<div class="phx-topic abstract-wrapper">New forwarding and ocean services are being added to South American trade lanes as service providers move to capture rising trade growth in the region.</div>

New forwarding and ocean services are being added to South American trade lanes as service providers move to capture rising trade growth in the region.

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<div>Forwarders and carriers are investing heavily in South American ports and logistics businesses, and are adding services to the region to capitalize on growing trade volumes and sourcing shifts from diversifying supply chains. The risk-based approach being adopted by manufacturers in adding sourcing locations to their global production is increasing import and export volume from regions such as Latin America, despite the difficulty in replicating deeply established supplier and production networks in China. “Countries we see investment to move manufacturing operations include Argentina, Brazil, Colombia and Peru across a wide spectrum of industries, encompassing textile, pharmaceutical, renewable energy, and information...

Forwarders and carriers are investing heavily in South American ports and logistics businesses, and are adding services to the region to capitalize on growing trade volumes and sourcing shifts from diversifying supply chains. The risk-based approach being adopted by manufacturers in adding sourcing locations to their global production is increasing import and export volume from regions such as Latin America, despite the difficulty in replicating deeply established supplier and production networks in China. “Countries we see investment to move manufacturing operations include Argentina, Brazil, Colombia and Peru across a wide spectrum of industries, encompassing textile, pharmaceutical, renewable energy, and information technology sectors,” Tobias Bartz, CEO and chairman of the Rhenus Group, told the Journal of Commerce. Germany-based Rhenus earlier this month acquired BLU Logistics, a Latin American forwarder with operations in Argentina, Colombia, Ecuador, Mexico, Paraguay, Uruguay and China with more than 180,000 TEUs of ocean freight volume. Rhenus also acquired a majority share in LBH Group, a port agency present in six South American countries. Financial terms of the acquisitions were not disclosed. “Latin America's distinct advantages lie in its strategic combination of geographical proximity, strong partnerships with developed economies and the maturity required to deliver high-quality services,” Bartz said. “This has not only meant that new companies are entering the market but also that there has been an increase in the production of companies that were already established in the countries,” he added. Focal point for development Brian Schaaf Martinez, senior trade lane manager for trans-Pacific eastbound at Hellmann Worldwide Logistics, said Latin America was a focal point for development within the forwarder’s portfolio, noting that Hellmann’s North America and Latin America divisions were combined in July 2022. However, even with the growth in demand for logistics services, it was a difficult market, he added. “Although the pace of development in this region continues to be positive and steady, the high concentration of commodities, and them being traditionally linked to direct BCO [beneficial cargo owner] participation, makes it a tough market where exponential growth can be seen,” Martinez told the Journal of Commerce. Once business was secured, a series of challenges in the region had to be managed. “There’s the lack of an efficient infrastructure if compared to some of the European and Asian ports, political-governmental factors playing a role in the way we operate, tedious documentation processes that can lead to additional costs and delays, as well as security concerns in some areas across the region,” he said. While Hellmann unifies its Americas network to manage these issues and Rhenus makes large acquisitions to cater to the growing volume, global rival DHL Supply Chain has targeted the development of fulfillment centers and infrastructure for customers looking to diversify their sourcing into the growing market. The German-headquartered logistics provider will invest $551 million in Latin America by 2028 to boost its presence in the region. Improving access to container terminals and inland depots is also on the investment list, with Hapag-Lloyd in August finalizing the acquisition of Chile-based terminal operator