<div class="phx-topic abstract-wrapper"><p>Former members of the Asbestos Claims Facility last Friday announced the formation of a new center t</p></div>

Former members of the Asbestos Claims Facility last Friday announced the formation of a new center t

<div><p>Former members of the Asbestos Claims Facility last Friday announced the formation of a new center to handle injury claims for its members.</p><p></p><p></p><p>The Center for Claims Resolution, based in Princeton, N.J., will replace the embattled Asbestos Claims Facility, which was disbanded Oct. 3.The facility was formed in 1985 with 50 asbestos manufacturers and their insurers as an alternative to the court system. It worked to reduce the costs of defending and settling thousands of health claims against its members.</p><p></p><p></p><p>But disagreements over the way claims should be handled and paid caused some of the larger members to withdraw from the facility....

Former members of the Asbestos Claims Facility last Friday announced the formation of a new center to handle injury claims for its members. The Center for Claims Resolution, based in Princeton, N.J., will replace the embattled Asbestos Claims Facility, which was disbanded Oct. 3.The facility was formed in 1985 with 50 asbestos manufacturers and their insurers as an alternative to the court system. It worked to reduce the costs of defending and settling thousands of health claims against its members. But disagreements over the way claims should be handled and paid caused some of the larger members to withdraw from the facility. Twenty-one companies, all former facility members, will make up the new center. Some of the manufacturers who will now assume responsibility for handling their own claims are: Carey Canada Inc., Celotex Corp., Fibreboard Corp., Pittsburgh Corning Corp., Owens-Illinois Inc. and Owens-Corning Fiberglas Corp. The companies contended that the settlement costs and decision-making power were divided unfairly under a one company-one vote system. The new center will use a weighted formula to allocate settlement assessments and votes. The new center will be funded and operated differently than the old facility. It will not be a continuation of or a successor to the facility, the members stated in a prepared release. Insurance companies will not become members of the center, but they will support the center's operational costs during its first year. While insurers are not members of the center, we wholeheartedly endorse its purposes and are willing to assist in providing sufficient financial support for it to achieve its goals, said John F. Shea Jr., vice president and general counsel at Aetna Life & Casualty Co., a founding member of the facility. Claims resolution will begin immediately, the members said, and the center has begun assembling its senior management, legal and claims-handling staff. Lawrence Fitzpatrick was named chairman, president and chief executive- elect of the center. He was vice president of law and acting chief executive at the Asbestos Claims Facility. Other board members are: Glenn W. Bailey, chairman and president, Keene Corp.; Samuel J. Heyman, chairman and chief executive, GAF Corp.; Emmett W. Hines Jr., director, government relations, Armstrong World Industries Inc.; and Christopher J. McElroy, senior corporate counsel, United States Gypsum Co. Ex-officio board members are: Curtis M. Pontz, senior counsel and assistant secretary, CertainTeed Corp.; and Keith Rayment, who will represent the London insurance market. William R. Jacobi was named treasurer and vice president-elect, claims. He was director of the Asbestos Claims Facility's eastern region claims office. Peter C. Coleman was named secretary of the corporation and vice president-elect, law. He was director of law at the facility. The new center will work to reduce the backlog of asbestos-related personal injury lawsuits, which is estimated at more than 60,000. About 1,000 to 1,200 new claims are being filed each month. With a clearer mission and stronger organizational structure than that of the Asbestos Claims Facility, a smaller and more unified membership and a refined and more flexible method by which to share liability among its members, the center should provide the best opportunity for private industry to address the asbestos crisis constructively and effectively, Mr. Fitzpatrick said.

NEW ASBESTOS CENTER READY TO RESOLVE CLAIMS

<div class="phx-topic abstract-wrapper"><p>The Trump administration’s move against non-English-speaking drivers and non-domiciled commercial driver’s license holders could hit the drayage sector, but only after it trickles down from other parts of the trucking industry, experts say.</p></div>

The Trump administration’s move against non-English-speaking drivers and non-domiciled commercial driver’s license holders could hit the drayage sector, but only after it trickles down from other parts of the trucking industry, experts say.

