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<div class="phx-topic abstract-wrapper">A new app marketplace connecting drayage providers and two terminals in Los Angeles could lay down a marker for how software integrations and common data standards will make harbor truckers lives more manageable in the Southern California port complex.
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A new app marketplace connecting drayage providers and two terminals in Los Angeles could lay down a marker for how software integrations and common data standards will make harbor truckers lives more manageable in the Southern California port complex.

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<div>Voyage Control, a technology supplier to two terminals in the Port of Los Angeles, on Thursday opened a new application marketplace designed to allow users to tap into direct integrations with partner software providers in Southern California’s container complex.An example of the utility of such a marketplace, also unveiled Thursday, is an application programming interface (API) connecting Yusen Terminals (YTI), one of the Voyage Control customers, with drayage transportation management systems (TMSs). Voyage Control provides YTI with an appointment system for drayage providers, and the API allows drayage providers to be notified of container availability directly through their TMSs.The availability...

Voyage Control, a technology supplier to two terminals in the Port of Los Angeles, on Thursday opened a new application marketplace designed to allow users to tap into direct integrations with partner software providers in Southern California’s container complex. An example of the utility of such a marketplace, also unveiled Thursday, is an application programming interface (API) connecting Yusen Terminals (YTI), one of the Voyage Control customers, with drayage transportation management systems (TMSs). Voyage Control provides YTI with an appointment system for drayage providers, and the API allows drayage providers to be notified of container availability directly through their TMSs. The availability API was trialed at YTI with TMS provider Compcare Services and drayage provider Tradelink Transport. Along with Voyage Control, all four companies are members of the Harbor Trucking Association (HTA), which has made the proliferation of APIs in the Southern California port complex a key initiative. Tradelink vetted the efficacy of the API, and will be offering it to all its customers moving containers in and out of YTI, Compcare CEO Jim Hickman said in a statement. APIs, integrations gaining traction in supply chain James Swanston, CEO of Voyage Control, told JOC.com that API usage and software integrations are the norm in other industries and are becoming more prevalent in container logistics as the industry copes with the need for visibility and as e-commerce becomes a larger source of end-customer orders. “The use of integrations has brought immense benefit in some of the other sectors we work in globally,” said Swanston. Voyage Control also provides software for construction, events, and facilities management clients. HTA CEO Weston LaBar, in particular, has been championing the need for APIs , interoperability, and common data standards in the two ports’ terminals and the systems they use so drayage companies can have a consistent experience across the range of terminals in Los Angeles and Long Beach. “The core mission of the HTA is to make the lives of our members easier,” LaBar said in the statement. “We have taken an ecosystem approach to optimizing the supply chain. As an industry, we need to abandon the siloed approach of yesterday and embrace collaboration that benefits all stakeholders.” The Voyage Control marketplace is intended to be a step in that direction in that it connects logistics-specific software, such as Compcare, with the terminal operating system provider Navis, and the intermodal and trucking fuel software provider Trinium, as well as multipurpose enterprise software such as the payments platform Stripe, Microsoft Power BI, and the mapping software HERE. The marketplace will also be open to non-partner developers to build API-based integrations. The availability API will be followed by integrations for pre-advise information, where drayage providers give advance notification that a specific container will gate-in for a specific vessel, as well as information regarding appointments and gate transactions, HTA said in the statement. Contact Eric Johnson at eric.johnson@ihsmarkit.com and follow him on Twitter: @LogTechEric .

Container availability API heralds drayage integration promise in LA/LB

<div class="phx-topic abstract-wrapper">With other low-emissions bunkers like methanol still in short supply, vessel operators are turning to dual-fuel LNG container ships as a transitional step toward a zero-carbon future by 2050. </div>

With other low-emissions bunkers like methanol still in short supply, vessel operators are turning to dual-fuel LNG container ships as a transitional step toward a zero-carbon future by 2050.