and logistics group Saam for $1 billion, giving the carrier stakes in 10 container terminals in the Americas. APM Terminals, a unit of the A.P. Møller-Maersk group, is investing $500 million in a new terminal in Suape, Brazil, and has committed another $700 million to four other terminals and inland depots in the country. Terminal control important Hapag-Lloyd spokesperson Tim Seifert said Latin America was one of the carrier’s main markets, and strong growth in both import and export markets was making control of terminal infrastructure increasingly important. “The recent acquisition of Saam Terminals will help us to further strengthen our business while building up a robust and attractive terminal portfolio,” Seifert told the Journal of Commerce. “Although we have seen a 3% decline in volumes on the Latin America trade in the first half given weaker markets compared to the prior year, trade lanes from and to Latin America are expected to further increase in attractiveness, for example due to e-commerce demand from Asia and export of perishable goods to Asia,” he added. The latest carriers to enter the trade are Ocean Network Express (ONE), Cosco Shipping Lines and its Hong Kong-headquartered subsidiary Orient Overseas Container Line (OOCL), which launched a weekly ECSA-Europe-Mediterranean service from Montevideo on Sept. 16 targeting South American exports. Container volume on the South and Central America to North America trade of 1.45 million TEUs was a drop of 6.6% year over year from January through July, but reefer containers at 522,434 TEUs was slightly up on the same period last year, according to Container Trades Statistics (CTS). Export volume from North America to South and Central America fell 7.7% in the first seven months to 1.6 million TEUs. Liner metrics show both the number of services and vessels deployed between South America and Europe and the Mediterranean have risen in the last four years, but have dropped on the South America-North America corridor. Container shipping data compiled by MDS Transmodal for the Journal of Commerce shows quarterly deployed capacity on South America-North America services rose 6.8% to 395,572 TEUs in the second quarter compared with four years ago, although the number of ships deployed on the trade fell from 47 to 42. Europe overtakes US as main export market However, the volume of deployed capacity to Europe and the Mediterranean is overtaking the US as a key container trade for East Coast of South America (ECSA) exports, especially from Brazil, with carriers launching new services and deploying more vessels on the corridor. A total of 43 vessels were deployed on Latin America-Europe-Mediterranean services in the second quarter this year, up from 39 in the 2019 second quarter. The number of services increased from five to six in the same period. “We have detected new growth in the routes (from Latin America) to North America and Europe due to the new services that the shipping lines are incorporating, improving transit times and placing additional connections to cover more markets,” Bartz said. “Trade between Europe and Latin America, especially in perishable products, is substantial,” he added. “Trade between Asia and Latin America is booming. Ports like Callao in Peru and Valparaíso in Chile are crucial for refrigerated container trade between these regions.” DHL Global Forwarding noted in a September market update that the strong import and export volume growth was keeping vessel utilization above 95% on the trades in and out of South America with some carriers rolling cargo. "There was an influx of additional capacity during August on the Asia to ECSA trade, and several carriers are offering alternative services from Asia to the East Coast in transshipment through their European services,” DHL reported. While the ocean shipping is growing, so too is the air cargo market, especially in the perishables sector, Bartz said. “In Chile, we’ve diligently prepared over four consecutive months for the upcoming air export season for berries, such as cherries and blueberries, which play a crucial role in the region,” he told the Journal of Commerce. “This year Chile anticipates a 10% to 15% increase (in Asian imports of cherries) compared with 2022, based on discussions with air carriers, as well as feedback from our customers who have already started receiving purchase orders and preparing for the harvests,” Bartz said. Contact Greg Knowler at greg.knowler@spglobal.com and follow him on Twitter: @greg_knowler .

