<div class="phx-topic abstract-wrapper">Container carriers in the slowing US import and export trades are exercising increased discipline, maintaining capacity levels rather than introducing new vessels in an attempt to secure a larger share of the market.</div>

Container carriers in the slowing US import and export trades are exercising increased discipline, maintaining capacity levels rather than introducing new vessels in an attempt to secure a larger share of the market.

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United States containerized import and export volume growth may be slowing, but major container lines are showing restraint in how much market share they chase via the introduction of new vessel capacity, as reflected by an analysis of data from PIERS and Alphaliner. France-based ocean carrier CMA CGM and subsidiary line APL handled the largest combined share of US containerized imports in the first half, with Geneva-based Mediterranean Shipping Co. closely following, according to PIERS, a sister product of JOC.com within IHS Markit. The top five carriers and common-owned companies maintained approximately the same share of US imports they had in the same 2018 period, at 62 percent, even as year-over-year volume growth slowed to 3.4 percent, from 7.8 percent last year. MSC was the fastest growing of the five largest carriers of US imports in the first half, increasing its volume 9.1 percent from the same 2018 period. Chinese state-run carrier Cosco Shipping and subsidiary OOCL were the only lines to report a decline in volume during the period, as its total US imports slid 4.9 percent year over year. Maersk Line led all carriers in terms of US exports, moving 14 percent of all outbound containers in the first half despite a 4 percent decline in volume from the first half of 2018, followed by MSC (13.4 percent), and CMA CGM and APL (12.3 percent). The top five carriers and common-owned companies increased their share of US exports in the first six months by 1.6 percentage points, to 60.3 percent. Among the top five carriers of US container exports, Ocean Network Express (ONE) — the merged container operations of Japan’s NYK Line, Mitsui O.S.K. Lines, and “K” Line — saw the biggest gains, with first-half volume growth rebounding to 27.2 percent after a 9.8 percent loss the previous year. CMA CGM and APL saw the largest decline, with combined US export volume dropping 5.3 percent compared with a 3.4 percent increase in the first half of 2018. Rising global competition and Chinese retaliatory tariffs on US exports continued to drag on total outbound US volume, pulling the overall year-over-year growth rate down to 1.6 percent. By comparison, US export volumes increased 8.2 percent year over year in the first six months of 2016, before decelerating to a 7 percent growth rate in 2017 and a 2.9 percent rate in 2018. On the global stage, Maersk still leads the way in total capacity with an 18.9 percent share of the top-50 carrier fleet, according to maritime researcher Alphaliner, followed by MSC (16.3 percent), Cosco Shipping (13.3 percent), CMA CGM Group (12.3 percent), and Hapag-Lloyd (7.6 percent). Over the last few years, carrier consolidation via mergers and