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<div class="phx-topic">With the global shipping decarbonization agenda brought to an abrupt halt at the International Maritime Organization (IMO) in mid-October, an emerging reality is taking hold: LNG is becoming the go-to alternative fuel of choice for container lines. Increasingly, carriers are committing to LNG-fueled container ships over other alternative fuels such as methanol, seeing LNG as a viable and easily malleable step towards a zero-carbon future by 2050, as enshrined in current IMO policy. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6104141_0.1.jpg"></img></div>The number of LNG-fueled container ships on order has grown from 194 in late 2023 to 362 as of mid-October, according to S&amp;P Global Market Intelligence. What’s more, the percentage of vessels on order capable of running on LNG has grown to 40% from 23% during the same period, while the percentage of methanol-powered ships was unchanged at 15%. The 218 LNG container ships currently in operation represent 3.5% of the global container ship fleet. S&amp;P Global is the parent company of the Journal of Commerce. A senior carrier executive who asked not to be identified noted that even before the IMO <a href="https://www.joc.com/article/delay-in-imo-decarbonization-plans-robs-green-fuel-investors-of-certainty-6101250">punted on its net-zero framework</a>, LNG had already become the “mainstream marine fuel” for new vessel orders. “We could see [LNG] becoming even more significant in the current environment, because well-to-tank data is improving, methane slip will be dealt with and we see fossil but also bio and synthetic as pathways for LNG,” the executive added. Using LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress towards decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it pivoted from methanol to LNG for its next round of 50 to 60 vessels. And crucially, all LNG container ships in operation and on order have dual-fuel engines, meaning they can burn either LNG or traditional bunkers. That gives carriers a high degree of flexibility in terms of which fuel a ship actually uses at any given time. Depending on price and availability, carriers can operate using LNG or traditional bunkers or a combination, something vessel operations executives say is already happening. Estimates of the amount of LNG used vary widely; some sources that spoke with the Journal of Commerce said LNG-capable ships only burn LNG 5% to 10% of the time, while others say it's closer to 50%. In other words, not only is LNG itself a transitional fuel, but LNG ships are being used as a transitional solution. Being the most consumer-facing maritime sector, container lines have long felt a need to be at the forefront of decarbonization. Through the World Shipping Council (WSC), they supported the IMO <a href="https://www.imo.org/en/mediacentre/hottopics/pages/faqs-the-imo-net-zero-framework.aspx">Net-Zero Framework</a> that was postponed for at least a year following strident opposition from the US. Patrick Verhoven, managing director of the International Association of Ports and Harbors, described the delay as a “major setback for the maritime industry.” Dual-fuel container ship and vehicle carrier orders account for 79% of the current order book, compared with 14% for the rest of the fleet, including tankers and bulk carriers, according to the WSC. With the order book dominated by the major carriers, given actual environmental regulation — in the case of the EU — and possible future requirements from the IMO, their effort to secure LNG tonnage at scale raises the bar for new entrants and smaller carriers looking to scale. LNG is more widely available than other alternative fuels like methanol and, at least currently, is about 25% more expensive than very low-sulfur fuel oil (VLSFO). That, plus the ability to limit use of LNG, means carriers aren’t forced to charge customers a premium, which would undermine their competitiveness. In addition, solutions are being developed to mitigate methane emissions, which are 80 times worse for the environment than carbon dioxide, from LNG power plants. For example, a consortium including Mitsui O.S.K. Lines last year said it achieved a 93.8% reduction of methane slip from LNG-fueled vessels through catalyst and engine improvements. Still, LNG ships come with their own operational issues. The LNG tank must be cooled to -162 degrees C (-260 degrees F), and a minimum quantity must always be kept inside; otherwise, the fuel can’t be bunkered until re-cooled. Re-cooling, in turn, requires the ship to be idled for three days, with costs that can run into the hundreds of thousands of dollars, said Nils Roche, CEO of Solvens Advisory and former deputy general manager for operations at PIL. As a result, ship operators frequently use traditional bunkers as their primary fuel and LNG only at selected times. If the LNG is not used for propulsion, it’s used to run auxiliary engines that create power for electricity and air conditioning on board the ship. Roche said restrictive contracts with LNG suppliers also complicated matters. Fuel suppliers require one month’s notice to bunker a ship with LNG, compared with just two days’ notice for conventional marine fuel, cancellation fees can run into the millions, and ships typically only have a two-to-three-day window for bunkering. “If you are not available at that point, they will go to someone else,” he said. “And you just pray that somebody else in another couple of days will not make it, and you can take their slot.” Price is naturally a big consideration. Carriers will sometimes avoid LNG bunkering to the extent possible during December, January and February, due to higher winter prices. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

With the global shipping decarbonization agenda brought to an abrupt halt at the International Maritime Organization (IMO) in mid-October, an emerging reality is taking hold: LNG is becoming the go-to alternative fuel of choice for container lines. Increasingly, carriers are committing to LNG-fueled container ships over other alternative fuels such as methanol, seeing LNG as a viable and easily malleable step towards a zero-carbon future by 2050, as enshrined in current IMO policy. The number of LNG-fueled container ships on order has grown from 194 in late 2023 to 362 as of mid-October, according to S&P Global Market Intelligence. What’s more, the percentage of vessels on order capable of running on LNG has grown to 40% from 23% during the same period, while the percentage of methanol-powered ships was unchanged at 15%. The 218 LNG container ships currently in operation represent 3.5% of the global container ship fleet. S&P Global is the parent company of the Journal of Commerce. A senior carrier executive who asked not to be identified noted that even before the IMO punted on its net-zero framework , LNG had already become the “mainstream marine fuel” for new vessel orders. “We could see [LNG] becoming even more significant in the current environment, because well-to-tank data is improving, methane slip will be dealt with and we see fossil but also bio and synthetic as pathways for LNG,” the executive added. Using LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress towards decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it pivoted from methanol to LNG for its next round of 50 to 60 vessels. And crucially, all LNG container ships in operation and on order have dual-fuel engines, meaning they can burn either LNG or traditional bunkers. That gives carriers a high degree of flexibility in terms of which fuel a ship actually uses at any given time. Depending on price and availability, carriers can operate using LNG or traditional bunkers or a combination, something vessel operations executives say is already happening. Estimates of the amount of LNG used vary widely; some sources that spoke with the Journal of Commerce said LNG-capable ships only burn LNG 5% to 10% of the time, while others say it's closer to 50%. In other words, not only is LNG itself a transitional fuel, but LNG ships are being used as a transitional solution. Being the most consumer-facing maritime sector, container lines have long felt a need to be at the forefront of decarbonization. Through the World Shipping Council (WSC), they supported the IMO Net-Zero Framework that was postponed for at least a year following strident opposition from the US. Patrick Verhoven, managing director of the International Association of Ports and Harbors, described the delay as a “major setback for the maritime industry.” Dual-fuel container ship and vehicle carrier orders account for 79% of the current order book, compared with 14% for the rest of the fleet, including tankers and bulk carriers, according to the WSC. With the order book dominated by the major carriers, given actual environmental regulation — in the case of the EU — and possible future requirements from the IMO, their effort to secure LNG tonnage at scale raises the bar for new entrants and smaller carriers looking to scale. LNG is more widely available than other alternative fuels like methanol and, at least currently, is about 25% more expensive than very low-sulfur fuel oil (VLSFO). That, plus the ability to limit use of LNG, means carriers aren’t forced to charge customers a premium, which would undermine their competitiveness. In addition, solutions are being developed to mitigate methane emissions, which are 80 times worse for the environment than carbon dioxide, from LNG power plants. For example, a consortium including Mitsui O.S.K. Lines last year said it achieved a 93.8% reduction of methane slip from LNG-fueled vessels through catalyst and engine improvements. Still, LNG ships come with their own operational issues. The LNG tank must be cooled to -162 degrees C (-260 degrees F), and a minimum quantity must always be kept inside; otherwise, the fuel can’t be bunkered until re-cooled. Re-cooling, in turn, requires the ship to be idled for three days, with costs that can run into the hundreds of thousands of dollars, said Nils Roche, CEO of Solvens Advisory and former deputy general manager for operations at PIL. As a result, ship operators frequently use traditional bunkers as their primary fuel and LNG only at selected times. If the LNG is not used for propulsion, it’s used to run auxiliary engines that create power for electricity and air conditioning on board the ship. Roche said restrictive contracts with LNG suppliers also complicated matters. Fuel suppliers require one month’s notice to bunker a ship with LNG, compared with just two days’ notice for conventional marine fuel, cancellation fees can run into the millions, and ships typically only have a two-to-three-day window for bunkering. “If you are not available at that point, they will go to someone else,” he said. “And you just pray that somebody else in another couple of days will not make it, and you can take their slot.” Price is naturally a big consideration. Carriers will sometimes avoid LNG bunkering to the extent possible during December, January and February, due to higher winter prices. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

