<div class="phx-topic abstract-wrapper">A new agreement between the US and Canada will allow the two countries to fully clear cargo before railroads and trucks reach landside ports of entry, reducing congestion and freeing up customs officials.
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A new agreement between the US and Canada will allow the two countries to fully clear cargo before railroads and trucks reach landside ports of entry, reducing congestion and freeing up customs officials.

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<div>Canada and the United States have reached a deal that lays the groundwork for faster rail and truck trade between the neighbors by expanding a preclearance program to land and marine ports of entry. While pre-inspection pilots have allowed faster clearance of trucked and railed freight by handling some of the customs paperwork before cargo hits the border, the new agreement will allow the two countries to fully clear cargo before railroads and trucks reach landside ports of entry, reducing congestion and freeing up customs officials. It will take time, however, before US customs agencies can create pre-clearance capabilities, and...

Canada and the United States have reached a deal that lays the groundwork for faster rail and truck trade between the neighbors by expanding a preclearance program to land and marine ports of entry. While pre-inspection pilots have allowed faster clearance of trucked and railed freight by handling some of the customs paperwork before cargo hits the border, the new agreement will allow the two countries to fully clear cargo before railroads and trucks reach landside ports of entry, reducing congestion and freeing up customs officials. It will take time, however, before US customs agencies can create pre-clearance capabilities, and the pact is no guarantee the new capabilities will be realized. There are pre-inspection pilots at land ports of entry, such as at the Peace Bridge to Buffalo, New York, and at Blaine, Washington, but preclearance is only available for southbound air cargo at eight Canadian airports in Calgary, Edmonton, Halifax, Montreal, Ottawa, Toronto, Vancouver, and Winnipeg. The number of trucks traversing US-Canada ports of entry was down 2.7 percent in the first quarter of 2019 on a year-over-year basis, equating to about 1.38 million truck crossings, according to the US Bureau of Transportation Statistics. Pressure on truck drivers to make better use of their time has only increased, though, after the 2017 implementation of the US electronic-logging device (ELD) rule made it harder for US truck drivers and those Canadian truckers making cross-border moves to fudge how long they’re allowed to drive without taking a break. Considering that many of the goods hauled are used in auto production and other manufacturing, shippers are under pressure to not only keep cross-border truck rates down but also ensure that shipments are delivered on time, or risk holding up a factory line. Preclearance was included as a part of “shared border management” in the Security and Prosperity Partnership of North America. That plan called for streamlined customs clearance as well as a pilot project shifting some US Customs operations to Canada from cramped accommodations in Buffalo, and moving Canadian customs to Alexandria Bay in New York. The plans were later scrapped in 2007 , however, after then-Homeland Security Secretary Michael Chertoff broke off negotiations with former Canadian Public Safety Minister Stockwell Day. The US would not accept rigorous background and criminal checks as alternatives to fingerprinting, even if individuals decided not to enter the country. Canada only allows fingerprinting of persons charged with a crime. At the time, it seemed unlikely a preclearance agreement would ever come to fruition. But in 2011, then-president Barack Obama and Canadian Prime Minister Stephen Harper launched Beyond the Border, a new initiative to speed the movement of goods and people across the border and push for a new preclearance arrangement between the countries. Two years ago, separate legislation was introduced in both countries to expand the preclearance partnership. Through the new arrangement, US customs officials would be stationed in Canada, and vice versa for Canadian customs officials.

Trucking News

US-Canada truck preclearance moves closer to reality

<div class="phx-topic abstract-wrapper">The port’s CEO said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput.</div>

The port’s CEO said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput.

