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Liner operators in THE Alliance will switch transits on three services as low water levels on the Panama Canal reduce the number of ships that can use the main artery for container trade between the US East Coast and Asia.

As US port volumes remain lackluster, there is not as much freight to move on trucks, causing the market to stay relatively stagnant ahead of what typically is the busy holiday season.

The rare joint statement reiterates earlier comments by container lines that a greenhouse gas pricing mechanism is needed to make green fuel competitive with traditional bunkers during the phase when both fuels will be in use.

Low water restrictions and “exorbitant” costs for rare transit slots through the drought-hit waterway mean tramp breakbulk and heavy-lift carriers must use longer ocean routes, thus increasing voyage costs.

The service was previously operated on an ad hoc basis but is being upgraded due to growing demand for breakbulk and project cargo into the US West Coast to avoid restrictions and delays through the drought-hit waterway.

US importers have finally cleared out most of the inventory overhang that kept their warehouses at capacity and created bottlenecks in their supply chains.

While container volumes have largely returned to normal historical levels, ocean carriers still have not been able to restore performance to pre-pandemic levels.

Getting the most out of global logistics software sometimes involves using a forwarder as a co-pilot until a shipper is ready to run processes similarly to procurement and order management internally.

Although the incoming capacity will outstrip demand on the major trades over the next two years, the capacity overhang that has been touted in many corners of the shipping sector is being overstated, says an industry analyst.

The expansion of the three companies, all representing different modes across the US-Canadian border, underscores the depth of the relationship between the two economies.

The fresh funding is part of recent federal efforts to increase economic opportunities for farmers and reduce food costs for US residents.

The Class I railroad sees an opportunity to tap growth at the Gulf Coast’s busiest port with new intermodal lanes, while expanding its inland reach from Los Angeles and Long Beach.

The westbound trades out of Asia are heading into tender season with carriers attempting to lift rate levels before locking in long-term contracts being eroded by surplus capacity.

The move complements a flurry of Asia-India service additions by niche regional carriers and newer feeder operators in recent months.

Despite initially failing to meet capacity commitments, the carrier extended the contract for three months at the original rate, saving the shipper $180,000.

European regulators have never had enough information to effectively monitor the container shipping industry since the consortia block exemption rule was introduced in 2009, according to Olaf Merk.

The intra-Asian region is expected to be a hotbed of mergers and acquisitions in container shipping because that is where the growth in container demand is centered, writes analyst Lars Jensen.

Given the persistent downward pressure on demand, it remains to be seen if India-US carriers will be able to push through a new round of modest rate hikes planned for December.

An auction of Yellow’s 174 owned terminals is scheduled for Tuesday, with winning bids to be disclosed on Friday while a separate battle continues over 149 leased terminals.

The carrier is looking to expand beyond its two current services jointly offered with other liners with a standalone service meant to take advantage of the growing shift in sourcing from India.

The project, in coordination with the Vancouver Fraser Port Authority, is due to be completed in late 2024 and will help move cargo faster through Western Canada.

But rising air cargo rates on the major Asian export trade lanes do not portend a peak season this year with analysts pointing to poor economic conditions exerting strong downward pressure on consumers in the US and Europe.

The Norfolk expansion plans from resin logistics specialist Katoen Natie come as more plastics production is going onstream in the Northeast US.

On its own, the growth in container volumes on Asia to Europe trade lanes in the third quarter was impressive, but it compares with the steep slowdown in imports last year by overstocked retailers.

With peak season at hand for ag exports, shippers say weak US import volumes have constrained the supply of repositioned containers they need to send goods overseas, risking disruption to their supply chains.

The carrier’s largest alternative fuel deal to date will be enough to drive half the methanol-powered ships on its orderbook.

The soonest the Panama Canal Authority says it could see significant relief is 2028, raising the possibility of persistent drought restrictions and reduced container capacity and transits until then, writes Journal of Commerce Executive Editor Mark Szakonyi.

The CO2 charge on commercial vehicles is aimed at incentivizing the use of green fuels and lower-emissions trucks, but it will come at a significant cost to the road haulage industry.

Despite some pockets of progress, exactly how container shipping achieves decarbonization will likely remain an unanswered question until new zero-emission fuel standards are adopted, writes Peter Tirschwell.

The four-phase, seven-building project with CSX rail connections will support the growing needs of importers and exporters using the port.

Draft legislation would also seek to codify that rail demurrage fees be billed to the ocean carrier, which would then pass along the charge to the responsible shipper or BCO. .

While the moves are considered more of a rejuvenation than a renaissance, railroads are doing a more effective job juggling the interests of investors while providing new products to serve shippers.

Just a month after the European Commission announced that the block exemption regulation for carriers would not be renewed next April, the UK competition authority has also called for it to lapse upon expiry.

With its systems restored, the LTL carrier plans to “lean into” technology development and investment for greater security and visibility.

Large LTL trucking providers are raising tariff rates 5% to 8% on average, but the LTL PPI slowed its growth to under 1% in October.

CMA CGM is moving beyond funding and supporting startups with a hefty investment into a non-profit lab designed to improve data models that feed into artificial intelligence products.

Still, the latest Indian trade data presents some hopeful signs for supply chain stakeholders, as the country's merchandise exports grew 6.3% by value year over year in October, the fastest rate of expansion in a year.

Carriers, shippers and logistics executives may have to get accustomed to drought-related restrictions along the critically important waterway, with costly water-saving infrastructure improvements years away.

Although small trucking firms are folding, there is still a large supply of carriers and trucks keeping a lid on pricing amid soft demand. 

While long-term optimism supports the MPV market, industry analysts see short-term divergence in time charter rate averages.