<div class="phx-topic abstract-wrapper">If you analyzed the requirements and the reasons why one would join the Customs-Trade Partnership Ag</div>

If you analyzed the requirements and the reasons why one would join the Customs-Trade Partnership Ag

<div>If you analyzed the requirements and the reasons why one would join the Customs-Trade Partnership Against Terrorism when it was launched in 2002 and compared it to today, you would notice how much the program has evolved. The common denominator is that it was developed as a voluntary effort to protect the import supply chain from terrorists who could use one of the 9 million cargo containers that arrive in the U.S. each year to smuggle personnel, firearms and weapons of mass destruction.If your company is considered the importer of record and/or the consignee, a carrier, port, terminal operator, customs...

If you analyzed the requirements and the reasons why one would join the Customs-Trade Partnership Against Terrorism when it was launched in 2002 and compared it to today, you would notice how much the program has evolved. The common denominator is that it was developed as a voluntary effort to protect the import supply chain from terrorists who could use one of the 9 million cargo containers that arrive in the U.S. each year to smuggle personnel, firearms and weapons of mass destruction. If your company is considered the importer of record and/or the consignee, a carrier, port, terminal operator, customs broker, forwarder or consolidator, you should know that you're eligible to join C-TPAT. Unlike conventional Customs' initiatives, C-TPAT requires the applicant to create a C-TPAT team consisting of employees who have knowledge of your company's operations, human resources, information technology and logistics. The team should focus on procedural and physical security, access control, personnel security, education and training awareness, manifest procedures, conveyance security and information technology security. Firms interested in C-TPAT membership generally fall under four categories: -- Companies in the U.S. and/or Mexico and Canada interested in Tier 1 membership. -- C-TPAT members eligible for the validation phase (Tier 2 membership). In this case, the company either has not updated its security profile or its initial security profile submission was fictionalized and there are no actual procedures in place. -- Eligible C-TPAT importers who perceive they are receiving the benefits of C-TPAT because their service providers are C-TPAT members. -- Companies that initially applied on their own by creating a security profile that only states what procedures they have in place, but don't meet today's C-TPAT requirements. This last approach may have been satisfactory for gaining membership when the program was launched. Today, Customs wants you to create your own security profile adhering to two requirements: Procedures must be written, no matter how routine or irrelevant they may appear to the applicant and regardless of your company's size, number of employees, type of industry or product; and procedures must be maintained and updated regularly. There are several reasons why joining the program may leave the impression that the program is mandatory rather than voluntary: -- Eligible C-TPAT members are experiencing more inspections and audits when previously they had no inspections at all. A C-TPAT member will have comparably fewer inspections and audits. -- The ability to do business with existing customers or to be eligible to do business with a prospective customer. Many other industries are following the lead of the major retailers, which are in the forefront of requiring their current and future vendors to join C-TPAT. -- Customers are exerting pressure on the vendors' U.S. suppliers when they are importing product into the United States. This is also evident because the imported product requirements are being extended to nonsaleable items such as promotional products. For example, a major pharmaceutical company buys promotional product from a vendor representing different U.S. companies, which in turn imports its product from overseas. Both the vendor and all of the U.S.-based suppliers would be required to join C-TPAT. -- U.S. Customs officials urge importers to consider C-TPAT, often when the importer is working with Customs officials on conventional issues, such as duties, tariffs and country-of-origin matters. In addition to the importer, the service provider has its own reasons for viewing the C-TPAT program as mandatory. First, the service provider will join if its customers are C-TPAT members or if it wants to bid for the importer's business (where the importer is a C-TPAT member). Second, the service provider will join if its C-TPAT customers are seeking validation for the Tier 2 phase. Being patriotic and learning about your business import supply chain are reason enough to voluntarily join the C-TPAT program. However, because most companies now make C-TPAT membership a requirement, membership by the vendor and the service provider will become the norm rather than the exception.

When voluntary means mandatory

<div class="phx-topic abstract-wrapper">Even another round of US tariffs and ongoing geopolitical concerns would be unlikely to blunt the growth, with airlines able to rapidly adjust capacity to support shifting trade flows, delegates at a global air cargo forum were told.</div>

Even another round of US tariffs and ongoing geopolitical concerns would be unlikely to blunt the growth, with airlines able to rapidly adjust capacity to support shifting trade flows, delegates at a global air cargo forum were told.

