<div class="phx-topic abstract-wrapper">Canada is reconsidering how its port system operates in the wake of disruption tied to the pandemic and amid inland hub congestion putting upstream pressure on its Pacific Coast ports.</div>

Canada is reconsidering how its port system operates in the wake of disruption tied to the pandemic and amid inland hub congestion putting upstream pressure on its Pacific Coast ports.

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<div>Canada is giving its port system the first major rethink in more than two decades after disruption tied to the COVID-19 pandemic has exposed its fragility. <a>Recent pleas</a> from forwarders and their shipper customers for federal action to relieve western port congestion, fueled by backlogs at key inland hubs such as Toronto and Montreal, underscores the urgency.<div><img>l</div>The “Ports Modernization Review,” launched in 2018, will usher in federal legislation anticipated to be introduced by the end of the year. Comments, from railroads to port authorities, reflect a need to better use scarce industrial land, streamline project permitting, and accelerate technology development...

Canada is giving its port system the first major rethink in more than two decades after disruption tied to the COVID-19 pandemic has exposed its fragility. Recent pleas from forwarders and their shipper customers for federal action to relieve western port congestion, fueled by backlogs at key inland hubs such as Toronto and Montreal, underscores the urgency. l The “Ports Modernization Review,” launched in 2018, will usher in federal legislation anticipated to be introduced by the end of the year. Comments, from railroads to port authorities, reflect a need to better use scarce industrial land, streamline project permitting, and accelerate technology development to increase efficiency and resilience. Canada’s approach and challenges, while in some way unique to the country, show how Western countries are trying to update how they invest, guide, and even regulate container shipping systems' post-pandemic shock. Canada and other nations must also adapt their supply chains to recover from increasingly severe weather disruptions tied to global warming. Floods and heavy rains temporarily cut Vancouver off from highway and rail access in November 2021. The impact to and involvement of indigenous people in port development may not be as significant to other countries as it is with Canada, but the need for Western ports and inland terminals to secure community buy-in is universal. While their ire was directed at pipelines not seaports, indigenous activists and their supporters crippled Western Canadian rail systems in early 2020 . An awakening of Western governments on the need to invest more and modernize containerized supply chains isn’t unique to Canada. The United States significantly reformed shipping regulation for the first time since 1998 via the Ocean Shipping Reform Act of 2022. The US is also investing more than $11.8 billion into ports through a $1 trillion infrastructure bill signed into law in November 2021. Canada lacks a maritime regulatory agency such as the US Federal Maritime Commission, and its investment in its container ports can be more focused, given only four have volumes of more than 300,000 TEU a year — compared with the 13 in the US, according to the JOC 2021 North American port rankings . Space squeeze Yet, many of the challenges are similar. Industrial real estate near greater Vancouver is scarce thanks to more profitable commercial and real estate development, similar to the Los Angeles-Long Beach port complex and the Port of New York and New Jersey. Warning that the loss of industrial land in lower British Columbia “is reaching crisis levels,” the Vancouver Fraser Port Authority wants federal policy and legislation to address the scarcity. Through the creation of a national freight transportation strategy , the federal governmental could identify industrial and transportation corridors and protect acreage supporting such activities, the Association of Canadian Port Authorities (ACPA) recommended in its ports review submission. The ACPA also wants its 18 port authority members to be allowed to develop inland ports or hubs to help reduce pressure on marine terminals, as well as other multimodal facilities outside of port gates. Canada’s sole inland container port, which serves Vancouver, is operated by PSA International. Canadian Tire, the nation’s largest importer, has a stake in the port, known as the Ashcroft Terminal. The ACPA also urged Ottawa to create a fund to support port projects that reduce and offset port emissions. Port authorities also want to increase their borrowing ability, given that infrastructure demands and project costs have increased since the Canada Marine Act took effect in 1998. Similar to the United States, stronger federal port investment in recent years has helped, but Canadian port authorities say it’s not enough. For example, of the first round of grants via the $4.6 billion National Trade Corridors Fund, fueling port and landside investment, $773 million was awarded, but some $7.5 billion was requested. Yes, some of the projects may not have been feasible, but the gap between funds requested and grant money awarded still points to underinvestment. Perhaps most importantly, Canadian port authorities want a streamlined approach to permitting port projects. Regulatory hurdles, particularly environmental assessments, have slowed new project development, most notably the Vancouver Port Authority’s planned new container terminal. The Robert Banks Terminal 2 project has been in the works for two decades; critics argue that what they see as the project’s questionable environmental and economic feasibility has stymied development. One platform to connect all Canadian ports have launched various technology pilots, Halifax has joined Maersk and IBM’s block chain platform known as TradeLens, and ports report their key performance metrics to Transport Canada. But the Canada Shipping Federation, which represents ocean carriers, envisions something more ambitious: a port community system. Rotterdam, Antwerp, Hamburg, and Le Havre have created such a platform connecting multiple data systems to share pre-arrival vessel reporting to export documentation. In the US, the Biden administration in March announced a project, called Freight Logistics Optimization Works (FLOW) , which is an information-sharing initiative intended to connect supply chain participants. While legislation building off the federal ports review has yet to be introduced in Ottawa, the final report from Minister of Transport Omar Alghabra’s National Supply Chain Task Force hints at potential directions. The report, released Oct. 6, recommends in the short-term beefing up customs capacity to clear cargo and subsidizing the cost of transporting containers inland from seaports. The report noted how the US Department of Agriculture has done similarly by investing in chassis and pop-up yards . The report also recommends levying storage fees on long-dwelling import containers, similar to what the ports of Los Angeles and Long Beach have threatened. The Port of New York-New Jersey has implemented a penalty on ocean carriers for long-dwelling empty containers , although it won’t be assessed until April 1. Longer-term proposals from the task force include a national transportation strategy and creating a supply chain office to unify Canada’s various federal agencies that deal with trade and transport. That Canada’s last ports review before now was 20 years ago and it’s taken three years to complete the most recent one — amid major changes in the shipping industry — shows that boldness and expediency is needed. Importers frustrated by shipment delays and exporters struggling to find empty containers can’t wait any longer. Contact Mark Szakonyi at mark.szakonyi@ihsmarkit.com and follow him on Twitter: @MarkSzakonyi .

