<div class="phx-topic abstract-wrapper">The port will go ahead with the first phase of developing more container handling capability at its second-largest marine terminal, which is also providing temporary parking for big ships. </div>

The port will go ahead with the first phase of developing more container handling capability at its second-largest marine terminal, which is also providing temporary parking for big ships.

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<div>The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority (GPA) this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected...

The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority (GPA) this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement. While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. That berth is now available as a “parking spot” for ships to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. Lay berth cutting idle time The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three.The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 container ships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at michael.angell@spglobal.com .

Port News

North American ports

Marine terminals

Container Shipping News

Maritime

Savannah to fund Ocean Terminal improvements as lay berth opens

<div class="phx-topic">The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority (GPA) this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement. While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. <a href="https://www.joc.com/article/savannahs-parking-spot-targets-idle-time-for-ships-main-terminal-5964038">That berth is now available as a “parking spot” for ships</a> to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. <h3>Lay berth cutting idle time </h3>The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three.The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 container ships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

<div class="phx-topic abstract-wrapper">Mario Cordero has frequently said that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations.</div>

Mario Cordero has frequently said that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations.

<div class="phx-topic">Mario Cordero, who, as executive director of the Port of Long Beach, oversaw the port’s 28% growth in container volumes over the past eight years, will retire at the end of 2025. The Long Beach Board of Harbor Commissioners will meet “soon ... to discuss next steps for a transition plan,” the port said in a statement Thursday. “I could not be more grateful for what has been the opportunity of a lifetime to lead the Port of Long Beach,” Cordero said in the statement. Before becoming Long Beach’s executive director in May 2017, Cordero served as a Long Beach harbor commissioner and was a member of the Federal Maritime Commission (FMC) in Washington. He’s a Los Angeles native who practiced law for more than 30 years. Cordero has frequently said in public appearances that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations. He proposed the port’s green initiative in 2003 while serving as a member of the Long Beach Board of Harbor Commissioners. The board ratified the Green Port Policy in 2005. Cordero served as a member of the port’s governing board from 2003 until being appointed to the FMC by President Barack Obama in 2011. He served as FMC chairman from 2013 to 2017. He left the FMC in May 2017 to become executive director of the Port of Long Beach. The port handled 7.5 million laden and empty TEUs in 2017, Cordero’s first year as executive director. Last year, Long Beach moved 9.6 million TEUs, according to the port’s website. “Mario has always stepped up to serve...,” Long Beach Mayor Rex Richardson said in the statement. “He has guided one of the world’s busiest seaports through unprecedented times with vision and steady leadership.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Mario Cordero, who, as executive director of the Port of Long Beach, oversaw the port’s 28% growth in container volumes over the past eight years, will retire at the end of 2025. The Long Beach Board of Harbor Commissioners will meet “soon ... to discuss next steps for a transition plan,” the port said in a statement Thursday. “I could not be more grateful for what has been the opportunity of a lifetime to lead the Port of Long Beach,” Cordero said in the statement. Before becoming Long Beach’s executive director in May 2017, Cordero served as a Long Beach harbor commissioner and was a member of the Federal Maritime Commission (FMC) in Washington. He’s a Los Angeles native who practiced law for more than 30 years. Cordero has frequently said in public appearances that his goal as Long Beach’s port director was to grow cargo volumes while promoting environmental sustainability in port operations. He proposed the port’s green initiative in 2003 while serving as a member of the Long Beach Board of Harbor Commissioners. The board ratified the Green Port Policy in 2005. Cordero served as a member of the port’s governing board from 2003 until being appointed to the FMC by President Barack Obama in 2011. He served as FMC chairman from 2013 to 2017. He left the FMC in May 2017 to become executive director of the Port of Long Beach. The port handled 7.5 million laden and empty TEUs in 2017, Cordero’s first year as executive director. Last year, Long Beach moved 9.6 million TEUs, according to the port’s website. “Mario has always stepped up to serve...,” Long Beach Mayor Rex Richardson said in the statement. “He has guided one of the world’s busiest seaports through unprecedented times with vision and steady leadership.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port infrastructure

Cordero to retire at end of 2025 after eight years as Long Beach executive director

<div class="phx-topic">The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement.While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. That berth is now available as a <a href="https://www.joc.com/article/savannahs-parking-spot-targets-idle-time-for-ships-main-terminal-5964038">“parking spot”</a> for ships to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. <h3>Lay berth cutting idle time</h3>The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three. The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 containerships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

