<div class="phx-topic abstract-wrapper">Currency traders and analysts said the U.S. dollar will decline this week as the deutsche mark rises</div>

Currency traders and analysts said the U.S. dollar will decline this week as the deutsche mark rises

<div>Currency traders and analysts said the U.S. dollar will decline this week as the deutsche mark rises on post-election relief buying and the yen remains in demand.The dollar failed to respond to favorable U.S. economic news last week and fell to within a whisker of its low for the year of DM1.5160 set on July 12."Inflation problems will re-emerge despite the benign data released last week," said Bob Lynch, currency analyst at MMS International.Falling energy prices held the rise in the consumer price index to 0.2 percent in September, following 0.3 percent rises in each of the previous three months....

Currency traders and analysts said the U.S. dollar will decline this week as the deutsche mark rises on post-election relief buying and the yen remains in demand. The dollar failed to respond to favorable U.S. economic news last week and fell to within a whisker of its low for the year of DM1.5160 set on July 12."Inflation problems will re-emerge despite the benign data released last week," said Bob Lynch, currency analyst at MMS International. Falling energy prices held the rise in the consumer price index to 0.2 percent in September, following 0.3 percent rises in each of the previous three months. Core CPI, which excludes energy and food prices, rose 0.2 percent in September following a 0.3 percent gain in August. Analysts said it is a near certainty that the Federal Reserve will raise short-term interest rates again in mid-November, but that such a move already has been priced into the market. Some are even talking of another tightening in December. "The September inflation data were encouraging, so why doesn't the dollar care?" asked Mr. Lynch. "Probably because the dollar's value is not just the result of U.S. factors." By definition, if the deutsche mark goes up, the dollar goes down. A rise in the mark is likely now that the German elections are out of the way and the German economy seems to be improving, Mr. Lynch said. Domestic factors are not entirely friendly either, he said. Nervousness surrounding the upcoming U.S. elections, a lack of confidence in President Clinton, and rising capital outflows as U.S. investors move to further diversify their portfolios on a global basis all are working against the dollar, he said. As the dollar decoupled from the stock and bond markets last week, it began living "a life of its own," said Francoise Soares-Kemp, member of senior management in the private banking group at Credit Suisse in New York. "You would have thought that all of the bad news is out," she said. ''Even if the Republicans pick up the Senate and there is gridlock in Congress, that should be good for the markets because there will be no big new Democratic spending programs." What's more, the situation in Russia threatens to destabilize the deutsche mark, with the threat of refugees coming across the borders into Germany, Ms. Soares-Kemp said. "Russia is such a wild card again," she said. "It's a shambles, a horror story that should put pressure on European currencies. That whole thing could fall apart in no time at all." Earl Johnson, vice president and senior currency analyst at Harris Trust & Savings Bank, Chicago, said the market's inflation fears are exaggerated and that "somewhere down the road" the dollar will appear attractive to investors on an interest-rate basis. "But we are not there yet," he said. "We need a much stronger rally in stocks and bonds." Market participants already are looking ahead to the third-quarter gross domestic product (GDP) report to be released on Oct. 28. No one expects third- quarter growth to match the 4.1 percent rise in the second quarter, but GDP will show an annual rate of increase of 2.5 percent to 3 percent, economists forecast. The economy might even accelerate at year end with a booming Christmas buying season, they said. There were rumors in the market Friday that the Fed was intervening in London to support the dollar. Nobody said they believed the talk, but it showed the shakiness of the dollar's footing. The U.S. trade numbers on Wednesday will remind everyone that the yen will have to be purchased to pay for the continued high level of Japanese imports, traders said. A rumor of a Japanese Cabinet reshuffling spurred the yen higher last week on the theory that political upheaval in Tokyo would make it that much more difficult for the United States to resolve the auto import problem and remaining trade issues. A major problem with the dollar is that "people are looking to invest everywhere else," said Ms. Soares-Kemp. "After all, our recovery is four years old and the recoveries in Europe and Japan are just beginning."

DOLLAR WILL DROP AS MARK RISES AND YEN STAYS STRONG, ANALYSTS SAY

<div class="phx-topic abstract-wrapper">Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. </div>

Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia.

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<div class="phx-topic">Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at <a href="keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at keithwallis@hotmail.com .

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Wan Hai expands Asia terminal network with $89 million Osaka port lease

<div class="phx-topic abstract-wrapper">Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.</div>

Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.

