<div class="phx-topic abstract-wrapper">UPS today reported its revenue in the third quarter of 2013 was $13.5 billion, up 3.4 percent year-over-year, driven primarily by U.S. e-commerce shipments and strong European export growth.</div>

UPS today reported its revenue in the third quarter of 2013 was $13.5 billion, up 3.4 percent year-over-year, driven primarily by U.S. e-commerce shipments and strong European export growth.

<div>UPS <a>reported</a> its revenue in the third quarter of 2013 was $13.5 billion, up 3.4 percent year-over-year, driven primarily by U.S. e-commerce shipments and strong European export growth.UPS delivered more than 1 billion packages worldwide in the third quarter, increasing 4.6 percent compared to the same period last year. Daily package volume growth was led by international export and U.S. domestic ground shipments.“UPS is continuing to build global capabilities that position the company to meet the evolving supply chain needs of customers,” said Scott Davis, UPS chairman and CEO, in a written statement. “We are making investments in emerging markets,...

UPS reported its revenue in the third quarter of 2013 was $13.5 billion, up 3.4 percent year-over-year, driven primarily by U.S. e-commerce shipments and strong European export growth. UPS delivered more than 1 billion packages worldwide in the third quarter, increasing 4.6 percent compared to the same period last year. Daily package volume growth was led by international export and U.S. domestic ground shipments. “UPS is continuing to build global capabilities that position the company to meet the evolving supply chain needs of customers,” said Scott Davis, UPS chairman and CEO, in a written statement. “We are making investments in emerging markets, health care distribution and our worldwide retail delivery models, ensuring that UPS delivers both the solutions customers require and the returns our shareowners expect.” The U.S. domestic package division posted operating profit of $1.2 billion in the third quarter, up nearly 16 percent from the same quarter last year, and revenue of $8.3 billion, up 5 percent. Daily package volume was 2.3 percent higher than the same period last year, driven by e-commerce shipments, while Next Day Air volume declined 3.3 percent because of a contraction in letter shipments. The international package segment’s operating profit was $417 million, a decline of $32 million year-over-year, while revenue increased 2.5 percent to $3 billion. Daily package volume improved 6.5 percent, and non-U.S. domestic volume was up 6.3 percent. Notably, UPS recently expanded its presence in Mexico. Furthermore, the supply chain and freight division’s operating profit improved 7 percent in the third quarter to $201 million, while revenue was down slightly at $2.25 billion, as growth in UPS Freight was offset by declines in the forwarding business. “Third quarter results were strong and in line with our expectations,” said Kurt Kuehn, UPS’s CFO. “Looking to the fourth quarter, although some major retailers have expressed caution about holiday spending, they still expect robust online sales.”

Logistics Technology News

UPS Reports 3Q Revenue Growth

<div class="phx-topic abstract-wrapper">The National Association of Waterfront Employers said intermodal service from ports could degrade further unless service commitments are made in the proposed $85 billion deal. </div>

The National Association of Waterfront Employers said intermodal service from ports could degrade further unless service commitments are made in the proposed $85 billion deal.