acquisitions has increased the total market share of the 10 largest fleet operators to 87.9 percent, with the top five operators now controlling 68.4 percent of deployed capacity. Unlike several of the other large global carriers, however, Maersk has repeatedly told investors it had no plans to expand its existing capacity at present. True to its word, Maersk’s orderbook accounts for no more than 28,700 TEU of capacity, or 0.7 percent of its total fleet of 4.18 million TEU. By contrast, ninth-largest carrier HMM of South Korea has 20 ships on order with an aggregate capacity equal to approximately 97 percent (396,000 TEU) of its existing 408,285-TEU fleet. “We maintain that we want to stay around 4 million TEU of deployed capacity,” Maersk Group CEO Søren Skou said during a conference call on Aug 15. “We will need some extra tonnage chartered in because we have ships retrofitting scrubbers and have invested a little more capacity in slow steaming this year. But we want to remain disciplined on capacity and stick to our guidance of 4 million deployed capacity, because it helps drive utilization up and unit costs down.” JOC.com’s quarterly Top 40 Container Carriers rankings are compiled using data from PIERS and Alphaliner. Volume and capacity figures are expressed in twenty-foot equivalent units (TEU). JOC Top 40 container carriers in US import trade lanes US IMPORT, January-June 2019 vs. January-June 2015, 2016, 2017, and 2018 in laden TEU The JOC Top 40 container carriers in the US import trade carried 99.7 percent of the 12 million TEU in the overall US import trade in the first half of 2019, a volume increase of 3.5 percent year over year and surge of 28.6 percent above 2015. The JOC Top 5 carriers garnered 62.2 percent of the US import trade lane, or 7.4 million TEU in the first half as volume rose 2.3 percent year over year, and spiked 26.7 percent above the same period in 2015. JANUARY-JUNE US Imports Percent Volume Change in Jan.-June 2019 World, U.S. Headquarters Market Share 2019 From 2015 From 2016 From 2017 From 2018 OCEAN CARRIER* 1 CMA CGM / APL Marseille; Norfolk, Va.Singapore; Scottsdale, Ariz. 13.1% 1,569,342 29.2% 26.6% 12.9% 3.5% 2 MSC Geneva; New York 12.8% 1,529,381 36.7% 30.5% 10.6% 9.1% 3 A.P. Moeller - Maersk * Copenhagen; Florham Park, N.J. 12.6% 1,507,274 33.7% 19.7% 11.2% 1.7% 4 Cosco Shipping / OOCL Shanghai; Secaucus, N.J.; Hong Kong; Salt Lake City 12.3% 1,474,929 18.1% 18.6% 6.3% -4.9% 5 Ocean Network Express Singapore 11.4% 1,365,676 17.0% 14.7% -4.4% 2.7% JOC Top 5 US Import Carriers 62.2% 62.2% JOC Top 5 US Import Carriers' Market Share 7,446,602 26.7% 22.0% 7.2% 2.3% 6 Hapag-Lloyd Hamburg; Piscataway, N.J. 8.5% 1,020,755 26.8% 11.6% 6.2% 4.7% 7 Evergreen Line Taipei; Jersey City, N.J. 8.4% 1,008,237 26.0% 25.5% 9.5% 13.5% 8 Yang Ming Line Keelung; Newark, N.J. 3.9% 467,637 16.3% 13.9% 3.5% 1.5% 9 HMM Seoul; Irving, Texas 3.9% 462,390 30.3% 36.2% -2.2% 0.5% 10 Zim Integrated Shipping Services Haifa; Norfolk, Va. 2.8% 330,726 51.1% 36.1% 48.1% 2.3% 11 SM Line Seoul 1.2% 143,854 245.0% 12.9% 12 Pacific International Lines Singapore, Long Beach, Ca. 1.1% 135,119 215.1% 111.0% 28.1% -1.3% 13 Dole Jacksonville, Fla. 1.1% 131,966 10.9% 2.6% 7.6% -0.3% 14 