Port News

Canada port modernization lays groundwork for legislation

<div class="phx-topic abstract-wrapper">Company executives pointed to the rollout of the Trump administration’s tariff policy in April as driving disruption throughout the second quarter. </div>

Company executives pointed to the rollout of the Trump administration’s tariff policy in April as driving disruption throughout the second quarter.

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<div class="phx-topic">Ocean and air volumes in CH Robinson’s forwarding business fell in the second quarter amid market volatility caused by US tariff policy. The third-party logistics provider also warned of a slower second half of 2025 as much of the seasonal cargo has already landed in the US and shippers remain cautious in refilling inventories. CH Robinson said late Wednesday that gross profit in its ocean freight business fell 7.5% in the second quarter to $107.9 million, with volumes dropping 4% from a year earlier. Other segments of CH Robinson’s forwarding business grew during the quarter despite tepid volumes. The airfreight business grew 11.5% to $34 million on better pricing, even though volumes fell 12.5%. Gross profit in its customs business grew 31.7% to $26.7 million amid higher profit for each transaction. CH Robinson executives pointed to the rollout of the Trump administration’s tariff policy in April as driving volatility throughout the second quarter. CFO Damon Lee said during the company’s second-quarter conference call that April was the bottom in terms of volume “due to the tariff wars and the level of tariffs in the quarter that we started out with.” While May and June saw a rebound in volumes, “it wasn’t a significant rebound, certainly not enough to offset the pressure that we saw in April,” Lee said. <h3>Frontloading to mute Q3 volumes </h3>Chief Executive David Bozeman said on the call that while some shippers only moved what they needed for back-to-school and other seasonal goods, others decided to frontload as much as they could during the various tariff reprieves. As a result, the traditional third-quarter peak season will likely be muted, Bozeman added. “Although we’re approaching the traditional retail peak season for ocean, the industry may not see traditional peak volumes as some retail customers are working through inventories and being highly selective and strategic about bringing in only the essential products they must import,” he said. CH Robinson said volumes in its surface transportation business rose 1% thanks to growth in its less-than-truckload segment; gross profit for each truck shipment increased 2.5%. While the freight recession for the trucking market is ongoing, Michael Castagnetto, CH Robinson’s president of surface transportation, said load-to-truck ratios are higher, “reflecting an exit of capacity that has brought us closer to better balance in the market.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Ocean and air volumes in CH Robinson’s forwarding business fell in the second quarter amid market volatility caused by US tariff policy. The third-party logistics provider also warned of a slower second half of 2025 as much of the seasonal cargo has already landed in the US and shippers remain cautious in refilling inventories. CH Robinson said late Wednesday that gross profit in its ocean freight business fell 7.5% in the second quarter to $107.9 million, with volumes dropping 4% from a year earlier. Other segments of CH Robinson’s forwarding business grew during the quarter despite tepid volumes. The airfreight business grew 11.5% to $34 million on better pricing, even though volumes fell 12.5%. Gross profit in its customs business grew 31.7% to $26.7 million amid higher profit for each transaction. CH Robinson executives pointed to the rollout of the Trump administration’s tariff policy in April as driving volatility throughout the second quarter. CFO Damon Lee said during the company’s second-quarter conference call that April was the bottom in terms of volume “due to the tariff wars and the level of tariffs in the quarter that we started out with.” While May and June saw a rebound in volumes, “it wasn’t a significant rebound, certainly not enough to offset the pressure that we saw in April,” Lee said. Frontloading to mute Q3 volumes Chief Executive David Bozeman said on the call that while some shippers only moved what they needed for back-to-school and other seasonal goods, others decided to frontload as much as they could during the various tariff reprieves. As a result, the traditional third-quarter peak season will likely be muted, Bozeman added. “Although we’re approaching the traditional retail peak season for ocean, the industry may not see traditional peak volumes as some retail customers are working through inventories and being highly selective and strategic about bringing in only the essential products they must import,” he said. CH Robinson said volumes in its surface transportation business rose 1% thanks to growth in its less-than-truckload segment; gross profit for each truck shipment increased 2.5%. While the freight recession for the trucking market is ongoing, Michael Castagnetto, CH Robinson’s president of surface transportation, said load-to-truck ratios are higher, “reflecting an exit of capacity that has brought us closer to better balance in the market.” Contact Michael Angell at michael.angell@spglobal.com .