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<div class="phx-topic">The National Association of Waterfront Employers (NAWE) became the first group in ocean freight to weigh in on the proposed merger of Union Pacific and Norfolk Southern, arguing a combined railroad could mean less competition and further erosion in intermodal service reliability at US ports.In a Dec. 1 letter to the US Surface Transportation Board (STB), NAWE said its members are concerned that reducing the number of Class I railroads through UP’s $85 billion acquisition of NS will further degrade intermodal service at ports. “Marine terminals need an intermodal rail service to handle increasing volumes of trade in order to provide streamlined imports and exports from increasingly strained port complexes,” NAWE’s letter said. “We are greatly concerned as to whether a reduction of two of the four major remaining competitors offering intermodal rail service will serve to benefit our industry.” NAWE, which represents marine terminals and stevedoring companies, said that Class I railroads, in general, are only taking a “best efforts” approach to providing intermodal service at ports. The group said the railroad industry’s focus on maintaining high operating ratios and “precision scheduled railroading” means less reliable intermodal service. Instead, railroads are leaving it to port operators and marine terminals to invest in rail operations “while the railroad usually takes more of an ‘if you build it, I may carry your cargo, if I see fit,’ approach,” NAWE’s letter said. “This results in a situation where the marine terminal industry finances and manages all the placement of intermodal on-dock rail transport, sometimes with very little in return on commitments in level of service,” the group wrote to STB, the federal regulator who will ultimately decide the fate of the proposed merger.<h3>Argues for intermodal growth at smaller ports</h3>Ocean carriers and ports have generally avoided public comments on the merger plans. NAWE said many of its members have good working relationships with the railroads, but it sees more potential for intermodal services to expand outside of larger ports by offering shippers more reach through less crowded gateways. The combination of two Class I railroads serving both coasts will further concentrate international intermodal freight at already busy ports, it said. “We need intermodal railroad services that expand the reach and capacity of medium-sized ports so they grow, but more fundamentally, we need to build a stronger business partnership with the railroads,” NAWE said. “Other port areas of the nation continue to struggle for commitment of service and greater level of investment to help spur growth.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The National Association of Waterfront Employers (NAWE) became the first group in ocean freight to weigh in on the proposed merger of Union Pacific and Norfolk Southern, arguing a combined railroad could mean less competition and further erosion in intermodal service reliability at US ports. In a Dec. 1 letter to the US Surface Transportation Board (STB), NAWE said its members are concerned that reducing the number of Class I railroads through UP’s $85 billion acquisition of NS will further degrade intermodal service at ports. “Marine terminals need an intermodal rail service to handle increasing volumes of trade in order to provide streamlined imports and exports from increasingly strained port complexes,” NAWE’s letter said. “We are greatly concerned as to whether a reduction of two of the four major remaining competitors offering intermodal rail service will serve to benefit our industry.” NAWE, which represents marine terminals and stevedoring companies, said that Class I railroads, in general, are only taking a “best efforts” approach to providing intermodal service at ports. The group said the railroad industry’s focus on maintaining high operating ratios and “precision scheduled railroading” means less reliable intermodal service. Instead, railroads are leaving it to port operators and marine terminals to invest in rail operations “while the railroad usually takes more of an ‘if you build it, I may carry your cargo, if I see fit,’ approach,” NAWE’s letter said. “This results in a situation where the marine terminal industry finances and manages all the placement of intermodal on-dock rail transport, sometimes with very little in return on commitments in level of service,” the group wrote to STB, the federal regulator who will ultimately decide the fate of the proposed merger. Argues for intermodal growth at smaller ports Ocean carriers and ports have generally avoided public comments on the merger plans. NAWE said many of its members have good working relationships with the railroads, but it sees more potential for intermodal services to expand outside of larger ports by offering shippers more reach through less crowded gateways. The combination of two Class I railroads serving both coasts will further concentrate international intermodal freight at already busy ports, it said. “We need intermodal railroad services that expand the reach and capacity of medium-sized ports so they grow, but more fundamentally, we need to build a stronger business partnership with the railroads,” NAWE said. “Other port areas of the nation continue to struggle for commitment of service and greater level of investment to help spur growth.” Contact Michael Angell at michael.angell@spglobal.com .

North-American rail

Intermodal providers

North American ports

Ports urge strict review of intermodal impacts from UP-NS merger

<div class="phx-topic abstract-wrapper">o9 Solutions contends that client data and confidential information on its platform were passed to SAP while three of its sales executives moved to the German software giant. </div>

o9 Solutions contends that client data and confidential information on its platform were passed to SAP while three of its sales executives moved to the German software giant.

