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<div class="phx-topic abstract-wrapper">The European Community and Comecon, the Soviet-led trading bloc, are edging toward agreement on dipl</div>

The European Community and Comecon, the Soviet-led trading bloc, are edging toward agreement on dipl

<div>The European Community and Comecon, the Soviet-led trading bloc, are edging toward agreement on diplomatic recognition that could open the door to closer economic ties between the two organizations.Officials from the EC and Comecon on Wednesday began two days of informal talks here aimed at removing the remaining obstacles to an agreement that will end a 30-year standoff between the two blocs.Hopes of a breakthrough after two years of negotiations were raised Monday by Martin Bangemann, West Germany's economics minister. After a meeting with Soviet leader Mikhail Gorbachev in Moscow, Mr. Bangemann said that a deal could be clinched by...

The European Community and Comecon, the Soviet-led trading bloc, are edging toward agreement on diplomatic recognition that could open the door to closer economic ties between the two organizations. Officials from the EC and Comecon on Wednesday began two days of informal talks here aimed at removing the remaining obstacles to an agreement that will end a 30-year standoff between the two blocs.Hopes of a breakthrough after two years of negotiations were raised Monday by Martin Bangemann, West Germany's economics minister. After a meeting with Soviet leader Mikhail Gorbachev in Moscow, Mr. Bangemann said that a deal could be clinched by the end of June. EC officials are less optimistic, saying several difficulties stand in the way of an agreement being signed in the near future. Moscow itself appears to have lingering doubts about the status of the EC. Gennady Gerasimov, spokesman for the Soviet Foreign Ministry, warned Austria on Tuesday that its status as a neutral state would be compromised if it attempted to join the EC, which he said was becoming a military-political organization. Major Sticking Point The major sticking point in this intra-European detente has been the status of West Berlin as part of the European Community. That reportedly has been resolved. The EC has always inserted the so-called Berlin clause into all its agreements to ensure that the city is recognized as part of the community. Comecon previously has refused to accept this, but now has agreed in principle on a deal that would recognize territories in each other's treaties of organization. East Germany itself accepted the inclusion of the Berlin Clause in a trade agreement in November 1987, in agreeing to an arrangement on sheep meat. While mutual recognition would mark an important step forward in relations between the two blocs, few observers expect a significant commercial spinoff from what is essentially a political agreement. Moscow has shunned the EC since its creation in 1957. But this has not stopped the Soviet Union and its Comecon allies from doing business with individual EC member states. And in spite of its continuing reservations, Moscow is keen to establish closer ties that would go well beyond diplomatic relations. EC Interest Lukewarm While Comecon requested this week's talks, EC officials do not consider cementing ties with the East to be as important an issue. Most of the EC's energies are devoted to creating a barrier-free market within its 12 member states by the 1992 deadline. The EC's trade with Comecon is relatively small, unexciting and shrinking. Comecon accounts for under 7 percent of the EC total trade compared with more than 25 percent for members of the European Free Trade Association, which consists of Switzerland, Scandinavia and other neutral European states. Comecon's wooing of the EC reflects its desire to latch onto a trade bloc, which, despite its problems, is moving fast toward real integration and is stretching its economic and technological lead over the socialist countries. The Soviet Union and its allies view closer links with the capitalist club as way of boosting access to Western technology and know-how. Brussels has taken a tough line in bilateral negotiations with individual Comecon members when discussing the possible lifting of more than 2,000 EC export quotas on Comecon products. West Germany Enthusiastic West Germany is the most active and enthusiastic supporter of closer political and commercial ties between the EC and Comecon for obvious geographical, political and economic reasons. West German businessmen and politicians, unlike many of their counterparts in the other EC countries, believe that Western Europe's long-term interests are best served by helping to modernize the laggard economies of Eastern Europe. West Germany is the Soviet Union's leading trade partner in the West. That relationship was strengthened last week when a consortium of German banks agreed to provide Moscow with credits worth up to $1.8 billion.

EC, COMECON NEAR ACCORD ON RECOGNITION

<div class="phx-topic abstract-wrapper">The Indian government has been wooing global shipping and logistics conglomerates to invest beyond port-to-port shipping operations in the country through liberalized policy and tax frameworks. </div>

The Indian government has been wooing global shipping and logistics conglomerates to invest beyond port-to-port shipping operations in the country through liberalized policy and tax frameworks.