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<div class="phx-topic">Labor woes and congestion in 2025 cost the Port of Antwerp-Bruges both cargo volumes and market share, the head of the Belgian port complex said Tuesday. Port CEO Jacques Vandermeiren said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput, as carriers switched to alternative ports. That left container throughput for the year virtually flat, growing just 0.7% to 13.6 million TEUs. Vandermeiren pointed out that delays on the inland transport network, especially rail, were even longer, without giving a figure. “Carriers prefer to go to other ports instead of waiting,” Vandermeiren said during an online results briefing, adding he was unsure if the loss of services and port calls is permanent or temporary. “Twenty-five days is a lot. In my opinion, (a) once in a lifetime (event). But not a second time.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="737395cc-597a-42a5-b9e6-29ec807687cf"></dynamic-object></div>Container traffic remained the biggest contributor in tonnage terms, accounting for 150 million mt of the 267 million mt Antwerp-Bruges handled last year. But overall cargo volumes, including dry and liquid cargoes, were down 4% year over year. The switch in services due to labor unrest and congestion led Antwerp-Bruges to lose market share to other north European ports in the Hamburg-Le Havre region, Vandermeiren added. He said the port’s market share slipped 1.2 percentage points to 29.3%. Cargo disruption caused by vessel diversions around southern Africa, unpredictable US tariff policies and shifts in carrier alliance memberships, especially the launch of the Maersk/Hapag-Lloyd Gemini Cooperation, also added extra pressure to the logistics chain. The total number of vessels waiting to berth in Antwerp during the fourth quarter was about 35% higher than Q4 2024, according to data from Portcast. <h3>China business picks up amid US tariffs </h3>Vandermeiren pointed out that US tariffs on China caused a 3.8% increase in container imports from China to Antwerp amid, although containerized exports to China fell 3.3%. He was hopeful though that stability within the alliances, coupled with the more efficient handling of goods in the port, meant congestion would not be an issue this year. Vandermeiren was also optimistic that labor relations would improve, especially among the marine pilots who are discussing a new organization. “The discussions are evolving well in a constructive atmosphere,” he said.” So hopefully we will not have those 25 days (of disruption) again.” Vandermeiren said last year’s congestion problems increased the urgency for $6 billion worth of projects on the board, including Antwerp’s extra container capacity initiative that aims to add an extra 7.1 million TEUs of capacity. This will be achieved through the construction of additional dock space, including the expansion of the North Sea terminal. The regional Flemish government has already approved part of the work. Vandermeiren expects construction will start on all the projects this year and in 2027, with completion by 2032-33. “Without additional capacity, there is a risk that a large part of container traffic will shift to foreign ports,” a port spokesperson said. Contact Keith Wallis at <a href="https://www.joc.com/article/keithwallis@hotmail.com.">keithwallis@hotmail.com.</a></div>

Labor woes and congestion in 2025 cost the Port of Antwerp-Bruges both cargo volumes and market share, the head of the Belgian port complex said Tuesday. Port CEO Jacques Vandermeiren said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput, as carriers switched to alternative ports. That left container throughput for the year virtually flat, growing just 0.7% to 13.6 million TEUs. Vandermeiren pointed out that delays on the inland transport network, especially rail, were even longer, without giving a figure. “Carriers prefer to go to other ports instead of waiting,” Vandermeiren said during an online results briefing, adding he was unsure if the loss of services and port calls is permanent or temporary. “Twenty-five days is a lot. In my opinion, (a) once in a lifetime (event). But not a second time.” Container traffic remained the biggest contributor in tonnage terms, accounting for 150 million mt of the 267 million mt Antwerp-Bruges handled last year. But overall cargo volumes, including dry and liquid cargoes, were down 4% year over year. The switch in services due to labor unrest and congestion led Antwerp-Bruges to lose market share to other north European ports in the Hamburg-Le Havre region, Vandermeiren added. He said the port’s market share slipped 1.2 percentage points to 29.3%. Cargo disruption caused by vessel diversions around southern Africa, unpredictable US tariff policies and shifts in carrier alliance memberships, especially the launch of the Maersk/Hapag-Lloyd Gemini Cooperation, also added extra pressure to the logistics chain. The total number of vessels waiting to berth in Antwerp during the fourth quarter was about 35% higher than Q4 2024, according to data from Portcast. China business picks up amid US tariffs Vandermeiren pointed out that US tariffs on China caused a 3.8% increase in container imports from China to Antwerp amid, although containerized exports to China fell 3.3%. He was hopeful though that stability within the alliances, coupled with the more efficient handling of goods in the port, meant congestion would not be an issue this year. Vandermeiren was also optimistic that labor relations would improve, especially among the marine pilots who are discussing a new organization. “The discussions are evolving well in a constructive atmosphere,” he said.” So hopefully we will not have those 25 days (of disruption) again.” Vandermeiren said last year’s congestion problems increased the urgency for $6 billion worth of projects on the board, including Antwerp’s extra container capacity initiative that aims to add an extra 7.1 million TEUs of capacity. This will be achieved through the construction of additional dock space, including the expansion of the North Sea terminal. The regional Flemish government has already approved part of the work. Vandermeiren expects construction will start on all the projects this year and in 2027, with completion by 2032-33. “Without additional capacity, there is a risk that a large part of container traffic will shift to foreign ports,” a port spokesperson said. Contact Keith Wallis at keithwallis@hotmail.com.

