<div class="phx-topic abstract-wrapper">Con-way Freight is starting 2010 by strengthening its sales organization as it tries to bring pricing and profit into line with higher less-than-truckload freight volume. 
 
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Con-way Freight is starting 2010 by strengthening its sales organization as it tries to bring pricing and profit into line with higher less-than-truckload freight volume.

<div>Con-way Freight is starting 2010 by strengthening its sales organization as it tries to bring pricing and profit into line with higher less-than-truckload freight volume. The $4.3 billion LTL carrier appointed five sales managers &amp;mdash; including three recruited from rival YRC Worldwide &amp;mdash; to lead new regions in the South, Mid-Atlantic, and Midwest and Great Plains states. &amp;ldquo;In 2010, we&amp;rsquo;ve more clearly defined our sales territories nationwide,&amp;rdquo; said Ed Conaway, executive vice president of sales. That will help Con-way better analyze market data and support its sales team, he said. &amp;ldquo;With these new managers, we&amp;rsquo;ve allocated resources in areas of...

Con-way Freight is starting 2010 by strengthening its sales organization as it tries to bring pricing and profit into line with higher less-than-truckload freight volume. The $4.3 billion LTL carrier appointed five sales managers &mdash; including three recruited from rival YRC Worldwide &mdash; to lead new regions in the South, Mid-Atlantic, and Midwest and Great Plains states. &ldquo;In 2010, we&rsquo;ve more clearly defined our sales territories nationwide,&rdquo; said Ed Conaway, executive vice president of sales. That will help Con-way better analyze market data and support its sales team, he said. &ldquo;With these new managers, we&rsquo;ve allocated resources in areas of greater market value.&rdquo; Con-way, one of the top three LTL operators, is seeking new balance in its business. The company will bring more precision to sales and pricing this year as the LTL market is reshaped by the survival of YRC Worldwide and the promise of economic recovery. &ldquo;The biggest issue we face is definitely price,&rdquo; said John Labrie, Con-way Freight&rsquo;s president. &ldquo;We&rsquo;re trying to maintain our volume and increase overall price,&rdquo; Labrie told investors after the company&rsquo;s financial annual and quarterly financial results were released on Feb. 5. &ldquo;That&rsquo;s going to be hard to achieve with the excess capacity out there,&rdquo; Labrie said, &ldquo;but we&rsquo;re working through it account by account.&rdquo; There are signs the worst may be behind for Con-way Freight and other LTL carriers. The increased demand they enjoyed in late 2009 seems to have made the leap into 2010. &ldquo;Each of the months was slightly better as we progressed through the (fourth) quarter, and January was (slightly better) as well,&rdquo; Labrie said. &ldquo;Our focus is on driving efficiencies into the network, building volume and improving yield,&rdquo; said Douglas W. Stotlar, president and CEO of parent company Con-way. Con-way Freight is tackling that first goal with a broad re-engineering of its network, slicing transit times between 460 destinations by reducing handling, and, in turn, building the density on its shortest, most direct routes that truckers say is critical to profit. &ldquo;For the first time, we&rsquo;re actually measuring our transit time in hours instead of days,&rdquo; Greg Lehmkuhl, executive vice president of operations, said in January. The biggest changes will come in pricing. Con-way Freight was one of several LTL carriers that used aggressive pricing last year to gain market share, particularly at the expense of market leader YRC Worldwide, which narrowly avoided bankruptcy. &ldquo;Last year, we were coping with the economic recession which left us with available capacity,&rdquo; Stotlar told analysts. In an early attempt to right-size, the company stripped 40 terminals from its network after a $153 million loss in the first quarter. Then it turned to improving utilization by driving more freight to its remaining tractor-trailers. It not only offered lower rates, it changed its pricing structure to attract heavier freight. &ldquo;We made a strategic decision to attract more volume with the goal being to utilize some of the excess fleet capacity we had in our network,&rdquo; Stotlar told analysts. The strategy worked, at a price. Con-way reported sequential growth in freight volume throughout most of the year, with average daily tonnage jumping 20.6 percent year-over-year in the fourth quarter. The carrier had to hire back workers to handle the influx of freight, adding about 2,700 net jobs in 2009 to support that growth, Labrie said. But second-quarter net income of $31.5 million narrowed to $13.5 million in the third quarter and a $1.9 million loss in the fourth reporting period. Con-way&rsquo;s revenue per hundredweight, a measurement of yield, dropped 14.4 percent in the last quarter, including the loss of revenue from fuel surcharges. Excluding those charges, revenue per hundredweight fell 11.7 percent from a year earlier. &ldquo;While yields were down compared to last year, our increased tonnage levels have enabled better utilization of rolling stock capacity,&rdquo; Stotlar said. That&rsquo;s not a trade-off the carrier is willing to make in 2010. Across the LTL industry, carriers are retreating from rate discounting that slashed profits last year, signaling a truce, at least, in the industry&rsquo;s rate wars as they try to build a more profitable business. For Con-way, that means pruning unprofitable business from its books, customer by customer. &ldquo;The market seems to be moving in a slightly positive direction,&rdquo; Labrie said. He said the 5.9 percent general rate increase Con-way implemented on Jan. 4 has held &ldquo;pretty well.&rdquo; The GRI applies to about 30 percent of Con-way Freight&rsquo;s customer base. &ldquo;We&rsquo;ve seen volume maintained at 2009 levels for that segment, and we have not been negotiating price with that segment of customer,&rdquo; Labrie said. For the other 70 percent, &ldquo;We&rsquo;re going through the book of business account by account.&rdquo; The big challenge may come from big customers. &ldquo;Our growth was weighted to large national accounts, and those accounts have lower contribution margins,&rdquo; Labrie said. The watchword at Con-way Freight, he said, is &ldquo;cautious optimism,&rdquo; but &ldquo;with this much excess supply in the market, we don&rsquo;t know what&rsquo;s going to happen.&rdquo; Contact William B. Cassidy at wcassidy@joc.com .

