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<div class="phx-topic abstract-wrapper">The chief executives of BNSF and UP argue that while shareholders judge them on financial metrics, it would be a mistake to shun intermodal business simply because its margins are not as good as hauling other types of freight.</div>

The chief executives of BNSF and UP argue that while shareholders judge them on financial metrics, it would be a mistake to shun intermodal business simply because its margins are not as good as hauling other types of freight.

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<div>The CEOs of BNSF Railway and Union Pacific Railroad (UP) this week said containerized shipping is an important business with high growth potential despite its lower margins being called into question by Wall Street investors. Just how much a railroad’s financial metrics matter versus providing a dependable service has been a hot topic in recent years, with activist investors waging proxy fights against three Class I railroads in the last two years. The latest battle is Ancora Holdings looking to <a>unseat Norfolk Southern (NS) CEO Alan Shaw</a>. UP CEO Jim Vena, speaking at the North American Rail Shippers Conference in...

The CEOs of BNSF Railway and Union Pacific Railroad (UP) this week said containerized shipping is an important business with high growth potential despite its lower margins being called into question by Wall Street investors. Just how much a railroad’s financial metrics matter versus providing a dependable service has been a hot topic in recent years, with activist investors waging proxy fights against three Class I railroads in the last two years. The latest battle is Ancora Holdings looking to unseat Norfolk Southern (NS) CEO Alan Shaw . UP CEO Jim Vena, speaking at the North American Rail Shippers Conference in Chicago on Wednesday, said strong margins are the result of an efficient railroad, not the product of picking and choosing which freight to haul. Vena, like Ancora, champions the concept of precision scheduled railroading (PSR), but said it would be a mistake for any railroad to shun intermodal business because it generates lower margins than other types of freight, or to cut spending so much that the railroad is not flexible enough to absorb unforeseen disruptions. In PSR, railroads try to increase daily productivity through tighter schedules that are predictable and repeatable in a bid to eliminate complexity and unnecessary waste in operations. But PSR critics say too many employees, railcars and locomotives are eliminated in the bid to get lean, making it harder for service to rebound after major storms or other unplanned disruptions. “We need a buffer because business is not a flat line,” Vena said at the conference. “Now, having 1,500 excess locomotives, that’s too much of a buffer. But we have 500 right now ready to go, which is a smart thing to do. We’ll use them in the right situation, so that’s the way I look at the word ‘resiliency.’” Questions about the value of lower-margin business, such as intermodal, and cutting unnecessary expenses have been at the forefront for railroad shareholders. Many investors look at a metric known as an operating ratio, i.e., expenses as a percentage of revenue. For example, an operating ratio of 60 signifies that for every $100 in revenue, the railroad incurs $60 in expenses and nets $40 of income. Lower operating ratios equal higher income, which shareholders like. To have lower ratios, some institutional investors have suggested that railroads put more resources behind so-called merchandise business such as coal, grain and forest products because the margins are better than in intermodal. “I don’t say, ‘I’ll tell you, I need a 59.9 operating ratio, because if I can get to a 59.9 operating ratio, my stock is going to go up,’” Vena said. “As a railroader, what's important is safety, good service and operational excellence. If you are good at those three things, then you increase your revenue with more business, regardless of whether it is intermodal, boxcar traffic, or any other freight we’re handling.” BNSF cites J.B. Hunt partnership BNSF CEO Katie Farmer, also speaking at the Chicago conference, discussed the value of intermodal as a growth engine, highlighting her company’s partnership with J.B. Hunt Transport Services. “We’ve spent a couple billion dollars to build a state-of-the-art facility in Barstow, California, and our largest customer, our joint service provider, is J.B. Hunt, a trucking/intermodal marketing company,” Farmer said. “We didn't wake up and decide this is good. For decades, we've invested in putting ourselves in a position to have the best intermodal network in the world.” The remarks from Vena and Farmer came less than two weeks after Joe Hinrichs, CEO of CSX Transportation, discussed how intermodal has a bright future compared with other merchandise. “There’s no other merchandise business that’s going to grow dramatically over time…so we’ve got to find a way to tell [the intermodal] story and to be able to defend it against the activists,” Hinrichs said. Ancora in recent days has sought to clarify that ousting NS CEO Shaw would not result in the railroad “de-emphasizing” intermodal, but rather address its perceived lack of attention given to noncontainerized freight. The activist investor, in addition to seeking Shaw’s ouster, wants former CSX executive Jamie Boychuk to become NS’s chief operating officer. Boychuk, a PSR devotee, has said the operating concept is about productivity, analogous to driver productivity in trucking. Contact Ari Ashe at ari.ashe@spglobal.com .

