<div class="phx-topic abstract-wrapper">The Port of Virginia has deployed three hybrid shuttle carriers — the first of their kind in the U.S. — at its Virginia International Gateway terminal.</div>

The Port of Virginia has deployed three hybrid shuttle carriers — the first of their kind in the U.S. — at its Virginia International Gateway terminal.

<div>The Port of Virginia has deployed three hybrid shuttle carriers — the first of their kind in the U.S. — at its Virginia International Gateway terminal.The shuttle carriers’ engines are the cleanest-running diesel engines available in the industry, according to Finland-based manufacturer Kalmar Industries. The newer, greener equipment has been in action at VIG, the port’s newest and most technologically advanced terminal, since last week.The <a>Virginia Port Authority</a> ordered the Kalmar equipment late last year with the help of a $750,000 grant from the U.S. Environmental Protection Agency.“The port is an economic engine,” John Reinhart, Virginia Port Authority CEO and...

The Port of Virginia has deployed three hybrid shuttle carriers — the first of their kind in the U.S. — at its Virginia International Gateway terminal. The shuttle carriers’ engines are the cleanest-running diesel engines available in the industry, according to Finland-based manufacturer Kalmar Industries. The newer, greener equipment has been in action at VIG, the port’s newest and most technologically advanced terminal, since last week. The Virginia Port Authority ordered the Kalmar equipment late last year with the help of a $750,000 grant from the U.S. Environmental Protection Agency. “The port is an economic engine,” John Reinhart, Virginia Port Authority CEO and executive director, said in a statement shortly following the EPA announcement in April 2014. “As part of that we have a responsibility to do business in an environmentally sound fashion, where and when possible. “This is an opportunity to act upon that,” he said. Since the announcement, the state port authority has phased out and replaced three of its aging diesel-powered straddle carriers with new hybrid diesel-electric shuttle carriers at the former APM Terminals facility in Portsmouth, Virginia. The port has said it plans to recycle and scrap its retired diesel carriers. “Green technology, efficiency and accuracy of operations, and employee safety are important factors for us at VIG,” port authority spokesman Joe Harris said in a statement. The carriers are the latest addition to the port’s Green Operator, or GO, program, a voluntary truck replacement and vessel-fuel switching program launched in 2009. Contact Reynolds Hutchins at reynolds.hutchins@ihs.com and follow him on Twitter: @Hutchins_JOC .

North American ports

Virginia port deploys hybrid shuttle carriers

<div class="phx-topic abstract-wrapper">Suspension of the Pacific South 5 service comes as container lines are announcing more blanked sailings from Asia to the US in an attempt to boost spot rates ahead of China’s Golden Week.</div>

Suspension of the Pacific South 5 service comes as container lines are announcing more blanked sailings from Asia to the US in an attempt to boost spot rates ahead of China’s Golden Week.

