<div class="phx-topic abstract-wrapper">The change in leadership is likely to accelerate strategic changes in planning and capital spending at C.H. Robinson that have been under way since last March at the urging of investors.</div>

The change in leadership is likely to accelerate strategic changes in planning and capital spending at C.H. Robinson that have been under way since last March at the urging of investors.

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<div>C.H. Robinson Worldwide is changing CEOs amid slowing freight demand, rate declines, and investor unrest. Robert C. Biesterfeld, Jr., CEO of the largest US logistics provider, was let go as president and CEO Jan. 1; Scott Anderson, chair of the company’s board of directors, has stepped in as interim CEO. C.H. Robinson is searching for a permanent replacement for Biesterfeld, who had been CEO since May 2019.The change in leadership is likely to accelerate strategic changes in planning and capital spending at C.H. Robinson that have been under way since last March at the urging of Ancora Catalyst Institutional and...

C.H. Robinson Worldwide is changing CEOs amid slowing freight demand, rate declines, and investor unrest. Robert C. Biesterfeld, Jr., CEO of the largest US logistics provider, was let go as president and CEO Jan. 1; Scott Anderson, chair of the company’s board of directors, has stepped in as interim CEO. C.H. Robinson is searching for a permanent replacement for Biesterfeld, who had been CEO since May 2019. The change in leadership is likely to accelerate strategic changes in planning and capital spending at C.H. Robinson that have been under way since last March at the urging of Ancora Catalyst Institutional and other investors. Ancora and C.H. Robinson signed a cooperation agreement last February that reshaped the company’s board and established a committee to advise the board on capital spending and strategic planning. Biesterfeld’s departure was an “involuntary termination without cause,” according to a company filing Tuesday with the US Securities and Exchange Commission (SEC), entitling him to severance pay. In the SEC filing, C.H. Robinson indicated Anderson would not take the CEO job on a permanent basis. “The fact that he left without them having a replacement indicates the board realized they can’t wait,” said Satish Jindel, president of SJ Consulting Group. The change at the top is a sure signal that investors want faster progress toward greater returns at C.H. Robinson. The company’s revenue decreased 4 percent year over year in the third quarter to $6 billion, while net profit dropped 8.6 percent to $225.8 million and diluted earnings per share (EPS) fell 3.8 percent. That was a quick about-face from double-digit gains in the second quarter. Biesterfeld’s departure also indirectly points to the growing influence of activist investors in the transportation and logistics sector. Ancora previously invested in Forward Air in an attempt to improve shareholder value at the transportation company. One of the investors who worked with Ancora at Forward Air and C.H. Robinson is Andrew Clarke, a former executive at both companies. Jindel said Clarke, with C-suite experience at several companies, including CFO at C.H. Robinson from 2015 to 2019, should be the top candidate for the CEO job. “He is the man for this job now, they won’t find a better candidate,” Jindel said. “They need a financial guy right now, not a technology guy.” But Brittain Ladd, COO of BCL Consulting, suggested Dave Clark, CEO of Flexport, as a potential candidate. “In my opinion, the worst thing that can happen to CH Robinson is hiring a CEO who will maintain the status quo,” Ladd, a former supply chain executive at Amazon, said in a LinkedIn post Tuesday. “What the company needs most is an innovator who can take the company to the next level.” Where to grow? Whoever leads C.H. Robinson will face headwinds blowing toward the third-party logistics market, led by inflationary pressure tamping down consumer spending and economic growth. Defending profit margins and increasing shareholder value will challenge logistics providers across the board in 2023. Under Biesterfeld, Robinson focused on improving productivity, digital development, and expansion. “We believe our strategy and competitive advantages will enable us to create more value for customers and in turn, win more business, increase our market share and enable sustainable profitable growth,” Biesterfeld told investors during a third-quarter earnings conference call on Nov. 2. In particular, Biesterfeld said he and other company executives focused on digital initiatives “to scale the overall model and drive efficiency.” The question facing C.H. Robinson, which had $23.1 billion in annual revenue in 2021, is where to go to grow, Jindel told the Journal of Commerce. “Can they penetrate the domestic transportation market any further, and if not, where does their future growth come from?” he said. “As a broker, there is only so much you can take on. Will they take business from other brokers or use technology to reduce costs?” C.H. Robinson will certainly be approached by companies wanting to buy pieces of its business, but it’s not clear selling or separating operations such as domestic truck brokerage and international freight forwarding is the best option, Jindel said. Some competing providers of global freight services and software are trying to connect air and ocean capacity to US over-the-road trucking capacity. Contact William B. Cassidy at bill.cassidy@spglobal.com and follow him on Twitter: @willbcassidy . JOC analyst Cathy Morrow Roberson contributed to this report.

