<div class="phx-topic abstract-wrapper">CSX Transportation and Ports America Chesapeake have signed an agreement handing management of the Port of Baltimore's intermodal container transfer facility to Ports America.</div>

CSX Transportation and Ports America Chesapeake have signed an agreement handing management of the Port of Baltimore's intermodal container transfer facility to Ports America.

<div><a>CSX Transportation</a> and Ports America Chesapeake have signed an agreement handing management of the <a>Port of Baltimore</a>'s intermodal container transfer facility to <a>Ports America</a>.Port officials said the agreement by the companies to put the ICTF and container terminal under the same management would improve efficiency and productivity at the port.“With the expansion of the Panama Canal, we see tremendous growth opportunities at the Port of Baltimore,” said Ports America CEO and President Michael Hassing. “Having direct on-dock access to rail service is a significant competitive differentiator.”On-dock rail is receiving <a>increased attention</a> from ports seeking to handle cargo surges accompanying larger...

CSX Transportation and Ports America Chesapeake have signed an agreement handing management of the Port of Baltimore 's intermodal container transfer facility to Ports America . Port officials said the agreement by the companies to put the ICTF and container terminal under the same management would improve efficiency and productivity at the port. “With the expansion of the Panama Canal, we see tremendous growth opportunities at the Port of Baltimore,” said Ports America CEO and President Michael Hassing. “Having direct on-dock access to rail service is a significant competitive differentiator.” On-dock rail is receiving increased attention from ports seeking to handle cargo surges accompanying larger ships, including those that will be able to transit the larger locks scheduled to open this year at the Panama Canal. “This agreement between CSX and Ports America Chesapeake is the first step in creating a business model that will work long term,” said Jim White, executive director of the Maryland Port Administration. “This also will help us become more competitive with attracting discretionary cargo destined for the Midwest.” Baltimore is one of four U.S. East Coast ports with 50-foot-deep channels considered key to attracting the new breed of larger ships. The others are Virginia, Miami, and New York-New Jersey. Other East Coast ports are working to deepen their waters to accommodate the larger ships that will pass through the expanded Panama Canal. Savannah is dredging to 47 feet and Charleston is working to deepen its channel to 52 feet. Port Everglades and Boston will begin dredging to 48 feet and 50 feet in 2017.

Rail News

North American ports

Ports America to operate Baltimore intermodal facility

<div class="phx-topic abstract-wrapper">Lean inventory management and low sales ratios could lead to stockouts in early 2026, Armada Corporate Intelligence warns, depending on the strength of consumer demand. </div>

Lean inventory management and low sales ratios could lead to stockouts in early 2026, Armada Corporate Intelligence warns, depending on the strength of consumer demand.

