<div class="phx-topic abstract-wrapper"><p>Pandemic congestion may be easing as container rates fall, but breakbulk spillover cargo shows no sign of slowing at the Port of New Orleans.</p></div>

Pandemic congestion may be easing as container rates fall, but breakbulk spillover cargo shows no sign of slowing at the Port of New Orleans.

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<div><p>The “spillover” market — a wave of cargo pushed from container lines to alternate vessel types and modes thanks to congestion, disrupted schedules, and high freight rates — may be peaking as container rates soften, but the surge of spillover cargo at the Port of New Orleans shows no sign of easing. </p><p>New Orleans has benefited from the spillover market in terms of “decontainerized” cargo, or cargo that normally ships in containers but has shifted to breakbulk modes such as pallets or super sacks, Janine Mansour, the port’s head of business development, told JOC.com. </p><p>Breakbulk cargo at New Orleans was...

The “spillover” market — a wave of cargo pushed from container lines to alternate vessel types and modes thanks to congestion, disrupted schedules, and high freight rates — may be peaking as container rates soften, but the surge of spillover cargo at the Port of New Orleans shows no sign of easing. New Orleans has benefited from the spillover market in terms of “decontainerized” cargo, or cargo that normally ships in containers but has shifted to breakbulk modes such as pallets or super sacks, Janine Mansour, the port’s head of business development, told JOC.com. Breakbulk cargo at New Orleans was up 99 percent during the first six months of 2022, to 1.3 million short tons versus 673,172 short tons during the same period a year ago, according to port data. For the whole of 2021, breakbulk cargo was up 58 percent from 2020, to 1.9 million short tons. Click to enlarge . So far, there is little sign of the spillover surge slowing in New Orleans. In addition to more typical breakbulk cargoes such as steel and project cargo, breakbulk terminals at the port are handling a range of “new-to-them” commodities that are normally shipped in containers. These are arriving bagged on multipurpose ships and include coffee, frac sand, salmon meal, and plastics for manufacturing, Jeff Allen, vice president of operations with privately held terminal Coastal Cargo, told JOC.com. “We are in a lot better shape now than we were a year ago,” Allen said. “We’ve got a few new cargoes and have been able to diversify.” He said Coastal is also receiving inquiries for coal and grain, export bulk cargoes it would not normally handle. The port’s individual breakbulk imports tell a tale of pandemic demand: breakbulk plywood imports shot up to 73,744 short tons during the first half of 2022, compared with 63,318 short tons for the whole of 2021 and only 1,296 short tons imported as breakbulk in 2020. Almost 874,000 short tons of iron and steel were imported in the first half of 2022, compared with 1.2 million short tons for the whole of 2021 and 758,352 short tons in 2020. A cargo of “spillover” coffee, 4,000 tons in supersacks, was discharged at Empire Stevedoring, another breakbulk terminal at the Port of New Orleans, in mid-August, Mansour said. And another multi-thousand-ton coffee delivery is expected at Coastal Cargo in September. How long will the spillover market last? “It all depends on when container rates come back down. It’s a pricing issue,” Allen said, adding that many importers find it easier to deal with four or five containers of cargo over time rather than cargo arriving in 4,000- or 5,000-ton parcels. Contact  Janet Nodar at  janet.nodar@ihsmarkit.com  and follow her on  LinkedIn  and  Twitter .  

Breakbulk ports

Breakbulk carriers

New Orleans H1 breakbulk tonnage doubles amid ‘spillover’ surge

<div class="phx-topic abstract-wrapper"><p>The two markets hold high stakes, pegged at $2 billion in combined export value for both homegrown and global auto brands in India. </p></div>

The two markets hold high stakes, pegged at $2 billion in combined export value for both homegrown and global auto brands in India. 