<div class="phx-topic">Supply chain software vendor o9 Solutions is alleging that three of its former sales executives were recruited to join SAP so the German software giant could get access to proprietary and confidential documents related to o9’s platform, according to a lawsuit filed in the US District Court. The lawsuit, filed last week in Dallas where o9 is based, contends that its former chief revenue officer Stephane de Barse and sales executives Stijn-Pieter van Houten and Sean Zonneveld had systematically downloaded confidential system and client files over a few months before giving their notice, while coordinating the downloads with SAP before joining that company earlier this year. The lawsuit alleges that SAP, under pressure to upgrade its existing Advanced Planning and Optimization (APO) supply chain management platform, planned to retire that tool by 2027 and migrate its customers to its new supply chain management solution, called Integrated Business Planning (IBP). “However, contrary to SAP’s expectation, the market has demonstrated significant resistance and hesitation towards implementing SAP’s IBP platform due to its high costs, long timeline, operational risks, and poor implementation and support for existing customization,” o9 said in the lawsuit. “As a result of the failings in SAP’s offerings, numerous APO customers decided to move away from SAP services to other vendors, including o9, for a better, more refined platform.” Among the allegations in the lawsuit, o9 contends that de Barse, after giving notice on Jan. 3, 2025, that he would be departing the company Feb. 28, coordinated with the other two defendants to download specific client files and coordinate with SAP. The lawsuit alleges that the defendants downloaded approximately 22,000 documents in all, violating the terms of their contracts and US and Texas trade secret laws, with o9 seeking a judgment that would prevent the three executives from competing with o9, requiring them to return any downloaded documents and being awarded unspecified punitive damages. <h3>SAP says ‘not aware of any wrongdoing’ </h3>SAP, in a statement to the Journal of Commerce, said it takes o9’s allegations “very seriously.” “SAP is committed to the highest standards of business ethics and respects the intellectual property rights of others,” SAP said. “Our commitment to integrity and doing business the right way is unwavering — these principles are the foundation of our company. While SAP is not aware of any wrongdoing, we take these allegations very seriously and are looking into them. SAP will respond, as appropriate, through the legal process.” Founded in 2009, o9 provides supply chain management software to shippers, a market where it competes with SAP and dozens of other providers that help shippers coordinate planning and execution of manufacturing, transportation, warehousing and distribution processes. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Supply chain software vendor o9 Solutions is alleging that three of its former sales executives were recruited to join SAP so the German software giant could get access to proprietary and confidential documents related to o9’s platform, according to a lawsuit filed in the US District Court. The lawsuit, filed last week in Dallas where o9 is based, contends that its former chief revenue officer Stephane de Barse and sales executives Stijn-Pieter van Houten and Sean Zonneveld had systematically downloaded confidential system and client files over a few months before giving their notice, while coordinating the downloads with SAP before joining that company earlier this year. The lawsuit alleges that SAP, under pressure to upgrade its existing Advanced Planning and Optimization (APO) supply chain management platform, planned to retire that tool by 2027 and migrate its customers to its new supply chain management solution, called Integrated Business Planning (IBP). “However, contrary to SAP’s expectation, the market has demonstrated significant resistance and hesitation towards implementing SAP’s IBP platform due to its high costs, long timeline, operational risks, and poor implementation and support for existing customization,” o9 said in the lawsuit. “As a result of the failings in SAP’s offerings, numerous APO customers decided to move away from SAP services to other vendors, including o9, for a better, more refined platform.” Among the allegations in the lawsuit, o9 contends that de Barse, after giving notice on Jan. 3, 2025, that he would be departing the company Feb. 28, coordinated with the other two defendants to download specific client files and coordinate with SAP. The lawsuit alleges that the defendants downloaded approximately 22,000 documents in all, violating the terms of their contracts and US and Texas trade secret laws, with o9 seeking a judgment that would prevent the three executives from competing with o9, requiring them to return any downloaded documents and being awarded unspecified punitive damages. SAP says ‘not aware of any wrongdoing’ SAP, in a statement to the Journal of Commerce, said it takes o9’s allegations “very seriously.” “SAP is committed to the highest standards of business ethics and respects the intellectual property rights of others,” SAP said. “Our commitment to integrity and doing business the right way is unwavering — these principles are the foundation of our company. While SAP is not aware of any wrongdoing, we take these allegations very seriously and are looking into them. SAP will respond, as appropriate, through the legal process.” Founded in 2009, o9 provides supply chain management software to shippers, a market where it competes with SAP and dozens of other providers that help shippers coordinate planning and execution of manufacturing, transportation, warehousing and distribution processes. Contact Eric Johnson at eric.johnson@spglobal.com .

