<div class="phx-topic abstract-wrapper">A California appellate court ruled that insurance companies must provide their policyholders with co</div>

A California appellate court ruled that insurance companies must provide their policyholders with co

<div>A California appellate court ruled that insurance companies must provide their policyholders with coverage for damages occurring over the entire course of environmental contamination from hazardous waste disposal.The court rejected the insurers' argument that they could limit coverage for ongoing injuries to a single policy period, according to plaintiffs attorney Latham &amp; Watkins, San Diego.The decision in Montrose Chemical Corp v. Admiral Insurance Company is the first in California to decide the trigger of coverage for third-party environmental insurance claims, said David Mulliken of Latham &amp; Watkins.Admiral officials could not be reached for comment Wednesday.According to the opinion, Montrose manufactured...

A California appellate court ruled that insurance companies must provide their policyholders with coverage for damages occurring over the entire course of environmental contamination from hazardous waste disposal. The court rejected the insurers' argument that they could limit coverage for ongoing injuries to a single policy period, according to plaintiffs attorney Latham & Watkins, San Diego.The decision in Montrose Chemical Corp v. Admiral Insurance Company is the first in California to decide the trigger of coverage for third-party environmental insurance claims, said David Mulliken of Latham & Watkins. Admiral officials could not be reached for comment Wednesday. According to the opinion, Montrose manufactured DDT for use in pesticides from 1947 until 1982. It's been covered since 1960 by comprehensive general liability insurance policies from seven different carriers, most recently Cherry Hill, N.J.-based Admiral Insurance Co., which issued four CGL policies to Montrose covering periods from October 1982 to March 1986.

CHEMICAL FIRM WINS POLLUTION COVER RULING

<div class="phx-topic abstract-wrapper">Railroads are restricting train speeds and building shorter trains to reduce the potential for breakdowns and derailments in the bitter cold. </div>

Railroads are restricting train speeds and building shorter trains to reduce the potential for breakdowns and derailments in the bitter cold.

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<div class="phx-topic">US Class I railroads on Wednesday remained in recovery mode after severe winter weather impacted a large swath of the country over the weekend, with shippers seeing delays as trains operate at slower speeds as a safety precaution. Railroads have also shortened the average train length to prevent equipment breakdowns in frigid temperatures. Frontline workers must inspect tracks, which contract in the extreme cold and could result in a derailment if not caught in time. Terminals must also slow operations because overhead cranes, lift machines, and hostlers that move containers within the facilities are susceptible to malfunctioning in the cold. Union Pacific Railroad said the biggest disruptions are happening in Arkansas, Louisiana and Texas, impacting trains to Dallas-Ft. Worth, New Orleans, and Shreveport. There have also been disruptions in Little Rock, Ark., where UP handles non-intermodal manifest trains. UP said the West Coast was not impacted, while the northern part of its network recovered quickly. “In that central-east and southern part, they've done a spectacular job of recovering,” UP CEO Jim Vena said Tuesday during the company’s fourth-quarter earnings call. “Where it would have taken us weeks to get back [to normal], we should see that...after a few days.” The railroad said it was 70% recovered as of Tuesday and should be back to normal in terms of infrastructure on Thursday or Friday. BNSF Railway saw the biggest impact on terminals in Haslet, outside of Dallas-Ft. Worth, and Memphis. COFC Logistics, a partner of BNSF for domestic intermodal, warned customers to expect delays getting domestic boxes through those two terminals in the short term. “The overall network is expected to stabilize by the end of the week, with full recovery anticipated early next week,” COFC wrote in an advisory to customers Tuesday afternoon. “Crews continue working through lingering ice in Tulsa, Memphis, and North Fort Worth. Another surge of arctic air is expected Friday into Saturday, and BNSF is positioning additional locomotives where train‑length restrictions will be required.” Norfolk Southern Railway suspended the lifting of international containers on and off trucks in Atlanta on Sunday and Monday, extending free time for any impacted cargo owners. It has since returned to normal operations. <h3>Cutting train lengths </h3>Aside from slowing trains for safety, railroads are running shorter trains because various components such as air and brake systems, bearings, wheels, and locomotives can freeze, crack, or lose power in extreme cold. The longer the train, the greater the risk. Data from rail visibility platform RailState shows the median intermodal train length fell more than 20% in Ohio, 10% in Pennsylvania and 1.4% in Indiana on Sunday and Monday compared with before the storm. In the case of Ohio, the median train length is 1,479 feet shorter post-storm versus pre-storm, which equates to roughly 25 fewer containers on a single-stack train, or 50 boxes if containers are piled two high. The result is that more boxes will be left behind at origin, which means slower trains and longer dwells will create more delays for intermodal shippers in the impacted regions. <h3>Storm impact on truck market </h3>Meanwhile, it’s likely the truckload spot market will see an upward pop in rates due to the snowstorm, much like after a hurricane or tornado. Data from providers like DAT Freight and Analytics is calculated on a rolling three-day and seven-day average, so more information should be available in the coming days. Ken Adamo, DAT’s chief of analytics, does not believe the impact will be as severe as February 2021 when snow, ice, frigid temperatures, and a prolonged blackout in Texas gridlocked truck and rail freight for weeks. “Beyond the precipitation and blowing snow, the deep arctic chill that has settled into a large portion of the country has spiked demand for protect-from-freeze loads and slowed storm cleanup,” Adamo wrote on LinkedIn Wednesday morning. “As a result, the seasonal freefall of rates has abated and shot back up.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