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<div class="phx-topic"><p>Heavy tariff pounding by Mexico and South Africa on automobile imports is threatening India’s car-carrying business for roll-on/roll-off (ro/ro) supply chain stakeholders who had been eyeing stronger growth from the emerging markets amid trade diversification in Asia.  </p><p>Mexico has more than doubled tariffs on finished passenger vehicles shipped in from countries without a free trade agreement (FTA), primarily targeting India and China, lifting the levy to 50% on Jan. 1 from the previous 20%. South Africa has signaled its intent follow suit in a similar protectionist approach.  </p><p>The two markets hold high stakes, pegged at $2 billion in combined export value for both homegrown and global auto brands in India.  </p><p>Ro/ro industry sources in India speaking with the <i>Journal of Commerce </i>have raised alarms regarding potential trade setbacks due to the volatile environment.  </p><p>“The elevated tariffs have dealt a serious blow for the Indian auto industry as it’s on the cusp of a rapid expansionist curve,” said a Mumbai-based executive handling operations for a South Korean car carrier.  “The booming growth journey of exports will be severely hampered.”  </p><p>Even as original equipment manufacturers (OEMs) explore tactical operational adjustments to soften the impact, a measurable near-term slowdown in export volumes appears inevitable, sources said. That’s underscored by the fact that nearly half of all passenger cars sold in South Africa in the first half of 2025 were of Indian origin, according to a year-end report from market intelligence firm Lightstone.  </p><p>MOL, NYK Line, “K” Line, Hoegh Autoliners, Hyundai Glovis, and EUKOR Car Carriers are the largest ro/ro capacity providers out of India, with Mundra (Adani Ports) and Pipavav (APM Terminals) being their primary ports of call. Pipavav saw April to December ro/ro volumes swell to 161,000 units, up from 116,000 units in the same period a year earlier, data from the port confirmed.  </p><h3>OEMs doubling down on Indian exports </h3><p>OEMs are, officially, holding firm on their growth bets for India and downplaying the potential risks posed by shifting tariff regimes.  </p><p>“Mexico has consistently been one of our important export markets, given the rising demand there and the traction of our India-made models,” Skoda Auto Volkswagen India told the Journal of Commerce. “For the moment, we have come to the conclusion that our business activities are not affected.”  </p><p>The German-based group ships about 45,000 units of different models annually to Mexico.  </p><p>Officials with Indian car leader Maruti Suzuki said during a recent earnings briefing the company was monitoring the tariff situation and weighing steps to de-risk its export portfolio. The automaker declined to comment further.  </p><p>India’s total automobile exports soared 24% year over year to 6.3 million units in 2025, with passenger vehicle outflows up 16% to 863,000 units by segment, industry data shows, refueling the bullish industry sentiment.  </p><p>“The demand has been steady across most markets, including in the Middle East, Africa and Latin America,” the Society of Indian Automobile Manufacturers (SIAM) said.  </p><p>Any downturn in Indian auto exports could also weigh on already demand-stressed container lines as shippers often move completely built units (CBUs) in containers for direct and faster connectivity, in addition to using boxes to ship auto parts. </p><p><i>Contact Bency Mathew at </i><a href="mailto:bencyvmathew@gmail.com"><i>bencyvmathew@gmail.com.</i></a></p></div>

Heavy tariff pounding by Mexico and South Africa on automobile imports is threatening India’s car-carrying business for roll-on/roll-off (ro/ro) supply chain stakeholders who had been eyeing stronger growth from the emerging markets amid trade diversification in Asia.  Mexico has more than doubled tariffs on finished passenger vehicles shipped in from countries without a free trade agreement (FTA), primarily targeting India and China, lifting the levy to 50% on Jan. 1 from the previous 20%. South Africa has signaled its intent follow suit in a similar protectionist approach. The two markets hold high stakes, pegged at $2 billion in combined export value for both homegrown and global auto brands in India.  Ro/ro industry sources in India speaking with the Journal of Commerce have raised alarms regarding potential trade setbacks due to the volatile environment.  “The elevated tariffs have dealt a serious blow for the Indian auto industry as it’s on the cusp of a rapid expansionist curve,” said a Mumbai-based executive handling operations for a South Korean car carrier.  “The booming growth journey of exports will be severely hampered.”  Even as original equipment manufacturers (OEMs) explore tactical operational adjustments to soften the impact, a measurable near-term slowdown in export volumes appears inevitable, sources said. That’s underscored by the fact that nearly half of all passenger cars sold in South Africa in the first half of 2025 were of Indian origin, according to a year-end report from market intelligence firm Lightstone.  MOL, NYK Line, “K” Line, Hoegh Autoliners, Hyundai Glovis, and EUKOR Car Carriers are the largest ro/ro capacity providers out of India, with Mundra (Adani Ports) and Pipavav (APM Terminals) being their primary ports of call. Pipavav saw April to December ro/ro volumes swell to 161,000 units, up from 116,000 units in the same period a year earlier, data from the port confirmed.  OEMs doubling down on Indian exports OEMs are, officially, holding firm on their growth bets for India and downplaying the potential risks posed by shifting tariff regimes.  “Mexico has consistently been one of our important export markets, given the rising demand there and the traction of our India-made models,” Skoda Auto Volkswagen India told the Journal of Commerce. “For the moment, we have come to the conclusion that our business activities are not affected.”  The German-based group ships about 45,000 units of different models annually to Mexico.  Officials with Indian car leader Maruti Suzuki said during a recent earnings briefing the company was monitoring the tariff situation and weighing steps to de-risk its export portfolio. The automaker declined to comment further.  India’s total automobile exports soared 24% year over year to 6.3 million units in 2025, with passenger vehicle outflows up 16% to 863,000 units by segment, industry data shows, refueling the bullish industry sentiment.  “The demand has been steady across most markets, including in the Middle East, Africa and Latin America,” the Society of Indian Automobile Manufacturers (SIAM) said.  Any downturn in Indian auto exports could also weigh on already demand-stressed container lines as shippers often move completely built units (CBUs) in containers for direct and faster connectivity, in addition to using boxes to ship auto parts. Contact Bency Mathew at bencyvmathew@gmail.com.