Seaboard Marine Miami, Fla 1.0% 118,767 22.9% 23.3% 18.0% 4.1% 15 Crowley Jacksonville, Fla. 0.7% 88,212 -9.2% -8.1% -18.0% -17.1% 16 Great White Fleet Antwerp; Cincinnati 0.6% 75,815 -5.6% 2.9% 5.4% 27.7% 17 Wan Hai Lines Taipei; Phoenix, Ariz. 0.6% 73,027 35.6% 9.5% 0.9% 0.9% 18 Del Monte Coral Gables, Fla. 0.5% 61,666 61.7% 63.6% 3.6% -0.4% 19 Matson Oakland 0.5% 54,928 -0.5% 23.2% 0.1% 11.7% 20 Independent Container Line Copenhagen; Florham Park, N.J. 0.4% 50,660 11.0% 22.3% 10.4% 6.0% 21 ACL/Grimaldi Group Naples; Westfield, N.J. 0.4% 50,591 36.2% 22.7% -0.7% 7.0% 22 Turkon Line Istanbul; Secaucus, N.J. 0.2% 23,995 37.3% 42.8% 7.8% 13.0% 23 King Ocean Services Doral, Fla. 0.2% 21,857 100.1% 55.7% 20.4% 7.2% 24 Agriculture Investment Export Inc. Tegucigalpa, Honduras; Port Everglades 0.2% 21,123 58.4% 25 Westwood Shipping Puyallup, Wash. 0.2% 19,860 -10.0% 18.4% -1.5% 9.4% 26 Tropical Shipping Riviera Beach, Fla. 0.2% 19,074 -10.6% -1.0% -7.9% 2.6% 27 TOTE Maritime Jacksonville, Fla. 0.2% 18,597 -0.2% 4.9% -11.1% -17.5% 28 Linea Peninsular Panama City, Fla. 0.1% 13,947 50.4% 61.3% 15.5% 24.4% 29 World Direct Shipping Palmetto, Fla. 0.1% 13,498 381.9% 233.2% 129.3% 138.4% 30 Seth Shipping Corp Victoria MAHE, SEYCHELLES 0.1% 13,447 10.5% -10.5% 75.7% 8.3% 31 Trailer Bridge Jacksonville, Fla. 0.1% 10,038 -8.4% -21.5% 4.0% -13.6% 32 Marine Express Santo Domingo, Dom. Rep. 0.1% 7,895 15.4% 23.0% 23.8% 3.2% 33 Antillean Lines Miami, Fla 0.1% 6,759 111.7% 92.9% 64.7% 32.3% 34 Eimskip Reykjavik; Virginia Beach 0.1% 6,610 140.6% 73.3% 63.2% 46.7% 35 Priority Ro-Ro Mayaguez, Puerto Rico 0.1% 6,241 55.2% 27.6% 1.1% -3.8% 36 Spliethoff Transport Amsterdam; Cleveland 0.0% 4,281 -10.5% 13.3% -7.3% 16.3% 37 Transgulf Miami, Fla 0.0% 3,656 137.1% 0.3% 38 Trans Global Shipping Inc Mississauga, Kanada 0.0% 3,335 -33.5% -20.7% -34.5% -19.3% 39 Polynesia Line San Rafaeal, Calif. 0.0% 2,719 -21.6% -15.9% -4.8% 5.0% 40 Seacor Fort Lauderdale 0.0% 2,468 96.7% 61.7% 57.6% 55.8% TOTAL JOC TOP 40 US IMPORT CARRIERS 99.7% 11,940,353 28.7% 23.6% 8.7% 3.5% TOTAL ALL US IMPORT CARRIERS 100.0% 11,981,215 18.7% 15.1% 7.8% 3.4% MARKET SHARE OF ALL JOC TOP 40 US IMPORT CARRIERS 99.7% *A.P. Moeller - Maersk includes Maersk Line, Sealand, and Hamburg Sud. Source: IHS Markit JOC Top 40 container carriers in US export trade lanes US EXPORT, January-June 2019 vs. January-June 2015, 2016, 2017 and 2018 in laden TEU The JOC Top 40 container carriers in the US export trade carried 99.7 percent of the 6.5 million TEU in the overall US export trade in the first half of 2019, a volume increase of 1.6 percent year over year and surge of 8.2 percent above 2015. The JOC Top 5 carriers garnered 60.3 percent of the US export trade lane, or 3.9 million TEU in the first half as volume rose 4.3 percent year over year, and spiked 32 percent above the same period in 2015. JANUARY-JUNE US Exports Percent Volume Change in Jan.