<div class="phx-topic abstract-wrapper">California drayage companies are not rushing to take advantage of new legislation that could shield them from fines and penalties if they classify their independent contractor drivers as employees. 
 
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California drayage companies are not rushing to take advantage of new legislation that could shield them from fines and penalties if they classify their independent contractor drivers as employees.

<div>California <a>drayage</a> companies aren’t rushing to take advantage of new legislation that could shield them from fines and penalties if they classify their independent contractor drivers as employees.“I haven’t heard anybody claiming to take advantage of the <a>amnesty</a> offer,” Weston LaBar, executive director of the Harbor Trucking Association of Southern California, said Monday.The Teamsters union, though, thinks the state’s offer is a good one for drayage companies. “With port drivers having filed 799 wage-theft claims with the Department of Labor Standards Enforcement and winning every decision, amnesty offers an olive branch to help port trucking companies that want to come...

California drayage companies aren’t rushing to take advantage of new legislation that could shield them from fines and penalties if they classify their independent contractor drivers as employees. “I haven’t heard anybody claiming to take advantage of the amnesty offer,” Weston LaBar, executive director of the Harbor Trucking Association of Southern California, said Monday. The Teamsters union, though, thinks the state’s offer is a good one for drayage companies. “With port drivers having filed 799 wage-theft claims with the Department of Labor Standards Enforcement and winning every decision, amnesty offers an olive branch to help port trucking companies that want to come into compliance with California labor laws and to stop misclassifying their drivers,” said Fred Potter, Teamsters vice president and director of the union’s port division. During the past five years, the Teamsters union has been attempting to organize harbor truck drivers at ports across the country, and owner-operators in Los Angeles-Long Beach have been the most receptive to the union’s efforts. However, independent contractors by law cannot be organized, so the Teamsters have organized job actions and supported claims by drivers in labor-friendly states such as California that attempt to show the companies exert enough control over their daily work patterns to constitute direct employment. California’s labor commissioner during the weekend cited Assembly Bill 621, approved by Gov. Jerry Brown Oct. 10, 2015, which gives motor carriers until Jan. 1, 2017, to convert their independent contractor drivers to employees. The companies will sign a settlement agreement with the state to pay all wages and benefits due to the drivers, and state taxes and agency charges for reviewing and approving the settlement agreement. Motor carriers would then be relieved of statutory and civil penalties for drivers who had been misclassified. LaBar said harbor trucking companies in Southern California are not rushing to participate in the amnesty program “because they feel they haven’t misclassified the drivers.” He noted that some companies have employee drivers, many contract with independent owner-operators and some companies have both. It is common now for motor carriers not to be prescriptive, but rather, to ask the drivers when they join the companies if they want to be independent contractors or employees. The employee drivers are paid by the hour, usually starting at about $20 to $22, plus benefits. Most of the drivers prefer to remain independent, and they are paid by the trip, LaBar said. A study by Southern California economist John Husing concluded that independent contractor drivers on average earn more than employee drivers. Potter told the 16th TPM Conference in Long Beach in March that some companies place all of the requirements of being an employee on the drivers, but none of the benefits or security of employment. Potter said that a number of drivers at U.S. ports want to be employees for various reasons, and misclassification suits settled in their favor have resulted in millions of dollars of restitution for wage theft and other infractions of labor laws. Contact Bill Mongelluzzo at bill.mongelluzzo@ihs.com and follow him on Twitter: @billmongelluzzo .

Drayage

California drayage companies cool to classification amnesty

<div class="phx-topic abstract-wrapper">The South Coast Air Quality Management District governing board has approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero or near-zero-emission trucks, locomotives and cargo handling equipment.</div>

The South Coast Air Quality Management District governing board has approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero or near-zero-emission trucks, locomotives and cargo handling equipment.