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<div class="phx-topic">ABU DHABI — Global air cargo recorded its 26th consecutive month of growth in October, with solid demand across leading air freight verticals expected to continue into 2026, air cargo executives say. Even another round of US tariffs and ongoing geopolitical uncertainty would be unlikely to stop this growth, with airlines able to rapidly adjust capacity to support another shift in trade flows, delegates at The International Air Cargo Association’s annual Air Cargo Forum were told Tuesday. “We have had such a long stretch when it comes to air freight growth,” said Stefan Krikken, global head of air freight at forwarder DSV. “The peak is relatively slow this year, but there's still a lot of positive momentum in cloud computing, e-commerce, (and) aerospace, as well as the trade shifts. “The verticals in air freight are becoming more sophisticated and demanding...the shifts into Southeast Asia markets, like Vietnam, Thailand, (and) the Indian subcontinent are really giving us opportunities to create new solutions, so it is looking very positive for 2026,” Krikken added Ryan Keyrouse, CEO of air freight analyst Rotate, warned that the 26 months of uninterrupted growth could not continue forever, but he agreed there were “quite some reasons” to be optimistic. “The US inventory-to-sales ratio has been positive for seven of the last eight months, a good sign for air cargo,” Keyrouse told the Tiaca forum. “Freighter utilization in October was also at a record 15 block hours per day on average, which is another sign of solid demand.” Global volume from January through October is up 3.9% year over year while capacity expanded 6%, Rotate data shows. But the shift in trade as China focused on other markets has left lanes out of Vietnam and Malaysia facing significant capacity pressure. Still, there are areas of concern in global air freight. On the “caution” side of the scale, Keyrouse placed steadily improving ocean schedule reliability that is pushing down rates and attracting discretionary cargo to switch from air freight. Another trade destabilizing factor are the unpredictable US tariffs, and although Keyrouse agreed the tariffs introduced uncertainty into cargo markets, he argued that carriers were able to quickly move freighters around as demand shifted away from China-US routes after the Trump administration announced its broad global tariffs on April 2. “The US tariff uncertainty is a reason to be unsure, and who knows what could happen next on any given morning, but we've had tariffs this year and it's only shifted supply chains,” Keyrouse said. “The aircraft industry has proven itself to be resilient in shifting capacity and just continuing to grow.” <h3>Good year expected for air cargo </h3>The positive expectation for 2026 was repeated often at the Tiaca conference. Martin Drew, chief strategy and transformation officer at Atlas Air Worldwide, said some of the volume that left the trans-Pacific is now returning as complex customs clearance formalities following the removal of US de minimis exemptions were being ironed out. Jeroem Giling, senior vice president of cargo for continental Europe at Swissport, said 2025 started slowly with the China-US tariffs on low-value e-commerce goods roiling the market, but activity has steadily picked up on other trades. “The e-commerce from China into the US slowed with a massive (shift) to Europe, and we have seen a huge amount of business with the expectations for 2026 more positive,” he said. Other market players have been untouched by the US tariff-driven volatility in demand. Taiwan-based Morrison Express CEO Asok Kumar noted the all-cargo carrier was headquartered in the semiconductor capital of the world. ”We’re in a very privileged position and our company has not seen a decline in volume this year,” Kumar said. “We’re in a very sweet spot in terms of our position and we’re very optimistic for next year.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