Feature image

<div class="phx-topic">The Premier Alliance said Friday it is suspending its express Pacific South 5 service between eastern China and the US West Coast after only four months amid a drop in demand on the eastbound trans-Pacific. The move is the latest sign that bookings before an annual holiday slowdown in Chinese production are weaker than usual, presenting a challenge to carriers trying to stem a container spot rate bleed. Alliance members Ocean Network Express (ONE), HMM and Yang Ming gave no reason for the change in separate customer advisories, but it is possible the fall in trans-Pacific volumes amid US tariff uncertainty did not justify an express loop. The service provided a transit time of 14 days from Ningbo to Long Beach and 17 days from Qingdao to Long Beach. Instead, the Premier Alliance carriers announced additional port calls on four other trans-Pacific services. These comprise Ningbo on its PS4 service, Qingdao on the PS6 service, Pusan on the Far East Pacific North 2 and Norfolk on the US East Coast 2 services. The PS5 service was launched in June, but the carriers said the last sailing was by the 4,888 TEU NYK Constellation that left Qingdao Sept. 1 and was due to arrive at Ningbo Friday. The suspension comes as container lines are announcing more blanked sailings from Asia to the US as they attempt to boost spot rates ahead of China’s Golden Week, which begins Oct. 1. Carriers are blanking at least five sailings this week compared to two last week and two in the week before, sources confirmed. “Blank sailing activity to the East Coast is moderate now,” James Caradonna, executive vice president of the forwarder Spedag America, told the Journal of Commerce. Several sources said they expect blanking to pick up further as Golden Week approaches. <h3>Carriers try to recoup losses </h3>The next four weeks offer container lines what is likely their last shot this year to claw back at least some of the recent decline in rates. Starting Oct. 1, Chinese factories will close for eight days for Golden Week. The industry is split on whether there is any boost in cargo on the way, with forwarders seeing little signs of late-year traffic gains and a few carriers saying they are hopeful. One carrier executive said retailers should be incentivized to ship what they can this month before the Golden Week holiday. During the second half of August, bookings for Chinese shipments into the US were down nearly 33% from the same time last year, according to data from maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. Even as carriers take more functional capacity out of the market through blank sailings, there is still plenty of slot availability, according to multiple forwarder notices seen by the Journal of Commerce. In September, carriers are blanking almost 15% of capacity into the East and Gulf coasts, according to maritime intelligence provider eeSea. Container spot rates to both coasts have been climbing since Aug. 22, according to various indices, with the Shanghai Shipping Exchange measuring a 33.1% increase on US West Coast routing, to $2,189 per FEU over the past two weeks. Bullet rates quoted for single voyages tend to be $200-$300 less than index rates, and some forwarder quotes for US West Coast routings have been as low as $1,600 per FEU. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="da1b20b1-3e87-4d61-b13f-10e2633dce91"></dynamic-object></div>Several forwarders said they are already seeing some reductions to the latest general rate increase (GRI) implemented Sept. 1. ”We’ve got notifications from carriers already starting to pull the rate down — only like $100 to $200,” said a freight forwarder. “It’s not a huge drop, but we’re only four days in, [and] already seeing some rate reductions.” “Given the lack of volume surge prior to Golden Week, these rate increases are unlikely to stick in full and, at best, will allow the carriers to maintain rate levels,” Sanjay Tejwani, CEO of consulting firm 365 Logistics, told the Journal of Commerce. “This behavior will continue as we get into [the fourth quarter] when the volume decline will be more pronounced [than the third quarter.]” September bookings so far are lower than last year, said Robert Khachatryan, CEO of the forwarder FreightRight Global Logistics. “It doesn’t look good to me. If there is any tightness, it is probably going to be because of the blank sailings,” he said. Overall, another forwarder said, most shippers are not in a hurry to book their shipments, especially with the rate increases. ”The shipper has the power in that sense,” the source said. “At some point they’re [going to realize they] don’t have any inventory. But in the meantime, nobody’s in a hurry.” The US head at a major carrier confirmed blank announcements are encouraging some bookings but noted “bookings are much slower than usual” during the lead-up to Golden Week. <h3>Plentiful capacity </h3>Some container lines are optimistic that demand will rise ahead of Golden Week and that demand for the rest of the year may be stronger than expected. With US inventories low, there is room for restocking even with tariffs, while US durable goods consumption continues to expand, carriers note. “I think what we’re hearing from customers is yes, they frontloaded their volumes, but US consumer demand has probably also exceeded expectations,” Michael Britton, head of North American markets for ocean products at Maersk, told the Journal of Commerce. But Britton acknowledged it was likely that Maersk would have to blank some sailings ahead of Golden Week and could trim services such as the TP9 launched in June if demand weakens more than anticipated. ”[Rates are elevated] because of pre-Golden Week push,” said another carrier source. “We also have had some blanks, so some cargo is being rolled, and our [utilization] is closer to 90%, so it will keep the spot rate at the higher level.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="f0d3021d-c84d-4556-9f93-72c0f6230a17"></dynamic-object></div>The source said their elevated utilization had helped support rates, which is why they have not lowered their rates like some other carriers. ”If [utilization] gets to 50% or 60%, then we will start seeing drops,” the source said. “Maybe by the end of the month.” Carriers are already announcing blank sailings for October, which will further constrict capacity. “There will be heavy blanks through mid-October,” the first carrier executive said. “In the final week of October, they’ll be reinstated.” Forwarders say that although most of the alliance carriers this week are attempting to stand firm on the Sept. 1 GRIs, space is plentiful and importers have access to special rates that could begin to erode the posted rates by mid-month. “There is no problem getting space — across the board. Carriers are in a bit of a pickle,” said Jon Monroe, who serves as an advisor to non-vessel-operating common carriers. Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. Special Correspondent Keith Wallis contributed to this report. </div>