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<div class="phx-topic">The ports of Los Angeles and Long Beach will work closely with the regional emissions regulatory agency to develop and deliver infrastructure to support zero-emission trucks and cargo-handling equipment over the next decade. The South Coast Air Quality Management District (AQMD) governing board on Friday approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero- or near-zero-emission trucks, locomotives and cargo handling equipment, with the AQMD verifying progress through annual reports. The “cooperative agreement” will be implemented in three phases over the coming decade, giving port stakeholders the time they will need to attain the pollution-reduction goals outlined by the regulatory agency, the AQMD said in a statement. “This is a milestone more than a decade in the making and reflects a collective commitment to cleaner air for the South Coast region,” said Venessa Delgado, chair of the AQMD’s governing board. Port stakeholders generally support the cooperative agreement, saying it sets realistic timelines for each industry sector to achieve the overall goal of reducing harmful emissions without artificially “capping” cargo growth at the largest US port complex. “We want it to be as flexible as possible rather than being regulated into this under the ISR [Indirect Source Rule] approach,” Robert Loya, CEO of the Harbor Trucking Association, told the Journal of Commerce Monday. The cooperative <a href="https://www.joc.com/article/la-lb-port-interests-spar-with-agency-over-emissions-rule-under-development-5223229">approach replaces the mandates in the agency’s ISR announced by the AQMD in 2021.</a>“The real-world transition to zero emissions is an ambitious, complicated and expensive proposition,” Mike Jacob, president of the Pacific Merchant Shipping Association, which represents shipping lines and terminal operators on the West Coast, said in a statement. “While the cooperative agreement’s implementation schedules will be aggressive, it allows for new technologies to fail before they succeed.” The ports will develop comprehensive plans that recognize the progress and limitations of various technologies in each transportation sector. AQMD will verify progress through annual reports and regular reporting to its governing board. Penalties for noncompliance range from $50,000 to $200,000 per default and will be used toward projects benefiting communities near the ports, AQMD said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The ports of Los Angeles and Long Beach will work closely with the regional emissions regulatory agency to develop and deliver infrastructure to support zero-emission trucks and cargo-handling equipment over the next decade. The South Coast Air Quality Management District (AQMD) governing board on Friday approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero- or near-zero-emission trucks, locomotives and cargo handling equipment, with the AQMD verifying progress through annual reports. The “cooperative agreement” will be implemented in three phases over the coming decade, giving port stakeholders the time they will need to attain the pollution-reduction goals outlined by the regulatory agency, the AQMD said in a statement. “This is a milestone more than a decade in the making and reflects a collective commitment to cleaner air for the South Coast region,” said Venessa Delgado, chair of the AQMD’s governing board. Port stakeholders generally support the cooperative agreement, saying it sets realistic timelines for each industry sector to achieve the overall goal of reducing harmful emissions without artificially “capping” cargo growth at the largest US port complex. “We want it to be as flexible as possible rather than being regulated into this under the ISR [Indirect Source Rule] approach,” Robert Loya, CEO of the Harbor Trucking Association, told the Journal of Commerce Monday. The cooperative approach replaces the mandates in the agency’s ISR announced by the AQMD in 2021. “The real-world transition to zero emissions is an ambitious, complicated and expensive proposition,” Mike Jacob, president of the Pacific Merchant Shipping Association, which represents shipping lines and terminal operators on the West Coast, said in a statement. “While the cooperative agreement’s implementation schedules will be aggressive, it allows for new technologies to fail before they succeed.” The ports will develop comprehensive plans that recognize the progress and limitations of various technologies in each transportation sector. AQMD will verify progress through annual reports and regular reporting to its governing board. Penalties for noncompliance range from $50,000 to $200,000 per default and will be used toward projects benefiting communities near the ports, AQMD said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

Transport, Trade and Regulation News

Port infrastructure

North American ports

Marine terminals

Maritime

LA-LB emissions agreement with AQMD sets realistic timelines: stakeholders

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

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

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

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

Rail News

Intermodal providers

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

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

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

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

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

Container lines

Trans-Pacific

International ports

Container Shipping News

USTR port fee pause broadly welcomed, but labor decries ‘free pass’ for China

<div class="phx-topic abstract-wrapper">Lured by shorter voyage times and commensurate cost savings, shipping companies have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago.</div>

Lured by shorter voyage times and commensurate cost savings, shipping companies have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago.