Surface

Air Cargo Forwarder News

Forwarding

CH Robinson cautious on second-half outlook amid trade volatility

<div class="phx-topic abstract-wrapper">DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 in an integration process expected to be completed by 2028.</div>

DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 in an integration process expected to be completed by 2028.

<div class="phx-topic">DB Schenker made its first appearance on the financial results of DSV since its $16.25 billion acquisition by the Danish forwarder <a href="https://www.joc.com/article/dsv-embarks-on-mammoth-test-as-db-schenker-integration-begins-ceo-5994493">was finalized on May 1</a>, with CEO Jens Lund on Thursday hailing the positive start to the multi-year integration process. DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 and expects 50% of the integration to be completed by the end of 2026, 75% by the end of 2027 and full integration by 2028, Lund told analysts in a second-quarter earnings call. “I don’t think we could have hoped to be in a better position than where we are,” Lund said. “It means that the real integration in the business kicks off now and we can start to deliver on synergies as well.” The total costs of integrating Schenker will be as high as $1.6 billion by the time the process is completed, with this year’s integration costs expected to reach $380 million. DSV expects total synergies to be near $1.3 billion, with DB Schenker this year generating synergies of $76 million to $92 million. For a second quarter Lund described as both “extraordinary” and “unpredictable,” DSV reported revenue of $9.5 billion, down 1.1% year over year as integration costs and foreign exchange headwinds, mainly in the air and sea division, impacted the top line. Second-quarter gross profit of $2.6 billion was up 2.4%, earnings before interest and taxes (EBIT) fell 4.6% to $722 million and net profit was down 13% at $360 million. Gross profit in the air division was up 8.8% in the second quarter at $656 million, with overall volume up 46% year over year as Schenker contributed 168,000 tons of air freight to DSV’s 341,000 tons. In the sea division, second-quarter gross profit rose 9.5% to $641 million, boosted by Schenker’s contribution of $143 million, while volume improved 43% to 950,000 tons. Schenker business generated 271,000 TEUs in May and June. Road division business was heavily impacted by the weak automotive sector, with revenue of $3.1 billion down 4.1%, gross profit falling 7.5% to $650 million and EBIT plunging 29% to $80 million. While Schenker contributed positively to the division’s earnings, the performance was negatively affected by the overall low activity level and weak market conditions within some markets in Europe and the US. The contract logistics unit had a similarly dismal quarter as the low utilization of capacity and an increasing cost base related to new warehouses dragged down revenue and profit. Revenue was down 15% at $1.5 billion, gross profit fell 3.7% to $707 million and EBIT was down 41.6% at $110 million. DSV’s outlook for the full year remained unchanged, with EBIT forecast to be between $2.9 billion and $3.93 billion. “The current uncertainties related to trade tariffs, the geopolitical landscape, including the Red Sea situation, and macroeconomic factors, which all can impact the global trading environment and activity level, remain uncertain, and unforeseen changes may impact our financial expectations,” DSV said in its earnings statement. <h3>Little business overlap </h3>In an interview with the Journal of Commerce Thursday, DSV CFO Michael Ebbe said as the integration process moved forward, there was surprisingly little business overlap found between the two forwarders. “We had heard there were some customers on both sides but found that it was rather limited compared to what we initially expected,” Ebbe said. “There are only a few customers where there is truly an overlap, and we’ve not yet had any of those saying we have too large a share of wallet,” he added. “So that means that we can mitigate that risk quite easily.” Ebbe said that although there was not a loss of many customers during the acquisition process, there was significant “downtrading” in verticals such as consumer and automotive. “You can argue that we lose volume, but most of that is due to the market and how it has developed,” he said, noting that DB Schenker was far more exposed to the automotive market than DSV. “If we had BMW as a customer, we would not have lost it, but given that they sell fewer cars, they would be downtrading, and that has an impact,” Ebbe said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