The Premier Alliance said Friday it is suspending its express Pacific South 5 service between eastern China and the US West Coast after only four months amid a drop in demand on the eastbound trans-Pacific. The move is the latest sign that bookings before an annual holiday slowdown in Chinese production are weaker than usual, presenting a challenge to carriers trying to stem a container spot rate bleed. Alliance members Ocean Network Express (ONE), HMM and Yang Ming gave no reason for the change in separate customer advisories, but it is possible the fall in trans-Pacific volumes amid US tariff uncertainty did not justify an express loop. The service provided a transit time of 14 days from Ningbo to Long Beach and 17 days from Qingdao to Long Beach. Instead, the Premier Alliance carriers announced additional port calls on four other trans-Pacific services. These comprise Ningbo on its PS4 service, Qingdao on the PS6 service, Pusan on the Far East Pacific North 2 and Norfolk on the US East Coast 2 services. The PS5 service was launched in June, but the carriers said the last sailing was by the 4,888 TEU NYK Constellation that left Qingdao Sept. 1 and was due to arrive at Ningbo Friday. The suspension comes as container lines are announcing more blanked sailings from Asia to the US as they attempt to boost spot rates ahead of China’s Golden Week, which begins Oct. 1. Carriers are blanking at least five sailings this week compared to two last week and two in the week before, sources confirmed. “Blank sailing activity to the East Coast is moderate now,” James Caradonna, executive vice president of the forwarder Spedag America, told the Journal of Commerce. Several sources said they expect blanking to pick up further as Golden Week approaches. Carriers try to recoup losses The next four weeks offer container lines what is likely their last shot this year to claw back at least some of the recent decline in rates. Starting Oct. 1, Chinese factories will close for eight days for Golden Week. The industry is split on whether there is any boost in cargo on the way, with forwarders seeing little signs of late-year traffic gains and a few carriers saying they are hopeful. One carrier executive said retailers should be incentivized to ship what they can this month before the Golden Week holiday. During the second half of August, bookings for Chinese shipments into the US were down nearly 33% from the same time last year, according to data from maritime visibility provider Vizion and data and analytics company Dun & Bradstreet. Even as carriers take more functional capacity out of the market through blank sailings, there is still plenty of slot availability, according to multiple forwarder notices seen by the Journal of Commerce. In September, carriers are blanking almost 15% of capacity into the East and Gulf coasts, according to maritime intelligence provider eeSea. Container spot rates to both coasts have been climbing since Aug. 22, according to various indices, with the Shanghai Shipping Exchange measuring a 33.1% increase on US West Coast routing, to $2,189 per FEU over the past two weeks. Bullet rates quoted for single voyages tend to be $200-$300 less than index rates, and some forwarder quotes for US West Coast routings have been as low as $1,600 per FEU. Several forwarders said they are already seeing some reductions to the latest general rate increase (GRI) implemented Sept. 1. ”We’ve got notifications from carriers already starting to pull the rate down — only like $100 to $200,” said a freight forwarder. “It’s not a huge drop, but we’re only four days in, [and] already seeing some rate reductions.” “Given the lack of volume surge prior to Golden Week, these rate increases are unlikely to stick in full and, at best, will allow the carriers to maintain rate levels,” Sanjay Tejwani, CEO of consulting firm 365 Logistics, told the Journal of Commerce. “This behavior will continue as we get into [the fourth quarter] when the volume decline will be more pronounced [than the third quarter.]” September bookings so far are lower than last year, said Robert Khachatryan, CEO of the forwarder FreightRight Global Logistics. “It doesn’t look good to me. If there is any tightness, it is probably going to be because of the blank sailings,” he said. Overall, another forwarder said, most shippers are not in a hurry to book their shipments, especially with the rate increases. ”The shipper has the power in that sense,” the source said. “At some point they’re [going to realize they] don’t have any inventory. But in the meantime, nobody’s in a hurry.” The US head at a major carrier confirmed blank announcements are encouraging some bookings but noted “bookings are much slower than usual” during the lead-up to Golden Week. Plentiful capacity Some container lines are optimistic that demand will rise ahead of Golden Week and that demand for the rest of the year may be stronger than expected. With US inventories low, there is room for restocking even with tariffs, while US durable goods consumption continues to expand, carriers note. “I think what we’re hearing from customers is yes, they frontloaded their volumes, but US consumer demand has probably also exceeded expectations,” Michael Britton, head of North American markets for ocean products at Maersk, told the Journal of Commerce. But Britton acknowledged it was likely that Maersk would have to blank some sailings ahead of Golden Week and could trim services such as the TP9 launched in June if demand weakens more than anticipated. ”[Rates are elevated] because of pre-Golden Week push,” said another carrier source. “We also have had some blanks, so some cargo is being rolled, and our [utilization] is closer to 90%, so it will keep the spot rate at the higher level.” The source said their elevated utilization had helped support rates, which is why they have not lowered their rates like some other carriers. ”If [utilization] gets to 50% or 60%, then we will start seeing drops,” the source said. “Maybe by the end of the month.” Carriers are already announcing blank sailings for October, which will further constrict capacity. “There will be heavy blanks through mid-October,” the first carrier executive said. “In the final week of October, they’ll be reinstated.” Forwarders say that although most of the alliance carriers this week are attempting to stand firm on the Sept. 1 GRIs, space is plentiful and importers have access to special rates that could begin to erode the posted rates by mid-month. “There is no problem getting space — across the board. Carriers are in a bit of a pickle,” said Jon Monroe, who serves as an advisor to non-vessel-operating common carriers. Contact Laura Robb at laura.robb@spglobal.com . Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com . Special Correspondent Keith Wallis contributed to this report.

Maritime

Container lines

Forwarding

Trans-Pacific

Container Shipping News

Premier Alliance service halt latest sign of trans-Pacific demand downturn

<div class="phx-topic abstract-wrapper">Augment and Happy Robot are the most recent examples of investors betting that artificial intelligence agents will transform the operations of logistics providers.</div>

Augment and Happy Robot are the most recent examples of investors betting that artificial intelligence agents will transform the operations of logistics providers.