Ro/ro cargo

Maritime

Auto tariff wars in Mexico, South Africa threaten to torpedo Indian ro/ro trade

<div class="phx-topic abstract-wrapper"><p>Both sides had been engaged in protracted negotiations to break the trade deadlock that had cut India’s imports to the US East Coast by more than 30% over the past six months.</p></div>

Both sides had been engaged in protracted negotiations to break the trade deadlock that had cut India’s imports to the US East Coast by more than 30% over the past six months.

<div class="phx-topic"><p>The US and India on Monday said they reached a trade agreement after a months-long dispute, prompting Washington to cut tariffs on Indian goods to 18% from the 50% that went into effect last August. In a key concession, India said it would stop its purchases of Russian oil. </p><p>“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Indian Prime Minister Narendra Modi said in a statement. </p><p>Both sides had been engaged in protracted negotiations to break the trade deadlock that had cut India’s imports to the US East Coast (USEC) by more than 30%. Further details, including the timeline for when the lower tariffs go into effect, were not immediately available. But the US said it would lower a “reciprocal” tariff on Indian goods from 25% to 18%, while also eliminating a separate 25% punitive tariff linked to India’s purchases of Russian oil. </p><p>The lower tariffs make several Indian-made products, particularly textiles and apparel, more competitive than rival Asian sourcing markets, which augurs well for a potential trade boost between India and the US. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ae1df54b-4003-46b5-a8c3-e0d35707e941"></dynamic-object></div><p>“This is big news for the India-US trade,” an executive at a European ocean carrier told the <i>Journal of Commerce</i>. “We are hoping to see a rebound in capacity demand.” </p><p>Westbound volumes on the trade lane have been under tremendous pressure since the tariff uncertainty, forcing carriers to push ocean rates down to recent lows. Carriers have also been strategically adjusting capacity through blank calls to keep supply-demand dynamics as balanced as possible. </p><p>Imports from India to the USEC have fallen 32% since the trade dispute broke out, from 93,160 TEUs in August to 63,590 TEUs in December, according to PIERS, a sister product of the <i>Journal of Commerce</i> within S&amp;P Global. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="893ffa5c-0a69-45c7-a555-425e44318711"></dynamic-object></div><p>And spot rates from India to the USEC that were $2,640 per FEU on Aug. 1 have steadily fallen since to $1,212.50 as of Jan. 30, down 54%, according to Platts, a sister company of the <i>Journal of Commerce</i> within S&amp;P Global. </p><p>Major carriers have been unable to hold on to their intended rate hikes over the past few months with little demand support emerging. </p><p><i>Contact Bency Mathew at </i><a href="mailto:bencyvmathew@gmail.com"><i>bencyvmathew@gmail.com</i></a>.</p></div>

