<div class="phx-topic abstract-wrapper">Hapag-Lloyd said its 2021 operating profit will be as much as $4 billion higher than previously forecast due to the large gains in freight rates. </div>

Hapag-Lloyd said its 2021 operating profit will be as much as $4 billion higher than previously forecast due to the large gains in freight rates.

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<div>Hapag-Lloyd has tacked on another $1 billion to $4 billion to its forecasts for 2021 operating profits, its second upward revision for the year, as shippers continue to bid up slot capacity and freight rates remain strong. The Hamburg-based ocean carrier said its 2021 operating profit should be in the range of 10.1 billion to 10.9 billion euros (US$12 billion to $13 billion), up from a <a>previous projection of 7.6 billion to 9.3 billion euros in March</a>. The latest forecast would represent a four-fold increase in operating profit from 2020. According to the carrier’s preliminary nine-month results, released Friday, operating...

Hapag-Lloyd has tacked on another $1 billion to $4 billion to its forecasts for 2021 operating profits, its second upward revision for the year, as shippers continue to bid up slot capacity and freight rates remain strong. The Hamburg-based ocean carrier said its 2021 operating profit should be in the range of 10.1 billion to 10.9 billion euros (US$12 billion to $13 billion), up from a previous projection of 7.6 billion to 9.3 billion euros in March . The latest forecast would represent a four-fold increase in operating profit from 2020. According to the carrier’s preliminary nine-month results, released Friday, operating profit for the period reached 6.8 billion euros, up from 1.8 billion euros in the first three quarters of 2020. Hapag-Lloyd said in a statement its strong results were driven by “unabated global demand for container transports and the continuing disruptions in global supply chains causing a shortage of available transport capacity.” The results come as nominal freight rates on the trans-Pacific trade lane remain double what they were last year. According to data from freight rate benchmarking service Xeneta, spot rates from Asia to the US West Coast on contracts of 32 days or less averaged $7,894 per FEU as of Monday. The nominal rate doesn’t include surcharges of up to $10,500 that carriers are also levying on customers, Xeneta said. Container carriers have been enjoying surging profits this year due to the large gains in ocean freight rates that began in the second half of 2020. Cosco Shipping Holdings said that its container shipping division had a nine-month 2021 profit of $12.5 billion, a 17-fold increase in net profit from the year-earlier period . Ocean Network Express (ONE) similarly expects that its 2021 net profit will be $11.7 billion, up from $3.4 billion in the year earlier period. According to maritime analyst Drewry, the container shipping industry is now on course for a combined pre-tax profit of as much as $300 billion in 2021 and 2022 due to ongoing strong demand and supply chain disruptions that continue to soak up effective vessel capacity. Contact Michael Angell at michael.angell@ihsmarkit.com and follow him on Twitter: @michael_angell .

Container lines

Hapag-Lloyd expects four-fold gain in 2021 profit

<div class="phx-topic abstract-wrapper">A second intermodal option is coming for shippers moving cargo between Mexico and the Southeast US beginning in December.</div>

A second intermodal option is coming for shippers moving cargo between Mexico and the Southeast US beginning in December.