SAP sued by supply chain software competitor over alleged trade secret theft

<div class="phx-topic abstract-wrapper">The railroad says the appointment system will create more “predictable operations” by controlling the number of containers that are in-gated each day.</div>

The railroad says the appointment system will create more “predictable operations” by controlling the number of containers that are in-gated each day.

<div class="phx-topic">Norfolk Southern Railway (NS) has begun requiring truck drivers to make reservations to drop off domestic intermodal loads, with a system-wide rollout of the program scheduled to continue through March. As of Dec. 1, drivers must secure a reservation to deliver domestic containers to the NS terminal in Charlotte, North Carolina. Reservations are now also required in Atlanta; Columbus, Ohio; Jacksonville, Florida.; Kansas City, Missouri; Memphis and St. Louis after a “soft” rollout of the appointment system over the past few months, NS said, adding that one additional terminal will be added each week for the next 16 weeks. “We softly rolled [our mandatory appointment system] out for domestic [intermodal] in a handful of lanes, mostly between Chicago and New England,” Norfolk Southern said in a statement to intermodal partners that was seen by the Journal of Commerce. “After a year’s worth of testing and systems enhancements, we will be rolling [it] out systemwide.” The railroad says the reservation system will create more “predictable operations.” By controlling the number of containers that are in-gated each day, NS says it can reduce so-called origin dwell, or how long a container sits before being loaded on a train. Lower dwell times prevent terminals from becoming congested and preserve capacity to unload inbound trains quickly, according to the railroad. “By reducing variability and enhancing operational predictability, we aim to deliver better service and support to our customers,” NS said in the advisory. Key rollout dates ahead include Dec. 8 in Philadelphia; Feb. 2 in Harrisburg, Pennsylvania; Feb. 9 in Newark (Croxton), New Jersey; and Feb. 23 at Chicago’s 47th Street terminal. International intermodal customers already use a reservation system at several NS hubs, including Atlanta, Memphis and Chicago. BNSF Railway is now the only Class I North American railroad that does not require reservations for domestic intermodal drop-offs. <h3>Extra step for IMCs </h3>NS will host information sessions across its network to brief motor carriers and intermodal marketing companies (IMCs) on the new requirements. Sessions are scheduled in Cincinnati on Dec. 10 and Louisville on Dec. 11, ahead of those markets adopting the reservations system in mid-January. The change adds a planning step for IMCs to ensure loads depart on time by booking and providing reservation numbers to third-party drayage carriers. During peak periods, NS may also cap how many containers an IMC can ingate daily, potentially delaying some shipments. High-volume IMCs will receive a daily allocation of reservation slots per terminal. Once that allotment is exceeded, IMCs must use an open pool of remaining slots on a first-come, first-served basis. CSX Transportation — NS’ chief competitor in the eastern US domestic market — has used a similar reservation system since 2019. During the pandemic-era freight surge, reservation slots at times filled for days in Chicago and other hubs, leaving IMCs waiting to ingate containers. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Norfolk Southern Railway (NS) has begun requiring truck drivers to make reservations to drop off domestic intermodal loads, with a system-wide rollout of the program scheduled to continue through March. As of Dec. 1, drivers must secure a reservation to deliver domestic containers to the NS terminal in Charlotte, North Carolina. Reservations are now also required in Atlanta; Columbus, Ohio; Jacksonville, Florida.; Kansas City, Missouri; Memphis and St. Louis after a “soft” rollout of the appointment system over the past few months, NS said, adding that one additional terminal will be added each week for the next 16 weeks. “We softly rolled [our mandatory appointment system] out for domestic [intermodal] in a handful of lanes, mostly between Chicago and New England,” Norfolk Southern said in a statement to intermodal partners that was seen by the Journal of Commerce. “After a year’s worth of testing and systems enhancements, we will be rolling [it] out systemwide.” The railroad says the reservation system will create more “predictable operations.” By controlling the number of containers that are in-gated each day, NS says it can reduce so-called origin dwell, or how long a container sits before being loaded on a train. Lower dwell times prevent terminals from becoming congested and preserve capacity to unload inbound trains quickly, according to the railroad. “By reducing variability and enhancing operational predictability, we aim to deliver better service and support to our customers,” NS said in the advisory. Key rollout dates ahead include Dec. 8 in Philadelphia; Feb. 2 in Harrisburg, Pennsylvania; Feb. 9 in Newark (Croxton), New Jersey; and Feb. 23 at Chicago’s 47th Street terminal. International intermodal customers already use a reservation system at several NS hubs, including Atlanta, Memphis and Chicago. BNSF Railway is now the only Class I North American railroad that does not require reservations for domestic intermodal drop-offs. Extra step for IMCs NS will host information sessions across its network to brief motor carriers and intermodal marketing companies (IMCs) on the new requirements. Sessions are scheduled in Cincinnati on Dec. 10 and Louisville on Dec. 11, ahead of those markets adopting the reservations system in mid-January. The change adds a planning step for IMCs to ensure loads depart on time by booking and providing reservation numbers to third-party drayage carriers. During peak periods, NS may also cap how many containers an IMC can ingate daily, potentially delaying some shipments. High-volume IMCs will receive a daily allocation of reservation slots per terminal. Once that allotment is exceeded, IMCs must use an open pool of remaining slots on a first-come, first-served basis. CSX Transportation — NS’ chief competitor in the eastern US domestic market — has used a similar reservation system since 2019. During the pandemic-era freight surge, reservation slots at times filled for days in Chicago and other hubs, leaving IMCs waiting to ingate containers. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Norfolk Southern to roll out reservation system on domestic intermodal