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<div class="phx-topic"><p>Long Beach, California —Transportation leaders say port drayage truck drivers are unlikely to see an immediate impact on capacity should a recently introduced bill in Congress that would remove potentially thousands of drivers from US roads who may be operating illegally become law. </p><p>Three drayage experts discussed the possible ramifications of the proposed Delilah’s Law and the Trump administration’s crackdown on non-English-speaking drivers and non-domiciled commercial driver’s license (CDL) holders during a panel discussion at the <i>Journal of Commerce</i>’s TPM26 conference on Tuesday. </p><p>Panelists acknowledged the bill in Congress could impact other segments of drayage, including rail drayage, and that it could tighten overall capacity in the trucking industry if more drivers are disqualified from driving because of language-related or other safety issues.  </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177004_0.1.jpg"></img></div><p>Supporters of the bill say it would close loopholes in the CDL process, ensuring that only citizens or legally authorized individuals can operate commercial vehicles.  </p><p>“I think you would see an impact on the rail, the rail area first, certainly like Texas, California, maybe New York, New Jersey, Florida,” said Brian Kobza, chief commercial officer with IMC Logistics. </p><p>Kobza added that the combination of the bill being introduced and the current US Department of Transportation crackdown against drivers it believes are operating illegally or in the country illegally could remove more capacity and ultimately increase rates.  </p><p>“That’s the overall macro, in fact, that we’re positively looking for, [changing] that supply and demand, hopefully raise the rates, and let’s all make some money again,” he said,  </p><p>With regards to the US Department of Transportation crackdown against non-domiciled CDL holders, port drayage trucking companies and drivers could be impacted, but they said the initial impact will likely be regionally focused and not national in its scope and not specifically targeting drayage trucking companies.  </p><p>“I think the largest impact would probably be on the state of California,” said Paul Brashier, vice president of global supply chain at ITS Logistics. “There are certain states that are doing their due diligence on non-[domiciled] and pulling them out. There are certain states that aren’t, California being one of them.”  </p><p>“I don’t think we’re going to have a huge shortage in the very near term of any driver,” said Kobza. “I don’t see it affecting the drayage carriers in the industry.”  </p><p>He noted the truckload and less-than-truckload sectors are feeling the enforcement crackdown to a larger extent, while drayage could eventually be impacted later in the enforcement period.  </p><h3>Hoping for bump in rates </h3><p>With regards to the economic performance of the US drayage industry in 2026, none are forecasting a spectacular year.  </p><p>The three panelists believe rates will creep up this year, in part brought on by a slight increase in consumer demand. </p><p>“At the macro, it’s going to feel just tepid,” said Reed Kidd, CEO of EDRAY Collaborative Port Logistics. “And then, but within each of the verticals and ports and everything else underneath it, it’s going to be, I think, wildly different for different sectors of the business, and those groups that are winning are going to need to figure out how to do that in the market.”  </p><p>Kobza said one thing that would jump start the drayage industry is lower mortgage interest rates, and he cited the recent drop in 30-year fixed rates, which have fallen below 6% for those with good credit.  </p><p>“I’m saying one percent is good growth for 2025 that was without any new housing starts, nothing good in the housing sector at all,” he said. “It was all consumer demand.”  </p><p>Kobza pointed out that housing serves as a multiplier for the economy and trucking.  </p><p>“If you have just a blip up in housing in that market, you’re going to see a nice surge of business for furniture, for the equipment, for anything that’s to do with housing,” he said. “So I think that that’s the equilibrium that might push it up to a positive here [for drayage].” </p><p><i>Contact Dan Ronan at </i><a href="mailto:contactdanronan@gmail.com"><i>contactdanronan@gmail.com</i></a>.</p></div>

Long Beach, California —Transportation leaders say port drayage truck drivers are unlikely to see an immediate impact on capacity should a recently introduced bill in Congress that would remove potentially thousands of drivers from US roads who may be operating illegally become law. Three drayage experts discussed the possible ramifications of the proposed Delilah’s Law and the Trump administration’s crackdown on non-English-speaking drivers and non-domiciled commercial driver’s license (CDL) holders during a panel discussion at the Journal of Commerce’s TPM26 conference on Tuesday. Panelists acknowledged the bill in Congress could impact other segments of drayage, including rail drayage, and that it could tighten overall capacity in the trucking industry if more drivers are disqualified from driving because of language-related or other safety issues. Supporters of the bill say it would close loopholes in the CDL process, ensuring that only citizens or legally authorized individuals can operate commercial vehicles. “I think you would see an impact on the rail, the rail area first, certainly like Texas, California, maybe New York, New Jersey, Florida,” said Brian Kobza, chief commercial officer with IMC Logistics. Kobza added that the combination of the bill being introduced and the current US Department of Transportation crackdown against drivers it believes are operating illegally or in the country illegally could remove more capacity and ultimately increase rates. “That’s the overall macro, in fact, that we’re positively looking for, [changing] that supply and demand, hopefully raise the rates, and let’s all make some money again,” he said, With regards to the US Department of Transportation crackdown against non-domiciled CDL holders, port drayage trucking companies and drivers could be impacted, but they said the initial impact will likely be regionally focused and not national in its scope and not specifically targeting drayage trucking companies. “I think the largest impact would probably be on the state of California,” said Paul Brashier, vice president of global supply chain at ITS Logistics. “There are certain states that are doing their due diligence on non-[domiciled] and pulling them out. There are certain states that aren’t, California being one of them.” “I don’t think we’re going to have a huge shortage in the very near term of any driver,” said Kobza. “I don’t see it affecting the drayage carriers in the industry.” He noted the truckload and less-than-truckload sectors are feeling the enforcement crackdown to a larger extent, while drayage could eventually be impacted later in the enforcement period. Hoping for bump in rates With regards to the economic performance of the US drayage industry in 2026, none are forecasting a spectacular year. The three panelists believe rates will creep up this year, in part brought on by a slight increase in consumer demand. “At the macro, it’s going to feel just tepid,” said Reed Kidd, CEO of EDRAY Collaborative Port Logistics. “And then, but within each of the verticals and ports and everything else underneath it, it’s going to be, I think, wildly different for different sectors of the business, and those groups that are winning are going to need to figure out how to do that in the market.” Kobza said one thing that would jump start the drayage industry is lower mortgage interest rates, and he cited the recent drop in 30-year fixed rates, which have fallen below 6% for those with good credit. “I’m saying one percent is good growth for 2025 that was without any new housing starts, nothing good in the housing sector at all,” he said. “It was all consumer demand.” Kobza pointed out that housing serves as a multiplier for the economy and trucking. “If you have just a blip up in housing in that market, you’re going to see a nice surge of business for furniture, for the equipment, for anything that’s to do with housing,” he said. “So I think that that’s the equilibrium that might push it up to a positive here [for drayage].” Contact Dan Ronan at contactdanronan@gmail.com .