<div class="phx-topic">Shorter transits and cost savings are luring more multipurpose vessel (MPV) carriers into Arctic waters, with a jump in sailings through the Northern Sea Route in Russia this year and a steady flow of traffic through the Northwest Passage in Canada. Norway’s Centre for High North Logistics, which tracks vessels through the Northern Sea Route, reported 52 voyages up to the end of August, the latest figures available, in a season that usually lasts until November. At the same time last year, the Centre reported 30 transits. Western sanctions on Russia due to the war in Ukraine meant most using the Northern Sea Route were Russian- or Chinese-controlled operators, including Fesco and Hong Kong Top Honor Shipping, which sailed its multipurpose vessels Sunny Grace and Sunny Faith through the region this year. The Scott Polar Research Institute (SPRI), which monitors shipping along the Northwest Passage, recorded 35 transits in this year’s sailing season between August and October, similar to the 38 voyages in 2024. Highlighting the potential advantages of both routes, Guus van der Linde, spokesperson at Netherlands-headquartered MPV operator Royal Wagenborg, told the Journal of Commerce: “During a limited period a year, the Northwest Passage presents an alternative to the Panama Canal for certain types of vessels and shipping routes, resulting in a reduced transit time, cost savings and strategic flexibility.” The company said that for one voyage, the Northwest Passage was 3,750 nautical miles shorter than the traditional route via the Panama Canal, resulting in about 14 days less sailing and thus a reduction in emissions of over 40%. The Northern Sea Route offers a 3,000-mile savings versus the Suez Canal. <h3>Multipurpose carriers demonstrate interest </h3>Lured by shorter voyage times and commensurate cost savings, Wagenborg is among a raft of shipping companies that have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago. Wagenborg, which has previously described its Arctic operations as “knocking on the door of the North Pole,” has steadily increased the number of voyages via the Northwest Passage since its first voyage in 2016. “Wagenborg has completed over 50 successful commercial transits of the Northwest Passage, establishing a proven track record ... in a route in global shipping that is gaining importance and number of transits,” van der Linde said. Those transits include seven in the 2024 season and four this year, with Wagenborg vessels being the first and last ships to enter the Northwest Passage for the 2025 season, according to the SPRI. The Atlanticborg  was the first vessel to transit the route at the start of this year’s season on Aug. 6, while the ill-fated Thamesborg, which grounded in Franklin Strait, closed the transit season on Oct. 14 after being trapped for 33 days. Van der Linde said the advantages of shorter voyages and cost savings have to be weighed against the challenges of ice navigation, seasonal limitations and environmental protection. “All transits are undertaken with extensive planning, including the use of low-sulfur marine gas oil, a relatively slow operating speed, and enhanced navigation and communication systems,” he said. The carrier has a fleet of 33 ice-class ships ranging between 4,300 and 22,000 deadweight metric tons (dwt). According to the SPRI, Wagenborg’s voyages this year have included cargo from Finland to Indonesia onboard the 15,750-dwt Alaskaborg and cargo from Turkey to Canada’s Bathurst inlet shipped by the 19,500-dwt Taagborg, which continued to China. The 15,570-dwt Atlanticborg also made an unusual return transit through the Norwest Passage after transporting cargo from Québec to South Korea and returning with anodes from China to Québec. Other multipurpose and heavy-lift vessel operators, including BigLift Shipping, have used Arctic routes in the past, although the company said none of its ships have used the Canadian Arctic route since 2023.   