Feature image

<div class="phx-topic">The US freight downturn is stretching into its fourth year, but inventory restocking may give trucking a boost in early 2026, an analyst told a Journal of Commerce webcast Tuesday. “Inventory-to-sales ratios right now are not as elevated as we would expect, with all the inbound freight that hit us in June and July,” Keith Prather, managing director and partner at Armada Corporate Intelligence, said during the Mid-Year Trucking Outlook webcast. “Only about 7% of the market is overstocked,” compared with June 2019, Prather said. Excepting durable goods, about 28% of the market is overstocked compared with a 10-year average. If consumers continue to spend, “there are stockouts possible in some industries,” he said, leading to inventory replenishment in the first half of 2026. That could mean more freight moving in tractor-trailers.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="f7f23f1a-7279-43e9-b9c6-557d1fcfc85b"></dynamic-object></div>Whether consumers will open their wallets wider in the fourth quarter is a big question. Although the US doesn’t appear headed toward a recession, growth is weak, Paul Bingham, director of transportation consulting for S&amp;P Global Market Intelligence, said. Consumer spending “is not going to go into decline like we would see in a recession, but it’s still going to be weak in the second half of the year,” Bingham said during the webcast. Spending on durable goods will drop year over year in 2025, he predicted, “and that’s even accounting for the pull-ahead spending where people were buying automobiles and appliances to get ahead of tariff inflation.” Inventory-to-sales ratios (ISRs) compare the value of a company’s inventory to net sales and provide a measure of how quickly inventory moves off the shelf. The lower the ratio, the greater the supply-chain efficiency, but as ratios drop, the risk of stockouts and lost sales rises, with less inventory on hand. General merchandise stores, including Walmart and Costco, had an ISR of 1.28 in June, the last month for which data are available. That’s 10.5% lower than the 10-year average of 1.43 and 6% below the pre-pandemic June 2019 reading of 1.36. The retail sector as a whole had an ISR of 1.30 in June, down 9.1% from the 10-year average (1.43) and 11% below June 2019 (1.46). Merchant wholesalers, with an ISR of 1.30, were up 0.8% from their 10-year average (1.29) and down 4% from June 2019 (1.35). Manufacturers could be called “overstocked,” Prather said, with a June ISR of 1.57, 16.3% above their 10-year average (1.35) and 9% higher than in June 2019 (1.44). <h3>Matching inventory, demand </h3>Armada’s analysis coincides with reports of importers holding some shipments, drawing down pre-tariff stocks and generally practicing lean inventory management to cope with uncertainty created by high US tariffs. Retailer Kirkland, for example, has said it is “metering and holding” imports as it navigates tariff deadlines and seasonal demand. Other retailers accelerated shipments, as did manufacturers looking to avoid higher input costs. “Shippers did a great job of pulling down inventory” in the first half of 2025, Cory Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, told the Journal of Commerce last month. “(Inventories) were flat going into ‘Liberation Day,’ got pulled down, and now they’ve climbed back up,” Klujsza said, referring to the April 2 introduction of US reciprocal tariffs. But are inventories low enough to cause stockouts and a supply chain reset? That depends on the level of demand. The good news is that the US economy does not appear to be heading into a recession, said Bingham. S&amp;P Global, the parent company of the Journal of Commerce, forecasts US real GDP will expand 1.9% in 2025, down from 2.8% in 2024. “Consumers are still purchasing goods, we still have some business spending and that’s keeping us out of recession,” Bingham said. “But this is a <a href="https://www.joc.com/article/us-truckload-market-mired-in-malaise-as-import-surge-wanes-6075566">weak growth economy</a>.” Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. Journal of Commerce Research Analyst Cathy Morrow Roberson contributed to this story.</div>

The US freight downturn is stretching into its fourth year, but inventory restocking may give trucking a boost in early 2026, an analyst told a Journal of Commerce webcast Tuesday. “Inventory-to-sales ratios right now are not as elevated as we would expect, with all the inbound freight that hit us in June and July,” Keith Prather, managing director and partner at Armada Corporate Intelligence, said during the Mid-Year Trucking Outlook webcast. “Only about 7% of the market is overstocked,” compared with June 2019, Prather said. Excepting durable goods, about 28% of the market is overstocked compared with a 10-year average. If consumers continue to spend, “there are stockouts possible in some industries,” he said, leading to inventory replenishment in the first half of 2026. That could mean more freight moving in tractor-trailers. Whether consumers will open their wallets wider in the fourth quarter is a big question. Although the US doesn’t appear headed toward a recession, growth is weak, Paul Bingham, director of transportation consulting for S&P Global Market Intelligence, said. Consumer spending “is not going to go into decline like we would see in a recession, but it’s still going to be weak in the second half of the year,” Bingham said during the webcast. Spending on durable goods will drop year over year in 2025, he predicted, “and that’s even accounting for the pull-ahead spending where people were buying automobiles and appliances to get ahead of tariff inflation.” Inventory-to-sales ratios (ISRs) compare the value of a company’s inventory to net sales and provide a measure of how quickly inventory moves off the shelf. The lower the ratio, the greater the supply-chain efficiency, but as ratios drop, the risk of stockouts and lost sales rises, with less inventory on hand. General merchandise stores, including Walmart and Costco, had an ISR of 1.28 in June, the last month for which data are available. That’s 10.5% lower than the 10-year average of 1.43 and 6% below the pre-pandemic June 2019 reading of 1.36. The retail sector as a whole had an ISR of 1.30 in June, down 9.1% from the 10-year average (1.43) and 11% below June 2019 (1.46). Merchant wholesalers, with an ISR of 1.30, were up 0.8% from their 10-year average (1.29) and down 4% from June 2019 (1.35). Manufacturers could be called “overstocked,” Prather said, with a June ISR of 1.57, 16.3% above their 10-year average (1.35) and 9% higher than in June 2019 (1.44). Matching inventory, demand Armada’s analysis coincides with reports of importers holding some shipments, drawing down pre-tariff stocks and generally practicing lean inventory management to cope with uncertainty created by high US tariffs. Retailer Kirkland, for example, has said it is “metering and holding” imports as it navigates tariff deadlines and seasonal demand. Other retailers accelerated shipments, as did manufacturers looking to avoid higher input costs. “Shippers did a great job of pulling down inventory” in the first half of 2025, Cory Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, told the Journal of Commerce last month. “(Inventories) were flat going into ‘Liberation Day,’ got pulled down, and now they’ve climbed back up,” Klujsza said, referring to the April 2 introduction of US reciprocal tariffs. But are inventories low enough to cause stockouts and a supply chain reset? That depends on the level of demand. The good news is that the US economy does not appear to be heading into a recession, said Bingham. S&P Global, the parent company of the Journal of Commerce, forecasts US real GDP will expand 1.9% in 2025, down from 2.8% in 2024. “Consumers are still purchasing goods, we still have some business spending and that’s keeping us out of recession,” Bingham said. “But this is a weak growth economy .” Contact William B. Cassidy at bill.cassidy@spglobal.com . Journal of Commerce Research Analyst Cathy Morrow Roberson contributed to this story.