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<div class="phx-topic">Canadian Pacific Kansas City (CPKC) and CSX Transportation will launch a new cross-border rail service on Dec. 1, connecting Mexico to the US Southeast and carrying Schneider National intermodal freight alongside automotive and other mixed cargo, the companies said in a joint statement Friday. The announcement comes three weeks after the US Surface Transportation Board approved a <a href="https://www.joc.com/article/stb-approves-cpkc-csx-acquisitions-of-regional-rail-line-in-southern-us-5751176">series of transactions</a> necessary for the service to commence. The daily train will originate in San Luis Potosí, stop in Monterrey, Laredo and Jackson, Mississippi, before interchanging with CSX in Myrtlewood, Alabama, before heading to Atlanta. Shippers in Florida and Georgia will be able to receive direct service through CSX. The route is expected to take seven days, compared with three to four days by truck. “It will be especially useful for shippers looking to diversify their transportation solutions and support and fortify nearshoring strategies,” Jim Filter, executive vice president of Schneider National, said a statement. The CPKC-CSX service will compete with a <a href="https://www.joc.com/article/union-pacific-launches-mexico-southeast-service-to-meet-growing-demand-5234451">similar Mexico-Southeast intermodal option</a> launched in October 2023 by Ferromex and Union Pacific. That service moves freight from Mexico to Memphis, where it is transferred by truck to CSX or Norfolk Southern Railway for delivery to Atlanta; Charlotte, North Carolina; and Jacksonville, Florida. The Ferromex-UP option takes about 10 days. According to the Journal of Commerce Intermodal Savings Index, truckload rates between Atlanta, Jacksonville and Texas are often equal to or lower than intermodal rail prices, while providing faster and more consistent service. Convincing shippers to opt for slower rail service without cost savings has historically been difficult. CPKC and CSX expect that infrastructure improvements in Mississippi and Alabama scheduled for completion in early 2025 will reduce transit times.Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Canadian Pacific Kansas City (CPKC) and CSX Transportation will launch a new cross-border rail service on Dec. 1, connecting Mexico to the US Southeast and carrying Schneider National intermodal freight alongside automotive and other mixed cargo, the companies said in a joint statement Friday. The announcement comes three weeks after the US Surface Transportation Board approved a series of transactions necessary for the service to commence. The daily train will originate in San Luis Potosí, stop in Monterrey, Laredo and Jackson, Mississippi, before interchanging with CSX in Myrtlewood, Alabama, before heading to Atlanta. Shippers in Florida and Georgia will be able to receive direct service through CSX. The route is expected to take seven days, compared with three to four days by truck. “It will be especially useful for shippers looking to diversify their transportation solutions and support and fortify nearshoring strategies,” Jim Filter, executive vice president of Schneider National, said a statement. The CPKC-CSX service will compete with a similar Mexico-Southeast intermodal option launched in October 2023 by Ferromex and Union Pacific. That service moves freight from Mexico to Memphis, where it is transferred by truck to CSX or Norfolk Southern Railway for delivery to Atlanta; Charlotte, North Carolina; and Jacksonville, Florida. The Ferromex-UP option takes about 10 days. According to the Journal of Commerce Intermodal Savings Index, truckload rates between Atlanta, Jacksonville and Texas are often equal to or lower than intermodal rail prices, while providing faster and more consistent service. Convincing shippers to opt for slower rail service without cost savings has historically been difficult. CPKC and CSX expect that infrastructure improvements in Mississippi and Alabama scheduled for completion in early 2025 will reduce transit times. Contact Ari Ashe at ari.ashe@spglobal.com .

Intermodal providers

North-American rail

CPKC, CSX to launch joint Mexico-Southeast US service Dec. 1

<div class="phx-topic abstract-wrapper">Minimal movements in industry indexes underline a constant demand for MPVs with capacity artificially reduced by Red Sea diversions.</div>

Minimal movements in industry indexes underline a constant demand for MPVs with capacity artificially reduced by Red Sea diversions.