Trucking News

Con-way Seeks New Balance

<div class="phx-topic abstract-wrapper">The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol over the weekend as part of an alternative fuel partnership with the world’s largest container port.</div>

The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol over the weekend as part of an alternative fuel partnership with the world’s largest container port.

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<div class="phx-topic">CMA CGM completed its first-ever biomethanol bunkering operation over the weekend at Shanghai’s Yangshan terminal, setting a record for the largest biomethanol bunkering move at a Chinese port. The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol from supplier Shanghai Electric Group, CMA CGM said in a statement Monday. “The completion of China’s largest single biomethanol bunkering operation with CMA CGM marks a significant leap in Shanghai Port’s biomethanol bunkering capacity,” Luo Wenbin, managing director of SIPG Energy, part of the Shanghai International Port Group (SIPG), said in the statement. The Marseilles-based carrier is preparing to operate around 200 dual-fuel container vessels by 2031, all capable of running on low-carbon energy such as bio- and e-liquified natural gas as well as bio- and e-methanol. Farid Trad, vice president of group energy transition at CMA CGM, said the bunkering of Osmium marked “a defining moment in (the carrier’s) decarbonization journey.” “Together with SIPG Energy, we are demonstrating that cleaner, low-carbon shipping is no longer an aspiration, but a reality,” Trad said in the statement. Shanghai Port is developing its position as a global sustainable energy bunkering hub, and CMA CGM’s long-standing collaboration with partners SIPG Energy and Shanghai Electric Group include a long-term LNG bunkering partnership with SIPG and the framework agreement on long-term biomethanol supply. Biomethanol is a low-carbon fuel produced from renewable or waste-based biomass that can offer lifecycle greenhouse gas emission reductions of more than 65% compared with conventional marine fuels. Despite uncertainties caused by the International Maritime Organization’s decision last October <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">to delay the adoption of its net-zero framework</a> for a year, the container shipping industry has continued to invest heavily in dual-fuel vessels and bunkering infrastructure. Data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that 6.44 million TEUs of capacity for LNG dual-fuel ships are currently on order, compared with 1.6 million TEUs of methanol-capable vessels. Industry coalition SEA-LNG estimated in a recent report that investment in LNG dual-fuel vessels and associated fuel supply chains over the past 10 years has amounted to more than $150 billion. A large portion of that is going into the supply side, with fuel availability at scale crucial for the global shipping industry. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