The grounding of the Thamesborg, which was carrying anodes from China to Quebec, highlighted the perils of Arctic sailing. “We regret that even with every known technology and safeguard in play, the grounding of Thamesborg occurred,” van der Linde said. <h3>Arctic transits come with significant challenges </h3>Unlike blue ocean sailing via the Panama Canal and southern Africa, navigating the Canadian and Russian archipelagos in the Arctic is often done at slow speeds to maneuver through the many inlets and avoid treacherous shoals. There are seven routes through the Northwest Passage, according to the Scott Polar Research Institute. The challenges have led to a cautious approach by other operators. James Jung, director of South Korean heavy-lift vessel operator CY Shipping, said the company, which operates a joint fleet with BigLift Shipping of eight ships, has carried out studies on using the Northwest Passage and Northern Sea Route. The carrier’s ships are not ice-classed and therefore subject to a limited navigation period for both routes during the northern summer and fall. The carrier also identified the high cost of employing ice pilots as a deterrent to using Arctic routes. “I don’t think we will transit via the Northern Sea Route so soon because of the ongoing Ukraine war and sanctions,” Jung told the Journal of Commerce. Jung also explained there are very few heavy-lift project cargoes destined for North America’s high-north, “so carriers can still make use of the Panama Canal” because the benefits of voyage time and cost of using the Northwest Passage aren’t there.  Polar sailing, though, is captivating the South Korean government, which recently made the commercialization of Arctic Sea routes one of its priorities in the five-year development blueprint for its maritime sector. The plan proposes the development of ports and related logistics hubs for Arctic cargo, plus government subsidies for new icebreaking ships. As part of that effort, the South Korean government organized a briefing at the Korea Shipping Association headquarters in Seoul on Oct. 31 to garner and encourage carrier interest in northern shipping routes, which the government sees as a new growth engine for the economy. The government is especially focused on developing the Northern Sea Route through the Russian Arctic. “Since South Korea conducted a total of five trial operations between 2013 and 2016, national shipping companies’ interest in the Northern Sea Route has been low,” the Ministry of Oceans and Fisheries said in a statement. “But national shipping companies have recently expressed a lot of interest in the government’s policy of developing the Northern Sea Route.” The ministry expects to organize further meetings to discuss additional trial voyages next year. Heo Man-wook, director of the ministry’s shipping and logistics bureau, said the Arctic Sea routes have enormous economic potential. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Shorter transits and cost savings are luring more multipurpose vessel (MPV) carriers into Arctic waters, with a jump in sailings through the Northern Sea Route in Russia this year and a steady flow of traffic through the Northwest Passage in Canada. Norway’s Centre for High North Logistics, which tracks vessels through the Northern Sea Route, reported 52 voyages up to the end of August, the latest figures available, in a season that usually lasts until November. At the same time last year, the Centre reported 30 transits. Western sanctions on Russia due to the war in Ukraine meant most using the Northern Sea Route were Russian- or Chinese-controlled operators, including Fesco and Hong Kong Top Honor Shipping, which sailed its multipurpose vessels Sunny Grace and Sunny Faith through the region this year. The Scott Polar Research Institute (SPRI), which monitors shipping along the Northwest Passage, recorded 35 transits in this year’s sailing season between August and October, similar to the 38 voyages in 2024. Highlighting the potential advantages of both routes, Guus van der Linde, spokesperson at Netherlands-headquartered MPV operator Royal Wagenborg, told the Journal of Commerce: “During a limited period a year, the Northwest Passage presents an alternative to the Panama Canal for certain types of vessels and shipping routes, resulting in a reduced transit time, cost savings and strategic flexibility.” The company said that for one voyage, the Northwest Passage was 3,750 nautical miles shorter than the traditional route via the Panama Canal, resulting in about 14 days less sailing and thus a reduction in emissions of over 40%. The Northern Sea Route offers a 3,000-mile savings versus the Suez Canal. Multipurpose carriers demonstrate interest Lured by shorter voyage times and commensurate cost savings, Wagenborg is among a raft of shipping companies that have dipped their propellers into the frigid Arctic waters since the northerly routes became commercially viable due to warmer conditions about 15 years ago. Wagenborg, which has previously described its Arctic operations as “knocking on the door of the North Pole,” has steadily increased the number of voyages via the Northwest Passage since its first voyage in 2016. “Wagenborg has completed over 50 successful commercial transits of the Northwest Passage, establishing a