Logistics Technology News

Forwarding

Truckload

Surface

C.H. Robinson searching for new CEO — and new course for growth

<div class="phx-topic abstract-wrapper">New legislation passed by the US House will help fight cargo crime, but theft prevention starts with identity verification, experts told a Journal of Commerce webcast.</div>

New legislation passed by the US House will help fight cargo crime, but theft prevention starts with identity verification, experts told a Journal of Commerce webcast.

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<div class="phx-topic">Logistics groups and executives are welcoming federal legislation that would help combat cargo crime, but warn that new laws are no “silver bullet” in the battle for supply chain security. Speakers on a Journal of Commerce webcast this week emphasized the need for freight shippers and brokers to verify the identities of truck drivers and motor carriers. Proactive verification of identities is a key step toward preventing cargo crime in the first place, before a theft takes place and law enforcement becomes involved, they said. “We’ve seen a lot of investment in carrier onboarding, and we haven’t seen as much on driver verification until recently,” Aqil Naeem, co-founder and CEO of technology company E3 Group, said during the webcast. His company launched a driver verification system last month. “There are really three tiers to the ID of anyone picking up a load: the dispatcher, the carrier and the actual driver,” Naeem said. “It would be a mistake to focus only on one layer.” Naeem spoke after the US House of Representatives easily <a href="https://www.congress.gov/bill/119th-congress/house-bill/2853">passed the Combating Organized Retail Crime Act (CORCA) of 2025</a> on Tuesday. The bill would make it easier for federal and state authorities to prosecute cargo crimes. CORCA, which now goes before the Senate Judiciary Committee, would also establish a supply chain crime response center within the Department of Homeland Security (DHS). That could foster greater coordination among federal and state agencies. “It’s a significant step in the right direction,” Jeff Tucker, CEO of logistics provider Tucker Company Worldwide, told the Journal of Commerce webcast. “The proof is going to be in the execution. What will the coordination look like?” <h3>Supreme Court ruling raises stakes </h3>On Thursday, the US Supreme Court ruled that federal law does not <a href="https://www.joc.com/article/knight-swift-making-safety-related-cuts-to-brokerage-fleet-6210440">automatically shield freight brokers</a> from accident lawsuits alleging they hired unsafe motor carriers. The unanimous decision in Montgomery v. Caribe Transport II is expected to focus more attention on verification and vetting throughout the supply chain, starting with brokers. That has implications for cargo security, as well as highway safety. “Brokers are best positioned to detect anomalies,” said Naeem. “But you can’t just point your finger exclusively at brokers if something goes wrong.” Fraud permeates every link in the supply chain, according to Tucker. “To suggest this issue is a broker problem is missing a huge point,” he said. “There’s fraud happening at the broker, carrier and shipper level. We recently experienced a fraudulent shipper, an imposter. Bad actors are trying to find a weak link.” Many brokers already go far beyond federal requirements when it comes to carrier vetting. Shippers are demanding greater security, Tucker said. “We had one recent RFP (request for proposal) which had 70 questions about our technology,” he said. Knight-Swift Transportation Holdings <a href="https://www.joc.com/article/knight-swift-making-safety-related-cuts-to-brokerage-fleet-6210440">made deep cuts</a> in its pool of third-party brokerage carriers in the first quarter, targeting businesses that company officials said may be unsafe. Identifying and monitoring who is driving a brokered truck is a real challenge for brokers and shippers, Knight-Swift CEO Adam Miller said. “We’re anticipating that our customers are going to start being more concerned about this as this becomes more of a relevant issue,” he said. “We’re already seeing that.” Greater coordination, not just among agencies but among supply chain partners, is crucial, said Keith Lewis, vice president of operations at CargoNet, a Verisk company. “This is not a broker issue. This is an everybody involved in the supply chain issue,” Lewis said during the webcast. ”Don’t look at the government as a silver bullet,” he added. “We already have cargo theft laws on the books. We need money to pay for enforcement.