Trucking News

Truckload

Surface

No recession, but a restocking ‘reset’ seen possible for US trucking

<div class="phx-topic abstract-wrapper">The carrier said that network adjustments that began in April will allow it to eliminate the impact of new US port fees for ships built in China on its shipper customers while maintaining US port coverage.</div>

The carrier said that network adjustments that began in April will allow it to eliminate the impact of new US port fees for ships built in China on its shipper customers while maintaining US port coverage.

<div class="phx-topic">CMA CGM does not plan to charge shippers for the port fees it may face next month for using Chinese-built container ships in service on US trades, nor will it reduce US port coverage on those routes. The container carrier said Wednesday that it has made “fleet and operational adjustments” ahead of the Oct. 14 start date for <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">the US Trade Representative’s (USTR) new fees on Chinese-built and -operated ships calling US ports</a>. As such, CMA CGM “is not considering implementation of a surcharge on cargo shipped to or from the US at this time,” the company said. The fees, which could amount to <a href="https://www.joc.com/article/us-port-tax-would-scramble-ocean-services-raise-shipper-costs-drewry-5952046">anywhere from $1 million to $3 million for the first US port call</a> and will escalate through 2028, resulted from federal investigations into Chinese dominance of the maritime industry that <a href="https://www.joc.com/article/us-port-tax-would-scramble-ocean-services-raise-shipper-costs-drewry-5952046">spanned the administrations of presidents Joe Biden and Donald Trump</a>. “During the 180-day grace period following the April 17 USTR announcement, CMA CGM has taken the necessary steps to implement a robust and adaptive contingency plan,” the carrier said. “We currently expect to both maintain our service coverage to all scheduled US ports and minimize any impacts of the upcoming USTR fees.” Over the last six months, 141 different ships operated by CMA CGM called US ports, 22 of which were built in China, according to data from Sea-Web, a sister company of the Journal of Commerce within S&amp;P Global. While some of those ships appear to be extra-loaders or making ad-hoc calls, a few ships that regularly called US ports appear to have been redeployed to serve non-US ports. In particular, CMA CGM removed larger post-Panamax ships that would be subject to higher fees due to their capacity. For example, the CMA CGM Hermes, a 15,000-TEU ship built in Shanghai, has made 44 calls to the US over the last five years, but its last arrival at a US port was on March 31, according to Sea-Web. Since then, the ship has operated on CMA CGM’s Phoenician Express service between Asia and the Middle East. Sister ship CMA CGM Osiris, which last called Oakland in April, is likewise now serving the Middle East. The 15,000-TEU CMA CGM Zephyr, which made 33 port calls to the US over the last five years, is now dispatched to the carrier’s West Africa Express service. <h3>New orders skew toward China </h3>CMA CGM’s active global container fleet has slightly more tonnage built in South Korea, while its order book of new ships has more capacity slated for construction at shipyards in China. According to Sea-Web, CMA CGM currently operates 274 container ships built in South Korea with a combined capacity of 2.18 million TEUs, 253 vessels (1.4 million TEUs) from yards in mainland China, and 125 ships built in Japan, Taiwan or Europe. The carrier has an additional 59 ships on order from China and 29 from South Korea. That sourcing diversification should allow CMA CGM to mitigate the new fees, CFO Ramon Fernandez said during <a href="https://www.joc.com/article/cma-cgms-q2-earnings-slide-as-geopolitics-tariffs-hit-shipping-business-6052414">a July interview with the Journal of Commerce</a>, adding that the carrier wants to <a href="https://www.joc.com/article/cma-cgm-to-invest-20-billion-in-us-shipping-ports-and-logistics-5957748">support the Trump administration’s bid to restore the US shipbuilding industry</a>. “Part of our fleet is being built in in China, part of our fleet is being built in Korea, and so we will be able to manage whatever kind of regulation imposed on us,” Fernandez said. “We are also planning and working on building some vessels in the US, and we are currently discussing with different stakeholders in order to make sure that we can have competitive prices when we consider building ships in the US.” Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>.Senior Editor Greg Knowler contributed to this article. </div>

