<div class="phx-topic abstract-wrapper">Forwarders say they are seeing utilization only near 50% on the Asia-Mexico lane amid seasonally low demand and tariff uncertainties. </div>

Forwarders say they are seeing utilization only near 50% on the Asia-Mexico lane amid seasonally low demand and tariff uncertainties.

Feature image

<div>The Mexican Pacific ports of Lazaro Cardenas and Manzanillo are experiencing delays of up to five days as they face operational challenges caused by bigger ships calling the gateways. “A couple of years ago, the biggest ship arriving in Mexico was about 10,000 TEUs,” said Nicolas Portenza, president of Eternity International Freight Forwarder México. “Now you have Maersk, MSC [Mediterranean Shipping Company] and CMA CGM arriving with vessels between 12,000 TEUs and 16,000 TEUs to a port that is the same size.” As such, sources say carriers had difficulty in March filling vessels, many of which were <a>brought on recently...

The Mexican Pacific ports of Lazaro Cardenas and Manzanillo are experiencing delays of up to five days as they face operational challenges caused by bigger ships calling the gateways. “A couple of years ago, the biggest ship arriving in Mexico was about 10,000 TEUs,” said Nicolas Portenza, president of Eternity International Freight Forwarder México. “Now you have Maersk, MSC [Mediterranean Shipping Company] and CMA CGM arriving with vessels between 12,000 TEUs and 16,000 TEUs to a port that is the same size.” As such, sources say carriers had difficulty in March filling vessels, many of which were brought on recently due to manufacturing growth in Latin America . Freight forwarders say they are seeing utilization near 50% as seasonally low demand combined with tariff uncertainties drive down demand on the Asia-Mexico lane. But despite the bearish market signals, some sources expect a turnaround soon. “I think it will recover during April and May,” Portenza told the Journal of Commerce. “Demand is not weak per se, it’s just not keeping up with the [vessel] supply.” Still, industry sources are paying attention to talk of even more capacity to come serving Central America and the West Coast of South America (WCSA). “There is news of new services to Mexico and also to WCSA,” said a forwarder source with cargo on the lane. “It will be a bloodbath if they come.” Decreasing blank sailings Meanwhile, the Asia to West Coast South America and Central America lane is positioned for fewer blanks in April as forwarders report green shoots of demand, although it may not be enough to offset the increased vessel sizes and excess capacity. As of Monday, maritime intelligence firm eeSea reports that no blanks are forecast on the lane in April, down from 12 blank sailings in March that accounted for about 12.2% of the total capacity for WCSA imports from Asia. March marked the highest number of blank sailings observed on the trade since September, a likely response to several capacity injections on the lane in the past several months. According to Eternity International, the Asia to Mexico lane had a total of five blank sailings spread among four carriers in March, although that is expected to drop to three blanks in April, all from Cosco. Spot rates from Asia to WCSA were pegged at $1,400 per FEU as of Monday, down 46.1% from the first week of January and lower by the same amount year over year, according to Platts, a sister company of the Journal of Commerce within S&P Global. Contact Laura Robb at laura.robb@spglobal.com . 

Maritime

Port News

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Container Shipping News

Key Mexican container ports facing delays amid calls by larger vessels

<div class="phx-topic abstract-wrapper">The BCO technology provider, in a bid to avoid costly dispute resolution, has identified 20 use cases under which shippers, consignees, and carriers can agree to be held responsible for container storage.</div>

The BCO technology provider, in a bid to avoid costly dispute resolution, has identified 20 use cases under which shippers, consignees, and carriers can agree to be held responsible for container storage.

