<div class="phx-topic abstract-wrapper">Departures from Shanghai and Ningbo are expected to face a two-day delay after a typhoon hit coastal areas of eastern China over the weekend, while some Busan services were also disrupted.</div>

Departures from Shanghai and Ningbo are expected to face a two-day delay after a typhoon hit coastal areas of eastern China over the weekend, while some Busan services were also disrupted.

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<div>Liner services from key Asian ports including Shanghai, Ningbo, and Busan are facing delays after Typhoon Hinnamor, packing winds of 90 miles per hour, battered coastal areas of eastern China and South Korea over the weekend. Thomas Gronen, head of the China business unit at Dubai-headquartered FIBS Logistics, expects a two-day delay for vessels leaving Shanghai's Yangshan deepwater container terminal and terminals in Ningbo, which reopened late Monday evening. “We don’t yet have any delay notices from the shipping lines, but we need to check the individual vessel status on a case-by-case basis,” Gronen told JOC.com Tuesday. “Container yards were...

Liner services from key Asian ports including Shanghai, Ningbo, and Busan are facing delays after Typhoon Hinnamor, packing winds of 90 miles per hour, battered coastal areas of eastern China and South Korea over the weekend. Thomas Gronen, head of the China business unit at Dubai-headquartered FIBS Logistics, expects a two-day delay for vessels leaving Shanghai's Yangshan deepwater container terminal and terminals in Ningbo, which reopened late Monday evening. “We don’t yet have any delay notices from the shipping lines, but we need to check the individual vessel status on a case-by-case basis,” Gronen told JOC.com Tuesday. “Container yards were closed and vessel loading suspended on Sunday,” he added. “By Tuesday, we expect normal operations again and henceforth generally a two-day delay in departures.” Maersk said it was closely monitoring developments and ready to prepare vessel and cargo contingency plans. Shanghai and Ningbo ports were both closed, inbound pilot services suspended, and all container ships told to leave port ahead of the typhoon's arrival at the weekend, a Maersk spokesperson told JOC.com. At Busan, Ocean Network Express (ONE) said Tuesday the typhoon delayed several services, including its Japan-Philippines string that calls at Busan and Manila, and its Japan-South Korea shuttle service. This week’s shuttle sailings have been postponed to next week. Busan Port Authority said the port, the world’s fifth-biggest container port, had been told to return to normal operation at 6 pm local time Tuesday by South Korea's Ministry of Oceans and Fisheries. “So far, fortunately, no casualties or severe impact at the container terminal have been reported,” Lee Min-ju, assistant manager of Busan Port Authority's marketing and international affairs department, told JOC.com Tuesday. Contact Special Correspondent Keith Wallis at keithwallis@hotmail.com .

International ports

Typhoon delays liner services from key Asian ports

<div class="phx-topic abstract-wrapper">High-value megaproject activity in the US is propping up heavy-lift cargo volumes, while also generating breakbulk shipments.</div>

High-value megaproject activity in the US is propping up heavy-lift cargo volumes, while also generating breakbulk shipments.