<div class="phx-topic">Steady breakbulk and project cargo demand and a lack of specialized multipurpose vessel (MPV) capacity are keeping MPV charter rates steady at levels well above those seen prior to the COVID-19 pandemic market, and vessel operators are optimistic this will continue through the next quarter, according to two closely watched industry indexes.According to the latest Toepfer Multipurpose Index (TMI) forecast, average daily MPV charter rates will remain firm in November, slipping to $13,157 per day from $13,160 per day in October. At the same time, the One World Shipbrokers’ Market Sentiment Index (MSI) rose to a reading of 54.6 in October from 54.3 in August, signaling ongoing — and increasing — optimism from the MPV owners and operators surveyed for the index.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="12458372-727c-44f7-abb6-92d738a305d9"></dynamic-object></div>“There is steady demand from various cargo segments, which is just enough to sustain the current rate levels and as long as there is no significant change in demand in any of these segments, the outlook remains unchanged,” shipbroker Toepfer Transport said in its Nov. 7 TMI report.Toepfer noted, however, that the impact of President-elect Donald Trump’s second term is still unclear. “[W]e are sure that we are in for some exciting weeks,” the report said.But with piecemeal demand coming from multiple cargo segments, rather than a single booming cargo stream, that stability is tenuous, Yorck Niclas Prehm, head of research with Hamburg-based Toepfer Transport, told the Journal of Commerce.“We believe this situation will not change prior to Q2 of 2025, when more demand, especially from the energy sector will come in and decisions which have been postponed due to the US elections will be made.”<h3>An east-west ‘bulkhead’</h3>MPV owners and operators polled for the latest MSI remained sanguine about the medium-term forecast, acknowledging that tight vessel availability is keeping freight rates steady. Justin Archard, a sale and purchase shipbroker at Netherlands-based Friday &amp; Co. and developer of the MSI in his previous position at One World, told the Journal of Commerce that the lack of MPVs transiting through the Suez Canal is a “market shifter.””It seems right now that there is a sort of line straight down the middle from Greenwich, London, all the way down through to Cape Town, South Africa, and that’s forming a kind of bulkhead between East and West,” Archard said.Asia has been connected to Europe by the Suez Canal since 1869, bar two closures for eight years in 1967–75 and for five months in 1956–57. Trade between the two continents was mature, well-defined and taken for granted until the Houthis began attacking ships in the Red Sea in November 2023. Suez Canal vessel transits that began plummeting in December 2023 averaged just 33 per day in mid-October, down 55% from the previous year, according to United Nations Trade and Development (UNCTAD).“And now, we’re starting to see the lagging effects of the Suez Canal problem and that bulkhead [increasing] between East and West,” Archard said.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="996ede0f-a2bb-4947-8fa5-b7e91bd57171"></dynamic-object></div>Underscoring this regional dichotomy, carriers report to the MSI that Asia remains strong with vessels leaving full, while a patchier European market is creating a de facto “captive” fleet west of the Suez Canal because carriers are struggling to find sufficient backhaul cargoes to get them back to Asia. This is leading to capacity imbalances in the MPV market, Archard said.Carriers “leave Asia and they just don’t come back quickly enough,” he said. “Now, add that to all the other issues we’ve been having: delays [to projects] because of inflation, because of interest rates, because of the US election. We are always caught in the crosshairs of extraneous events.” As a result, the MPV market struggles to be “the master of its own destiny,” Archard said, adding that those dynamics make it difficult for MPV operators to plan for the coming months.“There isn’t a clear pathway forward,” he said. “Everybody seems to be being buffeted by the winds of geopolitical events.”Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500 deadweight ton (dwt) “F-Type” vessels with safe working loads of 240-360 metric tons, as reported to Toepfer by owners and operators. Toepfer addresses the short sea market, as well as other markets, in separate reports.The MSI averages the responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism.Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com.</a></div>