<div class="phx-topic abstract-wrapper">The move is significant as the carrier has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe.</div>

The move is significant as the carrier has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe.

<div class="phx-topic">While an en masse return to the Red Sea and Suez Canal by mainline carriers remains a sketchy proposition despite recent positive signals, there seem to be other industry moves on carriers’ growing engagement in the traditional, shorter trade route as customers seek faster transits. Direct routings involving transshipment via hubs in the Middle East such as Jeddah (Saudi Arabia), Jebel Ali (the United Arab Emirates) and Salalah (Oman) are one such strategy. Multiple freight forwarder sources in Mumbai who spoke with the Journal of Commerce have reported that Maersk is offering Indian shippers, particularly reefer cargo interests, a specialized service product for direct connections into the Europe/Mediterranean market through relays at Salalah, in addition to Jeddah and Jebel Ali that had already been available. Sources noted that Maersk is using UAE-based short-haul operator Safeen Feeders, reportedly a subsidiary of AD Ports, to transship cargo out of Salalah, with the current contracted movement pegged at between 600 TEUs and 700 TEUs per week. When contacted by the Journal of Commerce, a spokesperson for Maersk confirmed the Jeddah shuttle play for Indian cargo but declined to comment on Salalah options networked by “third-party” feeder capacity. “We have three shuttle services sailing from the Med to Jeddah [Jeddah 1, Jeddah 2 and Jeddah 3], which are the main contributors to the use of Suez Canal,” said the spokesperson. “Maersk doesn’t have any mainliner or shuttle service sailing through the Bab el-Mandeb Strait right now.” <h3>Service is key for Indian grape exports </h3>Salalah is a key hub for the Gemini Cooperation network, including Maersk’s ME1 and ME11 services connecting Nhava Sheva/Mundra (West India) to North Europe and the Mediterranean. The new offering is somewhat akin to the “named account product [NAP]” that Maersk has had in its service profile for years, by which the liner promises a client/cargo-specific special routing for a premium price, sources noted. The move is significant as Maersk has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe. According to sources, the Danish liner has also begun approaching major Indian grape traders/exporters with a strategy to lock their upcoming time-sensitive shipment plans under the new, faster shipping service. Maersk handled approximately 3,000 containers out of the total 9,000 boxes of grape freight shipped to Europe during the last season, a market share that industry sources say was lower than the carrier’s historical 40% sway. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