LNG increasingly alternative fuel of choice for container lines

<div class="phx-topic abstract-wrapper">Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope.</div>

Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope.

<div class="phx-topic">Multipurpose vessel (MPV) operators are facing worsening port congestion and longer berthing times, leading carriers to adopt a raft of measures including calling at alternative ports and using digital tools, maritime executives say. Among the worst hit ports is Houston, where the average wait for MPVs increased six-fold to 42 days in August from seven days in August 2024, according to Esgian, an Oslo-based software and data platform that monitors the MPV and roll-on/roll-off sectors. In Rotterdam, anchorage wait times have tripled, said Esgian. Norwegian MPV operator G2 Ocean also highlighted lengthy delays at some Middle Eastern ports, with MPV vessels waiting between 25 and 30 days, and in South America, with vessels waiting up to 15 days. Saudi Arabia has been especially affected by congestion-related delays, G2 Ocean said. Edwin Peh, G2 Ocean’s project cargo director for the Pacific and global capital projects, said congestion is occurring in several regions “with persistent delays at key terminals and vessels waiting days or even weeks for berth access.” Peh said Los Angeles and Long Beach are among the US West Coast ports affected by long waiting times that have impacted MPV operators. By comparison, other ports — including Benicia, north of Oakland — have seen an increase in port calls “suggesting operators are diversifying and spreading calls more evenly,” according to Esgian. “Congestion has clearly worsened over the past few months — particularly at major hubs like Rotterdam,” Gustav Heiberg, Esgian’s senior vice president and head of shipping, told the Journal of Commerce. “Earlier this year [in Rotterdam], we recorded 34 days of cumulative anchorage time across 33 events,” Heiberg said. “By August, that figure had risen to 99 days across 45 events.” Events include bad weather, labor disruptions, and high landside utilization. “We’re seeing operators adapt in several ways to manage congestion and maintain reliability,” he added. “Many are spreading cargo volumes across multiple ports, while others are adjusting project timelines or shipment sequencing to align with available capacity.” <h3>Volumes rise due to industrial, energy projects </h3>Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope. Not only have these projects led to an increase in ship movements, but the intense cargo handling requirements of bulky and heavy shipments is straining port and inland infrastructure, especially where breakbulk handling capacity and experience are limited, G2 Ocean’s Peh said. Breakbulk cargoes take longer to unload and require skilled handling compared with containerized freight. “With the increased cargo demand, dockworkers are drawn to ports near major project sites, creating labor shortages at other ports, resulting in slower operations and increased congestion,” Peh said. Highlighting the surge in Rotterdam, Heiberg said it is one of the busiest ports for MPV operations, handling an average of about 224 calls per month. “The majority of these — about 78% so far this year — are short-sea operations linked to project-related cargo such as offshore wind foundations, steel pipes for the Porthos carbon storage project, and steel plates for the offshore industry,” Heiberg said. He noted that factors such as low water levels on the River Rhine and US import duties on European and Chinese exports haven’t yet had a measurable impact on MPV traffic in the first half of this year. “That reinforces the view that current congestion is largely driven by port and landside operational factors, rather than macro trade shifts, even as vessel calls and project cargo deliveries continue to rise,” Heiberg said. Executives from other operators including AAL Shipping and dship Carriers, which is part of the deugro group, highlighted growing congestion as a significant challenge. “It’s hard to perform and meet the requirements of clients because of congestion,” Henrik Hansen, AAL Shipping’s general manager for the Americas, said at the recent Breakbulk Americas conference. “We want the ships to move — that’s how carriers make money.” <h3>Alternative ports </h3>G2 Ocean is among the carriers using digital tools to monitor port conditions in real time and switch to alternative ports, Peh said. “This provides the flexibility to bypass the most congested ports,” he said. “This approach helps ensure that our customers’ cargo keeps moving, even when faced with challenging port environments.” But there’s a potential downside to seeking alternative ports, including longer transit times or additional administrative requirements, Peh added. “Congestion can also influence the way breakbulk/project cargoes are transported, leading shippers to explore alternative transportation methods such as multimodal solutions to avoid port congestion,” he said. Some carriers have also developed strategic partnerships with shore-side assets such as local port agents and port operators to coordinate arrivals, thereby reducing waiting times and ensuring improved access to berths, executives said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Multipurpose vessel (MPV) operators are facing worsening port congestion and longer berthing times, leading carriers to adopt a raft of measures including calling at alternative ports and using digital tools, maritime executives say. Among the worst hit ports is Houston, where the average wait for MPVs increased six-fold to 42 days in August from seven days in August 2024, according to Esgian, an Oslo-based software and data platform that monitors the MPV and roll-on/roll-off sectors. In Rotterdam, anchorage wait times have tripled, said Esgian. Norwegian MPV operator G2 Ocean also highlighted lengthy delays at some Middle Eastern ports, with MPV vessels waiting between 25 and 30 days, and in South America, with vessels waiting up to 15 days. Saudi Arabia has been especially affected by congestion-related delays, G2 Ocean said. Edwin Peh, G2 Ocean’s project cargo director for the Pacific and global capital projects, said congestion is occurring in several regions “with persistent delays at key terminals and vessels waiting days or even weeks for berth access.” Peh said Los Angeles and Long Beach are among the US West Coast ports affected by long waiting times that have impacted MPV operators. By comparison, other ports — including Benicia, north of Oakland — have seen an increase in port calls “suggesting operators are diversifying and spreading calls more evenly,” according to Esgian. “Congestion has clearly worsened over the past few months — particularly at major hubs like Rotterdam,” Gustav Heiberg, Esgian’s senior vice president and head of shipping, told the Journal of Commerce. “Earlier this year [in Rotterdam], we recorded 34 days of cumulative anchorage time across 33 events,” Heiberg said. “By August, that figure had risen to 99 days across 45 events.” Events include bad weather, labor disruptions, and high landside utilization. “We’re seeing operators adapt in several ways to manage congestion and maintain reliability,” he added. “Many are spreading cargo volumes across multiple ports, while others are adjusting project timelines or shipment sequencing to align with available capacity.” Volumes rise due to industrial, energy projects Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope. Not only have these projects led to an increase in ship movements, but the intense cargo handling requirements of bulky and heavy shipments is straining port and inland infrastructure, especially where breakbulk handling capacity and experience are limited, G2 Ocean’s Peh said. Breakbulk cargoes take longer to unload and require skilled handling compared with containerized freight. “With the increased cargo demand, dockworkers are drawn to ports near major project sites, creating labor shortages at other ports, resulting in slower operations and increased congestion,” Peh said. Highlighting the surge in Rotterdam, Heiberg said it is one of the busiest ports for MPV operations, handling an average of about 224 calls per month. “The majority of these — about 78% so far this year — are short-sea operations linked to project-related cargo such as offshore wind foundations, steel pipes for the Porthos carbon storage project, and steel plates for the offshore industry,” Heiberg said. He noted that factors such as low water levels on the River Rhine and US import duties on European and Chinese exports haven’t yet had a measurable impact on MPV traffic in the first half of this year. “That reinforces the view that current congestion is largely driven by port and landside operational factors, rather than macro trade shifts, even as vessel calls and project cargo deliveries continue to rise,” Heiberg said. Executives from other operators including AAL Shipping and dship Carriers, which is part of the deugro group, highlighted growing congestion as a significant challenge. “It’s hard to perform and meet the requirements of clients because of congestion,” Henrik Hansen, AAL Shipping’s general manager for the Americas, said at the recent Breakbulk Americas conference. “We want the ships to move — that’s how carriers make money.” Alternative ports G2 Ocean is among the carriers using digital tools to monitor port conditions in real time and switch to alternative ports, Peh said. “This provides the flexibility to bypass the most congested ports,” he said. “This approach helps ensure that our customers’ cargo keeps moving, even when faced with challenging port environments.” But there’s a potential downside to seeking alternative ports, including longer transit times or additional administrative requirements, Peh added. “Congestion can also influence the way breakbulk/project cargoes are transported, leading shippers to explore alternative transportation methods such as multimodal solutions to avoid port congestion,” he said. Some carriers have also developed strategic partnerships with shore-side assets such as local port agents and port operators to coordinate arrivals, thereby reducing waiting times and ensuring improved access to berths, executives said. Contact Keith Wallis at keithwallis@hotmail.com .