-June 2019 World, U.S. Headquarters Market Share 2019 From 2015 From 2016 From 2017 From 2018 OCEAN CARRIER* 1 A.P. Moeller - Maersk* Copenhagen; Florham Park, N.J. 14.0% 920,799 22.2% 4.6% 4.3% -4.0% 2 MSC Geneva; New York 13.4% 877,507 15.5% 10.8% 6.4% 2.5% 3 CMA CGM / APL Marseille; Norfolk, Va.Singapore; Scottsdale, Ariz. 12.3% 809,010 18.8% 19.5% 3.4% -5.3% 4 Ocean Network Express Singapore 10.7% 699,791 2.2% 1.8% -9.8% 27.2% 5 Hapag-Lloyd Hamburg; Piscataway, N.J. 9.9% 646,238 32.0% 20.9% 21.8% 13.2% JOC Top 5 US Export Carriers 60.3% 60.3% JOC Top 5 US Export Carriers' Market Share 3,953,345 17.4% 10.7% 4.1% 4.3% 6 Cosco Shipping / OOCL Shanghai; Secaucus, N.J.; Hong Kong; Salt Lake City 9.4% 615,800 22.9% 20.6% -0.2% -4.5% 7 Evergreen Line Taipei; Jersey City, N.J. 6.3% 414,718 6.8% 16.9% -2.2% -5.3% 8 Yang Ming Line Keelung; Newark, N.J. 3.9% 256,103 33.7% 30.5% 6.6% 13.4% 9 HMM Seoul; Irving, Texas 3.6% 232,778 27.0% 28.9% -1.5% 2.6% 10 Crowley Jacksonville, Fla. 2.6% 167,749 -5.1% 0.5% 1.5% -4.6% 11 Seaboard Marine Miami 2.5% 161,513 4.3% 4.2% -2.2% -9.9% 12 Zim Integrated Shipping Services Haifa; Norfolk, Va. 2.2% 141,641 11.1% 4.4% 13.0% -8.8% 13 TOTE Maritime Jacksonville, Fla. 1.4% 89,774 15.2% 8.7% 2.7% -17.5% 14 Tropical Shipping Riviera Beach, Fla. 1.1% 71,872 10.7% 15.5% 6.1% 5.5% 15 SM Line Seoul 0.8% 52,029 291.6% 14.9% 16 King Ocean Services Doral, Fla. 0.7% 45,592 10.6% 13.6% 4.2% 4.8% 17 Dole Jacksonville, Fla. 0.6% 41,770 37.8% 66.3% 37.5% 18.2% 18 ACL/Grimaldi Group Naples; Westfield, N.J. 0.6% 38,499 1.8% 8.9% -10.1% -2.3% 19 Pacific International Lines Singapore, Long Beach, Ca. 0.5% 35,213 53.8% 43.8% 63.4% 74.4% 20 Independent Container Line Copenhagen; Florham Park, N.J. 0.5% 33,095 1.1% 0.6% 10.1% -3.3% 21 Trailer Bridge Jacksonville, Fla. 0.5% 30,282 -18.0% -5.5% -9.7% -14.2% 22 Wan Hai Lines Taipei; Phoenix, Ariz. 0.4% 26,637 214.4% 160.9% 112.6% 131.0% 23 Matson Oakland 0.4% 23,306 -9.4% -18.9% -10.1% -10.5% 24 Great White Fleet Antwerp; Cincinnati 0.3% 21,955 -50.9% -50.4% -44.1% -30.4% 25 Seacor Fort Lauderdale 0.2% 11,995 9799.9% 9.2% 1.3% 26 Antillean Lines Miami, Fla. 0.2% 11,544 16.4% 4.5% -2.4% -3.8% 27 Turkon Line Istanbul; Secaucus, N.J. 0.2% 10,812 -39.5% -34.5% -39.8% -35.0% 28 Hybur Shipping Cayman Islands; Port Everglades 0.1% 9,454 5.4% -20.7% -13.5% -13.6% 29 Westwood Shipping Puyallup, Wash. 0.1% 9,178 -9.8% 3.8% -1.4% -9.3% 30 Del Monte Coral Gables, Fla. 0.1% 5,608 1.0% -15.5% 6.4% 39.2% 31 Linea Peninsular Panama City, Fla. 0.1% 4,333 -45.6% -35.5% -19.5% -23.3% 32 Bermuda Container Line Hamilton, Bermuda; Newark, N.J. 0.1% 4,060 0.6% 8.1% -18.4% 3.4% 33 Polynesia Line San Rafaeal, Calif. 0.0% 2,450 -26.4% -32.4% -11.2% 1.4% 34 Somers Isles Shipping Fernandina Beach, Fla. 0.0% 2,239 29.2% 3.9% 9.6% 12.9% 35 NileDutch Rotterdam, Netherlands 0.0% 1,690 2314.7% 868.7% 36 Bermuda International Shipping Ltd. New York, N.Y, USA 0.0% 1,301 -30.0% -17.0% 14.2% -1.1% 37 ZEAMARINE Carrier GmbH Bremen, Germany 0.0% 1,252 38 Bahri Riyadh, Saudi Arabia 0.0% 1,155 -26.5% 2.1% 37.5% 50.4% 39 Schuyler Line Navigation Annapolis, Md. 0.0% 1,087 486.6% -41.6% -27.1% -40.3% 40 Universal Africa Lines Capelle aan den IJssel, Netherlands 0.0% 773 -74.7% -60.2% -45.2% -25.7% TOTAL JOC TOP 40 US EXPORT CARRIERS 99.7% 6,532,603 16.8% 13.3% 3.6% 1.8% TOTAL ALL US EXPORT CARRIERS 100.0% 6,555,239 8.2% 7.0% 2.9% 1.6% MARKET SHARE OF ALL JOC TOP 40 US EXPORT CARRIERS 99.7% *A.P. Moeller - Maersk includes Maersk Line, Sealand, and Hamburg Sud. Source: IHS Markit l

