<div class="phx-topic abstract-wrapper">The on-time, ­damage-free delivery of cargo supporting project schedule integrity, including managing unexpected disruptions, is the common goal of logistics teams and their service providers.</div>

The on-time, ­damage-free delivery of cargo supporting project schedule integrity, including managing unexpected disruptions, is the common goal of logistics teams and their service providers.

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<div>As investment in energy, infrastructure, mining and other industrial sectors accelerates around the globe, competition among engineering, procurement and construction (EPC) companies and their industrial equipment suppliers for winning project work grows increasingly intense. The focus on maintaining schedule integrity and cost competitiveness, key elements in winning work with project owners, also continues to intensify. Responsibilities managed by shipper logistics teams together with their logistics service providers (LSPs) play a key role in both cost and schedule competitiveness, and schedule is king. Logistics, as the owner of a minor piece of total installed cost, could never save enough through negotiation...

As investment in energy, infrastructure, mining and other industrial sectors accelerates around the globe, competition among engineering, procurement and construction (EPC) companies and their industrial equipment suppliers for winning project work grows increasingly intense. The focus on maintaining schedule integrity and cost competitiveness, key elements in winning work with project owners, also continues to intensify. Responsibilities managed by shipper logistics teams together with their logistics service providers (LSPs) play a key role in both cost and schedule competitiveness, and schedule is king. Logistics, as the owner of a minor piece of total installed cost, could never save enough through negotiation or cost/service trade-offs to offset the costs and possible reputational and contractual damages caused by project schedule delays they’ve induced by mismanaging their responsibilities. Consequently, decisions made by logistics teams about what responsibilities they choose to manage in-house and what work to outsource to LSPs is of vital importance to the portion of project schedule and competitiveness they manage. Thus, answering the question of “who to trust with my business” is a serious and challenging process, with many important factors to consider. Processes for procuring and contracting logistics services vary widely among service sectors — be it forwarding and customs clearance or export packing, ocean freight shipping or port services — so these comments will focus on freight forwarding services, which are vitally important to a logistics team’s success and to the success of a project. The range of services included in a forwarder’s scope can vary significantly from shipper to shipper or project to project. Regardless of how broadly or narrowly the services are scoped, the shipper and forwarder are now in pursuit of a common goal: the on-time, ­damage-free delivery of cargo supporting project schedule integrity. The forwarding partner essentially becomes part of the shipper’s logistics team with accomplishment of the common goal now a joint endeavor. What are the key elements of a vetting and selection process that will reliably result in the choice of a forwarding partner possessing the competencies, resources and attributes to be entrusted with managing a piece of the shipper’s responsibilities? In my experience, this begins with assessing the forwarder’s experience and success in handling large, complex industrial projects. A prospective partner should have a global presence, with project-experienced resources that will enable them to execute shipments from multiple origins, along with an organization structured, led and equipped to consistently produce predictable, successful shipment outcomes. An organizational commitment to project forwarding should be evident from its structure and messaging, with a clear statement of mission and purpose steering its efforts. There should also be a single point of responsibility for owning the client relationship, and that person, that point of responsibility, should be empowered with decision-making authority and access to company resources in support of project forwarding. The forwarder’s financial resources should demonstrate stability over time and the capacity to take on a multi-billion-dollar project, as project forwarders are often required to make significant financial outlays — such as contracting for ocean and landside transport services — on behalf of the project client. A process and quality management system should also be in place to guide, monitor and report on performance and identify potential deviations before they occur. There should be a system-wide approach for integrating regulatory compliance, safety and sustainability in the supply chain, as well as other programs that shape its culture and values, such as a culture that encourages innovation, application of technology and independent ­decision-making when appropriate. The forwarder’s information management and connectivity capabilities should, ideally, integrate and share information internally, with the client and with other service providers and carriers. Considering the myriad of questions that can be asked and criteria assessed towards answering the trust question, perhaps the most fundamental and difficult to answer and assess are: how well is this project forwarder equipped to deal with the disruptions to well-laid plans that will inevitably occur, and in whose interest will they make decisions, their own, or the project’s? email: d.mottola@sbcglobal.net

Ro/ro cargo

Project cargo

Breakbulk News

Supply chain

Trust is key to logistics relationships amid accelerating industrial sector investments

<div class="phx-topic abstract-wrapper">While the new fees “may pose certain operational challenges,” Cosco said it does not plan to remove any trans-Pacific services, reduce its US ship deployment, or impose new surcharges to cover the fees.</div>

While the new fees “may pose certain operational challenges,” Cosco said it does not plan to remove any trans-Pacific services, reduce its US ship deployment, or impose new surcharges to cover the fees.