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<div class="phx-topic">Ocean carrier heavyweights are increasingly betting on India as an alternative maritime hub as they face ongoing supply chain challenges linked to geopolitical tensions. Maersk has now diversified its business interests in India by reflagging two of its short-haul container ships to the local registry — the 1,810-TEU Maersk Vilnius and the 1,740-TEU Maersk Vigo, both built in 2010. They were previously registered in Singapore. “India is a critical growth market for Maersk, driven by robust economic fundamentals, expanding container trade and significant policy reforms in the maritime sector,” a company spokesperson told the Journal of Commerce. “As part of our continued commitment to strengthening our presence in India, we have registered two of our vessels under the Indian flag.” The Maersk spokesperson also said the carrier will continue to use the flags of Denmark, Singapore and Hong Kong for its fleets. The two reflagged vessels are said to be part of Maersk’s regional networks covering Asian trades. That reflagging move builds on a shipbuilding/repair partnership program Maersk set up with India’s Cochin Shipyard in early 2025. French liner CMA CGM has already reflagged four box ships to the Indian registry and <a href="https://www.joc.com/article/cma-cgm-signs-350-million-indian-shipbuilding-order-for-six-box-ships-6097779">signed a firm shipbuilding contract with Cochin Shipyard</a> for six feeder vessels to be delivered between 2029 and 2031. <h3>Government woos carriers </h3>The Indian government has been wooing global shipping and logistics conglomerates to invest beyond port-to-port shipping operations in the country through liberalized policy and tax frameworks. “India’s renewed focus on shipbuilding/recycling, which is encouraging to note, is prompting the container lines to consider building and/or registering ships in India,” Sunil Vaswani, executive director of the Container Shipping Lines Association (India), told the Journal of Commerce. “India’s emergence as an alternative marketplace is indeed a welcome step for the industry.” That diversification, while being portrayed as a new strategic approach, signals other regulatory pressures, industry sources believe. <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Findia-regulators-seek-vsa-trade-off-for-local-carriers-and-alliances-5742524&amp;data=05%7C02%7Civan.klos%40spglobal.com%7C5df43bbc6f5c44a193b008de162d46ca%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C638972580902059458%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=mIynqQGNqtwhesUdqzkayedKpyrUCclY6QLpr7jL8ZY%3D&amp;reserved=0">India’s competition authority recently noted</a> that any further immunity from antitrust laws for vessel-sharing agreements (VSAs) would be subject to carrier groupings allocating 5% of the total declared space to both Indian-flagged vessels and local non-vessel operating common carriers (NVOCCs). “It’s apparent that the inducements alone, though significant, would not have brought foreign fleet owners flocking to register their ships in India,” said a Mumbai-based industry observer who did not want to be identified. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Ocean carrier heavyweights are increasingly betting on India as an alternative maritime hub as they face ongoing supply chain challenges linked to geopolitical tensions. Maersk has now diversified its business interests in India by reflagging two of its short-haul container ships to the local registry — the 1,810-TEU Maersk Vilnius and the 1,740-TEU Maersk Vigo, both built in 2010. They were previously registered in Singapore. “India is a critical growth market for Maersk, driven by robust economic fundamentals, expanding container trade and significant policy reforms in the maritime sector,” a company spokesperson told the Journal of Commerce. “As part of our continued commitment to strengthening our presence in India, we have registered two of our vessels under the Indian flag.” The Maersk spokesperson also said the carrier will continue to use the flags of Denmark, Singapore and Hong Kong for its fleets. The two reflagged vessels are said to be part of Maersk’s regional networks covering Asian trades. That reflagging move builds on a shipbuilding/repair partnership program Maersk set up with India’s Cochin Shipyard in early 2025. French liner CMA CGM has already reflagged four box ships to the Indian registry and signed a firm shipbuilding contract with Cochin Shipyard for six feeder vessels to be delivered between 2029 and 2031. Government woos carriers The Indian government has been wooing global shipping and logistics conglomerates to invest beyond port-to-port shipping operations in the country through liberalized policy and tax frameworks. “India’s renewed focus on shipbuilding/recycling, which is encouraging to note, is prompting the container lines to consider building and/or registering ships in India,” Sunil Vaswani, executive director of the Container Shipping Lines Association (India), told the Journal of Commerce. “India’s emergence as an alternative marketplace is indeed a welcome step for the industry.” That diversification, while being portrayed as a new strategic approach, signals other regulatory pressures, industry sources believe. India’s competition authority recently noted that any further immunity from antitrust laws for vessel-sharing agreements (VSAs) would be subject to carrier groupings allocating 5% of the total declared space to both Indian-flagged vessels and local non-vessel operating common carriers (NVOCCs). “It’s apparent that the inducements alone, though significant, would not have brought foreign fleet owners flocking to register their ships in India,” said a Mumbai-based industry observer who did not want to be identified. Contact Bency Mathew at bencyvmathew@gmail.com .

Maersk joins CMA CGM in reflagging container ships in India amid antitrust pressure

<div class="phx-topic abstract-wrapper">Growth in spot refrigerated (reefer) truck pricing is accelerating, especially for loads originating in Florida and Mexico, amid tougher licensing and immigration enforcement. </div>

Growth in spot refrigerated (reefer) truck pricing is accelerating, especially for loads originating in Florida and Mexico, amid tougher licensing and immigration enforcement.