<div class="phx-topic">Echo Global Logistics’ <a href="https://www.joc.com/article/broker-echo-buys-its-logistics-to-build-drayage-intermodal-presence-6155888">acquisition of ITS Logistics</a> cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. <h3>ITS ‘fills a gap’ </h3>The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Echo Global Logistics’ acquisition of ITS Logistics cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. ITS ‘fills a gap’ The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

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Truckload

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ITS acquisition a ‘big bite’ for Echo in market diversification drive: CEO

<div class="phx-topic abstract-wrapper">After announcing a pause on ship attacks in November, the Iran-backed militants posted a pair of threatening videos over the weekend that are sure to cause fresh concerns for ocean carriers planning a return to the Red Sea.</div>

After announcing a pause on ship attacks in November, the Iran-backed militants posted a pair of threatening videos over the weekend that are sure to cause fresh concerns for ocean carriers planning a return to the Red Sea.

<div class="phx-topic">Yemen’s Houthi militants have warned of new attacks on shipping in the Red Sea as tensions escalate between the US and Iran, raising questions over whether moves by some carriers to return services to the shorter Suez Canal route will actually happen. A Houthi video posted on YouTube over the weekend showed a ship on fire accompanied by the headline: “Soon.” It was followed by another video, this one from Houthi spokesman Brigadier Yahya Saree, pointing to “the escalation of possibilities” of the US launching a military strike against Iran, which he said would be met by retaliation against the US and Israel. The Iran-backed Houthi announced a pause on ship attacks in November following the Israel-Hamas ceasefire in Gaza that was agreed the previous month and have so far honored that pledge. But Iran’s clampdown on anti-government protests in late December sparked a threat earlier this month by US President Donald Trump to respond militarily, with a carrier strike group led by the USS Abraham Lincoln now heading for the region. Even before the new Houthi threat, CMA CGM, one of the main Red Sea users over the past two years, said it would <a href="https://www.joc.com/article/cma-cgm-backs-off-plans-to-resume-suez-transits-for-asia-europe-services-6155264">scale back plans to send three Asia-Europe westbound services</a> through the Suez, citing the “complex and uncertain international context.” <h3>Maersk India-US service due to begin shorter route </h3>Maersk’s <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">MECL service from India to the US East Coast</a> is due to be rerouted through the Suez and Red Sea beginning Monday. While no change of plan has been announced, the volatility in the region prompted the carrier to include a caveat in its Jan. 15 advisory announcing a return to the shorter route. “Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route,” the carrier said. While Maersk tests the waters and CMA CGM continues to send regional and back-haul services through the Red Sea, most of the other major carriers are content to maintain longer transits around southern Africa until the fluid geopolitical environment stabilizes. Carriers have used the longer route since the Houthis began attacks against commercial shipping in late 2023 in response to the Israel-Hamas war. Resuming services through the Suez represents more than just a routing change. Oversupplied carriers have benefited from the longer route absorbing about 8% of global capacity, preventing rates from falling. “A full-scale return of liner services to the Red Sea would initially be disruptive, with increased risks of port congestion, landside capacity constraints and short-term cost implications,” Bjoern Schoon, senior vice president of ocean freight at DHL Global Forwarding/Asia-Pacific, said in a market update last week. “However, once networks stabilize, it will benefit shippers through faster transit times, and the trade is likely to become more competitive on pricing,” Schoon added. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>.</div>

