<div class="phx-topic abstract-wrapper">Freight forwarder Erik Doesburg has two drastically different specialized markets - live queen bees </div>

Freight forwarder Erik Doesburg has two drastically different specialized markets - live queen bees

<div>Freight forwarder Erik Doesburg has two drastically different specialized markets - live queen bees from Hawaii's Kona Coast and massive machinery. He arranges the bee shipments himself but subcontracts the outsized freight to Julian Keeling, who runs Los Angeles-based Consolidators International Inc.So far Doesburg has never been stung by either. CII is one of a small breed of freight wholesalers. Some forwarders are loath to use them, fearing they may make an end run direct to the shipper. But Doesburg, president of A.E. Jets in Los Angeles, said, ''I never worry about Julian. I recently sent a 26,000-kilo baggage X-ray...

Freight forwarder Erik Doesburg has two drastically different specialized markets - live queen bees from Hawaii's Kona Coast and massive machinery. He arranges the bee shipments himself but subcontracts the outsized freight to Julian Keeling, who runs Los Angeles-based Consolidators International Inc. So far Doesburg has never been stung by either. CII is one of a small breed of freight wholesalers. Some forwarders are loath to use them, fearing they may make an end run direct to the shipper. But Doesburg, president of A.E. Jets in Los Angeles, said, ''I never worry about Julian. I recently sent a 26,000-kilo baggage X-ray screening machine from San Francisco to the Johannesburg Airport. I even let him handle the pickup from my vendor. It was a whole bunch of crates, but he got them aboard a Polar (Air Cargo) flight and we made the deadline.'' With many forwarders today promoting themselves as door-to-door logisticians, why would they turn over high-value, high-dollar consignments to what is essentially another forwarder? ''I can probably do the same move on my own,'' said Lars Frohm, vice president of export for American Overseas Air Freight, also in Los Angeles. ''But Julian has the clout with the airlines, the resources, knowledge of lane segments and can go right to work on it.'' Adds Frohm: ''It's a convenience to me because I'd probably have to scramble all day to put that same move together.'' Enno Stoltenberg, president of Rendic Corp., a Los Angeles-based freight forwarder, agrees. ''On larger shipments, we could take the time to negotiate directly with the carrier and get a rate that's very similar to Julian's rate. But it would cost me more in time, so why not just give him the shipment and get a decent rate and a decent service. His organization serves a very useful purpose.'' Consolidators International is part of a dwindling breed - a wholesaler that buys cargo space in bulk on certain airlines and resells it at a higher price to other forwarders. Generally, consolidators look for small shipments to max out a container or top off a pallet. The retail freight forwarder makes 10 percent on the spread between the consolidator's wholesale price and what it charges the shipper. A BIG NICHE But Keeling has carved out a niche within a niche. Along with bread and butter shipments of 500 to 1,000 kilos that move on CII's allocated space, he's known here as the man to call to ship a sailboat, a racing car or a hot air balloon halfway around the world. If you have a must-move last-minute shipment of frozen tortilla samples packed in dry ice that can't be allowed to thaw, he's also the man to call. CII also specializes in shipments for Australia, New Zealand or anywhere in the South Pacific. The consolidator has blocked space on Air New Zealand, Air Pacific and Federal Express. (It has credit on all of the world's airlines except Singapore Air, which makes all freight wholesalers pay cash). And on complex moves, New Zealand-born Keeling will personally see shipments off from the States, and brother Rex Keeling, who runs CII's Auckland office, will likely be on the consignee's loading dock when the shipment is delivered. PUTTING CUSTOMER FIRST Keeling does more than just behind-the-scenes expediting for his forwarder clientele. He claims he enjoys haggling ''for the best possible pricing for the customer'' and brainstorming the most logistically efficient move for the airline. He said CII's first shipment, back in 1993, is a good example of what it does. The move involved Coca-Cola bottling machinery going from the manufacturer in Monroe, La., to Melbourne. He said CII designed the strap-down packaging at the factory, choreographed the pickup and trucking to Los Angeles International, the offloading by crane and the loading onto six 20-foot pallets, and helped ''engineer'' the weight distribution. ''The shipment only weighed 6,000 kilos but took up six pallet positions in the freighter that can handle 24 tons,'' Keeling remembers. The carrier, FedEx, wanted to be paid by pallet positions and demanded $69,000. Keeling refused, insisting he would only pay the per-kilo rate, which totaled $43,000. He won. His client - a forwarder he declines to name - saved Coca-Cola $26,000. Said Keeling: ''To this day, we're still loyal to FedEx.'' Keeling, however, wasn't the new kid on the block who got FedEx to cave into his demands. He's been working with Customs brokers since the 1960s, wholesaling to freight forwarders since 1975 and was a co-owner and a partner in two other Los Angeles freight wholesalers - Airfreight Consolidators International and Universal Air Cargo. But Keeling's style and bluntness doesn't always sit well with business partners and others of his rank. Sample: ''Let's stop the bull----. In this day and age, it's all driven by price. Everyone wants Rolls Royce service at a Ford Taurus price.' Indeed, he had an acrimonious split in his partnership at UAC. His former partner at UAC, Peter Whitfield, declined to discuss Keeling, adding it wouldn't be appropriate because they had once been in litigation. Keeling also left ACI, now part of Geologistics, due to a management dispute. ''I don't know if Julian was getting along with management but I think they were getting ready to oust him, but he left before they could do it,'' says one insider. True? His former boss, Patrick Keelaghan, then president of ACI, recently died. However, Kathy Holden, ACI's branch manager in Los Angeles, says ''Julian simply left to form his own company. I don't think there was any brouhaha.'' ACI, UAC and CII are the three main wholesalers in Los Angeles. Keeling is not reluctant to discuss carriers, competitors or customers. ''I try to pass comment on how I see the industry,'' he said in a breakfast interview where he used his knife and fork to illustrate how airlines and forwarders interact. He accused one U.S. airline flying across the Pacific of being ''diabolical, archaic and not customer focused in their attitude toward handling claims. I sent their top cargo executive a letter explaining my displeasure and they never wrote back.'' APPROACH INSPIRES LOYALTY While he is outspoken, Keeling's strategy as a freight wholesaler is to know the top cargo bosses at all airlines and forwarders so he has an entree when he has a problem or an opportunity. ''I try to know the most senior executives so when the middle management shifts, hopefully our position remains unaltered because we have the respect of the principals.'' Despite his occasional prickliness, Keeling is charismatic and deemed hands-on by his customers. All those personal traits have earned him a loyal following among customers and a few critics. ''He has great contacts and a great personality, but when there's a problem, he comes over to your office and says, 'Let's work it out,''' said Doesburg of A.E. Jets. ''He always gets you on-board flight information and if there's a delay, you get a fax.'' Keeling has mastered the phone and fax for keeping in touch and selling his wares. ''About twice a week, I get these faxes on his 'smoking good deals' for the week,'' Doesburg said. Frohm at American Overseas Air Freight said he uses Keeling to ship race cars to Australia and New Zealand. ''I've known him for 10 years. It's the old story. Integrity. Service. Attractive pricing but his reliability is as good as it gets.'' Still, Frohm is not exactly sure how CII wheels and deals on his behalf. ''I don't know the details but I know things are taken care of. Do things go ever go wrong? Of course. First, we yell at each other for a bit, then we roll up our sleeves and get on with it.'' Pilot Air Freight's gateway manager in Los Angeles, Giles Auzanneau, also takes CII's calls and sends outsized cargo its way ''because I can trust them. You have to trust that a wholesaler will not go after your business using the information you give him. With Julian, I never have to worry.'' The Pilot Air Freight manager said that 10 years ago, wholesalers ''were a dirty word. Airlines hated them. Forwarders hated them. But we've all learned the good ones deliver a service and that's more important today than (saving) 10 cents a kilo. This is a people business and the voice mail and e-mail is killing it. But when I need something done, I know I can pick up the phone, call (CII) and know that I'll get a prompt callback.''