Key rail executives back intermodal business despite questions over margins

<div class="phx-topic abstract-wrapper">The Hamburg-based carrier is investing $500 million on eight newbuilds and adding 14 newbuild charters, with the overall goal of making its fleet more fuel efficient and reducing carbon dioxide emissions. </div>

The Hamburg-based carrier is investing $500 million on eight newbuilds and adding 14 newbuild charters, with the overall goal of making its fleet more fuel efficient and reducing carbon dioxide emissions.

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<div class="phx-topic">Hapag-Lloyd is making its biggest bet on methanol’s future as a ship fuel with plans to spend $500 million building eight dual-fuel feeder vessels, adding to its alternative fuel fleet that currently leans on liquefied natural gas (LNG). The carrier said in a statement Friday it has contracted with Chinese shipyard CIMC Raffles for the construction of the eight newbuilds, which will have 4,500-TEU capacity. The ships are expected to be delivered in 2028 and 2029. The dual-fuel ships are 30% more efficient than older vessels, Hapag-Lloyd said, noting that under methanol propulsion, the ships will lower their carbon dioxide output by 350,000 metric tons per year, which is the output of roughly 76,000 vehicles. The newbuild order will be Hapag-Lloyd’s second big move into methanol. A year ago, <a href="https://www.joc.com/article/hapag-lloyd-joins-maersk-in-chinese-methanol-supply-deal-5866031">it announced plans to retrofit five of its post-Panamax chartered ships</a> into dual-fuel methanol, along with a long-term supply deal with Chinese methanol producer Goldwind. In addition to the eight newbuilds, Hapag-Lloyd said it entered long-term charters on another 14 newbuilds between 1,800 TEU and 4,500 TEU capacity. CEO Rolf Habben Jansen said in the statement the newbuilds and new charters will put Hapag-Lloyd on track to meet the International Maritime Organization’s target for net-zero shipping emissions by 2045. “The new ships will help replace older tonnage, further decarbonize the Hapag-Lloyd fleet, and reduce our dependence on the charter market,” Habben-Jansen said. “What’s more, operating these state-of-the-art ships will be much more cost-efficient.” <h3>LNG in the mix </h3>Hapag-Lloyd’s main bet so far has been LNG, with some 37 dual-fuel vessels delivered or on order. That fuel appears to have more of a place in mainline trades, with LNG-capable vessels in the 9,100-TEU to 23,800-TEU class. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="82b6ff12-d7ca-420a-abbe-7b9998b29e56"></dynamic-object></div>While LNG has gained a slight edge as far as alternative fuels, those fuels still comprise a tiny portion of the operational fleet. There are some 218 LNG-capable container ships currently operating, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, representing 3.4% of all ships in operation. Methanol-ready ships total 42, or less than 1%. But dual-fuel vessels make up over half of the current order book, illustrating the future for alternative fuels. Sea-web data shows there are 362 vessels on order that are LNG-capable, about 40% of the total order book. Methanol-capable vessels on order total 151, representing 17% of the order book. On a capacity basis, LNG represents 4.1 million TEUs, with methanol at 2.1 million TEUs, according to Sea-web. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Hapag-Lloyd is making its biggest bet on methanol’s future as a ship fuel with plans to spend $500 million building eight dual-fuel feeder vessels, adding to its alternative fuel fleet that currently leans on liquefied natural gas (LNG). The carrier said in a statement Friday it has contracted with Chinese shipyard CIMC Raffles for the construction of the eight newbuilds, which will have 4,500-TEU capacity. The ships are expected to be delivered in 2028 and 2029. The dual-fuel ships are 30% more efficient than older vessels, Hapag-Lloyd said, noting that under methanol propulsion, the ships will lower their carbon dioxide output by 350,000 metric tons per year, which is the output of roughly 76,000 vehicles. The newbuild order will be Hapag-Lloyd’s second big move into methanol. A year ago, it announced plans to retrofit five of its post-Panamax chartered ships into dual-fuel methanol, along with a long-term supply deal with Chinese methanol producer Goldwind. In addition to the eight newbuilds, Hapag-Lloyd said it entered long-term charters on another 14 newbuilds between 1,800 TEU and 4,500 TEU capacity. CEO Rolf Habben Jansen said in the statement the newbuilds and new charters will put Hapag-Lloyd on track to meet the International Maritime Organization’s target for net-zero shipping emissions by 2045. “The new ships will help replace older tonnage, further decarbonize the Hapag-Lloyd fleet, and reduce our dependence on the charter market,” Habben-Jansen said. “What’s more, operating these state-of-the-art ships will be much more cost-efficient.” LNG in the mix Hapag-Lloyd’s main bet so far has been LNG, with some 37 dual-fuel vessels delivered or on order. That fuel appears to have more of a place in mainline trades, with LNG-capable vessels in the 9,100-TEU to 23,800-TEU class. While LNG has gained a slight edge as far as alternative fuels, those fuels still comprise a tiny portion of the operational fleet. There are some 218 LNG-capable container ships currently operating, according to Sea-web, a sister company of the Journal of Commerce within S&P Global, representing 3.4% of all ships in operation. Methanol-ready ships total 42, or less than 1%. But dual-fuel vessels make up over half of the current order book, illustrating the future for alternative fuels. Sea-web data shows there are 362 vessels on order that are LNG-capable, about 40% of the total order book. Methanol-capable vessels on order total 151, representing 17% of the order book. On a capacity basis, LNG represents 4.1 million TEUs, with methanol at 2.1 million TEUs, according to Sea-web. Contact Michael Angell at michael.angell@spglobal.com .