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Sourcing shift causes surge in South American logistics investment

<div class="phx-topic abstract-wrapper">The fresh disruptions come as the Asia-Europe trade lane continues to present shippers with the worst schedule reliability among the major ocean corridors. </div>

The fresh disruptions come as the Asia-Europe trade lane continues to present shippers with the worst schedule reliability among the major ocean corridors.

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<div class="phx-topic">Rotterdam and Antwerp are facing increasing congestion this week as strike action from auxiliary companies significantly disrupts container handling operations at Europe’s two busiest ports. Flemish pilotage services have only been working during office hours since Monday in a dispute over recent federal pension reforms, severely disrupting vessel arrivals and departures in the Belgian hubs of Antwerp and Zeebrugge. In Rotterdam, container lashing companies embarked on a two-day strike on Wednesday in a dispute over working conditions and wages. The strike is affecting all major terminals in Rotterdam: APM Terminals Maasvlakte II, Hutchinson Ports Delta II, ECT Delta and Rotterdam World Gateway. A Maersk advisory said the suspension of services was significantly impacting operations, given that lashing is critical to the safe securing and release of containers on board vessels. Kuehne + Nagel echoed Maersk’s concerns in an advisory of its own, warning that in addition to the impact on container vessel handling, the 48-hour strike at Rotterdam will significantly disrupt inland container transport operations. “These developments place further strain on the port, which was already significantly affected by last weekend’s storm-related closures,” Kuehne + Nagel noted. The strikes add further pain to the overall Asia-Europe trade lane that continues to present shippers with the worst schedule reliability among the major ocean corridors. On-time performance recorded in September was 23%, according to industry analyst Xeneta. While the performance is a slight improvement on the 17% reliability seen in August, persistent port congestion across the main North Europe gateways is a factor keeping schedule reliability at dismal levels. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="cce7dbee-2611-492e-9c9e-325c0aa7d3fe"></dynamic-object></div>Destine Ozuygur, product marketing manager at Xeneta, noted that port congestion and operational hurdles were major contributing factors to the poor on-time performance, but if they were to disappear overnight it would still not resolve poor reliability issues on Asia-Europe. “Longer transits and ensuing injection of larger-capacity vessels is the defining factor here,” Ozuygur told the Journal of Commerce. “Port issues or tricky alliance handovers do serve to exacerbate those underlying problems, but they wouldn’t help reliability recover if resolved.” <h3>Gemini reliability showing signs of ‘wear’ </h3>The poor Asia-Europe schedule reliability is also taking a toll on the Gemini Cooperation between Maersk and Hapag-Lloyd. Although the alliance continues to lead Xeneta’s global reliability tables, Gemini is showing shows signs of wear on Asia-Europe, closing September with 81% of on-time arrivals. Gemini was launched in February <a href="https://www.joc.com/article/tpm25-gemini-hitting-90-reliability-target-as-new-network-rolls-out-habben-jansen-5955794">on the premise of delivering 90%-plus schedule reliability</a> to the market. Ozuygur said none of the other alliances came close to matching Gemini’s performance across any trade, but how long Gemini could hold out under these conditions remained unclear. ”Asia-Europe [poor reliability] affecting all alliances and carriers negatively shows us that there are some factors even a remodeled hub-and-spoke can’t effectively outmaneuver,” she said. “While their clever model doesn’t make [Gemini] impervious to these negative reliability factors, it’s more likely that they would hit a limit of wear and maintain that, still significantly above the other alliances,” Ozuygur added. The Premier Alliance has continued to decline against its global Q2 average of 26%, closing the third quarter with 21% on-time performance, Xeneta data shows. Ocean Alliance fell to 24% globally in Q3, the worst on-time performance of the longstanding alliance since its 27% average in the fourth quarter of 2022. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Rotterdam and Antwerp are facing increasing congestion this week as strike action from auxiliary companies significantly disrupts container handling operations at Europe’s two busiest ports. Flemish pilotage services have only been working during office hours since Monday in a dispute over recent federal pension reforms, severely disrupting vessel arrivals and departures in the Belgian hubs of Antwerp and Zeebrugge. In Rotterdam, container lashing companies embarked on a two-day strike on Wednesday in a dispute over working conditions and wages. The strike is affecting all major terminals in Rotterdam: APM Terminals Maasvlakte II, Hutchinson Ports Delta II, ECT Delta and Rotterdam World Gateway. A Maersk advisory said the suspension of services was significantly impacting operations, given that lashing is critical to the safe securing and release of containers on board vessels. Kuehne + Nagel echoed Maersk’s concerns in an advisory of its own, warning that in addition to the impact on container vessel handling, the 48-hour strike at Rotterdam will significantly disrupt inland container transport operations. “These developments place further strain on the port, which was already significantly affected by last weekend’s storm-related closures,” Kuehne + Nagel noted. The strikes add further pain to the overall Asia-Europe trade lane that continues to present shippers with the worst schedule reliability among the major ocean corridors. On-time performance recorded in September was 23%, according to industry analyst Xeneta. While the performance is a slight improvement on the 17% reliability seen in August, persistent port congestion across the main North Europe gateways is a factor keeping schedule reliability at dismal levels. Destine Ozuygur, product marketing manager at Xeneta, noted that port congestion and operational hurdles were major contributing factors to the poor on-time performance, but if they were to disappear overnight it would still not resolve poor reliability issues on Asia-Europe. “Longer transits and ensuing injection of larger-capacity vessels is the defining factor here,” Ozuygur told the Journal of Commerce. “Port issues or tricky alliance handovers do serve to exacerbate those underlying problems, but they wouldn’t help reliability recover if resolved.” Gemini reliability showing signs of ‘wear’ The poor Asia-Europe schedule reliability is also taking a toll on the Gemini Cooperation between Maersk and Hapag-Lloyd. Although the alliance continues to lead Xeneta’s global reliability tables, Gemini is showing shows signs of wear on Asia-Europe, closing September with 81% of on-time arrivals. Gemini was launched in February on the premise of delivering 90%-plus schedule reliability to the market. Ozuygur said none of the other alliances came close to matching Gemini’s performance across any trade, but how long Gemini could hold out under these conditions remained unclear. ”Asia-Europe [poor reliability] affecting all alliances and carriers negatively shows us that there are some factors even a remodeled hub-and-spoke can’t effectively outmaneuver,” she said. “While their clever model doesn’t make [Gemini] impervious to these negative reliability factors, it’s more likely that they would hit a limit of wear and maintain that, still significantly above the other alliances,” Ozuygur added. The Premier Alliance has continued to decline against its global Q2 average of 26%, closing the third quarter with 21% on-time performance, Xeneta data shows. Ocean Alliance fell to 24% globally in Q3, the worst on-time performance of the longstanding alliance since its 27% average in the fourth quarter of 2022. Contact Greg Knowler at greg.knowler@spglobal.com .