While an en masse return to the Red Sea and Suez Canal by mainline carriers remains a sketchy proposition despite recent positive signals, there seem to be other industry moves on carriers’ growing engagement in the traditional, shorter trade route as customers seek faster transits. Direct routings involving transshipment via hubs in the Middle East such as Jeddah (Saudi Arabia), Jebel Ali (the United Arab Emirates) and Salalah (Oman) are one such strategy. Multiple freight forwarder sources in Mumbai who spoke with the Journal of Commerce have reported that Maersk is offering Indian shippers, particularly reefer cargo interests, a specialized service product for direct connections into the Europe/Mediterranean market through relays at Salalah, in addition to Jeddah and Jebel Ali that had already been available. Sources noted that Maersk is using UAE-based short-haul operator Safeen Feeders, reportedly a subsidiary of AD Ports, to transship cargo out of Salalah, with the current contracted movement pegged at between 600 TEUs and 700 TEUs per week. When contacted by the Journal of Commerce, a spokesperson for Maersk confirmed the Jeddah shuttle play for Indian cargo but declined to comment on Salalah options networked by “third-party” feeder capacity. “We have three shuttle services sailing from the Med to Jeddah [Jeddah 1, Jeddah 2 and Jeddah 3], which are the main contributors to the use of Suez Canal,” said the spokesperson. “Maersk doesn’t have any mainliner or shuttle service sailing through the Bab el-Mandeb Strait right now.” Service is key for Indian grape exports Salalah is a key hub for the Gemini Cooperation network, including Maersk’s ME1 and ME11 services connecting Nhava Sheva/Mundra (West India) to North Europe and the Mediterranean. The new offering is somewhat akin to the “named account product [NAP]” that Maersk has had in its service profile for years, by which the liner promises a client/cargo-specific special routing for a premium price, sources noted. The move is significant as Maersk has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe. According to sources, the Danish liner has also begun approaching major Indian grape traders/exporters with a strategy to lock their upcoming time-sensitive shipment plans under the new, faster shipping service. Maersk handled approximately 3,000 containers out of the total 9,000 boxes of grape freight shipped to Europe during the last season, a market share that industry sources say was lower than the carrier’s historical 40% sway. Contact Bency Mathew at bencyvmathew@gmail.com .

Port News

Cool Cargo News

Container lines

International ports

Container Shipping News

Maritime

Maersk offers Indian reefer shippers Red Sea-based service product: sources

<div class="phx-topic abstract-wrapper">The French carrier plans to enter the long-crimped trade lane via subsidiary brand CNC Line, with a targeted launch in January, market sources say.</div>

The French carrier plans to enter the long-crimped trade lane via subsidiary brand CNC Line, with a targeted launch in January, market sources say.