<div class="phx-topic">International logistics software vendor BuyCo is proposing that shippers and carriers agree to a standard set of contract terms that would apportion responsibility for the cost of container detention and demurrage. BuyCo’s proposal delineates, for 20 different circumstances that can lead to detention and demurrage, which party is accountable, and thus contractually would absolve the other parties from blame. The goal would be to include the mutually accepted rules in ocean freight contracts so there would be clarity around which party would be responsible for the storage fees and to avoid disputes, which BuyCo notes leads to costly overhead for importers, exporters, and shipping lines. “The idea is that it’s so simple, a kid could understand it,” said BuyCo CEO Carl Lauron said in an interview with the Journal of Commerce. “We’re playing together, let’s agree on the rules.” Marseille-based BuyCo provides international transportation management software for beneficial cargo owners (BCOs). Its customers include Goodyear, Hershey, Renault, and TotalEnergies. BuyCo executives formally presented their D&amp;D proposal at the Digital Container Shipping Association’s DCSA+ Day, an event held in Singapore in late April that brought together DCSA’s container line members, its technology and consulting partners, and a group of forwarders and shippers to discuss ways to make the container shipping industry more efficient. DCSA is an organization representing most of the world’s top liner carriers that is driving the adoption of digital standards in the ocean freight industry. <h3>Rules developed with customer feedback </h3>Lauron said BuyCo customers helped it create a list of more than 50 different root causes of detention and demurrage disputes, with the software vendor whittling that down to the 20 most common use cases to make the proposal more digestible. Of those 20, seven would be a shipper’s liability, seven would be a carrier’s fault, and the remaining six would be the consignee’s fault. Examples of a shipper’s responsibility: a lack of export documentation compliance, damaged equipment in a merchant haulage scenario (where the shipper arranges drayage), and a failure to meet vessel cutoff at the origin port. Carriers would agree to be held responsible when storage fees are accrued due to transshipment delays, late or inaccurate communication around vessel cutoffs, or when a container is rolled. Meanwhile, consignees would agree to pay storage fees in situations such as when they asked for a container rerouting, or when warehouse capacity at destination precluded their ability to pick up a container. “This is a common sense approach written on paper, which at the end of the day would be the rules of the game that every player needs,” said Olivier Martinot, global transports and customs leader for Adeo, a major home improvement retailer in Europe and a BuyCo customer. Martinot, though, acknowledged it will be challenging to drive adoption of the rules simply because each major region has its own culture and regulatory environment. “From my French-based shipper window, we would need a significant panel of large, impactful shippers allied if we want to make it happen with carriers on French-based contacts,” he said. “I’m not sure at all we could reach a global agreement, and to me, this is where the major difficulty is.” But Lauron said there was a positive reception to the idea from both shippers and container lines at the April DCSA meeting. BuyCo is in the process of championing the idea to individual carriers to galvanize support for the proposal. <h3>Long-standing problem </h3>The idea of making responsibility for detention and demurrage more concrete has long been an elusive goal. The National Industrial Transportation League (NITL) in 2023 developed a so-called “shipper bill of rights” that specified 14 things to which a shipper was entitled in its relationship with container lines. Included in that list was pricing transparency and efficiency in claims resolution. Detention and demurrage costs spiraled during the pandemic and have remained higher than before COVID, prompting shippers to use an array of technology providers and freight audit companies to automate disputes across thousands of invoices and claw back refunds. BuyCo’s approach has been to look at incentives more holistically, Lauron said, in ways that would motivate both container lines and shippers to be accountable, and to avoid the presumption that carriers are always in the wrong when a storage dispute occurs. “This started with our customers asking us to check on invoicing,” he said. “And the real pain was not freight, but the D&amp;D. Instead of looking at the invoicing, let’s look at the actual D&amp;D that’s being created because if you reduce D&amp;D accrued, you automatically reduce the claims.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