US Class I railroads on Wednesday remained in recovery mode after severe winter weather impacted a large swath of the country over the weekend, with shippers seeing delays as trains operate at slower speeds as a safety precaution. Railroads have also shortened the average train length to prevent equipment breakdowns in frigid temperatures. Frontline workers must inspect tracks, which contract in the extreme cold and could result in a derailment if not caught in time. Terminals must also slow operations because overhead cranes, lift machines, and hostlers that move containers within the facilities are susceptible to malfunctioning in the cold. Union Pacific Railroad said the biggest disruptions are happening in Arkansas, Louisiana and Texas, impacting trains to Dallas-Ft. Worth, New Orleans, and Shreveport. There have also been disruptions in Little Rock, Ark., where UP handles non-intermodal manifest trains. UP said the West Coast was not impacted, while the northern part of its network recovered quickly. “In that central-east and southern part, they've done a spectacular job of recovering,” UP CEO Jim Vena said Tuesday during the company’s fourth-quarter earnings call. “Where it would have taken us weeks to get back [to normal], we should see that...after a few days.” The railroad said it was 70% recovered as of Tuesday and should be back to normal in terms of infrastructure on Thursday or Friday. BNSF Railway saw the biggest impact on terminals in Haslet, outside of Dallas-Ft. Worth, and Memphis. COFC Logistics, a partner of BNSF for domestic intermodal, warned customers to expect delays getting domestic boxes through those two terminals in the short term. “The overall network is expected to stabilize by the end of the week, with full recovery anticipated early next week,” COFC wrote in an advisory to customers Tuesday afternoon. “Crews continue working through lingering ice in Tulsa, Memphis, and North Fort Worth. Another surge of arctic air is expected Friday into Saturday, and BNSF is positioning additional locomotives where train‑length restrictions will be required.” Norfolk Southern Railway suspended the lifting of international containers on and off trucks in Atlanta on Sunday and Monday, extending free time for any impacted cargo owners. It has since returned to normal operations. Cutting train lengths Aside from slowing trains for safety, railroads are running shorter trains because various components such as air and brake systems, bearings, wheels, and locomotives can freeze, crack, or lose power in extreme cold. The longer the train, the greater the risk. Data from rail visibility platform RailState shows the median intermodal train length fell more than 20% in Ohio, 10% in Pennsylvania and 1.4% in Indiana on Sunday and Monday compared with before the storm. In the case of Ohio, the median train length is 1,479 feet shorter post-storm versus pre-storm, which equates to roughly 25 fewer containers on a single-stack train, or 50 boxes if containers are piled two high. The result is that more boxes will be left behind at origin, which means slower trains and longer dwells will create more delays for intermodal shippers in the impacted regions. Storm impact on truck market Meanwhile, it’s likely the truckload spot market will see an upward pop in rates due to the snowstorm, much like after a hurricane or tornado. Data from providers like DAT Freight and Analytics is calculated on a rolling three-day and seven-day average, so more information should be available in the coming days. Ken Adamo, DAT’s chief of analytics, does not believe the impact will be as severe as February 2021 when snow, ice, frigid temperatures, and a prolonged blackout in Texas gridlocked truck and rail freight for weeks. “Beyond the precipitation and blowing snow, the deep arctic chill that has settled into a large portion of the country has spiked demand for protect-from-freeze loads and slowed storm cleanup,” Adamo wrote on LinkedIn Wednesday morning. “As a result, the seasonal freefall of rates has abated and shot back up.” Contact Ari Ashe at ari.ashe@spglobal.com

