<div class="phx-topic abstract-wrapper">The volume of containers handled by the Port of Marseilles Fos grew 14 percent in the first half year year-over-year, while the twin ports&amp;rsquo; overall tonnage fell because of shrinking oil volume.&lt;</div>

The volume of containers handled by the Port of Marseilles Fos grew 14 percent in the first half year year-over-year, while the twin ports&rsquo; overall tonnage fell because of shrinking oil volume.<

<div>The volume of containers handled by the Port of Marseilles Fos grew 14 percent in the first half year year-over-year, while the twin ports&amp;rsquo; overall tonnage fell because of shrinking oil volume.The port&amp;rsquo;s supervisory board announced the selection of a consortium of four companies to develop and operate a combined transport hub alongside the Med Europe container terminal near the Marseilles harbor.Container throughout reached 520,132 20-foot equivalent units, fueled by a 58 percent jump in trade with the Americas, a 10 percent increase in Mediterranean trade and 8.6 percent in trade with Asia.Container volume at the Fos container terminals rose...

The volume of containers handled by the Port of Marseilles Fos grew 14 percent in the first half year year-over-year, while the twin ports&rsquo; overall tonnage fell because of shrinking oil volume. The port&rsquo;s supervisory board announced the selection of a consortium of four companies to develop and operate a combined transport hub alongside the Med Europe container terminal near the Marseilles harbor. Container throughout reached 520,132 20-foot equivalent units, fueled by a 58 percent jump in trade with the Americas, a 10 percent increase in Mediterranean trade and 8.6 percent in trade with Asia. Container volume at the Fos container terminals rose 18 percent to 400,000 TEUs, and the Marseilles terminal volume increased 2 percent to 120,000 TEUs. Following a request for bids, the port agency awarded the transport hub contract to a group consisting of Progenor, a Credit Agricole subsidiary specializing in multimodal platform projects; and three of the port&rsquo;s established transport providers &mdash; CMA Rail, T3M and SNCF Geodis subsidiary Naviland Cargo. The facility, which has an estimated cost of $73 million, will provide a single rail-road interface that serves Mediterranean- Europe container trades and also traffic displaced from a smaller combined transport terminal that is being redeveloped under the Euromediterranee urban renovation scheme. The new hub will be able to handle 150,000 containers annually, doubling capacity for railborne traffic in the Marseilles port zone and helping to reduce the current 85 percent balance of containers transported by road. Investment in the 25-acre site will cover the lengthening of rail lines, road improvements, construction of a container depot and the purchase of railhead gantry cranes. Negotiations on co-financing and the operating agreement are under way and due to be completed by the end of the year. Contact Peter T. Leach at pleach@joc.com. Follow him on Twitter @petertleach.

Forwarding

Port News

Marseilles Container Volume Grows 14 Percent

<div class="phx-topic abstract-wrapper">Tender season is a time when shippers traditionally look to switch forwarders, so signing them to new contracts will be the real test of the DSV-DB Schenker integration, DSV CFO Michael Ebbe says.</div>

Tender season is a time when shippers traditionally look to switch forwarders, so signing them to new contracts will be the real test of the DSV-DB Schenker integration, DSV CFO Michael Ebbe says.

