<div class="phx-topic abstract-wrapper">Yemen has shut down its major seaports after a series of airstrikes from neighboring Saudi Arabia against rebels fighting Yemen’s Western-backed government, according to various reports.</div>

Yemen has shut down its major seaports after a series of airstrikes from neighboring Saudi Arabia against rebels fighting Yemen’s Western-backed government, according to various reports.

<div>Yemen has shut down its major seaports after a series of airstrikes from neighboring Saudi Arabia against rebels fighting Yemen’s Western-backed government, according to various reports.Port of Aden officials, however, have publicly denounced the claims, saying the country’s largest container gateway is still operational despite the crisis.Industry and local reports announced all Yemeni ports had closed Thursday after Saudi and Arab allies bombed sites near the Houthi-held capital of Sanaa. Further south, Houthis and army loyalists Friday continued to battle with militias loyal to Yemen’s President Abd-Rabbu Mansour Hadi near the port city of Aden.The port, strategically located on the...

Yemen has shut down its major seaports after a series of airstrikes from neighboring Saudi Arabia against rebels fighting Yemen’s Western-backed government, according to various reports. Port of Aden officials, however, have publicly denounced the claims, saying the country’s largest container gateway is still operational despite the crisis. Industry and local reports announced all Yemeni ports had closed Thursday after Saudi and Arab allies bombed sites near the Houthi-held capital of Sanaa. Further south, Houthis and army loyalists Friday continued to battle with militias loyal to Yemen’s President Abd-Rabbu Mansour Hadi near the port city of Aden. The port, strategically located on the gulf of the same name, is Yemen’s major cargo seaport, and the largest natural deepwater port in the region. It is also home to the Aden Container Terminal, the largest container terminal in the Republic of Yemen. According to a Reuters report, industry and local sources have reported Aden, as well as ports in Al Mukalla, Al Mokha and Al Hudaydah, have been closed in the aftermath of the Saudi airstrikes. "All major seaports were shut down on Thursday due to the rising conflict," an anonymous industry source is quoted. Local sources in Yemen have confirmed the closure, Reuters said. The reports fly in the face of statements from some port officials in Yemen, who have argued that terminals were still in operation. “Leadership confirms that the shipping traffic at the Port of Aden is working smoothly and nothing disturbs it,” the port said in a statement Thursday. “The leadership denies news from some websites about any threats to the port and invited them to be cautious in publishing such news.” Nevertheless, the U.S. Coast Guard has issued restrictions on certain vessels arriving at U.S. ports from a number of Yemeni gateways that "do not maintain effective anti-terrorism measures", according to a statement. The crisis in Yemen has heightened concerns over the country’s primary export: oil. Yemen exports about 1.4 to 1.5 million barrels of Masila crude each month, largely to China. It is far from being the biggest player in the Mid-East oil market, but the current port shutdown has heightened concerns the Yemeni crisis could stunt oil supplies from the entire region. For years, Yemen has been seen as a proxy battleground for Sunni-dominated Saudi Arabia and Shia Iran, which is suspected of supporting the Houthi rebels. The conflict in the region came to a head this week after President Hadi fled the country by sea Wednesday as Houthi Shiite rebels and their allies moved on his last refuge in the south, captured its airport and put a bounty on the president’s head. Although Yemen produces only a small amount of oil itself, Saudi Arabia and the Gulf Cooperation Council states are nervous of any conflict that could affect the Gulf of Aden, which sees roughly 3.8 million barrels of oil pass through its waters daily. The unrest in the country, which some fear could turn into civil war or an even wider regional conflict, prompted a 5 percent spike in the price of Brent crude Thursday . An analyst for Verisk Maplecroft quoted by Reuters Thursday described the oil price hike as “a bit of an overreaction” but warned that the Houthi takeover had “significant geopolitical repercussions in that it adds to Iran’s growing regional clout.”

International ports

Yemen shuts down ports after Saudi airstrike

<div class="phx-topic abstract-wrapper"> As a result of that heightened overcapacity, spot rates on the trade lane are at their lowest since February. </div>

As a result of that heightened overcapacity, spot rates on the trade lane are at their lowest since February.