<div class="phx-topic">A pair of venture capital investments totaling more than $100 million into startups providing artificial intelligence-based products for logistics providers is the latest example of AI sweeping into the domestic freight landscape. Workflow automation provider Augment on Thursday landed an $85 million funding round a day after fellow vendor Happy Robot snared a $44 million investment. Taken together, the $129 million represents a huge bet by investors that AI will be used by companies in the freight and logistics industry to improve productivity. Augment said the funding will be used primarily to hire more engineers to expand its ability to build AI agents, specifically targeting multimodal operations for brokers, shippers and carriers. The funds will also be used for sales and back-office automation, including pricing support and customer insights, and integrations with transportation management system (TMS) platforms and load boards. “Logistics runs on millions of decisions — under pressure, across fragmented systems and with too many tabs open,” Augment CEO Harish Abbott said in a statement. Abbott co-founded Augment in 2024 after selling his previous venture, fulfillment technology provider Deliverr, to Shopify for $2.1 billion in 2022. Deliverr was later acquired by forwarder Flexport. Augment has raised $110 million in all. The Happy Robot investment will go toward growing the company’s AI agent tools for freight brokers in areas such as appointment schedules, sales support and collections. “Our goal is for an AI workforce to handle all that manual coordination and execution so people can focus on the strategic work, relationships and exceptions that really drive value,” CEO Pablo Palafox said in a statement. DHL, Ryder and Werner are among Happy Robot’s more than 70 enterprise supply chain customers, the company said. <h3>AI vendors targeting logistics sector </h3>Augment and Happy Robot are just two of a growing cohort of AI-first software vendors targeting the logistics industry. Some are focused on single niches, such as appointment scheduling, invoice auditing or customs entry creation. Others are targeting workflow automation across a number of processes and systems. In addition, incumbent logistics technology providers with established customer bases are layering AI tools on top of their existing products. Those approaches generally center around providing assistant agents that better utilize the system or background AI tools that connect data sets. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

A pair of venture capital investments totaling more than $100 million into startups providing artificial intelligence-based products for logistics providers is the latest example of AI sweeping into the domestic freight landscape. Workflow automation provider Augment on Thursday landed an $85 million funding round a day after fellow vendor Happy Robot snared a $44 million investment. Taken together, the $129 million represents a huge bet by investors that AI will be used by companies in the freight and logistics industry to improve productivity. Augment said the funding will be used primarily to hire more engineers to expand its ability to build AI agents, specifically targeting multimodal operations for brokers, shippers and carriers. The funds will also be used for sales and back-office automation, including pricing support and customer insights, and integrations with transportation management system (TMS) platforms and load boards. “Logistics runs on millions of decisions — under pressure, across fragmented systems and with too many tabs open,” Augment CEO Harish Abbott said in a statement. Abbott co-founded Augment in 2024 after selling his previous venture, fulfillment technology provider Deliverr, to Shopify for $2.1 billion in 2022. Deliverr was later acquired by forwarder Flexport. Augment has raised $110 million in all. The Happy Robot investment will go toward growing the company’s AI agent tools for freight brokers in areas such as appointment schedules, sales support and collections. “Our goal is for an AI workforce to handle all that manual coordination and execution so people can focus on the strategic work, relationships and exceptions that really drive value,” CEO Pablo Palafox said in a statement. DHL, Ryder and Werner are among Happy Robot’s more than 70 enterprise supply chain customers, the company said. AI vendors targeting logistics sector Augment and Happy Robot are just two of a growing cohort of AI-first software vendors targeting the logistics industry. Some are focused on single niches, such as appointment scheduling, invoice auditing or customs entry creation. Others are targeting workflow automation across a number of processes and systems. In addition, incumbent logistics technology providers with established customer bases are layering AI tools on top of their existing products. Those approaches generally center around providing assistant agents that better utilize the system or background AI tools that connect data sets. Contact Eric Johnson at eric.johnson@spglobal.com .

Truck brokers

Logistics Technology News

Startups land collective $129 million in latest AI push into logistics

<div class="phx-topic abstract-wrapper">Artificial intelligence will accelerate the new reality that ocean carriers make no secret of the fact that they are profit-making entities, writes Peter Tirschwell. </div>

Artificial intelligence will accelerate the new reality that ocean carriers make no secret of the fact that they are profit-making entities, writes Peter Tirschwell.