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<div class="phx-topic">Cosco Shipping has informed its US customers to expect little change in its services and rates as the carrier starts paying new service fees for US port calls in October, becoming the latest container line to signal it will absorb the Trump administration’s penalties against China’s maritime industry. Cosco said in a customer advisory Wednesday it will “continue to serve the US market” once the US Trade Representative (USTR) begins collecting fees on Chinese-built and -operated ships calling US ports starting Oct. 14. The fees stem from <a href="https://www.joc.com/article/us-port-fees-could-hit-chinese-ships-under-trump-trade-proposal-5949409">the USTR’s finding</a>that China has used unfair trade practices to promote its shipbuilders and ocean carriers. While the new fees “may pose certain operational challenges,” Cosco said it does not plan to remove any trans-Pacific services, reduce its US ship deployment, or impose new surcharges to cover the fees. “We are committed to maintaining stable capacity deployment and service quality,” Cosco said. “We will maintain competitive rates and surcharges.” Cosco’s advisory follows similar announcements from competitors <a href="https://www.joc.com/article/cma-cgm-reroutes-china-built-ships-to-avoid-us-port-fees-6078488">CMA CGM</a> and <a href="https://www.joc.com/article/msc-ready-for-us-port-fees-after-network-changes-ceo-6079762">Mediterranean Shipping Co.</a>(MSC), which have both said they hope to mitigate the impact of the fees after having rotated most, if not all, of their <a href="https://www.joc.com/article/chinese-tonnage-moving-out-of-us-container-trade-ahead-of-new-fees-xeneta-6081320">China-built container ships out of US services prior to mid-October</a>.As a China-based carrier, Cosco does not have that option under the USTR’s action, which assesses a higher penalty for Chinese carriers than for Chinese ships. Cosco, along with its OOCL subsidiary, face a $50 per net ton fee for any of their vessels on their first port call to the US, up to five times per year. The fee rises to $140 by 2028. In contrast, a Chinese-built ship operated by a non-China domiciled carrier only faces an $18 per net ton fee in the first year of the USTR’s penalty scheme, rising to $33 by 2028. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e78cef13-8c4c-467e-afde-4967a79f87ca"></dynamic-object></div><h3>Will subsidies help offset fees?</h3>Investment bank HSBC estimated that a Chinese-operated ship of 10,000-TEU capacity would pay $2.7 million for its first US port call in the first year of the new fees, equating to a roughly $600 per container fee. A Chinese-built ship of similar size faces a $1 million fee, or roughly $222 per container. Based on the number of US calls per year, HSBC estimated Cosco could pay $1.5 billion in USTR fees through 2026. The question then becomes whether the Chinese government will offset those new port fees through subsidies. The USTR investigation cited estimates that China provided some $3.4 billion in subsidies between 2010 and 2018 to the country’s major carriers and port operators. Cosco’s last annual report listed $169 million in subsidies received during 2024, down from $423 million in 2023. Those subsidies, though, do not extend to OOCL, which itself could face $654 million in port fees, HSBC estimated. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Cosco Shipping has informed its US customers to expect little change in its services and rates as the carrier starts paying new service fees for US port calls in October, becoming the latest container line to signal it will absorb the Trump administration’s penalties against China’s maritime industry. Cosco said in a customer advisory Wednesday it will “continue to serve the US market” once the US Trade Representative (USTR) begins collecting fees on Chinese-built and -operated ships calling US ports starting Oct. 14. The fees stem from the USTR’s finding that China has used unfair trade practices to promote its shipbuilders and ocean carriers. While the new fees “may pose certain operational challenges,” Cosco said it does not plan to remove any trans-Pacific services, reduce its US ship deployment, or impose new surcharges to cover the fees. “We are committed to maintaining stable capacity deployment and service quality,” Cosco said. “We will maintain competitive rates and surcharges.” Cosco’s advisory follows similar announcements from competitors CMA CGM and Mediterranean Shipping Co. (MSC), which have both said they hope to mitigate the impact of the fees after having rotated most, if not all, of their China-built container ships out of US services prior to mid-October . As a China-based carrier, Cosco does not have that option under the USTR’s action, which assesses a higher penalty for Chinese carriers than for Chinese ships. Cosco, along with its OOCL subsidiary, face a $50 per net ton fee for any of their vessels on their first port call to the US, up to five times per year. The fee rises to $140 by 2028. In contrast, a Chinese-built ship operated by a non-China domiciled carrier only faces an $18 per net ton fee in the first year of the USTR’s penalty scheme, rising to $33 by 2028. Will subsidies help offset fees? Investment bank HSBC estimated that a Chinese-operated ship of 10,000-TEU capacity would pay $2.7 million for its first US port call in the first year of the new fees, equating to a roughly $600 per container fee. A Chinese-built ship of similar size faces a $1 million fee, or roughly $222 per container. Based on the number of US calls per year, HSBC estimated Cosco could pay $1.5 billion in USTR fees through 2026. The question then becomes whether the Chinese government will offset those new port fees through subsidies. The USTR investigation cited estimates that China provided some $3.4 billion in subsidies between 2010 and 2018 to the country’s major carriers and port operators. Cosco’s last annual report listed $169 million in subsidies received during 2024, down from $423 million in 2023. Those subsidies, though, do not extend to OOCL, which itself could face $654 million in port fees, HSBC estimated. Contact Michael Angell at michael.angell@spglobal.com