Feature image

<div class="phx-topic">A more settled capacity situation on the India-US East Coast trade due to fewer blank sailings in November has upped the rate pressure on ocean carriers in the market that have been squeezed by US tariffs. With the exception of two calls voided by CMA CGM’s Indamex loop, westbound sailings out of Nhava Sheva/Mundra for the month are known to be on normal schedule across the premier services operated by Hapag-Lloyd, Mediterranean Shipping Co. and Maersk. As a result of that heightened overcapacity, spot rates on the trade lane are at their lowest since February. Platts, a sister company of the Journal of Commerce within S&amp;P Global, put India-USEC spot rates at $1,450 per FEU as of Nov. 18, a 9% decline on the week and the lowest reading since $1,330 per FEU on Feb. 21. Local forwarder sources have reported carrier quotes even lower, in the range of $1,200 to $1,300 per FEU for bookings from Nhava Sheva to New York. That’s a drop of $200 to $300 per FEU from the late-Oct. trendline. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="56199e2b-5df4-468f-a149-b18ae7c32e51"></dynamic-object></div> Sources noted that while cargo bookings have weakened, overcapacity is the bigger factor pushing rates lower and prompting carriers to undercut each other in an attempt to keep vessel liftings as close as possible to their declared allocations. “Capacity utilization for USEC sailings out of West India has generally dipped to between 60% to 70% from the normal 80% to 90% level,” a Nhava Sheva-based vessel operations executive at a European liner who didn’t want to be identified told the Journal of Commerce. “Most carriers are now weighing cost control measures to tighten operating expenses.” Additionally, carrier sources are pinning their hopes for a rebound in volumes on an early breakthrough in bilateral trade negotiations between New Delhi and Washington. But they believe a return to the Red Sea and Suez Canal, on which there are some tentative signals, will create a fresh set of capacity problems to solve. “The speed of (Suez) return will determine whether the industry experiences renewed volatility or a more balanced adjustment,” Supal Shah, CEO of Sarjak Container Lines, noted. “A measured, well-sequenced return supports stability across the supply chain.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ae1df54b-4003-46b5-a8c3-e0d35707e941"></dynamic-object></div>Meanwhile, Indian goods exports in October took a severe beating, falling nearly 12% by value year over year with exports to the US down 7%, according to provisional official data. “The decline in merchandise exports was primarily driven by a sharper fall in several dominant export sectors,” S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. Indian exports to the USEC came in at just under 70,000 TEUs in October, down from 87,970 TEUs in September, according to PIERS, a sister product of the Journal of Commerce. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

A more settled capacity situation on the India-US East Coast trade due to fewer blank sailings in November has upped the rate pressure on ocean carriers in the market that have been squeezed by US tariffs. With the exception of two calls voided by CMA CGM’s Indamex loop, westbound sailings out of Nhava Sheva/Mundra for the month are known to be on normal schedule across the premier services operated by Hapag-Lloyd, Mediterranean Shipping Co. and Maersk. As a result of that heightened overcapacity, spot rates on the trade lane are at their lowest since February. Platts, a sister company of the Journal of Commerce within S&P Global, put India-USEC spot rates at $1,450 per FEU as of Nov. 18, a 9% decline on the week and the lowest reading since $1,330 per FEU on Feb. 21. Local forwarder sources have reported carrier quotes even lower, in the range of $1,200 to $1,300 per FEU for bookings from Nhava Sheva to New York. That’s a drop of $200 to $300 per FEU from the late-Oct. trendline. Sources noted that while cargo bookings have weakened, overcapacity is the bigger factor pushing rates lower and prompting carriers to undercut each other in an attempt to keep vessel liftings as close as possible to their declared allocations. “Capacity utilization for USEC sailings out of West India has generally dipped to between 60% to 70% from the normal 80% to 90% level,” a Nhava Sheva-based vessel operations executive at a European liner who didn’t want to be identified told the Journal of Commerce. “Most carriers are now weighing cost control measures to tighten operating expenses.” Additionally, carrier sources are pinning their hopes for a rebound in volumes on an early breakthrough in bilateral trade negotiations between New Delhi and Washington. But they believe a return to the Red Sea and Suez Canal, on which there are some tentative signals, will create a fresh set of capacity problems to solve. “The speed of (Suez) return will determine whether the industry experiences renewed volatility or a more balanced adjustment,” Supal Shah, CEO of Sarjak Container Lines, noted. “A measured, well-sequenced return supports stability across the supply chain.” Meanwhile, Indian goods exports in October took a severe beating, falling nearly 12% by value year over year with exports to the US down 7%, according to provisional official data. “The decline in merchandise exports was primarily driven by a sharper fall in several dominant export sectors,” S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. Indian exports to the USEC came in at just under 70,000 TEUs in October, down from 87,970 TEUs in September, according to PIERS, a sister product of the Journal of Commerce. Contact Bency Mathew at bencyvmathew@gmail.com.