The Port of Savannah has approved the first phase in building out container handling capacity at Ocean Terminal, its second-largest marine terminal that has a new role serving as a lay berth for big ships calling the larger Garden City terminal. The lay berth’s startup last month comes as anchorage delays at Savannah have fallen to about one day. The board of the Georgia Ports Authority this week approved $614 million in spending for the first phase of improvements at Ocean Terminal, including the container yard, terminal and other infrastructure. The first phase of the terminal’s renovation is expected to be completed in 2027. A second phase of Ocean Terminal’s buildout will be completed in the second half of 2028 for a total investment in the facility of $1.54 billion, the GPA said in a statement. While Ocean Terminal has limited lift capability for small container ships, the 200-acre site is expected to handle two large container ships simultaneously at full buildout, with nominal capacity of 2 million TEUs per year. Along with berth improvements, the GPA plans to build expanded truck gates and a new exit ramp for trucks from Ocean Terminal. The GPA this spring completed some of the first renovation work at Ocean Terminal, opening a berth to handle super-post-Panamax ships. That berth is now available as a “parking spot” for ships to wait for a working berth at nearby Garden City rather than sit outside the port at anchor and wait out the tidal delays for transiting the Savannah River. “This lay berth, combined with our eight start times for ship labor, creates exciting new possibilities for ships to stay on schedule or make up time,” GPA Chief Executive Griff Lynch said in the statement. Lay berth cutting idle time The GPA said the first ship to use Ocean Terminal’s lay berth arrived in September, cutting 12 to 15 hours of idle time down to about three. The GPA did not identify the vessel, but tracking data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that the Hamburg Sud-operated 9,030-TEU CCNI Arauco arrived at Ocean Terminal on Sept. 11 and spent just over two hours there before proceeding to Garden City. The Arauco spent over two days sitting at anchorage outside of Savannah before calling Ocean Terminal, but that time at anchorage appears to be an outlier. Sea-web data shows the 267 container ships that called Savannah in the third quarter sat at anchorage for an average of just over 29 hours. When the GPA first proposed the lay berth, it was working down a severe backlog of ships sitting outside of Savannah due to winter weather. In the first quarter of 2025, 319 containerships sat at anchor for an average of 61 hours, according to Sea-web. Contact Michael Angell at michael.angell@spglobal.com

<div class="phx-topic abstract-wrapper">In its request for proposals to develop Pier 500, the port will specify that it seeks to contract with a member company of the Pacific Maritime Association that pledges to follow the guidelines for terminal operations on the US West Coast.</div>

In its request for proposals to develop Pier 500, the port will specify that it seeks to contract with a member company of the Pacific Maritime Association that pledges to follow the guidelines for terminal operations on the US West Coast.