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Logistics groups and executives are welcoming federal legislation that would help combat cargo crime, but warn that new laws are no “silver bullet” in the battle for supply chain security. Speakers on a Journal of Commerce webcast this week emphasized the need for freight shippers and brokers to verify the identities of truck drivers and motor carriers. Proactive verification of identities is a key step toward preventing cargo crime in the first place, before a theft takes place and law enforcement becomes involved, they said. “We’ve seen a lot of investment in carrier onboarding, and we haven’t seen as much on driver verification until recently,” Aqil Naeem, co-founder and CEO of technology company E3 Group, said during the webcast. His company launched a driver verification system last month. “There are really three tiers to the ID of anyone picking up a load: the dispatcher, the carrier and the actual driver,” Naeem said. “It would be a mistake to focus only on one layer.” Naeem spoke after the US House of Representatives easily passed the Combating Organized Retail Crime Act (CORCA) of 2025 on Tuesday. The bill would make it easier for federal and state authorities to prosecute cargo crimes. CORCA, which now goes before the Senate Judiciary Committee, would also establish a supply chain crime response center within the Department of Homeland Security (DHS). That could foster greater coordination among federal and state agencies. “It’s a significant step in the right direction,” Jeff Tucker, CEO of logistics provider Tucker Company Worldwide, told the Journal of Commerce webcast. “The proof is going to be in the execution. What will the coordination look like?” Supreme Court ruling raises stakes On Thursday, the US Supreme Court ruled that federal law does not automatically shield freight brokers from accident lawsuits alleging they hired unsafe motor carriers. The unanimous decision in Montgomery v. Caribe Transport II is expected to focus more attention on verification and vetting throughout the supply chain, starting with brokers. That has implications for cargo security, as well as highway safety. “Brokers are best positioned to detect anomalies,” said Naeem. “But you can’t just point your finger exclusively at brokers if something goes wrong.” Fraud permeates every link in the supply chain, according to Tucker. “To suggest this issue is a broker problem is missing a huge point,” he said. “There’s fraud happening at the broker, carrier and shipper level. We recently experienced a fraudulent shipper, an imposter. Bad actors are trying to find a weak link.” Many brokers already go far beyond federal requirements when it comes to carrier vetting. Shippers are demanding greater security, Tucker said. “We had one recent RFP (request for proposal) which had 70 questions about our technology,” he said. Knight-Swift Transportation Holdings made deep cuts in its pool of third-party brokerage carriers in the first quarter, targeting businesses that company officials said may be unsafe. Identifying and monitoring who is driving a brokered truck is a real challenge for brokers and shippers, Knight-Swift CEO Adam Miller said. “We’re anticipating that our customers are going to start being more concerned about this as this becomes more of a relevant issue,” he said. “We’re already seeing that.” Greater coordination, not just among agencies but among supply chain partners, is crucial, said Keith Lewis, vice president of operations at CargoNet, a Verisk company. “This is not a broker issue. This is an everybody involved in the supply chain issue,” Lewis said during the webcast. ”Don’t look at the government as a silver bullet,” he added. “We already have cargo theft laws on the books. We need money to pay for enforcement.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Transport, Trade and Regulation News