International logistics software vendor BuyCo is proposing that shippers and carriers agree to a standard set of contract terms that would apportion responsibility for the cost of container detention and demurrage. BuyCo’s proposal delineates, for 20 different circumstances that can lead to detention and demurrage, which party is accountable, and thus contractually would absolve the other parties from blame. The goal would be to include the mutually accepted rules in ocean freight contracts so there would be clarity around which party would be responsible for the storage fees and to avoid disputes, which BuyCo notes leads to costly overhead for importers, exporters, and shipping lines. “The idea is that it’s so simple, a kid could understand it,” said BuyCo CEO Carl Lauron said in an interview with the Journal of Commerce. “We’re playing together, let’s agree on the rules.” Marseille-based BuyCo provides international transportation management software for beneficial cargo owners (BCOs). Its customers include Goodyear, Hershey, Renault, and TotalEnergies. BuyCo executives formally presented their D&D proposal at the Digital Container Shipping Association’s DCSA+ Day, an event held in Singapore in late April that brought together DCSA’s container line members, its technology and consulting partners, and a group of forwarders and shippers to discuss ways to make the container shipping industry more efficient. DCSA is an organization representing most of the world’s top liner carriers that is driving the adoption of digital standards in the ocean freight industry. Rules developed with customer feedback Lauron said BuyCo customers helped it create a list of more than 50 different root causes of detention and demurrage disputes, with the software vendor whittling that down to the 20 most common use cases to make the proposal more digestible. Of those 20, seven would be a shipper’s liability, seven would be a carrier’s fault, and the remaining six would be the consignee’s fault. Examples of a shipper’s responsibility: a lack of export documentation compliance, damaged equipment in a merchant haulage scenario (where the shipper arranges drayage), and a failure to meet vessel cutoff at the origin port. Carriers would agree to be held responsible when storage fees are accrued due to transshipment delays, late or inaccurate communication around vessel cutoffs, or when a container is rolled. Meanwhile, consignees would agree to pay storage fees in situations such as when they asked for a container rerouting, or when warehouse capacity at destination precluded their ability to pick up a container. “This is a common sense approach written on paper, which at the end of the day would be the rules of the game that every player needs,” said Olivier Martinot, global transports and customs leader for Adeo, a major home improvement retailer in Europe and a BuyCo customer. Martinot, though, acknowledged it will be challenging to drive adoption of the rules simply because each major region has its own culture and regulatory environment. “From my French-based shipper window, we would need a significant panel of large, impactful shippers allied if we want to make it happen with carriers on French-based contacts,” he said. “I’m not sure at all we could reach a global agreement, and to me, this is where the major difficulty is.” But Lauron said there was a positive reception to the idea from both shippers and container lines at the April DCSA meeting. BuyCo is in the process of championing the idea to individual carriers to galvanize support for the proposal. Long-standing problem The idea of making responsibility for detention and demurrage more concrete has long been an elusive goal. The National Industrial Transportation League (NITL) in 2023 developed a so-called “shipper bill of rights” that specified 14 things to which a shipper was entitled in its relationship with container lines. Included in that list was pricing transparency and efficiency in claims resolution. Detention and demurrage costs spiraled during the pandemic and have remained higher than before COVID, prompting shippers to use an array of technology providers and freight audit companies to automate disputes across thousands of invoices and claw back refunds. BuyCo’s approach has been to look at incentives more holistically, Lauron said, in ways that would motivate both container lines and shippers to be accountable, and to avoid the presumption that carriers are always in the wrong when a storage dispute occurs. “This started with our customers asking us to check on invoicing,” he said. “And the real pain was not freight, but the D&D. Instead of looking at the invoicing, let’s look at the actual D&D that’s being created because if you reduce D&D accrued, you automatically reduce the claims.” Contact Eric Johnson at eric.johnson@spglobal.com .

Software vendor offers proposal to establish detention, demurrage accountability

<div class="phx-topic abstract-wrapper">Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels. </div>

Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels.