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<div class="phx-topic">Data center megaprojects are driving a surge of non-residential and industrial construction in the US, mounting a wave of breakbulk and project cargo activity to come as those projects advance. Total construction starts in the US rose by 21.1% in October to $1.53 trillion over the previous month, according to Dodge Construction Network (DCN), an industry data provider. Non-residential construction, which includes offices and data centers, rose by 17.9%, while non-building construction — defined as projects that are not buildings, such as infrastructure and utility projects — expanded 59.4% in that period. For the 12 months ending October 2025, total construction starts were up 8.1% from the previous year, while non-building construction grew 22.9% and non-residential projects starts increased 7.5% over the same period, according to DCN Construction growth has been propped up by “high-value megaproject activity,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Specifically, 10 projects valued at $1 billion and over broke ground, largely within data center, manufacturing and LNG construction,” Martin said of October construction activity in a Nov. 21 report. The largest non-building projects to break ground in October included the $15.1 billion first phase of Venture Global’s Calcasieu Pass 2 (CP2) liquefied natural gas (LNG) export terminal and pipeline in southwest Louisiana and the $9 billion second phase of the Rio Grande LNG facility in Brownsville, Texas. Meanwhile, one of the largest non-residential building projects to break ground in October was a $7.5 billion segment of the Meta Hyperion Data Center in northeast Louisiana. <a href="https://www.joc.com/article/increased-capital-investment-to-accelerate-project-cargo-demand-6111274">The development of LNG facilities</a> has emerged as a potential opportunity to provide natural gas to fuel power-hungry data centers amid the rapid expansion of artificial intelligence (AI). North America continues to progress with a multibillion-dollar round of LNG terminal construction, including the Calcasieu Pass project. Janine Mansour, director of trade development for the Port of New Orleans, told the Journal of Commerce that the CP2 LNG terminal, projected to cost $28 billion overall, is the single-largest project bringing heavy-lift cargo to the port, while also generating breakbulk shipments such as bagged cement. “Venture Global dominates the conversation in terms of LNG and driving cargo opportunities,” she said. The port has also been moving significant amounts of cargo for the $27 billion, 4-million-square-foot Meta campus project, set to become the largest data center in the Western Hemisphere upon its targeted completion in 2030. Mansour said the port has been moving more project cargo related to power generation, as well as working with companies that are exploring ways to provide resources for these facilities. “Projects like the data center create opportunities for the creation of new inland yards or infrastructure near the project,” she said. <h3>Data centers trigger plant projects </h3>Key project cargo shippers have been taking steps to support data center development while also reaping bottom-line benefits from the boom. For the first nine months of 2025, data center revenues shot up 140% to $331 million for oilfield services major SLB, formerly Schlumberger Ltd., compared with the same period a year earlier, according to the company’s Oct. 17 earnings results. Construction and mining equipment maker Caterpillar, considered a bellwether global manufacturer of high-and-heavy cargo, is planning a $725 million expansion of its large-engine facility in Lafayette, Indiana, to increase production of power generators for data centers. And Air Liquide, one of the world’s largest industrial gas suppliers, is investing over $50 million in the US semiconductor industry by building an ultra-pure gas production plant in the southeastern US on the site of the world’s largest manufacturer for advanced chip design. With data centers requiring tremendous amounts of energy, water and resources such as semiconductor chips, the rapid development of these facilities will rely on the extensive buildout of infrastructure such as utility plants and manufacturing facilities. On Dec. 1, Louisiana utility Entergy broke ground on a pair of gas-fired power plants to power the Meta Hyperion data center. Global investments in data center infrastructure are on pace to reach over $1.5 trillion by 2030, according to projections by consultant McKinsey. “Semiconductor chip facilities clearly classify as mega projects,” said Kristin Homsi, Bechtel Manufacturing &amp; Technology’s supply chain manager. “Think the world’s largest airports, a new generation of small modular nuclear reactors, and landmarks like the Hoover Dam or the Channel Tunnel” linking Great Britain and mainland Europe. “Semiconductor projects have recently grown in scale to the level of signature projects” Bechtel has historically taken on, she said. John Lu, global sector head of semiconductor fabrications for the industrial projects unit of DHL Global Forwarding, told the Journal of Commerce that buildouts of chip fabrication facilities, or fabs, will require more end-to-end support from specialized service providers such as logistics companies. “That means every part of this value chain that it takes to construct a fab or data center — moving equipment, warehousing, consulting, customs clearance, anything. It’s going to put a lot more stress on us to perform for our customers, but I think we’re well positioned to do that,” he said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com. </div>