Port News

Trucking News

Drayage

Surface

TPM26: US trucking crackdown likely to have delayed impact on drayage sector

<div class="phx-topic abstract-wrapper"><p>Those who would be affected by the proposed $85 billion transaction either directly or indirectly had plenty to say about the matter during the first TPM26 conference since the deal was announced. </p></div>

Those who would be affected by the proposed $85 billion transaction either directly or indirectly had plenty to say about the matter during the first TPM26 conference since the deal was announced.

<div class="phx-topic"><p>Long Beach, California — Union Pacific Railroad’s (UP’s) proposed $85 billion acquisition of Norfolk Southern Railway (NS) is being hotly debated this week at TPM26, specifically the impact the deal could have on beneficial cargo owners (BCOs). </p><p>Supporters say combining the two railroads would create operational efficiencies and dramatically reduce bottlenecks in gateway cities such as Chicago, Kansas City and Memphis. Opponents counter that many of those efficiencies could be achieved without a major consolidation that would leave BCOs with fewer choices and increase the risk of service disruptions.  </p><p>“We have railroads on the western side and the eastern side of the country, and they can’t connect seamlessly and easily, which is an anomaly compared with most other countries,” said Jeremy Nixon, CEO of Ocean Network Express (ONE). “Anything that can join up and move the cargo through smoother, quicker, and take cost out is a benefit.” </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177004_0.1.jpg"></img></div><p>ONE is a major customer of Union Pacific and has filed a letter of support for the deal with federal regulators. </p><p>Handoffs between railroads in US gateway cities often take 12 to 24 hours. For example, if a BCO moves a container from the Port of Los Angeles to Cincinnati, a western-based railroad transports the cargo to Chicago. The train is then broken apart and the containers are transferred to eastern rail partners, often one by one by a trucker performing a cross-town dray move. Finally, the eastern railroad builds a new train for the Chicago to Cincinnati leg, loads containers on board, and departs. </p><p>Under a merged Union Pacific-Norfolk Southern system, proponents say the process could be simplified. A train arriving in Chicago would only require a crew change before continuing east, potentially reducing the process to less than an hour. </p><p>Shippers in parts of Michigan, Ohio and Kentucky could see some of the largest operational changes with a seamless handoff in Chicago. </p><p>“We really want to hear the BCOs to find out where they want to go,” Kenny Rocker, UP’s executive vice president of marketing and sales, told TPM26 on Tuesday. “Where do you want to go? Do you want to go to Cincinnati? Do you want to go to Toledo? Do we have those services? We’re looking at it from that perspective, not trying to push something that’s not there.” </p><h3>Stiff competition in the way </h3><p>The UP-NS merger proposal still faces a lengthy regulatory process. </p><p>The US Surface Transportation Board (STB) <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">deemed Union Pacific’s initial application “incomplete” in January</a>. UP plans to submit a revised application by April 30. If regulators determine that the second filing is “complete,” it would trigger a multi-stage review process that includes public hearings and testimony. A final decision would likely come in 2027. </p><p>Major rail competitors currently oppose the deal, including BNSF Railway, Canadian Pacific Kansas City, Canadian National and CSX Transportation. </p><p>Their primary concern is that a combined railroad would create an entity so large that a service disruption could ripple across the broader North American network. Opponents also argue that many of the operational improvements highlighted by supporters could be achieved through stronger cooperation between railroads. </p><p>Jon Gabriel, BNSF’s group vice president of consumer products, argued that if Union Pacific ultimately spends $85 billion to acquire Norfolk Southern, the combined railroad would face pressure to generate returns for shareholders while servicing acquisition-related debt, potentially leading to higher rates for shippers.  </p><p>“You’re going to have less optionality. So, is it necessary to pay more to get something that could be accomplished without the premium?” Gabriel told TPM26 Tuesday. </p><p>BNSF and Norfolk Southern <a href="https://www.joc.com/article/bnsf-norfolk-southern-unveil-faster-inland-service-from-pacific-northwest-5976500">launched a joint service</a> last year between ports in Seattle and Tacoma and the Ohio Valley, with only a quick crew change in Chicago. Gabriel said that proves the same benefits can be achieved through cooperation. </p><p>Still, Gabriel acknowledged that the merger debate itself has brought attention to congestion in gateway cities, an issue the industry has long struggled to address. </p><h3>West Coast versus East Coast ports </h3><p>Another question raised during TPM26 is whether East Coast ports could lose traffic if the UP-NS merger goes forward.  </p><p>“We have a pretty competitive port structure that allows for lots of different service options in different ports,” Carl Bentzel, president of the National Association of Waterfront Employers, said Tuesday. “There is a legitimate and profound concern on foreclosure of business opportunity and long-term consolidation in ports.” </p><p>Mike Steenhoek, executive director of the Soy Transportation Coalition, said smaller East Coast ports could face pressure if a combined railroad shifts investment and service priorities. </p><p>“The East Coast ports are all profitable, but some are more profitable than others, and if you are a company that’s allocating scarce resources to its optimum effect, you’re going to prioritize certain ports at the expense of others,” he said Tuesday. </p><p>UP’s Rocker countered that Norfolk Southern has performed well in short-haul East Coast inland routes, a strength he said would remain after the merger. </p><p>“I think they do a great job, and this merger won’t disrupt any of that,” he said. “We’re not going in saying we want to lose containerized business; that’s not a part of the mindset. The mindset will be to retain and grow as much as we can.” </p><p><i>Contact Ari Ashe at </i><a href="mailto:ari.ashe@spglobal.com"><i>ari.ashe@spglobal.com</i></a><i>.</i> </p></div>