<div class="phx-topic">Work has begun on the $2 billion fifth development phase of Nansha port, the main international container gateway for Guangzhou in southern China, as part of a move to increase Nansha’s capacity to 35 million TEUs by around 2030. Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels, China’s Transport Ministry said Monday. The extension, with a combined berth length of 2.4 miles, will boost capacity at Nansha by 6.7 million TEUs. Guangzhou Port Group is also developing the $1 billion Nansha International General Terminal that will add an additional 500,000 TEUs of capacity and berths for breakbulk, project cargo and vehicle shipments. Port group Chairman Huang Bo said the fifth development phase plus general terminal and other expansion work will add 11 million TEUs of operating capacity to Nansha port, located about 40 miles south of Guangzhou city. The work comes as Guangzhou is seeing an increase in container volumes as growth there largely keeps pace with rival Shenzhen about 60 miles south, while both ports are continuing to lure volumes away from Hong Kong. Guangzhou saw throughput climb 8% to over 27 million TEUs last year, of which more than 22 million TEUs were handled at Nansha, according to the Guangzhou Port Group. The growth has continued this year, with a 4% increase in Guangzhou’s total throughput in the first four months of this year, to 9 million TEUs. Container volumes at Shenzhen rose 5% last year to 35 million TEUs, with growth in the first four months climbing 8% to 8.5 million TEUs, according to China’s Transport Ministry.Volumes at Hong Kong have continued to decline, falling 5% to 13.7 million TEUs last year and sliding a further 7% to 4.2 million TEUs this year through April, according to data from Hong Kong’s Marine Department. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Work has begun on the $2 billion fifth development phase of Nansha port, the main international container gateway for Guangzhou in southern China, as part of a move to increase Nansha’s capacity to 35 million TEUs by around 2030. Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels, China’s Transport Ministry said Monday. The extension, with a combined berth length of 2.4 miles, will boost capacity at Nansha by 6.7 million TEUs. Guangzhou Port Group is also developing the $1 billion Nansha International General Terminal that will add an additional 500,000 TEUs of capacity and berths for breakbulk, project cargo and vehicle shipments. Port group Chairman Huang Bo said the fifth development phase plus general terminal and other expansion work will add 11 million TEUs of operating capacity to Nansha port, located about 40 miles south of Guangzhou city. The work comes as Guangzhou is seeing an increase in container volumes as growth there largely keeps pace with rival Shenzhen about 60 miles south, while both ports are continuing to lure volumes away from Hong Kong. Guangzhou saw throughput climb 8% to over 27 million TEUs last year, of which more than 22 million TEUs were handled at Nansha, according to the Guangzhou Port Group. The growth has continued this year, with a 4% increase in Guangzhou’s total throughput in the first four months of this year, to 9 million TEUs. Container volumes at Shenzhen rose 5% last year to 35 million TEUs, with growth in the first four months climbing 8% to 8.5 million TEUs, according to China’s Transport Ministry. Volumes at Hong Kong have continued to decline, falling 5% to 13.7 million TEUs last year and sliding a further 7% to 4.2 million TEUs this year through April, according to data from Hong Kong’s Marine Department. Contact Keith Wallis at keithwallis@hotmail.com .

Port infrastructure

Marine terminals

Guangzhou begins work on $2 billion fifth development phase at Nansha port

<div class="phx-topic abstract-wrapper">The Abu Dhabi group is following its larger Dubai-based neighbor DP World in growing its end-to-end reach across the container shipping sector.</div>

The Abu Dhabi group is following its larger Dubai-based neighbor DP World in growing its end-to-end reach across the container shipping sector.