Container lines

Container Shipping News

Maritime

Steadier capacity in November adds to India-USEC ocean pricing pressure

<div class="phx-topic abstract-wrapper">The carrier’s first direct service to Halifax comes as Canada looks to pivot its trade networks and as low water levels affect Montreal’s container business.</div>

The carrier’s first direct service to Halifax comes as Canada looks to pivot its trade networks and as low water levels affect Montreal’s container business.

<div class="phx-topic">OOCL is adding the Port of Halifax to a trans-Atlantic Mediterranean service, marking the carrier’s first direct service to the port. The new port call comes as Canada looks outside the US for more trade and as low water levels on the St. Lawrence River make Halifax an offtake point for Montreal-bound cargo. OOCL said its West Mediterranean America service from Italy and Spain would add Halifax as the first call before US East Coast ports, noting in a statement the move “unlocks direct access to Montreal and Toronto.” The OOCL service joins three other Mediterranean-North American East Coast services that also call Halifax; this will be the Hong Kong-based carrier’s first service to the port. While Halifax’s overall cargo volumes have yet to approach their 2022 peak, the port has seen some uptick this year. First-half 2025 import volumes are up 13.6% to 131,980 TEUs and export volumes have risen 8.9% to 126,937 TEUs compared to the first half of 2024. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="09c4541c-c611-4969-af40-74647b74b5fd"></dynamic-object></div>Halifax, meanwhile, has been providing relief to the Port of Montreal this year due to navigational challenges on the St. Lawrence Seaway. One portion of Montreal’s harbor has been hovering at about a 17-foot depth since September, according to the International Lake Ontario-St. Lawrence River Board, among the historical lows recorded for the area. “For the carriers, the biggest problem is low water on the Seaway,” Grace Liang, president of OOCL Canada, said at a conference in Toronto last month. “The impact of low water is pretty substantial.” Paul Bird, chief commercial officer of the Montreal Port Authority, said Montreal’s current water levels are part of the La Niña weather cycle that occurs approximately every 12 years. As a result, container ships have to offload cargo prior to entering the Seaway to reduce their draft, which serves as a temporary measure until water levels rise again. “Carriers have to top off either at Saint John or Halifax before they come into Montreal,” Bird said at the Toronto conference. “But there’s a cycle here. We don’t expect these low water levels to return for another 10 or 12 years.” <h3>Canadian ports handled frontloaded imports </h3>Liang said at the conference that Canada’s ports handled frontloaded imports, either from US-bound freight or as inputs for other Canadian goods shipped to the US. But she said Canadian ports are likely to see the same cargo slowdown as US ports in the fourth quarter. “When it comes to demand, it’s affected by the trade wars and tariffs,” Liang said. “We’ve seen a lot of frontloading both in the US and Canada.” In the long term, Canada’s international trade also faces a restructuring that favors enlarged port coverage. Back in March, Prime Minister Mark Carney said Canada’s traditional reliance on the US export market is now over due to the tariffs imposed by the Trump administration. Carney’s 2025 budget proposes C$5 billion in spending for Transport Canada to develop new trade and infrastructure projects, as well as other funds to help Canadian businesses tap overseas markets. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

