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<div class="phx-topic abstract-wrapper">Rising labor costs — both behind the wheel and at the warehouse, elevated diesel prices and cross-dock scarcity in major cities are making it more costly to run transportation networks, attendees at the Journal of Commerce’s Inland Distribution Conference were told.</div>

Rising labor costs — both behind the wheel and at the warehouse, elevated diesel prices and cross-dock scarcity in major cities are making it more costly to run transportation networks, attendees at the Journal of Commerce’s Inland Distribution Conference were told.

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<div>CHICAGO — US trucking and parcel executives are warning that although capacity has loosened significantly since the pandemic, higher operating costs will put upward pressure on rates through 2024. Rising labor costs — both behind the wheel and at the warehouse, elevated diesel prices and cross-dock scarcity in major cities are making it more costly to run transportation networks, executives said at the Journal of Commerce’s Inland Distribution Conference Tuesday. With economists <a>not expecting a freight rebound until late next year</a>, the pressure is on transportation providers and their shipper-customers to squeeze out costs together. “Labor, real estate, employment and...

CHICAGO — US trucking and parcel executives are warning that although capacity has loosened significantly since the pandemic, higher operating costs will put upward pressure on rates through 2024. Rising labor costs — both behind the wheel and at the warehouse, elevated diesel prices and cross-dock scarcity in major cities are making it more costly to run transportation networks, executives said at the Journal of Commerce’s Inland Distribution Conference Tuesday. With economists not expecting a freight rebound until late next year , the pressure is on transportation providers and their shipper-customers to squeeze out costs together. “Labor, real estate, employment and insurance are the four highest costs that we have, and all four of those have gone up and continue to go up significantly,” said Heather Dohrn, chief commercial officer at Dohrn Transfer. Pointing to the $1.525 billion sale of collapsed Yellow’s less-than-truckload terminals to Estes Express Lines, Dohrn said there’s a scramble to find cross-dock space, something made even harder by the repurposing of old terminals for other uses. At the same time, industrial construction costs are moving higher, rising between 4.3% and 5% this year , according to project management consultancy Cumming. Higher diesel prices add cost pressures Average US diesel prices in the week ended Sep. 25 fell for the first time in nine weeks, slipping 4.7% to $4.633 per gallon, according to the US Energy Information Administration. Diesel prices had surged more than 87 cents during those nine weeks. To some degree, higher diesel costs can be pushed onto customers. However, the cost pressure, coupled with higher driver pay demands and insurance costs, will push out some smaller trucking operators, many of which jumped into the height of the market in 2020 and 2021, said Tom Nightingale, CEO of AFS Logistics, a parcel logistics provider. In the meantime, AFS has seen parcel demand this peak season fall by roughly half, as consumer spending trends ease after record spending in 2021 and 2022. “We are off the sugar high from COVID and [shippers] are normalizing inventories,” Nightingale said. “I think this consumer demand is going to slow quite a bit because of the fact that discretionary income is not as available as it used to be, and we have higher interest rates.” Higher truck insurance, fraud and labor costs, for both drivers and office workers coordinating loads, are also pushing up operating costs, panelists told conference attendees. Reported truckload thefts rose from 454 in the second quarter of 2022 to 582 in the same period this year , Keith Lewis, vice president of operations at theft prevention and recovery service CargoNet, said at the conference. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Inland23: US trucking costs rising amid weak demand

<div class="phx-topic abstract-wrapper">Agency Chairman Laura DiBella said the “intensified inspections” of the vessels appear to be retaliation for Panama canceling the port concessions held at Balboa and Cristóbal by a subsidiary of Hong Kong-based Hutchison. </div>

Agency Chairman Laura DiBella said the “intensified inspections” of the vessels appear to be retaliation for Panama canceling the port concessions held at Balboa and Cristóbal by a subsidiary of Hong Kong-based Hutchison.