Steady breakbulk and project cargo demand and a lack of specialized multipurpose vessel (MPV) capacity are keeping MPV charter rates steady at levels well above those seen prior to the COVID-19 pandemic market, and vessel operators are optimistic this will continue through the next quarter, according to two closely watched industry indexes. According to the latest Toepfer Multipurpose Index (TMI) forecast, average daily MPV charter rates will remain firm in November, slipping to $13,157 per day from $13,160 per day in October. At the same time, the One World Shipbrokers’ Market Sentiment Index (MSI) rose to a reading of 54.6 in October from 54.3 in August, signaling ongoing — and increasing — optimism from the MPV owners and operators surveyed for the index. “There is steady demand from various cargo segments, which is just enough to sustain the current rate levels and as long as there is no significant change in demand in any of these segments, the outlook remains unchanged,” shipbroker Toepfer Transport said in its Nov. 7 TMI report. Toepfer noted, however, that the impact of President-elect Donald Trump’s second term is still unclear. “[W]e are sure that we are in for some exciting weeks,” the report said. But with piecemeal demand coming from multiple cargo segments, rather than a single booming cargo stream, that stability is tenuous, Yorck Niclas Prehm, head of research with Hamburg-based Toepfer Transport, told the Journal of Commerce. “We believe this situation will not change prior to Q2 of 2025, when more demand, especially from the energy sector will come in and decisions which have been postponed due to the US elections will be made.” An east-west ‘bulkhead’ MPV owners and operators polled for the latest MSI remained sanguine about the medium-term forecast, acknowledging that tight vessel availability is keeping freight rates steady. Justin Archard, a sale and purchase shipbroker at Netherlands-based Friday & Co. and developer of the MSI in his previous position at One World, told the Journal of Commerce that the lack of MPVs transiting through the Suez Canal is a “market shifter.” ”It seems right now that there is a sort of line straight down the middle from Greenwich, London, all the way down through to Cape Town, South Africa, and that’s forming a kind of bulkhead between East and West,” Archard said. Asia has been connected to Europe by the Suez Canal since 1869, bar two closures for eight years in 1967–75 and for five months in 1956–57. Trade between the two continents was mature, well-defined and taken for granted until the Houthis began attacking ships in the Red Sea in November 2023. Suez Canal vessel transits that began plummeting in December 2023 averaged just 33 per day in mid-October, down 55% from the previous year, according to United Nations Trade and Development (UNCTAD). “And now, we’re starting to see the lagging effects of the Suez Canal problem and that bulkhead [increasing] between East and West,” Archard said. Underscoring this regional dichotomy, carriers report to the MSI that Asia remains strong with vessels leaving full, while a patchier European market is creating a de facto “captive” fleet west of the Suez Canal because carriers are struggling to find sufficient backhaul cargoes to get them back to Asia. This is leading to capacity imbalances in the MPV market, Archard said. Carriers “leave Asia and they just don’t come back quickly enough,” he said. “Now, add that to all the other issues we’ve been having: delays [to projects] because of inflation, because of interest rates, because of the US election. We are always caught in the crosshairs of extraneous events.” As a result, the MPV market struggles to be “the master of its own destiny,” Archard said, adding that those dynamics make it difficult for MPV operators to plan for the coming months. “There isn’t a clear pathway forward,” he said. “Everybody seems to be being buffeted by the winds of geopolitical events.” Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500 deadweight ton (dwt) “F-Type” vessels with safe working loads of 240-360 metric tons, as reported to Toepfer by owners and operators. Toepfer addresses the short sea market, as well as other markets, in separate reports. The MSI averages the responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism. Contact Carly Fields at carly.fields@spglobal.com.

Breakbulk carriers

Project cargo

Breakbulk News

MPV stability underscored by steady cargo demand

<div class="phx-topic abstract-wrapper">CMA CGM’s group net profit rocketed to $2.7 billion in the third quarter, thanks to stronger pricing power and earlier peak seasons for North American and European importers. </div>

CMA CGM’s group net profit rocketed to $2.7 billion in the third quarter, thanks to stronger pricing power and earlier peak seasons for North American and European importers.

<div class="phx-topic">CMA CGM on Friday reported a six-fold surge in group net profit to $2.7 billion in the third quarter, as revenue increased by more the one-third on stronger container pricing power and the front-loading of US imports. The Marseille-based shipping and logistics group’s total revenue jumped 38.5% year over year to $15.8 billion during the quarter, leading to a blockbuster quarterly profit that dwarfed the $388 million it recorded in the same three-month period last year. The strong performance was propelled by an early peak season for North American and European importers, lower inflation driving retail sales, and inventory rebuilding ahead of possible port strikes on the US East Coast, the company said. CMA CGM’s volumes climbed 5.5% to 6 million TEUs in the third quarter, while average revenue per TEU rose to $1,798 from $1,322 per TEU in the prior-year period, helping to drive a 43% increase in revenue from shipping operations to $10.9 billion. Revenues from CMA CGM’s logistics business jumped 31% to $4.8 billion, thanks in part to the integration of Bolloré Logistics. Revenue from other operations, including CMA CGM Air Cargo and the group’s marine terminals business, increased 35% year over year to $749 million for the quarter. To help tackle a ballooning budget, the French government is seeking to impose a windfall profit tax that would cost CMA CGM an estimated $535 million next year and $320 million the year after. CMA CGM did not address the proposed tax in its Friday statement, but in an interview with French newspaper Le Figaro on Oct. 21, Chairman and CEO Rodolphe Saadé warned of the legislators’ “tax one-upmanship.” Maritime consultancy Drewry estimates container shipping will report a <a href="https://www.joc.com/article/scrapping-slow-steaming-demand-will-limit-capacity-overhang-clerc-5785020">profit of $50 billion this year</a>, up from $28 billion in 2023. And while it is a fraction of the $298 billion recorded in 2022, the carriers will enter an uncertain 2025 in robust financial health. Contact Keith Wallis at <a href="at keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