DB Schenker made its first appearance on the financial results of DSV since its $16.25 billion acquisition by the Danish forwarder was finalized on May 1 , with CEO Jens Lund on Thursday hailing the positive start to the multi-year integration process. DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 and expects 50% of the integration to be completed by the end of 2026, 75% by the end of 2027 and full integration by 2028, Lund told analysts in a second-quarter earnings call. “I don’t think we could have hoped to be in a better position than where we are,” Lund said. “It means that the real integration in the business kicks off now and we can start to deliver on synergies as well.” The total costs of integrating Schenker will be as high as $1.6 billion by the time the process is completed, with this year’s integration costs expected to reach $380 million. DSV expects total synergies to be near $1.3 billion, with DB Schenker this year generating synergies of $76 million to $92 million. For a second quarter Lund described as both “extraordinary” and “unpredictable,” DSV reported revenue of $9.5 billion, down 1.1% year over year as integration costs and foreign exchange headwinds, mainly in the air and sea division, impacted the top line. Second-quarter gross profit of $2.6 billion was up 2.4%, earnings before interest and taxes (EBIT) fell 4.6% to $722 million and net profit was down 13% at $360 million. Gross profit in the air division was up 8.8% in the second quarter at $656 million, with overall volume up 46% year over year as Schenker contributed 168,000 tons of air freight to DSV’s 341,000 tons. In the sea division, second-quarter gross profit rose 9.5% to $641 million, boosted by Schenker’s contribution of $143 million, while volume improved 43% to 950,000 tons. Schenker business generated 271,000 TEUs in May and June. Road division business was heavily impacted by the weak automotive sector, with revenue of $3.1 billion down 4.1%, gross profit falling 7.5% to $650 million and EBIT plunging 29% to $80 million. While Schenker contributed positively to the division’s earnings, the performance was negatively affected by the overall low activity level and weak market conditions within some markets in Europe and the US. The contract logistics unit had a similarly dismal quarter as the low utilization of capacity and an increasing cost base related to new warehouses dragged down revenue and profit. Revenue was down 15% at $1.5 billion, gross profit fell 3.7% to $707 million and EBIT was down 41.6% at $110 million. DSV’s outlook for the full year remained unchanged, with EBIT forecast to be between $2.9 billion and $3.93 billion. “The current uncertainties related to trade tariffs, the geopolitical landscape, including the Red Sea situation, and macroeconomic factors, which all can impact the global trading environment and activity level, remain uncertain, and unforeseen changes may impact our financial expectations,” DSV said in its earnings statement. Little business overlap In an interview with the Journal of Commerce Thursday, DSV CFO Michael Ebbe said as the integration process moved forward, there was surprisingly little business overlap found between the two forwarders. “We had heard there were some customers on both sides but found that it was rather limited compared to what we initially expected,” Ebbe said. “There are only a few customers where there is truly an overlap, and we’ve not yet had any of those saying we have too large a share of wallet,” he added. “So that means that we can mitigate that risk quite easily.” Ebbe said that although there was not a loss of many customers during the acquisition process, there was significant “downtrading” in verticals such as consumer and automotive. “You can argue that we lose volume, but most of that is due to the market and how it has developed,” he said, noting that DB Schenker was far more exposed to the automotive market than DSV. “If we had BMW as a customer, we would not have lost it, but given that they sell fewer cars, they would be downtrading, and that has an impact,” Ebbe said. Contact Greg Knowler at greg.knowler@spglobal.com .

Supply chain

DB Schenker adds to DSV coffers as multi-year integration begins

<div class="phx-topic abstract-wrapper">Development of the new terminal comes as gains in transshipment volumes are outpacing the increase in gateway cargo at Busan, where transshipment business has been bolstered by the launch of the Gemini Cooperation earlier this year. </div>

Development of the new terminal comes as gains in transshipment volumes are outpacing the increase in gateway cargo at Busan, where transshipment business has been bolstered by the launch of the Gemini Cooperation earlier this year.