CMA CGM does not plan to charge shippers for the port fees it may face next month for using Chinese-built container ships in service on US trades, nor will it reduce US port coverage on those routes. The container carrier said Wednesday that it has made “fleet and operational adjustments” ahead of the Oct. 14 start date for the US Trade Representative’s (USTR) new fees on Chinese-built and -operated ships calling US ports . As such, CMA CGM “is not considering implementation of a surcharge on cargo shipped to or from the US at this time,” the company said. The fees, which could amount to anywhere from $1 million to $3 million for the first US port call and will escalate through 2028, resulted from federal investigations into Chinese dominance of the maritime industry that spanned the administrations of presidents Joe Biden and Donald Trump . “During the 180-day grace period following the April 17 USTR announcement, CMA CGM has taken the necessary steps to implement a robust and adaptive contingency plan,” the carrier said. “We currently expect to both maintain our service coverage to all scheduled US ports and minimize any impacts of the upcoming USTR fees.” Over the last six months, 141 different ships operated by CMA CGM called US ports, 22 of which were built in China, according to data from Sea-Web, a sister company of the Journal of Commerce within S&P Global. While some of those ships appear to be extra-loaders or making ad-hoc calls, a few ships that regularly called US ports appear to have been redeployed to serve non-US ports. In particular, CMA CGM removed larger post-Panamax ships that would be subject to higher fees due to their capacity. For example, the CMA CGM Hermes, a 15,000-TEU ship built in Shanghai, has made 44 calls to the US over the last five years, but its last arrival at a US port was on March 31, according to Sea-Web. Since then, the ship has operated on CMA CGM’s Phoenician Express service between Asia and the Middle East. Sister ship CMA CGM Osiris, which last called Oakland in April, is likewise now serving the Middle East. The 15,000-TEU CMA CGM Zephyr, which made 33 port calls to the US over the last five years, is now dispatched to the carrier’s West Africa Express service. New orders skew toward China CMA CGM’s active global container fleet has slightly more tonnage built in South Korea, while its order book of new ships has more capacity slated for construction at shipyards in China. According to Sea-Web, CMA CGM currently operates 274 container ships built in South Korea with a combined capacity of 2.18 million TEUs, 253 vessels (1.4 million TEUs) from yards in mainland China, and 125 ships built in Japan, Taiwan or Europe. The carrier has an additional 59 ships on order from China and 29 from South Korea. That sourcing diversification should allow CMA CGM to mitigate the new fees, CFO Ramon Fernandez said during a July interview with the Journal of Commerce, adding that the carrier wants to support the Trump administration’s bid to restore the US shipbuilding industry . “Part of our fleet is being built in in China, part of our fleet is being built in Korea, and so we will be able to manage whatever kind of regulation imposed on us,” Fernandez said. “We are also planning and working on building some vessels in the US, and we are currently discussing with different stakeholders in order to make sure that we can have competitive prices when we consider building ships in the US.” Contact Michael Angell at michael.angell@spglobal.com . Senior Editor Greg Knowler contributed to this article.