<div class="phx-topic">Anyone even remotely plugged into the news would understand at some level that artificial intelligence (AI) is poised to unleash massive economic change. The idea that container shipping and supply chains will somehow be unaffected is fanciful. Evidence of the huge potential impact is everywhere. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6076149_0.1.jpg"></img></div>The CEO of Amazon said in June the company will need fewer employees in the future — certainly without any curtailment of revenue growth — while a month later, the CEO of Ford said AI will replace “literally half of all white-collar workers.” The stock price of the tech research firm Gartner collapsed 30% on Aug. 5, its worst single-day loss in 26 years, after earnings weakness pointed to the vulnerability of its business model to AI. The share price of the advertising firm WPP was down nearly 50% this year as of Sept. 4 on fears creative services will be displaced by AI. How many coders will be needed if the work can be done by AI at a fraction of the time and cost? The impact on container shipping could be similarly profound, but not in obvious ways. Of course, there will be an impact from human processes being automated with AI. That is a given. Carriers and forwarders know they can’t miss any opportunity for cost savings, not just to eke out profits, but to avoid going to market with a higher cost structure than their competitors. This is nothing new. AI will be just the latest technology leveraged in the pursuit of cost competitiveness. No, the impact could be much greater. <h3>Ocean carriers increasingly resembling railroads </h3>The late E. Hunter Harrison, CEO of Class I railroads Canadian National, Canadian Pacific and CSX, was famously beloved by investors and loathed by customers. Running his railroads to maximize profit meant customers, specifically those captive to railroads, were inconvenienced and deprioritized in ways large and small. Precision schedule railroading, a concept he created that has been widely implemented, meant trains left on time with no exceptions, even for preferred customers. Ocean carriers increasingly resemble railroads. Beneficial cargo owners are beholden to container shipping; only for a few and only in certain situations is air cargo a viable alternative. And with waves of consolidation over decades, top carriers control more of the market than they ever did. <a href="https://www.bing.com/search?qs=HS&amp;pq=alpha&amp;sk=CSYN1UAS6LS12LC1FT1HS1&amp;sc=25-5&amp;q=alphaliner+top+100&amp;cvid=bd5ac56424d944a8a3efbd6a49051f7a&amp;gs_lcrp=EgRlZGdlKgYIARAAGEAyCQgAEEUYOxj5BzIGCAEQABhAMgYIAhAuGEAyBggDEAAYQDIGCAQQABhAMgYIBRAAGEAyBggGEAAYQDIGCAcQABhAMgYICBAAGEAyCAgJEOkHGPIHMggIChDpBxj8VdIBCDIwNDRqMGoxqAIIsAIB&amp;FORM=ANAB01&amp;PC=U531">The top 10 now control</a> over 84% of total tonnage, according to Alphaliner. Although carriers freely compete, the COVID-19 pandemic changed their psychology. This is relevant in light of AI. Consider the evolution. In an earlier day, with more carriers and an ethos of serving customers, carriers used to run their networks for schedule reliability. This was standard during many decades of the conference system, when conference lines spent lavishly on fuel to ensure on-time arrivals regardless of whether freight rate levels would yield adequate returns. This is no longer the case. Devotion to reliability was punctured during the 2008–09 financial crisis when carriers began slow steaming at scale to balance supply and demand. It was further eroded in the years prior to the COVID-19 pandemic as blank sailings became standard practice within alliances. The pandemic and the disruptions that followed sealed the deal. Carriers realized that profits result not from ships being on time with ships and cargo circulating fluidly. Rather, profits result from the system being disrupted and capacity removed due to port congestion, idled ships and elongated transits, like those around southern Africa to avoid the Red Sea. On that basis, carriers earned unimaginable profits of over $400 billion from 2020 to 2023, according to analyst John McCown. That was more profit than the industry earned during the entire period between the first container ship sailing in 1956 and 2020, according to Sea-Intelligence. <h3>AI to the rescue? </h3>If JPMorgan is right in <a href="https://www.joc.com/article/rocky-stretch-ahead-for-shippers-carriers-in-2026-and-beyond-6069904">recently forecasting</a> “deep losses” due to “material oversupply,” carriers are staring at a bleak outlook over the next few years. Could this be where AI comes to the rescue? Its timing couldn’t be better. The following scenario is far from implausible. A carrier’s complete data repository is fed into a trained AI model on a continuous basis: all vessels, all locations, all speeds, all fuel consumption, all containers and their locations, all customers, all contracts, all spot rates, all port times and all financials. A simple request is made: Run the network to maximize profit. Do as Hunter Harrison would have done. Determine at what speeds ships operate, the ports they do and don’t call, and which trade lanes they slot in and out of. Also determine which customers get containers and when, and which ones must wait, and what rates get extended to whom, when and on what terms. The system learns and improves. Google says its <a href="https://research.google/blog/heuristics-on-the-high-seas-mathematical-optimization-for-cargo-ships/#:~:text=Google%27s%20Operations%20Research%20team%20is%20proud%20to%20announce,while%20being%20faster%20than%20any%20known%20previous%20attempts.">Shipping Network Design API</a>, announced last year, is able to double the profit of a container line, deliver 13% more containers and do so with 15% fewer vessels. In April, CMA CGM announced a €100 million investment in a partnership with Mistral AI that CMA CGM Chairman Rodolphe Saade called a “transformation of CMA CGM through artificial intelligence.” In a famously relationship-based industry, subjecting key decisions to AI direction is obviously radical. Carriers may hesitate to subjugate customer relationships to AI decision-making if competitors are keeping the phone lines and bar tabs open. They may defer to their conservative instincts, just as they do regarding other proposed radical solutions to underperformance, such as trading freight rate futures. But times have changed. Carriers are no longer unclear that they are profit-making entities entitled to act in their own interests. Transportation profits come from control over the network, limited competition, capacity management and captive customers. That is what is developing in containers, and at the end of the day, AI will only accelerate it. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com.</a></div>