Container lines

JOC Top 40 container carrier rankings first half 2019

<div class="phx-topic abstract-wrapper">The journey time, about two to three days better than typical industry metrics, comes despite congestion in other parts of partner CPKC’s network.</div>

The journey time, about two to three days better than typical industry metrics, comes despite congestion in other parts of partner CPKC’s network.

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<div class="phx-topic">Schneider National said Friday its flagship Mexico Midwest Express (MMX) intermodal service with partner Canadian Pacific Kansas City (CPKC) is continuing to deliver strong results in 2025, offering faster transit times and higher on-time reliability than many cross-border alternatives despite congestion in other parts of CPKC’s network. The MMX service, launched two years ago, connects inland Mexican cities such as Monterrey and San Luis Potosí with Chicago via a single-line rail route. The service bypasses traditional interchange delays at the border, with two spans over the Laredo bridge and switching yards on each side of the border to handle crew changes. While Schneider did not disclose current shipment totals due to its quiet period ahead of the release of its second-quarter earnings, the company said MMX performance metrics through the first half of 2025 were strong, with average transit times of four days and a cargo theft rate of less than 0.02%. Schneider also said the on-time performance of MMX remains above 95%. The typical transit time from Monterrey to Chicago is about six or seven days. “Decreasing shipping time by even a few days matters to our customers because the faster products can get on the shelves, the faster those items can land in the hands of consumers,” Michael Baumgardt, Schneider’s senior vice president of intermodal, said in a statement. The Intermodal Association of North America (IANA) reported that railroads hauled a combined 86,000-plus domestic containers this year through May 31, a 21% increase compared with the same period a year earlier. Railroads hauled nearly 60,000 domestic containers to the Midwest during the same period, up 9% from a year earlier. Schneider is currently the only intermodal provider offering a true single-line cross-border solution from Mexico to the Midwest, eliminating any chance of delays caused by an interchange between two railroads. Schneider said service on the MMX has not deteriorated much since CPKC’s <a href="https://www.joc.com/article/cpkc-acknowledges-service-woes-to-us-regulators-vows-remediation-6030412">messy IT transition</a> in May that affected service in Texas, Louisiana, and Mississippi. The exception is that some shippers have experienced lengthy delays moving cargo from Laredo to Chicago because the container dwell inside the Laredo yard is up 122% since early May compared with a year ago. Schneider rivals <a href="https://www.joc.com/article/jb-hunt-launching-quantum-de-mexico-for-time-sensitive-cross-border-freight-6014579">J.B. Hunt Transport Services</a> and <a href="https://www.joc.com/article/hub-group-boosts-cross-border-business-in-jv-with-mexican-dray-carrier-5745355">Hub Group</a> have also ramped up investments in cross-border intermodal in recent months, introducing new services and partnerships aimed at capturing a growing share of freight moving between the US and Mexico. Union Pacific Railroad completed a pilot program this spring to speed up the handoff between Mexican and US crews by doing it inside UP’s Eagle Pass terminal rather than on the middle of the International Railway Bridge. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Schneider National said Friday its flagship Mexico Midwest Express (MMX) intermodal service with partner Canadian Pacific Kansas City (CPKC) is continuing to deliver strong results in 2025, offering faster transit times and higher on-time reliability than many cross-border alternatives despite congestion in other parts of CPKC’s network. The MMX service, launched two years ago, connects inland Mexican cities such as Monterrey and San Luis Potosí with Chicago via a single-line rail route. The service bypasses traditional interchange delays at the border, with two spans over the Laredo bridge and switching yards on each side of the border to handle crew changes. While Schneider did not disclose current shipment totals due to its quiet period ahead of the release of its second-quarter earnings, the company said MMX performance metrics through the first half of 2025 were strong, with average transit times of four days and a cargo theft rate of less than 0.02%. Schneider also said the on-time performance of MMX remains above 95%. The typical transit time from Monterrey to Chicago is about six or seven days. “Decreasing shipping time by even a few days matters to our customers because the faster products can get on the shelves, the faster those items can land in the hands of consumers,” Michael Baumgardt, Schneider’s senior vice president of intermodal, said in a statement. The Intermodal Association of North America (IANA) reported that railroads hauled a combined 86,000-plus domestic containers this year through May 31, a 21% increase compared with the same period a year earlier. Railroads hauled nearly 60,000 domestic containers to the Midwest during the same period, up 9% from a year earlier. Schneider is currently the only intermodal provider offering a true single-line cross-border solution from Mexico to the Midwest, eliminating any chance of delays caused by an interchange between two railroads. Schneider said service on the MMX has not deteriorated much since CPKC’s messy IT transition in May that affected service in Texas, Louisiana, and Mississippi. The exception is that some shippers have experienced lengthy delays moving cargo from Laredo to Chicago because the container dwell inside the Laredo yard is up 122% since early May compared with a year ago. Schneider rivals J.B. Hunt Transport Services and Hub Group have also ramped up investments in cross-border intermodal in recent months, introducing new services and partnerships aimed at capturing a growing share of freight moving between the US and Mexico. Union Pacific Railroad completed a pilot program this spring to speed up the handoff between Mexican and US crews by doing it inside UP’s Eagle Pass terminal rather than on the middle of the International Railway Bridge. Contact Ari Ashe at ari.ashe@spglobal.com .

North-American rail

Intermodal providers

Schneider says MMX service delivering four-day Mexico-Chicago transit time

<div class="phx-topic abstract-wrapper">The project, due to begin Monday, will also improve truck access by upgrading the gate infrastructure and boost efficiency through the replacement of an outdated terminal operating system.</div>

The project, due to begin Monday, will also improve truck access by upgrading the gate infrastructure and boost efficiency through the replacement of an outdated terminal operating system.