Air Cargo

KEELING CARVES OUT NICHE WITHIN A NICHE

<div class="phx-topic abstract-wrapper">With typical seasonal lulls setting in after a slower-than-usual peak season, forwarders generally do not expect India-Europe rates to show any sort of an uptick until January. </div>

With typical seasonal lulls setting in after a slower-than-usual peak season, forwarders generally do not expect India-Europe rates to show any sort of an uptick until January.

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<div class="phx-topic">The steady rate erosion seen on India–Europe trades over the last few months continues to build, sending carrier westbound booking rates to lows last <a href="https://www.joc.com/article/november-rate-plunge-negates-carrier-pricing-activity-on-india-europe-trade-5222709">reported in late 2023</a>, an analysis of new data obtained by the Journal of Commerce from freight forwarders shows. Forwarder sources have now put average freight-all-kinds (FAK) rates from West India to North Europe at $800 to $900 per FEU, with some cargo-hungry Asian carriers even quoting slightly lower. That’s down from $1,000 to $1,100 per FEU about a month ago. “It’s pathetic out there to get the cargo without compromising on prices,” a sales executive at a European liner who didn’t want to be identified told the Journal of Commerce. “But we have still announced a modest rate hike plan for early December.” With typical seasonal lulls setting in after a slower-than-usual peak season, forwarders generally do not expect India­–Europe rates to show any sort of an uptick until January. They also believe overcapacity will remain a drag on the ability of carriers to push through large rate increases in early 2026 unless demand strengthens significantly. Supal Shah, CEO of Mumbai-based Sarjak Container Lines, noted that ocean pricing on the India-Europe trade lane has been through peaks and lows in recent years due to ongoing volatile market conditions. “Rates surged in early 2024 as carriers rerouted vessels around the Cape of Good Hope to avoid attacks in the Red Sea,” said Shah. “By late 2025, demand weakened and capacity improved, leading to yet another correction.” In that vein, Shah believes exporters and freight service providers should combine long-term service contracts with flexible spot strategies to hedge their margin bets. <h3>Data suggest export diversification </h3>Meanwhile, CMA CGM seems set to pull the additional India–Europe capacity it injected last month into the market through a temporary relay stop at Tangier in Morocco on its Indamex (India–US East Coast) loop, the carrier’s November forward vessel schedules indicate. Anecdotal industry data puts India-Europe containerized volumes from January to September at 770,000 TEUs. On a broader note, despite US tariff pressures, India’s merchandise exports by value in September were up nearly 7% year over year, government data shows, likely due to stronger market diversification efforts. “While the US continues to be India’s largest export destination, there is substantial untapped potential in regions such as Latin America, Africa and (Southeast Asia),” the Federation of Indian Export Organizations (FIEO) said in a statement. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

The steady rate erosion seen on India–Europe trades over the last few months continues to build, sending carrier westbound booking rates to lows last reported in late 2023 , an analysis of new data obtained by the Journal of Commerce from freight forwarders shows. Forwarder sources have now put average freight-all-kinds (FAK) rates from West India to North Europe at $800 to $900 per FEU, with some cargo-hungry Asian carriers even quoting slightly lower. That’s down from $1,000 to $1,100 per FEU about a month ago. “It’s pathetic out there to get the cargo without compromising on prices,” a sales executive at a European liner who didn’t want to be identified told the Journal of Commerce. “But we have still announced a modest rate hike plan for early December.” With typical seasonal lulls setting in after a slower-than-usual peak season, forwarders generally do not expect India­–Europe rates to show any sort of an uptick until January. They also believe overcapacity will remain a drag on the ability of carriers to push through large rate increases in early 2026 unless demand strengthens significantly. Supal Shah, CEO of Mumbai-based Sarjak Container Lines, noted that ocean pricing on the India-Europe trade lane has been through peaks and lows in recent years due to ongoing volatile market conditions. “Rates surged in early 2024 as carriers rerouted vessels around the Cape of Good Hope to avoid attacks in the Red Sea,” said Shah. “By late 2025, demand weakened and capacity improved, leading to yet another correction.” In that vein, Shah believes exporters and freight service providers should combine long-term service contracts with flexible spot strategies to hedge their margin bets. Data suggest export diversification Meanwhile, CMA CGM seems set to pull the additional India–Europe capacity it injected last month into the market through a temporary relay stop at Tangier in Morocco on its Indamex (India–US East Coast) loop, the carrier’s November forward vessel schedules indicate. Anecdotal industry data puts India-Europe containerized volumes from January to September at 770,000 TEUs. On a broader note, despite US tariff pressures, India’s merchandise exports by value in September were up nearly 7% year over year, government data shows, likely due to stronger market diversification efforts. “While the US continues to be India’s largest export destination, there is substantial untapped potential in regions such as Latin America, Africa and (Southeast Asia),” the Federation of Indian Export Organizations (FIEO) said in a statement. Contact Bency Mathew at bencyvmathew@gmail.com .