CMA CGM on Friday reported a six-fold surge in group net profit to $2.7 billion in the third quarter, as revenue increased by more the one-third on stronger container pricing power and the front-loading of US imports. The Marseille-based shipping and logistics group’s total revenue jumped 38.5% year over year to $15.8 billion during the quarter, leading to a blockbuster quarterly profit that dwarfed the $388 million it recorded in the same three-month period last year. The strong performance was propelled by an early peak season for North American and European importers, lower inflation driving retail sales, and inventory rebuilding ahead of possible port strikes on the US East Coast, the company said. CMA CGM’s volumes climbed 5.5% to 6 million TEUs in the third quarter, while average revenue per TEU rose to $1,798 from $1,322 per TEU in the prior-year period, helping to drive a 43% increase in revenue from shipping operations to $10.9 billion. Revenues from CMA CGM’s logistics business jumped 31% to $4.8 billion, thanks in part to the integration of Bolloré Logistics. Revenue from other operations, including CMA CGM Air Cargo and the group’s marine terminals business, increased 35% year over year to $749 million for the quarter. To help tackle a ballooning budget, the French government is seeking to impose a windfall profit tax that would cost CMA CGM an estimated $535 million next year and $320 million the year after. CMA CGM did not address the proposed tax in its Friday statement, but in an interview with French newspaper Le Figaro on Oct. 21, Chairman and CEO Rodolphe Saadé warned of the legislators’ “tax one-upmanship.” Maritime consultancy Drewry estimates container shipping will report a profit of $50 billion this year , up from $28 billion in 2023. And while it is a fraction of the $298 billion recorded in 2022, the carriers will enter an uncertain 2025 in robust financial health. Contact Keith Wallis at keithwallis@hotmail.com .

Container Shipping News

Trans-Pacific

CMA CGM profits soar on higher pricing, early peak seasons

<div class="phx-topic abstract-wrapper">A second Trump term could benefit US oil projects, but offshore wind is under threat as an early casualty of the new administration.</div>

A second Trump term could benefit US oil projects, but offshore wind is under threat as an early casualty of the new administration.