Trans-Pacific

North American ports

Container lines

Cosco says no changes to US services as new port fees approach

<div class="phx-topic abstract-wrapper">Local carrier and forwarder sources expressed relief that the truck strike ended before it had become a crisis extending beyond the two ports.</div>

Local carrier and forwarder sources expressed relief that the truck strike ended before it had become a crisis extending beyond the two ports.

<div class="phx-topic">The Indian drayage strike that threatened to exacerbate pressure on supply chains out of the western ports of Mundra and Kandla has been called off following talks between stakeholders and port authorities. Various truck owner <a href="https://www.joc.com/article/drayage-strike-shuts-inland-flow-from-mundra-kandla-ports-6079773">groups walked off the road en masse on Friday</a> demanding highway infrastructure improvements, a concern they said had been long standing. “Officials were issued strict instructions to complete road repairs on a war footing within three days,” a Mundra-based truck owner who didn’t want to be identified told the Journal of Commerce Wednesday. The source also said authorities agreed to waive highway toll charges during the time frame set for repairs. Local carrier and forwarder sources expressed relief that the truck strike ended before it had become a crisis of alarming proportions extending beyond the two ports. “Some residual delays were to be anticipated because of the backlogs, but a quicker resolution has averted operational chaos,” a carrier executive said. Capacity at Mundra — India’s busiest container gateway — has been under pressure amid steady trade growth and increasing transshipment activity by Mediterranean Shipping Co., which has a terminal partnership with port owner Adani Ports. Meanwhile, DP World, which holds the oldest terminal concession at Mundra, has embarked on an infrastructure upgrade there to better handle future growth. The upgrade involves adding four new cranes, including one advanced quay crane and three electric gantry cranes, which is expected to increase DP World Mundra’s capacity from 1.3 million TEUs to 1.56 million TEUs a year upon completion of the equipment installation, targeted for 2027. “The new quay cranes can handle vessels 22 rows across, enabling Mundra to serve some of the world’s largest container ships with greater efficiency and reliability,” the company told the Journal of Commerce. “With this addition, DP World Mundra now operates eight quay cranes, boosting its capability to deliver faster vessel turnarounds and enhancing service consistency.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