Asia-Europe

Container Shipping News

Maritime

Overcapacity, slack season pressures push India–Europe rates to two-year lows

<div class="phx-topic abstract-wrapper"> A predicted annual growth rate of 9% for the space economy to 2035 will intensify the demands on cargo handlers. </div>

A predicted annual growth rate of 9% for the space economy to 2035 will intensify the demands on cargo handlers.

<div class="phx-topic">Increased frequency of launches, a rise of orbital servicing and the emergence of lunar cargo delivery are driving demand for space-related project cargo logistics models that are agile, compliant and technically robust, according to specialist forwarders. Citing an analysis from McKinsey &amp; Company for the World Economic Forum (2024–2025), Marc Cowie, CEO for North America for specialist forwarder Trans Global Projects, said the space economy is undergoing a significant transformation that “directly impacts the logistics of space components.” The McKinsey report projects the global space economy to reach $1.8 trillion by 2035, up from $630 billion in 2023, with an average annual growth rate of 9% — nearly double the global GDP growth rate. This expansion is driven by several key factors, Cowie told the Journal of Commerce. These include declining launch costs, the proliferation of smaller, cheaper satellites; enhanced Earth observation capabilities, diversified investment with over $70 billion in private capital invested in space ventures during 2021–2022, and sectoral integration. McKinsey emphasized that space is no longer a niche sector — it is becoming a ubiquitous enabler of terrestrial industries, including logistics. “For the logistics of space components, this means increased demand for specialized transport solutions, growth in multimodal and intercontinental operations, higher regulatory and compliance complexity, and opportunities in orbital and lunar logistics,” Peter Fritschi, Group COO at Trans Global Projects, told the Journal of Commerce. As satellite constellations and orbital infrastructure scale, logistics providers must support more frequent, time-sensitive and technically complex shipments today. For tomorrow, emerging services such as in-orbit refueling, debris removal and lunar cargo delivery will require new logistics models and partnerships. “In short, the logistics of space components is entering a phase of accelerated growth and strategic importance,” Fritschi said. <h3>Shift of logistics focus </h3>The logistics of space components has evolved over the past few years, both operationally and commercially. TGP has seen a shift from ad hoc, project-based shipments to a more structured and recurring flow of high-value, technically complex cargo. “Private logistics providers have adapted to this shift by developing multimodal solutions that accommodate oversized, sensitive and often confidential space hardware,” Cowie said. In a recent project, NATCO, part of the TGP group, coordinated the transport of custom-built containers for a next-generation European launch vehicle. These containers each held one-half of the rocket tip and were moved from Switzerland to a South American launch site operated by a European space agency. The shipments were part of a regular supply chain supporting both European and US space programs. TGP USA, meanwhile, has supported a US space company by shipping large counterweights for rocket launchers from China to the US in moves that required coordination across continents, including customs brokerage, biosecurity compliance and specialized handling protocols. “The operational complexity of these shipments reflects the broader evolution of the market,” Fritschi said. “Logistics providers are now expected to manage not only the physical movement of space components but also the regulatory, engineering and risk mitigation aspects of each mission.” This includes navigating export controls, ensuring vibration and temperature stability, and aligning with launch schedules and orbital servicing windows. <h3>Greener handling of space components </h3>Wind power is playing a central role in the logistics for the European Space Agency (ESA) Ariane 6 program, as part of ESA’s environmental commitments. The launcher elements of the heavy-lift rocket Ariane 6, manufactured in Europe, are being transported to ESA’s spaceport in French Guiana on board the 121-meter-long Canopée, a custom-built ro-ro vessel fitted with four 37-meter-tall OceanWings sails. The sails fitted to the Canopée reduce fuel consumption on the rotation by between 25% and 30%, and halve the cost of shipping the parts, said Louis Laurent, head of the Ariane 6 program. “Our environmental commitments were at the center of the decision taken early in the Ariane 6 program to build the most efficient vessel in terms of costs and carbon footprint,” he told the Journal of Commerce. The hybrid propulsion vessel rotates between five ports to load Ariane 6 components and ship them across the Atlantic. The rotation starts in Bremen, Germany, where the upper stage is loaded, then to Rotterdam in The Netherlands to load the rocket’s fairing, Le Havre, France, for the core stage for Ariane 6, and finally Bordeaux, France, for the solid propulsion elements, before a 10-day trans-Atlantic crossing to the port of Pariacabo in Kourou, French Guiana — where all the components are offloaded and transported by road to the Ariane 6 launch vehicles assembly building a few kilometers away. The Canopée is expected to complete the port rotation up to 12 times a year. “Today we are not at the maximum for Ariane 6, but we are ramping up to 10 to 12 launches per year,” said Laurent. “So the vessel is not at maximum use now, but next year will be almost fully occupied on the Ariane 6.” The vessel is chartered and operated by shipping company Alizés, which can use it elsewhere if there is capacity. The Canopée was built by Neptune Marine Projects in the Polish port of Sczezcin. Sea trials beginning in December 2022 included a crossing from Rotterdam to Kourou, and the four sails were installed in 2023. “The sails enable a very significant reduction in fuel. It is not a concept, but has been demonstrated in reality, in more than two years of operations between Europe and South America,” said Laurent. “The vessel is part of our sustainability program, which also includes our commitment to deorbit the upper stage at the end of the mission, rather than leaving it in orbit. Ariane 6 is the first program to have this policy to clean up in space when the mission is done.” Ariane 6 weighs almost 900 metric tons when launched with a full payload. The two versions have the flexibility to launch both heavy and light payloads to a range of orbits, for applications such as Earth observation, telecoms, meteorology, science and navigation. <h3>Plethora of logistics challenges </h3>ESA’s Ariane 6 program demonstrates the physical challenges of handling space cargoes. But logistics complexity lies not only in the physical nature of the cargo, but also in the regulatory, operational and geopolitical landscape surrounding space-related shipments. Another challenge is confidentiality. “Space-related cargo often involves proprietary technology and mission-critical components,” Cowie said. “This limits the ability to share operational details with subcontractors or even internally across teams.” As a result, logistics providers must implement heightened security protocols, discreet handling procedures and close coordination with clients and government agencies. Timing is also critical. “Space components are frequently tied to fixed launch windows, meaning any delay in transport can have cascading effects across mission schedules,” Fritschi said. “This demands contingency planning, priority access to transport modes and constant communication with stakeholders.” But there are opportunities on the horizon. With orbital congestion and space debris becoming critical concerns, Fritschi believes logistics providers will be called upon to support missions focused on debris removal, satellite repositioning and end-of-life asset management. “This opens a niche for companies with engineering capabilities and secure transport solutions for sensitive and hazardous materials,” he said. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com.</a>Contact Felicity Landon at <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com.</a></div>