<div class="phx-topic">The South Korean port of Busan will strengthen its position as North Asia’s transshipment hub with two initiatives involving development of a $573 million feeder terminal and the launch of a real-time, data-sharing portal, maritime officials said. The terminal, which will have annual capacity of about 1.5 million TEUs, will be developed by Busan Newport One-stop Terminal Company after it was chosen by South Korea’s Ministry of Oceans and Fisheries to enter exclusive talks to develop the 4 million-square-foot complex, due to open by 2030. The facility will have two 2,000-TEU feeder berths and a 30,000-deadweight-metric-ton (DWT) breakbulk and general cargo berth that will be built adjacent to Busan New Port South Container Terminal. Kim Seong-beom, deputy minister of Oceans and Fisheries, said the new terminal will “enhance the transshipment competitiveness of Busan.” Lee Eung-hyuk, Busan Port Authority’s (BPA’s) director of international logistics, said the state-owned agency is also developing Port-i, a real-time data-sharing portal to improve the movement and monitoring of transshipment containers for inbound cargo and inter-terminal transfers. Highlighting the potential for Port-i to increase transshipment volumes, Lee pointed out that Mediterranean Shipping Co. handled 4 million TEUs through Busan last year, 80% of which was transshipment with Busan being the last or first port call. “Many other carriers would follow suit if we simplified transshipment monitoring systems,” Lee told the Journal of Commerce. BPA hopes to complete the current trial stage by the end of this year, Lee said, adding BPA will own and manage the port community system to overcome the reluctance of shippers and carriers to file sensitive information with commercial ventures. “Most port community systems fail because many stakeholders like carriers, shippers and terminal operators normally do not want to share information,” he said. Meanwhile, development of the new terminal comes as growth in transshipment volumes is outpacing the increase in gateway cargo at Busan. Lee said transshipment volumes surged 9% last year to 13.5 million TEUs to account for 55% of Busan’s total volumes of 24.4 million TEUs, while gateway volumes rose just 1.5%. Lee pointed out the launch of Gemini Cooperation last February has bolstered Busan’s transshipment growth ambitions by reducing transit times for Asia-Europe cargo for shippers in North Asia. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

The South Korean port of Busan will strengthen its position as North Asia’s transshipment hub with two initiatives involving development of a $573 million feeder terminal and the launch of a real-time, data-sharing portal, maritime officials said. The terminal, which will have annual capacity of about 1.5 million TEUs, will be developed by Busan Newport One-stop Terminal Company after it was chosen by South Korea’s Ministry of Oceans and Fisheries to enter exclusive talks to develop the 4 million-square-foot complex, due to open by 2030. The facility will have two 2,000-TEU feeder berths and a 30,000-deadweight-metric-ton (DWT) breakbulk and general cargo berth that will be built adjacent to Busan New Port South Container Terminal. Kim Seong-beom, deputy minister of Oceans and Fisheries, said the new terminal will “enhance the transshipment competitiveness of Busan.” Lee Eung-hyuk, Busan Port Authority’s (BPA’s) director of international logistics, said the state-owned agency is also developing Port-i, a real-time data-sharing portal to improve the movement and monitoring of transshipment containers for inbound cargo and inter-terminal transfers. Highlighting the potential for Port-i to increase transshipment volumes, Lee pointed out that Mediterranean Shipping Co. handled 4 million TEUs through Busan last year, 80% of which was transshipment with Busan being the last or first port call. “Many other carriers would follow suit if we simplified transshipment monitoring systems,” Lee told the Journal of Commerce. BPA hopes to complete the current trial stage by the end of this year, Lee said, adding BPA will own and manage the port community system to overcome the reluctance of shippers and carriers to file sensitive information with commercial ventures. “Most port community systems fail because many stakeholders like carriers, shippers and terminal operators normally do not want to share information,” he said. Meanwhile, development of the new terminal comes as growth in transshipment volumes is outpacing the increase in gateway cargo at Busan. Lee said transshipment volumes surged 9% last year to 13.5 million TEUs to account for 55% of Busan’s total volumes of 24.4 million TEUs, while gateway volumes rose just 1.5%. Lee pointed out the launch of Gemini Cooperation last February has bolstered Busan’s transshipment growth ambitions by reducing transit times for Asia-Europe cargo for shippers in North Asia. Contact Keith Wallis at keithwallis@hotmail.com .

Maritime

Container lines

Port infrastructure

Marine terminals

International ports

Busan aims to boost transshipment volumes with new $573 million feeder terminal

<div class="phx-topic abstract-wrapper">Well-financed LTL trucking companies are investing in network expansion despite flat revenues and falling shipment counts as shippers demand more speed. </div>

Well-financed LTL trucking companies are investing in network expansion despite flat revenues and falling shipment counts as shippers demand more speed.