The Indian drayage strike that threatened to exacerbate pressure on supply chains out of the western ports of Mundra and Kandla has been called off following talks between stakeholders and port authorities. Various truck owner groups walked off the road en masse on Friday demanding highway infrastructure improvements, a concern they said had been long standing. “Officials were issued strict instructions to complete road repairs on a war footing within three days,” a Mundra-based truck owner who didn’t want to be identified told the Journal of Commerce Wednesday. The source also said authorities agreed to waive highway toll charges during the time frame set for repairs. Local carrier and forwarder sources expressed relief that the truck strike ended before it had become a crisis of alarming proportions extending beyond the two ports. “Some residual delays were to be anticipated because of the backlogs, but a quicker resolution has averted operational chaos,” a carrier executive said. Capacity at Mundra — India’s busiest container gateway — has been under pressure amid steady trade growth and increasing transshipment activity by Mediterranean Shipping Co., which has a terminal partnership with port owner Adani Ports. Meanwhile, DP World, which holds the oldest terminal concession at Mundra, has embarked on an infrastructure upgrade there to better handle future growth. The upgrade involves adding four new cranes, including one advanced quay crane and three electric gantry cranes, which is expected to increase DP World Mundra’s capacity from 1.3 million TEUs to 1.56 million TEUs a year upon completion of the equipment installation, targeted for 2027. “The new quay cranes can handle vessels 22 rows across, enabling Mundra to serve some of the world’s largest container ships with greater efficiency and reliability,” the company told the Journal of Commerce. “With this addition, DP World Mundra now operates eight quay cranes, boosting its capability to deliver faster vessel turnarounds and enhancing service consistency.” Contact Bency Mathew at bencyvmathew@gmail.com.

Port News

Drayage

International ports

Container Shipping News

Maritime

Indian drayage strike at Mundra, Kandla ports ends

<div class="phx-topic abstract-wrapper">Yang Ming said the ships will be the first LNG dual-fuel container vessels in Taiwan to feature specifications allowing them to be converted to ammonia dual-fuel propulsion.</div>

Yang Ming said the ships will be the first LNG dual-fuel container vessels in Taiwan to feature specifications allowing them to be converted to ammonia dual-fuel propulsion.

<div class="phx-topic">Yang Ming Marine Transport has upgraded a newbuild deal with South Korean shipyard Hanwha Ocean for larger capacity 16,000-TEU container ships costing $1.4 billion, Taiwan's second-largest liner has confirmed. Yang Ming directors initially agreed to order seven 15,000-TEU liquefied natural gas-powered dual-fuel vessels from Hanwha Ocean at a meeting on July 17, the first time the carrier agreed to order ships from Hanwha. Subsequent talks between Yang Ming and the shipbuilder led the carrier, ranked 10th-largest in terms of capacity by Alphaliner, to increase the capacity of the ships to 15,880 TEUs while also making them capable of operating on ammonia fuel. Details of the enhancements were outlined by Yang Ming in a statement following the signing of the revised shipbuilding contracts Tuesday. Yang Ming said the ships will be the first LNG dual-fuel container vessels in Taiwan to feature specifications allowing them to be converted to ammonia dual-fuel propulsion. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e7519da5-d3fa-4798-b072-f2777589a4cf"></dynamic-object></div>“This ensures both high operational efficiency and flexibility in alternative fuel adoption during the decarbonization transition,” the carrier said. The latest contract signing takes Yang Ming’s order backlog to 18 ships, with 13 earmarked to replace smaller 5,500-TEU and 6,500-TEU vessels that have been in service for more than 20 years. The backlog includes six 8,000-TEU vessels being built by Japan’s Imabari Shipbuilding and Nihon Shipyard for delivery between 2028 and 2030, and five 15,500-TEU LNG dual-fuel container ships ordered from HD Hyundai Heavy Industries with deliveries starting early next year. The 15,500-16,000 TEU ships will be deployed on east-west trades, Yang Ming said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Yang Ming Marine Transport has upgraded a newbuild deal with South Korean shipyard Hanwha Ocean for larger capacity 16,000-TEU container ships costing $1.4 billion, Taiwan's second-largest liner has confirmed. Yang Ming directors initially agreed to order seven 15,000-TEU liquefied natural gas-powered dual-fuel vessels from Hanwha Ocean at a meeting on July 17, the first time the carrier agreed to order ships from Hanwha. Subsequent talks between Yang Ming and the shipbuilder led the carrier, ranked 10th-largest in terms of capacity by Alphaliner, to increase the capacity of the ships to 15,880 TEUs while also making them capable of operating on ammonia fuel. Details of the enhancements were outlined by Yang Ming in a statement following the signing of the revised shipbuilding contracts Tuesday. Yang Ming said the ships will be the first LNG dual-fuel container vessels in Taiwan to feature specifications allowing them to be converted to ammonia dual-fuel propulsion. “This ensures both high operational efficiency and flexibility in alternative fuel adoption during the decarbonization transition,” the carrier said. The latest contract signing takes Yang Ming’s order backlog to 18 ships, with 13 earmarked to replace smaller 5,500-TEU and 6,500-TEU vessels that have been in service for more than 20 years. The backlog includes six 8,000-TEU vessels being built by Japan’s Imabari Shipbuilding and Nihon Shipyard for delivery between 2028 and 2030, and five 15,500-TEU LNG dual-fuel container ships ordered from HD Hyundai Heavy Industries with deliveries starting early next year. The 15,500-16,000 TEU ships will be deployed on east-west trades, Yang Ming said. Contact Keith Wallis at keithwallis@hotmail.com.