MPV operators adapt to congestion by shifting to alternative ports, digital tools

<div class="phx-topic abstract-wrapper">The early estimates coincide with prior forecasts of how much of the new port fees would fall on the two carriers, with their combined fee burden potentially reaching $2 billion in a year’s time should no changes be made to the fee structure.</div>

The early estimates coincide with prior forecasts of how much of the new port fees would fall on the two carriers, with their combined fee burden potentially reaching $2 billion in a year’s time should no changes be made to the fee structure.

<div class="phx-topic">New US port fees targeting China’s maritime industry cost Cosco Shipping and its OOCL subsidiary just over $42 million in the first week the fees were in place, according to vessel-tracking data detailing their US calls. Outside of those two carriers, the fees have largely fallen on one small China-based carrier and three small Chinese-built container ships, with those costs likely totaling a few million dollars. The early estimates coincide with prior forecasts of how much of the new port fees would fall on Cosco and OOCL, with their combined fee burden potentially reaching $2 billion in a year’s time should no changes be made to the US fee structure. Vessel tracking data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that eight Cosco-operated container ships and seven operated by OOCL made a US port call in Oct. 14–20. Oct. 14 was the first day that ocean carriers would be subject to <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">the US Trade Representative’s (USTR) penalties targeting China’s maritime industry</a>. The fees, which were the result of a USTR investigation started in 2024 and concluded earlier this year, are $50 per net ton for the first US port call of a Chinese-operated ship in the first year of implementation, with the levy escalating annually through 2028. Chinese-built ships operated by other carriers face the higher of either $18 per ton or $120 per container discharged. The 15 ships operated by Cosco and OOCL during the first week of the fees, most of which are post-Panamax size, had net tonnage of 855,718, Sea-web data shows. Based on the USTR fee schedule, that would equate to $42.8 million in fees for the ships on their initial port call. The size of each fee paid varied widely. The 13,800-TEU Cosco Shipping Jasmine, which called Savannah on Oct. 14, would have incurred a $4.2 million fee based on its net tonnage. The 4,253-TEU Felixstowe, also operated by Cosco, faced a $1.2 million fee due to its smaller size. Nine of the Cosco and OOCL ships were built in South Korea, while four were built in China and one in Japan. At the first week’s run rate, Cosco and OOCL could incur $2.2 billion in US port fees during the first year. That aligns with a <a href="https://www.joc.com/article/us-port-fees-could-exceed-2b-for-cosco-oocl-hsbc-6077305">September estimate from investment bank HSBC</a>, which said the fees represent between 5% to 7% of the two carriers’ annual combined revenue. Cosco and the USTR did not respond to requests for comment. Cosco, which is the majority owner of OOCL, decried the USTR fees as a <a href="https://www.joc.com/article/cosco-slams-us-port-fees-as-other-carriers-reckon-with-potential-costs-5989606">“discriminatory decision”</a> when they were first unveiled in April. However, one month ahead of the Oct. 14 start date, Cosco said it remained committed to the US market, with <a href="https://www.joc.com/article/cosco-says-no-changes-to-us-services-as-new-port-fees-approach-6082151">no plans to charge shippers for the fee</a>. HSBC estimated the US port fee would translate to a cost for Chinese carriers of about $600 per container, while an April report from consultancy BluSpark said the fee could be $550 per container. Assuming the 15 ships that called in Oct. 14–20 were at fully loaded capacity, the fee translates to about $657 per container. The only other China-based carrier to have faced the fee in the first week was China United Lines, whose 4,395-TEU SM Tianjin called Seattle on Oct. 16. Based on its net tonnage, it would have incurred a $1.3 million fee for that call. <h3>Zim also faces fees </h3>Out of 160 container ships over 4,000-TEU that called the US between Oct. 14 and Oct. 20, only three not operated by Cosco or OOCL were built in China and likely subject to the fees, according to Sea-web, showing the extent to which <a href="https://www.joc.com/article/chinese-tonnage-moving-out-of-us-container-trade-ahead-of-new-fees-xeneta-6081320">other ocean carriers redeployed Chinese tonnage to avoid the fees</a>. The figure does not include two Chinese-built ships operated by CMA CGM’s US-flag subsidiary APL because <a href="https://www.joc.com/article/chinas-port-fees-forcing-gemini-to-shift-out-us-flag-ships-6097952">the USTR has exempted those ships</a>. It also does not include container/roll-on/roll-off vessels such as those operated by Atlantic Container Line, <a href="https://www.joc.com/article/acl-weighs-options-after-facing-annual-35-million-ustr-port-bill-6102368">itself facing $1.4 million in costs for each port call due to the USTR’s designation of the carrier’s vessels</a>. Zim operated all three of the Chinese-built ships calling the US, all between 5,315 and 7,000 TEU in nominal capacity. Based on the net tonnage of the three ships, Zim likely incurred fees between $450,000 and $700,000 for the first US call. While it’s unclear how many containers the ships discharged, the cost would translate to approximately $270 per loaded container. A week prior to the fees going into effect, Zim said in a customer advisory that it would not charge shippers for the fees, but it “reserves the right to reassess this position should additional cost implications or regulation evolve.” Zim did not return a request for comment. Zim operated a fourth Chinese-built ship, the 4,249-TEU Spyros V, but it’s below the 55,000 deadweight tons threshold for the USTR fees. Similarly, the China-built, 4,250-TEU Vancouver Star, operated by Hapag-Lloyd, is also below the size threshold. This article has been updated to reflect that the Spyros V and Vancouver Star are not subject to the USTR’s port fees due to their size. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com ">michael.angell@spglobal.com</a></div>