Increased frequency of launches, a rise of orbital servicing and the emergence of lunar cargo delivery are driving demand for space-related project cargo logistics models that are agile, compliant and technically robust, according to specialist forwarders. Citing an analysis from McKinsey & Company for the World Economic Forum (2024–2025), Marc Cowie, CEO for North America for specialist forwarder Trans Global Projects, said the space economy is undergoing a significant transformation that “directly impacts the logistics of space components.” The McKinsey report projects the global space economy to reach $1.8 trillion by 2035, up from $630 billion in 2023, with an average annual growth rate of 9% — nearly double the global GDP growth rate. This expansion is driven by several key factors, Cowie told the Journal of Commerce. These include declining launch costs, the proliferation of smaller, cheaper satellites; enhanced Earth observation capabilities, diversified investment with over $70 billion in private capital invested in space ventures during 2021–2022, and sectoral integration. McKinsey emphasized that space is no longer a niche sector — it is becoming a ubiquitous enabler of terrestrial industries, including logistics. “For the logistics of space components, this means increased demand for specialized transport solutions, growth in multimodal and intercontinental operations, higher regulatory and compliance complexity, and opportunities in orbital and lunar logistics,” Peter Fritschi, Group COO at Trans Global Projects, told the Journal of Commerce. As satellite constellations and orbital infrastructure scale, logistics providers must support more frequent, time-sensitive and technically complex shipments today. For tomorrow, emerging services such as in-orbit refueling, debris removal and lunar cargo delivery will require new logistics models and partnerships. “In short, the logistics of space components is entering a phase of accelerated growth and strategic importance,” Fritschi said. Shift of logistics focus The logistics of space components has evolved over the past few years, both operationally and commercially. TGP has seen a shift from ad hoc, project-based shipments to a more structured and recurring flow of high-value, technically complex cargo. “Private logistics providers have adapted to this shift by developing multimodal solutions that accommodate oversized, sensitive and often confidential space hardware,” Cowie said. In a recent project, NATCO, part of the TGP group, coordinated the transport of custom-built containers for a next-generation European launch vehicle. These containers each held one-half of the rocket tip and were moved from Switzerland to a South American launch site operated by a European space agency. The shipments were part of a regular supply chain supporting both European and US space programs. TGP USA, meanwhile, has supported a US space company by shipping large counterweights for rocket launchers from China to the US in moves that required coordination across continents, including customs brokerage, biosecurity compliance and specialized handling protocols. “The operational complexity of these shipments reflects the broader evolution of the market,” Fritschi said. “Logistics providers are now expected to manage not only the physical movement of space components but also the regulatory, engineering and risk mitigation aspects of each mission.” This includes navigating export controls, ensuring vibration and temperature stability, and aligning with launch schedules and orbital servicing windows. Greener handling of space components Wind power is playing a central role in the logistics for the European Space Agency (ESA) Ariane 6 program, as part of ESA’s environmental commitments. The launcher elements of the heavy-lift rocket Ariane 6, manufactured in Europe, are being transported to ESA’s spaceport in French Guiana on board the 121-meter-long Canopée, a custom-built ro-ro vessel fitted with four 37-meter-tall OceanWings sails. The sails fitted to the Canopée reduce fuel consumption on the rotation by between 25% and 30%, and halve the cost of shipping the parts, said Louis Laurent, head of the Ariane 6 program. “Our environmental commitments were at the center of the decision taken early in the Ariane 6 program to build the most efficient vessel in terms of costs and carbon footprint,” he told the Journal of Commerce. The hybrid propulsion vessel rotates between five ports to load Ariane 6 components and ship them across the Atlantic. The rotation starts in Bremen, Germany, where the upper stage is loaded, then to Rotterdam in The Netherlands to load the rocket’s fairing, Le Havre, France, for the core stage for Ariane 6, and finally Bordeaux, France, for the solid propulsion elements, before a 10-day trans-Atlantic crossing to the port of Pariacabo in Kourou, French Guiana — where all the components are offloaded and transported by road to the Ariane 6 launch vehicles assembly building a few kilometers away. The Canopée is expected to complete the port rotation up to 12 times a year. “Today we are not at the maximum for Ariane 6, but we are ramping up to 10 to 12 launches per year,” said Laurent. “So the vessel is not at maximum use now, but next year will be almost fully occupied on the Ariane 6.” The vessel is chartered and operated by shipping company Alizés, which can use it elsewhere if there is capacity. The Canopée was built by Neptune Marine Projects in the Polish port of Sczezcin. Sea trials beginning in December 2022 included a crossing from Rotterdam to Kourou, and the four sails were installed in 2023. “The sails enable a very significant reduction in fuel. It is not a concept, but has been demonstrated in reality, in more than two years of operations between Europe and South America,” said Laurent. “The vessel is part of our sustainability program, which also includes our commitment to deorbit the upper stage at the end of the mission, rather than leaving it in orbit. Ariane 6 is the first program to have this policy to clean up in space when the mission is done.” Ariane 6 weighs almost 900 metric tons when launched with a full payload. The two versions have the flexibility to launch both heavy and light payloads to a range of orbits, for applications such as Earth observation, telecoms, meteorology, science and navigation. Plethora of logistics challenges ESA’s Ariane 6 program demonstrates the physical challenges of handling space cargoes. But logistics complexity lies not only in the physical nature of the cargo, but also in the regulatory, operational and geopolitical landscape surrounding space-related shipments. Another challenge is confidentiality. “Space-related cargo often involves proprietary technology and mission-critical components,” Cowie said. “This limits the ability to share operational details with subcontractors or even internally across teams.” As a result, logistics providers must implement heightened security protocols, discreet handling procedures and close coordination with clients and government agencies. Timing is also critical. “Space components are frequently tied to fixed launch windows, meaning any delay in transport can have cascading effects across mission schedules,” Fritschi said. “This demands contingency planning, priority access to transport modes and constant communication with stakeholders.” But there are opportunities on the horizon. With orbital congestion and space debris becoming critical concerns, Fritschi believes logistics providers will be called upon to support missions focused on debris removal, satellite repositioning and end-of-life asset management. “This opens a niche for companies with engineering capabilities and secure transport solutions for sensitive and hazardous materials,” he said. Contact Carly Fields at carly.fields@spglobal.com. Contact Felicity Landon at felicity@felicitylandon.com.