Long Beach, California — Union Pacific Railroad’s (UP’s) proposed $85 billion acquisition of Norfolk Southern Railway (NS) is being hotly debated this week at TPM26, specifically the impact the deal could have on beneficial cargo owners (BCOs). Supporters say combining the two railroads would create operational efficiencies and dramatically reduce bottlenecks in gateway cities such as Chicago, Kansas City and Memphis. Opponents counter that many of those efficiencies could be achieved without a major consolidation that would leave BCOs with fewer choices and increase the risk of service disruptions. “We have railroads on the western side and the eastern side of the country, and they can’t connect seamlessly and easily, which is an anomaly compared with most other countries,” said Jeremy Nixon, CEO of Ocean Network Express (ONE). “Anything that can join up and move the cargo through smoother, quicker, and take cost out is a benefit.” ONE is a major customer of Union Pacific and has filed a letter of support for the deal with federal regulators. Handoffs between railroads in US gateway cities often take 12 to 24 hours. For example, if a BCO moves a container from the Port of Los Angeles to Cincinnati, a western-based railroad transports the cargo to Chicago. The train is then broken apart and the containers are transferred to eastern rail partners, often one by one by a trucker performing a cross-town dray move. Finally, the eastern railroad builds a new train for the Chicago to Cincinnati leg, loads containers on board, and departs. Under a merged Union Pacific-Norfolk Southern system, proponents say the process could be simplified. A train arriving in Chicago would only require a crew change before continuing east, potentially reducing the process to less than an hour. Shippers in parts of Michigan, Ohio and Kentucky could see some of the largest operational changes with a seamless handoff in Chicago. “We really want to hear the BCOs to find out where they want to go,” Kenny Rocker, UP’s executive vice president of marketing and sales, told TPM26 on Tuesday. “Where do you want to go? Do you want to go to Cincinnati? Do you want to go to Toledo? Do we have those services? We’re looking at it from that perspective, not trying to push something that’s not there.” Stiff competition in the way The UP-NS merger proposal still faces a lengthy regulatory process. The US Surface Transportation Board (STB) deemed Union Pacific’s initial application “incomplete” in January . UP plans to submit a revised application by April 30. If regulators determine that the second filing is “complete,” it would trigger a multi-stage review process that includes public hearings and testimony. A final decision would likely come in 2027. Major rail competitors currently oppose the deal, including BNSF Railway, Canadian Pacific Kansas City, Canadian National and CSX Transportation. Their primary concern is that a combined railroad would create an entity so large that a service disruption could ripple across the broader North American network. Opponents also argue that many of the operational improvements highlighted by supporters could be achieved through stronger cooperation between railroads. Jon Gabriel, BNSF’s group vice president of consumer products, argued that if Union Pacific ultimately spends $85 billion to acquire Norfolk Southern, the combined railroad would face pressure to generate returns for shareholders while servicing acquisition-related debt, potentially leading to higher rates for shippers. “You’re going to have less optionality. So, is it necessary to pay more to get something that could be accomplished without the premium?” Gabriel told TPM26 Tuesday. BNSF and Norfolk Southern launched a joint service last year between ports in Seattle and Tacoma and the Ohio Valley, with only a quick crew change in Chicago. Gabriel said that proves the same benefits can be achieved through cooperation. Still, Gabriel acknowledged that the merger debate itself has brought attention to congestion in gateway cities, an issue the industry has long struggled to address. West Coast versus East Coast ports Another question raised during TPM26 is whether East Coast ports could lose traffic if the UP-NS merger goes forward. “We have a pretty competitive port structure that allows for lots of different service options in different ports,” Carl Bentzel, president of the National Association of Waterfront Employers, said Tuesday. “There is a legitimate and profound concern on foreclosure of business opportunity and long-term consolidation in ports.” Mike Steenhoek, executive director of the Soy Transportation Coalition, said smaller East Coast ports could face pressure if a combined railroad shifts investment and service priorities. “The East Coast ports are all profitable, but some are more profitable than others, and if you are a company that’s allocating scarce resources to its optimum effect, you’re going to prioritize certain ports at the expense of others,” he said Tuesday. UP’s Rocker countered that Norfolk Southern has performed well in short-haul East Coast inland routes, a strength he said would remain after the merger. “I think they do a great job, and this merger won’t disrupt any of that,” he said. “We’re not going in saying we want to lose containerized business; that’s not a part of the mindset. The mindset will be to retain and grow as much as we can.” Contact Ari Ashe at ari.ashe@spglobal.com .