<div class="phx-topic">AD Ports said Monday it has signed a deal to acquire Cologne-based forwarder MBS Logistics Group, continuing a strategic expansion strategy to grow market access in Central Europe, East Asia and Southeast Asia. The acquisition by the Abu Dhabi group, subject to regulatory approval, is expected to be completed in the second half of the year. Financial terms were not disclosed. MBS will join Noatum Logistics, AD Ports’ forwarding arm that is led by Jochen Thewes, who was appointed CEO of the division last December. Thewes, the former CEO of DB Schenker, has been tasked with shepherding the strategic expansion of Noatum’s global reach, combining organic growth with targeted acquisitions. “Bringing MBS Logistics into our ecosystem is the right move at the right time, especially as markets seek greater connectivity and resilience in an evolving global trade and logistics landscape,” he said in a statement. Thewes said MBS would provide Noatum with an established operating platform and immediate access to key logistics corridors in Central Europe and globally. “Ultimately, the combined strengths of both organizations will allow us to raise our game and compete more effectively for major global accounts,” he added. If approved, the transaction would cover MBS’ forwarding and logistics operations across Germany, Switzerland, Asia-Pacific and the US. In 2025, MBS Logistics generated revenues of €205 million ($240 million) with a diversified and asset-light business model and core forwarding operations in Central Europe, and an established network across East Asia and Southeast Asia. The current shareholders of MBS Logistics will exit the operational business, except for Joerg Roehl, shareholder and group CEO. He will oversee the integration and then become part of Noatum’s senior leadership team. <h3>AD Ports expansion </h3>AD Ports has been rapidly expanding its end-to-end reach in the container shipping sector in the past few years, following in the footsteps of larger Dubai-based neighbor DP World. AD Ports, which acquired Spain-based Noatum for $760 million in 2023, has several strategic partnerships with CMA CGM. In the joint venture Khalifa Port in Abu Dhabi, the ocean carrier holds a 70% share, with AD Ports holding the remaining 30%. Last November, AD Ports took a 20% stake in the CMA CGM-operated <a href="https://www.joc.com/article/cma-cgm-accelerates-232-million-syrian-med-port-expansion-project-6066188">Latakia International Container Terminal in Syria</a>. The two companies are also involved in the joint venture development of a multipurpose cargo terminal in Pointe Noire in the Republic of Congo. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

AD Ports said Monday it has signed a deal to acquire Cologne-based forwarder MBS Logistics Group, continuing a strategic expansion strategy to grow market access in Central Europe, East Asia and Southeast Asia. The acquisition by the Abu Dhabi group, subject to regulatory approval, is expected to be completed in the second half of the year. Financial terms were not disclosed. MBS will join Noatum Logistics, AD Ports’ forwarding arm that is led by Jochen Thewes, who was appointed CEO of the division last December. Thewes, the former CEO of DB Schenker, has been tasked with shepherding the strategic expansion of Noatum’s global reach, combining organic growth with targeted acquisitions. “Bringing MBS Logistics into our ecosystem is the right move at the right time, especially as markets seek greater connectivity and resilience in an evolving global trade and logistics landscape,” he said in a statement. Thewes said MBS would provide Noatum with an established operating platform and immediate access to key logistics corridors in Central Europe and globally. “Ultimately, the combined strengths of both organizations will allow us to raise our game and compete more effectively for major global accounts,” he added. If approved, the transaction would cover MBS’ forwarding and logistics operations across Germany, Switzerland, Asia-Pacific and the US. In 2025, MBS Logistics generated revenues of €205 million ($240 million) with a diversified and asset-light business model and core forwarding operations in Central Europe, and an established network across East Asia and Southeast Asia. The current shareholders of MBS Logistics will exit the operational business, except for Joerg Roehl, shareholder and group CEO. He will oversee the integration and then become part of Noatum’s senior leadership team. AD Ports expansion AD Ports has been rapidly expanding its end-to-end reach in the container shipping sector in the past few years, following in the footsteps of larger Dubai-based neighbor DP World. AD Ports, which acquired Spain-based Noatum for $760 million in 2023, has several strategic partnerships with CMA CGM. In the joint venture Khalifa Port in Abu Dhabi, the ocean carrier holds a 70% share, with AD Ports holding the remaining 30%. Last November, AD Ports took a 20% stake in the CMA CGM-operated Latakia International Container Terminal in Syria . The two companies are also involved in the joint venture development of a multipurpose cargo terminal in Pointe Noire in the Republic of Congo. Contact Greg Knowler at greg.knowler@spglobal.com .

Forwarding

AD Ports to expand Europe, Asia footprints with MBS Logistics takeover

<div class="phx-topic abstract-wrapper">Trucking industry attorneys say last week’s decision by the Supreme Court is likely to intensify scrutiny of carrier selection practices and insurance coverage.</div>

Trucking industry attorneys say last week’s decision by the Supreme Court is likely to intensify scrutiny of carrier selection practices and insurance coverage.