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Labor action, congestion cost Antwerp-Bruges cargo volumes, market share in 2025

<div class="phx-topic abstract-wrapper">Union Pacific Railroad called the decision by federal regulators to rule its filing as “incomplete” a minor setback that won’t significantly change the timeline for its hoped-for acquisition of NS.</div>

Union Pacific Railroad called the decision by federal regulators to rule its filing as “incomplete” a minor setback that won’t significantly change the timeline for its hoped-for acquisition of NS.

<div class="phx-topic">Union Pacific Railroad said Tuesday it is moving quickly to address deficiencies that led federal regulators to deem its application to acquire Norfolk Southern Railway “incomplete,” and expects to refile an updated application within “weeks.”   Once UP resubmits its application, the regulatory process will restart with a fresh 30-day review period during which the US Surface Transportation Board (STB) will determine whether the new filing is complete. Interested parties may file comments during that period, and UP and NS can respond. “We are disappointed that the STB determined we needed to provide more information after providing close to 7,000 pages,” UP CEO Jim Vena said during the railroad’s fourth-quarter earnings call Tuesday. “Our response will take a few weeks to prepare and then we will refile our application as soon as possible.  “We view this as a short-term blip and do not expect a significant change to the timeline as we are still targeting closing in the first half of 2027,” he added. Although UP did not provide a specific refiling date, Vena said the company would announce the timing in a subsequent public statement and that a revised application could be sent to the STB in March. The <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">STB determined that UP failed to provide</a> sufficient information on future growth, citing inconsistencies in baseline assumptions across different sections of its application. Opponents of the $85 billion deal have also argued that Union Pacific’s projections, including removing 2 million truckloads from highways in large part through 1.17 million truckload-to-intermodal conversions within three years, are overly optimistic. Vena said long-haul intermodal routes exceeding 2,000 miles historically have lower rail market share because shippers are reluctant to accept handoffs between railroads in hubs such as Chicago. Under a combined Union Pacific–Norfolk Southern network, he said, market share would more closely resemble that of 1,000- to 1,500-mile lanes, where rail penetration is higher because a single railroad handles the entire move. Other railroads have argued that handling that volume would require UP to operate as many as 15 additional trains per day, potentially congesting the network. UP said it would not degrade overall service. “This morning, we have over 2,000 movements, foreign railroads, and local trains running on our network,” Vena said on the earnings call. “If we add 10 or 15 more trains a day, it's a pretty small rounding error on the impact for the network.”  UP also addressed the STB’s objection to the railroad’s failure to disclose a document known as Schedule 5.6, which outlines conditions under which the company could walk away from the transaction.  “I don't like it because I don't think it adds to the merits, but guess what? I wish Jim Vena had a totalitarian system that I could get every decision that I want, but I don't even get it at home with my wife and kids, let alone with the regulator,” Vena said. <h3>Not banking on economic turnaround this year </h3>While there were few non-merger-related questions on Tuesday’s call, Union Pacific did offer a cautious economic outlook for 2026, acknowledging that pricing gains across its businesses will be difficult to achieve.  “S&amp;P Global's 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated,” said Jennifer Hanneman, UP’s chief financial officer. “In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in . Our commitment to yielding price dollars that exceed inflation dollars has not changed, but price may not be a driver of our improving margins in 2026.” S&amp;P Global is the parent company of the Journal of Commerce. UP said 2026 is likely to be challenging for international intermodal traffic, with port volumes expected to decline year over year through at least the first half. The railroad said it remains bullish on domestic intermodal, which set volume records in 2025, though it did not provide a specific forecast.  Union Pacific took market share from rival BNSF Railway in California during the second half of last year, according to data visibility platform RailState, while also winning freight from the truckload market. “We’ve had over-the-road wins with Uber Freight, over-the-road wins in Phoenix, wins in Kansas City,” Kenny Rocker, UP’s executive vice president of sales and marketing, said on the call. “So we're coming from a position of strength and we're excited about it.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a> </div>