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North-American rail

Intermodal providers

TPM26: Stakeholders put UP-NS merger proposal under the microscope

<div class="phx-topic abstract-wrapper"><p>The head of the Agriculture Transportation Coalition says US ag shippers face a plethora of changing tariffs and other measures that undermine their ability to tap overseas markets.  </p></div>

The head of the Agriculture Transportation Coalition says US ag shippers face a plethora of changing tariffs and other measures that undermine their ability to tap overseas markets.

<div class="phx-topic"><p>Long Beach, California — While US government oversight of ocean carriers has improved, tariffs and other policy uncertainty remain a main stumbling block for boosting US exports, according to the executive director of the Agriculture Transportation Coalition (AgTC). </p><p>Speaking at the <i>Journal of Commerce</i>’s TPM26 conference, AgTC’s Peter Friedmann said the conflict in Iran has the potential to impact the ability of his members to ship hay and other ag products to customers in the Middle East. Ocean carriers are already beginning to issue massive surcharges on shipments into the region originating from non-US destinations.  </p><p>US ag exporters also faced similar surcharges in 2024 due to the uptick in attacks on ships moving through the Red Sea. Despite the Federal Maritime Commission (FMC) at the time initially waiving its 30-day notice rule on some of the surcharges, Friedmann said his group was able to push back and ultimately have the agency enforce the 30-day rule.   </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177004_0.1.jpg"></img></div><p>“I have contacted all the FMC commissioners already that this could be repeated [now], but apparently they learned the lesson,” Friedmann said. “They’re going to study it first and determine if there is an additional cost for the ocean carriers. So, that will be the first step, and I think it’ll be a healthy one.” </p><p>In other areas, though, shippers face more uncertainty from the government. <a href="https://www.joc.com/article/us-supreme-court-rules-against-trump-in-critical-ieepa-tariff-case-6173568">The recent Supreme Court ruling</a> that struck down the Trump administration’s emergency tariffs does not outline whether shippers should get refunds for those tariffs, nor has the federal government said it would issue refunds. </p><p>After a similar Supreme Court decision years earlier that blocked the US government from collecting the Harbor Maintenance Tax from exporters, Friedmann said it took four or five years to issue refunds. Big importers can more easily shoulder the legal costs and delays for refunds, but smaller importers will be more pressed to navigate the process, he noted.  </p><h3>Trump not grasping unpopularity of tariffs </h3><p>Friedmann said Donald Trump’s enthusiasm for tariffs could get tested in the midterm elections this November by candidates who emphasize affordability, although he added the administration does not appear to be getting the message about the unpopularity of tariffs. </p><p>After the Supreme Court ruling, the Trump administration said it would use a different legal authority to issue a 10% tariff effective for 150 days. Friedmann said volatile US trade policy undermines the administration’s goal of boosting US exports. </p><p>“A lot of the problem is our tariffs on other products, but a lot of the problem is the retaliation by other countries,” he said. “Some of those tariffs are coming off, and I think that’s not going to be advertised by the administration, but I think we’re seeing that trend already, and we’re going to see more of it.”  </p><p>Trump’s other policy measures outside of tariffs also cause uncertainty for shippers, Friedmann said. The proposed port fees on Chinese-built and operated ships are due to come back in November after their one-year suspension. And Trump’s recent Maritime Action Plan to revive the US maritime industry also includes proposed fees on imports arriving on non-US ships and cargo preference requirements for US-built ships that could increase costs.  </p><p>“In global commerce, we can’t be off the global price by even one cent on our commodities going out,” Friedmann said. “If transportation costs build up and put us over, we’re out of the market.” </p><p><i>Contact Michael Angell at </i><a href="mailto:michael.angell@spglobal.com"><i>michael.angell@spglobal.com</i></a><i>.</i>  </p></div>