<div class="phx-topic">The unanimous <a href="https://www.joc.com/article/supreme-court-ruling-strips-broker-protection-linked-to-carrier-safety-6220667">Supreme Court ruling</a> allowing certain state-level negligence claims against freight brokers is expected to increase pressure on motor carriers to carry higher insurance limits and could eventually contribute to higher transportation costs, trucking attorneys say. The May 14 decision in Montgomery v. Caribe Transports LLC held that freight brokers are not shielded from some state personal injury lawsuits, potentially expanding liability exposure for intermediaries that arrange truck freight. Attorneys on both sides of the trucking industry said the ruling is likely to intensify scrutiny of carrier selection practices and insurance coverage. “A lot of brokers are going to go to their trucking companies and say, ‘You’ve been running loads with $1 million worth of insurance. Since we’re exposed, you can cause a lot more than $1 million worth of damage,’” Ed Leonard, a partner at San Diego law firm Tyson &amp; Mendes, which represents trucking companies in civil litigation, said. Leonard told the Journal of Commerce that brokers are likely to require higher liability coverage from carriers moving freight, particularly smaller operators with marginal safety records. “They’re going to be asking these trucking companies to buy more insurance,” he said. “This is going to cost more money to get things done.” The ruling could also tighten trucking capacity if higher insurance premiums force some smaller fleets and owner-operators to exit the market, Leonard said. That could place additional upward pressure on freight rates at a time when parts of the trucking industry are already navigating labor and regulatory disruptions. <h3>‘A big deal’ </h3>Plaintiff attorneys, meanwhile, said the decision gives crash victims a significant new legal avenue by allowing brokers to be named in lawsuits involving serious injuries and fatalities. “These major trucking accidents result in deaths, amputations and traumatic brain injuries, and this opens the door to brokers, making them a viable defendant,” said Edward Bassett, a partner at Mirick Law and former president of the Association of Plaintiff Interstate Trucking Lawyers of America. “Whether you are popping champagne or Diet Coke at plaintiff firms, this is a big deal.” Bassett said brokers are likely to more carefully scrutinize the carriers they hire, rather than selecting providers primarily on price. “They’re going to start looking carefully at the carriers they hire and not just the cheaper ones,” he said. “They’re being held responsible if they hire fly-by-night companies.” The case decided by the Supreme Court last week stemmed from a 2017 crash in Illinois involving truck driver Shawn Montgomery, who suffered catastrophic injuries and lost a leg after his parked tractor-trailer was struck by another truck. The Supreme Court ruled Montgomery could pursue claims against freight broker C.H. Robinson, which arranged the shipment. Montgomery’s attorneys argued that carrier Caribe Transport II had a poor safety record and that the broker should share liability for hiring it. C.H. Robinson argued that because trucking companies are federally licensed and regulated, brokers should be shielded from state negligence claims tied to carrier safety. The court disagreed, concluding that federal transportation law does not broadly preempt those claims. <h3>Federal data under scrutiny </h3>The decision could renew debate over trucking insurance minimums, which have remained largely unchanged since the Reagan administration. The Federal Motor Carrier Safety Administration (FMCSA) currently requires minimum liability coverage ranging from $750,000 to $5 million depending on the type of freight being hauled. Since 1985, Congress has repeatedly considered raising those thresholds or indexing them to inflation, but those efforts have stalled. FMCSA studies have suggested current minimums may be insufficient to cover catastrophic crashes and rising medical costs. Industry groups, however, have argued most claims settle below existing coverage requirements and that raising insurance mandates would disproportionately hurt small and midsize carriers by increasing operating costs. “We think it’s a bad decision. We had to be defending these cases before and we’ll be defending them after,” said Nathaniel Saylor, a partner at transportation law firm Scopelitis, Garvin, Light, Hanson &amp; Feary. “The question in these cases before the jury will always be, what is reasonable care. That standard was the standard yesterday and tomorrow as well. Nothing has changed regarding the broker’s duty. But the temperature is up on this issue, and you can expect the plaintiff bar will be pursuing these cases very aggressively.” Saylor said one major issue going forward will be the reliability of FMCSA safety data used by brokers to evaluate carriers, because critics of the system have said the information can be incomplete or outdated. “Brokers are dealing with carriers authorized by the federal government to operate,” Saylor said. “If brokers can be liable, we should at least make sure brokers have the right information available. How is the broker supposed to know that one carrier is more or less safe than another? “More information is good, and it helps,” he added. “With that information, FMCSA can identify unsafe carriers, remove them from the market and ensure the available capacity is safer.” Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>. </div>