<div class="phx-topic">If President-elect Donald Trump delivers his agenda as promised, the breakbulk and project cargo sector could experience dramatic shifts related to offshore energy — from a push to ramp up oil and gas production to an all-out halt to offshore wind development — along with uncertainties surrounding import tariffs and shipbuilding efforts. But those working within the sector are tempering expectations for what a second Trump term might mean.At the Port of Beaumont in Texas, LNG plant construction on the US Gulf Coast has kept breakbulk and project cargo near capacity, and that’s likely to remain the same under Trump, Ernest Bezdek, senior director of trade development for the Port of Beaumont, told the Journal of Commerce.“We do not believe the change in administration will affect our business, as we have been busy now for several years,” Bezdek said.Bezdek said there could be opportunities for increased volumes of crude oil moving through terminals and refineries in and around Beaumont, along with more construction of new heavy industry in southeast Texas. “If the new administration makes positive changes with regards to the oil industry, then that is always good for Texas ports, and we will benefit,” Bezdek said.Trump’s pledge to tighten rules on goods imported from all countries presents a potential challenge for cargo moving across US docks, Bezdek said. “But those effects may not be felt for years. And we have experienced that when that happens, other opportunities arise,” he said.Bezdek also cited the federal Port Infrastructure Development Program for providing grant money to US ports to fund infrastructure improvement projects. “We are hopeful the new administration will see value in programs such as this,” he said.Charlie Papavizas, head of the maritime practice in the Washington, DC, office of Winston &amp; Strawn, told the Journal of Commerce that a new administration could mean uncertainty for efforts to advance US shipbuilding. He cited the bipartisan “Ships for America Act,” sponsored by Sens. Mark Kelly (D-Ariz.) and Mike Waltz (R-Fla.), that aims to rebuild and expand the US-flag fleet engaged in foreign commerce.“Will the Trump administration look kindly on this effort? That’s a big question, but it’s a question that would have faced anyone who’s the president because our industry, our shipyards, our maritime academies have atrophied to the point that some attention needs to be paid to this as a national security imperative,” Papavizas said.<h3>Offshore wind in crosshairs</h3>One looming question for the sector is the future of the fledgling US offshore wind industry, a key source of breakbulk and project cargo. In May, Trump pledged to write an executive order to end offshore wind projects “on day one” of his return to the White House.“It’s hard to imagine that it’s a positive,” Papavizas said. “And, therefore, we have to wait and see how much of a negative it will be.”Jeremy Slayton, a spokesman for Dominion Energy, noted that the developer’s Coastal Virginia Offshore Wind project has “overwhelmingly” won bipartisan backing under multiple past state and federal administrations. The project, which is nearly halfway complete, is fully permitted at the federal level and is within budget and on schedule for completion in 2026, he said.“President Trump, Gov. Youngkin and leaders from both parties agree on the importance of American energy dominance, maintaining our technological superiority and creating good-paying jobs for Americans,” Slayton told the Journal of Commerce. “We’re confident Virginia’s clean energy transition will continue with bipartisan support for many years to come.”Following his election to a second term, US offshore wind groups pledged to work with Trump while highlighting the industry’s progress and voicing hope for continued development.“With President Trump in office, we have the opportunity to harness even more investment and measurable economic benefits for communities across the country,” Oceantic Network President and CEO Liz Burdock said in a Nov. 6 statement.Jason Grumet, CEO of the American Clean Power Association (ACP), noted that offshore wind installations grew by double-digit percentages in each year of Trump’s first administration.“ACP looks forward to working with the Trump-Vance administration to unleash American-made energy, deliver reliable power to the grid, grow the economy and enhance our national security,” Grumet said in a statement Nov. 6.Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

If President-elect Donald Trump delivers his agenda as promised, the breakbulk and project cargo sector could experience dramatic shifts related to offshore energy — from a push to ramp up oil and gas production to an all-out halt to offshore wind development — along with uncertainties surrounding import tariffs and shipbuilding efforts. But those working within the sector are tempering expectations for what a second Trump term might mean. At the Port of Beaumont in Texas, LNG plant construction on the US Gulf Coast has kept breakbulk and project cargo near capacity, and that’s likely to remain the same under Trump, Ernest Bezdek, senior director of trade development for the Port of Beaumont, told the Journal of Commerce. “We do not believe the change in administration will affect our business, as we have been busy now for several years,” Bezdek said. Bezdek said there could be opportunities for increased volumes of crude oil moving through terminals and refineries in and around Beaumont, along with more construction of new heavy industry in southeast Texas. “If the new administration makes positive changes with regards to the oil industry, then that is always good for Texas ports, and we will benefit,” Bezdek said. Trump’s pledge to tighten rules on goods imported from all countries presents a potential challenge for cargo moving across US docks, Bezdek said. “But those effects may not be felt for years. And we have experienced that when that happens, other opportunities arise,” he said. Bezdek also cited the federal Port Infrastructure Development Program for providing grant money to US ports to fund infrastructure improvement projects. “We are hopeful the new administration will see value in programs such as this,” he said. Charlie Papavizas, head of the maritime practice in the Washington, DC, office of Winston & Strawn, told the Journal of Commerce that a new administration could mean uncertainty for efforts to advance US shipbuilding. He cited the bipartisan “Ships for America Act,” sponsored by Sens. Mark Kelly (D-Ariz.) and Mike Waltz (R-Fla.), that aims to rebuild and expand the US-flag fleet engaged in foreign commerce. “Will the Trump administration look kindly on this effort? That’s a big question, but it’s a question that would have faced anyone who’s the president because our industry, our shipyards, our maritime academies have atrophied to the point that some attention needs to be paid to this as a national security imperative,” Papavizas said. Offshore wind in crosshairs One looming question for the sector is the future of the fledgling US offshore wind industry, a key source of breakbulk and project cargo. In May, Trump pledged to write an executive order to end offshore wind projects “on day one” of his return to the White House. “It’s hard to imagine that it’s a positive,” Papavizas said. “And, therefore, we have to wait and see how much of a negative it will be.” Jeremy Slayton, a spokesman for Dominion Energy, noted that the developer’s Coastal Virginia Offshore Wind project has “overwhelmingly” won bipartisan backing under multiple past state and federal administrations. The project, which is nearly halfway complete, is fully permitted at the federal level and is within budget and on schedule for completion in 2026, he said. “President Trump, Gov. Youngkin and leaders from both parties agree on the importance of American energy dominance, maintaining our technological superiority and creating good-paying jobs for Americans,” Slayton told the Journal of Commerce. “We’re confident Virginia’s clean energy transition will continue with bipartisan support for many years to come.” Following his election to a second term, US offshore wind groups pledged to work with Trump while highlighting the industry’s progress and voicing hope for continued development. “With President Trump in office, we have the opportunity to harness even more investment and measurable economic benefits for communities across the country,” Oceantic Network President and CEO Liz Burdock said in a Nov. 6 statement. Jason Grumet, CEO of the American Clean Power Association (ACP), noted that offshore wind installations grew by double-digit percentages in each year of Trump’s first administration. “ACP looks forward to working with the Trump-Vance administration to unleash American-made energy, deliver reliable power to the grid, grow the economy and enhance our national security,” Grumet said in a statement Nov. 6. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Energy projects