OOCL is adding the Port of Halifax to a trans-Atlantic Mediterranean service, marking the carrier’s first direct service to the port. The new port call comes as Canada looks outside the US for more trade and as low water levels on the St. Lawrence River make Halifax an offtake point for Montreal-bound cargo. OOCL said its West Mediterranean America service from Italy and Spain would add Halifax as the first call before US East Coast ports, noting in a statement the move “unlocks direct access to Montreal and Toronto.” The OOCL service joins three other Mediterranean-North American East Coast services that also call Halifax; this will be the Hong Kong-based carrier’s first service to the port. While Halifax’s overall cargo volumes have yet to approach their 2022 peak, the port has seen some uptick this year. First-half 2025 import volumes are up 13.6% to 131,980 TEUs and export volumes have risen 8.9% to 126,937 TEUs compared to the first half of 2024. Halifax, meanwhile, has been providing relief to the Port of Montreal this year due to navigational challenges on the St. Lawrence Seaway. One portion of Montreal’s harbor has been hovering at about a 17-foot depth since September, according to the International Lake Ontario-St. Lawrence River Board, among the historical lows recorded for the area. “For the carriers, the biggest problem is low water on the Seaway,” Grace Liang, president of OOCL Canada, said at a conference in Toronto last month. “The impact of low water is pretty substantial.” Paul Bird, chief commercial officer of the Montreal Port Authority, said Montreal’s current water levels are part of the La Niña weather cycle that occurs approximately every 12 years. As a result, container ships have to offload cargo prior to entering the Seaway to reduce their draft, which serves as a temporary measure until water levels rise again. “Carriers have to top off either at Saint John or Halifax before they come into Montreal,” Bird said at the Toronto conference. “But there’s a cycle here. We don’t expect these low water levels to return for another 10 or 12 years.” Canadian ports handled frontloaded imports Liang said at the conference that Canada’s ports handled frontloaded imports, either from US-bound freight or as inputs for other Canadian goods shipped to the US. But she said Canadian ports are likely to see the same cargo slowdown as US ports in the fourth quarter. “When it comes to demand, it’s affected by the trade wars and tariffs,” Liang said. “We’ve seen a lot of frontloading both in the US and Canada.” In the long term, Canada’s international trade also faces a restructuring that favors enlarged port coverage. Back in March, Prime Minister Mark Carney said Canada’s traditional reliance on the US export market is now over due to the tariffs imposed by the Trump administration. Carney’s 2025 budget proposes C$5 billion in spending for Transport Canada to develop new trade and infrastructure projects, as well as other funds to help Canadian businesses tap overseas markets. Contact Michael Angell at michael.angell@spglobal.com .

Trans-Atlantic

North American ports

OOCL adds Halifax call to trans-Atlantic Med service

<div class="phx-topic abstract-wrapper">The consortium of nine liner carriers has launched its first product to facilitate the adoption of electronic bills of lading and other digital standards it is developing.</div>

The consortium of nine liner carriers has launched its first product to facilitate the adoption of electronic bills of lading and other digital standards it is developing.