CMA CGM completed its first-ever biomethanol bunkering operation over the weekend at Shanghai’s Yangshan terminal, setting a record for the largest biomethanol bunkering move at a Chinese port. The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol from supplier Shanghai Electric Group, CMA CGM said in a statement Monday. “The completion of China’s largest single biomethanol bunkering operation with CMA CGM marks a significant leap in Shanghai Port’s biomethanol bunkering capacity,” Luo Wenbin, managing director of SIPG Energy, part of the Shanghai International Port Group (SIPG), said in the statement. The Marseilles-based carrier is preparing to operate around 200 dual-fuel container vessels by 2031, all capable of running on low-carbon energy such as bio- and e-liquified natural gas as well as bio- and e-methanol. Farid Trad, vice president of group energy transition at CMA CGM, said the bunkering of Osmium marked “a defining moment in (the carrier’s) decarbonization journey.” “Together with SIPG Energy, we are demonstrating that cleaner, low-carbon shipping is no longer an aspiration, but a reality,” Trad said in the statement. Shanghai Port is developing its position as a global sustainable energy bunkering hub, and CMA CGM’s long-standing collaboration with partners SIPG Energy and Shanghai Electric Group include a long-term LNG bunkering partnership with SIPG and the framework agreement on long-term biomethanol supply. Biomethanol is a low-carbon fuel produced from renewable or waste-based biomass that can offer lifecycle greenhouse gas emission reductions of more than 65% compared with conventional marine fuels. Despite uncertainties caused by the International Maritime Organization’s decision last October to delay the adoption of its net-zero framework for a year, the container shipping industry has continued to invest heavily in dual-fuel vessels and bunkering infrastructure. Data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that 6.44 million TEUs of capacity for LNG dual-fuel ships are currently on order, compared with 1.6 million TEUs of methanol-capable vessels. Industry coalition SEA-LNG estimated in a recent report that investment in LNG dual-fuel vessels and associated fuel supply chains over the past 10 years has amounted to more than $150 billion. A large portion of that is going into the supply side, with fuel availability at scale crucial for the global shipping industry. Contact Greg Knowler at greg.knowler@spglobal.com .

Port News

Container lines

International ports

Container Shipping News

Maritime

CMA CGM sets Chinese volume record with Shanghai biomethanol bunkering

<div class="phx-topic abstract-wrapper">The carrier said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook this year.</div>

The carrier said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook this year.