ABU DHABI — Global air cargo recorded its 26th consecutive month of growth in October, with solid demand across leading air freight verticals expected to continue into 2026, air cargo executives say. Even another round of US tariffs and ongoing geopolitical uncertainty would be unlikely to stop this growth, with airlines able to rapidly adjust capacity to support another shift in trade flows, delegates at The International Air Cargo Association’s annual Air Cargo Forum were told Tuesday. “We have had such a long stretch when it comes to air freight growth,” said Stefan Krikken, global head of air freight at forwarder DSV. “The peak is relatively slow this year, but there's still a lot of positive momentum in cloud computing, e-commerce, (and) aerospace, as well as the trade shifts. “The verticals in air freight are becoming more sophisticated and demanding...the shifts into Southeast Asia markets, like Vietnam, Thailand, (and) the Indian subcontinent are really giving us opportunities to create new solutions, so it is looking very positive for 2026,” Krikken added Ryan Keyrouse, CEO of air freight analyst Rotate, warned that the 26 months of uninterrupted growth could not continue forever, but he agreed there were “quite some reasons” to be optimistic. “The US inventory-to-sales ratio has been positive for seven of the last eight months, a good sign for air cargo,” Keyrouse told the Tiaca forum. “Freighter utilization in October was also at a record 15 block hours per day on average, which is another sign of solid demand.” Global volume from January through October is up 3.9% year over year while capacity expanded 6%, Rotate data shows. But the shift in trade as China focused on other markets has left lanes out of Vietnam and Malaysia facing significant capacity pressure. Still, there are areas of concern in global air freight. On the “caution” side of the scale, Keyrouse placed steadily improving ocean schedule reliability that is pushing down rates and attracting discretionary cargo to switch from air freight. Another trade destabilizing factor are the unpredictable US tariffs, and although Keyrouse agreed the tariffs introduced uncertainty into cargo markets, he argued that carriers were able to quickly move freighters around as demand shifted away from China-US routes after the Trump administration announced its broad global tariffs on April 2. “The US tariff uncertainty is a reason to be unsure, and who knows what could happen next on any given morning, but we've had tariffs this year and it's only shifted supply chains,” Keyrouse said. “The aircraft industry has proven itself to be resilient in shifting capacity and just continuing to grow.” Good year expected for air cargo The positive expectation for 2026 was repeated often at the Tiaca conference. Martin Drew, chief strategy and transformation officer at Atlas Air Worldwide, said some of the volume that left the trans-Pacific is now returning as complex customs clearance formalities following the removal of US de minimis exemptions were being ironed out. Jeroem Giling, senior vice president of cargo for continental Europe at Swissport, said 2025 started slowly with the China-US tariffs on low-value e-commerce goods roiling the market, but activity has steadily picked up on other trades. “The e-commerce from China into the US slowed with a massive (shift) to Europe, and we have seen a huge amount of business with the expectations for 2026 more positive,” he said. Other market players have been untouched by the US tariff-driven volatility in demand. Taiwan-based Morrison Express CEO Asok Kumar noted the all-cargo carrier was headquartered in the semiconductor capital of the world. ”We’re in a very privileged position and our company has not seen a decline in volume this year,” Kumar said. “We’re in a very sweet spot in terms of our position and we’re very optimistic for next year.” Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Carriers News

Air Cargo

Air freight growth remains solid as verticals support non-stop momentum

<div class="phx-topic abstract-wrapper">But the forwarding and logistics company said its ocean freight business dropped amid low demand and high vessel capacity. </div>

But the forwarding and logistics company said its ocean freight business dropped amid low demand and high vessel capacity.