<div class="phx-topic">An emerging supply-demand imbalance in refrigerated (reefer) trucking is pushing more freight to the spot market and increasing upward pressure on short-term rates as the peak trucking season begins. Dual <a href="https://www.joc.com/article/industry-group-calls-for-tougher-licensing-better-training-amid-trucker-crackdown-6101323">crackdowns on immigration and licensing</a> may be tipping a scale already depressed by low demand, trucking and logistics executives told the Journal of Commerce. Average US reefer truckload spot rates, including fuel surcharges, reached $2.47 per mile in the week of Oct. 19, up 10 cents from the week of Sept. 14 and 12 cents from the same week last year, according to DAT Freight &amp; Analytics. Last year, average reefer truckload rates of $2.35 per mile in mid-October were up approximately 1 cent from September 2024 and down 5 cents from October 2023 levels. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="d47d3a93-a025-4227-b19e-443d2719ea1e"></dynamic-object></div>Spot reefer rates are rising at a faster pace — and earlier than usual — from produce markets such as South and Central Florida and along the US-Mexico border, said Dean Croke, principal analyst at DAT. Demand may be rising for certain food and grocery shipments ahead of the US Thanksgiving holiday, but tractor and driver supply is shrinking faster. “I suspect what we’re about to see in the refrigerated trucking market is a significant exodus of capacity,” Croke said in an interview Monday. Reefer shipments posted on DAT load boards increased 9% sequentially last week, while trucks posted dropped 6%. “I’m not sure if it’s an exit or a diversion of capacity, or if it’s temporary or permanent, [but] we’re starting to see pockets of capacity tightness,” he added. Those “pockets” do not represent the entire US refrigerated market, however, and they may, or may not, be a precursor of future trends. “Some people will be exuberant and say the market is flipping, but it may be a blip as we head into peak season,” Croke said.Data from Truckstop.com and FTR Transportation Intelligence for the week ending October 24 show a stable spot market that tracked seasonal expectations. Refrigerated spot rates have risen four straight weeks, according to Truckstop.com, but the size of those increases has fallen steadily. ITS Logistics, a Reno, Nevada-based third-party logistics company, has noted a slight drop in truck capacity that it attributes to drivers shunning certain lanes to avoid enforcement. “When you have fewer drivers making those long hauls, it takes capacity out of the market,” said Paul Brashier, vice president of global supply chain. “It’s like an extended Roadcheck week situation,” he said, referring to the annual truck regulatory enforcement blitz organized by the Commercial Vehicle Safety Alliance. The national event typically sees capacity tighten as truck drivers take time off. <h3>Northbound and down </h3>One of the hot spots is Central and South Florida, always a tough market for backhauls because of the imbalance in southbound consumer shipments and northbound freight. Shippers are having a tougher time finding capacity for refrigerated loads from Lakeland, Florida, the largest refrigerated freight market in Florida, Croke said. Spot reefer load posts in Lakeland jumped 28% from the previous week in the week ending Oct. 19. Average outbound spot reefer rates from Lakeland have risen by 10 cents per mile in recent weeks. In the lane linking Lakeland with Atlanta, for example, the average spot rate rose from $1.58 per mile to $1.67 per mile from September through Oct. 28, according to DAT. Shippers are turning to the spot market as their regular trucking providers come up short on capacity, Croke said. He attributes the growing imbalance to licensing and immigration enforcement at truck weight and agricultural stations along Florida highways. Croke sees similar conditions in the McAllen, Texas, refrigerated market, a major border crossing point for produce from Mexico. Spot reefer loads posted in the McAllen area rose 37% sequentially last week and 42% over the past month, according to DAT. Outbound reefer spot rates from McAllen rose 7 cents last week to $2.03 per mile, 14 cents higher than a year ago. The increase was sharper in some long-haul lanes. As of Monday, the average spot reefer rate from McAllen to Fresno, California, shot up from $1.36 per mile in September to $1.71 per mile in the last seven days. Rates from McAllen to Los Angeles jumped from $1.48 per mile in September to $1.87 per mile in the last three days. Fewer drivers from California are making the long-haul to southern Texas, Croke said, which means fewer drivers available to haul loads back to California from McAllen. “Those drivers are reluctant to run to the border for fear of arrest or just fear of delay,” said Croke. A truck inspection lasting hours can throw off a driver’s delivery schedule, sometimes costing an entire leg of a multi-day trip, he said. “Carriers will say they can’t afford to lose that, and they’ll stay home or drive locally.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