Yemen’s Houthi militants have warned of new attacks on shipping in the Red Sea as tensions escalate between the US and Iran, raising questions over whether moves by some carriers to return services to the shorter Suez Canal route will actually happen. A Houthi video posted on YouTube over the weekend showed a ship on fire accompanied by the headline: “Soon.” It was followed by another video, this one from Houthi spokesman Brigadier Yahya Saree, pointing to “the escalation of possibilities” of the US launching a military strike against Iran, which he said would be met by retaliation against the US and Israel. The Iran-backed Houthi announced a pause on ship attacks in November following the Israel-Hamas ceasefire in Gaza that was agreed the previous month and have so far honored that pledge. But Iran’s clampdown on anti-government protests in late December sparked a threat earlier this month by US President Donald Trump to respond militarily, with a carrier strike group led by the USS Abraham Lincoln now heading for the region. Even before the new Houthi threat, CMA CGM, one of the main Red Sea users over the past two years, said it would scale back plans to send three Asia-Europe westbound services through the Suez, citing the “complex and uncertain international context.” Maersk India-US service due to begin shorter route Maersk’s MECL service from India to the US East Coast is due to be rerouted through the Suez and Red Sea beginning Monday. While no change of plan has been announced, the volatility in the region prompted the carrier to include a caveat in its Jan. 15 advisory announcing a return to the shorter route. “Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route,” the carrier said. While Maersk tests the waters and CMA CGM continues to send regional and back-haul services through the Red Sea, most of the other major carriers are content to maintain longer transits around southern Africa until the fluid geopolitical environment stabilizes. Carriers have used the longer route since the Houthis began attacks against commercial shipping in late 2023 in response to the Israel-Hamas war. Resuming services through the Suez represents more than just a routing change. Oversupplied carriers have benefited from the longer route absorbing about 8% of global capacity, preventing rates from falling. “A full-scale return of liner services to the Red Sea would initially be disruptive, with increased risks of port congestion, landside capacity constraints and short-term cost implications,” Bjoern Schoon, senior vice president of ocean freight at DHL Global Forwarding/Asia-Pacific, said in a market update last week. “However, once networks stabilize, it will benefit shippers through faster transit times, and the trade is likely to become more competitive on pricing,” Schoon added. Contact Greg Knowler at  greg.knowler@spglobal.com .

Latest Houthi threat renews questions about Suez route as US-Iran tensions rise 

<div class="phx-topic abstract-wrapper">The agency ruled in 2024 that shippers can pick their own chassis when they arrange for truck transportation, but compliance with that ruling remains unclear. </div>

The agency ruled in 2024 that shippers can pick their own chassis when they arrange for truck transportation, but compliance with that ruling remains unclear.