The US and India on Monday said they reached a trade agreement after a months-long dispute, prompting Washington to cut tariffs on Indian goods to 18% from the 50% that went into effect last August. In a key concession, India said it would stop its purchases of Russian oil. “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Indian Prime Minister Narendra Modi said in a statement. Both sides had been engaged in protracted negotiations to break the trade deadlock that had cut India’s imports to the US East Coast (USEC) by more than 30%. Further details, including the timeline for when the lower tariffs go into effect, were not immediately available. But the US said it would lower a “reciprocal” tariff on Indian goods from 25% to 18%, while also eliminating a separate 25% punitive tariff linked to India’s purchases of Russian oil. The lower tariffs make several Indian-made products, particularly textiles and apparel, more competitive than rival Asian sourcing markets, which augurs well for a potential trade boost between India and the US. “This is big news for the India-US trade,” an executive at a European ocean carrier told the Journal of Commerce. “We are hoping to see a rebound in capacity demand.” Westbound volumes on the trade lane have been under tremendous pressure since the tariff uncertainty, forcing carriers to push ocean rates down to recent lows. Carriers have also been strategically adjusting capacity through blank calls to keep supply-demand dynamics as balanced as possible. Imports from India to the USEC have fallen 32% since the trade dispute broke out, from 93,160 TEUs in August to 63,590 TEUs in December, according to PIERS, a sister product of the Journal of Commerce within S&P Global. And spot rates from India to the USEC that were $2,640 per FEU on Aug. 1 have steadily fallen since to $1,212.50 as of Jan. 30, down 54%, according to Platts, a sister company of the Journal of Commerce within S&P Global. Major carriers have been unable to hold on to their intended rate hikes over the past few months with little demand support emerging. Contact Bency Mathew at bencyvmathew@gmail.com .

Transport, Trade and Regulation News

Container lines

Supply chain

Container Shipping News

US agrees to slash tariffs on imports from India after reaching trade deal

<div class="phx-topic abstract-wrapper"><p>The software company with a network of thousands of proprietary roadside cameras has been primarily serving freight brokers with capacity sourcing and fraud mitigation tools. </p></div>

The software company with a network of thousands of proprietary roadside cameras has been primarily serving freight brokers with capacity sourcing and fraud mitigation tools.

<div class="phx-topic"><p>Technology vendor GenLogs has secured $60 million in funding to build out its platform of tools that help service providers find available trucking capacity and mitigate freight theft and fraud, the company said Monday. </p><p>The investment will be used to extend GenLogs’ reach to shippers, insurers and customers in the government and financial sectors, the Virginia-based company said in a statement.  </p><p>GenLogs, founded in 2023, has primarily served truckload freight brokers, but its customer list now includes J.B. Hunt, Werner Enterprises, and the Jacksonville Port Authority. </p><p>GenLogs’ technology has been used mostly to help brokers source carriers and discover lanes where specific shippers move loads. The company broadened its focus as freight fraud and theft spiraled in the truckload industry, using its network of proprietary roadside sensors to help law enforcement track down missing loads and assets. </p><p>The applicability of GenLogs’ data to financial and risk management sensors has had CEO Ryan Joyce, a former US intelligence officer, eyeing use cases in the banking and insurance sectors, he told the <i>Journal of Commerce</i> in December. GenLogs’ tools can also be used by shippers to track down shipments that have gone missing, help them avoid potentially unscrupulous carriers, and aid them in sourcing vetted capacity in lanes they run. </p><p>GenLogs says it deletes any footage of private vehicles captured by its network of cameras before screening for commercial markings, such as a US Department of Transportation number, and blurs the vehicle’s windows to prevent personal biometric identification from being made known. </p><p>Joyce said in a post on X Monday that GenLogs serves approximately 100 carriers, brokers, shippers, ports, insurance companies and law enforcement organizations, and has increased its revenue by 14 times over the past year, without specifying an exact figure. He also said that GenLogs supplements data gathered by its own cameras with data from satellites, IoT devices, and open-source information. </p><p>The company has previously raised $21 million in two prior rounds of funding.  </p><p><i>Contact Eric Johnson at </i><a href="mailto:eric.johnson@spglobal.com"><i>eric.johnson@spglobal.com</i></a><i>.</i> </p></div>

Technology vendor GenLogs has secured $60 million in funding to build out its platform of tools that help service providers find available trucking capacity and mitigate freight theft and fraud, the company said Monday. The investment will be used to extend GenLogs’ reach to shippers, insurers and customers in the government and financial sectors, the Virginia-based company said in a statement. GenLogs, founded in 2023, has primarily served truckload freight brokers, but its customer list now includes J.B. Hunt, Werner Enterprises, and the Jacksonville Port Authority. GenLogs’ technology has been used mostly to help brokers source carriers and discover lanes where specific shippers move loads. The company broadened its focus as freight fraud and theft spiraled in the truckload industry, using its network of proprietary roadside sensors to help law enforcement track down missing loads and assets. The applicability of GenLogs’ data to financial and risk management sensors has had CEO Ryan Joyce, a former US intelligence officer, eyeing use cases in the banking and insurance sectors, he told the Journal of Commerce in December. GenLogs’ tools can also be used by shippers to track down shipments that have gone missing, help them avoid potentially unscrupulous carriers, and aid them in sourcing vetted capacity in lanes they run. GenLogs says it deletes any footage of private vehicles captured by its network of cameras before screening for commercial markings, such as a US Department of Transportation number, and blurs the vehicle’s windows to prevent personal biometric identification from being made known. Joyce said in a post on X Monday that GenLogs serves approximately 100 carriers, brokers, shippers, ports, insurance companies and law enforcement organizations, and has increased its revenue by 14 times over the past year, without specifying an exact figure. He also said that GenLogs supplements data gathered by its own cameras with data from satellites, IoT devices, and open-source information. The company has previously raised $21 million in two prior rounds of funding. Contact Eric Johnson at eric.johnson@spglobal.com .