Yang Ming signs $1.4 billion upgraded ship order for 16,000-TEU vessels

<div class="phx-topic abstract-wrapper">Should US attempts to derail the measure be successful, a global approach to putting a price on carbon emissions will be abandoned and replaced with uncoordinated regional and national measures, the experts say.</div>

Should US attempts to derail the measure be successful, a global approach to putting a price on carbon emissions will be abandoned and replaced with uncoordinated regional and national measures, the experts say.

<div class="phx-topic">Failure to adopt the International Maritime Organization’s net-zero emissions framework in October will undermine years of complex negotiations and erase the certainty required by investors and energy suppliers to decarbonize the maritime industry, according to shipping experts gathered in London this week. The warning follows Washington’s increasingly aggressive attempts to derail next month’s adoption of the proposed net-zero framework at a pivotal meeting of the IMO’s Marine Environment Protection Committee (MEPC) in London from Oct. 14-17. US officials earlier this month <a href="https://www.joc.com/article/us-steps-up-attempts-to-derail-imos-net-zero-ambitions-6076148">threatened IMO members supporting the framework</a> with tariffs, port duties and even visa restrictions. ”If the measure does not go through, it will be a pure disaster,” Patrick Verhoeven, managing director of the International Association of Ports and Harbors (IAPH), told a conference at London International Shipping Week (LISW). Although he remains “cautiously optimistic,” Verhoeven said if voted down, the fuel standard and economic pricing measures in the framework would have to go back to the drawing board, exacerbating the uncertainty that already hangs over industry decarbonization and significantly delaying the process. “What we will see is probably an increase of more regional measures or those from individual countries. This will result in a complex regulatory patchwork which will be extremely challenging for ship owners and operators to comply with,” he said. Matt Dunlop, strategic partner at the Maersk Mckinney-Moller Center for Zero Carbon Shipping, said the concept of the net-zero framework was crucial for the industry to have any chance of realizing the 2050 ambitions. “We need to get shipowners to continue to invest in LNG and methanol newbuilds while we get the standards ready for ammonia,” Dunlop told delegates at LISW. "At the moment, there's no incentive for us, and the challenge for my customers is to understand ‘what do I need to do to comply?’ It's more of a compliance discussion rather than a decarbonization discussion. “We have a real opportunity next month at MEPC, but if (the net-zero framework) is not adopted...wow,” he added. <h3>Direction of travel has been set </h3>Martin Crawford-Brunt, CEO of specialist consultancy Lookout Marine, said shipping was on a pathway towards carbon neutrality, something that would not change even if the net-zero framework was voted down. ”There’s a lot of speculation in terms of what’s going to happen at MEPC, and a lot of the actors are keeping their cards close to the chest, but regardless of which way it turns out, the imperative to do something will not go away,” he said. Global shipping accounts for around 3% of the world's greenhouse gas emissions, and the IMO deal is regarded as crucial in enabling the industry to reach climate neutrality around 2050 by introducing fuel standards and levies on ships that fail to meet strict targets. The framework will require a two-thirds majority from member states to win approval and those voting yes will need to represent at least 50% of the world’s registered tonnage. Flag states Liberia, Panama and the Marshall Islands are home to almost half the world’s gross tonnage. Leading the diplomatic efforts to have the net-zero framework adopted next month in the face of pushback from Washington is IMO Secretary-General Arsenio Dominguez, who struck a positive tone at LISW. “I remain very confident that this will happen next month,” he told the IMO’s headline conference at the week-long