Second Trump term fears blow through breakbulk sector

<div class="phx-topic abstract-wrapper">US retailers plan to significantly increase imports in November and December compared with projections from just one month ago following Donald Trump’s election to a second term. </div>

US retailers plan to significantly increase imports in November and December compared with projections from just one month ago following Donald Trump’s election to a second term.

<div class="phx-topic">US retailers in November and December plan to import 350,000 TEUs more than they had expected a month ago as they rush to bring merchandise into the country ahead of a possible strike in January by East and Gulf coast dockworkers and billions of dollars in new tariffs proposed by President-elect Donald Trump. Retailers revised their import projections for November to an increase of 13.6% year over year from the previous forecast of a 0.9% increase just one month ago, according to the latest Global Port Tracker (GPT) report, published monthly by Hackett Associates and the National Retail Federation (NRF). The November GPT report forecasts a 6.1% increase in US imports in December, up from a projected 0.2% increase in the previous report. The <a href="https://www.joc.com/article/ila-usmx-say-to-resume-talks-on-new-master-contract-in-november-5778794">possibility of a second strike</a> by the International Longshoremen’s Association (ILA) when its tentative contract extension expires on Jan. 15 and huge tariff increases promised by Trump bode ill for the US economy, according to Jonathan Gold, vice president for supply chain and customs policy at the NRF. “Neither of these developments is good for retailers, their customers or the economy,” Gold said in the November GPT report. US imports from China have been strong all year, rising 15.4% in the first nine months of 2024, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. Retailers have frontloaded imports for much of the year in anticipation of a possible strike by the ILA during the union’s contentious contract negotiations with employers at East and Gulf coast ports. The ILA struck for three days in October before reaching a tentative settlement on wages. Both sides agreed to extend the contract until Jan. 15 to address thorny issues such as automation. Trump’s threat of imposing tariffs of as much as 200% on US imports from China turned real with his election to a second term earlier this week. Because it takes several months from the placement of purchase orders with factories in China until the arrival of the cargo at US ports, retailers are expected to fast-forward imports of spring merchandise ahead of the Lunar New Year on Jan. 29, when many factories in China will close for a week or two. GPT upgraded its January forecast for US imports to a 2.5% increase from last month’s forecast of a 0.8% gain and its February projection to a 9.3% year-over-year decline from the previous forecast of an 11.2% drop. Contact Bill Mongelluzzo at <a href="bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