The unanimous Supreme Court ruling allowing certain state-level negligence claims against freight brokers is expected to increase pressure on motor carriers to carry higher insurance limits and could eventually contribute to higher transportation costs, trucking attorneys say. The May 14 decision in Montgomery v. Caribe Transports LLC held that freight brokers are not shielded from some state personal injury lawsuits, potentially expanding liability exposure for intermediaries that arrange truck freight. Attorneys on both sides of the trucking industry said the ruling is likely to intensify scrutiny of carrier selection practices and insurance coverage. “A lot of brokers are going to go to their trucking companies and say, ‘You’ve been running loads with $1 million worth of insurance. Since we’re exposed, you can cause a lot more than $1 million worth of damage,’” Ed Leonard, a partner at San Diego law firm Tyson & Mendes, which represents trucking companies in civil litigation, said. Leonard told the Journal of Commerce that brokers are likely to require higher liability coverage from carriers moving freight, particularly smaller operators with marginal safety records. “They’re going to be asking these trucking companies to buy more insurance,” he said. “This is going to cost more money to get things done.” The ruling could also tighten trucking capacity if higher insurance premiums force some smaller fleets and owner-operators to exit the market, Leonard said. That could place additional upward pressure on freight rates at a time when parts of the trucking industry are already navigating labor and regulatory disruptions. ‘A big deal’ Plaintiff attorneys, meanwhile, said the decision gives crash victims a significant new legal avenue by allowing brokers to be named in lawsuits involving serious injuries and fatalities. “These major trucking accidents result in deaths, amputations and traumatic brain injuries, and this opens the door to brokers, making them a viable defendant,” said Edward Bassett, a partner at Mirick Law and former president of the Association of Plaintiff Interstate Trucking Lawyers of America. “Whether you are popping champagne or Diet Coke at plaintiff firms, this is a big deal.” Bassett said brokers are likely to more carefully scrutinize the carriers they hire, rather than selecting providers primarily on price. “They’re going to start looking carefully at the carriers they hire and not just the cheaper ones,” he said. “They’re being held responsible if they hire fly-by-night companies.” The case decided by the Supreme Court last week stemmed from a 2017 crash in Illinois involving truck driver Shawn Montgomery, who suffered catastrophic injuries and lost a leg after his parked tractor-trailer was struck by another truck. The Supreme Court ruled Montgomery could pursue claims against freight broker C.H. Robinson, which arranged the shipment. Montgomery’s attorneys argued that carrier Caribe Transport II had a poor safety record and that the broker should share liability for hiring it. C.H. Robinson argued that because trucking companies are federally licensed and regulated, brokers should be shielded from state negligence claims tied to carrier safety. The court disagreed, concluding that federal transportation law does not broadly preempt those claims. Federal data under scrutiny The decision could renew debate over trucking insurance minimums, which have remained largely unchanged since the Reagan administration. The Federal Motor Carrier Safety Administration (FMCSA) currently requires minimum liability coverage ranging from $750,000 to $5 million depending on the type of freight being hauled. Since 1985, Congress has repeatedly considered raising those thresholds or indexing them to inflation, but those efforts have stalled. FMCSA studies have suggested current minimums may be insufficient to cover catastrophic crashes and rising medical costs. Industry groups, however, have argued most claims settle below existing coverage requirements and that raising insurance mandates would disproportionately hurt small and midsize carriers by increasing operating costs. “We think it’s a bad decision. We had to be defending these cases before and we’ll be defending them after,” said Nathaniel Saylor, a partner at transportation law firm Scopelitis, Garvin, Light, Hanson & Feary. “The question in these cases before the jury will always be, what is reasonable care. That standard was the standard yesterday and tomorrow as well. Nothing has changed regarding the broker’s duty. But the temperature is up on this issue, and you can expect the plaintiff bar will be pursuing these cases very aggressively.” Saylor said one major issue going forward will be the reliability of FMCSA safety data used by brokers to evaluate carriers, because critics of the system have said the information can be incomplete or outdated. “Brokers are dealing with carriers authorized by the federal government to operate,” Saylor said. “If brokers can be liable, we should at least make sure brokers have the right information available. How is the broker supposed to know that one carrier is more or less safe than another? “More information is good, and it helps,” he added. “With that information, FMCSA can identify unsafe carriers, remove them from the market and ensure the available capacity is safer.” Contact Dan Ronan at contactdanronan@gmail.com .