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<div class="phx-topic">The US Federal Maritime Commission is “closely monitoring” an apparent “surge” in detentions of Panama-flagged ships by Chinese port authorities and the effect it could have on US container trade, according to the agency’s chairman. Laura DiBella says the moves appear to be retaliation <a href="https://www.joc.com/article/panama-court-voids-ck-hutchison-canal-terminal-leases-6161145">for the Panamanian Supreme Court recently nullifying</a> the operating concessions at Panama’s Balboa and Cristóbal ports that were held for 28 years by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. DiBella, in a statement Thursday she said represented her views and not the FMC’s, said the detentions of Panama-flagged ships in Chinese ports far exceed “historical norms.” “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” she said. “Given that Panama‑flagged ships carry a meaningful share of US containerized trade, these actions could result in significant commercial and strategic consequences to US shipping.” DiBella did not say the FMC was doing anything other than monitoring the situation, but noted the agency’s laws give it authority to investigate “whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.” With PPC removed from its operatorship, Maersk’s APM Terminals (APMT) <a href="https://www.joc.com/article/maersk-msc-units-begin-interim-management-of-panama-canal-terminals-6175167">was given a transitory concession contract</a> for the Balboa terminal on the Pacific side of the Panama Canal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited (TiL) was given the same for Cristóbal on the Atlantic coast. Both contracts are for 18 months. Hutchison has responded by <a href="https://www.joc.com/article/hutchison-seeks-2-billion-in-damages-from-panama-after-terminal-deal-canceled-6183273">filing an international arbitration claim</a> against the Panamanian government and PMA in which it seeks more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month <a href="https://www.joc.com/article/cosco-halts-balboa-calls-in-latest-twist-over-panama-port-row-6185309">halted calls at Balboa</a> and instead is redirecting its services to Manzanillo on the Atlantic side of the canal. Contact Kevin Saville at <a href="mailto:kevin.saville2@spglobal.com">kevin.saville2@spglobal.com</a>. </div>

The US Federal Maritime Commission is “closely monitoring” an apparent “surge” in detentions of Panama-flagged ships by Chinese port authorities and the effect it could have on US container trade, according to the agency’s chairman. Laura DiBella says the moves appear to be retaliation for the Panamanian Supreme Court recently nullifying the operating concessions at Panama’s Balboa and Cristóbal ports that were held for 28 years by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. DiBella, in a statement Thursday she said represented her views and not the FMC’s, said the detentions of Panama-flagged ships in Chinese ports far exceed “historical norms.” “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” she said. “Given that Panama‑flagged ships carry a meaningful share of US containerized trade, these actions could result in significant commercial and strategic consequences to US shipping.” DiBella did not say the FMC was doing anything other than monitoring the situation, but noted the agency’s laws give it authority to investigate “whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.” With PPC removed from its operatorship, Maersk’s APM Terminals (APMT) was given a transitory concession contract for the Balboa terminal on the Pacific side of the Panama Canal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited (TiL) was given the same for Cristóbal on the Atlantic coast. Both contracts are for 18 months. Hutchison has responded by filing an international arbitration claim against the Panamanian government and PMA in which it seeks more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month halted calls at Balboa and instead is redirecting its services to Manzanillo on the Atlantic side of the canal. Contact Kevin Saville at kevin.saville2@spglobal.com .

FMC ‘monitoring’ recent detention of Panama-flag ships at Chinese ports

<div class="phx-topic abstract-wrapper">Wary of potential US actions to undermine the agreement, EU lawmakers inserted three clauses into the deal that provide “strong and clear safeguards.”</div>

Wary of potential US actions to undermine the agreement, EU lawmakers inserted three clauses into the deal that provide “strong and clear safeguards.”