New US port fees targeting China’s maritime industry cost Cosco Shipping and its OOCL subsidiary just over $42 million in the first week the fees were in place, according to vessel-tracking data detailing their US calls. Outside of those two carriers, the fees have largely fallen on one small China-based carrier and three small Chinese-built container ships, with those costs likely totaling a few million dollars. The early estimates coincide with prior forecasts of how much of the new port fees would fall on Cosco and OOCL, with their combined fee burden potentially reaching $2 billion in a year’s time should no changes be made to the US fee structure. Vessel tracking data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that eight Cosco-operated container ships and seven operated by OOCL made a US port call in Oct. 14–20. Oct. 14 was the first day that ocean carriers would be subject to the US Trade Representative’s (USTR) penalties targeting China’s maritime industry . The fees, which were the result of a USTR investigation started in 2024 and concluded earlier this year, are $50 per net ton for the first US port call of a Chinese-operated ship in the first year of implementation, with the levy escalating annually through 2028. Chinese-built ships operated by other carriers face the higher of either $18 per ton or $120 per container discharged. The 15 ships operated by Cosco and OOCL during the first week of the fees, most of which are post-Panamax size, had net tonnage of 855,718, Sea-web data shows. Based on the USTR fee schedule, that would equate to $42.8 million in fees for the ships on their initial port call. The size of each fee paid varied widely. The 13,800-TEU Cosco Shipping Jasmine, which called Savannah on Oct. 14, would have incurred a $4.2 million fee based on its net tonnage. The 4,253-TEU Felixstowe, also operated by Cosco, faced a $1.2 million fee due to its smaller size. Nine of the Cosco and OOCL ships were built in South Korea, while four were built in China and one in Japan. At the first week’s run rate, Cosco and OOCL could incur $2.2 billion in US port fees during the first year. That aligns with a September estimate from investment bank HSBC , which said the fees represent between 5% to 7% of the two carriers’ annual combined revenue. Cosco and the USTR did not respond to requests for comment. Cosco, which is the majority owner of OOCL, decried the USTR fees as a “discriminatory decision” when they were first unveiled in April. However, one month ahead of the Oct. 14 start date, Cosco said it remained committed to the US market, with no plans to charge shippers for the fee . HSBC estimated the US port fee would translate to a cost for Chinese carriers of about $600 per container, while an April report from consultancy BluSpark said the fee could be $550 per container. Assuming the 15 ships that called in Oct. 14–20 were at fully loaded capacity, the fee translates to about $657 per container. The only other China-based carrier to have faced the fee in the first week was China United Lines, whose 4,395-TEU SM Tianjin called Seattle on Oct. 16. Based on its net tonnage, it would have incurred a $1.3 million fee for that call. Zim also faces fees Out of 160 container ships over 4,000-TEU that called the US between Oct. 14 and Oct. 20, only three not operated by Cosco or OOCL were built in China and likely subject to the fees, according to Sea-web, showing the extent to which other ocean carriers redeployed Chinese tonnage to avoid the fees . The figure does not include two Chinese-built ships operated by CMA CGM’s US-flag subsidiary APL because the USTR has exempted those ships . It also does not include container/roll-on/roll-off vessels such as those operated by Atlantic Container Line, itself facing $1.4 million in costs for each port call due to the USTR’s designation of the carrier’s vessels . Zim operated all three of the Chinese-built ships calling the US, all between 5,315 and 7,000 TEU in nominal capacity. Based on the net tonnage of the three ships, Zim likely incurred fees between $450,000 and $700,000 for the first US call. While it’s unclear how many containers the ships discharged, the cost would translate to approximately $270 per loaded container. A week prior to the fees going into effect, Zim said in a customer advisory that it would not charge shippers for the fees, but it “reserves the right to reassess this position should additional cost implications or regulation evolve.” Zim did not return a request for comment. Zim operated a fourth Chinese-built ship, the 4,249-TEU Spyros V, but it’s below the 55,000 deadweight tons threshold for the USTR fees. Similarly, the China-built, 4,250-TEU Vancouver Star, operated by Hapag-Lloyd, is also below the size threshold. This article has been updated to reflect that the Spyros V and Vancouver Star are not subject to the USTR’s port fees due to their size. Contact Michael Angell at michael.angell@spglobal.com