Hapag-Lloyd to expand feeder fleet with new methanol-ready ships

<div class="phx-topic abstract-wrapper">The two Japanese vehicle carriers are the last to agree to a settlement figure in a long-running price-fixing case. </div>

The two Japanese vehicle carriers are the last to agree to a settlement figure in a long-running price-fixing case.

<div class="phx-topic">Two of Japan’s largest vehicle carrier operators, NYK and Mitsui OSK Lines, will pay $72 million (£54 million) to settle a collective action brought over high shipment fees for vehicles imported to Britain.  Mark McLaren, the lead attorney who brought the action on behalf of businesses and consumers, said the settlement is expected to be approved by Britain’s Competition Appeal Tribunal at a hearing in January. The settlement followed a trial against MOL and NYK held by the tribunal that started last January and lasted a total of nine weeks. The carriers were the last to finalize a settlement in the case after “K” Line and Wallenius Wilhelmsen and its South Korean affiliate EUKOR agreed to pay a combined $50 million in 2024, while CSAV paid $2 million in 2023. The carriers had been facing claims totaling $201 million for allegedly fixing prices for vehicle shipments to the UK between October 2006 and September 2015. Law firm Scott + Scott, which helped bring the action, claimed the five carriers were involved in a cartel that affected shipments of 17 million new automobiles and vans brought to the UK from a raft of major brands, including BMW, Ford, Mercedes-Benz, Nissan, Toyota and Volkswagen. McLaren, who launched the class action case five years ago, said the settlement “not only resolves wrongful anti-competitive, cartelist actions, but also allows for class members to finally be compensated for their financial losses.” NYK and MOL did not respond to requests for comment. The action in Britain is the latest price collusion case involving vehicle carrier operators over the last 10 years, with the US Department of Justice and authorities in Australia and Mexico all imposing fines for alleged price collusion on vehicle shipments. <h3>Demand growth expected to continue </h3>The settlement comes as light vehicle sales are expected to continue to climb this year even as China, already the world’s largest light vehicle exporter, accelerates overseas manufacturing in the face of tariff pressures. Global light vehicle sales are set to reach 90 million units this year, up 1.5% compared with 2024, according to figures from S&amp;P Global Mobility and ING Research. Of these, more than 15 million will be shipped overseas, with China accounting for more than 6.5 million units this year, according to S&amp;P Global Mobility figures. Highlighting the shift to overseas manufacturing, Abby Chun Tu, S&amp;P Global Mobility’s principal research analyst, said China’s five largest light vehicle exporters — BYD, Chery, Changan, SAIC and Geely — have expanded manufacturing operations to 19 sites in Southeast and Central Asia over the past three years to offset tariffs and higher costs. “The combined output of new energy vehicles [cars powered by alternative fuels] by Chinese car manufacturers in ASEAN is expected to account for 68% of the Southeast Asia region’s total new energy vehicle production by 2030 — a jump from 20% in 2024,” she said, quoting S&amp;P Global Mobility’s light-vehicle production forecast.  Chun Tu said BYD is also building two electric vehicle manufacturing plants in Europe to circumvent the region’s tariffs on imported Chinese-built EVs. Other automakers such as Chery, Geely and Leapmotor have launched joint ventures with local manufacturers in Spain, Poland, Malaysia and Brazil, she said in a Nov. 24 commentary.   Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Two of Japan’s largest vehicle carrier operators, NYK and Mitsui OSK Lines, will pay $72 million (£54 million) to settle a collective action brought over high shipment fees for vehicles imported to Britain.  Mark McLaren, the lead attorney who brought the action on behalf of businesses and consumers, said the settlement is expected to be approved by Britain’s Competition Appeal Tribunal at a hearing in January. The settlement followed a trial against MOL and NYK held by the tribunal that started last January and lasted a total of nine weeks. The carriers were the last to finalize a settlement in the case after “K” Line and Wallenius Wilhelmsen and its South Korean affiliate EUKOR agreed to pay a combined $50 million in 2024, while CSAV paid $2 million in 2023. The carriers had been facing claims totaling $201 million for allegedly fixing prices for vehicle shipments to the UK between October 2006 and September 2015. Law firm Scott + Scott, which helped bring the action, claimed the five carriers were involved in a cartel that affected shipments of 17 million new automobiles and vans brought to the UK from a raft of major brands, including BMW, Ford, Mercedes-Benz, Nissan, Toyota and Volkswagen. McLaren, who launched the class action case five years ago, said the settlement “not only resolves wrongful anti-competitive, cartelist actions, but also allows for class members to finally be compensated for their financial losses.” NYK and MOL did not respond to requests for comment. The action in Britain is the latest price collusion case involving vehicle carrier operators over the last 10 years, with the US Department of Justice and authorities in Australia and Mexico all imposing fines for alleged price collusion on vehicle shipments. Demand growth expected to continue The settlement comes as light vehicle sales are expected to continue to climb this year even as China, already the world’s largest light vehicle exporter, accelerates overseas manufacturing in the face of tariff pressures. Global light vehicle sales are set to reach 90 million units this year, up 1.5% compared with 2024, according to figures from S&P Global Mobility and ING Research. Of these, more than 15 million will be shipped overseas, with China accounting for more than 6.5 million units this year, according to S&P Global Mobility figures. Highlighting the shift to overseas manufacturing, Abby Chun Tu, S&P Global Mobility’s principal research analyst, said China’s five largest light vehicle exporters — BYD, Chery, Changan, SAIC and Geely — have expanded manufacturing operations to 19 sites in Southeast and Central Asia over the past three years to offset tariffs and higher costs. “The combined output of new energy vehicles [cars powered by alternative fuels] by Chinese car manufacturers in ASEAN is expected to account for 68% of the Southeast Asia region’s total new energy vehicle production by 2030 — a jump from 20% in 2024,” she said, quoting S&P Global Mobility’s light-vehicle production forecast.  Chun Tu said BYD is also building two electric vehicle manufacturing plants in Europe to circumvent the region’s tariffs on imported Chinese-built EVs. Other automakers such as Chery, Geely and Leapmotor have launched joint ventures with local manufacturers in Spain, Poland, Malaysia and Brazil, she said in a Nov. 24 commentary.   Contact Keith Wallis at keithwallis@hotmail.com .

NYK, MOL to pay $72 million to settle UK vehicle shipment claims

<div class="phx-topic abstract-wrapper">A boost in project cargo demand is expected as delayed mining projects in the country start to come onstream in the coming years. </div>

A boost in project cargo demand is expected as delayed mining projects in the country start to come onstream in the coming years.