proven track record ... in a route in global shipping that is gaining importance and number of transits,” van der Linde said. Those transits include seven in the 2024 season and four this year, with Wagenborg vessels being the first and last ships to enter the Northwest Passage for the 2025 season, according to the SPRI. The Atlanticborg  was the first vessel to transit the route at the start of this year’s season on Aug. 6, while the ill-fated Thamesborg, which grounded in Franklin Strait, closed the transit season on Oct. 14 after being trapped for 33 days. Van der Linde said the advantages of shorter voyages and cost savings have to be weighed against the challenges of ice navigation, seasonal limitations and environmental protection. “All transits are undertaken with extensive planning, including the use of low-sulfur marine gas oil, a relatively slow operating speed, and enhanced navigation and communication systems,” he said. The carrier has a fleet of 33 ice-class ships ranging between 4,300 and 22,000 deadweight metric tons (dwt). According to the SPRI, Wagenborg’s voyages this year have included cargo from Finland to Indonesia onboard the 15,750-dwt Alaskaborg and cargo from Turkey to Canada’s Bathurst inlet shipped by the 19,500-dwt Taagborg, which continued to China. The 15,570-dwt Atlanticborg also made an unusual return transit through the Norwest Passage after transporting cargo from Québec to South Korea and returning with anodes from China to Québec. Other multipurpose and heavy-lift vessel operators, including BigLift Shipping, have used Arctic routes in the past, although the company said none of its ships have used the Canadian Arctic route since 2023.   The grounding of the Thamesborg, which was carrying anodes from China to Quebec, highlighted the perils of Arctic sailing. “We regret that even with every known technology and safeguard in play, the grounding of Thamesborg occurred,” van der Linde said. Arctic transits come with significant challenges Unlike blue ocean sailing via the Panama Canal and southern Africa, navigating the Canadian and Russian archipelagos in the Arctic is often done at slow speeds to maneuver through the many inlets and avoid treacherous shoals. There are seven routes through the Northwest Passage, according to the Scott Polar Research Institute. The challenges have led to a cautious approach by other operators. James Jung, director of South Korean heavy-lift vessel operator CY Shipping, said the company, which operates a joint fleet with BigLift Shipping of eight ships, has carried out studies on using the Northwest Passage and Northern Sea Route. The carrier’s ships are not ice-classed and therefore subject to a limited navigation period for both routes during the northern summer and fall. The carrier also identified the high cost of employing ice pilots as a deterrent to using Arctic routes. “I don’t think we will transit via the Northern Sea Route so soon because of the ongoing Ukraine war and sanctions,” Jung told the Journal of Commerce. Jung also explained there are very few heavy-lift project cargoes destined for North America’s high-north, “so carriers can still make use of the Panama Canal” because the benefits of voyage time and cost of using the Northwest Passage aren’t there.  Polar sailing, though, is captivating the South Korean government, which recently made the commercialization of Arctic Sea routes one of its priorities in the five-year development blueprint for its maritime sector. The plan proposes the development of ports and related logistics hubs for Arctic cargo, plus government subsidies for new icebreaking ships. As part of that effort, the South Korean government organized a briefing at the Korea Shipping Association headquarters in Seoul on Oct. 31 to garner and encourage carrier interest in northern shipping routes, which the government sees as a new growth engine for the economy. The government is especially focused on developing the Northern Sea Route through the Russian Arctic. “Since South Korea conducted a total of five trial operations between 2013 and 2016, national shipping companies’ interest in the Northern Sea Route has been low,” the Ministry of Oceans and Fisheries said in a statement. “But national shipping companies have recently expressed a lot of interest in the government’s policy of developing the Northern Sea Route.” The ministry expects to organize further meetings to discuss additional trial voyages next year. Heo Man-wook, director of the ministry’s shipping and logistics bureau, said the Arctic Sea routes have enormous economic potential. Contact Keith Wallis at keithwallis@hotmail.com .