<div class="phx-topic">The European Union has approved a trade deal with the US that was agreed to last year, but set conditions aimed at protecting the European Commission from the frequent and unpredictable adjustments of US President Donald Trump’s tariffs. Members of the European Parliament (MEPs) on Thursday <a href="https://www.europarl.europa.eu/news/en/press-room/20260323IPR38830/eu-us-trade-deal-meps-set-conditions-for-lowering-tariffs-on-us-products">approved the EU-US Turnberry</a> trade deal that was struck in July last year but delayed as tensions between the two parties rose over Trump’s musings about a proposed US takeover of Greenland. Wary of potential US action to undermine the agreement, the EU lawmakers inserted three clauses into the deal — the “suspension clause,” “sunrise clause,” and “sunset clause” — that German MEP Bernd Lange said would be “firmly” defended. “MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal,” Lange said in a statement. “They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining World Trade Organization-compliant,” he added. Lange warned that any further tariff threats from the US, or failure of the deal to deliver for EU producers and consumers, would lead to the expiry of the legislation. “I intend to defend this mandate firmly in the negotiations,” he said. The trade deal now requires agreement from member states, and if passed as is, will set tariffs at 15% for most EU goods, down from the threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods. It will also give preferential European market access for a wide range of US seafood and agricultural goods. In a “safeguard mechanism,” the European Commission will be tasked with monitoring the impact of the new rules and will be able to suspend the new tariffs temporarily “should US imports reach a level that could cause serious harm to EU industry, for instance in the event of a 10% increase in imports of a particular group of products,” the statement said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The European Union has approved a trade deal with the US that was agreed to last year, but set conditions aimed at protecting the European Commission from the frequent and unpredictable adjustments of US President Donald Trump’s tariffs. Members of the European Parliament (MEPs) on Thursday approved the EU-US Turnberry trade deal that was struck in July last year but delayed as tensions between the two parties rose over Trump’s musings about a proposed US takeover of Greenland. Wary of potential US action to undermine the agreement, the EU lawmakers inserted three clauses into the deal — the “suspension clause,” “sunrise clause,” and “sunset clause” — that German MEP Bernd Lange said would be “firmly” defended. “MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal,” Lange said in a statement. “They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining World Trade Organization-compliant,” he added. Lange warned that any further tariff threats from the US, or failure of the deal to deliver for EU producers and consumers, would lead to the expiry of the legislation. “I intend to defend this mandate firmly in the negotiations,” he said. The trade deal now requires agreement from member states, and if passed as is, will set tariffs at 15% for most EU goods, down from the threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods. It will also give preferential European market access for a wide range of US seafood and agricultural goods. In a “safeguard mechanism,” the European Commission will be tasked with monitoring the impact of the new rules and will be able to suspend the new tariffs temporarily “should US imports reach a level that could cause serious harm to EU industry, for instance in the event of a 10% increase in imports of a particular group of products,” the statement said. Contact Greg Knowler at greg.knowler@spglobal.com .

Europe Union approves US trade deal, but sets firm conditions

<div class="phx-topic abstract-wrapper">The deals come as regional rate indexes are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China.</div>

The deals come as regional rate indexes are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China.