<div class="phx-topic">The release of several previously stalled permits is setting up a mining boom across Mexico that could trigger a wave of breakbulk and project cargo activity. Restarting these mine projects could necessitate shipments of power generation equipment, heavy machinery and other project cargo in the near term, while mine operations and production could result in ongoing shipments of minerals and maintenance supplies. Over $11 billion in mining projects were reactivated in November following Mexican federal policy changes related to the approval of environmental and water permits needed for the projects to move forward. The mining projects are focused in the Mexican states of Zacatecas, Sonora, Chihuahua and Durango. Mexico is a key global producer of gold, copper, zinc and critical minerals. Fernando Aboitiz, head of the Coordination Unit for Extractive Industries at Mexico’s Ministry of Economy, told attendees at the International Mining Convention 2025 in Acapulco in November that 110 of 176 previously blocked permits in the mining sector have been approved so far, leaving 66 still pending. Aboitiz said the backlog could be cleared by mid-2026. According to the latest data from Mexican industry association Cámara Minera de Mexico (CAMIMEX), there were 574 mining projects in 30 states in Mexico in 2024. Of those, 225 were in the exploration phase, another 225 were in the production phase, 27 were in development, 85 were suspended, and 12 were in the closure phase. <h3>‘Sustained surge’ in cargo expected </h3>Juan Ignacio Lopez, CEO of King Ocean Gulf Alliance LLC (KOGA), a Houston-based multipurpose carrier that transports cargoes including mining supplies, steel, bulk chemicals, power generation equipment, and heavy machinery, told the Journal of Commerce that he anticipates growth in both short- and long-term cargo activity as Mexico’s mining activity picks up. “The good thing about a mining boom is that it creates a sustained surge in breakbulk and project cargo demands,” he said. Constructing these mines will require significant amounts of structural steel, heavy equipment for processing and excavating, and power generation equipment for the plants that supply power to the mines, Lopez said. “For us in particular, I think we’ll see increased moves of large mining equipment — from the US, from Brazil, Columbia and Panama — and higher volumes of cargo moving through the main Mexican ports for mining,” he said, citing the ports of Altamira and Veracruz along the Gulf and Manzanillo on the Pacific. Once the mines begin operations, Lopez expects to see more outbound shipments of minerals and other commodities. “That will also allow us to secure some contracts that will tie us to these mines and the suppliers, and to have a regular flow of those cargo movements between the Americas and into and out of Mexico,” he said. The mines will need to consistently import consumables to operate, Lopez said. That includes regularly replacing trucks, tires and spare parts for heavy equipment, while coal-burning power plants will require continuous shipments of coal and other supplies. “Those are things we’ll continuously move while the mine is working,” he said. As the mines produce minerals and other commodities, that output will need to be transported. “That creates an opportunity for carriers to move thousands of tons of minerals coming out of those mines,” Lopez said. Before mining activity picks up, carriers will need to prepare for the mines’ long-term cargo needs by securing regular sailings into and out of Mexico, Lopez said. That’s because whereas mine construction will produce enough project cargo and heavy equipment to fill up ships in the short term, sustaining operational needs and production output will require smaller shipments going to and from these mines. “Those are not volumes that can justify an entire ship. So you want to start looking for base cargoes that will put you in Mexico with certain regularity,” Lopez said, adding that KOGA already has regular customers in Mexico that ship other commodities. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