<div class="phx-topic">The International Transportation Service (ITS) terminal in Long Beach will begin a $365 million upgrade on Monday that will increase its container capacity by about 50% and enable it to work two 18,000-TEU ships simultaneously. The work involves filling in a 19-acre slip at the terminal to make the property usable. Scheduled for completion in about three and a half years, the project will also improve truck access by upgrading the gate infrastructure and boost efficiency through the replacement of an outdated terminal operating system (TOS) with a new TOS, ITS CEO Kim Holtermand told the Journal of Commerce. “Our tech is quite old. It’s time to upgrade it,” Holtermand said. ITS is, in effect, two separate terminals separated by the slip, which hinders operational efficiency, Holtermand said. Filling in the slip will increase the terminal’s size to 277 acres and create a more efficient square-shaped facility. With a total of 3,500 linear feet of berth, ITS will be able to handle two super-post-Panamax container ships, or one 18,000-TEU vessel and two smaller ships simultaneously, he said. “It will be a large efficient facility with big [super post-Panamax] cranes and improved infrastructure,” Holtermand said. ITS’ annual throughput capacity will increase by about 50% to 1.5 million container moves, or 2.6 million TEUs, he said. <h3>Gate improvements expected to boost efficiency </h3>Included in the project will be a reconfiguration of the terminal’s gate complex and a new TOS that will streamline truck access and egress. Trucks calling at ITS in June had an average turn time of 71 minutes; the average turn time for the Long Beach-Los Angeles port complex in June was 62 minutes, according to the Harbor Trucking Association. ITS will also continue its efforts to electrify all its cargo-handling equipment by 2030 to meet the deadline set in the joint Los Angeles-Long Beach <a href="https://www.joc.com/article/la-lb-port-significantly-cuts-emissions-but-tougher-challenges-await-5742585">Clean Air Action Plan</a>, Holtermand said. The equipment will continue to be operated by dockworkers, he added. Noel Hacegaba, COO at the Port of Long Beach, said the ITS expansion project is the latest example of how the port and its stakeholders are not only growing, but growing green. Another project that will accomplish the port’s environmental goals is the <a href="https://www.joc.com/article/southern-california-ports-ready-to-defend-green-initiatives-from-trump-white-house-5927353">Pier B on-dock railyard</a> that will eliminate hundreds of truck trips each day by loading inland point intermodal (IPI) containers directly onto trains rather than trucking them to near-dock railyards, Hacegaba said. Construction of the Pier B facility continues to advance, he said, with completion expected in 2032. On-dock moves account for about 27% of Long Beach’s IPI volume; completion of the Pier B facility will raise that to about 35%, Hacegaba said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The International Transportation Service (ITS) terminal in Long Beach will begin a $365 million upgrade on Monday that will increase its container capacity by about 50% and enable it to work two 18,000-TEU ships simultaneously. The work involves filling in a 19-acre slip at the terminal to make the property usable. Scheduled for completion in about three and a half years, the project will also improve truck access by upgrading the gate infrastructure and boost efficiency through the replacement of an outdated terminal operating system (TOS) with a new TOS, ITS CEO Kim Holtermand told the Journal of Commerce. “Our tech is quite old. It’s time to upgrade it,” Holtermand said. ITS is, in effect, two separate terminals separated by the slip, which hinders operational efficiency, Holtermand said. Filling in the slip will increase the terminal’s size to 277 acres and create a more efficient square-shaped facility. With a total of 3,500 linear feet of berth, ITS will be able to handle two super-post-Panamax container ships, or one 18,000-TEU vessel and two smaller ships simultaneously, he said. “It will be a large efficient facility with big [super post-Panamax] cranes and improved infrastructure,” Holtermand said. ITS’ annual throughput capacity will increase by about 50% to 1.5 million container moves, or 2.6 million TEUs, he said. Gate improvements expected to boost efficiency Included in the project will be a reconfiguration of the terminal’s gate complex and a new TOS that will streamline truck access and egress. Trucks calling at ITS in June had an average turn time of 71 minutes; the average turn time for the Long Beach-Los Angeles port complex in June was 62 minutes, according to the Harbor Trucking Association. ITS will also continue its efforts to electrify all its cargo-handling equipment by 2030 to meet the deadline set in the joint Los Angeles-Long Beach Clean Air Action Plan , Holtermand said. The equipment will continue to be operated by dockworkers, he added. Noel Hacegaba, COO at the Port of Long Beach, said the ITS expansion project is the latest example of how the port and its stakeholders are not only growing, but growing green. Another project that will accomplish the port’s environmental goals is the Pier B on-dock railyard that will eliminate hundreds of truck trips each day by loading inland point intermodal (IPI) containers directly onto trains rather than trucking them to near-dock railyards, Hacegaba said. Construction of the Pier B facility continues to advance, he said, with completion expected in 2032. On-dock moves account for about 27% of Long Beach’s IPI volume; completion of the Pier B facility will raise that to about 35%, Hacegaba said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Container Shipping News

Port News

North American ports

Marine terminals

Maritime

Long Beach ITS terminal upgrade to boost capacity by about 50%

<div class="phx-topic abstract-wrapper">The decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said in a quarterly update Friday.</div>

The decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said in a quarterly update Friday.