Data center megaprojects are driving a surge of non-residential and industrial construction in the US, mounting a wave of breakbulk and project cargo activity to come as those projects advance. Total construction starts in the US rose by 21.1% in October to $1.53 trillion over the previous month, according to Dodge Construction Network (DCN), an industry data provider. Non-residential construction, which includes offices and data centers, rose by 17.9%, while non-building construction — defined as projects that are not buildings, such as infrastructure and utility projects — expanded 59.4% in that period. For the 12 months ending October 2025, total construction starts were up 8.1% from the previous year, while non-building construction grew 22.9% and non-residential projects starts increased 7.5% over the same period, according to DCN Construction growth has been propped up by “high-value megaproject activity,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Specifically, 10 projects valued at $1 billion and over broke ground, largely within data center, manufacturing and LNG construction,” Martin said of October construction activity in a Nov. 21 report. The largest non-building projects to break ground in October included the $15.1 billion first phase of Venture Global’s Calcasieu Pass 2 (CP2) liquefied natural gas (LNG) export terminal and pipeline in southwest Louisiana and the $9 billion second phase of the Rio Grande LNG facility in Brownsville, Texas. Meanwhile, one of the largest non-residential building projects to break ground in October was a $7.5 billion segment of the Meta Hyperion Data Center in northeast Louisiana. The development of LNG facilities has emerged as a potential opportunity to provide natural gas to fuel power-hungry data centers amid the rapid expansion of artificial intelligence (AI). North America continues to progress with a multibillion-dollar round of LNG terminal construction, including the Calcasieu Pass project. Janine Mansour, director of trade development for the Port of New Orleans, told the Journal of Commerce that the CP2 LNG terminal, projected to cost $28 billion overall, is the single-largest project bringing heavy-lift cargo to the port, while also generating breakbulk shipments such as bagged cement. “Venture Global dominates the conversation in terms of LNG and driving cargo opportunities,” she said. The port has also been moving significant amounts of cargo for the $27 billion, 4-million-square-foot Meta campus project, set to become the largest data center in the Western Hemisphere upon its targeted completion in 2030. Mansour said the port has been moving more project cargo related to power generation, as well as working with companies that are exploring ways to provide resources for these facilities. “Projects like the data center create opportunities for the creation of new inland yards or infrastructure near the project,” she said. Data centers trigger plant projects Key project cargo shippers have been taking steps to support data center development while also reaping bottom-line benefits from the boom. For the first nine months of 2025, data center revenues shot up 140% to $331 million for oilfield services major SLB, formerly Schlumberger Ltd., compared with the same period a year earlier, according to the company’s Oct. 17 earnings results. Construction and mining equipment maker Caterpillar, considered a bellwether global manufacturer of high-and-heavy cargo, is planning a $725 million expansion of its large-engine facility in Lafayette, Indiana, to increase production of power generators for data centers. And Air Liquide, one of the world’s largest industrial gas suppliers, is investing over $50 million in the US semiconductor industry by building an ultra-pure gas production plant in the southeastern US on the site of the world’s largest manufacturer for advanced chip design. With data centers requiring tremendous amounts of energy, water and resources such as semiconductor chips, the rapid development of these facilities will rely on the extensive buildout of infrastructure such as utility plants and manufacturing facilities. On Dec. 1, Louisiana utility Entergy broke ground on a pair of gas-fired power plants to power the Meta Hyperion data center. Global investments in data center infrastructure are on pace to reach over $1.5 trillion by 2030, according to projections by consultant McKinsey. “Semiconductor chip facilities clearly classify as mega projects,” said Kristin Homsi, Bechtel Manufacturing & Technology’s supply chain manager. “Think the world’s largest airports, a new generation of small modular nuclear reactors, and landmarks like the Hoover Dam or the Channel Tunnel” linking Great Britain and mainland Europe. “Semiconductor projects have recently grown in scale to the level of signature projects” Bechtel has historically taken on, she said. John Lu, global sector head of semiconductor fabrications for the industrial projects unit of DHL Global Forwarding, told the Journal of Commerce that buildouts of chip fabrication facilities, or fabs, will require more end-to-end support from specialized service providers such as logistics companies. “That means every part of this value chain that it takes to construct a fab or data center — moving equipment, warehousing, consulting, customs clearance, anything. It’s going to put a lot more stress on us to perform for our customers, but I think we’re well positioned to do that,” he said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com.