Truck brokers

Trucking labor

Supply chain

Verify supply chain IDs, starting with drivers: logistics experts

<div class="phx-topic abstract-wrapper">SC Ports’ board of directors voted Friday to approve a design project to determine how to convert part of a 210-acre parcel next to the North Charleston Terminal into a car carrier operation. </div>

SC Ports’ board of directors voted Friday to approve a design project to determine how to convert part of a 210-acre parcel next to the North Charleston Terminal into a car carrier operation.

<div class="phx-topic">The Port of Charleston wants to convert land previously set aside for containers at its northern marine terminal into a car carrier operation, a move the port says better aligns with the state’s major shippers and helps it more quickly monetize its physical assets. The board of directors for the South Carolina Ports Authority (SC Ports) voted Friday to approve a design project to determine how to convert part of a 210-acre parcel next to the North Charleston Terminal into a roll-on/roll-off (ro/ro) operation. <a href="https://www.joc.com/article/sc-ports-lands-deal-seeks-to-make-north-charleston-ready-for-bigger-ships-5244603">The site of the former WestRock paper mill was purchased in 2024</a> by SC Ports for $105 million. The parcel would have doubled the current footprint of the North Charleston Terminal, the smallest of SC Ports’ three container terminals and home mostly to its north-south and trans-Atlantic services. SC Ports said in a statement following the vote the move positions Charleston to better serve the state’s automotive manufacturers, which include BMW, Mercedes, and Volvo. “We made a commitment to the market and board and all our stakeholders that we would focus our infrastructure and capital spending on immediate revenue-generating opportunities,” SC Ports Chief Executive Micah Mallace told the Journal of Commerce Friday. “We want to use the full extent of our real estate portfolio to generate new business.” The design contract will consider how much of the parcel will be devoted to ro/ro cargo, including upgraded tracks for autorack rail cars. SC Ports said it expects the design and demolition process to occur this summer. Initial construction on the site could start in January 2027, with a goal of 2028 completion. At his first state of the port address last October, Mallace said Charleston needs to get “<a href="https://www.joc.com/article/new-charleston-ceo-seeks-to-regain-container-growth-momentum-6104583">extra aggressive</a>” in the types of services it offers customers after it <a href="https://www.joc.com/article/charleston-looking-for-retailer-shippers-to-revive-ports-growth-6199290">lost market share in container freight</a> and as <a href="https://www.joc.com/article/charleston-slows-railyard-development-amid-insufficient-shipper-demand-6164158">it grapples with previous capital spending decisions</a> that have left the port looking for a faster return on its investments. While the expansion of the North Charleston Terminal for ultra-large container ships would require raising the Don Holt Bridge spanning the Cooper River, car carriers would be able to reach the terminal with the bridge’s current clearance. SC Ports’ fiscal 2025 financial report shows the port had 705 acres of undeveloped land at its various terminals and inland ports. <h3>Columbus terminal will be freed up </h3>The move to develop a ro/ro site would provide more room at SC Ports’ Columbus Street Terminal, which primarily handles the port’s ro/ro and breakbulk cargo, which accounted for $24.4 million in SC Ports’ operating revenue for fiscal 2025, a little under 6% of total revenue. Columbus Street handled 165,949 vehicles in fiscal 2025, down 21% from the year prior. Hurricane Debby hit Charleston in August 2024, causing flooding throughout its downtown, including the Columbus Street terminal, which sits at the convergence of the Cooper and Wando rivers in Charleston harbor. SC Ports said in its fiscal 2025 financial statement that BMW filed a claim for flood damage during the storm. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Charleston wants to convert land previously set aside for containers at its northern marine terminal into a car carrier operation, a move the port says better aligns with the state’s major shippers and helps it more quickly monetize its physical assets. The board of directors for the South Carolina Ports Authority (SC Ports) voted Friday to approve a design project to determine how to convert part of a 210-acre parcel next to the North Charleston Terminal into a roll-on/roll-off (ro/ro) operation. The site of the former WestRock paper mill was purchased in 2024 by SC Ports for $105 million. The parcel would have doubled the current footprint of the North Charleston Terminal, the smallest of SC Ports’ three container terminals and home mostly to its north-south and trans-Atlantic services. SC Ports said in a statement following the vote the move positions Charleston to better serve the state’s automotive manufacturers, which include BMW, Mercedes, and Volvo. “We made a commitment to the market and board and all our stakeholders that we would focus our infrastructure and capital spending on immediate revenue-generating opportunities,” SC Ports Chief Executive Micah Mallace told the Journal of Commerce Friday. “We want to use the full extent of our real estate portfolio to generate new business.” The design contract will consider how much of the parcel will be devoted to ro/ro cargo, including upgraded tracks for autorack rail cars. SC Ports said it expects the design and demolition process to occur this summer. Initial construction on the site could start in January 2027, with a goal of 2028 completion. At his first state of the port address last October, Mallace said Charleston needs to get “ extra aggressive ” in the types of services it offers customers after it lost market share in container freight and as it grapples with previous capital spending decisions that have left the port looking for a faster return on its investments. While the expansion of the North Charleston Terminal for ultra-large container ships would require raising the Don Holt Bridge spanning the Cooper River, car carriers would be able to reach the terminal with the bridge’s current clearance. SC Ports’ fiscal 2025 financial report shows the port had 705 acres of undeveloped land at its various terminals and inland ports. Columbus terminal will be freed up The move to develop a ro/ro site would provide more room at SC Ports’ Columbus Street Terminal, which primarily handles the port’s ro/ro and breakbulk cargo, which accounted for $24.4 million in SC Ports’ operating revenue for fiscal 2025, a little under 6% of total revenue. Columbus Street handled 165,949 vehicles in fiscal 2025, down 21% from the year prior. Hurricane Debby hit Charleston in August 2024, causing flooding throughout its downtown, including the Columbus Street terminal, which sits at the convergence of the Cooper and Wando rivers in Charleston harbor. SC Ports said in its fiscal 2025 financial statement that BMW filed a claim for flood damage during the storm. Contact Michael Angell at michael.angell@spglobal.com .

Port News

Ro/ro cargo

Breakbulk ports

Breakbulk News

Maritime

Charleston port looks to develop ro/ro operation at ex-WestRock site

<div class="phx-topic abstract-wrapper">The answer to emissions-cutting challenges facing the shipping industry cannot be overlapping regional measures or conflicting systems, Soren Toft told supply chain executives gathered at the IMO. </div>

The answer to emissions-cutting challenges facing the shipping industry cannot be overlapping regional measures or conflicting systems, Soren Toft told supply chain executives gathered at the IMO.