Trans-Pacific

Container lines

CMA CGM reroutes China-built ships to avoid US port fees

<div class="phx-topic abstract-wrapper">The World Shipping Council’s fight to have the FMC revise a key aspect of OSRA-22 hinges on how far the agency’s regulatory power extends into freight rates. </div>

The World Shipping Council’s fight to have the FMC revise a key aspect of OSRA-22 hinges on how far the agency’s regulatory power extends into freight rates.

<div class="phx-topic">A federal appeals court on Tuesday began weighing whether maritime regulators should consider high freight rates as evidence of ocean carriers unfairly refusing to serve cargo owners, in a test of how far regulators can go to protect US exporters. Yesterday, the D.C. Circuit Court of Appeals heard arguments from the World Shipping Council in its challenge of the Federal Maritime Commission’s (FMC) <a href="https://www.joc.com/article/ocean-carriers-face-new-fmc-rules-on-dealing-with-us-exporters-5703241">July 2024 rulemaking on the “unreasonable refusal to deal” provision</a> of the Ocean Shipping Reform Act of 2022 (OSRA-22). Congress included the provision to protect <a href="https://www.joc.com/article/us-regulators-warn-container-lines-on-obligation-to-serve-exporters-5251170">US agriculture shippers who faced record-high freight rates and limited container space during COVID-19</a>. To enforce the provision, the FMC’s rulemaking said that an ocean carrier “quoting rates that are so far above current market rates” could be considered evidence for unfairly refusing vessel space to a shipper, allowing them to bring a complaint to the agency. However, Robert McGovern, an attorney for the World Shipping Council, which filed suit last September to have the FMC revise the rule, told the three-judge panel that the FMC overstepped its authority in that rule because Congress ended the FMC’s regulatory oversight of freight rates in 1984. Thus, that year, the agency began allowing carriers and cargo owners to enter private service contracts, instead of all freight moving under publicly filed tariffs. “There’s no scenario where a regulator that does not have statutory ratemaking authority can then turn around and tell regulated entities their rates are too high,” McGovern said. Under the rule, a shipper could leverage a complaint against an ocean carrier to negotiate a freight rate downward until the FMC determines a fair freight rate, McGovern said. “If that’s not rate setting, I don’t know what is,” he added. <h3>Rates only one factor: FMC </h3>The FMC, however, is only looking at rates as one factor in whether a carrier is refusing to deal with a shipper, not whether the rates themselves are too high, the agency’s attorney Harry Summers argued. Even though US ag shippers wanted to container space, ocean carriers used high rates to effectively turn away that business, he added. “Congress wanted the commission to strengthen this rule to avoid that,” Summers said. “It would be an easy way to achieve the same result of refusing to deal at all if they quote a rate that is absurdly high.” Other parts of US shipping law give the FMC oversight of rates and whether shippers are being charged nondiscriminatory rates, Summers said. The 2024 rulemaking is inline with those other aspects of shipping law, he said, adding that the agency employs economists and industry experts to determine what market rates are for ocean shipping. “Rates and charges are specifically provided for as something that the agency should look at,” Summers said. “Even though the commission can no longer set rates, it can evaluate rates to enforce other parts of the shipping act.” Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