<div class="phx-topic">OOCL’s second-quarter revenues dropped 6.5% year over year to $2.1 billion amid falling freight rates on trans-Pacific and Asia-Europe services, the carrier said in a quarterly update Friday. The revenue decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said. OOCL, the liner offshoot of Hong Kong-listed Orient Overseas (International), a Cosco Shipping Holdings subsidiary, said second-quarter trans-Pacific revenues were also hit by a 4.3% fall in container volumes to 501,814 TEUs. Trans-Pacific revenues fell 18% to $753 million in the second quarter from $922 million a year earlier. OOCL said revenue from Asia-Europe services dropped 15% to $443 million in the April–June period despite a 3% increase in liftings to 361,722 TEUs. There were brighter results in OOCL’s two other main markets. Intra-Asia and Australasia remained OOCL’s biggest contributor to revenue and volumes after the carrier saw a 9% increase to $728 million in second-quarter revenue. Liftings climbed 8% to 951,940 TEUs. Revenue from trans-Atlantic services surged 25% to $194 million, while container volumes rose 21% to 147,824 TEUs. OOCL’s update only gave revenue and liftings figures; parent company OOIL will likely release full half-year results in mid-August. The carrier’s revenue result echoes that of Taiwan’s Big Three container lines, <a href="https://www.joc.com/article/taiwans-big-three-carriers-see-falling-q2-revenues-as-demand-slump-begins-6041608">which on Wednesday reported worsening second-quarter revenues</a> compared with the first quarter. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

OOCL’s second-quarter revenues dropped 6.5% year over year to $2.1 billion amid falling freight rates on trans-Pacific and Asia-Europe services, the carrier said in a quarterly update Friday. The revenue decline came despite a 4.4% increase in total container volumes to 2 million TEUs, the carrier said. OOCL, the liner offshoot of Hong Kong-listed Orient Overseas (International), a Cosco Shipping Holdings subsidiary, said second-quarter trans-Pacific revenues were also hit by a 4.3% fall in container volumes to 501,814 TEUs. Trans-Pacific revenues fell 18% to $753 million in the second quarter from $922 million a year earlier. OOCL said revenue from Asia-Europe services dropped 15% to $443 million in the April–June period despite a 3% increase in liftings to 361,722 TEUs. There were brighter results in OOCL’s two other main markets. Intra-Asia and Australasia remained OOCL’s biggest contributor to revenue and volumes after the carrier saw a 9% increase to $728 million in second-quarter revenue. Liftings climbed 8% to 951,940 TEUs. Revenue from trans-Atlantic services surged 25% to $194 million, while container volumes rose 21% to 147,824 TEUs. OOCL’s update only gave revenue and liftings figures; parent company OOIL will likely release full half-year results in mid-August. The carrier’s revenue result echoes that of Taiwan’s Big Three container lines, which on Wednesday reported worsening second-quarter revenues compared with the first quarter. Contact Keith Wallis at keithwallis@hotmail.com .

Trans-Atlantic

Asia-Europe

Trans-Pacific

OOCL’s Q2 revenue slides on lower trans-Pacific, Asia-Europe rates

<div class="phx-topic abstract-wrapper">Adoption of digital bills of lading has been stronger in Asia, but US traction is necessary to help container lines meet a 2030 commitment to fully move to electronic documents.</div>

Adoption of digital bills of lading has been stronger in Asia, but US traction is necessary to help container lines meet a 2030 commitment to fully move to electronic documents.

<div class="phx-topic">US Bank has completed its first trade finance transaction using a digital ocean bill of lading (BoL), another small step toward the industry’s intent to transition to 100% digital BoLs by 2030. The transaction, disclosed by US Bank on Thursday, was facilitated by electronic bill of lading (eBL) software vendor WaveBL for a US-based exporter using Mediterranean Shipping Co., which issued the eBL. MSC is a WaveBL customer, one of two container lines using the software vendor; Zim Integrated Shipping Services is the other. Adoption of eBLs is growing, but off a low base, and is more commonly used in Asia, where the eBL software provider IQAX is getting traction among banks and export suppliers. The nine member carriers of the Digital Container Shipping Association (DCSA) committed in early 2023 to shift to 100% digital bills of lading by 2030. This week’s move by US Bank highlights the potential in American banks adopting a process to accommodate digital BoLs. Traditionally, bills of lading transfer titles between buyers and sellers at a point determined by the shipment’s Incoterm, and banks traditionally play a role in issuing letters of credit to suppliers. In theory, an eBL would negate the need for most letters of credit, as the digital data contained in the document can be used by the buyer, seller, shipping line and banks to understand the financial risk of the shipment. “Our clients are looking for smarter, more efficient ways to manage their import and export activities,” US Bank Senior Vice President Christine Bravo said in a statement. US Bank said a transaction such as this normally would require a courier to physically transport documents across continents, often taking several days. “By contrast, the digital process reduced that timeline to minutes, eliminating delays, [and] enhancing security and compliance,” the bank said. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