<div class="phx-topic">Decarbonizing shipping will require a global regulatory approach through the International Maritime Organization (IMO) and not a patchwork of overlapping regional measures, Mediterranean Shipping Co. CEO Soren Toft said Thursday. Addressing a gathering of supply chain executives at an IMO-hosted celebration in London of the World Shipping Council’s (WSC’s) 25th anniversary, Toft — who is also chairman of the WSC — said the central role of the IMO was global and that it “works best with global rules.” “We know there’s a challenge of decarbonization and growing pressure on supply chains,” he said. “These things need attention, and the answer to these challenges cannot be overlapping regional measures or conflicting systems.” Toft’s pointed remarks come as the IMO struggles to get its net-zero framework (NZF) adopted by member states. Regulatory uncertainty reached a head last October when the IMO decided to <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">postpone the adoption of its global NZF</a> for a year following robust US-led opposition to the proposed pricing and fuel intensity measures. US opposition remains unchanged, particularly with regard to the core pricing mechanism within the NZF. Washington’s anti-NZF position was reinforced <a href="https://www.joc.com/article/fmcs-dibella-brings-anti-net-zero-message-to-imo-london-meeting-6210952">two weeks ago</a> at the 84th meeting of the IMO’s Marine Environment Protection Committee (MEPC 84) in London. The pricing measure is crucial and will involve a global greenhouse gas fuel standard coupled with a penalty or contribution system that will make cleaner shipping fuels economically viable while ensuring strict enforcement. Contributions paid by ships that exceed their emissions limits would be directed into the IMO Net-Zero Fund that will be redistributed as financial rewards to vessels using low-emission fuels, offsetting the cost gap. Getting the NZF adopted at MEPC 85 this November will provide the regulatory certainty ocean carriers and fuel producers need to invest the huge sums necessary to decarbonize the shipping industry. That responsibility lies with IMO member states, Toft said in his IMO address. “We, and ultimately our clients, need predictability and consistency,” he said. “We need the help of all of you to agree on practical global measures to achieve net-zero objectives, support large scale deployment of alternative fuels, and we also need you to enforce international maritime regulations in a harmonized way.” <h3>Uncertain regulatory environment </h3>Despite uncertainties caused by the IMO’s decision to delay the adoption of its NZF, the container shipping industry has continued to invest heavily in dual-fuel vessels and bunkering infrastructure. “We’ve taken a very meaningful step towards making the world greener in the future, [and] that is without knowing exactly what fuels and what frameworks we are navigating towards,” Toft told attendees at IMO headquarters. Of the 12.2 million TEUs of capacity currently on order, 6.4 million TEUs are for LNG dual-fuel ships and 1.7 million are dual-fuel methanol vessels, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="433a666c-6023-4455-9d17-30b982f4835b"></dynamic-object></div>In his address to the gathering, Arsenio Dominguez, the IMO’s secretary-general, acknowledged the difficult position faced by carriers in such an uncertain regulatory environment. “In representing this part of the sector, the World Shipping Council is also moving ahead with decarbonization, taking forward the orders of vessels that are tentatively fuel-ready,” he said. “I can’t give you the answer [on what fuels to choose] ... we decided to be agnostic in that respect,” Dominguez added. “But I’m sure that with the feedback we continue to receive from you, it will allow us to not only progress our regulatory process, but to improve the quality of our regulations. And trust me, if there’s one area of work that we will continue to work on, it’s the harmonized implementation of IMO rules.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Decarbonizing shipping will require a global regulatory approach through the International Maritime Organization (IMO) and not a patchwork of overlapping regional measures, Mediterranean Shipping Co. CEO Soren Toft said Thursday. Addressing a gathering of supply chain executives at an IMO-hosted celebration in London of the World Shipping Council’s (WSC’s) 25th anniversary, Toft — who is also chairman of the WSC — said the central role of the IMO was global and that it “works best with global rules.” “We know there’s a challenge of decarbonization and growing pressure on supply chains,” he said. “These things need attention, and the answer to these challenges cannot be overlapping regional measures or conflicting systems.” Toft’s pointed remarks come as the IMO struggles to get its net-zero framework (NZF) adopted by member states. Regulatory uncertainty reached a head last October when the IMO decided to postpone the adoption of its global NZF for a year following robust US-led opposition to the proposed pricing and fuel intensity measures. US opposition remains unchanged, particularly with regard to the core pricing mechanism within the NZF. Washington’s anti-NZF position was reinforced two weeks ago at the 84th meeting of the IMO’s Marine Environment Protection Committee (MEPC 84) in London. The pricing measure is crucial and will involve a global greenhouse gas fuel standard coupled with a penalty or contribution system that will make cleaner shipping fuels economically viable while ensuring strict enforcement. Contributions paid by ships that exceed their emissions limits would be directed into the IMO Net-Zero Fund that will be redistributed as financial rewards to vessels using low-emission fuels, offsetting the cost gap. Getting the NZF adopted at MEPC 85 this November will provide the regulatory certainty ocean carriers and fuel producers need to invest the huge sums necessary to decarbonize the shipping industry. That responsibility lies with IMO member states, Toft said in his IMO address. “We, and ultimately our clients, need predictability and consistency,” he said. “We need the help of all of you to agree on practical global measures to achieve net-zero objectives, support large scale deployment of alternative fuels, and we also need you to enforce international maritime regulations in a harmonized way.” Uncertain regulatory environment Despite uncertainties caused by the IMO’s decision to delay the adoption of its NZF, the container shipping industry has continued to invest heavily in dual-fuel vessels and bunkering infrastructure. “We’ve taken a very meaningful step towards making the world greener in the future, [and] that is without knowing exactly what fuels and what frameworks we are navigating towards,” Toft told attendees at IMO headquarters. Of the 12.2 million TEUs of capacity currently on order, 6.4 million TEUs are for LNG dual-fuel ships and 1.7 million are dual-fuel methanol vessels, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. In his address to the gathering, Arsenio Dominguez, the IMO’s secretary-general, acknowledged the difficult position faced by carriers in such an uncertain regulatory environment. “In representing this part of the sector, the World Shipping Council is also moving ahead with decarbonization, taking forward the orders of vessels that are tentatively fuel-ready,” he said. “I can’t give you the answer [on what fuels to choose] ... we decided to be agnostic in that respect,” Dominguez added. “But I’m sure that with the feedback we continue to receive from you, it will allow us to not only progress our regulatory process, but to improve the quality of our regulations. And trust me, if there’s one area of work that we will continue to work on, it’s the harmonized implementation of IMO rules.” Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Shipping decarbonization will work best with global rules: MSC CEO