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Strike action piles new bottlenecks on Europe’s two busiest ports

<div class="phx-topic abstract-wrapper">The US Supreme Court has agreed to hear the case, and without a clear ruling from the Court, brokers, shippers and manufacturers will face ongoing uncertainty, potentially weakening the national economy, writes trucking expert Matthew Leffler.</div>

The US Supreme Court has agreed to hear the case, and without a clear ruling from the Court, brokers, shippers and manufacturers will face ongoing uncertainty, potentially weakening the national economy, writes trucking expert Matthew Leffler.

<div class="phx-topic">The case of Montgomery v Caribe Transport II, LLC holds significant implications for the transportation and logistics industry, particularly for large shippers and manufacturers. The US Supreme Court on Oct. 3 granted certiorari — meaning it has agreed to hear the case — for the first time on the issue of broker liability. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6094010_0.1.jpg"></img></div>This legal dispute centers on the Federal Aviation Administration Authorization Act (FAAAA), a law designed to streamline trucking regulations across state lines. A key issue has emerged regarding the interpretation of the FAAAA’s safety exception, creating uncertainty that could disrupt the supply chain. <h3>Background of the case </h3>In 2018, Shawn Montgomery was stopped on the side of the road in Illinois in his tractor-trailer when Yosniel Varela-Mojena, driving a tractor-trailer for the motor carrier Caribe Transport II, LLC, veered off the roadway and collided with Montgomery's vehicle, causing severe injuries. The shipment was arranged by C.H. Robinson, which had hired Caribe to handle the transport. Montgomery sued Varela-Mojena, Caribe, and Robinson alleging negligent hiring of the carrier and driver, as well as vicarious liability for their actions under state tort law. The district court granted summary judgment to Robinson on these claims and the 7th Circuit affirmed in January 2025, citing FAAAA. FAAAA was enacted to preempt a patchwork of state laws and ensure a uniform regulatory framework for interstate trucking. However, a disagreement has arisen over the “safety exception,” which allows states to regulate motor vehicle safety. The question is whether this exception extends to freight brokers, intermediaries who arrange transportation but do not operate vehicles. The 6th and 9th Circuits have ruled that state tort claims, such as negligent hiring of motor carriers, can proceed against brokers. In contrast, the 7th and 11th Circuits have determined that such claims are preempted. <h3>Impact on large shippers and manufacturers </h3>Large shippers and manufacturers, such as those in the retail and automotive industries, depend on brokers to connect their goods to the trucking network. If brokers face varying liabilities depending on the location of a truck accident, it can potentially lead to increased costs or service disruptions for large companies. And with over 95% of motor carriers operating 10 trucks or fewer, those relying on brokers may face challenges. To mitigate the challenges posed by liability, brokers would likely need to make significant changes, many of which would drive costs up for consumers and shippers alike. For example, brokers may increase their fees to cover the added risk and potential legal costs, which would raise transportation expenses for shippers who rely on them to move billions of tons of freight annually, potentially impacting profit margins. Brokers might also become more cautious, preferring to work only with well-established carriers, reducing competition and limiting the pool of available truckers, which could lead to delays in delivery schedules critical for manufacturers and retailers. Finally, the uncertainty and potential for lawsuits could discourage smaller brokers from operating, shrinking the network of intermediaries and forcing shippers to seek alternative, possibly less efficient, logistics solutions. <h3>The US Chamber takes issue </h3>In an amicus brief in the case of Total Quality Logistics, LLC v. Robert Cox, a similar suit to Montgomery, the US Chamber of Commerce, along with the National Retail Federation, argued that freight brokers should not be held liable for tort claims related to the safety of motor carriers they hire. The organizations argued that existing federal and state regulations, not lawsuits against brokers, are the right way to keep the nation’s roads safe. The Chamber pointed out that brokers lack reliable tools, like the Compliance, Safety, Accountability (CSA) system, to properly screen carriers because it was designed for law enforcement, not brokers, and has data issues that make it hard to compare carriers effectively. The Chamber also warned that allowing these lawsuits could disrupt the transportation of goods, raise prices and hurt manufacturers, retailers and consumers, urging the Supreme Court to resolve the issue to protect the economy. <h3>Supreme Court intervention </h3>With a lack of uniformity threatening FAAAA’s original goal of fostering a stable, competitive trucking industry, it is little surprise that the US Supreme Court would grant certiorari. As emphasized by the Transportation Intermediaries Association as well as the Chamber, without a clear ruling, brokers, shippers and manufacturers will face ongoing uncertainty, potentially weakening the national economy. Looking ahead, this might be the most conservative Supreme Court in 100 years. Perhaps tellingly, this Supreme Court granted certiorari in Montgomery, where the broker won, and not Cox, where the broker lost. Does this bode well for brokers? Time will tell. But despite ever increasing liability, trucking remains the dominant mode of freight transportation in the US. Measured by weight, trucks transport 72.6% of the country’s freight. The future of brokerage is at stake, and for now, all eyes look to the Supreme Court. Matthew Leffler is a trucking industry expert and an adjunct professor of law at Michigan State University College of Law. Contact him at <a href="mailto:matthew@armchairattorney.com">matthew@armchairattorney.com</a>. </div>