<div class="phx-topic">Expeditors International on Tuesday reported third-quarter results that blew past analysts’ estimates as its air freight segment benefited from the buildout of artificial intelligence data centers. But its ocean freight business dropped amid low demand and high capacity, with those factors expected to remain in play for a while. The forwarding and logistics company reported third-quarter earnings of $1.64 per share on overall revenues of $2.9 billion. Despite being down from the year-earlier period, both figures beat forecasts of $1.40 per share and $2.7 billion, according to data from S&amp;P Global Capital IQ Estimates. Third-quarter air freight revenue was up 3.4% from the year-earlier period at $1.02 billion, with tonnage up 4%. Expeditors Chief Executive Daniel Wall said in the earnings report that tonnage rose thanks to high-value exports from North and South Asia, particularly due to “significant investments being made by our technology customers in artificial intelligence infrastructure.” Wall added that belly cargo capacity eased up in the third quarter due to the expiration of the US de minimis exception for low-value goods, leading to slightly lower air freight rates in the period. Expeditors’ customs brokerage segment reported a 13% increase in revenue in the third quarter to $1.1 billion, the highest since the third quarter of 2022. Wide-ranging and shifting US tariff policy drove an “increase in volume and complexity of entries [that] continues to test our customs group,” Wall said, adding that the company plans to use more AI systems in its customs brokerage. Expeditors’ ocean freight business saw its third-quarter revenue drop 26% from a year earlier to $746 million, with quarterly container volumes dropping 3%. Wall attributed the slide to shippers having frontloaded most of their imports in the first half of the year, with retail shippers in particular slowing down in the third quarter. Expeditors said its ocean freight results were also driven by declining rates due to weak demand and vessel oversupply. Wall said the supply-demand imbalance in ocean freight “could continue for some time.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Expeditors International on Tuesday reported third-quarter results that blew past analysts’ estimates as its air freight segment benefited from the buildout of artificial intelligence data centers. But its ocean freight business dropped amid low demand and high capacity, with those factors expected to remain in play for a while. The forwarding and logistics company reported third-quarter earnings of $1.64 per share on overall revenues of $2.9 billion. Despite being down from the year-earlier period, both figures beat forecasts of $1.40 per share and $2.7 billion, according to data from S&P Global Capital IQ Estimates. Third-quarter air freight revenue was up 3.4% from the year-earlier period at $1.02 billion, with tonnage up 4%. Expeditors Chief Executive Daniel Wall said in the earnings report that tonnage rose thanks to high-value exports from North and South Asia, particularly due to “significant investments being made by our technology customers in artificial intelligence infrastructure.” Wall added that belly cargo capacity eased up in the third quarter due to the expiration of the US de minimis exception for low-value goods, leading to slightly lower air freight rates in the period. Expeditors’ customs brokerage segment reported a 13% increase in revenue in the third quarter to $1.1 billion, the highest since the third quarter of 2022. Wide-ranging and shifting US tariff policy drove an “increase in volume and complexity of entries [that] continues to test our customs group,” Wall said, adding that the company plans to use more AI systems in its customs brokerage. Expeditors’ ocean freight business saw its third-quarter revenue drop 26% from a year earlier to $746 million, with quarterly container volumes dropping 3%. Wall attributed the slide to shippers having frontloaded most of their imports in the first half of the year, with retail shippers in particular slowing down in the third quarter. Expeditors said its ocean freight results were also driven by declining rates due to weak demand and vessel oversupply. Wall said the supply-demand imbalance in ocean freight “could continue for some time.” Contact Michael Angell at michael.angell@spglobal.com .

Air Cargo Forwarder News

Transport, Trade and Regulation News

Trans-Pacific

Expeditors’ Q3 earnings beat forecast on air freight, customs gains

<div class="phx-topic abstract-wrapper">An $800 general rate increase implemented over the weekend for West Coast business was already starting to deteriorate by Tuesday after some early — and fleeting — staying power generated by the US-China trade deal.</div>

An $800 general rate increase implemented over the weekend for West Coast business was already starting to deteriorate by Tuesday after some early — and fleeting — staying power generated by the US-China trade deal.

<div class="phx-topic">A general rate increase (GRI) of approximately $800 per FEU implemented by ocean carriers this weekend on the Asia to US West Coast trade is already beginning to erode amid a fundamental lack of demand, forwarders and carriers say. “The load factor to the West Coast is really not that strong,” Chris Sur, executive director for global sales at logistics provider Glovis America, told the Journal of Commerce. The GRI, enacted on Saturday, showed some initial staying power, coming just days after the <a href="https://www.joc.com/article/us-china-suspend-reciprocal-port-fees-as-part-of-wider-trade-deal-6105849">US and China reached a broad trade deal</a> that partially rolled back some tariffs and set a one-year pause on reciprocal port fees. A carrier executive said that in the immediate aftermath of the agreement, some retailers wanted to begin pulling fresh cargo into the US quickly because of uncertainty over how long the truce would last. That strategy lent support to rates on the West Coast trade, and the new GRI. “There was a bit of pent-up demand, and the West Coast is the fastest route,” the carrier executive said. The GRI pushed the West Coast spot rate up to about $2,750 to $2,850 per FEU; the rate one week earlier was about $2,040 per FEU, according to Platts, a sister product of the Journal of Commerce within S&amp;P Global. But the bullishness was short-lived, with sources saying the market had already begun to give up the GRI gains by Tuesday. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8c13a3e-9f5a-412f-8741-adbf5e1a7779"></dynamic-object></div>The rate moves for Asia to East Coast business were even more dramatic. Trans-Pacific carriers over the weekend attempted to impose a $1,000 per FEU GRI on shipments from Asia to the East Coast, but that GRI “completely collapsed,” a forwarder said. By Monday, the East Coast spot rate had dropped to about $2,750 to $2,850 per FEU — about the same level as the West Coast rate, a mark of parity that is highly unusual. “I never remember that happening before,” the forwarder said. <h3>Holiday merchandise has already arrived </h3>Sur said the reality in the eastbound trans-Pacific is that retailers have already imported their holiday season merchandise for the Black Friday sales that begin on the day after Thanksgiving in the US. The remaining two months of the year will be a weak period for imports, as they usually are, he said. Meanwhile, bookings for shipments from China into the US fell about 16% in October compared with September, according to data from maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. Still, bookings for Chinese cargo during the second half of October rebounded somewhat, increasing by more than 15% compared with the first half of the month. The structural weakness in overall demand in the eastbound trans-Pacific will likely continue through the end of the year, but that does not preclude carriers from attempting to implement further GRIs, Sur said. “If carriers have the resolve to do it, they’ll do it,” he said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