Long Beach, California — While US government oversight of ocean carriers has improved, tariffs and other policy uncertainty remain a main stumbling block for boosting US exports, according to the executive director of the Agriculture Transportation Coalition (AgTC). Speaking at the Journal of Commerce’s TPM26 conference, AgTC’s Peter Friedmann said the conflict in Iran has the potential to impact the ability of his members to ship hay and other ag products to customers in the Middle East. Ocean carriers are already beginning to issue massive surcharges on shipments into the region originating from non-US destinations. US ag exporters also faced similar surcharges in 2024 due to the uptick in attacks on ships moving through the Red Sea. Despite the Federal Maritime Commission (FMC) at the time initially waiving its 30-day notice rule on some of the surcharges, Friedmann said his group was able to push back and ultimately have the agency enforce the 30-day rule. “I have contacted all the FMC commissioners already that this could be repeated [now], but apparently they learned the lesson,” Friedmann said. “They’re going to study it first and determine if there is an additional cost for the ocean carriers. So, that will be the first step, and I think it’ll be a healthy one.” In other areas, though, shippers face more uncertainty from the government. The recent Supreme Court ruling that struck down the Trump administration’s emergency tariffs does not outline whether shippers should get refunds for those tariffs, nor has the federal government said it would issue refunds. After a similar Supreme Court decision years earlier that blocked the US government from collecting the Harbor Maintenance Tax from exporters, Friedmann said it took four or five years to issue refunds. Big importers can more easily shoulder the legal costs and delays for refunds, but smaller importers will be more pressed to navigate the process, he noted. Trump not grasping unpopularity of tariffs Friedmann said Donald Trump’s enthusiasm for tariffs could get tested in the midterm elections this November by candidates who emphasize affordability, although he added the administration does not appear to be getting the message about the unpopularity of tariffs. After the Supreme Court ruling, the Trump administration said it would use a different legal authority to issue a 10% tariff effective for 150 days. Friedmann said volatile US trade policy undermines the administration’s goal of boosting US exports. “A lot of the problem is our tariffs on other products, but a lot of the problem is the retaliation by other countries,” he said. “Some of those tariffs are coming off, and I think that’s not going to be advertised by the administration, but I think we’re seeing that trend already, and we’re going to see more of it.” Trump’s other policy measures outside of tariffs also cause uncertainty for shippers, Friedmann said. The proposed port fees on Chinese-built and operated ships are due to come back in November after their one-year suspension. And Trump’s recent Maritime Action Plan to revive the US maritime industry also includes proposed fees on imports arriving on non-US ships and cargo preference requirements for US-built ships that could increase costs. “In global commerce, we can’t be off the global price by even one cent on our commodities going out,” Friedmann said. “If transportation costs build up and put us over, we’re out of the market.” Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Supply chain

Maritime

TPM26: Volatile US trade policy undermines exporters: AgTC

<div class="phx-topic abstract-wrapper"><p>With on-time performance close to the 90% target, Hapag-Lloyd has begun to remove the additional capacity initially built into the network to ensure 90% reliability, Rolf Habben Jansen told the TPM26 conference.   </p></div>

With on-time performance close to the 90% target, Hapag-Lloyd has begun to remove the additional capacity initially built into the network to ensure 90% reliability, Rolf Habben Jansen told the TPM26 conference.

<div class="phx-topic"><p>Long Beach, California — Gemini Cooperation’s steadily improving schedule reliability has enabled Hapag-Lloyd to take buffer capacity out of the network while maintaining reliable transit times, CEO Rolf Habben Jansen said Tuesday. </p><p>The additional capacity was built into schedules when Gemini launched in February 2025 because partners Hapag-Lloyd and Maersk wanted to ensure 90% on-time arrivals “no matter what,” Habben Jansen told the <i>Journal of Commerce</i>’s TPM26 conference. </p><p>“If you look at the product that we’re now launching in 2026 you will see that we have already taken some buffer capacity out here and there, and we will continue to do that because we want to be reliable, but we also want to have competitive transit times,” he said. </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177003_0.1.jpg"></img></div><p>“You need to find a competitive transit time, very high predictability and low variability,” Habben Jansen added. “If you do that, it allows our customers to say, ‘okay, if I put the most valuable stuff on that service I can take out a week of inventory ... It may only be a week of inventory, but a week is a lot.” </p><p>Data from Sea-Intelligence Maritime Analysis for December and January shows that Gemini had a global schedule reliability of 89.5%, despite congestion challenges at European and Asian ports and severe winter weather. </p><p>Chelsea Morris, vice president of global inbound transportation at Dollar General, said the discount retailer still needed to pressure-test the reliability in its supply chain, but the trends were positive. </p><p>“We’ve already seen a demonstrable dip in the standard deviation associated with our cargo,” she told the conference. “When we determine how much product we need in the pipeline, that’s lead times. How much safety stock we need is variability. Anytime you can remove that variability, you don’t need that extra inventory.” </p><h3>Reliability on ‘a massive scale’ </h3><p>Morris said that although Gemini was the most reliable alliance, on-time performance was improving across the industry. </p><p>“What’s really special about what is being done is that it is being done on a massive scale,” she added. “Often when working with carrier partners, it’s singular and it’s directional, but what we’re doing here is really making a difference for the entire industry. It means that we’re not flowing wasteful product through the supply chain that can then bottleneck and cause a lot of issues for all our customers.” </p><p>Rebecca Ziebarth, vice president of global trade management at Ashley Furniture, agreed that more reliability in ocean schedules improved inventory management. </p><p>“We want to be able to reduce how much we’re carrying and make sure that we can keep those costs in check, and being able to have the option to direct those raw materials to our manufacturing facility is a huge benefit,” she said.  </p><p>With Gemini’s schedule reliability remaining close to its 90% stated target since its launch early last year, Habben Jansen on Tuesday repeated a view he first expressed at TPM25 last year. </p><p>“Our objective is to create more value for customers, and I’m firmly convinced that if you create value for the customer, then in the end, you will find a way to share it,” he said. </p><p>“Whether and how that is then reflected, and how that comes about in the relationship, remains to be seen, but for sure, if we are consistent and always on time, for a lot of customers that has real value,” he added. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4abe02d4-ed18-461a-ac0b-87ef52e3192b"></dynamic-object></div><p>Still, global ocean reliability has been on a steady decline since last October, according to data from eeSea, falling from 36.6% then to 25.4% in February. </p><p>Oscar de Bok, CEO of DHL Global Forwarding, agreed that consistent delivery of better services would, over time, translate into better pricing for service providers. </p><p>“In the end, customers will pay for value that you create,” he told the conference. “If you can benefit by $1,000, then you will probably be willing to pay $100 more in order to get $900 for yourself. Once it has proven itself, then the value is visible and a customer will not want to lose it.” </p><p><i>Contact Greg Knowler at </i><a href="https://www.joc.com/article/greg.knowler@spglobal.com"><i>greg.knowler@spglobal.com</i></a>.</p></div>