The case of Montgomery v Caribe Transport II, LLC holds significant implications for the transportation and logistics industry, particularly for large shippers and manufacturers. The US Supreme Court on Oct. 3 granted certiorari — meaning it has agreed to hear the case — for the first time on the issue of broker liability. This legal dispute centers on the Federal Aviation Administration Authorization Act (FAAAA), a law designed to streamline trucking regulations across state lines. A key issue has emerged regarding the interpretation of the FAAAA’s safety exception, creating uncertainty that could disrupt the supply chain. Background of the case In 2018, Shawn Montgomery was stopped on the side of the road in Illinois in his tractor-trailer when Yosniel Varela-Mojena, driving a tractor-trailer for the motor carrier Caribe Transport II, LLC, veered off the roadway and collided with Montgomery's vehicle, causing severe injuries. The shipment was arranged by C.H. Robinson, which had hired Caribe to handle the transport. Montgomery sued Varela-Mojena, Caribe, and Robinson alleging negligent hiring of the carrier and driver, as well as vicarious liability for their actions under state tort law. The district court granted summary judgment to Robinson on these claims and the 7th Circuit affirmed in January 2025, citing FAAAA. FAAAA was enacted to preempt a patchwork of state laws and ensure a uniform regulatory framework for interstate trucking. However, a disagreement has arisen over the “safety exception,” which allows states to regulate motor vehicle safety. The question is whether this exception extends to freight brokers, intermediaries who arrange transportation but do not operate vehicles. The 6th and 9th Circuits have ruled that state tort claims, such as negligent hiring of motor carriers, can proceed against brokers. In contrast, the 7th and 11th Circuits have determined that such claims are preempted. Impact on large shippers and manufacturers Large shippers and manufacturers, such as those in the retail and automotive industries, depend on brokers to connect their goods to the trucking network. If brokers face varying liabilities depending on the location of a truck accident, it can potentially lead to increased costs or service disruptions for large companies. And with over 95% of motor carriers operating 10 trucks or fewer, those relying on brokers may face challenges. To mitigate the challenges posed by liability, brokers would likely need to make significant changes, many of which would drive costs up for consumers and shippers alike. For example, brokers may increase their fees to cover the added risk and potential legal costs, which would raise transportation expenses for shippers who rely on them to move billions of tons of freight annually, potentially impacting profit margins. Brokers might also become more cautious, preferring to work only with well-established carriers, reducing competition and limiting the pool of available truckers, which could lead to delays in delivery schedules critical for manufacturers and retailers. Finally, the uncertainty and potential for lawsuits could discourage smaller brokers from operating, shrinking the network of intermediaries and forcing shippers to seek alternative, possibly less efficient, logistics solutions. The US Chamber takes issue In an amicus brief in the case of Total Quality Logistics, LLC v. Robert Cox, a similar suit to Montgomery, the US Chamber of Commerce, along with the National Retail Federation, argued that freight brokers should not be held liable for tort claims related to the safety of motor carriers they hire. The organizations argued that existing federal and state regulations, not lawsuits against brokers, are the right way to keep the nation’s roads safe. The Chamber pointed out that brokers lack reliable tools, like the Compliance, Safety, Accountability (CSA) system, to properly screen carriers because it was designed for law enforcement, not brokers, and has data issues that make it hard to compare carriers effectively. The Chamber also warned that allowing these lawsuits could disrupt the transportation of goods, raise prices and hurt manufacturers, retailers and consumers, urging the Supreme Court to resolve the issue to protect the economy. Supreme Court intervention With a lack of uniformity threatening FAAAA’s original goal of fostering a stable, competitive trucking industry, it is little surprise that the US Supreme Court would grant certiorari. As emphasized by the Transportation Intermediaries Association as well as the Chamber, without a clear ruling, brokers, shippers and manufacturers will face ongoing uncertainty, potentially weakening the national economy. Looking ahead, this might be the most conservative Supreme Court in 100 years. Perhaps tellingly, this Supreme Court granted certiorari in Montgomery, where the broker won, and not Cox, where the broker lost. Does this bode well for brokers? Time will tell. But despite ever increasing liability, trucking remains the dominant mode of freight transportation in the US. Measured by weight, trucks transport 72.6% of the country’s freight. The future of brokerage is at stake, and for now, all eyes look to the Supreme Court. Matthew Leffler is a trucking industry expert and an adjunct professor of law at Michigan State University College of Law. Contact him at matthew@armchairattorney.com .