Truckload

Truck brokers

Logistics Technology News

Tech vendor GenLogs lands $60 million to target shippers, banks

<div class="phx-topic abstract-wrapper"><p>With few opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, liners will need to look elsewhere to save costs; it won’t be long before AI offers up ready solutions, writes Peter Tirschwell.</p></div>

With few opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, liners will need to look elsewhere to save costs; it won’t be long before AI offers up ready solutions, writes Peter Tirschwell.

<div class="phx-topic"><p>Freight transportation companies, including ocean carriers, closely scrutinize the cost structure of their competitors. The reason is existential: In highly competitive and quasi-commodity markets, companies with lower costs can undercut the competition, walking away with customers, revenues and market share. </p><p>With artificial intelligence (AI) entering the picture, offering the potential for mass-automation of human tasks, an ever-present focus on cost is set to be hyper-charged. The race is on to leverage AI to lower costs as quickly and aggressively as possible, with one forwarder telling the <i>Journal of Commerce</i> the urgency is more a matter of remaining competitive — and ultimately remaining in business — than improving profitability. </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6162804_0.1.jpg"></img></div><p>“One issue that stands out is the opportunity to use AI to cut costs ... the supply chain sector is ripe for major cost savings,” Benjamin Gordon, managing partner of Cambridge Capital, <a href="https://www.linkedin.com/posts/bengordon18_bgsaconference-activity-7422998274158137344-KhAK?utm_source=share&amp;utm_medium=member_desktop&amp;rcm=ACoAAADfW-8BOfvVS8-hsN9U369b-ZDwYA85OWY">wrote in late January</a> following his annual BGSA Supply Chain Conference. </p><p>Among ocean container carriers, blocks of cost were taken out over decades through a series of mergers and acquisitions that took the market share of the top 10 carriers from about 50% in the mid-1990s to nearly 85% today, according to Alphaliner.  </p><p>But with few further opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, carriers will need to look elsewhere. It won’t be long before AI offers up ready solutions.  </p><p>The reason, some way, is that big new pockets of cost are able to be removed by automating a range of core carrier processes including customer service, dispute resolution, scrutiny of vendor invoices, and the order-to-cash cycle. </p><h3>Customer service inquires primed for automation </h3><p>Customer service is a prime target. Customer inquiries regarding vessel ETA, last free day, extension on free time, whether a bill of lading (BoL) has been sent or if a draft BoL can be sent, all are standardized processes ripe for automation, said Siddharth Vijay, founder of New York-based Lynk Labs, which is building AI agents to automate core operational workflows at supply chain companies.  </p><p>Vijay estimates that 40% of ocean carrier customer service volume can be automated, with humans left to focus on exceptions. “I estimate this number can get up to 70% in the next two years,” he told the <i>Journal of Commerce</i>. </p><p>Assuming a $30,000 fully loaded headcount cost per customer service representative, if a carrier has 2,000 staff, the savings would be about $24 million per year. If the staff count is 5,000, the savings could reach $60 million per year, Vijay estimated. Those numbers are too big to be ignored. </p><p>“This only accounts for the headcount savings,” he said. “The other large value proposition is improving customer relationships with timely, rapid answers,” a key KPI for customer service teams.  </p><p>It is unlikely that ocean carriers, even though they tend to be conservative organizations, will not soon begin exploring such opportunities given the competitive implications. </p><p>In the area of dispute resolution, to handle thousands of billing and service disputes, ocean carriers employ small armies to research history, exceptions and documentation required to resolve the dispute. Vijay said AI can make the process vastly more efficient by identifying root causes of disputes to enable carriers to proactively fix systemic issues, summarizing disputes and suggesting resolutions to improve handling time per dispute and reducing the number of disputes.  </p><h3>AI and carrier decision-making a ‘very viable’ pairing </h3><p>For ocean carriers, there may be an even bigger prize from large-scale integration of AI. Could AI one day soon drive core carrier decision-making regarding when to accept or reject bookings, where to position empty containers, what ports to call, when to blank sailings, and where to deploy ships, all rolled up into running the business to maximize profit? </p><p>Such a scenario is “very viable,” Vijay said.  </p><p>“I don’t think it is far-fetched at all,” he said. “At its core, this is what we call a constrained optimization problem. Given vessels, capacity, rates, port constraints, and customer commitments, etc., what is the profit-maximizing network?” </p><p>“The hardest part isn’t the AI algorithm itself; it’s aggregating clean, operational data across the carrier and having enough representative historical examples to ‘train’ and validate the system,” Vijay added. “In other words, it’s fundamentally a data availability problem.” </p><p><i>Contact Peter Tirschwell at </i><a href="mailto:peter.tirschwell@spglobal.com"><i>peter.tirschwell@spglobal.com</i></a>.</p></div>