A federal appeals court on Tuesday began weighing whether maritime regulators should consider high freight rates as evidence of ocean carriers unfairly refusing to serve cargo owners, in a test of how far regulators can go to protect US exporters. Yesterday, the D.C. Circuit Court of Appeals heard arguments from the World Shipping Council in its challenge of the Federal Maritime Commission’s (FMC) July 2024 rulemaking on the “unreasonable refusal to deal” provision of the Ocean Shipping Reform Act of 2022 (OSRA-22). Congress included the provision to protect US agriculture shippers who faced record-high freight rates and limited container space during COVID-19 . To enforce the provision, the FMC’s rulemaking said that an ocean carrier “quoting rates that are so far above current market rates” could be considered evidence for unfairly refusing vessel space to a shipper, allowing them to bring a complaint to the agency. However, Robert McGovern, an attorney for the World Shipping Council, which filed suit last September to have the FMC revise the rule, told the three-judge panel that the FMC overstepped its authority in that rule because Congress ended the FMC’s regulatory oversight of freight rates in 1984. Thus, that year, the agency began allowing carriers and cargo owners to enter private service contracts, instead of all freight moving under publicly filed tariffs. “There’s no scenario where a regulator that does not have statutory ratemaking authority can then turn around and tell regulated entities their rates are too high,” McGovern said. Under the rule, a shipper could leverage a complaint against an ocean carrier to negotiate a freight rate downward until the FMC determines a fair freight rate, McGovern said. “If that’s not rate setting, I don’t know what is,” he added. Rates only one factor: FMC The FMC, however, is only looking at rates as one factor in whether a carrier is refusing to deal with a shipper, not whether the rates themselves are too high, the agency’s attorney Harry Summers argued. Even though US ag shippers wanted to container space, ocean carriers used high rates to effectively turn away that business, he added. “Congress wanted the commission to strengthen this rule to avoid that,” Summers said. “It would be an easy way to achieve the same result of refusing to deal at all if they quote a rate that is absurdly high.” Other parts of US shipping law give the FMC oversight of rates and whether shippers are being charged nondiscriminatory rates, Summers said. The 2024 rulemaking is inline with those other aspects of shipping law, he said, adding that the agency employs economists and industry experts to determine what market rates are for ocean shipping. “Rates and charges are specifically provided for as something that the agency should look at,” Summers said. “Even though the commission can no longer set rates, it can evaluate rates to enforce other parts of the shipping act.” Contact Michael Angell at michael.angell@spglobal.com

Transport, Trade and Regulation News

DC court hears challenge to FMC rulemaking on refusal to deal

<div class="phx-topic abstract-wrapper">The Aug. 29 global removal of duty-free access for low-value US imports comes ahead of the end-of-year peak season for air freight. </div>

The Aug. 29 global removal of duty-free access for low-value US imports comes ahead of the end-of-year peak season for air freight.