<div class="phx-topic">CMA CGM is in the final stages of laying out the operational framework to begin accepting container bookings from India to Russia as carriers search for incremental cargo opportunities to lift revenue and profitability amid multiple market challenges. The French carrier plans to enter the long-crimped trade lane via subsidiary brand CNC Line, with a targeted launch in January, market sources say. The strategy behind operating on a group arm bill of lading system instead of CMA CGM’s own contract of carriage/instrument is to limit potential operational and compliance risks from ongoing Western sanctions against Russia due to Moscow’s almost four-year-long war against Ukraine, sources believe. Founded in 1971, Singapore-headquartered CNC (formerly Cheng Lie Navigation Company) — a predominant intra-Asia operator — was acquired by CMA CGM in 2007. CMA CGM declined to comment on the matter when contacted by the Journal of Commerce. <h3>Transshipment options </h3>Current indications are that space will be allocated on CMA CGM’s India-Europe “Epic” service for Russian loading out of Nhava Sheva and Mundra with likely transshipment options over Hamburg. To that end, the carrier is said to be considering expanding its Finland Express (FLX) service with a new call to St. Petersburg, Russia’s main gateway port. The Baltic feeder now rotates Bremerhaven, Hamburg, Rauma, Tallinn, Kotka, Helsinki and Bremerhaven, available data shows. Mediterranean Shipping Co. is the only mainline carrier that has continued to provide coverage for Indian shipments to Russia on the back of multiple feeder networks between North Europe and Russia, including the Baltic Loop 02 that shuttles between Antwerp, Klaipeda, Kotka and St. Petersburg. Corten Shipping is one emerging secondary carrier on the India-Russia trade lane, offering two fortnightly direct connections out of Nhava Sheva/Kandla with three 1,500-TEU ships that boast transit times of 25 days to St. Petersburg and 18 days to Novorossiysk. Considering the typical limitations of sanctioned trades, pharmaceutical products as well as food and agricultural items are generally shipped to Russia, although some construction materials, mainly tiles, are also carried by ad-hoc vessel operators. Anecdotal industry data puts India-Russia container volumes at 8,000 TEUs a week. The freight yield is admittedly lucrative for capacity participants — pegged at $3,000 per TEU and $4,000 per FEU for dry cargo and $9,000 per FEU for reefer loads from Nhava Sheva to St. Petersburg. As US tariff-stricken Indian exporters and policy makers seek trade diversification, Russian volume gains are one option on the table. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

CMA CGM is in the final stages of laying out the operational framework to begin accepting container bookings from India to Russia as carriers search for incremental cargo opportunities to lift revenue and profitability amid multiple market challenges. The French carrier plans to enter the long-crimped trade lane via subsidiary brand CNC Line, with a targeted launch in January, market sources say. The strategy behind operating on a group arm bill of lading system instead of CMA CGM’s own contract of carriage/instrument is to limit potential operational and compliance risks from ongoing Western sanctions against Russia due to Moscow’s almost four-year-long war against Ukraine, sources believe. Founded in 1971, Singapore-headquartered CNC (formerly Cheng Lie Navigation Company) — a predominant intra-Asia operator — was acquired by CMA CGM in 2007. CMA CGM declined to comment on the matter when contacted by the Journal of Commerce. Transshipment options Current indications are that space will be allocated on CMA CGM’s India-Europe “Epic” service for Russian loading out of Nhava Sheva and Mundra with likely transshipment options over Hamburg. To that end, the carrier is said to be considering expanding its Finland Express (FLX) service with a new call to St. Petersburg, Russia’s main gateway port. The Baltic feeder now rotates Bremerhaven, Hamburg, Rauma, Tallinn, Kotka, Helsinki and Bremerhaven, available data shows. Mediterranean Shipping Co. is the only mainline carrier that has continued to provide coverage for Indian shipments to Russia on the back of multiple feeder networks between North Europe and Russia, including the Baltic Loop 02 that shuttles between Antwerp, Klaipeda, Kotka and St. Petersburg. Corten Shipping is one emerging secondary carrier on the India-Russia trade lane, offering two fortnightly direct connections out of Nhava Sheva/Kandla with three 1,500-TEU ships that boast transit times of 25 days to St. Petersburg and 18 days to Novorossiysk. Considering the typical limitations of sanctioned trades, pharmaceutical products as well as food and agricultural items are generally shipped to Russia, although some construction materials, mainly tiles, are also carried by ad-hoc vessel operators. Anecdotal industry data puts India-Russia container volumes at 8,000 TEUs a week. The freight yield is admittedly lucrative for capacity participants — pegged at $3,000 per TEU and $4,000 per FEU for dry cargo and $9,000 per FEU for reefer loads from Nhava Sheva to St. Petersburg. As US tariff-stricken Indian exporters and policy makers seek trade diversification, Russian volume gains are one option on the table. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM poised to venture into India-Russia trade despite war sanctions

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

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Shippers save money, time with automated transportation bidding tools

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

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Filling the Supply Chain Education Gap with LTL Education Courses

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