Union Pacific Railroad said Tuesday it is moving quickly to address deficiencies that led federal regulators to deem its application to acquire Norfolk Southern Railway “incomplete,” and expects to refile an updated application within “weeks.”    Once UP resubmits its application, the regulatory process will restart with a fresh 30-day review period during which the US Surface Transportation Board (STB) will determine whether the new filing is complete. Interested parties may file comments during that period, and UP and NS can respond. “We are disappointed that the STB determined we needed to provide more information after providing close to 7,000 pages,” UP CEO Jim Vena said during the railroad’s fourth-quarter earnings call Tuesday. “Our response will take a few weeks to prepare and then we will refile our application as soon as possible.   “We view this as a short-term blip and do not expect a significant change to the timeline as we are still targeting closing in the first half of 2027,” he added.  Although UP did not provide a specific refiling date, Vena said the company would announce the timing in a subsequent public statement and that a revised application could be sent to the STB in March.  The  STB determined that UP failed to provide  sufficient information on future growth, citing inconsistencies in baseline assumptions across different sections of its application. Opponents of the $85 billion deal have also argued that Union Pacific’s projections, including removing 2 million truckloads from highways in large part through 1.17 million truckload-to-intermodal conversions within three years, are overly optimistic.  Vena said long-haul intermodal routes exceeding 2,000 miles historically have lower rail market share because shippers are reluctant to accept handoffs between railroads in hubs such as Chicago. Under a combined Union Pacific–Norfolk Southern network, he said, market share would more closely resemble that of 1,000- to 1,500-mile lanes, where rail penetration is higher because a single railroad handles the entire move.  Other railroads have argued that handling that volume would require UP to operate as many as 15 additional trains per day, potentially congesting the network. UP said it would not degrade overall service.  “This morning, we have over 2,000 movements, foreign railroads, and local trains running on our network,” Vena said on the earnings call. “If we add 10 or 15 more trains a day, it's a pretty small rounding error on the impact for the network.”   UP also addressed the STB’s objection to the railroad’s failure to disclose a document known as Schedule 5.6, which outlines conditions under which the company could walk away from the transaction.   “I don't like it because I don't think it adds to the merits, but guess what? I wish Jim Vena had a totalitarian system that I could get every decision that I want, but I don't even get it at home with my wife and kids, let alone with the regulator,” Vena said.  Not banking on economic turnaround this year  While there were few non-merger-related questions on Tuesday’s call, Union Pacific did offer a cautious economic outlook for 2026, acknowledging that pricing gains across its businesses will be difficult to achieve.   “S&P Global's 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated,” said Jennifer Hanneman, UP’s chief financial officer. “In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in . Our commitment to yielding price dollars that exceed inflation dollars has not changed, but price may not be a driver of our improving margins in 2026.”  S&P Global is the parent company of the Journal of Commerce.  UP said 2026 is likely to be challenging for international intermodal traffic, with port volumes expected to decline year over year through at least the first half. The railroad said it remains bullish on domestic intermodal, which set volume records in 2025, though it did not provide a specific forecast.   Union Pacific took market share from rival BNSF Railway in California during the second half of last year, according to data visibility platform RailState, while also winning freight from the truckload market. “We’ve had over-the-road wins with Uber Freight, over-the-road wins in Phoenix, wins in Kansas City,” Kenny Rocker, UP’s executive vice president of sales and marketing, said on the call. “So we're coming from a position of strength and we're excited about it.”  Contact Ari Ashe at  ari.ashe@spglobal.com  