<div class="phx-topic">Intra-Asia carriers, buoyed by higher rates and consistent demand, have placed a flurry of new vessel orders over the past month totaling more than $1 billion. The deals come as regional rate indexes produced by the Shanghai Shipping Exchange (SSE) and Korea Ocean Business Corporation (KOBC) are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China. Rates from Shanghai to South Korea of $164 per TEU are the highest since July 2024, according to SSE data carried on the Journal of Commerce’s Gateway platform. SSE data also shows that although Shanghai-Singapore rates have fallen from a pre-Lunar New Year peak in December and January, at $500/TEU they are still higher now than they were between February and October of last year. KOBC’s Korea-China index is at its highest since August 2023, while its Korea-Southeast Asia index is at its highest since last July. That comes as intra-Asia container volumes are expected to grow by about 3% this year following last year’s 5% increase to almost 50 million TEUs, solidifying the region’s position as the world’s biggest container shipping market. China and Vietnam remain the biggest regional trade lane, with volumes growing 16% last year to 2.8 million TEUs, according to maritime consultancy Drewry. <h3>SITC orders six vessels to expand owned fleet </h3>The growth in the intra-Asia trade was highlighted by Hong Kong-listed SITC on Thursday, which said it was ordering six 1,100-TEU vessels to expand its owned fleet of container ships to meet increasing demand. That came after it saw an 8% increase in container volumes last year to almost 3.9 million TEUs, while average freight rates rose 4.5% to $753/TEU. The carrier said the ships, costing $137 million in total, would be built by Jiangsu Yangzi Hongyuan Shipbuilding Co. and Jiangsu New Yangzi Shipbuilding Co., both subsidiaries of China’s largest privately owned shipyard, Yangzijiang Shipbuilding. The ships will be delivered between March and August 2028, SITC said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5439cd86-4e96-4e60-8206-85350f1635ec"></dynamic-object></div>SITC is the biggest intra-Asia container line in terms of capacity, with a fleet of 119 ships totaling 184,961 TEUs that ranks 14th largest globally, according to Alphaliner. Fellow Hong Kong-listed regional carrier TS Lines also highlighted Asia-Pacific growth opportunities for its decision to order six 2,900-TEU ships at a total cost of $253 million from Fujian Mawei Shipbuilding and Xiamen Shipbuilding Industry Co. The ships would also strengthen the carrier’s ability to provide more frequent services and help it achieve long-term cost advantages, the carrier said in an announcement confirming the orders on March 20. The ships are scheduled for delivery in June and August 2028 and May 2029. Two South Korean carriers — Korea Marine Transport Company (KMTC) and HMM — are also expanding their regional fleets. KMTC said it has ordered six 1,800-TEU ships at a cost of $259 million from HD Hyundai (Medium) that are expected to increase its fleet to more than 70 ships with total capacity of over 165,000 TEUs. The new vessels will be delivered between August 2027 and June 2028. HMM, meanwhile, placed a $168 million order this month, also with HD Hyundai (Medium), for three 2,800-TEU ships that will join the carrier’s regional fleet in June, August, and October 2027. China’s Shanghai Jinjiang Shipping (JJ Shipping) confirmed on March 10 it had contracted Jiangsu New Yangzi Shipbuilding to build up to eight 1,900-TEU ships costing a combined $240 million. The ships will be deployed on Southeast Asia services upon delivery between June 2028 and July 2029. Separately, Indonesia-headquartered, Singapore-listed Samudera Shipping said it would launch operations at its regional Blue Ocean Shipping joint venture in Japan with Imoto Lines shortly following the delivery of two container ships on March 17. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Intra-Asia carriers, buoyed by higher rates and consistent demand, have placed a flurry of new vessel orders over the past month totaling more than $1 billion. The deals come as regional rate indexes produced by the Shanghai Shipping Exchange (SSE) and Korea Ocean Business Corporation (KOBC) are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China. Rates from Shanghai to South Korea of $164 per TEU are the highest since July 2024, according to SSE data carried on the Journal of Commerce’s Gateway platform. SSE data also shows that although Shanghai-Singapore rates have fallen from a pre-Lunar New Year peak in December and January, at $500/TEU they are still higher now than they were between February and October of last year. KOBC’s Korea-China index is at its highest since August 2023, while its Korea-Southeast Asia index is at its highest since last July. That comes as intra-Asia container volumes are expected to grow by about 3% this year following last year’s 5% increase to almost 50 million TEUs, solidifying the region’s position as the world’s biggest container shipping market. China and Vietnam remain the biggest regional trade lane, with volumes growing 16% last year to 2.8 million TEUs, according to maritime consultancy Drewry. SITC orders six vessels to expand owned fleet The growth in the intra-Asia trade was highlighted by Hong Kong-listed SITC on Thursday, which said it was ordering six 1,100-TEU vessels to expand its owned fleet of container ships to meet increasing demand. That came after it saw an 8% increase in container volumes last year to almost 3.9 million TEUs, while average freight rates rose 4.5% to $753/TEU. The carrier said the ships, costing $137 million in total, would be built by Jiangsu Yangzi Hongyuan Shipbuilding Co. and Jiangsu New Yangzi Shipbuilding Co., both subsidiaries of China’s largest privately owned shipyard, Yangzijiang Shipbuilding. The ships will be delivered between March and August 2028, SITC said. SITC is the biggest intra-Asia container line in terms of capacity, with a fleet of 119 ships totaling 184,961 TEUs that ranks 14th largest globally, according to Alphaliner. Fellow Hong Kong-listed regional carrier TS Lines also highlighted Asia-Pacific growth opportunities for its decision to order six 2,900-TEU ships at a total cost of $253 million from Fujian Mawei Shipbuilding and Xiamen Shipbuilding Industry Co. The ships would also strengthen the carrier’s ability to provide more frequent services and help it achieve long-term cost advantages, the carrier said in an announcement confirming the orders on March 20. The ships are scheduled for delivery in June and August 2028 and May 2029. Two South Korean carriers — Korea Marine Transport Company (KMTC) and HMM — are also expanding their regional fleets. KMTC said it has ordered six 1,800-TEU ships at a cost of $259 million from HD Hyundai (Medium) that are expected to increase its fleet to more than 70 ships with total capacity of over 165,000 TEUs. The new vessels will be delivered between August 2027 and June 2028. HMM, meanwhile, placed a $168 million order this month, also with HD Hyundai (Medium), for three 2,800-TEU ships that will join the carrier’s regional fleet in June, August, and October 2027. China’s Shanghai Jinjiang Shipping (JJ Shipping) confirmed on March 10 it had contracted Jiangsu New Yangzi Shipbuilding to build up to eight 1,900-TEU ships costing a combined $240 million. The ships will be deployed on Southeast Asia services upon delivery between June 2028 and July 2029. Separately, Indonesia-headquartered, Singapore-listed Samudera Shipping said it would launch operations at its regional Blue Ocean Shipping joint venture in Japan with Imoto Lines shortly following the delivery of two container ships on March 17. Contact Keith Wallis at keithwallis@hotmail.com .