Anyone even remotely plugged into the news would understand at some level that artificial intelligence (AI) is poised to unleash massive economic change. The idea that container shipping and supply chains will somehow be unaffected is fanciful. Evidence of the huge potential impact is everywhere. The CEO of Amazon said in June the company will need fewer employees in the future — certainly without any curtailment of revenue growth — while a month later, the CEO of Ford said AI will replace “literally half of all white-collar workers.” The stock price of the tech research firm Gartner collapsed 30% on Aug. 5, its worst single-day loss in 26 years, after earnings weakness pointed to the vulnerability of its business model to AI. The share price of the advertising firm WPP was down nearly 50% this year as of Sept. 4 on fears creative services will be displaced by AI. How many coders will be needed if the work can be done by AI at a fraction of the time and cost? The impact on container shipping could be similarly profound, but not in obvious ways. Of course, there will be an impact from human processes being automated with AI. That is a given. Carriers and forwarders know they can’t miss any opportunity for cost savings, not just to eke out profits, but to avoid going to market with a higher cost structure than their competitors. This is nothing new. AI will be just the latest technology leveraged in the pursuit of cost competitiveness. No, the impact could be much greater. Ocean carriers increasingly resembling railroads The late E. Hunter Harrison, CEO of Class I railroads Canadian National, Canadian Pacific and CSX, was famously beloved by investors and loathed by customers. Running his railroads to maximize profit meant customers, specifically those captive to railroads, were inconvenienced and deprioritized in ways large and small. Precision schedule railroading, a concept he created that has been widely implemented, meant trains left on time with no exceptions, even for preferred customers. Ocean carriers increasingly resemble railroads. Beneficial cargo owners are beholden to container shipping; only for a few and only in certain situations is air cargo a viable alternative. And with waves of consolidation over decades, top carriers control more of the market than they ever did. The top 10 now control over 84% of total tonnage, according to Alphaliner. Although carriers freely compete, the COVID-19 pandemic changed their psychology. This is relevant in light of AI. Consider the evolution. In an earlier day, with more carriers and an ethos of serving customers, carriers used to run their networks for schedule reliability. This was standard during many decades of the conference system, when conference lines spent lavishly on fuel to ensure on-time arrivals regardless of whether freight rate levels would yield adequate returns. This is no longer the case. Devotion to reliability was punctured during the 2008–09 financial crisis when carriers began slow steaming at scale to balance supply and demand. It was further eroded in the years prior to the COVID-19 pandemic as blank sailings became standard practice within alliances. The pandemic and the disruptions that followed sealed the deal. Carriers realized that profits result not from ships being on time with ships and cargo circulating fluidly. Rather, profits result from the system being disrupted and capacity removed due to port congestion, idled ships and elongated transits, like those around southern Africa to avoid the Red Sea. On that basis, carriers earned unimaginable profits of over $400 billion from 2020 to 2023, according to analyst John McCown. That was more profit than the industry earned during the entire period between the first container ship sailing in 1956 and 2020, according to Sea-Intelligence. AI to the rescue? If JPMorgan is right in recently forecasting “deep losses” due to “material oversupply,” carriers are staring at a bleak outlook over the next few years. Could this be where AI comes to the rescue? Its timing couldn’t be better. The following scenario is far from implausible. A carrier’s complete data repository is fed into a trained AI model on a continuous basis: all vessels, all locations, all speeds, all fuel consumption, all containers and their locations, all customers, all contracts, all spot rates, all port times and all financials. A simple request is made: Run the network to maximize profit. Do as Hunter Harrison would have done. Determine at what speeds ships operate, the ports they do and don’t call, and which trade lanes they slot in and out of. Also determine which customers get containers and when, and which ones must wait, and what rates get extended to whom, when and on what terms. The system learns and improves. Google says its Shipping Network Design API , announced last year, is able to double the profit of a container line, deliver 13% more containers and do so with 15% fewer vessels. In April, CMA CGM announced a €100 million investment in a partnership with Mistral AI that CMA CGM Chairman Rodolphe Saade called a “transformation of CMA CGM through artificial intelligence.” In a famously relationship-based industry, subjecting key decisions to AI direction is obviously radical. Carriers may hesitate to subjugate customer relationships to AI decision-making if competitors are keeping the phone lines and bar tabs open. They may defer to their conservative instincts, just as they do regarding other proposed radical solutions to underperformance, such as trading freight rate futures. But times have changed. Carriers are no longer unclear that they are profit-making entities entitled to act in their own interests. Transportation profits come from control over the network, limited competition, capacity management and captive customers. That is what is developing in containers, and at the end of the day, AI will only accelerate it. Contact Peter Tirschwell at peter.tirschwell@spglobal.com.

Supply chain

Disruptive force of AI will help usher in new era of container shipping

<div class="phx-topic abstract-wrapper">Consequences for nations supporting the emissions-cutting measures were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals.</div>

Consequences for nations supporting the emissions-cutting measures were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals.