Rail News

North-American rail

Revised Norfolk Southern merger application will be refiled in ‘weeks’: UP

<div class="phx-topic abstract-wrapper">“Lumpy” project cargo demand is expected to lead to overutilization of the global multipurpose vessel fleet, participants in a Journal of Commerce webinar were told.</div>

“Lumpy” project cargo demand is expected to lead to overutilization of the global multipurpose vessel fleet, participants in a Journal of Commerce webinar were told.

<div class="phx-topic">Strong and sustained volumes in the power business through 2027 and a promising outlook for mining will keep project cargo volumes buoyant, but only if shippers can maintain flexibility and secure tightening slots on multipurpose vessels, speakers participating in a Journal of Commerce webinar said. Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, said he had not seen a “hint of slowdown” coming into 2026. And Jonathan Cournoyer, global discipline director for logistics at management, engineering and development consultancy HATCH, added that the push for security of supply of critical and rare minerals has prompted many countries to develop their own mines, further supporting project cargo demand this year. “We’re lucky enough to have a lot of work in the pipeline,” Cournoyer said. “But we’re still a little bit worried about what could happen.” Pain points for the pair, both speakers on a Journal of Commerce breakbulk and project cargo 2026 outlook webcast on Jan. 22, include geopolitics, tariffs and near-static multipurpose and heavy-lift fleet supply. Recognizing that tariffs are “here to stay,” Cournoyer said HATCH accounts for tariffs in its evaluation of project costs. “For our US projects, this is very critical because a lot of the vendors located in the US that fabricate in the US actually become a lot more competitive than they would have if the tariffs were not there,” he said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fb97885d-0b88-4d65-99f6-10558c9e7c79"></dynamic-object></div>Odell also spoke about the practical issue of cargo readiness and making sure GE Power “can keep up with the vessels that we are putting on charter or have contracts with.” He said he manages the “ocean uncertainty” of tariffs by being flexible with vessels and route solutions and working closely with carriers. “It’s just making sure I have the best information at the time to help plan, but keeping that flexibility in there,” Odell said. Odell said he leans on contracts of affreightments to secure shipping slots and rates at least a year out, building them around GE Power’s highest-volume areas or highest-volume flows. “That way, when it comes time for the projects to start rolling, they know who the contacts are, they can build that relationship with the carrier and the provider, and they can work with them directly and get exactly what they need,” he said. <h3>‘Lumpy’ cargo demand muddies outlook </h3>Also on the webcast, Susan Oatway, senior research analyst for breakbulk and project cargo at S&amp;P Global Market Intelligence, said that the cargo demand picture was “lumpy.” With crude oil prices down to nearly $60 per barrel, she described that cargo-supplying sector as “decidedly patchy.” S&amp;P Global is the parent company of the Journal of Commerce.On the fleet outlook, Oatway said the focus is on heavy-lift capability because the growth in demand is “almost certainly going to be there.” She forecasts heavy-lift fleet growth of 4.1% per year for the next four years, with newbuilding orders “trickling in.” Taken together, MPV/heavy-lift fleet growth is expected to average just under 2% through 2029, according to a Journal of Commerce/S&amp;P Global forecast. “My worry is that there are too many factors that can destabilize that market,” she said. “Excess container capacity, reopening of the Red Sea, increased port congestion — all of those will have a destabilizing effect in a way that is quite difficult to predict. “And that’s even before we mention geopolitics and tariffs,” she added. Odell added that he has concerns that freight rates are going to increase due to overutilization because of what he called “a gold rush for power generation” in the US. “It’s always trying to keep ahead of that,” he said, referring to those with cargo from other sectors having to book early to secure the capacity they need. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>.</div>