<div class="phx-topic abstract-wrapper">The National Shipper Advisory Committee, which guides the maritime regulator on ocean freight issues, meets once a year to drive policy decisions.</div>

The National Shipper Advisory Committee, which guides the maritime regulator on ocean freight issues, meets once a year to drive policy decisions.

<div class="phx-topic">The US Federal Maritime Commission (FMC) on Thursday said it is searching for new members to serve on its National Shipper Advisory Committee (NSAC), which advises the federal agency on policy related to ocean freight. The advisory committee, composed of 24 individuals representing import and export cargo interests, specifically counsels the FMC on issues of supply chain competitiveness, reliability, integrity, and fairness. The committee is evenly split between import and export entities. “The commission intends for membership to reflect a balanced mix of shippers, and selections will be made based on factors such as commodities shipped, ports used, geographic areas served, and origins of cargo, as well as other relevant factors,” the FMC said in a statement. The agency added it was “looking for applicants with extensive shipping and US oceanic supply chain knowledge, as well as an eagerness to collaborate and share their expertise on various issues...” The NSAC, originally formed in 2021, has provided guidance on an array of issues, from <a href="https://www.joc.com/article/bentzel-wants-partial-fmc-oversight-over-rail-demurrage-5243057">rail demurrage</a> and a <a href="https://www.joc.com/article/us-draft-legislation-seeks-to-update-osra-22-boost-china-scrutiny-5220516">rewrite of the Ocean Shipping Reform Act</a> (OSRA) during the pandemic, to more recent efforts, including <a href="https://www.joc.com/article/fmc-rules-for-truckers-in-chassis-dispute-with-ocean-carriers-5234355">chassis disputes</a> with ocean carriers and a push for a “<a href="https://www.joc.com/article/shipper-bill-of-rights-takes-aim-at-ocean-carrier-accountability-transparency-5958197">shipper’s bill of rights</a>.” Some NASC members have privately expressed concerns that the FMC wasn’t sure how to handle its recommendations, partly due to the committee being the first of its kind to report to the agency. <a href="https://www.federalregister.gov/documents/2026/05/14/2026-09667/solicitation-for-applications-to-serve-as-members-on-the-national-shipper-advisory-committee">NSAC members serve three-year terms</a>, with the committee meeting at least once a year, although more frequent meetings can potentially be convened by the FMC or a majority of committee members. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