Energy projects

Project cargo

Breakbulk News

Maritime

Data center buildout fuels construction boom, project cargo windfall

<div class="phx-topic abstract-wrapper">The Transportation Intermediaries Association launched a hotline that its members can use to report suspected occurrences of cargo fraud and theft, regardless of the dollar value involved. </div>

The Transportation Intermediaries Association launched a hotline that its members can use to report suspected occurrences of cargo fraud and theft, regardless of the dollar value involved.

<div class="phx-topic">The Transportation Intermediaries Association (TIA) has established a partnership with the Federal Bureau of Investigation to aggregate truckload cargo theft and fraud incident information from its nearly 2,000 members. TIA this week launched a hotline that its members — freight brokers and other domestic intermediaries — can use to report suspected occurrences of cargo fraud and theft, regardless of the dollar value involved. The hotline is meant to give members a direct channel to report incidents in situations where a broker doesn’t know whom to contact at a local, state or federal level. TIA President and CEO Chris Burroughs told the Journal of Commerce Thursday that the association has long worked with the six-person cargo theft team at the FBI’s Philadelphia field office to combat theft and fraud. But after discovering that members lacked clarity about where to turn, TIA leadership decided it could take a role in aggregating incident report data on behalf of federal law enforcement. “We get calls on a daily basis from members with situations,” Burroughs said. “We’re not going to have 2,000 companies calling [the FBI field office]. Let us be the intermediary for that information.” TIA will use the hotline to field calls and gather 15 data points the FBI told TIA it needs to build cases against alleged criminal actors. Burroughs emphasized that an incident need not rise to a specific dollar amount to be reported to the hotline, a common roadblock that prevents brokers, carriers and shippers from reporting suspected theft or fraud. “The FBI is building a RICO [Racketeer Influenced and Corrupt Organizations] case, and so they don’t care about the dollar amount,” he said. “In aggregate, it’s billions of dollars.” <h3>Combating a rising threat </h3>The FBI’s cargo theft information website lists data-sharing platforms CargoNet and the Transported Asset Protection Association (TAPA) as partners in its battle against rising levels of fraud, much of which is coordinated by entities outside the US. Private sector freight marketplaces, notably DAT Freight &amp; Analytics and Truckstop.com, have made it a recent priority to eliminate fraud and theft facilitated on their platforms. And software providers built to vet truckload carriers, such as Highway, have focused intently on the issue. In addition, brokers and shippers can use risk management tools, such as Overhaul, to identify theft and report it directly to law enforcement. Burroughs said the broad threat of lost freight has hurt brokers as a whole, with shippers on their advisory board saying as much. Some shippers have told the Journal of Commerce that they are avoiding the use of brokers until the fraud and theft problems are under control. “We see this as a huge threat, which is why we’re spending so much time on this,” Burroughs said. “This is something keeping us up at night.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