The release of several previously stalled permits is setting up a mining boom across Mexico that could trigger a wave of breakbulk and project cargo activity. Restarting these mine projects could necessitate shipments of power generation equipment, heavy machinery and other project cargo in the near term, while mine operations and production could result in ongoing shipments of minerals and maintenance supplies. Over $11 billion in mining projects were reactivated in November following Mexican federal policy changes related to the approval of environmental and water permits needed for the projects to move forward. The mining projects are focused in the Mexican states of Zacatecas, Sonora, Chihuahua and Durango. Mexico is a key global producer of gold, copper, zinc and critical minerals. Fernando Aboitiz, head of the Coordination Unit for Extractive Industries at Mexico’s Ministry of Economy, told attendees at the International Mining Convention 2025 in Acapulco in November that 110 of 176 previously blocked permits in the mining sector have been approved so far, leaving 66 still pending. Aboitiz said the backlog could be cleared by mid-2026. According to the latest data from Mexican industry association Cámara Minera de Mexico (CAMIMEX), there were 574 mining projects in 30 states in Mexico in 2024. Of those, 225 were in the exploration phase, another 225 were in the production phase, 27 were in development, 85 were suspended, and 12 were in the closure phase. ‘Sustained surge’ in cargo expected Juan Ignacio Lopez, CEO of King Ocean Gulf Alliance LLC (KOGA), a Houston-based multipurpose carrier that transports cargoes including mining supplies, steel, bulk chemicals, power generation equipment, and heavy machinery, told the Journal of Commerce that he anticipates growth in both short- and long-term cargo activity as Mexico’s mining activity picks up. “The good thing about a mining boom is that it creates a sustained surge in breakbulk and project cargo demands,” he said. Constructing these mines will require significant amounts of structural steel, heavy equipment for processing and excavating, and power generation equipment for the plants that supply power to the mines, Lopez said. “For us in particular, I think we’ll see increased moves of large mining equipment — from the US, from Brazil, Columbia and Panama — and higher volumes of cargo moving through the main Mexican ports for mining,” he said, citing the ports of Altamira and Veracruz along the Gulf and Manzanillo on the Pacific. Once the mines begin operations, Lopez expects to see more outbound shipments of minerals and other commodities. “That will also allow us to secure some contracts that will tie us to these mines and the suppliers, and to have a regular flow of those cargo movements between the Americas and into and out of Mexico,” he said. The mines will need to consistently import consumables to operate, Lopez said. That includes regularly replacing trucks, tires and spare parts for heavy equipment, while coal-burning power plants will require continuous shipments of coal and other supplies. “Those are things we’ll continuously move while the mine is working,” he said. As the mines produce minerals and other commodities, that output will need to be transported. “That creates an opportunity for carriers to move thousands of tons of minerals coming out of those mines,” Lopez said. Before mining activity picks up, carriers will need to prepare for the mines’ long-term cargo needs by securing regular sailings into and out of Mexico, Lopez said. That’s because whereas mine construction will produce enough project cargo and heavy equipment to fill up ships in the short term, sustaining operational needs and production output will require smaller shipments going to and from these mines. “Those are not volumes that can justify an entire ship. So you want to start looking for base cargoes that will put you in Mexico with certain regularity,” Lopez said, adding that KOGA already has regular customers in Mexico that ship other commodities. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Policy shift clears way for surge in Mexican mining projects, cargo activity

<div class="phx-topic abstract-wrapper">The ubiquity of WiseTech’s flagship platform in the forwarding market has placed a target on its back — one that grew larger with a significant change last week in how it prices its product.</div>

The ubiquity of WiseTech’s flagship platform in the forwarding market has placed a target on its back — one that grew larger with a significant change last week in how it prices its product.