Long Beach, California — Gemini Cooperation’s steadily improving schedule reliability has enabled Hapag-Lloyd to take buffer capacity out of the network while maintaining reliable transit times, CEO Rolf Habben Jansen said Tuesday. The additional capacity was built into schedules when Gemini launched in February 2025 because partners Hapag-Lloyd and Maersk wanted to ensure 90% on-time arrivals “no matter what,” Habben Jansen told the Journal of Commerce’s TPM26 conference. “If you look at the product that we’re now launching in 2026 you will see that we have already taken some buffer capacity out here and there, and we will continue to do that because we want to be reliable, but we also want to have competitive transit times,” he said. “You need to find a competitive transit time, very high predictability and low variability,” Habben Jansen added. “If you do that, it allows our customers to say, ‘okay, if I put the most valuable stuff on that service I can take out a week of inventory ... It may only be a week of inventory, but a week is a lot.” Data from Sea-Intelligence Maritime Analysis for December and January shows that Gemini had a global schedule reliability of 89.5%, despite congestion challenges at European and Asian ports and severe winter weather. Chelsea Morris, vice president of global inbound transportation at Dollar General, said the discount retailer still needed to pressure-test the reliability in its supply chain, but the trends were positive. “We’ve already seen a demonstrable dip in the standard deviation associated with our cargo,” she told the conference. “When we determine how much product we need in the pipeline, that’s lead times. How much safety stock we need is variability. Anytime you can remove that variability, you don’t need that extra inventory.” Reliability on ‘a massive scale’ Morris said that although Gemini was the most reliable alliance, on-time performance was improving across the industry. “What’s really special about what is being done is that it is being done on a massive scale,” she added. “Often when working with carrier partners, it’s singular and it’s directional, but what we’re doing here is really making a difference for the entire industry. It means that we’re not flowing wasteful product through the supply chain that can then bottleneck and cause a lot of issues for all our customers.” Rebecca Ziebarth, vice president of global trade management at Ashley Furniture, agreed that more reliability in ocean schedules improved inventory management. “We want to be able to reduce how much we’re carrying and make sure that we can keep those costs in check, and being able to have the option to direct those raw materials to our manufacturing facility is a huge benefit,” she said. With Gemini’s schedule reliability remaining close to its 90% stated target since its launch early last year, Habben Jansen on Tuesday repeated a view he first expressed at TPM25 last year. “Our objective is to create more value for customers, and I’m firmly convinced that if you create value for the customer, then in the end, you will find a way to share it,” he said. “Whether and how that is then reflected, and how that comes about in the relationship, remains to be seen, but for sure, if we are consistent and always on time, for a lot of customers that has real value,” he added. Still, global ocean reliability has been on a steady decline since last October, according to data from eeSea, falling from 36.6% then to 25.4% in February. Oscar de Bok, CEO of DHL Global Forwarding, agreed that consistent delivery of better services would, over time, translate into better pricing for service providers. “In the end, customers will pay for value that you create,” he told the conference. “If you can benefit by $1,000, then you will probably be willing to pay $100 more in order to get $900 for yourself. Once it has proven itself, then the value is visible and a customer will not want to lose it.” Contact Greg Knowler at greg.knowler@spglobal.com .

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TPM26: Buffer capacity being taken out of Gemini network: Hapag-Lloyd CEO

<div class="phx-topic abstract-wrapper"><p>Ryan Petersen said his company went into “code red” last year in transitioning to AI, with the technology’s first benefits seen in customs compliance and auditing.</p></div>

Ryan Petersen said his company went into “code red” last year in transitioning to AI, with the technology’s first benefits seen in customs compliance and auditing.