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Broker liability in the spotlight in ‘Montgomery v Caribe Transport’

<div class="phx-topic abstract-wrapper">Rail authorities have had to restrict or suspend train services into India’s busiest gateway multiple times in recent weeks in an attempt to clear the backlog of import containers trapped in port yards. </div>

Rail authorities have had to restrict or suspend train services into India’s busiest gateway multiple times in recent weeks in an attempt to clear the backlog of import containers trapped in port yards.

<div class="phx-topic">Indian container industry stakeholders continue to search for relief from the landside congestion that has roiled Mundra Port, the country’s busiest gateway, over the last few months. Mundra’s operational strains seem to have gone beyond a temporary or seasonal mismatch between supply and demand, sources indicate. Rail authorities have had to restrict or suspend train services into Mundra multiple times in recent weeks in an attempt to clear the backlog of import containers trapped in port yards while streamlining export-laden train queues. A two-day embargo on handling trains to Mundra through Oct. 7 was the latest disruption. “Since June, we have experienced nearly a dozen cases of on-and-off rail restrictions for Mundra,” said a private train operator who didn’t want to be identified. Container carriers have reiterated concerns over lingering landside delays at Mundra affecting cargo flows in and out of the port. “This (restriction) is currently affecting the timely placement of export trains and delaying the evacuation of import containers,” Maersk told customers in an advisory. “We are closely monitoring the situation and are in constant coordination with Indian Railways to expedite train movements and ensure timely placement at the port at the earliest opportunity.” DP World, which holds the oldest terminal operating concession at Mundra, also issued a similar trade advisory. But Sunil Vaswani, executive director of the Container Shipping Lines Association (India), explained that recent intermodal train suspensions have in large part been prompted by authorities adjusting the placement of locomotive engines in terms of demand. “More than the flow of export trains into Mundra, it was the movement of fresh trains from the inland container depots (ICDs) that were impacted,” Vaswani told the Journal of Commerce. <h3>Port is ‘overstretched’ </h3>Mundra, which is Adani Ports’ flagship port entity, features 10 rail-sidings, handling 25 trains for import clearance a day on average. Industry sources believe the port needs to consistently dispatch at least 30 trains each day for better yard inventory management. “Mundra is overstretched and container dwells there will keep lengthening until new rail capacity is added,” said a second rail company executive. “It is often found that the port has a long pipeline of 60 to 70 inbound trains, congesting out-gates.” Mundra’s upcoming capacity expansion plans include the 1.8-million-TEU “CT5” terminal project with phase 1 operations targeted to begin in late 2026. The port handled 4.2 million TEUs during the first half of its fiscal year through September, relatively flat year over year, data shows. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Indian container industry stakeholders continue to search for relief from the landside congestion that has roiled Mundra Port, the country’s busiest gateway, over the last few months. Mundra’s operational strains seem to have gone beyond a temporary or seasonal mismatch between supply and demand, sources indicate. Rail authorities have had to restrict or suspend train services into Mundra multiple times in recent weeks in an attempt to clear the backlog of import containers trapped in port yards while streamlining export-laden train queues. A two-day embargo on handling trains to Mundra through Oct. 7 was the latest disruption. “Since June, we have experienced nearly a dozen cases of on-and-off rail restrictions for Mundra,” said a private train operator who didn’t want to be identified. Container carriers have reiterated concerns over lingering landside delays at Mundra affecting cargo flows in and out of the port. “This (restriction) is currently affecting the timely placement of export trains and delaying the evacuation of import containers,” Maersk told customers in an advisory. “We are closely monitoring the situation and are in constant coordination with Indian Railways to expedite train movements and ensure timely placement at the port at the earliest opportunity.” DP World, which holds the oldest terminal operating concession at Mundra, also issued a similar trade advisory. But Sunil Vaswani, executive director of the Container Shipping Lines Association (India), explained that recent intermodal train suspensions have in large part been prompted by authorities adjusting the placement of locomotive engines in terms of demand. “More than the flow of export trains into Mundra, it was the movement of fresh trains from the inland container depots (ICDs) that were impacted,” Vaswani told the Journal of Commerce. Port is ‘overstretched’ Mundra, which is Adani Ports’ flagship port entity, features 10 rail-sidings, handling 25 trains for import clearance a day on average. Industry sources believe the port needs to consistently dispatch at least 30 trains each day for better yard inventory management. “Mundra is overstretched and container dwells there will keep lengthening until new rail capacity is added,” said a second rail company executive. “It is often found that the port has a long pipeline of 60 to 70 inbound trains, congesting out-gates.” Mundra’s upcoming capacity expansion plans include the 1.8-million-TEU “CT5” terminal project with phase 1 operations targeted to begin in late 2026. The port handled 4.2 million TEUs during the first half of its fiscal year through September, relatively flat year over year, data shows. Contact Bency Mathew at bencyvmathew@gmail.com .