<div class="phx-topic">The number of complaints from forwarders about <a href="https://www.joc.com/article/wisetech-pricing-change-tests-shippers-willingness-to-absorb-tech-costs-6127788">last week’s pricing model change</a> by software provider WiseTech Global is an indication that the company’s flagship product has reached a level of market penetration that many technology companies can only dream of. There’s a saying in technology circles that software companies want their products to be so successful that everyone grumbles about them. That scenario generally only occurs when a product is so ubiquitous that it’s hard to envision an industry using anything else. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6133280_0.1.jpg"></img></div>CargoWise occupies that place in the world of forwarding. Simply put, most forwarders of any size and scale are using CargoWise for something, whether it be back-office accounting, transportation management, trade compliance or some mix of all three. By some estimates, CargoWise has as much as a 70% share of the forwarding software market, dwarfing the market share that even the largest forwarder, DSV (a current CargoWise customer) has over the logistics industry. Which means that WiseTech Global, with a $16 billion market capitalization, has a more dominant position in its market than its largest customer — with a $60 billion market cap – has in its market. That explains, in part, why something as seemingly banal as a change in the way WiseTech prices its product has created such a furor. Over the past three decades, a small software provider to Australian forwarders has morphed into a global technology powerhouse, a brand everyone loves to hate, because so many people must use its products. WiseTech’s fortress is, in part, built around a string of acquisitions of country-specific customs software vendors it made over the past dozen years. Those acquisitions give WiseTech direct connections to customs authorities that its competitors mostly lack, allowing its customers to remain compliant in a range of export and import markets. The importance of this network of customs capabilities can’t be understated — without it, forwarders struggle to help their customers clear regulatory authorities in key markets. That, along with general ledger and accounting functions upon which many forwarders base their operations, creates a scenario that makes it difficult for forwarders to switch to other solutions. As one forwarder put it to the Journal of Commerce: “It would be like ripping out a person’s circulatory system while the person was still alive.” <h3>No meaningful competition </h3>There is more to WiseTech’s dominance than its own ascent. A number of forwarding software vendors have, over the years, had designs encroaching on WiseTech’s turf. The list is not long, but it includes more than a dozen names, from sizable incumbent rivals such as Descartes, Softlink and Magaya, to upstarts that emerged in the past decade, including GoFreight and NewAge, to even newer entrants such as FreightSuite and Clear.ai. In addition, there are a number of regional providers that tend to focus on forwarders in their geographic market, most notably Riege in Germany. All of those providers collectively have failed to alter WiseTech’s trajectory, even as concerns grew from customers over WiseTech’s annual price increases and its sluggishness in integrating the products from its acquisitions. A new dimension to those concerns arose <a href="https://www.joc.com/article/wisetech-makes-2-billion-gamble-on-overturning-complicated-software-history-6013221">this past May when WiseTech made its biggest ever acquisition</a>, a $2.1 billion deal for E2open, a logistics software vendor that catered primarily to shippers. That enabled WiseTech to offer products directly to the customers of its core CargoWise users. Coupled with the upheaval from the pricing change, and an expectation from most CargoWise customers that the new pricing model would raise technology costs above the normal annual price increases, fully leveraging E2open would seemingly force forwarders to reconsider their use of CargoWise, if that is truly an option. For many, it won’t be. And so, if the anger around the pricing change model eventually passes without a wholesale loss of its customer base, that will be a sign that WiseTech has indeed reached escape velocity, and that the forwarding world is more dependent on the software provider than it had believed. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