<div class="phx-topic">Container shipping is expected to see moderate growth this year, although developments in the Middle East will be a key factor impacting the market and freight rates, CMA CGM said Friday. The carrier, in a statement announcing its fourth-quarter and full-year 2025 results, said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook. “In 2026, in a context of heightened tensions, particularly in the Middle East, our priority is clear: protecting our teams and adapting our operations to ensure our customers continue to receive a reliable and high-quality service,” Rodolphe Saadé, CMA CGM chairman and CEO, said in the statement. “At the same time, we are pursuing our development, continuing to invest in our industrial assets and to strengthen our global network.” While CMA CGM saw container volumes climb in the fourth quarter and for the year, revenues and profitability at the group and shipping division level were hit by the drop in freight rates. The company said group net profit dropped 58% to $2.3 billion last year from $5.7 billion in the prior year. Revenue slipped 2% to $54 billion. Revenue at its shipping division fell 6% to $34.3 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 30% to $7.9 billion last year. The drop in profitability was even more marked in the fourth quarter after EBITDA slumped 48% to $1.5 billion. That came even though CMA CGM said it “outperformed” the wider market with a 5.3% increase in container volumes in the fourth quarter, to 6.3 million TEUs. Volumes rose 3% to 24.2 million TEUs for the full year, though average revenue per TEU fell 9% to $1,414. CMA CGM’s results showed the 2025 financial damage accelerated in the fourth quarter, similar to the <a href="https://www.joc.com/article/gemini-benefits-face-looming-challenge-from-oversupplied-market-maersk-ceo-6164887">full-year earnings of Maersk</a> and the <a href="https://www.joc.com/article/frontloading-drags-one-to-a-loss-in-its-fiscal-third-quarter-6161263">fiscal third-quarter results of Ocean Network Express</a>. Still, Maritime consultant Drewry has upgraded its financial year 2025 profit forecast from $20 billion to $32 billion following “better-than-expected” third-quarter results from carriers and raised the outlook for 2026 from a $10 billion loss to a $1 billion profit. <h3>Air freight, terminals business show strength </h3>CMA CGM’s logistics division, which includes CEVA Logistics, saw revenues largely unchanged on a quarterly basis and over the full year at about $5 billion and $18 billion, respectively. Full year EBITDA was also stable at $1.7 billion, although it fell 11% to $440 million in the fourth quarter, which the carrier said was due to a volatile market and “challenges affecting the automotive sector.” Air cargo and the carrier’s terminals businesses were the star performers last year, helping CMA CGM’s other activities to post a 48% increase in revenue to $4.3 billion last year. On a quarterly basis, revenue rose 39% to $1.3 billion. EBITDA soared 115% to $958 million in the full year and jumped 74% in the fourth quarter to $278 million. The terminals operation expanded with the acquisition of a 51% stake in Santos Brasil last April. CMA CGM said the air freight business was buoyed with the acquisition last year of freighter airline Air Belgium and the addition of a fifth Boeing 777 freighter deployed on trans-Pacific services. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Container shipping is expected to see moderate growth this year, although developments in the Middle East will be a key factor impacting the market and freight rates, CMA CGM said Friday. The carrier, in a statement announcing its fourth-quarter and full-year 2025 results, said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook. “In 2026, in a context of heightened tensions, particularly in the Middle East, our priority is clear: protecting our teams and adapting our operations to ensure our customers continue to receive a reliable and high-quality service,” Rodolphe Saadé, CMA CGM chairman and CEO, said in the statement. “At the same time, we are pursuing our development, continuing to invest in our industrial assets and to strengthen our global network.” While CMA CGM saw container volumes climb in the fourth quarter and for the year, revenues and profitability at the group and shipping division level were hit by the drop in freight rates. The company said group net profit dropped 58% to $2.3 billion last year from $5.7 billion in the prior year. Revenue slipped 2% to $54 billion. Revenue at its shipping division fell 6% to $34.3 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 30% to $7.9 billion last year. The drop in profitability was even more marked in the fourth quarter after EBITDA slumped 48% to $1.5 billion. That came even though CMA CGM said it “outperformed” the wider market with a 5.3% increase in container volumes in the fourth quarter, to 6.3 million TEUs. Volumes rose 3% to 24.2 million TEUs for the full year, though average revenue per TEU fell 9% to $1,414. CMA CGM’s results showed the 2025 financial damage accelerated in the fourth quarter, similar to the full-year earnings of Maersk and the fiscal third-quarter results of Ocean Network Express . Still, Maritime consultant Drewry has upgraded its financial year 2025 profit forecast from $20 billion to $32 billion following “better-than-expected” third-quarter results from carriers and raised the outlook for 2026 from a $10 billion loss to a $1 billion profit. Air freight, terminals business show strength CMA CGM’s logistics division, which includes CEVA Logistics, saw revenues largely unchanged on a quarterly basis and over the full year at about $5 billion and $18 billion, respectively. Full year EBITDA was also stable at $1.7 billion, although it fell 11% to $440 million in the fourth quarter, which the carrier said was due to a volatile market and “challenges affecting the automotive sector.” Air cargo and the carrier’s terminals businesses were the star performers last year, helping CMA CGM’s other activities to post a 48% increase in revenue to $4.3 billion last year. On a quarterly basis, revenue rose 39% to $1.3 billion. EBITDA soared 115% to $958 million in the full year and jumped 74% in the fourth quarter to $278 million. The terminals operation expanded with the acquisition of a 51% stake in Santos Brasil last April. CMA CGM said the air freight business was buoyed with the acquisition last year of freighter airline Air Belgium and the addition of a fifth Boeing 777 freighter deployed on trans-Pacific services. Contact Keith Wallis at keithwallis@hotmail.com .

CMA CGM preps for challenging year after 2025 revenue, profit decline

<div class="phx-topic abstract-wrapper">The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports.</div>

The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports.