Rail News

Surface

US rail networks recovering after weekend snowstorm, but delays persist

<div class="phx-topic abstract-wrapper">The latest in a series of extreme winter storms is blowing through the region, this one in southwestern Europe that is suspending terminal operations and halting ferry traffic. </div>

The latest in a series of extreme winter storms is blowing through the region, this one in southwestern Europe that is suspending terminal operations and halting ferry traffic.

<div class="phx-topic">Gale force winds and heavy seas across southwestern Europe have forced container terminals in the West Mediterranean hubs of Tanger-Med and Algeciras to suspend operations. A severe Atlantic storm hit the region earlier this week and is expected to intensify in the coming days and move northwards, with gale warnings issued in the Bay of Biscay and the UK. “Terminals in the West Mediterranean have stopped operations with no clear indication of when operations can start again,” Maersk told customers in an advisory Wednesday, warning that weather conditions are expected to worsen. “This situation is affecting the entire industry, and due to the severity and uncertainty of the conditions, we expect delays and closures to continue to impact vessels and terminals across the board,” the carrier added. Waves of up to seven meters on the Atlantic coast and in the Strait of Gibraltar have also halted all ferry traffic between Tangier and southern Spain, with logistics providers reporting a significant buildup of cargo trucks at the Spanish hub of Algeciras. <h3>Weather disruptions in Northern Europe </h3>Europe has been battered by a series of severe winter storms in January, with extreme weather conditions also <a href="https://www.joc.com/article/severe-winter-storm-disrupts-north-europe-port-inland-operations-6148334">disrupting terminal operations at Hamburg, Rotterdam and Antwerp</a>. Kuehne + Nagel’s visibility platform SeaExplorer is reporting “heavily disrupted operations” at Hamburg, with trucks backed up at the CTA and CTB terminals. SeaExplorer said low temperatures are forecast for the rest of this week, and current transport conditions are expected to remain. Freezing temperatures, snow and ice are also impacting terminal and landside operations at Maersk’s Polish hub of Gdansk. ”Frozen equipment, together with snow and ice on the roads and railways, are restricting the delivery and collection of cargo,” Maersk said in a separate customer advisory Wednesday. “Truck slots are fully booked, and trains are being delayed or canceled,” the carrier said. “Waterside cargo operations are limited, with reduced container moves per hour due to heavy snowfall and frozen equipment.” Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>. </div>