<div class="phx-topic">A long-term realignment of the US less-than-truckload (LTL) sector is continuing as LTL carriers expand their networks despite weak demand for palletized freight. Former Yellow-owned facilities continue to be brought back online, by both long-haul and regional carriers, two years after Yellow’s bankruptcy closed more than 200 terminals. Regional and long-haul LTL companies alike are not just adding terminals, but lanes and services as well as the battle to win a diminishing amount of daily shipments intensifies. “Freight is not seeking carriers, so carriers need to seek freight,” Chris Jamroz, executive chairman and CEO of Roadrunner, told the Journal of Commerce. Freight volumes may be low, but the speed of the LTL business is picking up, he noted. “We see a significant migration away from a time-deferred market,” Jamroz said. “Shippers cannot tolerate delays, and people are looking for more time-definite guarantees.” Roadrunner, based in the Chicago area, added 100 new lanes to its network this month — many of them shorter-haul lanes connecting the Midwest to other regions. It also opened a hub in Kansas City, Missouri. “We added 20% to our existing portfolio of guaranteed [on-time delivery] lanes,” Jamroz said. “We continue to expand geographically. We opened a lot of new lanes that are shorter in mileage than our average lane,” especially with the Midwest. Roadrunner isn’t the only LTL carrier focusing on the Midwest, where the collapse of Yellow brought down regional Midwestern LTL provider Holland, creating a gap still unfilled. Northeast regional carrier A. Duie Pyle this month opened terminals in Columbus and Toledo, Ohio, strengthening next-day LTL service between Ohio and the mid-Atlantic and Northeast. “We’ll open [a terminal in] Cincinnati probably in late September or early October,” said John Luciani, COO of LTL Solutions for Pyle. “I feel bullish about that. That will complete full state coverage in Ohio.” But it’s the speed that counts for Pyle, as much as the coverage. Previously, West Chester, Pennsylvania-based Pyle partnered with Midwestern carrier Dayton Freight Lines to move freight from Ohio to Pennsylvania, Maryland, Washington, DC, and Virginia, Luciani said. “The best service we were going to provide through partnership was two days and competition was overnight” from the Midwest to East Coast, he said. Based on data from SMC3, Luciani estimates only 44% of the shipments moved daily from Ohio to the “Mid-Atlantic Corridor” are delivered the next day. “We see that as an opportunity,” he said. “We have customers who said if we expanded into Columbus or Toledo they would reward us with business.” <h3>Waiting for wheels to turn </h3>More business is what LTL carriers want. Public and privately-owned carriers alike say freight volumes are down year over year, and there’s no immediate sign they will rise. “We’ve had a few head fakes from an economic standpoint,” Old Dominion Freight Line (ODFL) CFO Adam Satterfield told analysts during a second-quarter earnings call Wednesday. Daily shipments at ODFL, the largest US LTL provider after FedEx Freight, dropped 7.3% in the quarter from a year earlier. “I’d love for revenue to be higher, and I’d love for this cycle to turn,” Satterfield said. “There have been a couple of times that we felt like it was turning.” Manufacturing may be a cause for some optimism. The S&amp;P Global Purchasing Managers’ Index (PMI) for US manufacturing rose from 52 in May to 52.9 in June, signaling stronger expansion. Manufacturing output increased for the first time since February. The Institute for Supply Management (ISM) PMI remains in contraction, although it improved from a reading of 48.5 in May to 49 in June. The threat of higher US tariffs has been a drag on industrial production and freight, Satterfield said. “It’s hard if you’re a manufacturer, for example, to figure out what the cost structure is going to be when you don’t really know what the final tariff cost might be,” he said. “I think that’s something that we’ve had a lot of customers trying to figure out.” Satterfield said he feels the US economy is closer to improvement, “but we want to turn that feeling into true freight and see it coming on board.” XPO, the fourth-largest US LTL provider, opened large terminals in Carlisle, Pennsylvania, and Greensboro, North Carolina, in the first half of 2025 despite a decline in volume. XPO’s daily shipment count dropped 5.1% year over year to 50,782 in the second quarter. The Carlisle terminal has 281 doors, while the Greensboro facility, located in Kernersville between Greensboro and Winston-Salem, has 333 doors. Both were among the 28 terminals XPO acquired from bankrupt Yellow. XPO also added almost 500 tractors to its fleet in the second quarter as it reduced outsourced transportation to 6.8% of total fleet mileage. The Greenwich, Connecticut-based carrier added more than 5,000 small business customers in the first half of 2025. Expansion during a downcycle is not a luxury but a necessity, XPO CEO Mario Harik said. “You cannot invest in your network when the upcycle starts, it will be too late,” Harik told the Journal of Commerce. “Capacity right now is about 95% of what it was when Yellow was in operation,” he said. “If the upcycle starts next year, there will be less capacity than the market will need. That will be the tailwind of all tailwinds for LTL.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