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<div class="phx-topic">DSV said Thursday it is stepping up efforts to retain its customer base amid the integration of DB Schenker into its global network as ocean tender season approaches and rival Kuehne + Nagel begins to circle. Cargo owners will soon begin to negotiate Asia–Europe contracts for next year, with the annual service contract talks on the trans-Pacific heating up in March. It is a time when shippers traditionally switch forwarders, so signing them to new contracts will be the real test of the DSV-DB Schenker integration, according to DSV CFO Michael Ebbe. “All the competition is focusing on us right now, but we are the market leaders, and we also did that when we were chasing,” Ebbe told analysts during a third-quarter earnings call. “We'd see quite some attrition by now in a normal integration, which we're not seeing, but the tender season will be the test.” At $16.25 billion, DB Schenker is Denmark-based DSV’s largest acquisition by a huge margin, after having previously taken over <a href="https://www.joc.com/article/size-equals-value-in-fragmented-market-dsvs-andersen-5248808">Agility’s Global Integrated Logistics (GIL) in 2021 for $4.2 billion</a>, <a href="https://www.joc.com/article/newly-combined-dsv-panalpina-targets-trans-pacific-trade-5226703">Panalpina in 2019 for $4.6 billion</a> and <a href="https://www.joc.com/article/dsv-buys-uti-for-135-billion-5205537">UTi in 2015 for $1.35 billion</a>. While exact figures are not available, DSV has previously acknowledged that following the Panalpina and GIL acquisitions, there were some large customer losses to rivals. “Of the customers that we have longer-term agreements with, it's going to come when we have the freight negotiations, basically for the renewal of the contracts, and that's typically happening into the new year,” Ebbe said. “We must make it through the tender season, and then we can really start to focus on the growth.” But also waiting for ocean tender season is rival Kuehne + Nagel, and the Swiss-based forwarder claimed during its own Q3 call Thursday to have already made inroads into DSV’s air freight customer base. “I can confirm we have taken advantage of that merger in air freight and it has benefited us,” K + N CEO Stefan Paul told analysts. Paul said ocean freight came with two cargo request for quotation (RFQ) cycles while air freight shippers decided on a monthly or quarterly basis. “The share of wallet has moved much quicker on the air freight business where the purchasing guidance is more obvious than in sea freight, but that should come in the next RFQ cycle,” he said. <h3>Global headwinds hit forwarder results </h3>Both DSV and Kuehne + Nagel in their Q3 results highlighted significant global headwinds fanned by US tariffs and geopolitics. Boosted by DB Schenker business, DSV’s Q3 revenue reached $11.7 billion, up 63% year over year, while gross profit increased 76% to $3 billion. Earnings before interest and taxes (EBIT) were up 23% at $842 million, while net profit of $335 million was down 24% year over year. Volume became increasingly volatile during the third quarter, particularly in ocean freight. Although overall volume was up 52% at just over 1 million TEUs, 404,000 TEUs of that was contributed by DB Schenker. Organic volume that excluded Schenker was down 5% year over year. In air freight, volume grew 64% in the third quarter to 579,000 tonnes, with DB Schenker contributing 232,000 tonnes. Organic volume was flat. DSV reiterated that expected synergies from DB Schenker would be around $1.4 billion by the end of 2028, with an expected financial cost of around $124 million for the full-year 2025 based on the assumption that 30% of the integration will be completed by year-end. DSV has lowered the top range of its full-year profit expectation from $3.34 billion to $3.19 billion but maintained its lower EBIT level at $3.05 billion. <h3>K+N to slash jobs as yield pressure grows </h3>Kuehne + Nagel also lowered its EBIT forecast, and now expects profit of $1.6 billion in 2025, down from the previous expectation of just over $2 billion. The forwarder said overcapacity in the ocean trade, negative currency effects and a drop in volume in the third quarter were placing heavy pressure on air and ocean yields. Third-quarter revenue of $7.6 billion was down 7% year over year, EBIT of $358 million declined 37% and net profit was down 36% at $259 million. K + N handled 1.1 million TEUs in the third quarter, flat compared to the same period last year. But the excess ocean capacity dragged down gross profit per TEU by 15% to $688. In air freight, the forwarder handled 564,000 tonnes, up 7% year over year, although gross profit per 100 kilograms fell 13% to $90. Kuehne + Nagel aims to mitigate its declining profitability through cost cuts of $251 million that will see between 1,000 and 1,500 jobs lost as the forwarder increases automation and digitalization across its global network. “Challenging external factors are forcing us to sustainably and permanently improve our efficiency and performance culture,” Paul noted. “With the launch of group-wide cost reduction measures, we are now taking action to safeguard our cost base.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