Gale force winds and heavy seas across southwestern Europe have forced container terminals in the West Mediterranean hubs of Tanger-Med and Algeciras to suspend operations. A severe Atlantic storm hit the region earlier this week and is expected to intensify in the coming days and move northwards, with gale warnings issued in the Bay of Biscay and the UK. “Terminals in the West Mediterranean have stopped operations with no clear indication of when operations can start again,” Maersk told customers in an advisory Wednesday, warning that weather conditions are expected to worsen. “This situation is affecting the entire industry, and due to the severity and uncertainty of the conditions, we expect delays and closures to continue to impact vessels and terminals across the board,” the carrier added. Waves of up to seven meters on the Atlantic coast and in the Strait of Gibraltar have also halted all ferry traffic between Tangier and southern Spain, with logistics providers reporting a significant buildup of cargo trucks at the Spanish hub of Algeciras. Weather disruptions in Northern Europe Europe has been battered by a series of severe winter storms in January, with extreme weather conditions also disrupting terminal operations at Hamburg, Rotterdam and Antwerp . Kuehne + Nagel’s visibility platform SeaExplorer is reporting “heavily disrupted operations” at Hamburg, with trucks backed up at the CTA and CTB terminals. SeaExplorer said low temperatures are forecast for the rest of this week, and current transport conditions are expected to remain. Freezing temperatures, snow and ice are also impacting terminal and landside operations at Maersk’s Polish hub of Gdansk. ”Frozen equipment, together with snow and ice on the roads and railways, are restricting the delivery and collection of cargo,” Maersk said in a separate customer advisory Wednesday. “Truck slots are fully booked, and trains are being delayed or canceled,” the carrier said. “Waterside cargo operations are limited, with reduced container moves per hour due to heavy snowfall and frozen equipment.” Contact Greg Knowler at  greg.knowler@spglobal.com . 

Container lines

Asia-Europe

International ports

Maritime

New Atlantic storm shuts West Mediterranean container hubs

<div class="phx-topic abstract-wrapper">The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line.</div>

The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line.

<div class="phx-topic">Taiwan's Evergreen Marine is continuing to lock in new tonnage after approving a pair of shipbuilding orders with two Chinese shipyards worth up to almost $1.5 billion for 23 vessels. Both contracts were approved by Evergreen directors at a meeting Tuesday. The larger of the two deals was placed with CSSC Huangpu Wenchong Shipbuilding for 16 3,100-TEU container ships. Evergreen said the order is worth between $736 million and $896 million. The second contract, valued at between $469 million and $574 million, is for seven 5,900-TEU ships that will be constructed by Jiangsu New Yangzi Shipbuilding. Evergreen did not specify the fuel type the ships would use, when they would be delivered or where they would be deployed. Shipbrokers, though, said the ships are likely to join the Evergreen fleet in 2028 and 2029. The carrier <a href="https://www.joc.com/article/evergreen-to-expand-latin-america-middle-east-services-6087379">said in September</a> that it would deploy 3,000-TEU capacity ships on Caribbean services by 2030. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b329b55b-f24b-4c28-90ae-63ad99a09181"></dynamic-object></div>The new deals approved Tuesday follow contracts <a href="https://www.joc.com/article/evergreen-says-will-spend-almost-3-billion-on-14-new-lng-fueled-ships-6114739">Evergreen inked in November</a> worth almost $3 billion for 14 14,000-TEU LNG-powered container ships. The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line, according to data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Evergreen is still some way behind fourth-placed Cosco Shipping Holdings, which has a total capacity comprising ships in service and on order by Cosco Shipping and its Hong Kong affiliate OOCL of 4.2 million TEUs. The latest Evergreen orders also boost the total container ship orderbook to 1,275 ships totaling 11.5 million TEUs, equivalent to more than 34% of the existing fleet, to be delivered between 2026 and 2030, according to the latest data from British shipbroker Clarksons. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Taiwan's Evergreen Marine is continuing to lock in new tonnage after approving a pair of shipbuilding orders with two Chinese shipyards worth up to almost $1.5 billion for 23 vessels. Both contracts were approved by Evergreen directors at a meeting Tuesday. The larger of the two deals was placed with CSSC Huangpu Wenchong Shipbuilding for 16 3,100-TEU container ships. Evergreen said the order is worth between $736 million and $896 million. The second contract, valued at between $469 million and $574 million, is for seven 5,900-TEU ships that will be constructed by Jiangsu New Yangzi Shipbuilding. Evergreen did not specify the fuel type the ships would use, when they would be delivered or where they would be deployed. Shipbrokers, though, said the ships are likely to join the Evergreen fleet in 2028 and 2029. The carrier said in September that it would deploy 3,000-TEU capacity ships on Caribbean services by 2030. The new deals approved Tuesday follow contracts Evergreen inked in November worth almost $3 billion for 14 14,000-TEU LNG-powered container ships. The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line, according to data from Sea-web, a sister company of the Journal of Commerce within S&P Global. Evergreen is still some way behind fourth-placed Cosco Shipping Holdings, which has a total capacity comprising ships in service and on order by Cosco Shipping and its Hong Kong affiliate OOCL of 4.2 million TEUs. The latest Evergreen orders also boost the total container ship orderbook to 1,275 ships totaling 11.5 million TEUs, equivalent to more than 34% of the existing fleet, to be delivered between 2026 and 2030, according to the latest data from British shipbroker Clarksons. Contact Keith Wallis at keithwallis@hotmail.com.