Breakbulk carriers

Heavy-haul transport

Project cargo

Breakbulk News

Project cargo forwarders in the space race prepare for lift-off

<div class="phx-topic abstract-wrapper">While premium pricing has long been elusive for ocean carriers, the cost benefits from the Maersk-Hapag-Lloyd alliance may prove to be enough to justify overhauling the network.</div>

While premium pricing has long been elusive for ocean carriers, the cost benefits from the Maersk-Hapag-Lloyd alliance may prove to be enough to justify overhauling the network.

<div class="phx-topic">More than nine months into the Gemini Cooperation’s journey – possibly the most radical reinvention ever attempted in container shipping – two things are becoming clear: stated schedule reliability that is well above industry averages has largely been achieved and doubts about its sustainability are fading. A hub-and-spoke network able to keep feeder ships filled is lowering costs, mimicking the common-feeder model in place for decades in Asia and other regions. The one big unanswered question that remains is whether, or to what extent, premium revenue can be extracted from shippers by Gemini partners Maersk and Hapag-Lloyd. Maersk, <a href="https://www.joc.com/article/value-unlocked-by-gemini-will-clear-path-for-premium-charge-maersk-ceo-6111339">during its third-quarter earnings release last week</a>, provided the clearest picture to date on that very question. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6113169_0.1.jpg"></img></div>CEO Vincent Clerc said he believed premium pricing is coming, but that trust in Gemini’s reliability needed to be more firmly entrenched beyond the standards established thus far. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” Clerc told analysts. But a tantalizing possibility may be emerging: It might not actually matter. The reason is that while premium pricing has long been elusive for ocean carriers, the cost benefits from Gemini may themselves prove to be enough to justify overhauling the network. Maersk cited annualized cost savings of $720 million to $950 million through the implementation of the Gemini network as a result of lower bunker costs and greater asset utilization. This is coming from higher utilization of ships and shorter sailing distances, which resulted in 6% higher capacity but 3% lower total fuel consumption. Running ships at a higher utilization in the network, Clerc said, allows the carrier to transport more volumes at the same capacity. Carriers like Singapore-based X-Press Feeders and Bengal Tiger Line handle large carriers’ feeder volumes by keeping costs low through higher utilization than the carriers have been able to achieve on their own. On the cost structure, “we are opening up a gap now with Gemini that is going to be…quite handy, especially in the current rate environment,” Clerc said. ”It’s a pretty significant lever that we have unlocked here,” stemming in part from using “fit-for-purpose shuttles rather than underutilized mainliners,” he added. The revenue side is less clear. It is unclear how much of a premium revenue opportunity exists by offering high schedule reliability. In prior eras, carriers invested significant sums in fuel to stay on schedule only for a weak market to undercut their argument for premium rates. Indeed, whether investing more in fuel to keep ships on schedule, deploying 53-foot ocean containers to allow customs to load more cargo or departing every day on time as was envisioned in Daily Maersk, there has been little in terms of premium pricing over a period of decades to show for it. <h3>Premium appetites? </h3>A market exists; the question is how big. The existence of high-reliability, premium-priced services offered by Matson, UWL, Zim Integrated Shipping Services and Tailwind on the Asia-Europe trade point to a segment of the shipper market able to capture supply chain value from reliable schedules. Also, in limited cases, some large shippers have shown themselves willing to pay a premium for preferential stowage, leading to expedited movement of containers off the ship and through the terminal, including for so-called peel-off stacks. The Gemini partners, however, believe a fundamental value proposition continues to exist by enabling customers to slash costs by reducing inventory. “I am optimistic that if someone can remove $10 million a day and can they save two weeks in that, that I can get a premium,” Stuart Sandlin, Hapag-Lloyd's regional president for the Americas, told the South Carolina International Trade Conference on Oct. 29. “I candidly think (Gemini is) a premium product and should command some sort of premium price.” As Clerc put it on the earnings call: “Today, every customer has a buffer stock and that reliability needs to unlock a reduction of that buffer stock. They need to trust that (Gemini) has weathered sufficient ups and downs and is steady (so) that they can take out some of that buffer stock. And if they do, they pocket that savings and then we can capture some of it in form of a premium.” For both Maersk and Hapag-Lloyd, the Gemini network fits respective strategies and approaches to the market. It harks back to hub-and-spoke networks of an earlier day and is true to Maersk’s historic DNA of running on time, a source of tension within the former 2M alliance with Mediterranean Shipping Co. For Hapag-Lloyd, it can't promote itself as the best major carrier in terms of service quality, its stated objective, and not run on time. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com.</a></div>