The Transportation Intermediaries Association (TIA) has established a partnership with the Federal Bureau of Investigation to aggregate truckload cargo theft and fraud incident information from its nearly 2,000 members. TIA this week launched a hotline that its members — freight brokers and other domestic intermediaries — can use to report suspected occurrences of cargo fraud and theft, regardless of the dollar value involved. The hotline is meant to give members a direct channel to report incidents in situations where a broker doesn’t know whom to contact at a local, state or federal level. TIA President and CEO Chris Burroughs told the Journal of Commerce Thursday that the association has long worked with the six-person cargo theft team at the FBI’s Philadelphia field office to combat theft and fraud. But after discovering that members lacked clarity about where to turn, TIA leadership decided it could take a role in aggregating incident report data on behalf of federal law enforcement. “We get calls on a daily basis from members with situations,” Burroughs said. “We’re not going to have 2,000 companies calling [the FBI field office]. Let us be the intermediary for that information.” TIA will use the hotline to field calls and gather 15 data points the FBI told TIA it needs to build cases against alleged criminal actors. Burroughs emphasized that an incident need not rise to a specific dollar amount to be reported to the hotline, a common roadblock that prevents brokers, carriers and shippers from reporting suspected theft or fraud. “The FBI is building a RICO [Racketeer Influenced and Corrupt Organizations] case, and so they don’t care about the dollar amount,” he said. “In aggregate, it’s billions of dollars.” Combating a rising threat The FBI’s cargo theft information website lists data-sharing platforms CargoNet and the Transported Asset Protection Association (TAPA) as partners in its battle against rising levels of fraud, much of which is coordinated by entities outside the US. Private sector freight marketplaces, notably DAT Freight & Analytics and Truckstop.com, have made it a recent priority to eliminate fraud and theft facilitated on their platforms. And software providers built to vet truckload carriers, such as Highway, have focused intently on the issue. In addition, brokers and shippers can use risk management tools, such as Overhaul, to identify theft and report it directly to law enforcement. Burroughs said the broad threat of lost freight has hurt brokers as a whole, with shippers on their advisory board saying as much. Some shippers have told the Journal of Commerce that they are avoiding the use of brokers until the fraud and theft problems are under control. “We see this as a huge threat, which is why we’re spending so much time on this,” Burroughs said. “This is something keeping us up at night.” Contact Eric Johnson at eric.johnson@spglobal.com .

Transport, Trade and Regulation News

Truck brokers

Truckload

Broker association to aggregate truckload theft, fraud information for FBI

<div class="phx-topic abstract-wrapper">A group of Zim employees is said to object to a deal with Hapag-Lloyd due to the significant ownership stakes that the sovereign wealth funds of Saudi Arabia and Qatar have in the Hamburg-based carrier.</div>

A group of Zim employees is said to object to a deal with Hapag-Lloyd due to the significant ownership stakes that the sovereign wealth funds of Saudi Arabia and Qatar have in the Hamburg-based carrier.