<div class="phx-topic">Gemini Cooperation is suspending some Middle East services, including those to Europe and Asia as well as regional shuttles, due to the ongoing war in the region. The alliance is also adding a new Asia-Europe loop that would partially replace the suspended east-west services, partners Maersk and Hapag-Lloyd said Friday. Maersk said the suspensions are being made “following our latest risk assessment and operational review and considering the escalating conflict affecting safe navigation in the Gulf region.” “This decision has been taken as a precautionary measure to ensure the safety of our personnel and vessels while minimizing operational disruption across our wider network,” the carrier added in its advisory. The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports including Jebel Ali, Dammam, Umm Qasr, Sohar, Khalifa, Sharjah, and Al Jubail. Container ports in the Gulf usually book 3.4 million TEUs per year with an estimated cargo value of $140 billion, according to Vizion’s Tradeview platform. The Gemini partners said two mainline services — ME11/IMX linking the Middle East, India and the Mediterranean and FM1/AGX linking Asia and the Middle East — would be halted starting next week. But a new AE19/SE4 service would be launched from March 13 that would replace most of the Asia port calls lost with the suspension of the FM1/AGX. Maersk said the westbound FM1 service being operated by the 10,100-TEU Vung Tau Express would terminate at Tanjung Pelepas in Malaysia on March 9 while the ME11 served by the 15,100-TEU Astrid Maersk would be curtailed at Salalah in Oman on March 13. The carrier said it was still determining the final eastbound FM1 and ME11 voyages and would inform shippers and cargo owners once discharge and contingency plans are confirmed. The ME11/IMX loop normally calls at Jebel Ali and Salalah, along with other ports such as Nheva Shava, Port Said and Valencia, while the FM1/AGX service calls at Jebel Ali in addition to its Asia calls at ports including Pusan, Shanghai, Ningbo, and Tanjung Pelepas. But US and Israeli strikes on Iran and Tehran’s retaliation across the region mean the risk of drone and missile attacks in the Strait of Hormuz has closed the area to shipping, including access to Jebel Ali. As a result, the carriers said they have also dropped Jebel Ali from Gemini’s ME1/IOS service. The revised rotation is now Mundra, Nhava Sheva, Salalah, Port Tangier (TC1), Rotterdam, Wilhelmshaven, Hamburg and London Gateway. <h3>New Gemini service to ease capacity cut </h3>To fill the reduction in cargo capacity caused by the FM1/AGX service suspension, the new Gemini AE19/SE4 loop will call at Jeddah in Saudi Arabia plus its West Med and East Med hubs at Tangier and Damietta (Egypt), respectively. The full rotation, via the Cape of Good Hope, is Xingang, Qingdao, Busan, Ningbo, Shanghai, Tanjung Pelepas, West Med hub, East Med hub, Jeddah, West Med hub, Singapore, and Xingang. The carriers said the first westbound sailing will be by the 13,092-TEU Maersk Elba at Xingang on March 13. The new service “will enable more flexibility and routing options for customers’ supply chain,” Maersk said in an advisory. Three Middle East/Gulf shuttles — OGS, UG2, and UGS — will also stop while Jebel Ali will be omitted from the rotation of the PKS service, which has a revised rotation of Karachi, Bin Qasim, Salalah, and Karachi. Hapag-Lloyd said alternatives are being evaluated following the demise of the shuttles, with details to be confirmed shortly. Meanwhile, Yang Ming said Friday it is declaring “an end of voyage” for cargo currently stranded at transshipment ports. Yang Ming’s other Premier Alliance partners, Ocean Network Express and HMM, have yet to confirm if the measure applies to them. ONE did announce Friday it was imposing an emergency surcharge of $1,200 per 20-foot container and $2,400 per 40-foot box on all imports and exports to and from Persian Gulf countries including Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait, Oman, Qatar, and the United Arab Emirates, that have not been discharged or loaded by March 4. The carrier said the surcharge also applies to all cargo currently in transit, which will be diverted to the next safe port of discharge. At these contingency ports, cargo will be discharged and placed at the disposal of the customer for local pickup and subsequent handling. CMA CGM, meanwhile, has abandoned all alternative Middle East port options it was evaluating to keep shipping schedules running as best as possible. Sohar in Oman and Khor Fakkan in the UAE were part of those interim plans, but the carrier finally found even them unworkable in the current volatile scenario. CMA CGM is the latest carrier to declare a total “end of voyage” for Middle East coverage. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. Special correspondent Bency Mathew contributed to this report. </div>