Breakbulk carriers

Project cargo

Breakbulk News

Rise in Arctic MPV transits comes despite challenges of ice navigation

<div class="phx-topic abstract-wrapper">The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests, and that means importers face significant financial risks.</div>

The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests, and that means importers face significant financial risks.

<div class="phx-topic">Already strained by tariffs and economic uncertainty, US breakbulk and project cargo importers are increasingly adding hefty fines and the risk of re-exportation of cargoes to their list of financial anxieties with inspection enforcement by the US Customs and Border Protection (CBP) on the rise. The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests. And that means importers face significant financial risks, including fines that can exceed seven figures and the potential re-exportation of shipments, which disrupts supply chains and inflates consumer prices. During the US federal government’s 2025 fiscal year that ended Sep. 30, the CBP issued 87,684 Agriculture Emergency Action Notifications (EANs), up 11.2% from fiscal year 2024. Of those, 16,527 were related to pests, according to CBP figures. EANs alert trade entities of non-compliance with regulations of the Animal and Plant Health Inspection Service (APHIS), which is overseen by the US Department of Agriculture. Torge Runge, senior operations manager of industrial projects and energy transport solutions in North America for logistics company Gebrüder Weiss, said a snail debacle cost the company upward of $70,000, after fumigation costs, terminal fees and storage charges. While the fumigation was the most expensive line item, Runge told the Journal of Commerce a delay in the company being informed about the problem further contributed to increased demurrage and detention costs. “There was a big gap between when the shipment arrived and when we actually notified what was going on with it,” Runge said. “We lost almost a week there. We only had two days of free time and after that, it got really expensive.” Overall, Runge said additional transparency throughout the pest identification process between the regulatory bodies and shippers could be improved. To get any details on pests found in cargo, shippers need to submit a Freedom of Information Act (FOIA) request, a bureaucratic process that can take more than a month. In the meantime, project cargo forwarders are often left with the bill. <h3>‘Limited options’ for shippers </h3>When an import shipment is considered to be at risk for pest contamination — which is usually dictated by commodity and origin — the cargo is often targeted by CBP for an inspection. If pests are found, importers have limited options for next steps depending on the nature of the pest, the commodity, packaging and the regulatory response — usually leading to direct and indirect financial losses for multiple parties. “If pests are detected, CBP takes immediate action to prevent their introduction: quarantine, treatment, re-exportation or destruction, and notification,” CBP media relations specialist Rusty Payne told the Journal of Commerce. CBP works in conjunction with other entities — such as the Department of Agriculture’s APHIS — to find pests in cargo. CBP serves as the frontline defense, while USDA-APHIS provides the technical and regulatory framework to guide pest management efforts, Payne told the Journal of Commerce.  