Trucking News

Truckload

Truck brokers

Trucking labor

Surface

‘Montgomery’ ruling likely to raise pressure on trucking insurance, broker vetting

<div class="phx-topic abstract-wrapper">Paul Bird will be the next chief executive of the Montreal Port Authority as the gateway looks to his infrastructure expertise amid a major expansion project.</div>

Paul Bird will be the next chief executive of the Montreal Port Authority as the gateway looks to his infrastructure expertise amid a major expansion project.

<div class="phx-topic">The Port of Montreal is bringing back former commercial officer Paul Bird as its new chief executive, citing his experience with large-scale projects as the port embarks on its biggest expansion ever. The Montreal Port Authority (MPA) said in a statement Friday that Bird will take over as president and chief executive on June 8. Bird, who had been with the MPA since June 2020, had left to pursue new professional opportunities, the MPA said in March. Much of Bird’s previous tenure at the MPA involved helping shepherd through development of the Contrecoeur marine terminal project, which <a href="https://www.joc.com/article/montreal-expands-to-handle-container-growth-5212062">had been proposed back in 2015</a>. It faced several delays <a href="https://www.joc.com/article/montreal-relaunches-search-process-for-contrecoeur-terminal-operator-5204826">as the port faced difficulties in finding operating partners</a> willing to help finance the project. The MPA has since <a href="https://www.joc.com/article/montreal-port-gets-federal-funds-for-mega-terminal-after-operators-balk-at-risk-5222977">agreed to handle the underwater work at Contrecoeur</a>, with the help of <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">government funding</a> and a recently secured C$1.16 billion loan from the Canada Infrastructure Bank. Citing Bird’s degree in geology and his previous experience with global steel producer ArcelorMittal, the MPA said it was important to have someone with infrastructure experience to develop Contrecoeur, expected to come online in 2030. “Building on significant achievements during his six years at the Port of Montreal, [Bird] is fully committed to contributing actively to the commissioning of the Contrecoeur terminal and to the continued development of new markets,” Nathalie Pilon, chair of the MPA’s board of directors, said in the statement. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The Port of Montreal is bringing back former commercial officer Paul Bird as its new chief executive, citing his experience with large-scale projects as the port embarks on its biggest expansion ever. The Montreal Port Authority (MPA) said in a statement Friday that Bird will take over as president and chief executive on June 8. Bird, who had been with the MPA since June 2020, had left to pursue new professional opportunities, the MPA said in March. Much of Bird’s previous tenure at the MPA involved helping shepherd through development of the Contrecoeur marine terminal project, which had been proposed back in 2015 . It faced several delays as the port faced difficulties in finding operating partners willing to help finance the project. The MPA has since agreed to handle the underwater work at Contrecoeur , with the help of government funding and a recently secured C$1.16 billion loan from the Canada Infrastructure Bank. Citing Bird’s degree in geology and his previous experience with global steel producer ArcelorMittal, the MPA said it was important to have someone with infrastructure experience to develop Contrecoeur, expected to come online in 2030. “Building on significant achievements during his six years at the Port of Montreal, [Bird] is fully committed to contributing actively to the commissioning of the Contrecoeur terminal and to the continued development of new markets,” Nathalie Pilon, chair of the MPA’s board of directors, said in the statement. Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Port of Montreal’s former commercial chief to return as CEO

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