More than nine months into the Gemini Cooperation’s journey – possibly the most radical reinvention ever attempted in container shipping – two things are becoming clear: stated schedule reliability that is well above industry averages has largely been achieved and doubts about its sustainability are fading. A hub-and-spoke network able to keep feeder ships filled is lowering costs, mimicking the common-feeder model in place for decades in Asia and other regions. The one big unanswered question that remains is whether, or to what extent, premium revenue can be extracted from shippers by Gemini partners Maersk and Hapag-Lloyd. Maersk, during its third-quarter earnings release last week , provided the clearest picture to date on that very question. CEO Vincent Clerc said he believed premium pricing is coming, but that trust in Gemini’s reliability needed to be more firmly entrenched beyond the standards established thus far. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” Clerc told analysts. But a tantalizing possibility may be emerging: It might not actually matter. The reason is that while premium pricing has long been elusive for ocean carriers, the cost benefits from Gemini may themselves prove to be enough to justify overhauling the network. Maersk cited annualized cost savings of $720 million to $950 million through the implementation of the Gemini network as a result of lower bunker costs and greater asset utilization. This is coming from higher utilization of ships and shorter sailing distances, which resulted in 6% higher capacity but 3% lower total fuel consumption. Running ships at a higher utilization in the network, Clerc said, allows the carrier to transport more volumes at the same capacity. Carriers like Singapore-based X-Press Feeders and Bengal Tiger Line handle large carriers’ feeder volumes by keeping costs low through higher utilization than the carriers have been able to achieve on their own. On the cost structure, “we are opening up a gap now with Gemini that is going to be…quite handy, especially in the current rate environment,” Clerc said. ”It’s a pretty significant lever that we have unlocked here,” stemming in part from using “fit-for-purpose shuttles rather than underutilized mainliners,” he added. The revenue side is less clear. It is unclear how much of a premium revenue opportunity exists by offering high schedule reliability. In prior eras, carriers invested significant sums in fuel to stay on schedule only for a weak market to undercut their argument for premium rates. Indeed, whether investing more in fuel to keep ships on schedule, deploying 53-foot ocean containers to allow customs to load more cargo or departing every day on time as was envisioned in Daily Maersk, there has been little in terms of premium pricing over a period of decades to show for it. Premium appetites? A market exists; the question is how big. The existence of high-reliability, premium-priced services offered by Matson, UWL, Zim Integrated Shipping Services and Tailwind on the Asia-Europe trade point to a segment of the shipper market able to capture supply chain value from reliable schedules. Also, in limited cases, some large shippers have shown themselves willing to pay a premium for preferential stowage, leading to expedited movement of containers off the ship and through the terminal, including for so-called peel-off stacks. The Gemini partners, however, believe a fundamental value proposition continues to exist by enabling customers to slash costs by reducing inventory. “I am optimistic that if someone can remove $10 million a day and can they save two weeks in that, that I can get a premium,” Stuart Sandlin, Hapag-Lloyd's regional president for the Americas, told the South Carolina International Trade Conference on Oct. 29. “I candidly think (Gemini is) a premium product and should command some sort of premium price.” As Clerc put it on the earnings call: “Today, every customer has a buffer stock and that reliability needs to unlock a reduction of that buffer stock. They need to trust that (Gemini) has weathered sufficient ups and downs and is steady (so) that they can take out some of that buffer stock. And if they do, they pocket that savings and then we can capture some of it in form of a premium.” For both Maersk and Hapag-Lloyd, the Gemini network fits respective strategies and approaches to the market. It harks back to hub-and-spoke networks of an earlier day and is true to Maersk’s historic DNA of running on time, a source of tension within the former 2M alliance with Mediterranean Shipping Co. For Hapag-Lloyd, it can't promote itself as the best major carrier in terms of service quality, its stated objective, and not run on time. Contact Peter Tirschwell at peter.tirschwell@spglobal.com.

Container lines

Gemini delivers cost savings as it mulls a path to premium pricing

<div class="phx-topic abstract-wrapper">The South Coast Air Quality Management District governing board has approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero or near-zero-emission trucks, locomotives and cargo handling equipment.</div>

The South Coast Air Quality Management District governing board has approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero or near-zero-emission trucks, locomotives and cargo handling equipment.

<div class="phx-topic">The ports of Los Angeles and Long Beach will work closely with the regional emissions regulatory agency to develop and deliver infrastructure to support zero-emission trucks and cargo-handling equipment over the next decade. The South Coast Air Quality Management District (AQMD) governing board on Friday approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero- or near-zero-emission trucks, locomotives and cargo handling equipment, with the AQMD verifying progress through annual reports. The “cooperative agreement” will be implemented in three phases over the coming decade, giving port stakeholders the time they will need to attain the pollution-reduction goals outlined by the regulatory agency, the AQMD said in a statement. “This is a milestone more than a decade in the making and reflects a collective commitment to cleaner air for the South Coast region,” said Venessa Delgado, chair of the AQMD’s governing board. Port stakeholders generally support the cooperative agreement, saying it sets realistic timelines for each industry sector to achieve the overall goal of reducing harmful emissions without artificially “capping” cargo growth at the largest US port complex. “We want it to be as flexible as possible rather than being regulated into this under the ISR [Indirect Source Rule] approach,” Robert Loya, CEO of the Harbor Trucking Association, told the Journal of Commerce Monday. The cooperative <a href="https://www.joc.com/article/la-lb-port-interests-spar-with-agency-over-emissions-rule-under-development-5223229">approach replaces the mandates in the agency’s ISR announced by the AQMD in 2021.</a>“The real-world transition to zero emissions is an ambitious, complicated and expensive proposition,” Mike Jacob, president of the Pacific Merchant Shipping Association, which represents shipping lines and terminal operators on the West Coast, said in a statement. “While the cooperative agreement’s implementation schedules will be aggressive, it allows for new technologies to fail before they succeed.” The ports will develop comprehensive plans that recognize the progress and limitations of various technologies in each transportation sector. AQMD will verify progress through annual reports and regular reporting to its governing board. Penalties for noncompliance range from $50,000 to $200,000 per default and will be used toward projects benefiting communities near the ports, AQMD said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The ports of Los Angeles and Long Beach will work closely with the regional emissions regulatory agency to develop and deliver infrastructure to support zero-emission trucks and cargo-handling equipment over the next decade. The South Coast Air Quality Management District (AQMD) governing board on Friday approved an emissions reduction plan that requires the ports to develop and implement charging and fueling infrastructure and invest in zero- or near-zero-emission trucks, locomotives and cargo handling equipment, with the AQMD verifying progress through annual reports. The “cooperative agreement” will be implemented in three phases over the coming decade, giving port stakeholders the time they will need to attain the pollution-reduction goals outlined by the regulatory agency, the AQMD said in a statement. “This is a milestone more than a decade in the making and reflects a collective commitment to cleaner air for the South Coast region,” said Venessa Delgado, chair of the AQMD’s governing board. Port stakeholders generally support the cooperative agreement, saying it sets realistic timelines for each industry sector to achieve the overall goal of reducing harmful emissions without artificially “capping” cargo growth at the largest US port complex. “We want it to be as flexible as possible rather than being regulated into this under the ISR [Indirect Source Rule] approach,” Robert Loya, CEO of the Harbor Trucking Association, told the Journal of Commerce Monday. The cooperative approach replaces the mandates in the agency’s ISR announced by the AQMD in 2021. “The real-world transition to zero emissions is an ambitious, complicated and expensive proposition,” Mike Jacob, president of the Pacific Merchant Shipping Association, which represents shipping lines and terminal operators on the West Coast, said in a statement. “While the cooperative agreement’s implementation schedules will be aggressive, it allows for new technologies to fail before they succeed.” The ports will develop comprehensive plans that recognize the progress and limitations of various technologies in each transportation sector. AQMD will verify progress through annual reports and regular reporting to its governing board. Penalties for noncompliance range from $50,000 to $200,000 per default and will be used toward projects benefiting communities near the ports, AQMD said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

Transport, Trade and Regulation News

Port infrastructure

North American ports

Marine terminals

LA-LB emissions agreement with AQMD sets realistic timelines: stakeholders

<div class="phx-topic abstract-wrapper">The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver.</div>

The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver.