DSV said Thursday it is stepping up efforts to retain its customer base amid the integration of DB Schenker into its global network as ocean tender season approaches and rival Kuehne + Nagel begins to circle. Cargo owners will soon begin to negotiate Asia–Europe contracts for next year, with the annual service contract talks on the trans-Pacific heating up in March. It is a time when shippers traditionally switch forwarders, so signing them to new contracts will be the real test of the DSV-DB Schenker integration, according to DSV CFO Michael Ebbe. “All the competition is focusing on us right now, but we are the market leaders, and we also did that when we were chasing,” Ebbe told analysts during a third-quarter earnings call. “We'd see quite some attrition by now in a normal integration, which we're not seeing, but the tender season will be the test.” At $16.25 billion, DB Schenker is Denmark-based DSV’s largest acquisition by a huge margin, after having previously taken over Agility’s Global Integrated Logistics (GIL) in 2021 for $4.2 billion , Panalpina in 2019 for $4.6 billion and UTi in 2015 for $1.35 billion . While exact figures are not available, DSV has previously acknowledged that following the Panalpina and GIL acquisitions, there were some large customer losses to rivals. “Of the customers that we have longer-term agreements with, it's going to come when we have the freight negotiations, basically for the renewal of the contracts, and that's typically happening into the new year,” Ebbe said. “We must make it through the tender season, and then we can really start to focus on the growth.” But also waiting for ocean tender season is rival Kuehne + Nagel, and the Swiss-based forwarder claimed during its own Q3 call Thursday to have already made inroads into DSV’s air freight customer base. “I can confirm we have taken advantage of that merger in air freight and it has benefited us,” K + N CEO Stefan Paul told analysts. Paul said ocean freight came with two cargo request for quotation (RFQ) cycles while air freight shippers decided on a monthly or quarterly basis. “The share of wallet has moved much quicker on the air freight business where the purchasing guidance is more obvious than in sea freight, but that should come in the next RFQ cycle,” he said. Global headwinds hit forwarder results Both DSV and Kuehne + Nagel in their Q3 results highlighted significant global headwinds fanned by US tariffs and geopolitics. Boosted by DB Schenker business, DSV’s Q3 revenue reached $11.7 billion, up 63% year over year, while gross profit increased 76% to $3 billion. Earnings before interest and taxes (EBIT) were up 23% at $842 million, while net profit of $335 million was down 24% year over year. Volume became increasingly volatile during the third quarter, particularly in ocean freight. Although overall volume was up 52% at just over 1 million TEUs, 404,000 TEUs of that was contributed by DB Schenker. Organic volume that excluded Schenker was down 5% year over year. In air freight, volume grew 64% in the third quarter to 579,000 tonnes, with DB Schenker contributing 232,000 tonnes. Organic volume was flat. DSV reiterated that expected synergies from DB Schenker would be around $1.4 billion by the end of 2028, with an expected financial cost of around $124 million for the full-year 2025 based on the assumption that 30% of the integration will be completed by year-end. DSV has lowered the top range of its full-year profit expectation from $3.34 billion to $3.19 billion but maintained its lower EBIT level at $3.05 billion. K+N to slash jobs as yield pressure grows Kuehne + Nagel also lowered its EBIT forecast, and now expects profit of $1.6 billion in 2025, down from the previous expectation of just over $2 billion. The forwarder said overcapacity in the ocean trade, negative currency effects and a drop in volume in the third quarter were placing heavy pressure on air and ocean yields. Third-quarter revenue of $7.6 billion was down 7% year over year, EBIT of $358 million declined 37% and net profit was down 36% at $259 million. K + N handled 1.1 million TEUs in the third quarter, flat compared to the same period last year. But the excess ocean capacity dragged down gross profit per TEU by 15% to $688. In air freight, the forwarder handled 564,000 tonnes, up 7% year over year, although gross profit per 100 kilograms fell 13% to $90. Kuehne + Nagel aims to mitigate its declining profitability through cost cuts of $251 million that will see between 1,000 and 1,500 jobs lost as the forwarder increases automation and digitalization across its global network. “Challenging external factors are forcing us to sustainably and permanently improve our efficiency and performance culture,” Paul noted. “With the launch of group-wide cost reduction measures, we are now taking action to safeguard our cost base.” Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Forwarder News

Air Cargo

Container Shipping News

Maritime

Rival Kuehne + Nagel circles DSV customers as ocean tender season nears

<div class="phx-topic abstract-wrapper">Average spot rates from West India to the US East Coast have dropped by $400 to $500 per container over the last three weeks, according to new data from freight forwarders. </div>

Average spot rates from West India to the US East Coast have dropped by $400 to $500 per container over the last three weeks, according to new data from freight forwarders.