An emerging supply-demand imbalance in refrigerated (reefer) trucking is pushing more freight to the spot market and increasing upward pressure on short-term rates as the peak trucking season begins. Dual crackdowns on immigration and licensing may be tipping a scale already depressed by low demand, trucking and logistics executives told the Journal of Commerce. Average US reefer truckload spot rates, including fuel surcharges, reached $2.47 per mile in the week of Oct. 19, up 10 cents from the week of Sept. 14 and 12 cents from the same week last year, according to DAT Freight & Analytics. Last year, average reefer truckload rates of $2.35 per mile in mid-October were up approximately 1 cent from September 2024 and down 5 cents from October 2023 levels. Spot reefer rates are rising at a faster pace — and earlier than usual — from produce markets such as South and Central Florida and along the US-Mexico border, said Dean Croke, principal analyst at DAT. Demand may be rising for certain food and grocery shipments ahead of the US Thanksgiving holiday, but tractor and driver supply is shrinking faster. “I suspect what we’re about to see in the refrigerated trucking market is a significant exodus of capacity,” Croke said in an interview Monday. Reefer shipments posted on DAT load boards increased 9% sequentially last week, while trucks posted dropped 6%. “I’m not sure if it’s an exit or a diversion of capacity, or if it’s temporary or permanent, [but] we’re starting to see pockets of capacity tightness,” he added. Those “pockets” do not represent the entire US refrigerated market, however, and they may, or may not, be a precursor of future trends. “Some people will be exuberant and say the market is flipping, but it may be a blip as we head into peak season,” Croke said. Data from Truckstop.com and FTR Transportation Intelligence for the week ending October 24 show a stable spot market that tracked seasonal expectations. Refrigerated spot rates have risen four straight weeks, according to Truckstop.com, but the size of those increases has fallen steadily. ITS Logistics, a Reno, Nevada-based third-party logistics company, has noted a slight drop in truck capacity that it attributes to drivers shunning certain lanes to avoid enforcement. “When you have fewer drivers making those long hauls, it takes capacity out of the market,” said Paul Brashier, vice president of global supply chain. “It’s like an extended Roadcheck week situation,” he said, referring to the annual truck regulatory enforcement blitz organized by the Commercial Vehicle Safety Alliance. The national event typically sees capacity tighten as truck drivers take time off. Northbound and down One of the hot spots is Central and South Florida, always a tough market for backhauls because of the imbalance in southbound consumer shipments and northbound freight. Shippers are having a tougher time finding capacity for refrigerated loads from Lakeland, Florida, the largest refrigerated freight market in Florida, Croke said. Spot reefer load posts in Lakeland jumped 28% from the previous week in the week ending Oct. 19. Average outbound spot reefer rates from Lakeland have risen by 10 cents per mile in recent weeks. In the lane linking Lakeland with Atlanta, for example, the average spot rate rose from $1.58 per mile to $1.67 per mile from September through Oct. 28, according to DAT. Shippers are turning to the spot market as their regular trucking providers come up short on capacity, Croke said. He attributes the growing imbalance to licensing and immigration enforcement at truck weight and agricultural stations along Florida highways. Croke sees similar conditions in the McAllen, Texas, refrigerated market, a major border crossing point for produce from Mexico. Spot reefer loads posted in the McAllen area rose 37% sequentially last week and 42% over the past month, according to DAT. Outbound reefer spot rates from McAllen rose 7 cents last week to $2.03 per mile, 14 cents higher than a year ago. The increase was sharper in some long-haul lanes. As of Monday, the average spot reefer rate from McAllen to Fresno, California, shot up from $1.36 per mile in September to $1.71 per mile in the last seven days. Rates from McAllen to Los Angeles jumped from $1.48 per mile in September to $1.87 per mile in the last three days. Fewer drivers from California are making the long-haul to southern Texas, Croke said, which means fewer drivers available to haul loads back to California from McAllen. “Those drivers are reluctant to run to the border for fear of arrest or just fear of delay,” said Croke. A truck inspection lasting hours can throw off a driver’s delivery schedule, sometimes costing an entire leg of a multi-day trip, he said. “Carriers will say they can’t afford to lose that, and they’ll stay home or drive locally.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Shrinking capacity pushing up US reefer truck rates

<div class="phx-topic abstract-wrapper">US soybean exporters say the Trump administration’s financial bailout of Argentina is “facilitating” that country’s growing threat as a competitor to US growers. </div>

US soybean exporters say the Trump administration’s financial bailout of Argentina is “facilitating” that country’s growing threat as a competitor to US growers.

<div class="phx-topic">US soybean shippers are encouraged that US-China trade talks may reopen access to their largest market, but they say a deal won’t stop increased competition from exporters in Argentina aided by a planned US bailout of the Argentine peso. While most soybeans move via bulk vessels, the approximately 50,000 TEUs of containerized soybeans exported to China annually provide needed backhaul cargo for carriers. China’s tariffs of 34% on US soybeans virtually killed shipments to China so far this year — through September, US containerized soybean exports totaled just 5,134 TEUs, down 89% from the first nine months of 2024, according to PIERS, a Journal of Commerce sister product within S&amp;P Global — but a thaw might be in the works. Treasury Secretary Scott Bessent, who is a soybean farmer, said Sunday he anticipates China will now make “substantial” purchases of US soybeans following the administration’s announcement of a trade truce with Beijing. However, the US and China have yet to work out the details of potential tariffs. Whatever the outcome, agriculture shippers fear US exports will be further threatened by the emergence of Argentina as a competitor in the Chinese market. “China already purchases a lot of soybeans from Argentina,” Mike Steenhoek, executive director of the Soy Transportation Coalition, told the Journal of Commerce Friday. “US exporters say the US is now facilitating Argentina to be a bigger exporter.” Steenhoek was referring to the administration’s plan to bail out Argentina’s currency, along with the September announcement by Argentina President Javier Milei that he was suspending the country’s 26% tax on exports of grains. Because farmers harvest their soybean crops in the fall, the fourth quarter is normally the busiest time of the year for exports. But according to weekly sales data from the US Department of Agriulture Foreign Agriculture Service, the US has sold zero soybeans to China since Sept. 9. Soybean exports from Brazil normally fall off in the fourth quarter, Steenhoek noted, which in past years opened the door for US growers. “The US should be the supplier that steps in now, but not this time,” Steenhoek said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. Michael Angell, Senior Editor, East Coast ports, contributed to this story. </div>