A general rate increase (GRI) of approximately $800 per FEU implemented by ocean carriers this weekend on the Asia to US West Coast trade is already beginning to erode amid a fundamental lack of demand, forwarders and carriers say. “The load factor to the West Coast is really not that strong,” Chris Sur, executive director for global sales at logistics provider Glovis America, told the Journal of Commerce. The GRI, enacted on Saturday, showed some initial staying power, coming just days after the US and China reached a broad trade deal that partially rolled back some tariffs and set a one-year pause on reciprocal port fees. A carrier executive said that in the immediate aftermath of the agreement, some retailers wanted to begin pulling fresh cargo into the US quickly because of uncertainty over how long the truce would last. That strategy lent support to rates on the West Coast trade, and the new GRI. “There was a bit of pent-up demand, and the West Coast is the fastest route,” the carrier executive said. The GRI pushed the West Coast spot rate up to about $2,750 to $2,850 per FEU; the rate one week earlier was about $2,040 per FEU, according to Platts, a sister product of the Journal of Commerce within S&P Global. But the bullishness was short-lived, with sources saying the market had already begun to give up the GRI gains by Tuesday. The rate moves for Asia to East Coast business were even more dramatic. Trans-Pacific carriers over the weekend attempted to impose a $1,000 per FEU GRI on shipments from Asia to the East Coast, but that GRI “completely collapsed,” a forwarder said. By Monday, the East Coast spot rate had dropped to about $2,750 to $2,850 per FEU — about the same level as the West Coast rate, a mark of parity that is highly unusual. “I never remember that happening before,” the forwarder said. Holiday merchandise has already arrived Sur said the reality in the eastbound trans-Pacific is that retailers have already imported their holiday season merchandise for the Black Friday sales that begin on the day after Thanksgiving in the US. The remaining two months of the year will be a weak period for imports, as they usually are, he said. Meanwhile, bookings for shipments from China into the US fell about 16% in October compared with September, according to data from maritime visibility provider Vizion and data and analytics company Dun & Bradstreet. Still, bookings for Chinese cargo during the second half of October rebounded somewhat, increasing by more than 15% compared with the first half of the month. The structural weakness in overall demand in the eastbound trans-Pacific will likely continue through the end of the year, but that does not preclude carriers from attempting to implement further GRIs, Sur said. “If carriers have the resolve to do it, they’ll do it,” he said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Laura Robb at laura.robb@spglobal.com .

Container lines

Container Shipping News

Maritime

Soft demand in eastbound trans-Pacific overwhelms carriers’ GRI attempt

<div class="phx-topic abstract-wrapper">“Significant uncertainties” due to US tariffs and a capacity oversupply amid ongoing new vessel deliveries prompted the Singapore-based carrier to sharply reset performance expectations for the balance of its fiscal year. </div>

“Significant uncertainties” due to US tariffs and a capacity oversupply amid ongoing new vessel deliveries prompted the Singapore-based carrier to sharply reset performance expectations for the balance of its fiscal year.