<div class="phx-topic">Ocean rates on the India-US trades continue to weaken as carriers contend with lower westbound bookings in a tariff-squeezed market environment. Average spot rates from West India to the US East Coast have dropped by $400 to $500 per container over the last three weeks, according to new data from freight forwarders. Sources have pegged rates from Nhava Sheva to New York at between $1,500 and $1,600 per FEU, down from $1,900 to $2,100 quoted by the lead operators on the trade at the end of September. Platts, a sister company of the Journal of Commerce within S&amp;P Global, put India-USEC spot rates at $1,550 per FEU as of Oct. 22, a 3% decline week on week. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="56199e2b-5df4-468f-a149-b18ae7c32e51"></dynamic-object></div>“Even many of the bigger European mainliners, typically at a higher price mark than cargo-hungry Asian liners, have leveled off to fill their vessels,” said a Mumbai-based forwarding executive who didn’t want to be identified. <h3>Tariffs hit volumes, too </h3>Meanwhile, the full impact of a 50% tariff on Indian imports into the US is now beginning to show up in trade data. To illustrate, Indian ready-made garment (RMG) exports, which have traditionally had the highest sourcing share from the US market, dropped sharply in September, down 10% by value year over year. That decline followed a modest 2.5% decrease in August. The US accounted for about 33% of the total Indian RMG export trade in 2024, data shows. The 50% US tariff on Indian exports became effective Aug. 27, making September the first month to capture the enormity of transactional trade dynamics rippling through supply chains. Data from PIERS, a sister product of the Journal of Commerce, shows the US East Coast imported 87,940 TEUs from India in September, down from 93,290 TEUs in August. Carrier sources generally agree that there has been a volume drop of between 30% and 35% since the tariff blow. While most larger US retailers have kept Indian buying generally steady, midsized buyers have cut back on their orders, sources say. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ae1df54b-4003-46b5-a8c3-e0d35707e941"></dynamic-object></div>“The India-USEC trade has been negatively affected due to the 50% tariff levy,” Sanjay Tejwani, CEO of consulting firm 365 Logistics, told the Journal of Commerce. “This has adversely impacted vessel utilization and freight rates on this trade lane, and ocean carriers are trying to stabilize the freight market via blank sailings.” For October, forwarders have reported five void calls between CMA CGM’s “Indamex” and Ocean Network Express (ONE)’s WIN services. “The tariffs are weighing on (India-US) container volumes, but it’s hoped that a bilateral trade deal will emerge in the near future, setting a more vibrant market with tariffs lowered to something like 15% to 25%,” said Daniel Krassenstein, global supply chain director of US-based industrial packaging manufacturer Procon Pacific. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Ocean rates on the India-US trades continue to weaken as carriers contend with lower westbound bookings in a tariff-squeezed market environment. Average spot rates from West India to the US East Coast have dropped by $400 to $500 per container over the last three weeks, according to new data from freight forwarders. Sources have pegged rates from Nhava Sheva to New York at between $1,500 and $1,600 per FEU, down from $1,900 to $2,100 quoted by the lead operators on the trade at the end of September. Platts, a sister company of the Journal of Commerce within S&P Global, put India-USEC spot rates at $1,550 per FEU as of Oct. 22, a 3% decline week on week. “Even many of the bigger European mainliners, typically at a higher price mark than cargo-hungry Asian liners, have leveled off to fill their vessels,” said a Mumbai-based forwarding executive who didn’t want to be identified. Tariffs hit volumes, too Meanwhile, the full impact of a 50% tariff on Indian imports into the US is now beginning to show up in trade data. To illustrate, Indian ready-made garment (RMG) exports, which have traditionally had the highest sourcing share from the US market, dropped sharply in September, down 10% by value year over year. That decline followed a modest 2.5% decrease in August. The US accounted for about 33% of the total Indian RMG export trade in 2024, data shows. The 50% US tariff on Indian exports became effective Aug. 27, making September the first month to capture the enormity of transactional trade dynamics rippling through supply chains. Data from PIERS, a sister product of the Journal of Commerce, shows the US East Coast imported 87,940 TEUs from India in September, down from 93,290 TEUs in August. Carrier sources generally agree that there has been a volume drop of between 30% and 35% since the tariff blow. While most larger US retailers have kept Indian buying generally steady, midsized buyers have cut back on their orders, sources say. “The India-USEC trade has been negatively affected due to the 50% tariff levy,” Sanjay Tejwani, CEO of consulting firm 365 Logistics, told the Journal of Commerce. “This has adversely impacted vessel utilization and freight rates on this trade lane, and ocean carriers are trying to stabilize the freight market via blank sailings.” For October, forwarders have reported five void calls between CMA CGM’s “Indamex” and Ocean Network Express (ONE)’s WIN services. “The tariffs are weighing on (India-US) container volumes, but it’s hoped that a bilateral trade deal will emerge in the near future, setting a more vibrant market with tariffs lowered to something like 15% to 25%,” said Daniel Krassenstein, global supply chain director of US-based industrial packaging manufacturer Procon Pacific. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

Trans-Pacific

No halt to rate declines on India-US trade amid tariff headwinds

<div class="phx-topic abstract-wrapper">The Trump administration’s two nominees to fill open positions on the Federal Maritime Commission say ongoing enforcement of existing law can help bring more efficiency to commercial shipping. </div>

The Trump administration’s two nominees to fill open positions on the Federal Maritime Commission say ongoing enforcement of existing law can help bring more efficiency to commercial shipping.