North India trade flows tested by rail embargoes at congested Mundra Port

<div class="phx-topic abstract-wrapper">Shaun Stevenson, who guided development of Prince Rupert’s Fairview Container Terminal and the port’s intermodal services to Chicago and eastern Canada, is leaving at year’s end after 28 years with the port, including the last seven as CEO. </div>

Shaun Stevenson, who guided development of Prince Rupert’s Fairview Container Terminal and the port’s intermodal services to Chicago and eastern Canada, is leaving at year’s end after 28 years with the port, including the last seven as CEO.

<div class="phx-topic">Shaun Stevenson is ending a 28-year tenure at the Prince Rupert Port Authority, where as CEO and president for the last seven years he oversaw major infrastructure projects and guided the port through post-pandemic challenges. Stevenson is retiring at year’s end, the port authority announced Monday, adding it will initiate a comprehensive search for a new CEO. He was instrumental in the development of the port’s Fairview Container Terminal, which opened in 2007, and in developing and diversifying the port’s cargo base. “I am proud of what we have accomplished together with our partners, including over $3 billion in transformative trade development currently underway at the gateway,” Stevenson said in a statement. Stevenson guided Prince Rupert’s efforts to develop import and export <a href="https://www.joc.com/article/prince-rupert-promoting-transload-operations-to-improve-logistics-efficiency-5937532">transloading facilities to diversify the port’s cargo base</a>, as well as construction of a <a href="https://www.joc.com/article/aro-2020-canadian-ports-preparing-for-strong-cargo-growth-5223107">second berth at Fairview</a> and expansion of the railyard to increase intermodal capacity. “Under Shaun’s leadership we’ve experienced unprecedented growth and diversification at the Port of Prince Rupert,” said Peter Lantin, chairman of the Prince Rupert Port Authority Board of Directors. Since it attracted the first Cosco Shipping service in 2007, Prince Rupert steadily grew its volumes until container lines began dropping calls during the pandemic in a bid to restore ocean reliability. The port has yet to fully recover those lost volumes. A British Columbia <a href="https://www.joc.com/article/bc-ports-to-reopen-but-longshore-union-plans-challenge-to-back-to-work-order-5810473">port strike in 2024</a> hurt the reputation of the gateway that is used for US-bound cargo to Chicago. Prince Rupert is a key trans-Pacific gateway for Canada and the US, with Canadian National’s intermodal services to Chicago and Canadian load centers in the eastern half of the country. The port handled 404,225 laden TEUs year to date through August, up 5% from 383,458 TEUs during the same period last year, according to the port’s website, but down 44.7% compared with the first eight months of 2020. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

Shaun Stevenson is ending a 28-year tenure at the Prince Rupert Port Authority, where as CEO and president for the last seven years he oversaw major infrastructure projects and guided the port through post-pandemic challenges. Stevenson is retiring at year’s end, the port authority announced Monday, adding it will initiate a comprehensive search for a new CEO. He was instrumental in the development of the port’s Fairview Container Terminal, which opened in 2007, and in developing and diversifying the port’s cargo base. “I am proud of what we have accomplished together with our partners, including over $3 billion in transformative trade development currently underway at the gateway,” Stevenson said in a statement. Stevenson guided Prince Rupert’s efforts to develop import and export transloading facilities to diversify the port’s cargo base , as well as construction of a second berth at Fairview and expansion of the railyard to increase intermodal capacity. “Under Shaun’s leadership we’ve experienced unprecedented growth and diversification at the Port of Prince Rupert,” said Peter Lantin, chairman of the Prince Rupert Port Authority Board of Directors. Since it attracted the first Cosco Shipping service in 2007, Prince Rupert steadily grew its volumes until container lines began dropping calls during the pandemic in a bid to restore ocean reliability. The port has yet to fully recover those lost volumes. A British Columbia port strike in 2024 hurt the reputation of the gateway that is used for US-bound cargo to Chicago. Prince Rupert is a key trans-Pacific gateway for Canada and the US, with Canadian National’s intermodal services to Chicago and Canadian load centers in the eastern half of the country. The port handled 404,225 laden TEUs year to date through August, up 5% from 383,458 TEUs during the same period last year, according to the port’s website, but down 44.7% compared with the first eight months of 2020. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