Container Shipping News

Evergreen adds to order backlog with deals for 23 ships worth up to almost $1.5 billion

<div class="phx-topic abstract-wrapper">The logistics payments vendor has partnered with fellow software provider Gnosis Freight to enable payments at other stages of a containerized shipment lifecycle.</div>

The logistics payments vendor has partnered with fellow software provider Gnosis Freight to enable payments at other stages of a containerized shipment lifecycle.

<div class="phx-topic">Logistics payment software vendor PayCargo on Wednesday said it is broadening its reach to underpin a wider range of international transportation transactions. The company has traditionally focused on facilitating payments tied to cargo release from third-party logistics companies to ocean carriers, first as a pure payments transaction portal and then by established direct feeds with customers and shipping lines. The expansion announced Wednesday will see PayCargo enable payments in adjacent transactions, particularly around storage fees that accrue at various points in the lifecycle of a containerized shipment. PayCargo CEO Eduardo Del Riego told the Journal of Commerce the new capability has been co-developed with fellow software vendor Gnosis Freight, whose container lifecycle management product is primarily aimed at beneficial cargo owners (BCOs). The two companies had worked in partnership over the last year in co-developing a payment portal for Hapag-Lloyd that the shipping line’s customers could use to pay invoices. The two will now co-sell the ability to use PayCargo’s extended payment capabilities to their respective customer bases: PayCargo to the 40,000 regular logistics service provider users of its platform, and Gnosis to its BCO customers. “It’s an opportunity for us to execute additional payments,” Del Riego said. <h3>Goal is to ‘go global’ </h3>The extended product also introduces accounts payable automation designed to let PayCargo’s customers manage more payments without increasing headcount. The automation pulls accrued amounts from the payer’s systems and matches it with the prospective invoiced amount from the shipping line or other payee, with the intent to eliminate errors before an invoice is issued. The AP automation was built as PayCargo realized it “had to bring something other than payment” to scale the business, Del Riego said. “The goal is broader relationships with existing customers and to go global.” He said 90% of PayCargo’s business is North America-based, but the company has designs on growing in Europe and Asia, with a 30-member team based out of Madrid to provide 24-hour customer service. The Hapag-Lloyd portal, meanwhile, is being rolled out globally, and Del Riego said “the goal is to have more customers like that. We follow where our customers want us to be.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com.</a></div>

Logistics payment software vendor PayCargo on Wednesday said it is broadening its reach to underpin a wider range of international transportation transactions. The company has traditionally focused on facilitating payments tied to cargo release from third-party logistics companies to ocean carriers, first as a pure payments transaction portal and then by established direct feeds with customers and shipping lines. The expansion announced Wednesday will see PayCargo enable payments in adjacent transactions, particularly around storage fees that accrue at various points in the lifecycle of a containerized shipment. PayCargo CEO Eduardo Del Riego told the Journal of Commerce the new capability has been co-developed with fellow software vendor Gnosis Freight, whose container lifecycle management product is primarily aimed at beneficial cargo owners (BCOs). The two companies had worked in partnership over the last year in co-developing a payment portal for Hapag-Lloyd that the shipping line’s customers could use to pay invoices. The two will now co-sell the ability to use PayCargo’s extended payment capabilities to their respective customer bases: PayCargo to the 40,000 regular logistics service provider users of its platform, and Gnosis to its BCO customers. “It’s an opportunity for us to execute additional payments,” Del Riego said. Goal is to ‘go global’ The extended product also introduces accounts payable automation designed to let PayCargo’s customers manage more payments without increasing headcount. The automation pulls accrued amounts from the payer’s systems and matches it with the prospective invoiced amount from the shipping line or other payee, with the intent to eliminate errors before an invoice is issued. The AP automation was built as PayCargo realized it “had to bring something other than payment” to scale the business, Del Riego said. “The goal is broader relationships with existing customers and to go global.” He said 90% of PayCargo’s business is North America-based, but the company has designs on growing in Europe and Asia, with a 30-member team based out of Madrid to provide 24-hour customer service. The Hapag-Lloyd portal, meanwhile, is being rolled out globally, and Del Riego said “the goal is to have more customers like that. We follow where our customers want us to be.” Contact Eric Johnson at eric.johnson@spglobal.com.