London event, noting the lengthy and complex process that has led to this crucial point in shipping’s decarbonization journey. “We evaluated and assessed 20 different scenarios from the proposals that we had on the table before landing on the compromise approach that we have for adoption next month,” Dominguez said. He reassured stakeholders that the framework includes review clauses and additional assessments that would address potential disadvantages to specific sectors. ”Decarbonization has a cost. I’ll keep repeating that. It’s not for free, similar to any IMO regulation,” he said, emphasizing that the process was designed to be as “fit for purpose” as possible. While no universal carbon levy was agreed to at the contentious MEPC meeting in April, if the framework is adopted, shipping’s global carbon emissions will carry progressively increasing charges for the first time starting from 2027. <h3>New generation of carbon-free fuel </h3>The fuel standard and carbon pricing mechanism are regarded as essential to support the development and scale-up of a new generation of carbon-free marine fuels, which remain significantly more expensive than traditional fossil fuels. Dominguez acknowledged industry concerns about the framework and noted that if the proposal is adopted next month, there will still be considerable work involved to develop the guidelines for implementation in 2027. Industry concerns were expressed in dramatic fashion when the US delegation <a href="https://www.joc.com/article/us-pulls-out-of-imo-climate-talks-threatens-retaliation-for-emissions-fees-5980359">walked out of the MEPC meeting in April</a> in protest over the decarbonization talks. The vote that ended the meeting saw 63 nations voting for the proposal, 16 against and 25 abstentions. The US opposition to the net-zero framework has been gathering some industry support. On Monday, Christopher Wiernicki, the chairman and CEO of Texas-based classification society American Bureau of Shipping (ABS), told a LISW event that shipping and the IMO were on different trajectories. “There is no clear pathway for green fuel availability and scalability and infrastructure support,” Wiernicki said. “LNG and biofuels are mission critical to any success and should not be overlooked, over penalized or discarded in the net-zero regulation,” he added. “Quite frankly, achieving net-zero for shipping by 2050 looks like a wildcard.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Failure to adopt the International Maritime Organization’s net-zero emissions framework in October will undermine years of complex negotiations and erase the certainty required by investors and energy suppliers to decarbonize the maritime industry, according to shipping experts gathered in London this week. The warning follows Washington’s increasingly aggressive attempts to derail next month’s adoption of the proposed net-zero framework at a pivotal meeting of the IMO’s Marine Environment Protection Committee (MEPC) in London from Oct. 14-17. US officials earlier this month threatened IMO members supporting the framework with tariffs, port duties and even visa restrictions. ”If the measure does not go through, it will be a pure disaster,” Patrick Verhoeven, managing director of the International Association of Ports and Harbors (IAPH), told a conference at London International Shipping Week (LISW). Although he remains “cautiously optimistic,” Verhoeven said if voted down, the fuel standard and economic pricing measures in the framework would have to go back to the drawing board, exacerbating the uncertainty that already hangs over industry decarbonization and significantly delaying the process. “What we will see is probably an increase of more regional measures or those from individual countries. This will result in a complex regulatory patchwork which will be extremely challenging for ship owners and operators to comply with,” he said. Matt Dunlop, strategic partner at the Maersk Mckinney-Moller Center for Zero Carbon Shipping, said the concept of the net-zero framework was crucial for the industry to have any chance of realizing the 2050 ambitions. “We need to get shipowners to continue to invest in LNG and methanol newbuilds while we get the standards ready for ammonia,” Dunlop told delegates at LISW. "At the moment, there's no incentive for us, and the challenge for my customers is to understand ‘what do I need to do to comply?’ It's more of a compliance discussion rather than a decarbonization discussion. “We have a real opportunity next month at MEPC, but if (the net-zero framework) is not adopted...wow,” he added. Direction of travel has been set Martin Crawford-Brunt, CEO of specialist consultancy Lookout Marine, said shipping was on a pathway towards carbon neutrality, something that would not change even if the net-zero framework was voted down. ”There’s a lot of speculation in terms of what’s going to happen at MEPC, and a lot of the actors are keeping their cards close to the chest, but regardless of which way it turns out, the imperative to do something will not go away,” he said. Global shipping accounts for around 3% of the world's greenhouse gas emissions, and the IMO deal is regarded as crucial in enabling the industry to reach climate neutrality around 2050 by introducing fuel standards and levies on ships that fail to meet strict targets. The framework will require a two-thirds majority from member states to win approval and those voting yes will need to represent at least 50% of the world’s registered tonnage. Flag states Liberia, Panama and the Marshall Islands are home to almost half the world’s gross tonnage. Leading the diplomatic efforts to have the net-zero framework adopted next month in the face of pushback from Washington is IMO Secretary-General Arsenio Dominguez, who struck a positive tone at LISW. “I remain very confident that this will happen next month,” he told the IMO’s headline conference at the week-long London event, noting the lengthy and complex process that has led to this crucial point in shipping’s decarbonization journey. “We evaluated and assessed 20 different scenarios from the proposals that we had on the table before landing on the compromise approach that we have for adoption next month,” Dominguez said. He reassured stakeholders that the framework includes review clauses and additional assessments that would address potential disadvantages to specific sectors. ”Decarbonization has a cost. I’ll keep repeating that. It’s not for free, similar to any IMO regulation,” he said, emphasizing that the process was designed to be as “fit for purpose” as possible. While no universal carbon levy was agreed to at the contentious MEPC meeting in April, if the framework is adopted, shipping’s global carbon emissions will carry progressively increasing charges for the first time starting from 2027. New generation of carbon-free fuel The fuel standard and carbon pricing mechanism are regarded as essential to support the development and scale-up of a new generation of carbon-free marine fuels, which remain significantly more expensive than traditional fossil fuels. Dominguez acknowledged industry concerns about the framework and noted that if the proposal is adopted next month, there will still be considerable work involved to develop the guidelines for implementation in 2027. Industry concerns were expressed in dramatic fashion when the US delegation walked out of the MEPC meeting in April in protest over the decarbonization talks. The vote that ended the meeting saw 63 nations voting for the proposal, 16 against and 25 abstentions. The US opposition to the net-zero framework has been gathering some industry support. On Monday, Christopher Wiernicki, the chairman and CEO of Texas-based classification society American Bureau of Shipping (ABS), told a LISW event that shipping and the IMO were on different trajectories. “There is no clear pathway for green fuel availability and scalability and infrastructure support,” Wiernicki said. “LNG and biofuels are mission critical to any success and should not be overlooked, over penalized or discarded in the net-zero regulation,” he added. “Quite frankly, achieving net-zero for shipping by 2050 looks like a wildcard.” Contact Greg Knowler at greg.knowler@spglobal.com . Contact Carly Fields at carly.fields@spglobal.com .