<div class="phx-topic">Zim Integrated Shipping Services is reportedly fielding offers from other ocean carriers for a buyout, but the Israeli government’s stake in Zim and the partial Arabic state ownership of one potential suitor are complicating a possible deal. Israeli business newspaper Globes <a href="https://en.globes.co.il/en/article-hapag-lloyd-bids-for-zim-1001528325">reported Wednesday</a> that Zim received a buyout offer from Hapag-Lloyd as part of <a href="https://www.joc.com/article/zim-says-reviewing-buyout-offers-including-one-from-ceo-6123362">the strategic review its board of directors is undertaking</a>. Zim’s board is considering offers to sell the company, including one from its own Chief Executive Eli Glickman. A group of Zim employees is said to object to a deal with Hapag-Lloyd due to the significant ownership stakes that the sovereign wealth funds of Saudi Arabia and Qatar have in the Hamburg-based carrier, Globes reported. The two funds own a combined 22% of Hapag-Lloyd after its 2016 acquisition of United Arab Shipping Company. A Hapag-Lloyd spokesperson, asked to comment on the Globes report, told the Journal of Commerce, “We do not comment on market rumors.” Zim could not be reached for comment. Globes reported that Mediterranean Shipping Co. and Maersk have also expressed interest in Zim. A US-based Zim executive told the Journal of Commerce a deal with Hapag-Lloyd has about a “zero percent chance of happening” due to the Saudi and Qatari ownership stakes. “I believe with their ownership structure it makes such a relationship impossible,” said the executive, who did not want to be identified. “I don’t think anything other than Eli buying the company is likely.” Zim’s own governance structure complicates any potential deal. As part of the carrier’s privatization in 2004, Israel was granted a “special share” in the company that ensures the government can access Zim’s fleet in an emergency. The government, due to the special share, also “imposes certain limitations on our operating and managing activities,” Zim said in its last annual report. Those limitations include government approval for any merger or sale transaction, a requirement that the majority of Zim’s directors and its chief executive be Israeli citizens, and that the carrier remains incorporated in Israel. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Zim Integrated Shipping Services is reportedly fielding offers from other ocean carriers for a buyout, but the Israeli government’s stake in Zim and the partial Arabic state ownership of one potential suitor are complicating a possible deal. Israeli business newspaper Globes reported Wednesday that Zim received a buyout offer from Hapag-Lloyd as part of the strategic review its board of directors is undertaking . Zim’s board is considering offers to sell the company, including one from its own Chief Executive Eli Glickman. A group of Zim employees is said to object to a deal with Hapag-Lloyd due to the significant ownership stakes that the sovereign wealth funds of Saudi Arabia and Qatar have in the Hamburg-based carrier, Globes reported. The two funds own a combined 22% of Hapag-Lloyd after its 2016 acquisition of United Arab Shipping Company. A Hapag-Lloyd spokesperson, asked to comment on the Globes report, told the Journal of Commerce, “We do not comment on market rumors.” Zim could not be reached for comment. Globes reported that Mediterranean Shipping Co. and Maersk have also expressed interest in Zim. A US-based Zim executive told the Journal of Commerce a deal with Hapag-Lloyd has about a “zero percent chance of happening” due to the Saudi and Qatari ownership stakes. “I believe with their ownership structure it makes such a relationship impossible,” said the executive, who did not want to be identified. “I don’t think anything other than Eli buying the company is likely.” Zim’s own governance structure complicates any potential deal. As part of the carrier’s privatization in 2004, Israel was granted a “special share” in the company that ensures the government can access Zim’s fleet in an emergency. The government, due to the special share, also “imposes certain limitations on our operating and managing activities,” Zim said in its last annual report. Those limitations include government approval for any merger or sale transaction, a requirement that the majority of Zim’s directors and its chief executive be Israeli citizens, and that the carrier remains incorporated in Israel. Contact Michael Angell at michael.angell@spglobal.com .

Container lines

Container Shipping News

Hapag-Lloyd buyout offer for Zim unlikely to get far: report

<div class="phx-topic abstract-wrapper">COO Noel Hacegaba’s elevation to the top executive job would appear to be fait accompli after serving in senior management positions at the port for the past 15 years. </div>

COO Noel Hacegaba’s elevation to the top executive job would appear to be fait accompli after serving in senior management positions at the port for the past 15 years.

<div class="phx-topic">Noel Hacegaba, chief operating officer of the Port of Long Beach, has been nominated to be the port’s new executive director effective Jan. 1. Hacegaba’s nomination was made Wednesday by the Long Beach Board of Harbor Commissioners; the harbor commission will formally vote on his appointment at a board meeting Monday. Hacegaba would replace current Executive Director Mario Cordero, <a href="https://www.joc.com/article/cordero-to-retire-at-end-of-2025-after-eight-years-as-long-beach-executive-director-6091741">who announced in October he would retire at year’s end</a>. Hacegaba’s elevation to be Long Beach’s top executive would appear to be fait accompli. He has served in senior management positions at the port for the past 15 years, rising to his current role as chief operating officer. As COO, he oversees daily operations including commercial services, engineering, finance and administration, planning, environmental affairs and strategic advocacy. Harbor Commission President Frank Colonna called Hacegaba the “ideal choice” for the port’s top job. “Noel brings extensive experience managing all key port functions, deep knowledge of the goods movement industry and a collaborative leadership style that will serve the port well as we navigate future challenges and opportunities,” Colonna said in a statement. As COO, Hacegaba has negotiated several major business transactions, including the multibillion-dollar sales of Long Beach Container Terminal (LBCT) and Total Terminals International (TTI). “I am looking forward to working with our mayor, harbor commission and partners to accelerate our economic engine as we elevate the port’s profile internationally...” Hacegaba said in the statement. A graduate of the University of Southern California, Hacegaba holds undergraduate and graduate degrees in economics, business administration and planning. He earned a doctorate in public administration from the University of La Verne in California. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