Cosco, OOCL incurred over $40 million in initial US port fees

<div class="phx-topic abstract-wrapper">It would be foolish to extrapolate the road ahead based on one new service, but the fact that MSC brings so many things to bear and can move so quickly implies that others will have to be at the top of their game to compete, writes Jeremy Masters. </div>

It would be foolish to extrapolate the road ahead based on one new service, but the fact that MSC brings so many things to bear and can move so quickly implies that others will have to be at the top of their game to compete, writes Jeremy Masters.

<div class="phx-topic">The playing field is not even when pursuing new route opportunities in north-south trades. The ever-increasing scale of the biggest players simply means that they have more assets to deploy. Raids on the NOO (non-operating owner) second-hand fleet by Mediterranean Shipping Co. (MSC) and CMA CGM in the 2000- to 8000-TEU ship size category and the consequent squeeze on ships available in the charter market (causing high rates on what is available) mean that attractive propositions in developing trades end up on the back burner for carriers requiring charter tonnage. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6102919_0.1.jpg"></img></div>This, of course, could change quite rapidly if big ship oversupply results in cascading and the return of smaller tonnage to NOOs. Right now, however, the only option for many carriers is to move ships off a weak trade and redeploy them to a promising one. This is not an easy decision, but waiting for the charter market to change is not a solution as it will change for everybody at the same time. Meantime, opportunities come and go. Developing trades is a particular challenge as volume growth is volatile, imbalances can be big, and these trades are easier to tip into oversupply if a sizeable capacity injection is made. <h3>US to West and South Africa </h3>An interesting case study of punching power and nimbleness is the recent move by MSC to introduce a new stand-alone service connecting the US with West and South Africa. With Maersk’s withdrawal from the joint service with MSC connecting the US East Coast and Freeport (and thus the US Gulf) with South Africa, it’s not a surprise that MSC would step up to be the only direct operator in the trade. There may be hiccups at the political level, but trade patterns tend to be more robust than the short-term programs of any government. MSC — never slow to identify an opportunity — has grabbed Maersk’s withdrawal as a gift, not only to dominate one trade but also take pole position in another by adding West Africa in the rotation in both directions. Thus, MSC ties in critical mass and alleviates any concern about short-term trade flows between the US and South Africa. Looking at Container Trade Statistics (CTS) volumes by trade sector, it’s actually quite surprising that Maersk and MSC did not prioritize a USEC and US Gulf link with West Africa over the link with South Africa or look earlier at doing both. MSC has recognized that without direct competition, the diversion to serve West Africa in both directions is achievable while still being dominant in both trades. The CTS stats show that neither trade has experienced gangbuster growth in the last five years, but if you are the only operator with a direct service, you can be reasonably assured of grabbing a high market share and setting the tone for highly contributive rates. What is clear is that a USEC to South Africa service was on fragile ground even before trade tensions threatened erosion. The addition of West Africa, however, gives the service a hyper boost. If getting a dominant position in two direct trades on one service was not enough, there is another new layer of opportunity for MSC by adding and connecting regions. <h3>Owned hubs and double-dipping delight </h3>By putting West Africa in the rotation, MSC has added intra-Africa capability. As the ships will be light coming out of South Africa, the strong trade to West Africa is an excellent chance to use dead space and provide another stream of revenue to the service. The fact that MSC can use hubs in this process that it partially or completely owns — Freeport, San Pedro and Lome — and use accompanying feeder systems to tap multiple local markets means that its widened products and costs are under its control. Meanwhile, spot rates being offered suggest that MSC is going to have a substantive premium — particularly in the US to South Africa lane in both directions and with West Africa providing so much extra critical mass. This deployment is not just a case of MSC having more ship muscle to flex than others. It’s also about network planning dexterity and having a portfolio of well-positioned hubs that enable local and connecting cargoes to be maximized without congestion. It would be foolish to extrapolate the road ahead from one new service, but the fact that MSC brings so many things to bear and can move so quickly implies that others will have to be at the top of their game to compete. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