US soybean shippers are encouraged that US-China trade talks may reopen access to their largest market, but they say a deal won’t stop increased competition from exporters in Argentina aided by a planned US bailout of the Argentine peso. While most soybeans move via bulk vessels, the approximately 50,000 TEUs of containerized soybeans exported to China annually provide needed backhaul cargo for carriers. China’s tariffs of 34% on US soybeans virtually killed shipments to China so far this year — through September, US containerized soybean exports totaled just 5,134 TEUs, down 89% from the first nine months of 2024, according to PIERS, a Journal of Commerce sister product within S&P Global — but a thaw might be in the works. Treasury Secretary Scott Bessent, who is a soybean farmer, said Sunday he anticipates China will now make “substantial” purchases of US soybeans following the administration’s announcement of a trade truce with Beijing. However, the US and China have yet to work out the details of potential tariffs. Whatever the outcome, agriculture shippers fear US exports will be further threatened by the emergence of Argentina as a competitor in the Chinese market. “China already purchases a lot of soybeans from Argentina,” Mike Steenhoek, executive director of the Soy Transportation Coalition, told the Journal of Commerce Friday. “US exporters say the US is now facilitating Argentina to be a bigger exporter.” Steenhoek was referring to the administration’s plan to bail out Argentina’s currency, along with the September announcement by Argentina President Javier Milei that he was suspending the country’s 26% tax on exports of grains. Because farmers harvest their soybean crops in the fall, the fourth quarter is normally the busiest time of the year for exports. But according to weekly sales data from the US Department of Agriulture Foreign Agriculture Service, the US has sold zero soybeans to China since Sept. 9. Soybean exports from Brazil normally fall off in the fourth quarter, Steenhoek noted, which in past years opened the door for US growers. “The US should be the supplier that steps in now, but not this time,” Steenhoek said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com . Michael Angell, Senior Editor, East Coast ports, contributed to this story.

China trade talks give US soybean exporters hope

<div class="phx-topic abstract-wrapper">With other low-emissions bunkers such as methanol still in short supply, vessel operators are turning to dual-fuel LNG container ships as a transitional step toward a zero-carbon future by 2050. </div>

With other low-emissions bunkers such as methanol still in short supply, vessel operators are turning to dual-fuel LNG container ships as a transitional step toward a zero-carbon future by 2050.

<div class="phx-topic">With the global shipping decarbonization agenda brought to an abrupt halt at the International Maritime Organization (IMO) in mid-October, an emerging reality is taking hold: LNG is becoming the go-to alternative fuel of choice for container lines. Increasingly, carriers are committing to LNG-fueled container ships over other alternative fuels such as methanol, seeing LNG as a viable and easily malleable step toward a zero-carbon future by 2050, as enshrined in current IMO policy. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6104141_0.1.jpg"></img></div>The number of LNG-fueled container ships on order has grown from 194 in late 2023 to 362 as of mid-October, according to S&amp;P Global Market Intelligence. What’s more, the percentage of vessels on order capable of running on LNG has grown to 40% from 23% during the same period, while the percentage of methanol-powered ships was unchanged at 15%. The 218 LNG container ships currently in operation represent 3.5% of the global container ship fleet. S&amp;P Global is the parent company of the Journal of Commerce. A senior carrier executive who asked not to be identified noted that even before the IMO <a href="https://www.joc.com/article/delay-in-imo-decarbonization-plans-robs-green-fuel-investors-of-certainty-6101250">punted on its net-zero framework</a>, LNG had already become the “mainstream marine fuel” for new vessel orders. “We could see [LNG] becoming even more significant in the current environment, because well-to-tank data is improving, methane slip will be dealt with and we see fossil but also bio and synthetic as pathways for LNG,” the executive added. Using LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress toward decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it pivoted from methanol to LNG for its next round of 50 to 60 vessels. And crucially, all LNG container ships in operation and on order have dual-fuel engines, meaning they can burn either LNG or traditional bunkers. That gives carriers a high degree of flexibility in terms of which fuel a ship actually uses at any given time. Depending on price and availability, carriers can operate using LNG or traditional bunkers or a combination, something vessel operations executives say is already happening. Estimates of the amount of LNG used vary widely; some sources that spoke with the Journal of Commerce said LNG-capable ships only burn LNG 5% to 10% of the time, while others say it's closer to 50%. In other words, not only is LNG itself a transitional fuel, but LNG ships are being used as a transitional solution. Being the most consumer-facing maritime sector, container lines have long felt a need to be at the forefront of decarbonization. Through the World Shipping Council (WSC), they supported the IMO <a href="https://www.imo.org/en/mediacentre/hottopics/pages/faqs-the-imo-net-zero-framework.aspx">Net-Zero Framework</a> that was postponed for at least a year following strident opposition from the US. Patrick Verhoven, managing director of the International Association of Ports and Harbors, described the delay as a “major setback for the maritime industry.” Dual-fuel container ship and vehicle carrier orders account for 79% of the current order book, compared with 14% for the rest of the fleet, including tankers and bulk carriers, according to the WSC. With the order book dominated by the major carriers, given actual environmental regulation — in the case of the EU — and possible future requirements from the IMO, their effort to secure LNG tonnage at scale raises the bar for new entrants and smaller carriers looking to scale. LNG is more widely available than other alternative fuels such as methanol and, at least currently, is about 25% more expensive than very low-sulfur fuel oil. That, plus the ability to limit use of LNG, means carriers aren’t forced to charge customers a premium, which would undermine their competitiveness. In addition, solutions are being developed to mitigate methane emissions, which are 80 times worse for the environment than carbon dioxide, from LNG power plants. For example, a consortium including Mitsui O.S.K. Lines last year said it achieved a 93.8% reduction of methane slip from LNG-fueled vessels through catalyst and engine improvements. Still, LNG ships come with their own operational issues. The LNG tank must be cooled to -162 degrees C (-260 degrees F), and a minimum quantity must always be kept inside; otherwise, the fuel can’t be bunkered until re-cooled. Re-cooling, in turn, requires the ship to be idled for three days, with costs that can run into the hundreds of thousands of dollars, said Nils Roche, CEO of Solvens Advisory and former deputy general manager for operations at PIL. As a result, ship operators frequently use traditional bunkers as their primary fuel and LNG only at selected times. If the LNG is not used for propulsion, it’s used to run auxiliary engines that create power for electricity and air conditioning onboard the ship. Roche said restrictive contracts with LNG suppliers also complicated matters. Fuel suppliers require one month’s notice to bunker a ship with LNG, compared with just two days’ notice for conventional marine fuel, cancellation fees can run into the millions, and ships typically only have a two-to-three-day window for bunkering. “If you are not available at that point, they will go to someone else,” he said. “And you just pray that somebody else in another couple of days will not make it, and you can take their slot.” Price is naturally a big consideration. Carriers will sometimes avoid LNG bunkering to the extent possible during December, January and February, due to higher winter prices. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