<div class="phx-topic">Liberia, Panama and other small nations that control much of the world’s shipping tonnage will likely be in the crosshairs of the Trump administration as the US steps up efforts to derail the International Maritime Organization’s (IMO) “net-zero” emissions framework that is up for adoption next month. That is according to a global shipping source who did not want to be identified, citing serious consequences facing those speaking out against the US position. Those consequences were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals on IMO member states supporting the net-zero framework, <a href="https://www.reuters.com/legal/litigation/us-tells-countries-reject-un-ship-fuel-emissions-deal-or-face-tariffs-sources-2025-09-03/">according to a report from Reuters</a>. The flag states of Liberia, Panama and the Marshall Islands are home to almost half of the world’s gross tonnage, and that could play a crucial role during the meeting in October of the IMO’s Marine Environment Protection Committee (MEPC), the shipping source said. The proposed net-zero framework, agreed in principle by a majority of IMO member states at MEPC’s meeting in April, will be up for formal adoption at the IMO session scheduled Oct. 14-17 in London. While much has been made about the need for a two-thirds majority vote in favor of the framework for it to pass, the source said the outcome will be decided by member states controlling the bulk of global tonnage. ”It is a yes or no vote and two-thirds must vote yes for adoption, and if the states voting yes constitute 50% or more of the world’s tonnage, then it’s a done deal,” the source told the Journal of Commerce. “Marshall Islands, Liberia and Panama constitute more than 45% of the global tonnage and with China it is more than 50%, but it’s probably more possible that smaller states will bow to the US pressure than a big state,” the source added. “It’s not about the big economies. It’s about some very small states that have most of the fleet, and this new US bully policy is certainly a huge vulnerability within the whole system at the IMO.” <h3>US escalates opposition </h3>The greenhouse gas emissions-cutting proposal is regarded as crucial in enabling global shipping to reach climate neutrality around 2050 by introducing fuel standards and levies on ships that fail to meet strict targets. But the IMO measure has faced <a href="https://www.joc.com/article/us-rejection-of-imo-net-zero-framework-wont-change-outcome-bimco-6062545">escalating pushback from Washington</a>, with the US delegation <a href="https://www.joc.com/article/us-pulls-out-of-imo-climate-talks-threatens-retaliation-for-emissions-fees-5980359">walking out of the MEPC meeting in April</a> in protest over the decarbonization talks. And in August, US Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy said in a joint statement that President Donald Trump would not accept “any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.” Asked to respond to the latest US attempt to stop the net-zero proposal, the IMO said the October meeting was the appropriate platform to address any concerns from member states. “The IMO Net-Zero Framework was approved in April 2025 and represents a collective commitment by member states to deliver on shared goals outlined in the revised IMO strategy on the reduction of GHG emissions that was adopted in 2023,” a spokesperson told the Journal of Commerce. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Liberia, Panama and other small nations that control much of the world’s shipping tonnage will likely be in the crosshairs of the Trump administration as the US steps up efforts to derail the International Maritime Organization’s (IMO) “net-zero” emissions framework that is up for adoption next month. That is according to a global shipping source who did not want to be identified, citing serious consequences facing those speaking out against the US position. Those consequences were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals on IMO member states supporting the net-zero framework, according to a report from Reuters . The flag states of Liberia, Panama and the Marshall Islands are home to almost half of the world’s gross tonnage, and that could play a crucial role during the meeting in October of the IMO’s Marine Environment Protection Committee (MEPC), the shipping source said. The proposed net-zero framework, agreed in principle by a majority of IMO member states at MEPC’s meeting in April, will be up for formal adoption at the IMO session scheduled Oct. 14-17 in London. While much has been made about the need for a two-thirds majority vote in favor of the framework for it to pass, the source said the outcome will be decided by member states controlling the bulk of global tonnage. ”It is a yes or no vote and two-thirds must vote yes for adoption, and if the states voting yes constitute 50% or more of the world’s tonnage, then it’s a done deal,” the source told the Journal of Commerce. “Marshall Islands, Liberia and Panama constitute more than 45% of the global tonnage and with China it is more than 50%, but it’s probably more possible that smaller states will bow to the US pressure than a big state,” the source added. “It’s not about the big economies. It’s about some very small states that have most of the fleet, and this new US bully policy is certainly a huge vulnerability within the whole system at the IMO.” US escalates opposition The greenhouse gas emissions-cutting proposal is regarded as crucial in enabling global shipping to reach climate neutrality around 2050 by introducing fuel standards and levies on ships that fail to meet strict targets. But the IMO measure has faced escalating pushback from Washington , with the US delegation walking out of the MEPC meeting in April in protest over the decarbonization talks. And in August, US Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy said in a joint statement that President Donald Trump would not accept “any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.” Asked to respond to the latest US attempt to stop the net-zero proposal, the IMO said the October meeting was the appropriate platform to address any concerns from member states. “The IMO Net-Zero Framework was approved in April 2025 and represents a collective commitment by member states to deliver on shared goals outlined in the revised IMO strategy on the reduction of GHG emissions that was adopted in 2023,” a spokesperson told the Journal of Commerce. Contact Greg Knowler at greg.knowler@spglobal.com .

Transport, Trade and Regulation News

US steps up attempts to derail IMO’s ‘net-zero’ ambitions

<div class="phx-topic abstract-wrapper">New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in FAK rate levels over the last two weeks. </div>

New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in FAK rate levels over the last two weeks.