US Bank has completed its first trade finance transaction using a digital ocean bill of lading (BoL), another small step toward the industry’s intent to transition to 100% digital BoLs by 2030. The transaction, disclosed by US Bank on Thursday, was facilitated by electronic bill of lading (eBL) software vendor WaveBL for a US-based exporter using Mediterranean Shipping Co., which issued the eBL. MSC is a WaveBL customer, one of two container lines using the software vendor; Zim Integrated Shipping Services is the other. Adoption of eBLs is growing, but off a low base, and is more commonly used in Asia, where the eBL software provider IQAX is getting traction among banks and export suppliers. The nine member carriers of the Digital Container Shipping Association (DCSA) committed in early 2023 to shift to 100% digital bills of lading by 2030. This week’s move by US Bank highlights the potential in American banks adopting a process to accommodate digital BoLs. Traditionally, bills of lading transfer titles between buyers and sellers at a point determined by the shipment’s Incoterm, and banks traditionally play a role in issuing letters of credit to suppliers. In theory, an eBL would negate the need for most letters of credit, as the digital data contained in the document can be used by the buyer, seller, shipping line and banks to understand the financial risk of the shipment. “Our clients are looking for smarter, more efficient ways to manage their import and export activities,” US Bank Senior Vice President Christine Bravo said in a statement. US Bank said a transaction such as this normally would require a courier to physically transport documents across continents, often taking several days. “By contrast, the digital process reduced that timeline to minutes, eliminating delays, [and] enhancing security and compliance,” the bank said. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

US Bank eBL trial for US exporter notches another step toward 2030 goal

<div class="phx-topic abstract-wrapper">The Marseille-based liner has finalized operational plans to call off its remaining vessel-sharing agreements with the carriers after Gemini Cooperation-linked realignments.</div>

The Marseille-based liner has finalized operational plans to call off its remaining vessel-sharing agreements with the carriers after Gemini Cooperation-linked realignments.

<div class="phx-topic">CMA CGM is switching from vessel-sharing agreements (VSAs) to standalone operations across trades out of India in a new strategic approach as it expands its fleet. The Marseille-based liner has finalized operational plans to call off its two remaining VSAs with Hapag-Lloyd and Maersk after Gemini Cooperation-linked realignments. The upcoming disengagements include the Swahili Express (SWAX2) loop run with Hapag-Lloyd on the India-East Africa trade and the Midas network, involving two strings, operated with Maersk on the India-West Africa trade. CMA CGM has had three ships out of the five used on the joint SWAX2, with one vessel each from Hapag-Lloyd and Emirates Shipping Line (ESL). Midas has involved a fleet of 10 ships — six from Maersk and four from CMA CGM — on String 1 and three vessels from each on String 2. The French carrier has already sent its partners termination notices, due to take effect from next month for the SWAX2 operation and from late 2025/early 2026 for the Midas network. Sources at Hapag-Lloyd and Maersk in India were unavailable for comment. The Gemini launch in February saw CMA CGM delink from the decades-long consortium partnerships with Hapag-Lloyd on the India-US East Coast and North Europe trades. CMA CGM’s India VSA operations are now confined to Cosco Shipping/OOCL on the Epic service. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM is switching from vessel-sharing agreements (VSAs) to standalone operations across trades out of India in a new strategic approach as it expands its fleet. The Marseille-based liner has finalized operational plans to call off its two remaining VSAs with Hapag-Lloyd and Maersk after Gemini Cooperation-linked realignments. The upcoming disengagements include the Swahili Express (SWAX2) loop run with Hapag-Lloyd on the India-East Africa trade and the Midas network, involving two strings, operated with Maersk on the India-West Africa trade. CMA CGM has had three ships out of the five used on the joint SWAX2, with one vessel each from Hapag-Lloyd and Emirates Shipping Line (ESL). Midas has involved a fleet of 10 ships — six from Maersk and four from CMA CGM — on String 1 and three vessels from each on String 2. The French carrier has already sent its partners termination notices, due to take effect from next month for the SWAX2 operation and from late 2025/early 2026 for the Midas network. Sources at Hapag-Lloyd and Maersk in India were unavailable for comment. The Gemini launch in February saw CMA CGM delink from the decades-long consortium partnerships with Hapag-Lloyd on the India-US East Coast and North Europe trades. CMA CGM’s India VSA operations are now confined to Cosco Shipping/OOCL on the Epic service. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM ends existing Indian VSAs with Hapag-Lloyd, Maersk

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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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