<div class="phx-topic">Ocean Network Express (ONE) on Tuesday halved its full-year net profit forecast to $310 million, citing the negative impact of new vessel deliveries and economic uncertainty on freight rates and cargo demand. The revised figure, down from $700 million projected in August, includes a forecast net loss of $61 million for the second half of ONE’s 2025 fiscal year, which runs from October through March, the Singapore-based carrier said in its interim fiscal year second-quarter results. Full fiscal year revenue for the 12 months from April 2025 to March 2026 is now estimated at $16.5 billion, down from $17.1 billion. “The overall market environment may not prove as robust as initially projected,” ONE said in its earnings statement. “The global environment remains subject to significant uncertainties, including potential impacts from [US] tariffs and US Trade Representative actions.” The carrier said ongoing new vessel deliveries created an oversupply, leading to a sharp decline in spot rates on major East-West trades during the most recent quarter. It expected additional new vessel deliveries to “persist throughout the fiscal year, affecting overall market conditions.” According to the World Container Index (WCI) as assessed by Drewry, average global container spot rates had fallen from a July 1 peak of $5,806 per FEU to $1,822 as of Oct. 1. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="633d74d4-3e57-4d30-9b26-c9b52f6efb5c"></dynamic-object></div>The downbeat second-half estimate comes after a buoyant first half, especially in the fiscal second quarter between July and September, when ONE saw a three-fold increase in net profit after cargo volumes surged in July. Fiscal year second-quarter net profit was $285 million, up from $86 million in the first quarter, but an 86% drop from $2 billion in the second quarter of last year due to “significantly lower” freight rates. Revenue in the most recent quarter was $4.5 billion, against $4 billion in the first quarter and $5.9 billion in the year-earlier period. Liftings on the Asia-North America eastbound trade increased to 711,000 TEUs in the fiscal second quarter, up from 672,000 TEUs in the first quarter, “driven by a cargo surge in July due to US tariff frontloading,” ONE said. Liftings on the Asia-Europe westbound trade rose quarter over quarter from 456,000 TEUs in the first quarter to 501,000 TEUs in the second quarter. ONE said it had 51 vessels on order at the end of September, including ships that will be delivered on long-term charter. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Ocean Network Express (ONE) on Tuesday halved its full-year net profit forecast to $310 million, citing the negative impact of new vessel deliveries and economic uncertainty on freight rates and cargo demand. The revised figure, down from $700 million projected in August, includes a forecast net loss of $61 million for the second half of ONE’s 2025 fiscal year, which runs from October through March, the Singapore-based carrier said in its interim fiscal year second-quarter results. Full fiscal year revenue for the 12 months from April 2025 to March 2026 is now estimated at $16.5 billion, down from $17.1 billion. “The overall market environment may not prove as robust as initially projected,” ONE said in its earnings statement. “The global environment remains subject to significant uncertainties, including potential impacts from [US] tariffs and US Trade Representative actions.” The carrier said ongoing new vessel deliveries created an oversupply, leading to a sharp decline in spot rates on major East-West trades during the most recent quarter. It expected additional new vessel deliveries to “persist throughout the fiscal year, affecting overall market conditions.” According to the World Container Index (WCI) as assessed by Drewry, average global container spot rates had fallen from a July 1 peak of $5,806 per FEU to $1,822 as of Oct. 1. The downbeat second-half estimate comes after a buoyant first half, especially in the fiscal second quarter between July and September, when ONE saw a three-fold increase in net profit after cargo volumes surged in July. Fiscal year second-quarter net profit was $285 million, up from $86 million in the first quarter, but an 86% drop from $2 billion in the second quarter of last year due to “significantly lower” freight rates. Revenue in the most recent quarter was $4.5 billion, against $4 billion in the first quarter and $5.9 billion in the year-earlier period. Liftings on the Asia-North America eastbound trade increased to 711,000 TEUs in the fiscal second quarter, up from 672,000 TEUs in the first quarter, “driven by a cargo surge in July due to US tariff frontloading,” ONE said. Liftings on the Asia-Europe westbound trade rose quarter over quarter from 456,000 TEUs in the first quarter to 501,000 TEUs in the second quarter. ONE said it had 51 vessels on order at the end of September, including ships that will be delivered on long-term charter. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

ONE halves full-year net profit forecast on projected H2 loss

<div class="phx-topic abstract-wrapper">The fresh price increases vary between terminal operators and by export and import cargo, with most ranging between 5% and 15%, although running as high as 47% in one case. </div>

The fresh price increases vary between terminal operators and by export and import cargo, with most ranging between 5% and 15%, although running as high as 47% in one case.

