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FedEx forecasts strong profits for LTL division

FedEx expects its trucking operating profits to keep rising, despite what could be a rocky economic road in the second half of 2022, executives said at an investor meeting.

New House legislation would entice carriers to haul US exports

Hot on the heels of major shipping reform signed into law, two California Congressmen have introduced a bill that would incentivize vessels to carry US ag exports or call multiple US ports.

Chaotic ‘spillover’ market reveals value of breakbulk shipping skills

Old-fashioned breakbulk and supply chain skills have served shippers well in the “spillover” market, and some practices may linger after the container market normalizes.

Frontloading by US retailers driving inventory buildup

As US consumer sentiment fell to record lows in June, some retailers are sitting on higher inventory than expected heading into peak shipping season.

Freight growth to continue despite inflation, rising oil prices: economists

Modest growth in freight volumes will continue in the second half of the year even if inflation and oil prices remain high, according to trade economists who spoke at the SMC3 conference this week.

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Flexport leadership change suggests lack of market-defining progress

Flexport CEO Ryan Petersen will hand over the reins to Amazon logistics vet Dave Clark, a move that shows the forwarder’s lure for heavyweight talent — and possibly an acknowledgement of slower-than-expected market share gains.

Early peak season, mixed signals to test Asia-US rate strength

Forwarders say they expect an earlier-than-usual peak season that will lift trans-Pacific spot rates that have been easing, but the trimming of retail orders and front-loading of cargo cloud the longer-term outlook for the health of Asian imports.

Shippers adapting to ‘realignment’ of US trucking capacity, rates

The cooling of trucking’s transactional spot market signals a “realignment,” not a contraction, as shippers cement contractual agreements and freight demand rises, albeit more slowly.

Hapag-Lloyd agrees to increased $2 million penalty in detention case

Container line Hapag-Lloyd has settled with the Federal Maritime Commission over improperly charging detention to a California drayage carrier in mid-2021, a bellwether case in the long-running issue of free time fee assessments.

Chassis shortage forces NS to adjust rules on free time, container fees

The chassis shortage is affecting Norfolk Southern despite a 5.1 percent decline in volumes handled by the railroad between January and May compared with the same period in 2021.

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The pricing data found here allows shippers and transport providers to more accurately benchmark and forecast for their supply chains. The various spot prices and indices are collected from third-party sources and updated weekly, monthly and quarterly, depending on the data set.

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Maritime News

Frontloading by US retailers driving inventory buildup

To get ahead of shipping delays, some retailers already have Christmas inventory on the water or in stores. Photo credit: Hit1912/Shutterstock.com.

As US consumer sentiment fell to record lows in June, some retailers are sitting on higher inventory than expected heading into peak shipping season.

Freight growth to continue despite inflation, rising oil prices: economists

US gross domestic product is forecasted to increase 2.4 percent in 2022, in line with average annual GDP growth in pre-COVID years. Photo credit: Shutterstock.com.

Modest growth in freight volumes will continue in the second half of the year even if inflation and oil prices remain high, according to trade economists who spoke at the SMC3 conference this week.

Jaxport hopes for Asia freight rebound after dredging, terminal upgrades

One of Jaxport’s main container terminals will still be limited to Panamax ship calls only, but demand for that capacity is still strong. Photo credit: Jacksonville Port Authority.

Jacksonville Port Authority’s chief executive sees a chance to reverse a downward trend in the port’s Asia business with the completion of dredging and marine terminal improvements that will allow post-Panamax ships to call.

India-Europe string curtails port calls amid schedule reliability woes

To mitigate the risk of disruptions, Hapag-Lloyd has suggested Indian customers consider options via Jebel Ali for eastbound movement and through available Mundra calls for westbound shipments. Photo credit: Hapag-Lloyd.

The Indian Ocean Service, a weekly connection between West India and North Europe, will operate with truncated port coverage on eight upcoming sailings between July and September.

Trucking News

Trucking Logistics

FedEx forecasts strong profits for LTL division

FedEx told investors that operating margins at trucking arm FedEx Freight will hit 20 to 22 percent by fiscal 2025, after reaching 17.4 percent in fiscal 2022. Photo credit: Shutterstock.com.

FedEx expects its trucking operating profits to keep rising, despite what could be a rocky economic road in the second half of 2022, executives said at an investor meeting.

LTL outlook strong despite economic fears: SMC3

LTL’s pricing discipline and expanded role in international shipments are seen as an advantage in a weakening economy. Photo credit: Shutterstock.com.

The less-than-truckload industry is positioned to ride through a rocky soft patch in the economy and even a short recession with higher pricing, carrier executives at the SMC3 Connections conference said.

DB Schenker to buy USA Truck for $435 million

After an operational and financial turnaround, USA Truck will serve as a more profitable platform for US growth for Germany’s DB Schenker. Photo credit: USA Truck/DB Schenker.