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Prince Rupert searching for new CEO after Stevenson announces retirement

<div class="phx-topic abstract-wrapper">Upheaval in global trade is putting more pressure on forwarders to invest in automation to price their services quickly and more effectively, an area that startup Nexcade is targeting.</div>

Upheaval in global trade is putting more pressure on forwarders to invest in automation to price their services quickly and more effectively, an area that startup Nexcade is targeting.

<div class="phx-topic">A new automation software vendor catering to forwarders said Tuesday it landed a $2.5 million funding round, a further sign of the venture capital industry’s interest in supporting platforms that target inefficiency in global logistics. The company, Nexcade, has a customer list that includes Zencargo, Cardinal Global Logistics and XPO, and said it intends to use the funding to grow its customer base by 10 times over the next 12 months. Nexcade builds digital agents for logistics teams to automate pricing, quoting and procurement. That essentially allows those teams to grow capacity without adding headcount and also lets them pull unstructured data from emails and PDFs into decision-making tools. “While the [transportation management system] is the system of record for our customers, many of the conversations, decisions and data that drive freight never make it inside,” Nexcade CEO Dan Bailey said in a statement. “That missing information is where revenue is lost and service breaks down. Bridging that gap is the only way to unlock real automation and enable the revenue growth and operational resilience forwarders need in today’s market.” Bailey added that Nexcade is initially focusing on rate and contract automation because they are the core activities that underpin the forwarding business. Bailey was a former operations executive with Sedna, a software vendor that helps maritime and logistics companies organize tasks across their organizations. Co-founder Tasho Kjosev previously served in technical roles at AI specialists UnlikelyAI and Palantir. Nexcade enters a market awash in AI, automation and agentic solutions from startups founded over the last decade such as Raft to decades-old incumbents such as WiseTech Global. A crop of agentic workflow providers catering to logistics companies has also emerged in the last two years, signaling their ability to create agents to tackle simple tasks or connect systems and data synchronously. The advent of AI agents comes as the forwarding industry is reckoning with the impact that US tariffs and economic uncertainty are having on container trade volumes. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

A new automation software vendor catering to forwarders said Tuesday it landed a $2.5 million funding round, a further sign of the venture capital industry’s interest in supporting platforms that target inefficiency in global logistics. The company, Nexcade, has a customer list that includes Zencargo, Cardinal Global Logistics and XPO, and said it intends to use the funding to grow its customer base by 10 times over the next 12 months. Nexcade builds digital agents for logistics teams to automate pricing, quoting and procurement. That essentially allows those teams to grow capacity without adding headcount and also lets them pull unstructured data from emails and PDFs into decision-making tools. “While the [transportation management system] is the system of record for our customers, many of the conversations, decisions and data that drive freight never make it inside,” Nexcade CEO Dan Bailey said in a statement. “That missing information is where revenue is lost and service breaks down. Bridging that gap is the only way to unlock real automation and enable the revenue growth and operational resilience forwarders need in today’s market.” Bailey added that Nexcade is initially focusing on rate and contract automation because they are the core activities that underpin the forwarding business. Bailey was a former operations executive with Sedna, a software vendor that helps maritime and logistics companies organize tasks across their organizations. Co-founder Tasho Kjosev previously served in technical roles at AI specialists UnlikelyAI and Palantir. Nexcade enters a market awash in AI, automation and agentic solutions from startups founded over the last decade such as Raft to decades-old incumbents such as WiseTech Global. A crop of agentic workflow providers catering to logistics companies has also emerged in the last two years, signaling their ability to create agents to tackle simple tasks or connect systems and data synchronously. The advent of AI agents comes as the forwarding industry is reckoning with the impact that US tariffs and economic uncertainty are having on container trade volumes. Contact Eric Johnson at eric.johnson@spglobal.com .

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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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