<div class="phx-topic">Shipper groups in Australia are urging the federal government to legislate how terminal operators impose container handling charges after the top operators in the country announced hikes of up to 47% beginning Jan. 1. The Freight &amp; Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) said they were “seriously concerned” by the “significant increases” in terminal access charges and other fees announced by the operators late last week. The operators include DP World Australia, Patrick Terminals and Victoria International Container Terminal (VICT), owned by Philippine terminal operator International Container Terminal Services. Shipper groups say they expect Hutchison Ports Australia to announce new terminal charges in the next few weeks. Tom Jensen, FTA’s general manager for freight policy and operations, told the Journal of Commerce Tuesday the FTA and APSA will meet shortly with officials from the Australian Competition and Consumer Commission to discuss the latest increases in the terminal access charges (TACs) and empty container park (ECP) fees and raise the need for regulatory action. The commission highlighted the possible need for regulatory control of terminal and other landside charges in its annual container terminal monitoring report published last December. The scale of the new charges is likely to lead to further calls by the commission for government action when it publishes its latest container terminal report next month. “We need regulation that enforces scrutiny over any price increase — or better still, requires terminal operators to negotiate directly with their commercial clients, the shipping lines,” FTA Director Paul Zalai said. “If shipping lines then wish to recover costs, they can do so through commercial negotiation with exporters, importers and freight forwarders,” Zalai added. <h3>DP World says ‘significant’ capex required at terminals </h3>The fee increases vary between terminal operators and by export and import cargo, with most ranging between 5% and 15%. Higher increases have generally been levied on import containers. The steepest hike has been imposed by DP World Australia, with a 47.2% increase in charges, to $51, on import and export containers at its Fremantle terminal. The Dubai-headquartered operator has also announced a 14.2% increase in fees on import containers at its terminals in Sydney, Brisbane and Melbourne and a 6.9% hike in charges for export containers at the same three terminals. This will increase fees for a laden inbound container at Melbourne to $156. “A significant amount in capital expenditure across 2025–28 will be required across our four terminals to invest in key equipment, civil expansion works and other equipment to cater for greater landside demand going forward,” DP World Australia said in a statement. VICT has raised fees for inbound and export containers at its Melbourne facility by 10.8% to $146. Patrick Terminals has increased fees on export containers by 5% and on import boxes by 8% at its Sydney, Brisbane and Melbourne terminals, with a 10.2% across-the-board increase for containers at its Fremantle facility. “Melbourne and Brisbane remain the most expensive port for imports, while Melbourne is the most expensive for exports,” FTA’s Jensen said of the latest charges. “Fremantle remains lower in dollar terms but has recorded the steepest percentage increase,” he added. “It’s one of the highest single-year hikes since the introduction of terminal access charges.” Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Shipper groups in Australia are urging the federal government to legislate how terminal operators impose container handling charges after the top operators in the country announced hikes of up to 47% beginning Jan. 1. The Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) said they were “seriously concerned” by the “significant increases” in terminal access charges and other fees announced by the operators late last week. The operators include DP World Australia, Patrick Terminals and Victoria International Container Terminal (VICT), owned by Philippine terminal operator International Container Terminal Services. Shipper groups say they expect Hutchison Ports Australia to announce new terminal charges in the next few weeks. Tom Jensen, FTA’s general manager for freight policy and operations, told the Journal of Commerce Tuesday the FTA and APSA will meet shortly with officials from the Australian Competition and Consumer Commission to discuss the latest increases in the terminal access charges (TACs) and empty container park (ECP) fees and raise the need for regulatory action. The commission highlighted the possible need for regulatory control of terminal and other landside charges in its annual container terminal monitoring report published last December. The scale of the new charges is likely to lead to further calls by the commission for government action when it publishes its latest container terminal report next month. “We need regulation that enforces scrutiny over any price increase — or better still, requires terminal operators to negotiate directly with their commercial clients, the shipping lines,” FTA Director Paul Zalai said. “If shipping lines then wish to recover costs, they can do so through commercial negotiation with exporters, importers and freight forwarders,” Zalai added. DP World says ‘significant’ capex required at terminals The fee increases vary between terminal operators and by export and import cargo, with most ranging between 5% and 15%. Higher increases have generally been levied on import containers. The steepest hike has been imposed by DP World Australia, with a 47.2% increase in charges, to $51, on import and export containers at its Fremantle terminal. The Dubai-headquartered operator has also announced a 14.2% increase in fees on import containers at its terminals in Sydney, Brisbane and Melbourne and a 6.9% hike in charges for export containers at the same three terminals. This will increase fees for a laden inbound container at Melbourne to $156. “A significant amount in capital expenditure across 2025–28 will be required across our four terminals to invest in key equipment, civil expansion works and other equipment to cater for greater landside demand going forward,” DP World Australia said in a statement. VICT has raised fees for inbound and export containers at its Melbourne facility by 10.8% to $146. Patrick Terminals has increased fees on export containers by 5% and on import boxes by 8% at its Sydney, Brisbane and Melbourne terminals, with a 10.2% across-the-board increase for containers at its Fremantle facility. “Melbourne and Brisbane remain the most expensive port for imports, while Melbourne is the most expensive for exports,” FTA’s Jensen said of the latest charges. “Fremantle remains lower in dollar terms but has recorded the steepest percentage increase,” he added. “It’s one of the highest single-year hikes since the introduction of terminal access charges.” Contact Keith Wallis at keithwallis@hotmail.com .