The US Federal Maritime Commission (FMC) on Thursday said it is searching for new members to serve on its National Shipper Advisory Committee (NSAC), which advises the federal agency on policy related to ocean freight. The advisory committee, composed of 24 individuals representing import and export cargo interests, specifically counsels the FMC on issues of supply chain competitiveness, reliability, integrity, and fairness. The committee is evenly split between import and export entities. “The commission intends for membership to reflect a balanced mix of shippers, and selections will be made based on factors such as commodities shipped, ports used, geographic areas served, and origins of cargo, as well as other relevant factors,” the FMC said in a statement. The agency added it was “looking for applicants with extensive shipping and US oceanic supply chain knowledge, as well as an eagerness to collaborate and share their expertise on various issues...” The NSAC, originally formed in 2021, has provided guidance on an array of issues, from rail demurrage and a rewrite of the Ocean Shipping Reform Act (OSRA) during the pandemic, to more recent efforts, including chassis disputes with ocean carriers and a push for a “ shipper’s bill of rights .” Some NASC members have privately expressed concerns that the FMC wasn’t sure how to handle its recommendations, partly due to the committee being the first of its kind to report to the agency. NSAC members serve three-year terms , with the committee meeting at least once a year, although more frequent meetings can potentially be convened by the FMC or a majority of committee members. Contact Eric Johnson at eric.johnson@spglobal.com .

FMC searching for new members to serve on shipper advisory board

<div class="phx-topic abstract-wrapper">The producer price indexes for truckload and LTL transportation in the US both leapt about 20% year over year in April, revealing growing pressure on supply chains.</div>

The producer price indexes for truckload and LTL transportation in the US both leapt about 20% year over year in April, revealing growing pressure on supply chains.

<div class="phx-topic">The US producer price indexes (PPIs) for trucking last month leapt in nearly vertical lines so steep they could cause vertigo. The long-distance truckload PPI jumped 11.4% in April from March, reaching 202.2, according to data released by the US Bureau of Labor Statistics (BLS) Wednesday. That’s an 18.9% year-over-year increase for the all-inclusive measure of truckload pricing. April’s less-than-truckload (LTL) PPI shot up 12% from March and climbed 20% year over year to a record-breaking 311 — the biggest annualized increase in the LTL index since June 2022. In comparison, the April PPI for intermodal freight rail transportation was flat from March and only up less than 1 percentage point year over year, BLS data showed. The trucking PPIs represent final “selling prices” paid by thousands of shippers, including fuel surcharges and spot and contract base rates. The April PPIs show the impact of war-driven diesel prices in the US that have been more than 50% higher year over year since March 23. The average US retail diesel as of May 11 was $5.64 per gallon, flat with the previous week but up 62.2% from a year ago, according to the US Energy Information Administration (EIA). The US average diesel price has been above $5 per gallon for nine weeks. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="dd129e5b-5d7d-4cc2-a3fe-d9f34fdebe58"></dynamic-object></div>The PPIs for truckload and LTL services rose even quicker than aggregate US producer prices, which were up 1.4% from March in April and up 6% year over year, according to the BLS. The April increase is the largest advance for the PPI since a 1.7% leap in March 2022. The consumer price index (CPI), a measure of inflation, rose 3.8% year over year in April. Subtracting food and energy costs, the CPI rose 2.8% year over year. The PPIs are likely to stay elevated, buoyed by fuel prices, in particular the cost of diesel, which is used across freight transportation modes. Higher energy costs are inflating cost pressures throughout supply chains. The New York Federal Reserve Bank’s <a href="https://www.newyorkfed.org/research/policy/gscpi#/interactive">Global Supply Chain Pressure Index</a> (GSCPI) rose from 0.68 in March to 1.82 in April, a leap that closely matches the trajectory of the trucking PPIs. <h3>‘Surcharges on everything’ </h3>Shippers are seeing the immediate impact of the diesel price spike in higher fuel surcharges from their transportation and logistics providers. “As soon as we have to haul anything anywhere, there’s fuel surcharges on everything,” Amardeip Singh Doman, CEO of Doman Building Materials Group, said in a quarterly earnings call Monday. “We’re doing the best we can to navigate through that.” Doman, which distributes lumber and other building products throughout the US, is trying to pass the higher cost of surcharges through to customers, where possible, he said, noting: “We’re just trying to break even if we can on it and push it through.” Shippers are <a href="https://www.joc.com/article/rising-fuel-costs-forcing-us-truck-shippers-to-shift-freight-6214133">struggling to respond</a> to rapid price increases, said Jenny Vander Zanden, COO of transportation and fuel management company Breakthrough. “They don’t have many levers they can pull” to quickly mitigate higher costs, she said in an interview. And that’s forcing shippers to consider the prospect of higher fuel costs long term. “Forecasts have moved from something we would do annually to quarterly, monthly and now even more frequently with clients,” said Vander Zanden. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4f41d0db-fdca-4d0e-841e-6a45e944cc38"></dynamic-object></div>Whether the Strait of Hormuz is reopened or not, high diesel prices will linger, Matt Muenster, chief economist at Breakthrough, told the Journal of Commerce. From ports to inland truck stops, “this is a low sulfur fuel conundrum,” Muenster said. “There’s a structural challenge at work here because refiners can’t just increase production for these particular fuels.” US production, he said, is geared toward gasoline. US diesel inventories are down 11% from their five-year average, Muenster said, as the US continues to export diesel. “We’re going to have more stress in the diesel market in autumn when agriculture and transportation put more heat under the diesel barrel,” he said. “Summer usually offers time for diesel inventories to build, but if they continue to draw it will add pressure.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