Noel Hacegaba, chief operating officer of the Port of Long Beach, has been nominated to be the port’s new executive director effective Jan. 1. Hacegaba’s nomination was made Wednesday by the Long Beach Board of Harbor Commissioners; the harbor commission will formally vote on his appointment at a board meeting Monday. Hacegaba would replace current Executive Director Mario Cordero, who announced in October he would retire at year’s end . Hacegaba’s elevation to be Long Beach’s top executive would appear to be fait accompli. He has served in senior management positions at the port for the past 15 years, rising to his current role as chief operating officer. As COO, he oversees daily operations including commercial services, engineering, finance and administration, planning, environmental affairs and strategic advocacy. Harbor Commission President Frank Colonna called Hacegaba the “ideal choice” for the port’s top job. “Noel brings extensive experience managing all key port functions, deep knowledge of the goods movement industry and a collaborative leadership style that will serve the port well as we navigate future challenges and opportunities,” Colonna said in a statement. As COO, Hacegaba has negotiated several major business transactions, including the multibillion-dollar sales of Long Beach Container Terminal (LBCT) and Total Terminals International (TTI). “I am looking forward to working with our mayor, harbor commission and partners to accelerate our economic engine as we elevate the port’s profile internationally...” Hacegaba said in the statement. A graduate of the University of Southern California, Hacegaba holds undergraduate and graduate degrees in economics, business administration and planning. He earned a doctorate in public administration from the University of La Verne in California. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

North American ports

Hacegaba nominated to be Port of Long Beach executive director

<div class="phx-topic abstract-wrapper">XPO and Saia reported year-over-year increases in daily shipment volume in November, while ODFL raised its yield as shipment volumes dropped. </div>

XPO and Saia reported year-over-year increases in daily shipment volume in November, while ODFL raised its yield as shipment volumes dropped.

<div class="phx-topic">Less-than-truckload (LTL) carriers are beginning to see shipments pick up toward the end of the year, although there’s been little change in overall US freight demand. Both XPO and Saia, the fourth- and sixth-largest US LTL providers, respectively, reported a year-over-year gain in shipments in November, reversing months of declining volumes. Old Dominion Freight Line (ODFL), the second-largest US LTL provider, saw its daily volume drop 9.4% in November, but its revenue per hundredweight climbed higher. Excluding fuel surcharges, ODFL’s LTL yield was up 5.2% year over year in November, an indication of higher pricing and cost management, not a race to secure freight. XPO saw LTL shipments per day increase 2.2% in November, but weight per shipment dropped 3.2%, pulling down tonnage 5.4% year over year. Saia last month increased its shipments per day by 2.6% from a year earlier, while LTL weight per shipment fell 0.8%. The November numbers from three of the largest US LTL providers indicate a more stable market in the fourth quarter, with large LTL carriers largely maintaining their pricing discipline and protecting still-healthy profit margins. Some freight may be shifting from carriers reluctant to budge on price, and those carriers may not be unhappy to see that freight go, for now. The November data may also reflect slightly higher industrial output and the shift of consumer goods to stores pre-holidays. <h3>PPI takes a dip </h3>The US LTL producer price index (PPI) for September, released last week after being delayed by the US government shutdown, fell from an all-time high of 268.4 in August to 267, its first decline since May. That’s a potential sign of pricing moderation. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7a3e2c48-cc85-49d8-bc2c-3eb8ee3be3da"></dynamic-object></div>Still, the LTL PPI is 9.8% higher than September 2024 and 15.7% higher than July 2023 when LTL provider Yellow shut its doors and declared bankruptcy. Shippers have told the Journal of Commerce that LTL carriers are pushing them hard to protect the yield on their existing volume but are more willing to cut pricing on new business. Analysts call this “defending their turf” during a period of soft demand. An increase in US manufacturing output may have given XPO and Saia a boost in November, when the S&amp;P Global Purchasing Manager’s Index (PMI) for US manufacturing came in at 52.2, the fourth consecutive month of expansion. But that growth isn’t as solid as the four-month run might suggest; manufacturing output increased as companies brought in raw materials and inputs ahead of higher US tariffs. Production this fall outpaced manufacturing sales, leading to higher inventories. “For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data were available in 2007,” Chris Williamson, chief business economist for S&amp;P Global, said in a statement. “This unplanned accumulation of stock is usually a precursor to reduced production in the coming months,” Williamson said. That signals fewer shipments coming down the road. The Institute for Supply Management (ISM) PMI has remained in contraction for the past nine months, coming in at 48.2 in November. S&amp;P Global is the parent company of the Journal of Commerce. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