<div class="phx-topic">The Federal Maritime Commission (FMC) is launching its second probe into chassis restrictions ocean carriers put on truckers when hauling a container. The probe comes after the agency ruled in 2024 that shippers can choose their own chassis when they contract with their own trucker. In a federal register notice Friday, the FMC said it plans to open a 60-day window for comments about “service contract terms or other means to mandate that motor carriers [truckers] and shippers use the ocean common carriers’ designated chassis.” The comments are sought in relation to an investigation by the FMC over allegations that “ocean common carriers may be in violation of the Shipping Act by unjustly and unreasonably restricting truckers and shippers from negotiating and dealing with chassis providers.”The investigation stems from <a href="https://www.joc.com/article/fmc-rules-for-truckers-in-chassis-dispute-with-ocean-carriers-5234355">the 2024 agency ruling</a> that ocean carriers have to stop mandating what specific chassis must be used under merchant haulage contracts. The agency upheld an administrative law judge’s earlier decision in a case between the American Trucking Association and the Ocean Carrier Equipment Management Association (OCEMA) that <a href="https://www.joc.com/article/ocema-appeals-chassis-ruling-to-fmc-commissioners-5193253">container lines violate the Shipping Act when they restrict chassis choice</a> among shippers who are arranging their own container trucking. <a href="https://www.joc.com/article/fmc-says-investigating-potential-violations-of-recent-ruling-on-chassis-control-5192272">The FMC was already investigating compliance</a> with a cease-and-desist order in the 2024 ruling, which is still ongoing. The new probe is looking for “any information concerning new or ongoing ocean common carrier practices ... to affect, restrict, or inhibit chassis provider selection,” the notice said. Part of the new probe involves whether ocean carriers designate single chassis providers at Chicago and Memphis rail ramps, if providers have enough chassis on-hand, any reimbursement for truckers on chassis split, and whether truckers are given notice about a container being under merchant or carrier haulage, the latter allowing an ocean carrier to choose a chassis. Along with the inland rail ramps, the FMC said its investigation is looking at chassis choice at the Savannah, Los Angeles, and Long Beach ports. As part of the probe into the Southern California market, the FMC is seeking how the “Pool of Pools” (PoP) operated by the three main chassis providers for the LA-LB ports distinguishes between “carrier haulage and merchant haulage containers and coordinate billing accordingly,” the notice said. OCEMA did not immediately respond to a request for comment into the new investigation.<h3>‘Sweetheart Deals’</h3>Robert Loya, chief executive of the Harbor Trucking Association, which represents drayage providers in Southern California, told the Journal of Commerce that some shippers have merchant haulage contracts that include a chassis at no additional cost, requiring the trucker to use the ocean carrier’s designated chassis. But servicing the LA-LB ports with the trucker’s own chassis and one from the PoP can result in wasted miles and more costs, he added.Returning an empty container on a PoP chassis can require a trip back to the trucker’s own yard for a shipper without an ocean carrier-provisioned chassis. Truckers are also forced to pay gate fees that marine terminals charge for temporarily storing PoP chassis.“The intermodal equipment providers have negotiated sweetheart deals with the shipping lines to use their chassis, then that gets negotiated into the ocean contract with the beneficial cargo owner,” Loya said. “That puts pressure on us, so we’re forced by the lines to use their chassis. That’s the rub for us.”<h3>Chassis mis-mounts</h3>An executive of a Tennessee-based drayage provider told the Journal of Commerce that ocean carrier chassis pools at inland rail terminals are vulnerable to shortages in times of high demand, resulting in potential delays if a trucker cannot use their own chassis.Containers can also come off a train and be mis-mounted onto the wrong chassis, causing a trucker to wait for the correct chassis. The executive said that what appears to be a no-cost chassis can mean added costs and inefficiencies for truckers.“The trucker is squeezed,” she said. “The frustration is that there’s no change after years. The US would have been better served if we had chassis choice during the pandemic. We need a faster and more fluid way to move freight.”Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Federal Maritime Commission (FMC) is launching its second probe into chassis restrictions ocean carriers put on truckers when hauling a container. The probe comes after the agency ruled in 2024 that shippers can choose their own chassis when they contract with their own trucker. In a federal register notice Friday, the FMC said it plans to open a 60-day window for comments about “service contract terms or other means to mandate that motor carriers [truckers] and shippers use the ocean common carriers’ designated chassis.” The comments are sought in relation to an investigation by the FMC over allegations that “ocean common carriers may be in violation of the Shipping Act by unjustly and unreasonably restricting truckers and shippers from negotiating and dealing with chassis providers.” The investigation stems from the 2024 agency ruling that ocean carriers have to stop mandating what specific chassis must be used under merchant haulage contracts. The agency upheld an administrative law judge’s earlier decision in a case between the American Trucking Association and the Ocean Carrier Equipment Management Association (OCEMA) that container lines violate the Shipping Act when they restrict chassis choice among shippers who are arranging their own container trucking. The FMC was already investigating compliance with a cease-and-desist order in the 2024 ruling, which is still ongoing. The new probe is looking for “any information concerning new or ongoing ocean common carrier practices ... to affect, restrict, or inhibit chassis provider selection,” the notice said. Part of the new probe involves whether ocean carriers designate single chassis providers at Chicago and Memphis rail ramps, if providers have enough chassis on-hand, any reimbursement for truckers on chassis split, and whether truckers are given notice about a container being under merchant or carrier haulage, the latter allowing an ocean carrier to choose a chassis. Along with the inland rail ramps, the FMC said its investigation is looking at chassis choice at the Savannah, Los Angeles, and Long Beach ports. As part of the probe into the Southern California market, the FMC is seeking how the “Pool of Pools” (PoP) operated by the three main chassis providers for the LA-LB ports distinguishes between “carrier haulage and merchant haulage containers and coordinate billing accordingly,” the notice said. OCEMA did not immediately respond to a request for comment into the new investigation. ‘Sweetheart Deals’ Robert Loya, chief executive of the Harbor Trucking Association, which represents drayage providers in Southern California, told the Journal of Commerce that some shippers have merchant haulage contracts that include a chassis at no additional cost, requiring the trucker to use the ocean carrier’s designated chassis. But servicing the LA-LB ports with the trucker’s own chassis and one from the PoP can result in wasted miles and more costs, he added. Returning an empty container on a PoP chassis can require a trip back to the trucker’s own yard for a shipper without an ocean carrier-provisioned chassis. Truckers are also forced to pay gate fees that marine terminals charge for temporarily storing PoP chassis. “The intermodal equipment providers have negotiated sweetheart deals with the shipping lines to use their chassis, then that gets negotiated into the ocean contract with the beneficial cargo owner,” Loya said. “That puts pressure on us, so we’re forced by the lines to use their chassis. That’s the rub for us.” Chassis mis-mounts An executive of a Tennessee-based drayage provider told the Journal of Commerce that ocean carrier chassis pools at inland rail terminals are vulnerable to shortages in times of high demand, resulting in potential delays if a trucker cannot use their own chassis. Containers can also come off a train and be mis-mounted onto the wrong chassis, causing a trucker to wait for the correct chassis. The executive said that what appears to be a no-cost chassis can mean added costs and inefficiencies for truckers. “The trucker is squeezed,” she said. “The frustration is that there’s no change after years. The US would have been better served if we had chassis choice during the pandemic. We need a faster and more fluid way to move freight.” Contact Michael Angell at michael.angell@spglobal.com .