Logistics Technology News

Supply chain

PayCargo expanding footprint beyond ocean freight cargo release

<div class="phx-topic abstract-wrapper">The Metro Express Terminal at Pier S will serve smaller, independent container lines on the trans-Pacific that carry e-commerce merchandise requiring rapid movement once onshore.</div>

The Metro Express Terminal at Pier S will serve smaller, independent container lines on the trans-Pacific that carry e-commerce merchandise requiring rapid movement once onshore.

<div class="phx-topic">The new zero-emission container terminal planned for Pier S at the Port of Long Beach will be built to attract independent carriers operating express services geared for the trans-Pacific e-commerce market, according to developers of the project. <a href="https://www.joc.com/article/long-beach-considering-development-of-conventional-zero-emissions-terminal-ceo-6153068">The Metro Express Terminal at Pier S</a> is likely to pull in smaller container lines that operate vessels of 9,000-TEU capacity or less making faster turn-times than the mainline trans-Pacific carriers operating vessels of 15,000-TEU-plus capacity, said Peter Stone, senior vice president/strategic projects at Brookfield Properties. Express services carrying e-commerce merchandise require rapid movement of containers through marine terminals once they are discharged from vessels. “The nature of express services is not that the ships go faster. It’s that they get in and out of the terminal faster,” Stone told the Journal of Commerce Monday. The Pier S terminal will be designed for “regular” e-commerce merchandise that is sold online and shipped by retailers. The e-commerce market that will be served by Pier S is shipped in ocean containers under a speed-to-market model. “The carriers and [third-party logistics] companies we talked to are asking for this type of product,” Stone said. “They want a fast transfer from ship to warehouse.” Metro Express will not be adversely affected by the US eliminating the de minimis exemption on low-value and e-commerce imports, Stone said, because the goods that enjoyed the duty-free exemption — those valued at under $800 — were never shipped in ocean containers. All efforts now by the port and its partners in the Pier S project are geared toward finalizing the business deal and getting the necessary environmental approvals, said Noel Hacegaba, CEO of the Port of Long Beach. “Our next steps include finalizing the negotiation of the preferred assignment agreement, along with design, environmental review and outreach to our many stakeholders, including labor, community members and industry partners,” Hacegaba told the Journal of Commerce. <h3>Short timeline anticipated </h3>Stone said he does not have an answer yet as to how long it will take to finalize the business deals and secure the necessary environmental approvals, but he anticipates it will be rather seamless. The partners will build a conventional marine terminal, ship-to-shore cranes will be electric, and cargo-handling equipment will be zero-emission and manually operated by longshoremen. “This terminal is a very straightforward project and ready for construction,” he said. Hacegaba said Pier S is used now by other terminals for container peel-offs and temporary container storage. “No structures will need to be removed prior to construction,” he said. Given those conditions, once construction begins on the Metro Express Terminal, it should only take three to five years to complete, Stone said. Pier S will utilize about 105 acres of the 160-acre site, and the terminal will have an annual capacity of 1.8 million TEUs, he said. The eventual price tag, Stone added, will be known after the business negotiations are completed. There will be no need for on-dock rail on the terminal because containers will be moved by truck to local warehouses or off-dock transload facilities, said Bob Owens, CEO of Nautilus International Holding Corp., which is partnering with Brookfield on the project. Nautilus provides business administration, management, and strategic oversight for marine transportation companies. Plans are to operate Pier S around the clock in order to better utilize the International Longshore and Warehouse Union (ILWU) workforce. That will reduce container dwell times on the terminal, which in turn will enable the workforce to achieve container crane productivity that rivals terminals along the US Southeast coast, Owens said, adding it all fits in with what the e-commerce business model is built on. “The market is already there,” he said. “We’re just looking to serve that market.