<div class="phx-topic">Plans by the Port of Los Angeles to build a new 200-acre, two-berth container terminal are being driven by projections that the Southern California gateway of LA and Long Beach will reach its combined capacity of 40 million TEUs in 2040. The proposed Pier 500 container terminal, which will take about 10 years to complete once construction begins, will position the Southern California port complex of Los Angeles and Long Beach to handle growing cargo volumes well beyond 2040, Gene Seroka, executive director of the Port of Los Angeles, told the Journal of Commerce Thursday. The LA-LB port complex, the largest in the US, handled a combined 19.9 million laden and empty TEUs in 2024, about a 20% increase over the previous year, according to data on the ports’ websites. “Infrastructure like this always has a 20- to 30-year horizon,” Seroka said. Los Angeles earlier this week announced it was seeking proposals for the pre-development of Pier 500, which will have about 3,000 linear feet of available wharf space. It will be located just south of the port’s Pier 400, the largest container terminal in the US and operated by APM Terminals. No cost estimate was provided by the port. The TEU capacity of the new terminal will depend on the type of terminal the winning developer decides to build, whether manual or automated. And an actual construction timeline won’t be known until all environmental clearances are secured.<h3>Will seek PMA member to operate new terminal </h3>In its request for proposals to develop Pier 500, Los Angeles will specify that it seeks to contract with a member company of the Pacific Maritime Association (PMA) that pledges to follow the guidelines for terminal operations on the US West Coast, Seroka said. The PMA, which consists of ocean carriers and terminal operators, negotiates and administers the coastwide waterfront contract with the International Longshore and Warehouse Union (ILWU). The pre-development process will include all necessary environmental assessments required by both state and federal law. “The entire proposed Pier 500 project, from pre-development, entitlement procurement and environmental review and full buildout and operation is expected to take approximately 10 years,” the port said in a statement. Development and construction are expected to move forward faster than most new terminals built on landfill, Seroka said, because the port has identified a submerged 124-acre landfill site that is only 15 feet below the water line. “We’ll cap off the 15 feet, so construction should proceed quicker than for most projects,” Seroka said. “We’ve been dumping rocks there for years from various construction projects.” While construction proceeds, Los Angeles will continue to implement operational improvements at the port and enhance its data-sharing efforts with port stakeholders, including shipping lines, terminal operators, drayage operators, railroads and warehouse operators, to squeeze greater productivity from the existing infrastructure, Seroka said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Plans by the Port of Los Angeles to build a new 200-acre, two-berth container terminal are being driven by projections that the Southern California gateway of LA and Long Beach will reach its combined capacity of 40 million TEUs in 2040. The proposed Pier 500 container terminal, which will take about 10 years to complete once construction begins, will position the Southern California port complex of Los Angeles and Long Beach to handle growing cargo volumes well beyond 2040, Gene Seroka, executive director of the Port of Los Angeles, told the Journal of Commerce Thursday. The LA-LB port complex, the largest in the US, handled a combined 19.9 million laden and empty TEUs in 2024, about a 20% increase over the previous year, according to data on the ports’ websites. “Infrastructure like this always has a 20- to 30-year horizon,” Seroka said. Los Angeles earlier this week announced it was seeking proposals for the pre-development of Pier 500, which will have about 3,000 linear feet of available wharf space. It will be located just south of the port’s Pier 400, the largest container terminal in the US and operated by APM Terminals. No cost estimate was provided by the port. The TEU capacity of the new terminal will depend on the type of terminal the winning developer decides to build, whether manual or automated. And an actual construction timeline won’t be known until all environmental clearances are secured. Will seek PMA member to operate new terminal In its request for proposals to develop Pier 500, Los Angeles will specify that it seeks to contract with a member company of the Pacific Maritime Association (PMA) that pledges to follow the guidelines for terminal operations on the US West Coast, Seroka said. The PMA, which consists of ocean carriers and terminal operators, negotiates and administers the coastwide waterfront contract with the International Longshore and Warehouse Union (ILWU). The pre-development process will include all necessary environmental assessments required by both state and federal law. “The entire proposed Pier 500 project, from pre-development, entitlement procurement and environmental review and full buildout and operation is expected to take approximately 10 years,” the port said in a statement. Development and construction are expected to move forward faster than most new terminals built on landfill, Seroka said, because the port has identified a submerged 124-acre landfill site that is only 15 feet below the water line. “We’ll cap off the 15 feet, so construction should proceed quicker than for most projects,” Seroka said. “We’ve been dumping rocks there for years from various construction projects.” While construction proceeds, Los Angeles will continue to implement operational improvements at the port and enhance its data-sharing efforts with port stakeholders, including shipping lines, terminal operators, drayage operators, railroads and warehouse operators, to squeeze greater productivity from the existing infrastructure, Seroka said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Trans-Pacific

Port of Los Angeles looks to handle future growth with new terminal project

<div class="phx-topic abstract-wrapper">Multiple carrier sources who spoke with the Journal of Commerce say refrigerated volumes from India to the US are already down by as much as 50% from the normal pattern for seafood trade.</div>

Multiple carrier sources who spoke with the Journal of Commerce say refrigerated volumes from India to the US are already down by as much as 50% from the normal pattern for seafood trade.