The playing field is not even when pursuing new route opportunities in north-south trades. The ever-increasing scale of the biggest players simply means that they have more assets to deploy. Raids on the NOO (non-operating owner) second-hand fleet by Mediterranean Shipping Co. (MSC) and CMA CGM in the 2000- to 8000-TEU ship size category and the consequent squeeze on ships available in the charter market (causing high rates on what is available) mean that attractive propositions in developing trades end up on the back burner for carriers requiring charter tonnage. This, of course, could change quite rapidly if big ship oversupply results in cascading and the return of smaller tonnage to NOOs. Right now, however, the only option for many carriers is to move ships off a weak trade and redeploy them to a promising one. This is not an easy decision, but waiting for the charter market to change is not a solution as it will change for everybody at the same time. Meantime, opportunities come and go. Developing trades is a particular challenge as volume growth is volatile, imbalances can be big, and these trades are easier to tip into oversupply if a sizeable capacity injection is made. US to West and South Africa An interesting case study of punching power and nimbleness is the recent move by MSC to introduce a new stand-alone service connecting the US with West and South Africa. With Maersk’s withdrawal from the joint service with MSC connecting the US East Coast and Freeport (and thus the US Gulf) with South Africa, it’s not a surprise that MSC would step up to be the only direct operator in the trade. There may be hiccups at the political level, but trade patterns tend to be more robust than the short-term programs of any government. MSC — never slow to identify an opportunity — has grabbed Maersk’s withdrawal as a gift, not only to dominate one trade but also take pole position in another by adding West Africa in the rotation in both directions. Thus, MSC ties in critical mass and alleviates any concern about short-term trade flows between the US and South Africa. Looking at Container Trade Statistics (CTS) volumes by trade sector, it’s actually quite surprising that Maersk and MSC did not prioritize a USEC and US Gulf link with West Africa over the link with South Africa or look earlier at doing both. MSC has recognized that without direct competition, the diversion to serve West Africa in both directions is achievable while still being dominant in both trades. The CTS stats show that neither trade has experienced gangbuster growth in the last five years, but if you are the only operator with a direct service, you can be reasonably assured of grabbing a high market share and setting the tone for highly contributive rates. What is clear is that a USEC to South Africa service was on fragile ground even before trade tensions threatened erosion. The addition of West Africa, however, gives the service a hyper boost. If getting a dominant position in two direct trades on one service was not enough, there is another new layer of opportunity for MSC by adding and connecting regions. Owned hubs and double-dipping delight By putting West Africa in the rotation, MSC has added intra-Africa capability. As the ships will be light coming out of South Africa, the strong trade to West Africa is an excellent chance to use dead space and provide another stream of revenue to the service. The fact that MSC can use hubs in this process that it partially or completely owns — Freeport, San Pedro and Lome — and use accompanying feeder systems to tap multiple local markets means that its widened products and costs are under its control. Meanwhile, spot rates being offered suggest that MSC is going to have a substantive premium — particularly in the US to South Africa lane in both directions and with West Africa providing so much extra critical mass. This deployment is not just a case of MSC having more ship muscle to flex than others. It’s also about network planning dexterity and having a portfolio of well-positioned hubs that enable local and connecting cargoes to be maximized without congestion. It would be foolish to extrapolate the road ahead from one new service, but the fact that MSC brings so many things to bear and can move so quickly implies that others will have to be at the top of their game to compete. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

MSC flexing its north-south muscle, particularly on US-Africa trade

<div class="phx-topic abstract-wrapper">The Coastal Virginia Offshore Wind project has been a test case of sorts for the Port of Virginia’s heavy-lift capabilities for future cargo opportunities. </div>

The Coastal Virginia Offshore Wind project has been a test case of sorts for the Port of Virginia’s heavy-lift capabilities for future cargo opportunities.

<div class="phx-topic">As offshore wind development slows in the United States, the Port of Virginia is experiencing a continued surge of breakbulk cargo tonnage, largely driven by the ongoing build-out of the largest offshore wind farm in the US mid-Atlantic. Virginia Port Authority (VPA) spokesperson Joe Harris told the Journal of Commerce that because of the project, the port is now positioned to take on heavy-lift cargo well into the future — with or without offshore wind. “We expect that positive tonnage trend to continue for the foreseeable future,” Harris said. Breakbulk cargo volumes at the Port of Virginia jumped 157% year over year, to 57,909 tons in September, according to VPA figures. Breakbulk activity also trended upward during the first nine months of the year, rising 16% year over year, to 417,878 tons. “That’s primarily attributable to offshore wind,” Harris said, referring to the 2.6-GW Coastal Virginia Offshore Wind (CVOW) project that Virginia utility Dominion Energy is developing about 27 miles off the coast of Virginia Beach. Construction of the CVOW project is about 60% finished and remains on schedule for full completion in late 2026, with the wind farm on track to start delivering to the grid in the first quarter of 2026, Dominion spokesperson Jeremy Slayton told the Journal of Commerce. All 176 monopile foundations have been installed for the project to date, along with 59 of 176 transition pieces — the “yellow pieces” that connect the foundations to the turbine towers, Slayton said. <h3>Sizing up bigger cargo </h3>The CVOW project has been a test case of sorts for the Port of Virginia’s heavy-lift capabilities for future cargo opportunities. “The experience we’re gaining in moving these components helps us market ourselves as a true heavy-lift port,” Harris said. Harris cited a 4,000-ton offshore wind component that moved through the port in September as one of the larger pieces the facility has been able to accommodate. “We moved it very safely and efficiently,” he said. “And it helps to be able to say that we can handle things up to this size and bigger, and here’s our point of proof.” In March, the Port of Virginia completed over $220 million in upgrades at the 287-acre Portsmouth Marine Terminal, the staging site for the CVOW project’s components and one of VPA’s two multipurpose terminals in Norfolk Harbor. Part of the port’s $1.4 billion strategic infrastructure plan is focused in part on supporting larger cargo volumes; the improvements included reconstructing the berth, reinforcing the cargo yard’s pavement and reworking the vessel mooring configuration. Looking to future heavy-lift opportunities, Harris said the Port of Virginia has been in discussions with domestic shipbuilding companies about using the Newport News Marine Terminal — the port’s main breakbulk and roll-on/roll-off (ro/ro) facility — as a laydown area for ship components. “Given the experience that we’ve gotten over the last two years with the offshore wind project, it helps us greatly handle and attract new business,” Harris said. <h3>‘New class’ of heavy-lift vessels </h3>Along with enhancing its ability to move heavy project cargo like offshore wind components from ship to shore, the Port of Virginia is executing a $450 million dredging project that will deepen Norfolk Harbor to 55 feet and help the port accommodate the kinds of larger vessels needed to transport cargoes of that size. Once that work is complete, the port will have one of the deepest, widest channels on the US East Coast. “As we deepen our channel, we’re talking about a new class of heavy-lift vessels that could possibly use Virginia,” Harris said, adding that the dredging project is on track for completion by early 2026. One high-profile heavy-lift vessel that recently arrived in Virginia for the offshore wind project is the Charybdis, the first US-flag-compliant wind turbine installation vessel. Capable of lifting up to 2,200 tons, the 472-foot heavy-lift vessel has been under construction at Brownsville, Texas, since 2020 and arrived at the Portsmouth Marine Terminal Sept. 17. Dominion Energy commissioned the Charybdis to ferry wind components from the port to the CVOW installation site in compliance with the Jones Act, the federal law requiring that goods shipped between US ports are transported on ships that are US-built, owned and operated. “We’re working through final punch list items in accordance with our installation vessel’s certificate of inspection,” Slayton said. Once the CVOW project is complete, the Charybdis will be available to support other types of heavy-lift projects. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