Gemini Cooperation is suspending some Middle East services, including those to Europe and Asia as well as regional shuttles, due to the ongoing war in the region. The alliance is also adding a new Asia-Europe loop that would partially replace the suspended east-west services, partners Maersk and Hapag-Lloyd said Friday. Maersk said the suspensions are being made “following our latest risk assessment and operational review and considering the escalating conflict affecting safe navigation in the Gulf region.” “This decision has been taken as a precautionary measure to ensure the safety of our personnel and vessels while minimizing operational disruption across our wider network,” the carrier added in its advisory. The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports including Jebel Ali, Dammam, Umm Qasr, Sohar, Khalifa, Sharjah, and Al Jubail. Container ports in the Gulf usually book 3.4 million TEUs per year with an estimated cargo value of $140 billion, according to Vizion’s Tradeview platform. The Gemini partners said two mainline services — ME11/IMX linking the Middle East, India and the Mediterranean and FM1/AGX linking Asia and the Middle East — would be halted starting next week. But a new AE19/SE4 service would be launched from March 13 that would replace most of the Asia port calls lost with the suspension of the FM1/AGX. Maersk said the westbound FM1 service being operated by the 10,100-TEU Vung Tau Express would terminate at Tanjung Pelepas in Malaysia on March 9 while the ME11 served by the 15,100-TEU Astrid Maersk would be curtailed at Salalah in Oman on March 13. The carrier said it was still determining the final eastbound FM1 and ME11 voyages and would inform shippers and cargo owners once discharge and contingency plans are confirmed. The ME11/IMX loop normally calls at Jebel Ali and Salalah, along with other ports such as Nheva Shava, Port Said and Valencia, while the FM1/AGX service calls at Jebel Ali in addition to its Asia calls at ports including Pusan, Shanghai, Ningbo, and Tanjung Pelepas. But US and Israeli strikes on Iran and Tehran’s retaliation across the region mean the risk of drone and missile attacks in the Strait of Hormuz has closed the area to shipping, including access to Jebel Ali. As a result, the carriers said they have also dropped Jebel Ali from Gemini’s ME1/IOS service. The revised rotation is now Mundra, Nhava Sheva, Salalah, Port Tangier (TC1), Rotterdam, Wilhelmshaven, Hamburg and London Gateway. New Gemini service to ease capacity cut To fill the reduction in cargo capacity caused by the FM1/AGX service suspension, the new Gemini AE19/SE4 loop will call at Jeddah in Saudi Arabia plus its West Med and East Med hubs at Tangier and Damietta (Egypt), respectively. The full rotation, via the Cape of Good Hope, is Xingang, Qingdao, Busan, Ningbo, Shanghai, Tanjung Pelepas, West Med hub, East Med hub, Jeddah, West Med hub, Singapore, and Xingang. The carriers said the first westbound sailing will be by the 13,092-TEU Maersk Elba at Xingang on March 13. The new service “will enable more flexibility and routing options for customers’ supply chain,” Maersk said in an advisory. Three Middle East/Gulf shuttles — OGS, UG2, and UGS — will also stop while Jebel Ali will be omitted from the rotation of the PKS service, which has a revised rotation of Karachi, Bin Qasim, Salalah, and Karachi. Hapag-Lloyd said alternatives are being evaluated following the demise of the shuttles, with details to be confirmed shortly. Meanwhile, Yang Ming said Friday it is declaring “an end of voyage” for cargo currently stranded at transshipment ports. Yang Ming’s other Premier Alliance partners, Ocean Network Express and HMM, have yet to confirm if the measure applies to them. ONE did announce Friday it was imposing an emergency surcharge of $1,200 per 20-foot container and $2,400 per 40-foot box on all imports and exports to and from Persian Gulf countries including Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait, Oman, Qatar, and the United Arab Emirates, that have not been discharged or loaded by March 4. The carrier said the surcharge also applies to all cargo currently in transit, which will be diverted to the next safe port of discharge. At these contingency ports, cargo will be discharged and placed at the disposal of the customer for local pickup and subsequent handling. CMA CGM, meanwhile, has abandoned all alternative Middle East port options it was evaluating to keep shipping schedules running as best as possible. Sohar in Oman and Khor Fakkan in the UAE were part of those interim plans, but the carrier finally found even them unworkable in the current volatile scenario. CMA CGM is the latest carrier to declare a total “end of voyage” for Middle East coverage. Contact Keith Wallis at keithwallis@hotmail.com . Special correspondent Bency Mathew contributed to this report.

Asia-Europe

Gemini suspends, revamps Middle East services amid growing conflict

<div class="phx-topic abstract-wrapper">The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.</div>

The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.