<div class="phx-topic">President Donald Trump’s two nominees to the Federal Maritime Commission (FMC) said Wednesday a competitive, open market should attract more investment to the sector and enhance its efficiency. That came as Trump’s pick to head up the US Maritime Administration (Marad) said the federal government needs to put more of its weight behind the industry if the US hopes to dent China’s shipping dominance. During confirmation hearings, Robert Harvey, one of <a href="https://www.joc.com/article/trump-taps-two-floridians-to-serve-on-the-fmc-6075573">Trump’s two nominees to the FMC</a>, told the Senate’s Commerce, Science, and Transportation Committee he wants the agency to continue ensuring fair treatment of US shippers by close monitoring of ocean carriers and their alliance agreements. Harvey cited his previous role as an attorney involved in securities litigation and financial regulation as necessary for ensuring carriers comply with US maritime law. “Nothing gets an industry member’s attention like an enforcement action,” he said. “We’ll be watching the alliances to make sure there are not any anticompetitive practices.” Laura DiBella, Trump’s other nominee to the FMC, said the agency can’t change the fact that about a dozen global ocean carriers handle almost all US cargo. But the FMC can make sure US shippers are being treated fairly. “The carriers make the market,” DiBella said. “However, we need to provide some good oversight.” The nominees did not offer any suggestions about further enhancements to US maritime law beyond the scope of the Ocean Shipping Reform Act of 2022 (OSRA-22). But in response to questions about a key aspect of OSRA-22 — detention and demurrage practices — DiBella said the agency could do more about “uncovering efficiencies and why cargo is delayed.” Harvey, who also served on Florida’s state-backed investment agency, said US maritime law should be used to develop solutions for cargo delays and supply chain bottlenecks. “I want to ensure [that] regulations encourage innovation,” he said. “If we can create fair and competitive markets, private capital will flow to fix these problems.” <h3>‘Archaic’ US ports </h3>Along with the FMC picks, Stephen Carmel, Trump’s nominee to head Marad, spoke about the need to invest more in the US maritime industry. In response to a question from Sen. Ted Cruz (R — Texas) about why “archaic” American ports lag the productivity of their Asian and European counterparts, the former Maersk executive said US ports need to invest more in technology. “There’s no question about it,” Carmel said. “We need to be using technology to leverage our labor and allow them to be more productive. We should use tech not to displace jobs, but to enhance them.” Even worse than US ports, though, are the US shipbuilding and merchant marine industries, both of which Carmel said are on a “lifeline” with no clear path to countering China’s maritime industries. He said the lack of opportunities for US merchant mariners in international trade means few people want to join the industry and keep it growing. “We need to do a better job of generating cargo [for a domestic fleet],” Carmel said. “It’s very difficult to attract people into industry if they’re afraid that in a year or two the ship or job they signed on is not going to be there.” Carmel, a former merchant mariner, said he supports the bipartisan <a href="https://www.joc.com/article/legislation-aims-to-mandate-rising-share-of-china-imports-on-expanded-us-flag-fleet-5909698">SHIPS for America Act</a> that aims to rebuild domestic shipbuilding through cargo preferences for US-based carriers, adding that government cargoes are not enough to sustain the industry. He also said the maritime security trust fund mentioned in Trump’s April executive order meant to aid US shipbuilding would also go a long way to reviving domestic shipbuilding. “For ships in the international trade, we can’t build them at all,” he said. “We don’t carry our own commerce. We need demand generation.” It’s not known when the Senate will hold confirmation votes on the three nominees. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

President Donald Trump’s two nominees to the Federal Maritime Commission (FMC) said Wednesday a competitive, open market should attract more investment to the sector and enhance its efficiency. That came as Trump’s pick to head up the US Maritime Administration (Marad) said the federal government needs to put more of its weight behind the industry if the US hopes to dent China’s shipping dominance. During confirmation hearings, Robert Harvey, one of Trump’s two nominees to the FMC , told the Senate’s Commerce, Science, and Transportation Committee he wants the agency to continue ensuring fair treatment of US shippers by close monitoring of ocean carriers and their alliance agreements. Harvey cited his previous role as an attorney involved in securities litigation and financial regulation as necessary for ensuring carriers comply with US maritime law. “Nothing gets an industry member’s attention like an enforcement action,” he said. “We’ll be watching the alliances to make sure there are not any anticompetitive practices.” Laura DiBella, Trump’s other nominee to the FMC, said the agency can’t change the fact that about a dozen global ocean carriers handle almost all US cargo. But the FMC can make sure US shippers are being treated fairly. “The carriers make the market,” DiBella said. “However, we need to provide some good oversight.” The nominees did not offer any suggestions about further enhancements to US maritime law beyond the scope of the Ocean Shipping Reform Act of 2022 (OSRA-22). But in response to questions about a key aspect of OSRA-22 — detention and demurrage practices — DiBella said the agency could do more about “uncovering efficiencies and why cargo is delayed.” Harvey, who also served on Florida’s state-backed investment agency, said US maritime law should be used to develop solutions for cargo delays and supply chain bottlenecks. “I want to ensure [that] regulations encourage innovation,” he said. “If we can create fair and competitive markets, private capital will flow to fix these problems.” ‘Archaic’ US ports Along with the FMC picks, Stephen Carmel, Trump’s nominee to head Marad, spoke about the need to invest more in the US maritime industry. In response to a question from Sen. Ted Cruz (R — Texas) about why “archaic” American ports lag the productivity of their Asian and European counterparts, the former Maersk executive said US ports need to invest more in technology. “There’s no question about it,” Carmel said. “We need to be using technology to leverage our labor and allow them to be more productive. We should use tech not to displace jobs, but to enhance them.” Even worse than US ports, though, are the US shipbuilding and merchant marine industries, both of which Carmel said are on a “lifeline” with no clear path to countering China’s maritime industries. He said the lack of opportunities for US merchant mariners in international trade means few people want to join the industry and keep it growing. “We need to do a better job of generating cargo [for a domestic fleet],” Carmel said. “It’s very difficult to attract people into industry if they’re afraid that in a year or two the ship or job they signed on is not going to be there.” Carmel, a former merchant mariner, said he supports the bipartisan SHIPS for America Act that aims to rebuild domestic shipbuilding through cargo preferences for US-based carriers, adding that government cargoes are not enough to sustain the industry. He also said the maritime security trust fund mentioned in Trump’s April executive order meant to aid US shipbuilding would also go a long way to reviving domestic shipbuilding. “For ships in the international trade, we can’t build them at all,” he said. “We don’t carry our own commerce. We need demand generation.” It’s not known when the Senate will hold confirmation votes on the three nominees. Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Transport, Trade and Regulation News