<div class="phx-topic"><p>Long Beach, California — Flexport CEO Ryan Petersen said Tuesday recent advances in artificial intelligence AI can remove more of the friction involved in shipping, potentially shaving 10% off the back-office cost of ocean freight and allowing logistics companies to easily scale without adding employees.  </p><p>Speaking at the <i>Journal of Commerce</i>’s TPM26 conference, Petersen said Flexport went into “code red” and began a more urgent transition to using AI tools in its processes last November due to the better models and new capabilities available in the market. He said the company plans to use AI to “vibe code” half of its internal applications rather than using traditional programming tools.  </p><p>“I think the ability to build AI right now is phenomenal,” Petersen said. “You can just talk to Claude [AI] in English and get an application out in 30 minutes. So, there’s a huge amount of this that’s possible now that wasn’t possible even 90 days ago.” </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177003_0.1.jpg"></img></div><p>AI has been especially helpful in Flexport’s customs business, he said, allowing the company to update its internal systems to reflect 53 changes to US Customs code last year to reflect the multiple changes to tariff and trade codes.  </p><p>Petersen said the adoption of AI has reduced the error rate on Flexport’s customs declarations to almost zero. The company also used AI to build its recently released “tariff simulator” to double check customs duties and other fees. And he said the tool has been able to identify some $4 billion in overcharges on customs documents.  </p><p>“We are now able to do customs for some of the biggest companies in the world because our customs technology stack is really differentiated for very large enterprises,” Petersen said. “We can put things on autopilot with a very high degree of compliance accuracy.” </p><h3>Using AI to optimize ocean freight </h3><p>In its forwarding business, Flexport used AI to build an application for optimizing ocean freight by assigning shipments based on the lowest contract rate, sailing schedules, and vessel arrival dates. Many other forwarders are applying AI to ocean freight, which Petersen said is a “simple problem.” He said the real benefits of AI come from handling the industry’s complex problems, such as customs updates and optimizing less-than-container load and consolidated shipments. </p><p>“We want to be more about how do you bring AI to either do better, more compliant customs keeping track of all the tariff changes or freight consolidation, so being able to have an AI algorithm that takes freight and does Tetris inside the container,” Petersen said.  </p><p>AI is solving the problem of how a logistics company can serve more customers and markets without increasing headcount. Citing the example of DSV’s 2024 acquisition of Schenker that doubled its headcount to 150,000, Petersen said an organization that size can introduce more complexity into logistics that AI can eliminate.  </p><p>“I think you’re going to see a really rapid ability to lower costs in logistics,” he said. “Our estimate is that a shipper can save about 10% on the price of shipping a container [compared with] the white-collar transactional labor to coordinate the shipments.” </p><p><i>Contact Michael Angell at </i><a href="mailto:michael.angell@spglobal.com"><i>michael.angell@spglobal.com</i></a>.</p></div>

Long Beach, California — Flexport CEO Ryan Petersen said Tuesday recent advances in artificial intelligence AI can remove more of the friction involved in shipping, potentially shaving 10% off the back-office cost of ocean freight and allowing logistics companies to easily scale without adding employees. Speaking at the Journal of Commerce’s TPM26 conference, Petersen said Flexport went into “code red” and began a more urgent transition to using AI tools in its processes last November due to the better models and new capabilities available in the market. He said the company plans to use AI to “vibe code” half of its internal applications rather than using traditional programming tools. “I think the ability to build AI right now is phenomenal,” Petersen said. “You can just talk to Claude [AI] in English and get an application out in 30 minutes. So, there’s a huge amount of this that’s possible now that wasn’t possible even 90 days ago.” AI has been especially helpful in Flexport’s customs business, he said, allowing the company to update its internal systems to reflect 53 changes to US Customs code last year to reflect the multiple changes to tariff and trade codes. Petersen said the adoption of AI has reduced the error rate on Flexport’s customs declarations to almost zero. The company also used AI to build its recently released “tariff simulator” to double check customs duties and other fees. And he said the tool has been able to identify some $4 billion in overcharges on customs documents. “We are now able to do customs for some of the biggest companies in the world because our customs technology stack is really differentiated for very large enterprises,” Petersen said. “We can put things on autopilot with a very high degree of compliance accuracy.” Using AI to optimize ocean freight In its forwarding business, Flexport used AI to build an application for optimizing ocean freight by assigning shipments based on the lowest contract rate, sailing schedules, and vessel arrival dates. Many other forwarders are applying AI to ocean freight, which Petersen said is a “simple problem.” He said the real benefits of AI come from handling the industry’s complex problems, such as customs updates and optimizing less-than-container load and consolidated shipments. “We want to be more about how do you bring AI to either do better, more compliant customs keeping track of all the tariff changes or freight consolidation, so being able to have an AI algorithm that takes freight and does Tetris inside the container,” Petersen said. AI is solving the problem of how a logistics company can serve more customers and markets without increasing headcount. Citing the example of DSV’s 2024 acquisition of Schenker that doubled its headcount to 150,000, Petersen said an organization that size can introduce more complexity into logistics that AI can eliminate. “I think you’re going to see a really rapid ability to lower costs in logistics,” he said. “Our estimate is that a shipper can save about 10% on the price of shipping a container [compared with] the white-collar transactional labor to coordinate the shipments.” Contact Michael Angell at michael.angell@spglobal.com .

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