Freight transportation companies, including ocean carriers, closely scrutinize the cost structure of their competitors. The reason is existential: In highly competitive and quasi-commodity markets, companies with lower costs can undercut the competition, walking away with customers, revenues and market share. With artificial intelligence (AI) entering the picture, offering the potential for mass-automation of human tasks, an ever-present focus on cost is set to be hyper-charged. The race is on to leverage AI to lower costs as quickly and aggressively as possible, with one forwarder telling the Journal of Commerce the urgency is more a matter of remaining competitive — and ultimately remaining in business — than improving profitability. “One issue that stands out is the opportunity to use AI to cut costs ... the supply chain sector is ripe for major cost savings,” Benjamin Gordon, managing partner of Cambridge Capital, wrote in late January following his annual BGSA Supply Chain Conference. Among ocean container carriers, blocks of cost were taken out over decades through a series of mergers and acquisitions that took the market share of the top 10 carriers from about 50% in the mid-1990s to nearly 85% today, according to Alphaliner. But with few further opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, carriers will need to look elsewhere. It won’t be long before AI offers up ready solutions. The reason, some way, is that big new pockets of cost are able to be removed by automating a range of core carrier processes including customer service, dispute resolution, scrutiny of vendor invoices, and the order-to-cash cycle. Customer service inquires primed for automation Customer service is a prime target. Customer inquiries regarding vessel ETA, last free day, extension on free time, whether a bill of lading (BoL) has been sent or if a draft BoL can be sent, all are standardized processes ripe for automation, said Siddharth Vijay, founder of New York-based Lynk Labs, which is building AI agents to automate core operational workflows at supply chain companies. Vijay estimates that 40% of ocean carrier customer service volume can be automated, with humans left to focus on exceptions. “I estimate this number can get up to 70% in the next two years,” he told the Journal of Commerce. Assuming a $30,000 fully loaded headcount cost per customer service representative, if a carrier has 2,000 staff, the savings would be about $24 million per year. If the staff count is 5,000, the savings could reach $60 million per year, Vijay estimated. Those numbers are too big to be ignored. “This only accounts for the headcount savings,” he said. “The other large value proposition is improving customer relationships with timely, rapid answers,” a key KPI for customer service teams. It is unlikely that ocean carriers, even though they tend to be conservative organizations, will not soon begin exploring such opportunities given the competitive implications. In the area of dispute resolution, to handle thousands of billing and service disputes, ocean carriers employ small armies to research history, exceptions and documentation required to resolve the dispute. Vijay said AI can make the process vastly more efficient by identifying root causes of disputes to enable carriers to proactively fix systemic issues, summarizing disputes and suggesting resolutions to improve handling time per dispute and reducing the number of disputes. AI and carrier decision-making a ‘very viable’ pairing For ocean carriers, there may be an even bigger prize from large-scale integration of AI. Could AI one day soon drive core carrier decision-making regarding when to accept or reject bookings, where to position empty containers, what ports to call, when to blank sailings, and where to deploy ships, all rolled up into running the business to maximize profit? Such a scenario is “very viable,” Vijay said. “I don’t think it is far-fetched at all,” he said. “At its core, this is what we call a constrained optimization problem. Given vessels, capacity, rates, port constraints, and customer commitments, etc., what is the profit-maximizing network?” “The hardest part isn’t the AI algorithm itself; it’s aggregating clean, operational data across the carrier and having enough representative historical examples to ‘train’ and validate the system,” Vijay added. “In other words, it’s fundamentally a data availability problem.” Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

AI primed to offer ocean carriers many and varied ways to cut expenses

<div class="phx-topic abstract-wrapper"><p>Norden, Stena RoRo and Meriaura commit to up to 15 new ships as the resilience of the MPV market is reflected in the most recent quarterly sentiment index published by One World Shipbrokers.</p></div>

Norden, Stena RoRo and Meriaura commit to up to 15 new ships as the resilience of the MPV market is reflected in the most recent quarterly sentiment index published by One World Shipbrokers.