European logistics company DB Schenker will offer US shippers a more integrated package of domestic and international services by adding truckload carrier USA Truck to its Land Transport division.

Arrive testing matchmaker role between small carriers, private fleets

Arrive Logistics Chief Strategy Officer J-Ann Tio said the broker would, if successful, eventually build technology to underpin an ongoing pilot project connecting small operators with private fleets. Photo credit: Shutterstock.com.

Arrive Logistics is seeking to help owner-operators navigate a slowing freight market by opening opportunities to private fleets, which grew in number during the capacity-constrained pandemic period.

Port News

European unions prepare workers for summer of strikes

Transport workers held a series of “warning strikes” in several German ports over the past two weeks as wage negotiations between the union and employers stalled. Photo credit: Shutterstock.com.

After two years of keeping supply chains moving in a heavily disrupted logistics sector, and now facing rapidly rising inflation, transport worker unions in Europe are turning up the heat on employers.

Jaxport hopes for Asia freight rebound after dredging, terminal upgrades

Brazil–US freight rates spike amid tight capacity, port congestion

Santos–New York spot ocean rates rose from $7,400 per FEU in February to $8,400 per FEU in June. Photo credit: Stefan Lambauer/Shutterstock.com.

Northbound capacity from Brazil to the US is tight due to ongoing strength in US imports, a reality that has boosted freight rates and is likely to continue until at least the fourth quarter of 2022.

SC Ports implements fluidity measures ahead of peak season

Laden imports into Charleston rose 14.2 percent in May compared with a year ago, and were up 23 percent through the first five months of the year. Photo credit: English Purcell/South Carolina Ports Authority.

The South Carolina Ports Authority will extend Sunday hours for truckers through September, one of several initiatives officials believe will help the port navigate the upcoming peak season.

Technology News

Technology

Sedna consolidates email automation space with startup acquisition

The sale of Shelly is the second deal founders Warren Kucker and Joe Caprara have made in recent weeks after selling their freight procurement platform Boxton to a logistics company in May. Photo credit: Shutterstock.com.

Two logistics-focused email automation specialists are joining forces, with London-based Sedna acquiring San Diego-based Shelly to accelerate the former’s ability to automate email data extraction for logistics teams.

Container sensor usage to explode through 2026: Drewry

Approximately a third of reefer and intermodal containers were equipped with trackable devices at the end of 2021, compared with only 0.3 percent of the global dry box fleet. Photo credit: Shutterstock.com.

Container lines flush with cash will accelerate deployment of container sensors through 2026, spurred by pandemic-induced volatility and Hapag-Lloyd's April decision to equip its entire fleet, according to Drewry.

Transporeon touts freight matching as solution to ‘double brokering’

Transporeon said the new product is designed to avoid the inefficiencies of double brokering, a prevalent practice in Europe when brokers subcontract to other service providers. Photo credit: Shutterstock.com.

Freight procurement specialist Transporeon has added a freight matching component to its product suite to help brokers tender spot freight to carriers already in their network.

New partnership gives FourKites access to FedEx data trove

FedEx has invested an undisclosed amount into FourKites as part of the partnership, with has bolstered the Chicago-based visibility provider’s valuation above $1 billion, CEO Mathew Elenjickal told JOC.com. Photo credit: Shutterstock.com.

FourKites will get access to previously internal shipment data from FedEx to train its predictive visibility system as part of a new planning and problem resolution platform called FourKites X.

Breakbulk News

Breakbulk

Chaotic ‘spillover’ market reveals value of breakbulk shipping skills

AAL’s multipurpose AAL Brisbane transporting a deckload of containers in 2021. Photo credit: AAL.

Old-fashioned breakbulk and supply chain skills have served shippers well in the “spillover” market, and some practices may linger after the container market normalizes.

Breakbulk demand heating up as spillover market plateaus

A 1,353-mt absorber bound for Qatar’s massive LNG project aboard the Jumbo Javelin at the Port of Singapore. Photo credit: Piet Sinke.

Millions of tons of project cargo freight will be moving soon as energy projects, including Qatar’s massive LNG facility, gather steam, logistics executives say.

‘Spillover’ cargo market shows signs of waning

Amazon containers being discharged at the Port of Houston's City Docks breakbulk terminal. Photo credit: Port Houston.

Softening container rates are expected to pull “spillover” cargo back from the breakbulk sector, but the just-ended COVID lockdowns in China may slow a market normalization.

Container shippers tapping ro/ro capacity amid tight vessel space

Containerized US imports arriving on ro/ro ships jumped 46.4 percent year over year to 13,929 TEU in the first five months of 2022. Photo credit: Shutterstock.com.

Container ship capacity has become so scarce that cargoes are spilling over not only to breakbulk and multipurpose vessels, but to the roll-on/roll-off sector as well.

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