<div class="phx-topic">Schneider National on Monday launched a new intermodal product offering a 95% on-time guarantee that is designed to convert truckload shippers that have been long skeptical of rail service reliability. The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver. “Reliability is a cornerstone of our operations,” Jim Filter, Schneider’s executive vice president, said in a statement. “Fast Track gives shippers peace of mind with unmatched speed and consistency, supported by our professional drivers and robust nationwide network of company-owned assets.” Some shippers need truck-like transit times; others value predictable delivery windows above all. “If what they are looking for is a faster transit, we will put it on an [expedited] train,” Michael Baumgardt, vice president of intermodal for Schneider, told the Journal of Commerce. “Some customers need a consistent schedule that you can’t deviate from ever. The consistency must be 95% to 100% on schedule. Our Fast Track product will serve both types of customers.” Fast Track will be more expensive than standard intermodal because of its service guarantees, but Schneider said it should remain cheaper than truckload, particularly on longer hauls over 1,200 miles. The Schneider product comes after competitor J.B. Hunt Transport Services launched the Quantum product <a href="https://www.joc.com/article/j-b-hunt-bnsf-launch-new-intermodal-service-to-grab-time-sensitive-freight-5215574">in 2023</a> with a 95% on-time guarantee, which expanded into <a href="https://www.joc.com/article/jb-hunt-launching-quantum-de-mexico-for-time-sensitive-cross-border-freight-6014579">Mexico</a> earlier this year. Similar to Quantum, Fast Track is planned “backward” from the point of delivery. Schneider will work with shippers to define what qualifies as on time — i.e. the delivery window of the shipper — and their speed requirements, before building a route that meets those expectations. “We begin by understanding what our customer is trying to accomplish,” Baumgardt said. “Then we determine what we are going to need to do differently, which may include alternative routings, longer drays, or skipping an interchange and using our asset-based truckload network. It could also mean changes from a customer at origin.” Schneider is likely to focus its efforts on Canadian Pacific Kansas City’s (CPKC’s) Mexico Midwest Express, where its single-line route is advertised as up to two days faster than competitors. However, Schneider said Fast Track will also include lanes with CSX Transportation and Union Pacific Railroad (UP), noting that it coordinated with all three railroads before launching. <h3>How Schneider plans to meet the 95% guarantee </h3>To execute the service guarantee, Schneider has worked with CPKC, CSX and UP on priority loading and unloading, a “first-on, first-off” approach similar to premium handling in ocean shipping. Schneider will also flag containers to ensure none are left behind when trains are full, akin to rolled cargo in ocean transportation. “We will work with the railroads to segregate these containers to ensure that they don’t get left behind,” Baumgardt said. “And if there needs to be a priority to get off the train to meet the customer’s needs, we’d work with the railroad on that too. Our teams are closely integrated with our rail partners on Fast Track.” Schneider shares a key advantage with J.B. Hunt: insourced chassis and drayage. Most containers move on company-operated tractors, and every container rides on Schneider-owned chassis, minimizing reliance on third parties for the first and final mile. Schneider also has more than 10,000 company tractors in its one-way and dedicated truckload divisions, which can step in when rail disruptions occur. If a train is delayed en route, the railroad can unload the container at the next available location and Schneider can complete the move via highway to honor the on-time guarantee. That flexibility is harder to replicate south of the border for J.B. Hunt and Schneider as neither have company assets there. “We have partnerships in Mexico and the types of carriers that we use, which we are very particular about, we’ve already had situation already where we’ve had to make changes on the fly and been very successful doing it,” Baumgardt said. “We have trusted third-party partners in Mexico that we know can deliver the security, capacity, and speed that would be required for Fast Track if it were to come to it.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Schneider National on Monday launched a new intermodal product offering a 95% on-time guarantee that is designed to convert truckload shippers that have been long skeptical of rail service reliability. The product, known as Fast Track, is the latest effort by an intermodal carrier to attract customers who depend on precision and dependable service, qualities that railroads have often struggled to deliver. “Reliability is a cornerstone of our operations,” Jim Filter, Schneider’s executive vice president, said in a statement. “Fast Track gives shippers peace of mind with unmatched speed and consistency, supported by our professional drivers and robust nationwide network of company-owned assets.” Some shippers need truck-like transit times; others value predictable delivery windows above all. “If what they are looking for is a faster transit, we will put it on an [expedited] train,” Michael Baumgardt, vice president of intermodal for Schneider, told the Journal of Commerce. “Some customers need a consistent schedule that you can’t deviate from ever. The consistency must be 95% to 100% on schedule. Our Fast Track product will serve both types of customers.” Fast Track will be more expensive than standard intermodal because of its service guarantees, but Schneider said it should remain cheaper than truckload, particularly on longer hauls over 1,200 miles. The Schneider product comes after competitor J.B. Hunt Transport Services launched the Quantum product in 2023 with a 95% on-time guarantee, which expanded into Mexico earlier this year. Similar to Quantum, Fast Track is planned “backward” from the point of delivery. Schneider will work with shippers to define what qualifies as on time — i.e. the delivery window of the shipper — and their speed requirements, before building a route that meets those expectations. “We begin by understanding what our customer is trying to accomplish,” Baumgardt said. “Then we determine what we are going to need to do differently, which may include alternative routings, longer drays, or skipping an interchange and using our asset-based truckload network. It could also mean changes from a customer at origin.” Schneider is likely to focus its efforts on Canadian Pacific Kansas City’s (CPKC’s) Mexico Midwest Express, where its single-line route is advertised as up to two days faster than competitors. However, Schneider said Fast Track will also include lanes with CSX Transportation and Union Pacific Railroad (UP), noting that it coordinated with all three railroads before launching. How Schneider plans to meet the 95% guarantee To execute the service guarantee, Schneider has worked with CPKC, CSX and UP on priority loading and unloading, a “first-on, first-off” approach similar to premium handling in ocean shipping. Schneider will also flag containers to ensure none are left behind when trains are full, akin to rolled cargo in ocean transportation. “We will work with the railroads to segregate these containers to ensure that they don’t get left behind,” Baumgardt said. “And if there needs to be a priority to get off the train to meet the customer’s needs, we’d work with the railroad on that too. Our teams are closely integrated with our rail partners on Fast Track.” Schneider shares a key advantage with J.B. Hunt: insourced chassis and drayage. Most containers move on company-operated tractors, and every container rides on Schneider-owned chassis, minimizing reliance on third parties for the first and final mile. Schneider also has more than 10,000 company tractors in its one-way and dedicated truckload divisions, which can step in when rail disruptions occur. If a train is delayed en route, the railroad can unload the container at the next available location and Schneider can complete the move via highway to honor the on-time guarantee. That flexibility is harder to replicate south of the border for J.B. Hunt and Schneider as neither have company assets there. “We have partnerships in Mexico and the types of carriers that we use, which we are very particular about, we’ve already had situation already where we’ve had to make changes on the fly and been very successful doing it,” Baumgardt said. “We have trusted third-party partners in Mexico that we know can deliver the security, capacity, and speed that would be required for Fast Track if it were to come to it.” Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Intermodal providers