With the global shipping decarbonization agenda brought to an abrupt halt at the International Maritime Organization (IMO) in mid-October, an emerging reality is taking hold: LNG is becoming the go-to alternative fuel of choice for container lines. Increasingly, carriers are committing to LNG-fueled container ships over other alternative fuels such as methanol, seeing LNG as a viable and easily malleable step toward a zero-carbon future by 2050, as enshrined in current IMO policy. The number of LNG-fueled container ships on order has grown from 194 in late 2023 to 362 as of mid-October, according to S&P Global Market Intelligence. What’s more, the percentage of vessels on order capable of running on LNG has grown to 40% from 23% during the same period, while the percentage of methanol-powered ships was unchanged at 15%. The 218 LNG container ships currently in operation represent 3.5% of the global container ship fleet. S&P Global is the parent company of the Journal of Commerce. A senior carrier executive who asked not to be identified noted that even before the IMO punted on its net-zero framework , LNG had already become the “mainstream marine fuel” for new vessel orders. “We could see [LNG] becoming even more significant in the current environment, because well-to-tank data is improving, methane slip will be dealt with and we see fossil but also bio and synthetic as pathways for LNG,” the executive added. Using LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress toward decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it pivoted from methanol to LNG for its next round of 50 to 60 vessels. And crucially, all LNG container ships in operation and on order have dual-fuel engines, meaning they can burn either LNG or traditional bunkers. That gives carriers a high degree of flexibility in terms of which fuel a ship actually uses at any given time. Depending on price and availability, carriers can operate using LNG or traditional bunkers or a combination, something vessel operations executives say is already happening. Estimates of the amount of LNG used vary widely; some sources that spoke with the Journal of Commerce said LNG-capable ships only burn LNG 5% to 10% of the time, while others say it's closer to 50%. In other words, not only is LNG itself a transitional fuel, but LNG ships are being used as a transitional solution. Being the most consumer-facing maritime sector, container lines have long felt a need to be at the forefront of decarbonization. Through the World Shipping Council (WSC), they supported the IMO Net-Zero Framework that was postponed for at least a year following strident opposition from the US. Patrick Verhoven, managing director of the International Association of Ports and Harbors, described the delay as a “major setback for the maritime industry.” Dual-fuel container ship and vehicle carrier orders account for 79% of the current order book, compared with 14% for the rest of the fleet, including tankers and bulk carriers, according to the WSC. With the order book dominated by the major carriers, given actual environmental regulation — in the case of the EU — and possible future requirements from the IMO, their effort to secure LNG tonnage at scale raises the bar for new entrants and smaller carriers looking to scale. LNG is more widely available than other alternative fuels such as methanol and, at least currently, is about 25% more expensive than very low-sulfur fuel oil. That, plus the ability to limit use of LNG, means carriers aren’t forced to charge customers a premium, which would undermine their competitiveness. In addition, solutions are being developed to mitigate methane emissions, which are 80 times worse for the environment than carbon dioxide, from LNG power plants. For example, a consortium including Mitsui O.S.K. Lines last year said it achieved a 93.8% reduction of methane slip from LNG-fueled vessels through catalyst and engine improvements. Still, LNG ships come with their own operational issues. The LNG tank must be cooled to -162 degrees C (-260 degrees F), and a minimum quantity must always be kept inside; otherwise, the fuel can’t be bunkered until re-cooled. Re-cooling, in turn, requires the ship to be idled for three days, with costs that can run into the hundreds of thousands of dollars, said Nils Roche, CEO of Solvens Advisory and former deputy general manager for operations at PIL. As a result, ship operators frequently use traditional bunkers as their primary fuel and LNG only at selected times. If the LNG is not used for propulsion, it’s used to run auxiliary engines that create power for electricity and air conditioning onboard the ship. Roche said restrictive contracts with LNG suppliers also complicated matters. Fuel suppliers require one month’s notice to bunker a ship with LNG, compared with just two days’ notice for conventional marine fuel, cancellation fees can run into the millions, and ships typically only have a two-to-three-day window for bunkering. “If you are not available at that point, they will go to someone else,” he said. “And you just pray that somebody else in another couple of days will not make it, and you can take their slot.” Price is naturally a big consideration. Carriers will sometimes avoid LNG bunkering to the extent possible during December, January and February, due to higher winter prices. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