FMC nominees pledge level playing field for US shippers

<div class="phx-topic abstract-wrapper">Some of the largest less-than-truckload carriers are announcing non-contract GRIs, but the state of the freight market argues against substantial rate increases.</div>

Some of the largest less-than-truckload carriers are announcing non-contract GRIs, but the state of the freight market argues against substantial rate increases.

<div class="phx-topic">Whether freight demand is up or down, US less-than-truckload (LTL) carriers are planning to hike pricing in 2026, starting with tariff rates for non-contractual customers. LTL capacity remains lower than before Yellow went out of business in July 2023, and operating costs are rising. But industrial and retail shippers still waiting for a surge in demand for their products are expected to resist significant rate hikes while rethinking transportation choices. That includes moving more LTL freight to less expensive <a href="https://www.joc.com/article/truckload-carriers-capturing-more-ltl-shipments-fedex-freight-6083463">truckload trailers</a>, where possible. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b8bff0bb-e602-4052-88a8-7955d25f97d2"></dynamic-object></div>The two largest US LTL trucking companies — FedEx Freight and Old Dominion Freight Line (ODFL) — have announced average general rate increases (GRIs) of 5.9% and 4.9%, respectively. ODFL’s rate hike takes effect Nov. 3; FedEx Freight’s on Jan. 5. Saia, the sixth-largest US LTL provider as ranked by revenue by SJ Consulting Group, raised its non-contract rates 5.9% on average effective Oct. 1, highlighting the need to reinvest in its network after spending a projected $600 million to $650 million on expansion in 2025. “As we continue to face rising costs across our industry, this rate increase helps offset a portion of inflationary expenses,” Saia CFO Matthew Batteh said in a statement. However, the GRIs only apply to non-contractual tariff rates, used in a minority of LTL transactions, and the increases carriers are calling for are averages. The GRIs also seem to run counter to reports that carriers are offering lower rates to gain freight in key lanes. LTL carriers are “defending their turf in a sea of uncertainty,” Mike Regan, chief relationship officer at TranzAct Technologies, said during the Journal of Commerce <a href="https://www.joc.com/article/inland-25-low-demand-putting-pricing-pressure-on-us-ltl-carriers-6090269">Inland Distribution Conference</a> in Chicago Sept. 29. “We’re seeing carrier pricing behavior that’s irrational.” It may not be surprising, then, that some LTL trucking companies would advance GRIs with one hand and offer rate cuts with another. “It’s all about building efficiency and density,” Mich Fabriga, vice president of LTL pricing at AFS Logistics, said at Inland ’25. <h3>A 17% increase since 2023 </h3>LTL costs to shippers have risen significantly since Yellow, formerly the third-largest US LTL provider, according to SJ Consulting Group, went out of business in July 2023. The US LTL producer price index (PPI) rose nearly 17% from that month through August 2025. In August, the last month for which PPI data is available from the US Bureau of Labor Statistics (BLS), the LTL PPI rose 1.5% from July and 10.5% year over year. The BLS release of September PPI data was suspended by the US government shutdown. The change in the PPI, which represents all-inclusive “selling prices” paid by shippers, is greater than rate increases or improvements in yield reported by carriers, and it’s not clear why. September data, when available, may show a correction. Northeastern regional LTL provider A. Duie Pyle, a privately owned company, said in an email that heavy reliance on “aggressive pricing strategies” by publicly owned LTL carriers led to “notable price degradation” early in the fourth quarter. But Pyle said it expects “more disciplined pricing” as carriers work to protect “service quality.” Carriers that can maintain high-quality service and flexibility will be best positioned going into 2026, the company said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="799271a6-275e-4d6d-b89d-76843dd07721"></dynamic-object></div>AFS Logistics believes LTL pricing still has legs — and it’s still much higher than it was before the COVID-19 pandemic. The TD Cowen/AFS LTL Freight Index is projected at 64.8% in the fourth quarter, a 0.2% decline from the third quarter but a 1.1% year-over-year increase. The index hit a four-year peak of 65.1% in the last quarter. “Even as LTL networks pick up smaller shipments and experience some turnover, carriers have kept a keen eye on profitability and network efficiency,” Fabriga said last week, when TD Cowen and AFS Freight released their fourth-quarter forecast. The AFS index indicates rates per pound are up about 65% from January 2018. “Emphasizing yield rather than volume has proven to be a successful formula for carriers in previous down freight cycles and rates are again proving resilient,” Fabriga said. The price degradation noted by Pyle and rate cuts witnessed by TranzAct may yet prove a temporary tactic designed to keep freight where it’s most needed in LTL networks. Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Whether freight demand is up or down, US less-than-truckload (LTL) carriers are planning to hike pricing in 2026, starting with tariff rates for non-contractual customers. LTL capacity remains lower than before Yellow went out of business in July 2023, and operating costs are rising. But industrial and retail shippers still waiting for a surge in demand for their products are expected to resist significant rate hikes while rethinking transportation choices. That includes moving more LTL freight to less expensive truckload trailers , where possible. The two largest US LTL trucking companies — FedEx Freight and Old Dominion Freight Line (ODFL) — have announced average general rate increases (GRIs) of 5.9% and 4.9%, respectively. ODFL’s rate hike takes effect Nov. 3; FedEx Freight’s on Jan. 5. Saia, the sixth-largest US LTL provider as ranked by revenue by SJ Consulting Group, raised its non-contract rates 5.9% on average effective Oct. 1, highlighting the need to reinvest in its network after spending a projected $600 million to $650 million on expansion in 2025. “As we continue to face rising costs across our industry, this rate increase helps offset a portion of inflationary expenses,” Saia CFO Matthew Batteh said in a statement. However, the GRIs only apply to non-contractual tariff rates, used in a minority of LTL transactions, and the increases carriers are calling for are averages. The GRIs also seem to run counter to reports that carriers are offering lower rates to gain freight in key lanes. LTL carriers are “defending their turf in a sea of uncertainty,” Mike Regan, chief relationship officer at TranzAct Technologies, said during the Journal of Commerce Inland Distribution Conference in Chicago Sept. 29. “We’re seeing carrier pricing behavior that’s irrational.” It may not be surprising, then, that some LTL trucking companies would advance GRIs with one hand and offer rate cuts with another. “It’s all about building efficiency and density,” Mich Fabriga, vice president of LTL pricing at AFS Logistics, said at Inland ’25. A 17% increase since 2023 LTL costs to shippers have risen significantly since Yellow, formerly the third-largest US LTL provider, according to SJ Consulting Group, went out of business in July 2023. The US LTL producer price index (PPI) rose nearly 17% from that month through August 2025. In August, the last month for which PPI data is available from the US Bureau of Labor Statistics (BLS), the LTL PPI rose 1.5% from July and 10.5% year over year. The BLS release of September PPI data was suspended by the US government shutdown. The change in the PPI, which represents all-inclusive “selling prices” paid by shippers, is greater than rate increases or improvements in yield reported by carriers, and it’s not clear why. September data, when available, may show a correction. Northeastern regional LTL provider A. Duie Pyle, a privately owned company, said in an email that heavy reliance on “aggressive pricing strategies” by publicly owned LTL carriers led to “notable price degradation” early in the fourth quarter. But Pyle said it expects “more disciplined pricing” as carriers work to protect “service quality.” Carriers that can maintain high-quality service and flexibility will be best positioned going into 2026, the company said. AFS Logistics believes LTL pricing still has legs — and it’s still much higher than it was before the COVID-19 pandemic. The TD Cowen/AFS LTL Freight Index is projected at 64.8% in the fourth quarter, a 0.2% decline from the third quarter but a 1.1% year-over-year increase. The index hit a four-year peak of 65.1% in the last quarter. “Even as LTL networks pick up smaller shipments and experience some turnover, carriers have kept a keen eye on profitability and network efficiency,” Fabriga said last week, when TD Cowen and AFS Freight released their fourth-quarter forecast. The AFS index indicates rates per pound are up about 65% from January 2018. “Emphasizing yield rather than volume has proven to be a successful formula for carriers in previous down freight cycles and rates are again proving resilient,” Fabriga said. The price degradation noted by Pyle and rate cuts witnessed by TranzAct may yet prove a temporary tactic designed to keep freight where it’s most needed in LTL networks. Contact William B. Cassidy at bill.cassidy@spglobal.com .