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

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Shippers save money, time with automated transportation bidding tools

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

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Filling the Supply Chain Education Gap with LTL Education Courses

In 1995, we began operations with a clear vision: to grow alongside Mexico and connect the world through our terminals. Our priority has always been to deliver excellence in service, foster economic development, and strengthen our communities. We firmly believe that progress is not only measured in tons of cargo moved, but in the opportunities we create. _______________________________________________________________ This year marks a significant milestone: SSA Marine Mexico celebrates 30 years of presence in the country, having established itself from day one as the leading port operator nationwide. Over the past three decades, we have built a legacy of reliability, innovation, and commitment to Mexico’s growth. Our journey has been defined by continuous evolution and a steadfast dedication to our mission. SSA Marine México currently operates in six of the country’s most important ports: Cozumel, Lazaro Cardenas, Manzanillo, Progreso, Tuxpan, and Veracruz. Additionally, we have signed a concession to operate a new multipurpose terminal in Guaymas, Sonora, expanding our footprint to the north of the country. We serve a wide range of segments including containers, general cargo, automobiles, cruise ships, hydrocarbons, and asphalt. As part of this ongoing commitment, SSA Marine Mexico continues to strengthen its infrastructure and capabilities. International trade remains a key driver of global economic growth, and we are proud to support this momentum. Through our continuous improvement strategy, we invest in cutting-edge technology and equipment to deliver more efficient and competitive services, contributing to the success of Mexican businesses. •	Manzanillo, Colima- Specialized Container Terminal I: On October 13, we celebrated the arrival of two new STS (Ship To Shore) Super Post Panamax dockside cranes. This $21.2 million USD investment significantly boosts our operational capacity, streamlining cargo reception and delivery processes. In line with our modernization efforts, we will also retire four of our oldest cranes, paving the way for a more sustainable and technologically advanced fleet that meets the evolving demands of international trade. With these upgrades, SSA Marine México now operates a total of 16 cranes along our 1,350-meter dock, reaffirming our position as a national benchmark in port <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982635607_Manzanillo.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> •	As for the Multipurpose Terminal and Specialized Facility, also in Manzanillo, Colima, improvement and conditioning works are planned, along with the acquisition of four E-RTG (Electric Rubber-Tyred Gantry) cranes to enhance operational efficiency and sustainability. •	At our Automobile and General Cargo Terminal in the port of Veracruz, we continue to lead with specialized value-added services that support our clients’ growth. Recent investments include a new washing cabin and a general cargo warehouse, increasing indoor storage capacity by 67%. •	Lazaro Cardenas, Michoacan – Specialized Automobile Terminal: we are working on the development of an additional 4-hectare storage space within our bonded area and a 10-hectare Vehicle Distribution Center (VDC). These enhancements, along with ongoing personnel and system improvements, will reinforce our leadership in automotive handling across the Mexican Pacific coast.<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982742240_Lazaro.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> Through these strategic investments, SSA Marine Mexico reaffirms its commitment to the sustained growth of Mexico’s foreign trade. By expanding capacity, modernizing infrastructure, and diversifying services, we continue to strengthen the country’s competitiveness in global logistics. Today, we celebrate three decades of dedication, innovation, and leadership, with deep gratitude to our employees, clients, and partners for being part of this incredible journey. LINK: https://www.ssamarine.mx/<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/1760982787360_SSA%20Marine%20Mexico%20logo%20150pxW.png" alt="" class="joc_admin__inline-image-inherit">

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SSA Marine Mexico: 30 years growing together.

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