LNG increasingly alternative fuel of choice for container lines

<div class="phx-topic abstract-wrapper">Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope.</div>

Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope.

<div class="phx-topic">Multipurpose vessel (MPV) operators are facing worsening port congestion and longer berthing times, leading carriers to adopt a raft of measures including calling at alternative ports and using digital tools, maritime executives say. Among the worst hit ports is Houston, where the average wait for MPVs increased six-fold to 42 days in August from seven days in August 2024, according to Esgian, an Oslo-based software and data platform that monitors the MPV and roll-on/roll-off sectors. In Rotterdam, anchorage wait times have tripled, said Esgian. Norwegian MPV operator G2 Ocean also highlighted lengthy delays at some Middle Eastern ports, with MPV vessels waiting between 25 and 30 days, and in South America, with vessels waiting up to 15 days. Saudi Arabia has been especially affected by congestion-related delays, G2 Ocean said. Edwin Peh, G2 Ocean’s project cargo director for the Pacific and global capital projects, said congestion is occurring in several regions “with persistent delays at key terminals and vessels waiting days or even weeks for berth access.” Peh said Los Angeles and Long Beach are among the US West Coast ports affected by long waiting times that have impacted MPV operators. By comparison, other ports — including Benicia, north of Oakland — have seen an increase in port calls “suggesting operators are diversifying and spreading calls more evenly,” according to Esgian. “Congestion has clearly worsened over the past few months — particularly at major hubs like Rotterdam,” Gustav Heiberg, Esgian’s senior vice president and head of shipping, told the Journal of Commerce. “Earlier this year [in Rotterdam], we recorded 34 days of cumulative anchorage time across 33 events,” Heiberg said. “By August, that figure had risen to 99 days across 45 events.” Events include bad weather, labor disruptions, and high landside utilization. “We’re seeing operators adapt in several ways to manage congestion and maintain reliability,” he added. “Many are spreading cargo volumes across multiple ports, while others are adjusting project timelines or shipment sequencing to align with available capacity.” <h3>Volumes rise due to industrial, energy projects </h3>Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope. Not only have these projects led to an increase in ship movements, but the intense cargo handling requirements of bulky and heavy shipments is straining port and inland infrastructure, especially where breakbulk handling capacity and experience are limited, G2 Ocean’s Peh said. Breakbulk cargoes take longer to unload and require skilled handling compared with containerized freight. “With the increased cargo demand, dockworkers are drawn to ports near major project sites, creating labor shortages at other ports, resulting in slower operations and increased congestion,” Peh said. Highlighting the surge in Rotterdam, Heiberg said it is one of the busiest ports for MPV operations, handling an average of about 224 calls per month. “The majority of these — about 78% so far this year — are short-sea operations linked to project-related cargo such as offshore wind foundations, steel pipes for the Porthos carbon storage project, and steel plates for the offshore industry,” Heiberg said. He noted that factors such as low water levels on the River Rhine and US import duties on European and Chinese exports haven’t yet had a measurable impact on MPV traffic in the first half of this year. “That reinforces the view that current congestion is largely driven by port and landside operational factors, rather than macro trade shifts, even as vessel calls and project cargo deliveries continue to rise,” Heiberg said. Executives from other operators including AAL Shipping and dship Carriers, which is part of the deugro group, highlighted growing congestion as a significant challenge. “It’s hard to perform and meet the requirements of clients because of congestion,” Henrik Hansen, AAL Shipping’s general manager for the Americas, said at the recent Breakbulk Americas conference. “We want the ships to move — that’s how carriers make money.” <h3>Alternative ports </h3>G2 Ocean is among the carriers using digital tools to monitor port conditions in real time and switch to alternative ports, Peh said. “This provides the flexibility to bypass the most congested ports,” he said. “This approach helps ensure that our customers’ cargo keeps moving, even when faced with challenging port environments.” But there’s a potential downside to seeking alternative ports, including longer transit times or additional administrative requirements, Peh added. “Congestion can also influence the way breakbulk/project cargoes are transported, leading shippers to explore alternative transportation methods such as multimodal solutions to avoid port congestion,” he said. Some carriers have also developed strategic partnerships with shore-side assets such as local port agents and port operators to coordinate arrivals, thereby reducing waiting times and ensuring improved access to berths, executives said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Multipurpose vessel (MPV) operators are facing worsening port congestion and longer berthing times, leading carriers to adopt a raft of measures including calling at alternative ports and using