Less-than-truckload (LTL) carriers are beginning to see shipments pick up toward the end of the year, although there’s been little change in overall US freight demand. Both XPO and Saia, the fourth- and sixth-largest US LTL providers, respectively, reported a year-over-year gain in shipments in November, reversing months of declining volumes. Old Dominion Freight Line (ODFL), the second-largest US LTL provider, saw its daily volume drop 9.4% in November, but its revenue per hundredweight climbed higher. Excluding fuel surcharges, ODFL’s LTL yield was up 5.2% year over year in November, an indication of higher pricing and cost management, not a race to secure freight. XPO saw LTL shipments per day increase 2.2% in November, but weight per shipment dropped 3.2%, pulling down tonnage 5.4% year over year. Saia last month increased its shipments per day by 2.6% from a year earlier, while LTL weight per shipment fell 0.8%. The November numbers from three of the largest US LTL providers indicate a more stable market in the fourth quarter, with large LTL carriers largely maintaining their pricing discipline and protecting still-healthy profit margins. Some freight may be shifting from carriers reluctant to budge on price, and those carriers may not be unhappy to see that freight go, for now. The November data may also reflect slightly higher industrial output and the shift of consumer goods to stores pre-holidays. PPI takes a dip The US LTL producer price index (PPI) for September, released last week after being delayed by the US government shutdown, fell from an all-time high of 268.4 in August to 267, its first decline since May. That’s a potential sign of pricing moderation. Still, the LTL PPI is 9.8% higher than September 2024 and 15.7% higher than July 2023 when LTL provider Yellow shut its doors and declared bankruptcy. Shippers have told the Journal of Commerce that LTL carriers are pushing them hard to protect the yield on their existing volume but are more willing to cut pricing on new business. Analysts call this “defending their turf” during a period of soft demand. An increase in US manufacturing output may have given XPO and Saia a boost in November, when the S&P Global Purchasing Manager’s Index (PMI) for US manufacturing came in at 52.2, the fourth consecutive month of expansion. But that growth isn’t as solid as the four-month run might suggest; manufacturing output increased as companies brought in raw materials and inputs ahead of higher US tariffs. Production this fall outpaced manufacturing sales, leading to higher inventories. “For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data were available in 2007,” Chris Williamson, chief business economist for S&P Global, said in a statement. “This unplanned accumulation of stock is usually a precursor to reduced production in the coming months,” Williamson said. That signals fewer shipments coming down the road. The Institute for Supply Management (ISM) PMI has remained in contraction for the past nine months, coming in at 48.2 in November. S&P Global is the parent company of the Journal of Commerce. Contact William B. Cassidy at bill.cassidy@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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