While some instances of pests can be solved stateside with costly fumigation services, others require affected cargo to be returned to its origin entirely. “[Re-exportation] is just a net loss,” said Kenneth Western, CBP’s chief agriculture specialist at the Houston Seaport. “There’s no money made by the customer ... they don’t have a product to re-sell, and the US government doesn’t get the duty.” To avoid contamination, Western recommends shippers familiarize themselves with the risks associated with their commodity or origin. For example, placing tiles on or near grass can attract snails. “Specific practices may include pre-treatment for shipments before export to eliminate pests,” CBP’s Payne told the Journal of Commerce. “Common treatments include fumigation, heat treatment, cold treatment, or irradiation, depending on the commodity.” <h3>Knock on wood </h3>Shipments using wood packaging materials (WPM), including items such as pallets, crates, and boxes, are particularly at risk of re-exportation. “One of the biggest things that we find here in Houston is usually insects being found in wood packaging material used to block and brace imported cargo,” Western told the Journal of Commerce. Violating the International Standards for Phytosanitary Measures No. 15 (ISPM 15) due to the detection of certain invasive wood-boring pests in wood packaging materials can lead to substantial fines and even the immediate re-exportation of an entire shipment. To address pest risks effectively, the USDA has outlined specific treatment methods for wood packaging materials. Importers can choose between heat treatment and fumigation with methyl bromide. Heat treatment requires raising the wood’s core temperature to at least 56°C for a minimum of 30 minutes, while fumigation involves sealing the wood in a controlled environment with methyl bromide for at least 16 hours. Those treatments, however, are not always effective, resulting in incomplete exterminations, shippers said. After treatment, each piece of WPM must be clearly marked to indicate that it has undergone the necessary pest control measures. This marking process includes a variety of information, such as the IPPC logo, the country code of origin, and a unique identification number, ensuring that the wood packaging meets international safety standards before shipment. “When they ship it, it has that stamp on it. That’s a promise to us,” said Western of the wood stamp indicating ISPM 15 compliance. “If we find any insects in there, if it was treated properly, they should be dead. But sometimes, we are finding a lot of insects in the wood packing material, [even if] the stamp is authentic ... When that happens, they are subject to a penalty.” And those penalties can be hefty — up to three times the cost of the cargo, said Western. While fumigation can provide a solution to allow some cargo to stay in the US, shipments found to contain live pests in wood must be sent back to their origin. And several importers said they have noticed an increase in pest detections, even in wood packaging materials that they understood to be compliant with ISPM 15 standards. <h3>Closer to a solution </h3>Shippers in July moved a step closer to an alternative solution to re-exportation for live pests found in wood packing material (WPM) when the USDA approved the so-called shredder-hammermill treatment, a new emergency phytosanitary destruction method for dunnage, pallets, WPM and other non-compliant wood products.   According to CBP, the treatment process uses a wood shredder and a hammermill grinder combination to destroy any potential pests, but requires an APHIS-approved shredder-hammermill treatment facility at the port. But the actual machine to perform the task has yet to be fabricated. “By just pulverizing the wood, they don’t have to export it or anything,” said Diana Davila, senior vice president of US operations at logistics company UTC Overseas, Inc. “We want to get it out there and say [if] someone can come up with a solution, they can make money on it, and they can save these projects millions of dollars.” While USDA approval for the solution moves forward, using a shredder-hammermill machine is still far off, with months required for design, sourcing and fabrication. “The information about what is required has been shared, so the next step is for the machine to be engineered,” said Davila. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