<div class="phx-topic">The Digital Container Shipping Association (DCSA) has launched an identity management tool aimed at helping companies involved in global shipping and international trade perform internal compliance checks and vet prospective business partners. The product, called Identity Exchange, expands the reach of the DCSA, a nonprofit consortium of nine container lines whose broader goal is to standardize and digitize the shipping industry. Niels Nuyens, DCSA’s chief product officer, told the Journal of Commerce Tuesday the new product was developed over the past 12 to 15 months as the group was doing work to <a href="https://www.joc.com/article/key-supply-chain-stakeholders-commit-to-electronic-bills-of-lading-5226286">advance electronic bill of lading</a> (eBL) adoption among members and their customers. “As part of shipping and international trade, it’s necessary to be 100% sure about who you’re working with,” Nuyens said. “We learned it’s being done differently across different organizations and felt there was a way to provide better onboarding and compliance processes.” Electronic bill of lading adoption is contingent on making the issuing and transmitting of electronic documents more streamlined, and that quickly led to a discussion around ensuring that the eBL was being submitted to a trusted party. Bills of lading convey titles to recipients and have associated banking implications for suppliers using letters of credit to fund the manufacturing and transportation of goods. Those conversations with members, forwarders and shippers led DCSA to determine there was no unified identity management process to ensure that customers or partners were compliant with internal controls. The means of checking potential business partners are sometimes sophisticated, involving an identity management system and local teams that can verify entities, and sometimes rudimentary, involving nothing more than a Google search of a prospective partner or customer. The demand for vetting is a result of companies’ internal compliance processes, which, in turn, are often driven by customs or banking regulatory mandates, depending on the industry or country. The patchwork of those requirements creates an uneven landscape where some companies are screening for things such as restricted entities and others lack the means to do so. <h3>Product development part of DCSA strategy </h3>The development of a product is a bit of a new direction for DCSA, which has to this point focused on building industry standards for processes such as tracking and tracing, eBLs, and just-in-time port calls. More recently, the group has <a href="https://www.joc.com/article/dcsa-turns-to-industry-partners-to-drive-shipping-standards-adoption-6070237">built a partnership network</a> of terminals, feeders, freight forwarders, shippers, and tech providers to support the adoption of standards and contribute to what DCSA develops. Nuyens said product development is the third pillar in DCSA’s strategy. The identity product, unlike everything else DCSA has developed to date, is not free to use. Companies wanting to use the exchange pay for a certain number of lookups, with the cost-per-lookup going down based on usage. Nuyens said the revenue from the Identity Exchange will be funneled into DCSA’s other initiatives to promote shipping industry standards. More than 150 early users completed over 30,000 identity checks through Identity Exchange, DCSA said in a statement, with match rates above 95% and reports of less manual review time and stronger data accuracy. DCSA called the development of its first product a move into “digital infrastructure that strengthens trust across the container shipping industry.” The product is intended to be used in any business-to-business situation in shipping or trade, Nuyens said. The ocean carrier members of DCSA are Mediterranean Shipping Co., Hapag-Lloyd, Maersk, CMA CGM, Evergreen, HMM, Yang Ming, Zim Integrated Shipping Services and PIL. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

The Digital Container Shipping Association (DCSA) has launched an identity management tool aimed at helping companies involved in global shipping and international trade perform internal compliance checks and vet prospective business partners. The product, called Identity Exchange, expands the reach of the DCSA, a nonprofit consortium of nine container lines whose broader goal is to standardize and digitize the shipping industry. Niels Nuyens, DCSA’s chief product officer, told the Journal of Commerce Tuesday the new product was developed over the past 12 to 15 months as the group was doing work to advance electronic bill of lading (eBL) adoption among members and their customers. “As part of shipping and international trade, it’s necessary to be 100% sure about who you’re working with,” Nuyens said. “We learned it’s being done differently across different organizations and felt there was a way to provide better onboarding and compliance processes.” Electronic bill of lading adoption is contingent on making the issuing and transmitting of electronic documents more streamlined, and that quickly led to a discussion around ensuring that the eBL was being submitted to a trusted party. Bills of lading convey titles to recipients and have associated banking implications for suppliers using letters of credit to fund the manufacturing and transportation of goods. Those conversations with members, forwarders and shippers led DCSA to determine there was no unified identity management process to ensure that customers or partners were compliant with internal controls. The means of checking potential business partners are sometimes sophisticated, involving an identity management system and local teams that can verify entities, and sometimes rudimentary, involving nothing more than a Google search of a prospective partner or customer. The demand for vetting is a result of companies’ internal compliance processes, which, in turn, are often driven by customs or banking regulatory mandates, depending on the industry or country. The patchwork of those requirements creates an uneven landscape where some companies are screening for things such as restricted entities and others lack the means to do so. Product development part of DCSA strategy The development of a product is a bit of a new direction for DCSA, which has to this point focused on building industry standards for processes such as tracking and tracing, eBLs, and just-in-time port calls. More recently, the group has built a partnership network of terminals, feeders, freight forwarders, shippers, and tech providers to support the adoption of standards and contribute to what DCSA develops. Nuyens said product development is the third pillar in DCSA’s strategy. The identity product, unlike everything else DCSA has developed to date, is not free to use. Companies wanting to use the exchange pay for a certain number of lookups, with the cost-per-lookup going down based on usage. Nuyens said the revenue from the Identity Exchange will be funneled into DCSA’s other initiatives to promote shipping industry standards. More than 150 early users completed over 30,000 identity checks through Identity Exchange, DCSA said in a statement, with match rates above 95% and reports of less manual review time and stronger data accuracy. DCSA called the development of its first product a move into “digital infrastructure that strengthens trust across the container shipping industry.” The product is intended to be used in any business-to-business situation in shipping or trade, Nuyens said. The ocean carrier members of DCSA are Mediterranean Shipping Co., Hapag-Lloyd, Maersk, CMA CGM, Evergreen, HMM, Yang Ming, Zim Integrated Shipping Services and PIL. Contact Eric Johnson at eric.johnson@spglobal.com .