<div class="phx-topic">Small and medium-sized businesses will shoulder most of the higher costs accrued through the elimination of “de minimis” exemption allowing low-value imports to avoid US duties, hurting air cargo volumes in the upcoming end-of-peak season, according to industry executives. After scrapping the duty-free exemption for low-value imports from China valued at under $800 on May 2, the White House on Aug. 29 extended the de minimis removal globally. Shipments that previously entered the US duty-free under Section 321 (the de minimis statute) must now follow standard entry procedures, including full customs filings. All imports, except letters and documents with no value and purely private shipments of gifts with a value under $100, now face duties. “Small and medium-sized exporters will have a massive problem,” Ronald Kleijwegt, CEO at Vinturas, a global supply chain collaboration network, told the Journal of Commerce. “A big portion of e-commerce is related to SMEs, not just the big Temus and Sheins of the world.” Compliance with the new rules will require substantial modification of shipment control processes, leading to <a href="https://www.joc.com/article/postal-groups-cite-customs-compliance-issues-in-us-shipment-suspensions-6070276">the suspension of postal shipments to the US</a> by many state and private organizations, citing their inability to comply with the timeline provided by Customs and Border Protection. The closing of that particular channel to the US will have a significant impact on the margins of small and medium-sized enterprise (SMEs), Kleijwegt warned. ”If you’re a small company in the UK or in the Netherlands with an e-commerce shop sending products to importers in the US that are valued at under $800, they would go through customs with no problem,” he said. “The shipment will be stopped at customs, and there will be import duty to be paid. The question is, will importers be willing to pay the duty and pass it on, and will customers be prepared to pay for the more expensive products,” Kleijwegt noted. <h3>Update pricing to reflect new customs duties </h3>In a recent customer notice, Maersk alluded to the potential loss of competitiveness facing customers. The carrier advised shippers to pause low-value US shipments until customs rules were clarified, while at the same time updating product pricing to reflect any added duties and to explore US-based warehousing or fulfilment solutions “to stay competitive.” Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, highlighted the effect of the US rule change on SMEs in an August market update. “A lot of people think of de minimis as being about B2C (business-to-consumer), but the de minimis changes now in effect are also a big thing for B2B (business-to-business) into the US, and we are already seeing some SME businesses reacting to, and challenging, this impact,” he said. Van de Wouw warned that the removal of the de minimis rule may have “a profound effect” on the end-of-year air freight peak season. “The starting point for closing the de minimis threshold was mainly politically motivated against the big Chinese e-commerce platforms,” he said. “But the widening of this legislation is leveling the playing field again for all e-commerce shipments entering the US, and I would now expect to see lower e-commerce volumes moving by air from Europe to the US.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Small and medium-sized businesses will shoulder most of the higher costs accrued through the elimination of “de minimis” exemption allowing low-value imports to avoid US duties, hurting air cargo volumes in the upcoming end-of-peak season, according to industry executives. After scrapping the duty-free exemption for low-value imports from China valued at under $800 on May 2, the White House on Aug. 29 extended the de minimis removal globally. Shipments that previously entered the US duty-free under Section 321 (the de minimis statute) must now follow standard entry procedures, including full customs filings. All imports, except letters and documents with no value and purely private shipments of gifts with a value under $100, now face duties. “Small and medium-sized exporters will have a massive problem,” Ronald Kleijwegt, CEO at Vinturas, a global supply chain collaboration network, told the Journal of Commerce. “A big portion of e-commerce is related to SMEs, not just the big Temus and Sheins of the world.” Compliance with the new rules will require substantial modification of shipment control processes, leading to the suspension of postal shipments to the US by many state and private organizations, citing their inability to comply with the timeline provided by Customs and Border Protection. The closing of that particular channel to the US will have a significant impact on the margins of small and medium-sized enterprise (SMEs), Kleijwegt warned. ”If you’re a small company in the UK or in the Netherlands with an e-commerce shop sending products to importers in the US that are valued at under $800, they would go through customs with no problem,” he said. “The shipment will be stopped at customs, and there will be import duty to be paid. The question is, will importers be willing to pay the duty and pass it on, and will customers be prepared to pay for the more expensive products,” Kleijwegt noted. Update pricing to reflect new customs duties In a recent customer notice, Maersk alluded to the potential loss of competitiveness facing customers. The carrier advised shippers to pause low-value US shipments until customs rules were clarified, while at the same time updating product pricing to reflect any added duties and to explore US-based warehousing or fulfilment solutions “to stay competitive.” Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, highlighted the effect of the US rule change on SMEs in an August market update. “A lot of people think of de minimis as being about B2C (business-to-consumer), but the de minimis changes now in effect are also a big thing for B2B (business-to-business) into the US, and we are already seeing some SME businesses reacting to, and challenging, this impact,” he said. Van de Wouw warned that the removal of the de minimis rule may have “a profound effect” on the end-of-year air freight peak season. “The starting point for closing the de minimis threshold was mainly politically motivated against the big Chinese e-commerce platforms,” he said. “But the widening of this legislation is leveling the playing field again for all e-commerce shipments entering the US, and I would now expect to see lower e-commerce volumes moving by air from Europe to the US.” Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Forwarder News

Air Cargo

Elimination of US ‘de minimis’ rule hits SMEs hardest

<div class="phx-topic abstract-wrapper">The two Class I railroads will collaborate on a service to replace the trucking leg for goods moving from CN’s Memphis terminal to the Music City.</div>

The two Class I railroads will collaborate on a service to replace the trucking leg for goods moving from CN’s Memphis terminal to the Music City.