As offshore wind development slows in the United States, the Port of Virginia is experiencing a continued surge of breakbulk cargo tonnage, largely driven by the ongoing build-out of the largest offshore wind farm in the US mid-Atlantic. Virginia Port Authority (VPA) spokesperson Joe Harris told the Journal of Commerce that because of the project, the port is now positioned to take on heavy-lift cargo well into the future — with or without offshore wind. “We expect that positive tonnage trend to continue for the foreseeable future,” Harris said. Breakbulk cargo volumes at the Port of Virginia jumped 157% year over year, to 57,909 tons in September, according to VPA figures. Breakbulk activity also trended upward during the first nine months of the year, rising 16% year over year, to 417,878 tons. “That’s primarily attributable to offshore wind,” Harris said, referring to the 2.6-GW Coastal Virginia Offshore Wind (CVOW) project that Virginia utility Dominion Energy is developing about 27 miles off the coast of Virginia Beach. Construction of the CVOW project is about 60% finished and remains on schedule for full completion in late 2026, with the wind farm on track to start delivering to the grid in the first quarter of 2026, Dominion spokesperson Jeremy Slayton told the Journal of Commerce. All 176 monopile foundations have been installed for the project to date, along with 59 of 176 transition pieces — the “yellow pieces” that connect the foundations to the turbine towers, Slayton said. Sizing up bigger cargo The CVOW project has been a test case of sorts for the Port of Virginia’s heavy-lift capabilities for future cargo opportunities. “The experience we’re gaining in moving these components helps us market ourselves as a true heavy-lift port,” Harris said. Harris cited a 4,000-ton offshore wind component that moved through the port in September as one of the larger pieces the facility has been able to accommodate. “We moved it very safely and efficiently,” he said. “And it helps to be able to say that we can handle things up to this size and bigger, and here’s our point of proof.” In March, the Port of Virginia completed over $220 million in upgrades at the 287-acre Portsmouth Marine Terminal, the staging site for the CVOW project’s components and one of VPA’s two multipurpose terminals in Norfolk Harbor. Part of the port’s $1.4 billion strategic infrastructure plan is focused in part on supporting larger cargo volumes; the improvements included reconstructing the berth, reinforcing the cargo yard’s pavement and reworking the vessel mooring configuration. Looking to future heavy-lift opportunities, Harris said the Port of Virginia has been in discussions with domestic shipbuilding companies about using the Newport News Marine Terminal — the port’s main breakbulk and roll-on/roll-off (ro/ro) facility — as a laydown area for ship components. “Given the experience that we’ve gotten over the last two years with the offshore wind project, it helps us greatly handle and attract new business,” Harris said. ‘New class’ of heavy-lift vessels Along with enhancing its ability to move heavy project cargo like offshore wind components from ship to shore, the Port of Virginia is executing a $450 million dredging project that will deepen Norfolk Harbor to 55 feet and help the port accommodate the kinds of larger vessels needed to transport cargoes of that size. Once that work is complete, the port will have one of the deepest, widest channels on the US East Coast. “As we deepen our channel, we’re talking about a new class of heavy-lift vessels that could possibly use Virginia,” Harris said, adding that the dredging project is on track for completion by early 2026. One high-profile heavy-lift vessel that recently arrived in Virginia for the offshore wind project is the Charybdis, the first US-flag-compliant wind turbine installation vessel. Capable of lifting up to 2,200 tons, the 472-foot heavy-lift vessel has been under construction at Brownsville, Texas, since 2020 and arrived at the Portsmouth Marine Terminal Sept. 17. Dominion Energy commissioned the Charybdis to ferry wind components from the port to the CVOW installation site in compliance with the Jones Act, the federal law requiring that goods shipped between US ports are transported on ships that are US-built, owned and operated. “We’re working through final punch list items in accordance with our installation vessel’s certificate of inspection,” Slayton said. Once the CVOW project is complete, the Charybdis will be available to support other types of heavy-lift projects. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Wind cargo helps Virginia port lay groundwork for more heavy-lift business

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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

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