US retailers in November and December plan to import 350,000 TEUs more than they had expected a month ago as they rush to bring merchandise into the country ahead of a possible strike in January by East and Gulf coast dockworkers and billions of dollars in new tariffs proposed by President-elect Donald Trump. Retailers revised their import projections for November to an increase of 13.6% year over year from the previous forecast of a 0.9% increase just one month ago, according to the latest Global Port Tracker (GPT) report, published monthly by Hackett Associates and the National Retail Federation (NRF). The November GPT report forecasts a 6.1% increase in US imports in December, up from a projected 0.2% increase in the previous report. The possibility of a second strike by the International Longshoremen’s Association (ILA) when its tentative contract extension expires on Jan. 15 and huge tariff increases promised by Trump bode ill for the US economy, according to Jonathan Gold, vice president for supply chain and customs policy at the NRF. “Neither of these developments is good for retailers, their customers or the economy,” Gold said in the November GPT report. US imports from China have been strong all year, rising 15.4% in the first nine months of 2024, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Retailers have frontloaded imports for much of the year in anticipation of a possible strike by the ILA during the union’s contentious contract negotiations with employers at East and Gulf coast ports. The ILA struck for three days in October before reaching a tentative settlement on wages. Both sides agreed to extend the contract until Jan. 15 to address thorny issues such as automation. Trump’s threat of imposing tariffs of as much as 200% on US imports from China turned real with his election to a second term earlier this week. Because it takes several months from the placement of purchase orders with factories in China until the arrival of the cargo at US ports, retailers are expected to fast-forward imports of spring merchandise ahead of the Lunar New Year on Jan. 29, when many factories in China will close for a week or two. GPT upgraded its January forecast for US imports to a 2.5% increase from last month’s forecast of a 0.8% gain and its February projection to a 9.3% year-over-year decline from the previous forecast of an 11.2% drop. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

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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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SSA Marine Mexico has made significant strides in modernizing its infrastructure at the Port of Manzanillo, investing $15 million to enhance operational efficiency and sustainability at its facilities. This move is part of the company's broader strategy to remain at the forefront of the shipping and logistics industry. •	Strengthening Sustainability with Advanced Technology <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488295264_Cranes%20arrival%20to%20TEC%20I.png" alt="Cranes arrival to TEC I" class="joc_admin__inline-image-inherit"></figure> In July, SSA Marine Mexico added seven state-of-the-art E-RTG (Electric Rubber-Tired Gantry) cranes to its fleet, valued at $14 million. These advanced cranes were distributed across its two terminals: four cranes were assigned to the Multipurpose Terminal, and three to the Specialized Container Terminal I. What sets these cranes apart is their dual-operation capability, allowing them to function either on electric power or diesel fuel. This innovation plays a critical role in reducing the environmental impact of operations, contributing to a 7% increase in energy efficiency. This efficiency improvement is equivalent to eliminating nearly 4,000 tons of CO2 emissions annually, underscoring SSA Marine Mexico's commitment to sustainability. Through this acquisition, SSA Marine Mexico not only enhances its cargo-handling capabilities but also reinforces its leadership in integrating cutting-edge, eco-friendly technology in the maritime industry. The company continues to push the boundaries of efficiency and sustainability, ensuring long-term value for both its customers and the environment. •	Upgraded Facilities to Meet Growing Demand <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488350634_Multipurpose%20terminal.png" alt="Multipurpose Terminal" class="joc_admin__inline-image-inherit"></figure> In addition to the new cranes, SSA Marine Mexico has completed crucial modernization and repair work across its Multipurpose Terminal and Specialized Facility at the Port of Manzanillo. This $1 million investment targeted critical infrastructure enhancements, focusing on both structural integrity and operational functionality. Key improvements included leveling approximately 12,000 square meters in the dock area, along with the removal of outdated concrete curbs and asphalt layers. The upgraded space now features high-resistance pavers designed to optimize water drainage and prevent pooling, ensuring safer and more efficient operations. Moreover, the Specialized Facility saw significant upgrades, including the leveling of key warehouse areas to facilitate smoother cargo handling processes. These infrastructure improvements directly enhance the handling of TEUS (Twenty-foot Equivalent Unit containers), further demonstrating SSA Marine Mexico's unwavering commitment to continuous modernization, operational safety, and efficiency. With these initiatives, SSA Marine Mexico is well-positioned to meet the growing demands of the global shipping industry while setting new standards in sustainable port operations. LINK:<a href="https://www.ssamarine.mx/ssa-ing/index" rel="noreferrer" class="joc_admin__link"> https://www.ssamarine.mx/ssa-ing/index</a>

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

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