<div class="phx-topic">Canadian National Railway and CSX Transportation are planning a new international intermodal service from Canada’s West Coast into Nashville, expanding shipper options outside of the US Southeast. The signing of a memorandum by the two Class I railroads paves the way for a more direct, and thus, faster service and another option beyond routing in and out of the port of Savannah. The move is the latest integration between railroads amid <a href="https://www.joc.com/article/up-looks-to-create-first-coast-to-coast-railroad-with-85-billion-ns-deal-6052288">the planned transcontinental merger of Union Pacific-Norfolk Southern</a>, which would create the largest North American railroad. CN offers service from Canada’s West Coast into Memphis but not into Nashville. The service would replace an approximately 200-mile truck trip for international containers from Memphis to Nashville, using CSX tracks. In an average year, about 20,000 ocean containers are railed from Vancouver to Memphis, according to a Journal of Commerce analysis of data from the US Surface Transportation Board, but with very little export cargo moving in the other direction. It’s unclear how many of those containers remain in Memphis versus getting drayed to Nashville. CSX’s Nashville terminal currently has inbound international service from the ports of Los Angeles, Seattle-Tacoma, Savannah and Charleston, with outbound service to Savannah and Charleston. In August, CSX announced plans to <a href="https://www.joc.com/article/bnsf-csx-unveil-new-joint-intermodal-lanes-in-aftermath-of-up-ns-merger-6067789">develop international intermodal routes with BNSF Railway from the West Coast to the Southeast</a>. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Canadian National Railway and CSX Transportation are planning a new international intermodal service from Canada’s West Coast into Nashville, expanding shipper options outside of the US Southeast. The signing of a memorandum by the two Class I railroads paves the way for a more direct, and thus, faster service and another option beyond routing in and out of the port of Savannah. The move is the latest integration between railroads amid the planned transcontinental merger of Union Pacific-Norfolk Southern , which would create the largest North American railroad. CN offers service from Canada’s West Coast into Memphis but not into Nashville. The service would replace an approximately 200-mile truck trip for international containers from Memphis to Nashville, using CSX tracks. In an average year, about 20,000 ocean containers are railed from Vancouver to Memphis, according to a Journal of Commerce analysis of data from the US Surface Transportation Board, but with very little export cargo moving in the other direction. It’s unclear how many of those containers remain in Memphis versus getting drayed to Nashville. CSX’s Nashville terminal currently has inbound international service from the ports of Los Angeles, Seattle-Tacoma, Savannah and Charleston, with outbound service to Savannah and Charleston. In August, CSX announced plans to develop international intermodal routes with BNSF Railway from the West Coast to the Southeast . Contact Michael Angell at michael.angell@spglobal.com

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In today’s competitive logistical landscape, efficiency is an absolute necessity for smooth operations. Yet, in the barge sector, many operators still rely on fragmented systems, delayed updates, and manual tracking methods that slow decision-making and increase operational risk. OpenTug’s new eBook, How Enhanced Visibility Transforms Barge Operations, reveals how unified, real-time data can become your competitive advantage leading to improved voyage management and more actionable insights. Drawing on industry best practices and real-world examples, it explores how operational transparency empowers teams to: ●	Reduce delays with accurate ETAs and proactive scheduling decisions ●	Improve asset utilization by identifying underused equipment and optimizing cargos ●	Strengthen safety and compliance through consistent, accessible documentation and reporting ●	Boost customer satisfaction with transparent status updates and faster response time You’ll learn how visibility can connect every part of your operation into a single, actionable view. The ability to see and act on real-time information transforms the way you plan, execute, and deliver. From managing a small regional fleet to running a large, national operation, this eBook will help you understand the measurable benefits of enhanced visibility and how technology like BargeOS is transforming the way barge logistics is managed. Get your copy today and see how clear insights lead to stronger performance, smarter decisions, and more profitable operations. <a href="https://9315820.fs1.hubspotusercontent-na1.net/hubfs/9315820/eBook/Nav-theFuture-AJW-08.19.25.pdf" rel="noreferrer" class="joc_admin__link">Click here</a><span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1756152344211_Opentug%20logo.png" alt="" class="joc_admin__inline-image-inherit">

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: <a href="https://www.ssamarine.mx/" rel="noreferrer" class="joc_admin__link">https://www.ssamarine.mx/</a>

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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