<div class="phx-topic">Ocean carriers and freight forwarders out of India are reporting significant setbacks in reefer exports to the US as steep tariffs have created an increasingly unfavorable business environment. Indian perishables trades to the US primarily come from the seafood, frozen/packaged food and pharmaceutical industries. The market was initially hit by a 50% tariff effective Aug. 27, with the exception of pharmaceutical products. But the Indian drug industry has now also been targeted by US tariffs, although the full impact there is unknown in the absence of clarity. Multiple carrier sources who spoke with the Journal of Commerce agreed that India reefer volumes to the US are already down by 30% to 50% from the normal pattern for seafood export trades. Sources pegged India’s combined pre-tariff reefer trade to the US at about 750 FEUs a week. “We are seeing vulnerability in shrimp volumes ... it could eventually lead to a more significant decline over time," said Bhavik Mota, Maersk’s director of regional ocean management for India, the Middle East and Africa. “The exports of goods such as pharmaceuticals are holding firm, but we will have to see which way it goes when the new tariff on pharma comes into force." Sanyukta Kulkarni, trade lane manager for the Indian subcontinent at global forwarder DSV, believes the downturn in India-US reefer volumes could become more pronounced in the coming months if there is no relief from the deep “tariff wounds.” “As a forwarder, we are starting to see the impact, but it’s not drastic at the moment as many importers have continued to fulfill their previously committed volumes with suppliers,” Kulkarni said. “Additionally, finding supply chain alternatives to match that scale will take time.” Forwarder sources explained that reefer bookings were expected to be strong between September and October as exporters typically try to rush shipments ahead of the onset of the local Hindu festival season of Diwali that involves extended holidays and factory production cutbacks and closures. <h3>Carriers adjust capacity to manage rates </h3>While reefer booking prices out of India have weakened, forwarders believe major carriers have been able to prevent a sharp fall by adjusting capacity via blank sailings and/or lower reefer plug allotments. Average freight-all-kinds (FAK) or contract rates for reefer loads from Nhava Sheva to New York now stand at $3,000 to $3,200 per FEU, a decline of up to $500 per FEU since early September, sources say. Amid the uncertainty, container lines are devising new strategies to support reefer trade out of India. Ocean Network Express (ONE) recently opened a dedicated intermodal reefer train service from Hyderabad in southern India — a hub for the Indian pharmaceutical industry — to Nhava Sheva Port in tandem with its US East Coast sailings. The US is the largest market for Indian pharmaceutical exports. And thanks to advanced reefer equipment management systems, including remote control capabilities, supply chains for that trade have dramatically consolidated on the ocean leg — 70% to 30% by air freight. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Ocean carriers and freight forwarders out of India are reporting significant setbacks in reefer exports to the US as steep tariffs have created an increasingly unfavorable business environment. Indian perishables trades to the US primarily come from the seafood, frozen/packaged food and pharmaceutical industries. The market was initially hit by a 50% tariff effective Aug. 27, with the exception of pharmaceutical products. But the Indian drug industry has now also been targeted by US tariffs, although the full impact there is unknown in the absence of clarity. Multiple carrier sources who spoke with the Journal of Commerce agreed that India reefer volumes to the US are already down by 30% to 50% from the normal pattern for seafood export trades. Sources pegged India’s combined pre-tariff reefer trade to the US at about 750 FEUs a week. “We are seeing vulnerability in shrimp volumes ... it could eventually lead to a more significant decline over time," said Bhavik Mota, Maersk’s director of regional ocean management for India, the Middle East and Africa. “The exports of goods such as pharmaceuticals are holding firm, but we will have to see which way it goes when the new tariff on pharma comes into force." Sanyukta Kulkarni, trade lane manager for the Indian subcontinent at global forwarder DSV, believes the downturn in India-US reefer volumes could become more pronounced in the coming months if there is no relief from the deep “tariff wounds.” “As a forwarder, we are starting to see the impact, but it’s not drastic at the moment as many importers have continued to fulfill their previously committed volumes with suppliers,” Kulkarni said. “Additionally, finding supply chain alternatives to match that scale will take time.” Forwarder sources explained that reefer bookings were expected to be strong between September and October as exporters typically try to rush shipments ahead of the onset of the local Hindu festival season of Diwali that involves extended holidays and factory production cutbacks and closures. Carriers adjust capacity to manage rates While reefer booking prices out of India have weakened, forwarders believe major carriers have been able to prevent a sharp fall by adjusting capacity via blank sailings and/or lower reefer plug allotments. Average freight-all-kinds (FAK) or contract rates for reefer loads from Nhava Sheva to New York now stand at $3,000 to $3,200 per FEU, a decline of up to $500 per FEU since early September, sources say. Amid the uncertainty, container lines are devising new strategies to support reefer trade out of India. Ocean Network Express (ONE) recently opened a dedicated intermodal reefer train service from Hyderabad in southern India — a hub for the Indian pharmaceutical industry — to Nhava Sheva Port in tandem with its US East Coast sailings. The US is the largest market for Indian pharmaceutical exports. And thanks to advanced reefer equipment management systems, including remote control capabilities, supply chains for that trade have dramatically consolidated on the ocean leg — 70% to 30% by air freight. Contact Bency Mathew at bencyvmathew@gmail.com .

Cool Cargo News

Tariffs lead to sharp decline in Indian reefer exports to US: industry sources

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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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Filling the Supply Chain Education Gap with LTL Education Courses

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