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Surface

LTL carriers push general rate hikes despite lackluster US freight demand

<div class="phx-topic abstract-wrapper">One possible explanation for the gain is the softer volumes that were artificially suppressed and shifted in August and September of 2024 due to separate labor-related events, but clarity should come over the next week when market players report third-quarter earnings.</div>

One possible explanation for the gain is the softer volumes that were artificially suppressed and shifted in August and September of 2024 due to separate labor-related events, but clarity should come over the next week when market players report third-quarter earnings.

<div class="phx-topic">Domestic intermodal volumes surged 5.8% in September year over year, according to new data from the Intermodal Association of North America (IANA), an unexpected gain considering cautious end-of-quarter signals from major providers after lackluster volumes in July and August. One possible explanation for the September gain is the softer volumes that were artificially suppressed and shifted in August and September of 2024 due to separate labor events involving Canadian railroads and longshoremen on the US East and Gulf coasts. Data provider RailState estimated that Union Pacific Railroad’s (UP’s) domestic intermodal loads in Southern California rose more than 10% from early July to late September, which could explain some of the results in September. Sources told the Journal of Commerce that two large retailers accelerated third-quarter shipments on UP out of Southern California. The late third-quarter surge this year caused domestic intermodal volumes to rise 2.5% for the full quarter, according to IANA; volumes had been up just 0.7% through August. Flows between the Southwest and Midwest specifically, including the Los Angeles-Chicago and Oakland-Chicago lanes, climbed 6.8% last month compared with September 2024, helping to flip third-quarter volumes on the lane to a 1.4% increase after declining 1.1% through August, the IANA data showed. Backhauls on the same routes jumped 4.6% year over year in September, according to IANA, after declining 3.1% combined through August. <h3>Q3 earnings reports coming </h3>J.B. Hunt Transport Services, the largest US domestic intermodal provider, reported that volumes year over year were down 3% in July, 2% in August and flat in September, with a fair amount of West Coast import cargo having not yet moved through the inland supply chain. Other intermodal executives attending the Journal of Commerce’s Inland Distribution Conference late last month described a muted domestic peak season. “It was much heavier on the international side in July, so we all expected this big surge for domestic, and we didn’t see the pull through or the transloads into domestic containers,” Taylor Harrington, director of intermodal for C.H. Robinson Worldwide, said at the conference on Sept. 30. Clarity on the September figures should arrive in the coming days when Knight-Swift Transportation, UP, Hub Group and Schneider National report their third-quarter earnings. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Domestic intermodal volumes surged 5.8% in September year over year, according to new data from the Intermodal Association of North America (IANA), an unexpected gain considering cautious end-of-quarter signals from major providers after lackluster volumes in July and August. One possible explanation for the September gain is the softer volumes that were artificially suppressed and shifted in August and September of 2024 due to separate labor events involving Canadian railroads and longshoremen on the US East and Gulf coasts. Data provider RailState estimated that Union Pacific Railroad’s (UP’s) domestic intermodal loads in Southern California rose more than 10% from early July to late September, which could explain some of the results in September. Sources told the Journal of Commerce that two large retailers accelerated third-quarter shipments on UP out of Southern California. The late third-quarter surge this year caused domestic intermodal volumes to rise 2.5% for the full quarter, according to IANA; volumes had been up just 0.7% through August. Flows between the Southwest and Midwest specifically, including the Los Angeles-Chicago and Oakland-Chicago lanes, climbed 6.8% last month compared with September 2024, helping to flip third-quarter volumes on the lane to a 1.4% increase after declining 1.1% through August, the IANA data showed. Backhauls on the same routes jumped 4.6% year over year in September, according to IANA, after declining 3.1% combined through August. Q3 earnings reports coming J.B. Hunt Transport Services, the largest US domestic intermodal provider, reported that volumes year over year were down 3% in July, 2% in August and flat in September, with a fair amount of West Coast import cargo having not yet moved through the inland supply chain. Other intermodal executives attending the Journal of Commerce’s Inland Distribution Conference late last month described a muted domestic peak season. “It was much heavier on the international side in July, so we all expected this big surge for domestic, and we didn’t see the pull through or the transloads into domestic containers,” Taylor Harrington, director of intermodal for C.H. Robinson Worldwide, said at the conference on Sept. 30. Clarity on the September figures should arrive in the coming days when Knight-Swift Transportation, UP, Hub Group and Schneider National report their third-quarter earnings. Contact Ari Ashe at ari.ashe@spglobal.com .

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North-American rail

September domestic intermodal volumes show unexpected boost: IANA

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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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