Intra-Asia carriers spend $1 billion on new ships amid buoyant trade, rate growth

<div class="phx-topic abstract-wrapper">Suppliers and manufacturers are unwilling to make long-lead investments in next-gen nuclear projects without credible signals that the demand for them exists, according to a new report. </div>

Suppliers and manufacturers are unwilling to make long-lead investments in next-gen nuclear projects without credible signals that the demand for them exists, according to a new report.

<div class="phx-topic">US nuclear energy development is surging after a series of recent approvals and initiatives to advance domestic projects — including a $40 billion deal the US struck with Japan to build next-gen reactors in southern states and a Bill Gates-backed startup receiving the federal green light to construct a first-of-its-kind reactor in Wyoming. But reactor developers will need to work through supply chain bottlenecks for those projects to materialize, according to a new report by a nuclear advocacy group. Nuclear energy projects are lining up to become a significant source of future breakbulk and project cargo as energy companies push to expand the US reactor fleet and the infrastructure to support domestic uranium production, conversion and enrichment. The Trump administration has set a goal of expanding nuclear energy capacity from 100 gigawatts to 400 GW by 2050, while having 10 large reactors under construction in the US by 2030. But those goals could prove challenging as a “self-reinforcing market paralysis” threatens to upend the supply chain for next-gen nuclear reactors under development, according to a March 20 report from the Nuclear Scaling Initiative. The analysis, prepared by energy consultancy Solestiss and funded by the Bezos Earth Fund, suggests suppliers and manufacturers are unwilling to make long-lead investments in next-gen nuclear projects without credible signals that the demand for them exists. And utilities, it says, are reluctant to commit to these new energy sources because of cost, schedule and supply chain uncertainties. “This dynamic suppresses investment in manufacturing capacity, workforce pipelines, qualification infrastructure, and fuel supply — compounding the very risks that deter demand,” the report stated. With supplier bases limited, a vertical integration trend is emerging, with reactor developers opting to take on the manufacturing themselves domestically instead of importing components from overseas. “Rather than waiting for a fragmented and unreliable external market to mature, several leading companies are choosing to become their own suppliers out of necessity [or, in some cases, as a hallmark of their culture],” the report stated. <h3>Key advances for reactor fleet </h3>Recent weeks have brought major project developments for advanced small modular reactors, or SMRs, the next-gen reactors expected to drive future nuclear energy output. SMRs consist of modular components that can be delivered and assembled onsite and have been touted as a more cost- and time-efficient alternative to large-scale reactors, which can cost billions and take decades to build. SMRs are still under development in the US but growing in numbers, with the first reactors set to come online by the end of the decade. On March 19, the US and Japan announced a $40 billion deal to have GE Vernova and Hitachi build SMRs in Tennessee and Alabama. Along with that project, Japan will invest up to $33 billion in natural gas power plants in Pennsylvania and Texas. The energy deals are part of a five-year, $550 billion trade agreement made last year between the US and Japan to accelerate next-generation nuclear technology. And in a key milestone for next-gen reactors, Bill Gates startup TerraPower on March 4 became the first developer to win federal approval to build a commercial SMR in the US. The Natrium advanced reactor project will be constructed in Kemmerer, Wyoming, and is targeted for completion in 2030. <h3>Policy changes meant to speed development </h3>Policy changes are also taking shape to expand the domestic reactor fleet. On March 12, the US Department of Energy rolled out an initiative to use existing nuclear energy infrastructure to put more power on the grid. Dubbed the Utility Power Reactor Incremental Scaling Effort (UPRISE), the initiative aims to expand US nuclear energy capacity by increasing the power output of existing reactors, bringing dormant facilities back online, completing stalled projects, and advancing new reactor construction. UPRISE has set a goal to achieve 2.5 GW of additional nuclear capacity by 2027 and 5 GW of total additional nuclear capacity by 2029.  In Florida, lawmakers have been taking steps to streamline the approval process for constructing nuclear reactors. On March 5, the Florida House of Representatives unanimously approved legislation authorizing the state to oversee the permitting for advanced nuclear reactor construction, taking oversight from the US Nuclear Regulatory Commission. Kim Casey, investor relations director for US uranium provider Energy Fuels, told the Journal of Commerce that regulatory, permitting and litigation timelines present additional challenges that could prolong the development of nuclear energy projects. “What we know from past experience is that building new reactors doesn’t happen quickly,” she said. Casey said the approval of TerraPower’s advanced SMR represents a “huge step” in the nuclear buildout. “I think that will tell us a lot, if things go smoothly. There’s certainly a bipartisan appetite for nuclear,” she said. The question, Casey said, becomes how nuclear developers will deal with the regulatory approval process, which can involve decades of reviews and permitting. “If they can shorten that up with support of administrations around the world, that will be exceptional not only for the industry, but for electrification across the globe,” she said. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