Already strained by tariffs and economic uncertainty, US breakbulk and project cargo importers are increasingly adding hefty fines and the risk of re-exportation of cargoes to their list of financial anxieties with inspection enforcement by the US Customs and Border Protection (CBP) on the rise. The wood packaging materials that are meant to protect project cargoes during their journey can be contaminated with pests. And that means importers face significant financial risks, including fines that can exceed seven figures and the potential re-exportation of shipments, which disrupts supply chains and inflates consumer prices. During the US federal government’s 2025 fiscal year that ended Sep. 30, the CBP issued 87,684 Agriculture Emergency Action Notifications (EANs), up 11.2% from fiscal year 2024. Of those, 16,527 were related to pests, according to CBP figures. EANs alert trade entities of non-compliance with regulations of the Animal and Plant Health Inspection Service (APHIS), which is overseen by the US Department of Agriculture. Torge Runge, senior operations manager of industrial projects and energy transport solutions in North America for logistics company Gebrüder Weiss, said a snail debacle cost the company upward of $70,000, after fumigation costs, terminal fees and storage charges. While the fumigation was the most expensive line item, Runge told the Journal of Commerce a delay in the company being informed about the problem further contributed to increased demurrage and detention costs. “There was a big gap between when the shipment arrived and when we actually notified what was going on with it,” Runge said. “We lost almost a week there. We only had two days of free time and after that, it got really expensive.” Overall, Runge said additional transparency throughout the pest identification process between the regulatory bodies and shippers could be improved. To get any details on pests found in cargo, shippers need to submit a Freedom of Information Act (FOIA) request, a bureaucratic process that can take more than a month. In the meantime, project cargo forwarders are often left with the bill. ‘Limited options’ for shippers When an import shipment is considered to be at risk for pest contamination — which is usually dictated by commodity and origin — the cargo is often targeted by CBP for an inspection. If pests are found, importers have limited options for next steps depending on the nature of the pest, the commodity, packaging and the regulatory response — usually leading to direct and indirect financial losses for multiple parties. “If pests are detected, CBP takes immediate action to prevent their introduction: quarantine, treatment, re-exportation or destruction, and notification,” CBP media relations specialist Rusty Payne told the Journal of Commerce. CBP works in conjunction with other entities — such as the Department of Agriculture’s APHIS — to find pests in cargo. CBP serves as the frontline defense, while USDA-APHIS provides the technical and regulatory framework to guide pest management efforts, Payne told the Journal of Commerce.  While some instances of pests can be solved stateside with costly fumigation services, others require affected cargo to be returned to its origin entirely. “[Re-exportation] is just a net loss,” said Kenneth Western, CBP’s chief agriculture specialist at the Houston Seaport. “There’s no money made by the customer ... they don’t have a product to re-sell, and the US government doesn’t get the duty.” To avoid contamination, Western recommends shippers familiarize themselves with the risks associated with their commodity or origin. For example, placing tiles on or near grass can attract snails. “Specific practices may include pre-treatment for shipments before export to eliminate pests,” CBP’s Payne told the Journal of Commerce. “Common treatments include fumigation, heat treatment, cold treatment, or irradiation, depending on the commodity.” Knock on wood Shipments using wood packaging materials (WPM), including items such as pallets, crates, and boxes, are particularly at risk of re-exportation. “One of the biggest things that we find here in Houston is usually insects being found in wood packaging material used to block and brace imported cargo,” Western told the Journal of Commerce. Violating the International Standards for Phytosanitary Measures No. 15 (ISPM 15) due to the detection of certain invasive wood-boring pests in wood packaging materials can lead to substantial fines and even the immediate re-exportation of an entire shipment. To address pest risks effectively, the USDA has outlined specific treatment methods for wood packaging materials. Importers can choose between heat treatment and fumigation with methyl bromide. Heat treatment requires raising the wood’s core temperature to at least 56°C for a minimum of 30 minutes, while fumigation involves sealing the wood in a controlled environment with methyl bromide for at least 16 hours. Those treatments, however, are not always effective, resulting in incomplete exterminations, shippers said. After treatment, each piece of WPM must be clearly marked to indicate that it has undergone the necessary pest control measures. This marking process includes a variety of information, such as the IPPC logo, the country code of origin, and a unique identification number, ensuring that the wood packaging meets international safety standards before shipment. “When they ship it, it has that stamp on it. That’s a promise to us,” said Western of the wood stamp indicating ISPM 15 compliance. “If we find any insects in there, if it was treated properly, they should be dead. But sometimes, we are finding a lot of insects in the wood packing material, [even if] the stamp is authentic ... When that happens, they are subject to a penalty.” And those penalties can be hefty — up to three times the cost of the cargo, said Western. While fumigation can provide a solution to allow some cargo to stay in the US, shipments found to contain live pests in wood must be sent back to their origin. And several importers said they have noticed an increase in pest detections, even in wood packaging materials that they understood to be compliant with ISPM 15 standards. Closer to a solution Shippers in July moved a step closer to an alternative solution to re-exportation for live pests found in wood packing material (WPM) when the USDA approved the so-called shredder-hammermill treatment, a new emergency phytosanitary destruction method for dunnage, pallets, WPM and other non-compliant wood products.   According to CBP, the treatment process uses a wood shredder and a hammermill grinder combination to destroy any potential pests, but requires an APHIS-approved shredder-hammermill treatment facility at the port. But the actual machine to perform the task has yet to be fabricated. “By just pulverizing the wood, they don’t have to export it or anything,” said Diana Davila, senior vice president of US operations at logistics company UTC Overseas, Inc. “We want to get it out there and say [if] someone can come up with a solution, they can make money on it, and they can save these projects millions of dollars.” While USDA approval for the solution moves forward, using a shredder-hammermill machine is still far off, with months required for design, sourcing and fabrication. “The information about what is required has been shared, so the next step is for the machine to be engineered,” said Davila. Contact Laura Robb at laura.robb@spglobal.com .

Supply chain

Penalties for pests found in project cargo packing add to shipper woes

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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Filling the Supply Chain Education Gap with LTL Education Courses

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

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SSA Marine Mexico: 30 years growing together.

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