<div class="phx-topic">CMA CGM is launching a standalone direct service between India and the US West Coast (USWC) in another apparent revamp of its Asian networks after just <a href="https://www.joc.com/article/cma-cgm-to-launch-standalone-japan-europe-express-service-in-april-6177297">announcing a new Japan-Europe express service</a> to start in early April. As market updates suggest, the Marseille-based carrier has extended the port rotation of its Pearl River Express service between South China and the USWC to the Indian subcontinent, using about 13 vessels with capacities of 10,000 to 13,000 TEUs. The extended weekly loop includes four ports of call across the subcontinent: Nhava Sheva and Mundra in West India, Karachi in Pakistan, and Colombo in Sri Lanka. The relaunched Pearl’s full eastbound rotation will be Nhava Sheva, Mundra, Karachi, Colombo, Singapore, Haiphong, Xiamen, Nansha, Yantian and Los Angeles. On the westbound leg, vessels will call Los Angeles, Gwangyang, Qingdao, Shanghai, Ningbo, Shekou, Singapore, Nhava Sheva, Mundra and Karachi, according to a CMA CGM India advisory. The rotation structure seems to be in sync with ongoing Indian port restrictions for Pakistan transit cargo. CMA-CGM said the service upgrade seeks to enhance connectivity and coverage for Indian trades to the USWC. “The Pearl service will now offer an exclusive and direct connection from West India, Pakistan and Sri Lanka ports to Los Angeles,” the carrier said. The service is due to begin with the 10,000-TEU APL Qingdao departing Nhava Sheva March 30, offering a declared transit time of 47 days to Los Angeles. The restructured Pearl will compete with Ocean Network Express’ Pacific South 3 service, currently the only direct connection on the trade lane, which offers a faster 36-day transit from Nhava Sheva to Los Angeles. CMA CGM has typically relied on transshipment over Asian ports for coverage of trades between India and the USWC, mainly feeding via its Asia-Subcontinent Express (AS1) service with calls at Nhava Sheva and Mundra, according to industry sources. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1cf22f06-bc03-4442-9050-628846faea40"></dynamic-object></div>New direct links between India and the US come amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations. Industry data also points to an upward move in Nhava Sheva-Los Angeles spot rates, pegged at $2,500 per FEU for late March sailings, compared with the current $1,500 per FEU, sources said. Indian exports to the West Coast have shown some strength of late, hitting 19,117 TEUs in January, the highest since September, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM is launching a standalone direct service between India and the US West Coast (USWC) in another apparent revamp of its Asian networks after just announcing a new Japan-Europe express service to start in early April. As market updates suggest, the Marseille-based carrier has extended the port rotation of its Pearl River Express service between South China and the USWC to the Indian subcontinent, using about 13 vessels with capacities of 10,000 to 13,000 TEUs. The extended weekly loop includes four ports of call across the subcontinent: Nhava Sheva and Mundra in West India, Karachi in Pakistan, and Colombo in Sri Lanka. The relaunched Pearl’s full eastbound rotation will be Nhava Sheva, Mundra, Karachi, Colombo, Singapore, Haiphong, Xiamen, Nansha, Yantian and Los Angeles. On the westbound leg, vessels will call Los Angeles, Gwangyang, Qingdao, Shanghai, Ningbo, Shekou, Singapore, Nhava Sheva, Mundra and Karachi, according to a CMA CGM India advisory. The rotation structure seems to be in sync with ongoing Indian port restrictions for Pakistan transit cargo. CMA-CGM said the service upgrade seeks to enhance connectivity and coverage for Indian trades to the USWC. “The Pearl service will now offer an exclusive and direct connection from West India, Pakistan and Sri Lanka ports to Los Angeles,” the carrier said. The service is due to begin with the 10,000-TEU APL Qingdao departing Nhava Sheva March 30, offering a declared transit time of 47 days to Los Angeles. The restructured Pearl will compete with Ocean Network Express’ Pacific South 3 service, currently the only direct connection on the trade lane, which offers a faster 36-day transit from Nhava Sheva to Los Angeles. CMA CGM has typically relied on transshipment over Asian ports for coverage of trades between India and the USWC, mainly feeding via its Asia-Subcontinent Express (AS1) service with calls at Nhava Sheva and Mundra, according to industry sources. New direct links between India and the US come amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations. Industry data also points to an upward move in Nhava Sheva-Los Angeles spot rates, pegged at $2,500 per FEU for late March sailings, compared with the current $1,500 per FEU, sources said. Indian exports to the West Coast have shown some strength of late, hitting 19,117 TEUs in January, the highest since September, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM adds direct India-USWC string as part of Asia network overhaul

<div class="phx-topic abstract-wrapper">The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility and disruption in the market.</div>

The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility and disruption in the market.