The US producer price indexes (PPIs) for trucking last month leapt in nearly vertical lines so steep they could cause vertigo. The long-distance truckload PPI jumped 11.4% in April from March, reaching 202.2, according to data released by the US Bureau of Labor Statistics (BLS) Wednesday. That’s an 18.9% year-over-year increase for the all-inclusive measure of truckload pricing. April’s less-than-truckload (LTL) PPI shot up 12% from March and climbed 20% year over year to a record-breaking 311 — the biggest annualized increase in the LTL index since June 2022. In comparison, the April PPI for intermodal freight rail transportation was flat from March and only up less than 1 percentage point year over year, BLS data showed. The trucking PPIs represent final “selling prices” paid by thousands of shippers, including fuel surcharges and spot and contract base rates. The April PPIs show the impact of war-driven diesel prices in the US that have been more than 50% higher year over year since March 23. The average US retail diesel as of May 11 was $5.64 per gallon, flat with the previous week but up 62.2% from a year ago, according to the US Energy Information Administration (EIA). The US average diesel price has been above $5 per gallon for nine weeks. The PPIs for truckload and LTL services rose even quicker than aggregate US producer prices, which were up 1.4% from March in April and up 6% year over year, according to the BLS. The April increase is the largest advance for the PPI since a 1.7% leap in March 2022. The consumer price index (CPI), a measure of inflation, rose 3.8% year over year in April. Subtracting food and energy costs, the CPI rose 2.8% year over year. The PPIs are likely to stay elevated, buoyed by fuel prices, in particular the cost of diesel, which is used across freight transportation modes. Higher energy costs are inflating cost pressures throughout supply chains. The New York Federal Reserve Bank’s Global Supply Chain Pressure Index (GSCPI) rose from 0.68 in March to 1.82 in April, a leap that closely matches the trajectory of the trucking PPIs. ‘Surcharges on everything’ Shippers are seeing the immediate impact of the diesel price spike in higher fuel surcharges from their transportation and logistics providers. “As soon as we have to haul anything anywhere, there’s fuel surcharges on everything,” Amardeip Singh Doman, CEO of Doman Building Materials Group, said in a quarterly earnings call Monday. “We’re doing the best we can to navigate through that.” Doman, which distributes lumber and other building products throughout the US, is trying to pass the higher cost of surcharges through to customers, where possible, he said, noting: “We’re just trying to break even if we can on it and push it through.” Shippers are struggling to respond to rapid price increases, said Jenny Vander Zanden, COO of transportation and fuel management company Breakthrough. “They don’t have many levers they can pull” to quickly mitigate higher costs, she said in an interview. And that’s forcing shippers to consider the prospect of higher fuel costs long term. “Forecasts have moved from something we would do annually to quarterly, monthly and now even more frequently with clients,” said Vander Zanden. Whether the Strait of Hormuz is reopened or not, high diesel prices will linger, Matt Muenster, chief economist at Breakthrough, told the Journal of Commerce. From ports to inland truck stops, “this is a low sulfur fuel conundrum,” Muenster said. “There’s a structural challenge at work here because refiners can’t just increase production for these particular fuels.” US production, he said, is geared toward gasoline. US diesel inventories are down 11% from their five-year average, Muenster said, as the US continues to export diesel. “We’re going to have more stress in the diesel market in autumn when agriculture and transportation put more heat under the diesel barrel,” he said. “Summer usually offers time for diesel inventories to build, but if they continue to draw it will add pressure.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

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