Transport, Trade and Regulation News

Shipping experts warn of ‘disaster’ if IMO’s net-zero framework voted down

<div class="phx-topic abstract-wrapper">The waterway has the capacity to handle 36 daily transits, but ACP Administrator Ricaurte Vásquez Morales told a media briefing the average is projected to land at only 33 next year.</div>

The waterway has the capacity to handle 36 daily transits, but ACP Administrator Ricaurte Vásquez Morales told a media briefing the average is projected to land at only 33 next year.

<div class="phx-topic">Daily transits of commercial vessels through the Panama Canal will remain below its capacity next year due to the tariff-linked frontloading of US imports this year and the softer demand the duties will cause on the East and Gulf coasts, the Panama Canal Authority (ACP) said Tuesday. The waterway has the capacity to handle 36 daily transits, but ACP Administrator Ricaurte Vásquez Morales told a media briefing the daily average is projected to land at only 33 in 2026, still below levels seen before Panama’s 2023–24 drought. The frontloading of US imports to avoid higher tariffs is “bread for today and hunger for tomorrow,” Morales said, adding that tariffs will raise product costs and dampen demand. The canal saw an average of 32.5 daily transits in August, up from an average of 30.9 in 2024. It last hit its capacity of 36 daily transits on average in 2022. In both 2023 and 2024, low water levels drove the ACP to <a href="https://www.joc.com/article/panama-canal-transits-rise-to-almost-normal-levels-as-expansion-work-begins-5703116">limit daily passages through the canal</a>, including a low of 25 in November 2023. While ACP data shows container ships accounted for about 24% of Panama Canal transits during the first eight months of 2025, Morales said about 45% of the canal’s revenue comes from container vessels. The Panama Canal’s fiscal year 2026 budget, approved in August, forecasts a 400-million-ton reduction in transits compared with the 2025 fiscal year, said Morales. “In this volatility, we need to be very careful [and] not generate bigger expectations other than what we consider reasonable, because the Panama Canal revenue represents between 20% and 25% of overall Panamanian government revenue,” he said. Other significant 2026 budget items include investments in the <a href="https://www.joc.com/article/panama-canal-transits-rise-to-almost-normal-levels-as-expansion-work-begins-5703116">Río Indio Lake project</a>, which would address low water concerns through the damming of a Panamanian river. That project, which is expected to cost up to $1.6 billion, will take about four years to complete and is set to begin in 2027. In the meantime, Morales said the canal is better positioned to handle low water levels than it was in the past. “If we have to face [another] El Nino phenomenon, we are prepared,” he said. “The frequency of which this phenomenon occurs is [increasing] and we need to be prepared for that type of condition.” Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

Daily transits of commercial vessels through the Panama Canal will remain below its capacity next year due to the tariff-linked frontloading of US imports this year and the softer demand the duties will cause on the East and Gulf coasts, the Panama Canal Authority (ACP) said Tuesday. The waterway has the capacity to handle 36 daily transits, but ACP Administrator Ricaurte Vásquez Morales told a media briefing the daily average is projected to land at only 33 in 2026, still below levels seen before Panama’s 2023–24 drought. The frontloading of US imports to avoid higher tariffs is “bread for today and hunger for tomorrow,” Morales said, adding that tariffs will raise product costs and dampen demand. The canal saw an average of 32.5 daily transits in August, up from an average of 30.9 in 2024. It last hit its capacity of 36 daily transits on average in 2022. In both 2023 and 2024, low water levels drove the ACP to limit daily passages through the canal , including a low of 25 in November 2023. While ACP data shows container ships accounted for about 24% of Panama Canal transits during the first eight months of 2025, Morales said about 45% of the canal’s revenue comes from container vessels. The Panama Canal’s fiscal year 2026 budget, approved in August, forecasts a 400-million-ton reduction in transits compared with the 2025 fiscal year, said Morales. “In this volatility, we need to be very careful [and] not generate bigger expectations other than what we consider reasonable, because the Panama Canal revenue represents between 20% and 25% of overall Panamanian government revenue,” he said. Other significant 2026 budget items include investments in the Río Indio Lake project , which would address low water concerns through the damming of a Panamanian river. That project, which is expected to cost up to $1.6 billion, will take about four years to complete and is set to begin in 2027. In the meantime, Morales said the canal is better positioned to handle low water levels than it was in the past. “If we have to face [another] El Nino phenomenon, we are prepared,” he said. “The frequency of which this phenomenon occurs is [increasing] and we need to be prepared for that type of condition.” Contact Laura Robb at laura.robb@spglobal.com . 

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US tariffs to keep Panama Canal transits below capacity in 2026: ACP

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

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Transform Barge Operations with Total Visibility

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

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

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Shippers save money, time with automated transportation bidding tools

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

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