<div class="phx-topic"><p>The breakbulk and project cargo vessel fleet is set to expand after three separate ship operators inked deals to add a raft of ships to their stables last week. </p><p>DS Norden confirmed it will charter up to eight 17,400-deadweight metric ton (dwt) multipurpose vessels from Singapore-headquartered Wealth Holdings Shipping, with delivery of the first vessel expected in 2028. </p><p>Wealth Holdings has placed a firm order for four ships with China’s Jiangsu Haitong Shipyard and has options for four similar vessels, a Norden spokesperson confirmed. </p><p>The ships will take Norden’s total MPV order backlog to 24 ships. These include two MPVs Norden agreed in early January to acquire on long-term lease when the newbuild ships are delivered in 2028. The ship leases include purchase options for Norden to buy the vessels at the end of the rental period. </p><p>Norden had 14 vessels on order at the end of last year that are also being acquired on newbuild leases with purchase options.   </p><p>The Copenhagen-headquartered carrier said expansion of its MPV fleet is a “continuation of our strategy to grow our presence in the project cargo market.” </p><p>“The MPV segment benefits from favorable supply fundamentals with a rapidly ageing fleet and low orderbook, coupled with a strong demand outlook,” the carrier said in a statement. </p><h3>Orders continue to roll in </h3><p>Stena RoRo, the Gothenberg, Sweden-based roll-on/roll-off vessel operator, has ordered up to six C-Flexer 15,000-dwt ro/ro ships from its long-term partner shipbuilder China Merchants Industry (CMI) Weihai Shipyard, the carrier said in a statement Jan. 28. </p><p>The deal covers a firm order for two ships to be delivered in March and June 2029, plus options for four other vessels to be delivered at three-month intervals starting from September 2029. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="603b5e33-5aef-4074-b493-3043df26c4a7"></dynamic-object></div><p>The ships, developed by Stena RoRo in cooperation with Italian design company NAOS Ship and Boat Design, are the latest iteration of Stena’s Flexer design and feature multi-fuel engines and a scalable battery-hybrid system. </p><p>“In the future, the C-Flexer will be able to operate entirely on batteries,” Per Westling, Stena RoRo managing director, said in the statement. “Until then, the installed diesel-battery hybrid system will provide the necessary flexibility and redundancy for many years to come.” </p><p>Another new order came from Turku, Finland-headquartered Meriaura, which signed a contract with China’s Jiangsu Zhenjiang Shipyard (Group) for a 6,800-dwt open deck carrier to be delivered by the beginning of 2028, the vessel operator said. </p><p>The ice-classed ship will be Meriaura’s third open deck carrier, following the smaller 4,500-dwt vessels <i>Aura</i> and <i>Meri</i> that are currently in service. </p><p>Meriaura said the ship, similar to the earlier vessels, has been designed by Deltamarin Finland. The ship will be equipped with three main engines that can be adapted to operate on future low- or zero-carbon fuels. </p><p>The new vessel will primarily operate in the short-sea shipping market. </p><p>“Meriaura’s open deck carriers are market leaders in several heavy cargo segments in Northern Europe, but there is still significant untapped potential in regional short-sea shipping activities,” Jessica Saari, Meriaura’s business development director, said in a statement. </p><h3>Positive expectations driving long-term outlook </h3><p>The resilience of the MPV market was reflected in the most recent quarterly market sentiment index published by One World Shipbrokers, which said “short-term cargo volumes have modestly improved and longer-term expectations remain positive.” </p><p>“Trade patterns suggest that Europe is currently operating closer to a spot market, while in Asia, carriers report bookings being made several weeks ahead, as breakbulk and project cargo becomes available more quickly than vessels returning on the longer Cape of Good Hope route,” Justin Archard, founder of the shipbroking house, wrote in the report. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="42dedc5b-182e-4cb5-b0ef-299b3178b84a"></dynamic-object></div><p>“Time charter rates remain high enough to reward owners of current stock, but are not high enough to encourage speculators,” Archard added. </p><p>Despite an increase in newbuilding orders, including <a href="https://www.joc.com/article/cosco-awards-initial-newbuilding-deals-as-part-of-7-billion-fleet-expansion-6145063">deals by Cosco Shipping</a> and <a href="https://www.joc.com/article/chipolbrok-scales-up-heavy-lift-multipurpose-fleet-with-new-ship-orders-6146899">Chipolbrok in early January</a>, the average age of the MPV fleet is still close to 17 years old, with vessel scrapping likely to outstrip the arrival of new ships in the fleet, the One World report, published Jan. 28, said. </p><p><i>Contact Keith Wallis at </i><a href="mailto:keithwallis@hotmail.com"><i>keithwallis@hotmail.com</i></a>.</p></div>