FMC takes second look at ocean carrier limits on chassis choice

<div class="phx-topic abstract-wrapper">Transflo, which sells automation software to transportation providers, is using AI agents to identify specific exceptions common to LTL billing errors.</div>

Transflo, which sells automation software to transportation providers, is using AI agents to identify specific exceptions common to LTL billing errors.

<div class="phx-topic">Transflo, a provider of workflow software for freight transportation companies, has launched an invoice audit and resolution product for less-than-truckload (LTL) shipments, targeting error rates that touch nearly a third of shipments in that mode. The product is geared toward solving the interactions between LTL carriers and brokers that result in the manual management of exceptions on inaccurate freight bills by instead using automated invoice matching and validation. “We designed this solution to address the inherent complexity of LTL billing, reducing invoice resolution from days to minutes, accelerating payments, and delivering transparency for all parties,” Transflo CEO Renee Krug said in a statement Thursday. The product, called Workflow AI for LTL, is built around artificial intelligence (AI) agents trained to handle specific invoice exception types, as opposed to general purpose AI agents that are trained over time to automate a range of transportation processes. Ultimately, Transflo said, the goal is to make auditing teams 10 times more productive in handling additional invoices without adding headcount. The company estimates that 30% to 40% of LTL invoices are inaccurate. The new product is an example of so-called agentic AI overlapping with process automation in the freight transportation industry. A range of providers have sprung up in the last two years building AI agents, also called digital workers, to help brokers avoid adding headcount. Most of those companies are taking aim at workflow processes, from responding to shipper quote requests to automating appointment scheduling to invoice auditing, reconciling, and payment, such as Transflo’s product. The focus on LTL is also unique in that the majority of third-party automation software has been trained on the much larger and more fragmented truckload industry, leaving LTL brokers and carriers to largely develop their own internal solutions to automate processes. Because of the differences in pricing, quoting, and network operations between LTL and truckload, the technologies are rarely transferable. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Transflo, a provider of workflow software for freight transportation companies, has launched an invoice audit and resolution product for less-than-truckload (LTL) shipments, targeting error rates that touch nearly a third of shipments in that mode. The product is geared toward solving the interactions between LTL carriers and brokers that result in the manual management of exceptions on inaccurate freight bills by instead using automated invoice matching and validation. “We designed this solution to address the inherent complexity of LTL billing, reducing invoice resolution from days to minutes, accelerating payments, and delivering transparency for all parties,” Transflo CEO Renee Krug said in a statement Thursday. The product, called Workflow AI for LTL, is built around artificial intelligence (AI) agents trained to handle specific invoice exception types, as opposed to general purpose AI agents that are trained over time to automate a range of transportation processes. Ultimately, Transflo said, the goal is to make auditing teams 10 times more productive in handling additional invoices without adding headcount. The company estimates that 30% to 40% of LTL invoices are inaccurate. The new product is an example of so-called agentic AI overlapping with process automation in the freight transportation industry. A range of providers have sprung up in the last two years building AI agents, also called digital workers, to help brokers avoid adding headcount. Most of those companies are taking aim at workflow processes, from responding to shipper quote requests to automating appointment scheduling to invoice auditing, reconciling, and payment, such as Transflo’s product. The focus on LTL is also unique in that the majority of third-party automation software has been trained on the much larger and more fragmented truckload industry, leaving LTL brokers and carriers to largely develop their own internal solutions to automate processes. Because of the differences in pricing, quoting, and network operations between LTL and truckload, the technologies are rarely transferable. Contact Eric Johnson at eric.johnson@spglobal.com .

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Software provider targets LTL invoice inaccuracies with automation solution

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