digital tools, maritime executives say. Among the worst hit ports is Houston, where the average wait for MPVs increased six-fold to 42 days in August from seven days in August 2024, according to Esgian, an Oslo-based software and data platform that monitors the MPV and roll-on/roll-off sectors. In Rotterdam, anchorage wait times have tripled, said Esgian. Norwegian MPV operator G2 Ocean also highlighted lengthy delays at some Middle Eastern ports, with MPV vessels waiting between 25 and 30 days, and in South America, with vessels waiting up to 15 days. Saudi Arabia has been especially affected by congestion-related delays, G2 Ocean said. Edwin Peh, G2 Ocean’s project cargo director for the Pacific and global capital projects, said congestion is occurring in several regions “with persistent delays at key terminals and vessels waiting days or even weeks for berth access.” Peh said Los Angeles and Long Beach are among the US West Coast ports affected by long waiting times that have impacted MPV operators. By comparison, other ports — including Benicia, north of Oakland — have seen an increase in port calls “suggesting operators are diversifying and spreading calls more evenly,” according to Esgian. “Congestion has clearly worsened over the past few months — particularly at major hubs like Rotterdam,” Gustav Heiberg, Esgian’s senior vice president and head of shipping, told the Journal of Commerce. “Earlier this year [in Rotterdam], we recorded 34 days of cumulative anchorage time across 33 events,” Heiberg said. “By August, that figure had risen to 99 days across 45 events.” Events include bad weather, labor disruptions, and high landside utilization. “We’re seeing operators adapt in several ways to manage congestion and maintain reliability,” he added. “Many are spreading cargo volumes across multiple ports, while others are adjusting project timelines or shipment sequencing to align with available capacity.” Volumes rise due to industrial, energy projects Congestion at Rotterdam and other North European ports such as Hamburg has been exacerbated by the increase in breakbulk and project cargo volumes from industrial and energy projects, which leaves ports struggling to cope. Not only have these projects led to an increase in ship movements, but the intense cargo handling requirements of bulky and heavy shipments is straining port and inland infrastructure, especially where breakbulk handling capacity and experience are limited, G2 Ocean’s Peh said. Breakbulk cargoes take longer to unload and require skilled handling compared with containerized freight. “With the increased cargo demand, dockworkers are drawn to ports near major project sites, creating labor shortages at other ports, resulting in slower operations and increased congestion,” Peh said. Highlighting the surge in Rotterdam, Heiberg said it is one of the busiest ports for MPV operations, handling an average of about 224 calls per month. “The majority of these — about 78% so far this year — are short-sea operations linked to project-related cargo such as offshore wind foundations, steel pipes for the Porthos carbon storage project, and steel plates for the offshore industry,” Heiberg said. He noted that factors such as low water levels on the River Rhine and US import duties on European and Chinese exports haven’t yet had a measurable impact on MPV traffic in the first half of this year. “That reinforces the view that current congestion is largely driven by port and landside operational factors, rather than macro trade shifts, even as vessel calls and project cargo deliveries continue to rise,” Heiberg said. Executives from other operators including AAL Shipping and dship Carriers, which is part of the deugro group, highlighted growing congestion as a significant challenge. “It’s hard to perform and meet the requirements of clients because of congestion,” Henrik Hansen, AAL Shipping’s general manager for the Americas, said at the recent Breakbulk Americas conference. “We want the ships to move — that’s how carriers make money.” Alternative ports G2 Ocean is among the carriers using digital tools to monitor port conditions in real time and switch to alternative ports, Peh said. “This provides the flexibility to bypass the most congested ports,” he said. “This approach helps ensure that our customers’ cargo keeps moving, even when faced with challenging port environments.” But there’s a potential downside to seeking alternative ports, including longer transit times or additional administrative requirements, Peh added. “Congestion can also influence the way breakbulk/project cargoes are transported, leading shippers to explore alternative transportation methods such as multimodal solutions to avoid port congestion,” he said. Some carriers have also developed strategic partnerships with shore-side assets such as local port agents and port operators to coordinate arrivals, thereby reducing waiting times and ensuring improved access to berths, executives said. Contact Keith Wallis at keithwallis@hotmail.com .

MPV operators adapt to congestion by shifting to alternative ports, digital tools

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

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Shippers save money, time with automated transportation bidding tools

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

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Filling the Supply Chain Education Gap with LTL Education Courses

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