The breakbulk and project cargo vessel fleet is set to expand after three separate ship operators inked deals to add a raft of ships to their stables last week. DS Norden confirmed it will charter up to eight 17,400-deadweight metric ton (dwt) multipurpose vessels from Singapore-headquartered Wealth Holdings Shipping, with delivery of the first vessel expected in 2028. Wealth Holdings has placed a firm order for four ships with China’s Jiangsu Haitong Shipyard and has options for four similar vessels, a Norden spokesperson confirmed. The ships will take Norden’s total MPV order backlog to 24 ships. These include two MPVs Norden agreed in early January to acquire on long-term lease when the newbuild ships are delivered in 2028. The ship leases include purchase options for Norden to buy the vessels at the end of the rental period. Norden had 14 vessels on order at the end of last year that are also being acquired on newbuild leases with purchase options.   The Copenhagen-headquartered carrier said expansion of its MPV fleet is a “continuation of our strategy to grow our presence in the project cargo market.” “The MPV segment benefits from favorable supply fundamentals with a rapidly ageing fleet and low orderbook, coupled with a strong demand outlook,” the carrier said in a statement. Orders continue to roll in Stena RoRo, the Gothenberg, Sweden-based roll-on/roll-off vessel operator, has ordered up to six C-Flexer 15,000-dwt ro/ro ships from its long-term partner shipbuilder China Merchants Industry (CMI) Weihai Shipyard, the carrier said in a statement Jan. 28. The deal covers a firm order for two ships to be delivered in March and June 2029, plus options for four other vessels to be delivered at three-month intervals starting from September 2029. The ships, developed by Stena RoRo in cooperation with Italian design company NAOS Ship and Boat Design, are the latest iteration of Stena’s Flexer design and feature multi-fuel engines and a scalable battery-hybrid system. “In the future, the C-Flexer will be able to operate entirely on batteries,” Per Westling, Stena RoRo managing director, said in the statement. “Until then, the installed diesel-battery hybrid system will provide the necessary flexibility and redundancy for many years to come.” Another new order came from Turku, Finland-headquartered Meriaura, which signed a contract with China’s Jiangsu Zhenjiang Shipyard (Group) for a 6,800-dwt open deck carrier to be delivered by the beginning of 2028, the vessel operator said. The ice-classed ship will be Meriaura’s third open deck carrier, following the smaller 4,500-dwt vessels Aura and Meri that are currently in service. Meriaura said the ship, similar to the earlier vessels, has been designed by Deltamarin Finland. The ship will be equipped with three main engines that can be adapted to operate on future low- or zero-carbon fuels. The new vessel will primarily operate in the short-sea shipping market. “Meriaura’s open deck carriers are market leaders in several heavy cargo segments in Northern Europe, but there is still significant untapped potential in regional short-sea shipping activities,” Jessica Saari, Meriaura’s business development director, said in a statement. Positive expectations driving long-term outlook The resilience of the MPV market was reflected in the most recent quarterly market sentiment index published by One World Shipbrokers, which said “short-term cargo volumes have modestly improved and longer-term expectations remain positive.” “Trade patterns suggest that Europe is currently operating closer to a spot market, while in Asia, carriers report bookings being made several weeks ahead, as breakbulk and project cargo becomes available more quickly than vessels returning on the longer Cape of Good Hope route,” Justin Archard, founder of the shipbroking house, wrote in the report. “Time charter rates remain high enough to reward owners of current stock, but are not high enough to encourage speculators,” Archard added. Despite an increase in newbuilding orders, including deals by Cosco Shipping and Chipolbrok in early January , the average age of the MPV fleet is still close to 17 years old, with vessel scrapping likely to outstrip the arrival of new ships in the fleet, the One World report, published Jan. 28, said. Contact Keith Wallis at keithwallis@hotmail.com .

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