Schneider launches premium intermodal service with 95% on-time guarantee

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

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

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Filling the Supply Chain Education Gap with LTL Education Courses

In 1995, we began operations with a clear vision: to grow alongside Mexico and connect the world through our terminals. Our priority has always been to deliver excellence in service, foster economic development, and strengthen our communities. We firmly believe that progress is not only measured in tons of cargo moved, but in the opportunities we create. _______________________________________________________________ This year marks a significant milestone: SSA Marine Mexico celebrates 30 years of presence in the country, having established itself from day one as the leading port operator nationwide. Over the past three decades, we have built a legacy of reliability, innovation, and commitment to Mexico’s growth. Our journey has been defined by continuous evolution and a steadfast dedication to our mission. SSA Marine México currently operates in six of the country’s most important ports: Cozumel, Lazaro Cardenas, Manzanillo, Progreso, Tuxpan, and Veracruz. Additionally, we have signed a concession to operate a new multipurpose terminal in Guaymas, Sonora, expanding our footprint to the north of the country. We serve a wide range of segments including containers, general cargo, automobiles, cruise ships, hydrocarbons, and asphalt. As part of this ongoing commitment, SSA Marine Mexico continues to strengthen its infrastructure and capabilities. International trade remains a key driver of global economic growth, and we are proud to support this momentum. Through our continuous improvement strategy, we invest in cutting-edge technology and equipment to deliver more efficient and competitive services, contributing to the success of Mexican businesses. •	Manzanillo, Colima- Specialized Container Terminal I: On October 13, we celebrated the arrival of two new STS (Ship To Shore) Super Post Panamax dockside cranes. This $21.2 million USD investment significantly boosts our operational capacity, streamlining cargo reception and delivery processes. In line with our modernization efforts, we will also retire four of our oldest cranes, paving the way for a more sustainable and technologically advanced fleet that meets the evolving demands of international trade. With these upgrades, SSA Marine México now operates a total of 16 cranes along our 1,350-meter dock, reaffirming our position as a national benchmark in port <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982635607_Manzanillo.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> •	As for the Multipurpose Terminal and Specialized Facility, also in Manzanillo, Colima, improvement and conditioning works are planned, along with the acquisition of four E-RTG (Electric Rubber-Tyred Gantry) cranes to enhance operational efficiency and sustainability. •	At our Automobile and General Cargo Terminal in the port of Veracruz, we continue to lead with specialized value-added services that support our clients’ growth. Recent investments include a new washing cabin and a general cargo warehouse, increasing indoor storage capacity by 67%. •	Lazaro Cardenas, Michoacan – Specialized Automobile Terminal: we are working on the development of an additional 4-hectare storage space within our bonded area and a 10-hectare Vehicle Distribution Center (VDC). These enhancements, along with ongoing personnel and system improvements, will reinforce our leadership in automotive handling across the Mexican Pacific coast.<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982742240_Lazaro.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> Through these strategic investments, SSA Marine Mexico reaffirms its commitment to the sustained growth of Mexico’s foreign trade. By expanding capacity, modernizing infrastructure, and diversifying services, we continue to strengthen the country’s competitiveness in global logistics. Today, we celebrate three decades of dedication, innovation, and leadership, with deep gratitude to our employees, clients, and partners for being part of this incredible journey. LINK: https://www.ssamarine.mx/<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1760982787360_SSA%20Marine%20Mexico%20logo%20150pxW.png" alt="" class="joc_admin__inline-image-inherit">

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SSA Marine Mexico: 30 years growing together.

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Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

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Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

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Gateway

Customers scoring their intermodal partners to identify the best service providers

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Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

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Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

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The only editorially independent conference for the breakbulk & project cargo industry

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The Journal of Commerce’s air cargo news covers the movement of air cargo, including air cargo shipping, air cargo carriers, air freight forwarders, air freight, air shipments, cargo airports and cargo news. It also tracks air cargo trends, air freight news, shifting of cargo between air and ocean, airports and airfreight delays and congestion.

Journal of Commerce offers extensive air freight forwarder news and analysis of air cargo forwarding, including topics such as strategies, capacity, services.

Air Cargo Forwarder News | Journal of Commerce

Air Cargo Forwarder News

Stay informed with air cargo carriers news. Journal of Commerce covers updates on air cargo carriers, air craft carrier capacity, rates routings and technology.

Air Cargo Carriers News | Journal of Commerce

Air Cargo Carriers News

Get the latest air cargo news and analysis with JOC. From carriers to trends, get insights into air freight news, air cargo shipping, and more.

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More News & Analysis

Overcapacity, slack season pressures push India–Europe rates to two-year lows

Project cargo forwarders in the space race prepare for lift-off

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