked out, the planned newbuildings will most likely be liquefied natural gas (LNG)-powered vessels. An official announcement is expected in the coming weeks, but a CSL executive who did not want to be identified confirmed ongoing talks with CMA CGM, who did not respond to a request for comment. The shipbuilding interest builds on the carrier’s recent trio of container vessel reflaggings in India, with the CMA CGM Vitoria, CMA CGM Manaus and CMA CGM Diamond now part of a regional India-Red Sea “BIGEX” loop it runs jointly with two Middle East-based feeder operators. Government investing in shipbuilding The Indian government has been seeking industry support to rev up the country’s shipbuilding ecosystems through liberalization policies and incentive schemes, a push turbo-charged this week with the announcement of a whopping $8 billion maritime investment package. “The package introduces a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation and policy reforms to create a robust maritime infrastructure,” an official statement from the government said. CSL has already agreed to collaborate with South Korea’s HD Korea Shipbuilding & Offshore Engineering on shipbuilding projects, with those efforts having yielded some positive results. Maersk in early 2025 struck a deal with CSL for ship repair/drydocking services in a near-term diversification strategy, with the potential to pursue shipbuilding opportunities in the longer term. “Our partnership with CSL is progressing well,” a Maersk spokesperson said. “We endeavor to have our first ship repair soon.” In another shot in the arm, Swan Defence and Heavy Industries -- India's largest private shipyard -- on Tuesday announced it had formed a strategic alliance with South Korea's Samsung Heavy Industries to jointly explore shipbuilding and heavy engineering projects. Mediterranean Shipping Co., the largest global operator of container tonnage, has also shown interest in Indian shipbuilding. MSC CEO Soren Toft in February met with Piyush Goyal, India’s minister of commerce and industry, to discuss a number of items, including shipbuilding and repair, according to local reports. Still, shipbuilding is not a “low-hanging fruit” opportunity for India to reap quickly because of its vast infrastructure and cost gaps with traditional marketplaces in East Asia, industry observers say. “Except for two yards, none of the [Indian] yards have a capacity of more than 10,000 deadweight tons, so the ships that we build will be limited to that size only,” said a local shipowner who did not want to be identified. “We have made some inquiries and found that our yards are completely priced out.” Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM eyes shipbuilding plans for India in trade diversification strategy: sources

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

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

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

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

CPKC pushes back on NS complaint over Meridian track access

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

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

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

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

North-American rail

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

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

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

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

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

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