A long-term realignment of the US less-than-truckload (LTL) sector is continuing as LTL carriers expand their networks despite weak demand for palletized freight. Former Yellow-owned facilities continue to be brought back online, by both long-haul and regional carriers, two years after Yellow’s bankruptcy closed more than 200 terminals. Regional and long-haul LTL companies alike are not just adding terminals, but lanes and services as well as the battle to win a diminishing amount of daily shipments intensifies. “Freight is not seeking carriers, so carriers need to seek freight,” Chris Jamroz, executive chairman and CEO of Roadrunner, told the Journal of Commerce. Freight volumes may be low, but the speed of the LTL business is picking up, he noted. “We see a significant migration away from a time-deferred market,” Jamroz said. “Shippers cannot tolerate delays, and people are looking for more time-definite guarantees.” Roadrunner, based in the Chicago area, added 100 new lanes to its network this month — many of them shorter-haul lanes connecting the Midwest to other regions. It also opened a hub in Kansas City, Missouri. “We added 20% to our existing portfolio of guaranteed [on-time delivery] lanes,” Jamroz said. “We continue to expand geographically. We opened a lot of new lanes that are shorter in mileage than our average lane,” especially with the Midwest. Roadrunner isn’t the only LTL carrier focusing on the Midwest, where the collapse of Yellow brought down regional Midwestern LTL provider Holland, creating a gap still unfilled. Northeast regional carrier A. Duie Pyle this month opened terminals in Columbus and Toledo, Ohio, strengthening next-day LTL service between Ohio and the mid-Atlantic and Northeast. “We’ll open [a terminal in] Cincinnati probably in late September or early October,” said John Luciani, COO of LTL Solutions for Pyle. “I feel bullish about that. That will complete full state coverage in Ohio.” But it’s the speed that counts for Pyle, as much as the coverage. Previously, West Chester, Pennsylvania-based Pyle partnered with Midwestern carrier Dayton Freight Lines to move freight from Ohio to Pennsylvania, Maryland, Washington, DC, and Virginia, Luciani said. “The best service we were going to provide through partnership was two days and competition was overnight” from the Midwest to East Coast, he said. Based on data from SMC3, Luciani estimates only 44% of the shipments moved daily from Ohio to the “Mid-Atlantic Corridor” are delivered the next day. “We see that as an opportunity,” he said. “We have customers who said if we expanded into Columbus or Toledo they would reward us with business.” Waiting for wheels to turn More business is what LTL carriers want. Public and privately-owned carriers alike say freight volumes are down year over year, and there’s no immediate sign they will rise. “We’ve had a few head fakes from an economic standpoint,” Old Dominion Freight Line (ODFL) CFO Adam Satterfield told analysts during a second-quarter earnings call Wednesday. Daily shipments at ODFL, the largest US LTL provider after FedEx Freight, dropped 7.3% in the quarter from a year earlier. “I’d love for revenue to be higher, and I’d love for this cycle to turn,” Satterfield said. “There have been a couple of times that we felt like it was turning.” Manufacturing may be a cause for some optimism. The S&P Global Purchasing Managers’ Index (PMI) for US manufacturing rose from 52 in May to 52.9 in June, signaling stronger expansion. Manufacturing output increased for the first time since February. The Institute for Supply Management (ISM) PMI remains in contraction, although it improved from a reading of 48.5 in May to 49 in June. The threat of higher US tariffs has been a drag on industrial production and freight, Satterfield said. “It’s hard if you’re a manufacturer, for example, to figure out what the cost structure is going to be when you don’t really know what the final tariff cost might be,” he said. “I think that’s something that we’ve had a lot of customers trying to figure out.” Satterfield said he feels the US economy is closer to improvement, “but we want to turn that feeling into true freight and see it coming on board.” XPO, the fourth-largest US LTL provider, opened large terminals in Carlisle, Pennsylvania, and Greensboro, North Carolina, in the first half of 2025 despite a decline in volume. XPO’s daily shipment count dropped 5.1% year over year to 50,782 in the second quarter. The Carlisle terminal has 281 doors, while the Greensboro facility, located in Kernersville between Greensboro and Winston-Salem, has 333 doors. Both were among the 28 terminals XPO acquired from bankrupt Yellow. XPO also added almost 500 tractors to its fleet in the second quarter as it reduced outsourced transportation to 6.8% of total fleet mileage. The Greenwich, Connecticut-based carrier added more than 5,000 small business customers in the first half of 2025. Expansion during a downcycle is not a luxury but a necessity, XPO CEO Mario Harik said. “You cannot invest in your network when the upcycle starts, it will be too late,” Harik told the Journal of Commerce. “Capacity right now is about 95% of what it was when Yellow was in operation,” he said. “If the upcycle starts next year, there will be less capacity than the market will need. That will be the tailwind of all tailwinds for LTL.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

LTL carriers expanding US networks despite low freight demand

<div class="phx-topic abstract-wrapper">Local liner sources who spoke with the Journal of Commerce signaled that carriers would cancel increase notices scheduled for Aug. 1 and instead extend existing prices through the first half of the month.</div>

Local liner sources who spoke with the Journal of Commerce signaled that carriers would cancel increase notices scheduled for Aug. 1 and instead extend existing prices through the first half of the month.