<div class="phx-topic">Container lines on the India-Europe trade lane have had to push their rate asks substantially lower to keep vessel loads as close as possible to their declared space allocations amid sluggish demand. New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in freight-all-kinds (FAK) rate levels over the last two weeks. FAK quotes from active India-Europe liners are now in the range of $1,600 to $1,800 per TEU/FEU for bookings from Nhava Sheva/Mundra to Felixstowe/London Gateway/Southampton or Rotterdam. But sources said TEU rates are slightly higher in cases where overweight surcharges — usually between $200 and $400 per box — are applied. Forwarders also said carriers are adjusting spot rates on a sailing-by-sailing or weekly basis to maximize cargo bookings. “Some recent vessels to Europe have sailed light due to falling booking levels,” said an executive at a Mumbai-based forwarder who didn’t want to be identified. The executive explained that the rate upswing seen on the trade lane through July was primarily linked to crimped capacity from multiple vessel blankings and that a correction was in the offing with schedules returning to the normal flow. “The market is settling into its reality,” the source said. Moreover, forwarders anticipate a further decline in India-Europe rates through September, potentially falling to $1,100 to $1,200 per standard box. There are other murky signals in the market. An unexpected capacity top-up seems to be taking hold for India-Europe cargo as major lines try to troubleshoot the tariff-linked impact on India-US volumes. For example, French liner CMA CGM, in search of incremental cargo avenues, in late September will add an extra stop at Tangier in Morocco to its India-US East Coast “Indamex” loop to connect Indian shipments destined for the Europe/Mediterranean region via transshipment. This is expected to inject 1,000 TEUs of additional weekly space into the already oversupplied India-Europe route. Sources believe other India-US operators could make similar “outside-the-box” moves. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

Container lines on the India-Europe trade lane have had to push their rate asks substantially lower to keep vessel loads as close as possible to their declared space allocations amid sluggish demand. New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in freight-all-kinds (FAK) rate levels over the last two weeks. FAK quotes from active India-Europe liners are now in the range of $1,600 to $1,800 per TEU/FEU for bookings from Nhava Sheva/Mundra to Felixstowe/London Gateway/Southampton or Rotterdam. But sources said TEU rates are slightly higher in cases where overweight surcharges — usually between $200 and $400 per box — are applied. Forwarders also said carriers are adjusting spot rates on a sailing-by-sailing or weekly basis to maximize cargo bookings. “Some recent vessels to Europe have sailed light due to falling booking levels,” said an executive at a Mumbai-based forwarder who didn’t want to be identified. The executive explained that the rate upswing seen on the trade lane through July was primarily linked to crimped capacity from multiple vessel blankings and that a correction was in the offing with schedules returning to the normal flow. “The market is settling into its reality,” the source said. Moreover, forwarders anticipate a further decline in India-Europe rates through September, potentially falling to $1,100 to $1,200 per standard box. There are other murky signals in the market. An unexpected capacity top-up seems to be taking hold for India-Europe cargo as major lines try to troubleshoot the tariff-linked impact on India-US volumes. For example, French liner CMA CGM, in search of incremental cargo avenues, in late September will add an extra stop at Tangier in Morocco to its India-US East Coast “Indamex” loop to connect Indian shipments destined for the Europe/Mediterranean region via transshipment. This is expected to inject 1,000 TEUs of additional weekly space into the already oversupplied India-Europe route. Sources believe other India-US operators could make similar “outside-the-box” moves. Contact Bency Mathew at bencyvmathew@gmail.com.

Port News

International ports

India-Europe liners lower rates as capacity normalizes amid little peak demand signs

Use code GTW695 at checkout and save $800 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code ESSW30 at checkout to save 30% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT/Anonymous to S/SP - Wide Box

END OF SUMMER SALE EXTENDED

Use code ESSW595 at checkout to save $900 on first year of a Gold subscription and 20% on a TPM26 registration!

Upgrade Subscription - S/SP to Gold - Wide Box

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code ESSGW995 at checkout to save $500 on first year of a Gold subscription and 20% on a TPM26 registration!

Subscribe Now - FT/Anonymous to Gold - Wide Box

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

Opentug11.png

Transform Barge Operations with Total Visibility

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

Photo 2.png

SSA Marine Mexico: True Commitment to Sustainability

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

SMC3rates_shutterstock_5247046.jpg

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>

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

END OF SUMMER SALE EXTENDED: Use code ESSW30 to save 30% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT/Anonymous to S/SP - Offer Box

SUBSCRIBE AND SAVE

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

UPGRADE TO GOLD AND SAVE: Use code GTW695 at checkout and save $800 on first year of a Gold subscription!

Upgrade Subscription

END OF SUMMER SALE EXTENDED: Use code ESSW595 at checkout to save $900 on first year of a Gold subscription and 20% on TPM26! 

Upgrade Subscription - S/SP to Gold - Offer Box

END OF SUMMER SALE EXTENDED: Use code ESSW995 to save $500 on an annual Gold subscription and 20% on a TPM26 registration!

Subscribe Now - FT/Anonymous to Gold - Offer Box

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland25

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The latest port news from the Journal of Commerce spans the globe from North Carolina and Florida to Shanghai and Singapore. Port news includes port automation, terminal construction projects, the future of decarbonization and net-zero shipping, dredging, port hinterland connectivity, labor, disruption, port congestion and cargo flow.

Marine terminals

Longshore labor

Drayage

Port infrastructure

Breakbulk ports

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Breakbulk News

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

Premier Alliance service halt latest sign of trans-Pacific demand downturn

Startups land collective $129 million in latest AI push into logistics

Disruptive force of AI will help usher in new era of container shipping