The number of complaints from forwarders about last week’s pricing model change by software provider WiseTech Global is an indication that the company’s flagship product has reached a level of market penetration that many technology companies can only dream of. There’s a saying in technology circles that software companies want their products to be so successful that everyone grumbles about them. That scenario generally only occurs when a product is so ubiquitous that it’s hard to envision an industry using anything else. CargoWise occupies that place in the world of forwarding. Simply put, most forwarders of any size and scale are using CargoWise for something, whether it be back-office accounting, transportation management, trade compliance or some mix of all three. By some estimates, CargoWise has as much as a 70% share of the forwarding software market, dwarfing the market share that even the largest forwarder, DSV (a current CargoWise customer) has over the logistics industry. Which means that WiseTech Global, with a $16 billion market capitalization, has a more dominant position in its market than its largest customer — with a $60 billion market cap – has in its market. That explains, in part, why something as seemingly banal as a change in the way WiseTech prices its product has created such a furor. Over the past three decades, a small software provider to Australian forwarders has morphed into a global technology powerhouse, a brand everyone loves to hate, because so many people must use its products. WiseTech’s fortress is, in part, built around a string of acquisitions of country-specific customs software vendors it made over the past dozen years. Those acquisitions give WiseTech direct connections to customs authorities that its competitors mostly lack, allowing its customers to remain compliant in a range of export and import markets. The importance of this network of customs capabilities can’t be understated — without it, forwarders struggle to help their customers clear regulatory authorities in key markets. That, along with general ledger and accounting functions upon which many forwarders base their operations, creates a scenario that makes it difficult for forwarders to switch to other solutions. As one forwarder put it to the Journal of Commerce: “It would be like ripping out a person’s circulatory system while the person was still alive.” No meaningful competition There is more to WiseTech’s dominance than its own ascent. A number of forwarding software vendors have, over the years, had designs encroaching on WiseTech’s turf. The list is not long, but it includes more than a dozen names, from sizable incumbent rivals such as Descartes, Softlink and Magaya, to upstarts that emerged in the past decade, including GoFreight and NewAge, to even newer entrants such as FreightSuite and Clear.ai. In addition, there are a number of regional providers that tend to focus on forwarders in their geographic market, most notably Riege in Germany. All of those providers collectively have failed to alter WiseTech’s trajectory, even as concerns grew from customers over WiseTech’s annual price increases and its sluggishness in integrating the products from its acquisitions. A new dimension to those concerns arose this past May when WiseTech made its biggest ever acquisition , a $2.1 billion deal for E2open, a logistics software vendor that catered primarily to shippers. That enabled WiseTech to offer products directly to the customers of its core CargoWise users. Coupled with the upheaval from the pricing change, and an expectation from most CargoWise customers that the new pricing model would raise technology costs above the normal annual price increases, fully leveraging E2open would seemingly force forwarders to reconsider their use of CargoWise, if that is truly an option. For many, it won’t be. And so, if the anger around the pricing change model eventually passes without a wholesale loss of its customer base, that will be a sign that WiseTech has indeed reached escape velocity, and that the forwarding world is more dependent on the software provider than it had believed. Contact Eric Johnson at eric.johnson@spglobal.com .