US nuclear energy development is surging after a series of recent approvals and initiatives to advance domestic projects — including a $40 billion deal the US struck with Japan to build next-gen reactors in southern states and a Bill Gates-backed startup receiving the federal green light to construct a first-of-its-kind reactor in Wyoming. But reactor developers will need to work through supply chain bottlenecks for those projects to materialize, according to a new report by a nuclear advocacy group. Nuclear energy projects are lining up to become a significant source of future breakbulk and project cargo as energy companies push to expand the US reactor fleet and the infrastructure to support domestic uranium production, conversion and enrichment. The Trump administration has set a goal of expanding nuclear energy capacity from 100 gigawatts to 400 GW by 2050, while having 10 large reactors under construction in the US by 2030. But those goals could prove challenging as a “self-reinforcing market paralysis” threatens to upend the supply chain for next-gen nuclear reactors under development, according to a March 20 report from the Nuclear Scaling Initiative. The analysis, prepared by energy consultancy Solestiss and funded by the Bezos Earth Fund, suggests suppliers and manufacturers are unwilling to make long-lead investments in next-gen nuclear projects without credible signals that the demand for them exists. And utilities, it says, are reluctant to commit to these new energy sources because of cost, schedule and supply chain uncertainties. “This dynamic suppresses investment in manufacturing capacity, workforce pipelines, qualification infrastructure, and fuel supply — compounding the very risks that deter demand,” the report stated. With supplier bases limited, a vertical integration trend is emerging, with reactor developers opting to take on the manufacturing themselves domestically instead of importing components from overseas. “Rather than waiting for a fragmented and unreliable external market to mature, several leading companies are choosing to become their own suppliers out of necessity [or, in some cases, as a hallmark of their culture],” the report stated. Key advances for reactor fleet Recent weeks have brought major project developments for advanced small modular reactors, or SMRs, the next-gen reactors expected to drive future nuclear energy output. SMRs consist of modular components that can be delivered and assembled onsite and have been touted as a more cost- and time-efficient alternative to large-scale reactors, which can cost billions and take decades to build. SMRs are still under development in the US but growing in numbers, with the first reactors set to come online by the end of the decade. On March 19, the US and Japan announced a $40 billion deal to have GE Vernova and Hitachi build SMRs in Tennessee and Alabama. Along with that project, Japan will invest up to $33 billion in natural gas power plants in Pennsylvania and Texas. The energy deals are part of a five-year, $550 billion trade agreement made last year between the US and Japan to accelerate next-generation nuclear technology. And in a key milestone for next-gen reactors, Bill Gates startup TerraPower on March 4 became the first developer to win federal approval to build a commercial SMR in the US. The Natrium advanced reactor project will be constructed in Kemmerer, Wyoming, and is targeted for completion in 2030. Policy changes meant to speed development Policy changes are also taking shape to expand the domestic reactor fleet. On March 12, the US Department of Energy rolled out an initiative to use existing nuclear energy infrastructure to put more power on the grid. Dubbed the Utility Power Reactor Incremental Scaling Effort (UPRISE), the initiative aims to expand US nuclear energy capacity by increasing the power output of existing reactors, bringing dormant facilities back online, completing stalled projects, and advancing new reactor construction. UPRISE has set a goal to achieve 2.5 GW of additional nuclear capacity by 2027 and 5 GW of total additional nuclear capacity by 2029.  In Florida, lawmakers have been taking steps to streamline the approval process for constructing nuclear reactors. On March 5, the Florida House of Representatives unanimously approved legislation authorizing the state to oversee the permitting for advanced nuclear reactor construction, taking oversight from the US Nuclear Regulatory Commission. Kim Casey, investor relations director for US uranium provider Energy Fuels, told the Journal of Commerce that regulatory, permitting and litigation timelines present additional challenges that could prolong the development of nuclear energy projects. “What we know from past experience is that building new reactors doesn’t happen quickly,” she said. Casey said the approval of TerraPower’s advanced SMR represents a “huge step” in the nuclear buildout. “I think that will tell us a lot, if things go smoothly. There’s certainly a bipartisan appetite for nuclear,” she said. The question, Casey said, becomes how nuclear developers will deal with the regulatory approval process, which can involve decades of reviews and permitting. “If they can shorten that up with support of administrations around the world, that will be exceptional not only for the industry, but for electrification across the globe,” she said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Nuclear projects advance in US, but need to overcome ‘market paralysis’

<div class="phx-topic abstract-wrapper">Several regional carriers, typically second- and third-rung players in the industry, have opened new dedicated shuttle services connecting Nhava Sheva and Mundra in India to the Middle East/Persian Gulf corridor. </div>

Several regional carriers, typically second- and third-rung players in the industry, have opened new dedicated shuttle services connecting Nhava Sheva and Mundra in India to the Middle East/Persian Gulf corridor.