<div class="phx-topic">Intercontinental Exchange (ICE) on Friday said it intends to launch four container freight futures contracts next month covering shipping routes linking Asia, Europe and the US. Subject to regulatory approval, the contracts will begin trading on ICE, owner of the New York Stock Exchange, on April 7, ICE said in a statement. The contracts, which ICE said “are designed to help the market manage container freight [price] risk,” will be indexed to the New York Shipping Exchange’s (NYSHEX’s) Freight Indices price assessments, <a href="https://www.joc.com/article/nyshex-enters-container-index-fray-targeting-floating-rate-contract-adoption-5996516">which were unveiled last May.</a>The four futures contracts, which will be US-denominated and cash-settled, will cover Asia to the US West Coast, Asia to the US East Coast, Asia to North Europe, and North Europe to the US East Coast. The ICE futures do not represent physical slots on container ships; they are a financial instrument that allows investors to hedge against future spot rate movements. The push to launch futures contracts for container shipping <a href="https://www.joc.com/article/near-constant-disruption-giving-new-momentum-to-freight-futures-5979859">has gained momentum in recent years</a> given the seemingly never-ending volatility in the market — from the supply chain disruption caused by the COVID-19 pandemic, the lengthy and costly vessel diversions around southern Africa to avoid the Red Sea and Suez Canal, and now with up to 10% of global capacity tied up due to the war in the Middle East. One big question about container shipping futures has been the potential liquidity of the market, meaning whether the contacts could gain enough traction and eventually become heavily traded. Previous attempts at launching similar container rate futures markets have struggled to generate demand. ICE sought to ease those doubts by pointing out the four contracts “will be supported by [its] network of extremely liquid energy markets.” Open interest, or the number of actively traded contracts, for ICE’s total oil market was at a record 18.7 million contracts as of Feb. 23, it said. “The container shipping industry is massive and critical for global trade, yet it is incredibly volatile,” Gordon Downes, CEO and co-founder of NYSHEX, said in the statement. “With the launch of ICE’s new freight futures, the market participants can far more easily hedge against unexpected swings in the market price.” Contact Kevin Saville at <a href="mailto:kevin.saville2@spglobal.com">kevin.saville2@spglobal.com</a>.</div>

Intercontinental Exchange (ICE) on Friday said it intends to launch four container freight futures contracts next month covering shipping routes linking Asia, Europe and the US. Subject to regulatory approval, the contracts will begin trading on ICE, owner of the New York Stock Exchange, on April 7, ICE said in a statement. The contracts, which ICE said “are designed to help the market manage container freight [price] risk,” will be indexed to the New York Shipping Exchange’s (NYSHEX’s) Freight Indices price assessments, which were unveiled last May. The four futures contracts, which will be US-denominated and cash-settled, will cover Asia to the US West Coast, Asia to the US East Coast, Asia to North Europe, and North Europe to the US East Coast. The ICE futures do not represent physical slots on container ships; they are a financial instrument that allows investors to hedge against future spot rate movements. The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility in the market — from the supply chain disruption caused by the COVID-19 pandemic, the lengthy and costly vessel diversions around southern Africa to avoid the Red Sea and Suez Canal, and now with up to 10% of global capacity tied up due to the war in the Middle East. One big question about container shipping futures has been the potential liquidity of the market, meaning whether the contacts could gain enough traction and eventually become heavily traded. Previous attempts at launching similar container rate futures markets have struggled to generate demand. ICE sought to ease those doubts by pointing out the four contracts “will be supported by [its] network of extremely liquid energy markets.” Open interest, or the number of actively traded contracts, for ICE’s total oil market was at a record 18.7 million contracts as of Feb. 23, it said. “The container shipping industry is massive and critical for global trade, yet it is incredibly volatile,” Gordon Downes, CEO and co-founder of NYSHEX, said in the statement. “With the launch of ICE’s new freight futures, the market participants can far more easily hedge against unexpected swings in the market price.” Contact Kevin Saville at kevin.saville2@spglobal.com .

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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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