CargoWise’s pricing model change could mark final milestone in market ascent

<div class="phx-topic abstract-wrapper">The carrier this week said a new service it is launching is “designed to enhance reliability and significantly improve transit times” between US Gulf ports, Central America and the Caribbean.</div>

The carrier this week said a new service it is launching is “designed to enhance reliability and significantly improve transit times” between US Gulf ports, Central America and the Caribbean.

<div class="phx-topic">Seaboard Marine is revamping its US Gulf Coast network to consolidate port calls on its short-sea services. The move comes as US trade with Central America remains elevated but flat since 2022 and faces new changes under the Trump administration. Seaboard this week said that it will launch a new Gulf service “designed to enhance reliability and significantly improve transit times” between US Gulf ports, Central America and the Caribbean. The new service’s rotation includes Houston and New Orleans, while its southern rotation includes Honduras, Guatemala, Kingston, Colombia, Panama and Costa Rica. Seaboard already offered two services from Houston to northern and southern Central America, a separate service between Houston and Kingston and a Central America service from New Orleans, according to its last service guide. Seaboard did not respond to a request for comment about whether the new service affects the other services. <h3>CAFTA play </h3>The new Gulf service largely covers countries under the Central America Free Trade Agreement (CAFTA), which was implemented beginning in 2006 and updated in 2009 to include the Dominican Republic. The trade pact initially lowered tariffs on US exports to the participating nations, with further reductions throughout the course of the agreement. US exports to CAFTA-DR countries peaked at $4.6 billion in June 2022 and were at $4.4 billion this past March, when US imports from member countries hit a new high of $3.8 billion, according to Census Bureau data. The Trump administration this year included CAFTA members on the list of countries hit by the 10% reciprocal tariffs announced in April, with exemptions made for goods covered under CAFTA. Most of those countries negotiated subsequent deals as of November to avoid the new tariffs. Nicaragua, however, faces the loss of its CAFTA exemptions over the next two years due to a US Trade Representative action citing the country’s human rights and labor policies. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Seaboard Marine is revamping its US Gulf Coast network to consolidate port calls on its short-sea services. The move comes as US trade with Central America remains elevated but flat since 2022 and faces new changes under the Trump administration. Seaboard this week said that it will launch a new Gulf service “designed to enhance reliability and significantly improve transit times” between US Gulf ports, Central America and the Caribbean. The new service’s rotation includes Houston and New Orleans, while its southern rotation includes Honduras, Guatemala, Kingston, Colombia, Panama and Costa Rica. Seaboard already offered two services from Houston to northern and southern Central America, a separate service between Houston and Kingston and a Central America service from New Orleans, according to its last service guide. Seaboard did not respond to a request for comment about whether the new service affects the other services. CAFTA play The new Gulf service largely covers countries under the Central America Free Trade Agreement (CAFTA), which was implemented beginning in 2006 and updated in 2009 to include the Dominican Republic. The trade pact initially lowered tariffs on US exports to the participating nations, with further reductions throughout the course of the agreement. US exports to CAFTA-DR countries peaked at $4.6 billion in June 2022 and were at $4.4 billion this past March, when US imports from member countries hit a new high of $3.8 billion, according to Census Bureau data. The Trump administration this year included CAFTA members on the list of countries hit by the 10% reciprocal tariffs announced in April, with exemptions made for goods covered under CAFTA. Most of those countries negotiated subsequent deals as of November to avoid the new tariffs. Nicaragua, however, faces the loss of its CAFTA exemptions over the next two years due to a US Trade Representative action citing the country’s human rights and labor policies. Contact Michael Angell at michael.angell@spglobal.com .

Seaboard Marine revamps Gulf service to combine calls in Central America

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