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The new zero-emission container terminal planned for Pier S at the Port of Long Beach will be built to attract independent carriers operating express services geared for the trans-Pacific e-commerce market, according to developers of the project. The Metro Express Terminal at Pier S is likely to pull in smaller container lines that operate vessels of 9,000-TEU capacity or less making faster turn-times than the mainline trans-Pacific carriers operating vessels of 15,000-TEU-plus capacity, said Peter Stone, senior vice president/strategic projects at Brookfield Properties. Express services carrying e-commerce merchandise require rapid movement of containers through marine terminals once they are discharged from vessels. “The nature of express services is not that the ships go faster. It’s that they get in and out of the terminal faster,” Stone told the Journal of Commerce Monday. The Pier S terminal will be designed for “regular” e-commerce merchandise that is sold online and shipped by retailers. The e-commerce market that will be served by Pier S is shipped in ocean containers under a speed-to-market model. “The carriers and [third-party logistics] companies we talked to are asking for this type of product,” Stone said. “They want a fast transfer from ship to warehouse.” Metro Express will not be adversely affected by the US eliminating the de minimis exemption on low-value and e-commerce imports, Stone said, because the goods that enjoyed the duty-free exemption — those valued at under $800 — were never shipped in ocean containers. All efforts now by the port and its partners in the Pier S project are geared toward finalizing the business deal and getting the necessary environmental approvals, said Noel Hacegaba, CEO of the Port of Long Beach. “Our next steps include finalizing the negotiation of the preferred assignment agreement, along with design, environmental review and outreach to our many stakeholders, including labor, community members and industry partners,” Hacegaba told the Journal of Commerce. Short timeline anticipated Stone said he does not have an answer yet as to how long it will take to finalize the business deals and secure the necessary environmental approvals, but he anticipates it will be rather seamless. The partners will build a conventional marine terminal, ship-to-shore cranes will be electric, and cargo-handling equipment will be zero-emission and manually operated by longshoremen. “This terminal is a very straightforward project and ready for construction,” he said. Hacegaba said Pier S is used now by other terminals for container peel-offs and temporary container storage. “No structures will need to be removed prior to construction,” he said. Given those conditions, once construction begins on the Metro Express Terminal, it should only take three to five years to complete, Stone said. Pier S will utilize about 105 acres of the 160-acre site, and the terminal will have an annual capacity of 1.8 million TEUs, he said. The eventual price tag, Stone added, will be known after the business negotiations are completed. There will be no need for on-dock rail on the terminal because containers will be moved by truck to local warehouses or off-dock transload facilities, said Bob Owens, CEO of Nautilus International Holding Corp., which is partnering with Brookfield on the project. Nautilus provides business administration, management, and strategic oversight for marine transportation companies. Plans are to operate Pier S around the clock in order to better utilize the International Longshore and Warehouse Union (ILWU) workforce. That will reduce container dwell times on the terminal, which in turn will enable the workforce to achieve container crane productivity that rivals terminals along the US Southeast coast, Owens said, adding it all fits in with what the e-commerce business model is built on. “The market is already there,” he said. “We’re just looking to serve that market.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

Trans-Pacific

North American ports

Marine terminals

New terminal planned for Long Beach designed to attract e-commerce business

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US rail networks recovering after weekend snowstorm, but delays persist

New Atlantic storm shuts West Mediterranean container hubs

Evergreen adds to order backlog with deals for 23 ships worth up to almost $1.5 billion