Strong and sustained volumes in the power business through 2027 and a promising outlook for mining will keep project cargo volumes buoyant, but only if shippers can maintain flexibility and secure tightening slots on multipurpose vessels, speakers participating in a Journal of Commerce webinar said. Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, said he had not seen a “hint of slowdown” coming into 2026. And Jonathan Cournoyer, global discipline director for logistics at management, engineering and development consultancy HATCH, added that the push for security of supply of critical and rare minerals has prompted many countries to develop their own mines, further supporting project cargo demand this year. “We’re lucky enough to have a lot of work in the pipeline,” Cournoyer said. “But we’re still a little bit worried about what could happen.” Pain points for the pair, both speakers on a Journal of Commerce breakbulk and project cargo 2026 outlook webcast on Jan. 22, include geopolitics, tariffs and near-static multipurpose and heavy-lift fleet supply. Recognizing that tariffs are “here to stay,” Cournoyer said HATCH accounts for tariffs in its evaluation of project costs. “For our US projects, this is very critical because a lot of the vendors located in the US that fabricate in the US actually become a lot more competitive than they would have if the tariffs were not there,” he said. Odell also spoke about the practical issue of cargo readiness and making sure GE Power “can keep up with the vessels that we are putting on charter or have contracts with.” He said he manages the “ocean uncertainty” of tariffs by being flexible with vessels and route solutions and working closely with carriers. “It’s just making sure I have the best information at the time to help plan, but keeping that flexibility in there,” Odell said. Odell said he leans on contracts of affreightments to secure shipping slots and rates at least a year out, building them around GE Power’s highest-volume areas or highest-volume flows. “That way, when it comes time for the projects to start rolling, they know who the contacts are, they can build that relationship with the carrier and the provider, and they can work with them directly and get exactly what they need,” he said. ‘Lumpy’ cargo demand muddies outlook Also on the webcast, Susan Oatway, senior research analyst for breakbulk and project cargo at S&P Global Market Intelligence, said that the cargo demand picture was “lumpy.” With crude oil prices down to nearly $60 per barrel, she described that cargo-supplying sector as “decidedly patchy.” S&P Global is the parent company of the Journal of Commerce. On the fleet outlook, Oatway said the focus is on heavy-lift capability because the growth in demand is “almost certainly going to be there.” She forecasts heavy-lift fleet growth of 4.1% per year for the next four years, with newbuilding orders “trickling in.” Taken together, MPV/heavy-lift fleet growth is expected to average just under 2% through 2029, according to a Journal of Commerce/S&P Global forecast. “My worry is that there are too many factors that can destabilize that market,” she said. “Excess container capacity, reopening of the Red Sea, increased port congestion — all of those will have a destabilizing effect in a way that is quite difficult to predict. “And that’s even before we mention geopolitics and tariffs,” she added. Odell added that he has concerns that freight rates are going to increase due to overutilization because of what he called “a gold rush for power generation” in the US. “It’s always trying to keep ahead of that,” he said, referring to those with cargo from other sectors having to book early to secure the capacity they need. Contact Carly Fields at carly.fields@spglobal.com .

Energy projects

Project cargo

Breakbulk News

Power, mining bullishness offset by tightening MPV ship supply

<div class="phx-topic abstract-wrapper">Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. </div>

Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia.

<div class="phx-topic">Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at <a href="keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at keithwallis@hotmail.com .

Wan Hai expands Asia terminal network with $89 million Osaka port lease

<div class="phx-topic abstract-wrapper">Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.</div>

Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.

<div class="phx-topic">Echo Global Logistics’ <a href="https://www.joc.com/article/broker-echo-buys-its-logistics-to-build-drayage-intermodal-presence-6155888">acquisition of ITS Logistics</a> cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. <h3>ITS ‘fills a gap’ </h3>The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Echo Global Logistics’ acquisition of ITS Logistics cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. ITS ‘fills a gap’ The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at eric.johnson@spglobal.com .

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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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