<div class="phx-topic">The Middle East crisis is driving a fresh influx of capacity into major Indian ports from smaller, nimble liner operators willing to offer wider Persian Gulf port reach despite the war. That comes as long-haul carriers keep operations in the conflict region either suspended or limited to certain ports deemed safe. Several opportunistic regional carriers, typically second- and third-rung players in the industry, have opened new dedicated shuttle services connecting Nhava Sheva and Mundra in India to the Middle East/Persian Gulf corridor, according to market sources. Gulf Feeder Shipping is one notable name among those rushing into the market. The UAE-based feeder line this week kicked off a new loop with direct calls to Jeddah and King Abdullah in Saudi Arabia, Sokhna in Egypt and Aqaba in Jordan. Gulftainer’s short-haul arm GT Lines is also primed to operate two separate shuttle loops from India’s Nhava Sheva and Mundra to the UAE’s Khor Fakkan in a pendulum fashion, using a fleet of three ships. Emboldened regional carriers see the Middle East crisis as yet another opportunity to reap strong freight earnings, reminiscent of the Red Sea diversions when mainline carriers were entirely avoiding the Suez Canal route due to attacks from Houthi militants while smaller liners nonetheless maintained services in the hostile region. <h3>Capacity demand to move rerouted containers </h3>Capacity demand on the disrupted Middle East trade lane has been massive in recent weeks as cargo owners look to evacuate Asian containers rerouted to Indian ports. That comes on top of the typical fiscal year-end export rush seen during March in India. Both factors are beginning to choke storage yards, according to market sources. Meanwhile, some mainliners are deploying ad-hoc vessels to clear up stranded boxes and pick up some high-yield export bookings. Cosco Shipping has positioned a vessel for an early-April sailing from three ports of loading in West India for Fujairah (UAE) and Sohar (Oman) connections, joining CMA CGM in that alternative supply chain push. Ocean rates from India to the Middle East have surged since the war, with average Nhava Sheva-Khor Fakkan/Fujairah booking rates now at about $3,500 per FEU. Space for loads to Sohar is even hotter, with carrier pricing hovering at about $4,500 per FEU. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

The Middle East crisis is driving a fresh influx of capacity into major Indian ports from smaller, nimble liner operators willing to offer wider Persian Gulf port reach despite the war. That comes as long-haul carriers keep operations in the conflict region either suspended or limited to certain ports deemed safe. Several opportunistic regional carriers, typically second- and third-rung players in the industry, have opened new dedicated shuttle services connecting Nhava Sheva and Mundra in India to the Middle East/Persian Gulf corridor, according to market sources. Gulf Feeder Shipping is one notable name among those rushing into the market. The UAE-based feeder line this week kicked off a new loop with direct calls to Jeddah and King Abdullah in Saudi Arabia, Sokhna in Egypt and Aqaba in Jordan. Gulftainer’s short-haul arm GT Lines is also primed to operate two separate shuttle loops from India’s Nhava Sheva and Mundra to the UAE’s Khor Fakkan in a pendulum fashion, using a fleet of three ships. Emboldened regional carriers see the Middle East crisis as yet another opportunity to reap strong freight earnings, reminiscent of the Red Sea diversions when mainline carriers were entirely avoiding the Suez Canal route due to attacks from Houthi militants while smaller liners nonetheless maintained services in the hostile region. Capacity demand to move rerouted containers Capacity demand on the disrupted Middle East trade lane has been massive in recent weeks as cargo owners look to evacuate Asian containers rerouted to Indian ports. That comes on top of the typical fiscal year-end export rush seen during March in India. Both factors are beginning to choke storage yards, according to market sources. Meanwhile, some mainliners are deploying ad-hoc vessels to clear up stranded boxes and pick up some high-yield export bookings. Cosco Shipping has positioned a vessel for an early-April sailing from three ports of loading in West India for Fujairah (UAE) and Sohar (Oman) connections, joining CMA CGM in that alternative supply chain push. Ocean rates from India to the Middle East have surged since the war, with average Nhava Sheva-Khor Fakkan/Fujairah booking rates now at about $3,500 per FEU. Space for loads to Sohar is even hotter, with carrier pricing hovering at about $4,500 per FEU. Contact Bency Mathew at bencyvmathew@gmail.com .

Opportunistic regional lines rush to Middle East corridor amid mainliner pause

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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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