<div class="phx-topic">Container carriers covering Indian westbound trades to the US are reconsidering the rate increases they had lined up for August because of an uncertain market environment stemming from the new tariffs that will hit the market. Local liner sources who spoke with the Journal of Commerce signaled that carriers would cancel increase notices scheduled for Aug. 1 and instead extend existing prices through the first half of the month after no noticeable volume gains were seen in the early days of peak shipping season. “There is just no room to push rates higher in the near term,” said a sales executive at a European carrier who asked not to be identified. “At best, we might be able to hold current rates somewhat firm for now.” Sources said that a significant cut in capacity from multiple blank sailings — reportedly six void calls across three India-US East Coast connections in July — has effectively helped carriers fill vessels to their full allocations in recent weeks. But with no major schedule disruptions reported for August, barring just two anticipated skips on Ocean Network Express’ (ONE’s) WIN loop, lead carriers remain skeptical about their ability to reach allocation targets without downward rate corrections. Asian carriers, mainly Cosco Shipping and subsidiary OOCL, have already dropped spot rates on the trade lane — down to between $2,000 and $2,100 per FEU versus the $2,500 to $2,800 price range held by their European peers, sources say. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged India-US East Coast spot rates at $2,633 per FEU as of July 30. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="56199e2b-5df4-468f-a149-b18ae7c32e51"></dynamic-object></div>Meanwhile, a 25% US tariff on Indian-origin goods that begins Aug. 1, plus an unspecified penalty for trading with Russia, has amplified those trade concerns. Tariff stability, now key to India-US trade expansion, hinges on a new bilateral trade deal both sides have been negotiating over the past few months, with breakthroughs ostensibly stalled by certain market access differences. Another round of talks is now scheduled for late August. Amid lingering uncertainty, many US buyers are said to be holding back on lifting Indian shipments already on order and/or placing new procurement plans. Sunil Vaswani, executive director of the Container Shipping Lines Association (India), believes the higher scale of US tariffs could significantly hurt Indian export flows, primarily pharmaceuticals, seafood and textiles and apparel. “The situation is being closely watched by the trade, including carriers,” he said. Other industry sources echoed that sentiment. “Indian exporters and US importers are now unable to accurately calculate landed costs or plan how to absorb the elevated tariff burden,” said Ajay Sahai, director-general at the Federation of Indian Exports Organization. “This lack of predictability is disrupting supply chain planning and pricing decisions.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Container carriers covering Indian westbound trades to the US are reconsidering the rate increases they had lined up for August because of an uncertain market environment stemming from the new tariffs that will hit the market. Local liner sources who spoke with the Journal of Commerce signaled that carriers would cancel increase notices scheduled for Aug. 1 and instead extend existing prices through the first half of the month after no noticeable volume gains were seen in the early days of peak shipping season. “There is just no room to push rates higher in the near term,” said a sales executive at a European carrier who asked not to be identified. “At best, we might be able to hold current rates somewhat firm for now.” Sources said that a significant cut in capacity from multiple blank sailings — reportedly six void calls across three India-US East Coast connections in July — has effectively helped carriers fill vessels to their full allocations in recent weeks. But with no major schedule disruptions reported for August, barring just two anticipated skips on Ocean Network Express’ (ONE’s) WIN loop, lead carriers remain skeptical about their ability to reach allocation targets without downward rate corrections. Asian carriers, mainly Cosco Shipping and subsidiary OOCL, have already dropped spot rates on the trade lane — down to between $2,000 and $2,100 per FEU versus the $2,500 to $2,800 price range held by their European peers, sources say. Platts, a sister company of the Journal of Commerce within S&P Global, pegged India-US East Coast spot rates at $2,633 per FEU as of July 30. Meanwhile, a 25% US tariff on Indian-origin goods that begins Aug. 1, plus an unspecified penalty for trading with Russia, has amplified those trade concerns. Tariff stability, now key to India-US trade expansion, hinges on a new bilateral trade deal both sides have been negotiating over the past few months, with breakthroughs ostensibly stalled by certain market access differences. Another round of talks is now scheduled for late August. Amid lingering uncertainty, many US buyers are said to be holding back on lifting Indian shipments already on order and/or placing new procurement plans. Sunil Vaswani, executive director of the Container Shipping Lines Association (India), believes the higher scale of US tariffs could significantly hurt Indian export flows, primarily pharmaceuticals, seafood and textiles and apparel. “The situation is being closely watched by the trade, including carriers,” he said. Other industry sources echoed that sentiment. “Indian exporters and US importers are now unable to accurately calculate landed costs or plan how to absorb the elevated tariff burden,” said Ajay Sahai, director-general at the Federation of Indian Exports Organization. “This lack of predictability is disrupting supply chain planning and pricing decisions.” Contact Bency Mathew at bencyvmathew@gmail.com .

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Trans-Pacific

India-US carriers likely to kill August rate hikes amid new tariff uncertainty

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. 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