Forwarding

Logistics Technology News

DCSA broadens reach with identity exchange for shipping industry

<div class="phx-topic abstract-wrapper">‘Spectacular’ growth at the Persian Gulf terminal has brought forward expansion plans that will increase handling capacity by almost 50%.</div>

‘Spectacular’ growth at the Persian Gulf terminal has brought forward expansion plans that will increase handling capacity by almost 50%.

<div class="phx-topic">CMA CGM and joint venture partner AD Ports said Tuesday they will add almost 1 million TEUs of capacity to their terminal in Abu Dhabi’s Khalifa Port, with the facility already at full capacity just 11 months after opening. Strong demand since the December 2024 launch of CMA Terminals Khalifa Port brought forward expansion plans by joint venture partners CMA Terminals (70%) and Abu Dhabi-based AD Ports Group (30%). Christine Cabau, executive vice president of operations and assets at CMA CGM, said the growth at the Persian Gulf terminal has been “spectacular.” “After 10 months of operations, the terminal has already reached full capacity and has led us to the decision of accelerating phase two deployment to meet the demand,” Cabau said in a statement. The $115 million cost of the expansion will be shared pro-rata between the partners. It is scheduled for completion in early 2028 and will grow the terminal’s capacity by almost 50% from 1.8 million TEUs to 2.7 million TEUs, increasing Khalifa Port’s overall container handling by 9% to 10.5 million TEUs annually. The work will extend the quay wall length by 50% from 800 meters to 1,200 meters and expand the yard area by more than 40% from 46 hectares to 67 hectares. Advanced reefer racks will be added to support refrigerated container storage. <h3>AD Ports growth </h3>The Khalifa Port expansion comes just a week after AD Ports took a 20% stake in the CMA CGM-operated <a href="https://www.joc.com/article/cma-cgm-accelerates-232-million-syrian-med-port-expansion-project-6066188">Latakia International Container Terminal in Syria</a>. The two companies are also involved in the joint venture development of a multipurpose cargo terminal in Pointe Noire, Republic of Congo. AD Ports acquired Spain’s Noatum Logistics in 2023, and through its strategic partnerships with CMA CGM, the Abu Dhabi group is following in the footsteps of larger Dubai-based neighbor DP World in growing its end-to-end reach across the container shipping sector. Former DB Schenker CEO Jochen Thewes has been appointed CEO of AD Ports’ logistics cluster and will take office in December. Thewes’ role will be “to build on the success of Noatum Logistics ... unlocking the full potential of its integrated trade and logistics ecosystem,” AD Ports said in a statement. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

CMA CGM and joint venture partner AD Ports said Tuesday they will add almost 1 million TEUs of capacity to their terminal in Abu Dhabi’s Khalifa Port, with the facility already at full capacity just 11 months after opening. Strong demand since the December 2024 launch of CMA Terminals Khalifa Port brought forward expansion plans by joint venture partners CMA Terminals (70%) and Abu Dhabi-based AD Ports Group (30%). Christine Cabau, executive vice president of operations and assets at CMA CGM, said the growth at the Persian Gulf terminal has been “spectacular.” “After 10 months of operations, the terminal has already reached full capacity and has led us to the decision of accelerating phase two deployment to meet the demand,” Cabau said in a statement. The $115 million cost of the expansion will be shared pro-rata between the partners. It is scheduled for completion in early 2028 and will grow the terminal’s capacity by almost 50% from 1.8 million TEUs to 2.7 million TEUs, increasing Khalifa Port’s overall container handling by 9% to 10.5 million TEUs annually. The work will extend the quay wall length by 50% from 800 meters to 1,200 meters and expand the yard area by more than 40% from 46 hectares to 67 hectares. Advanced reefer racks will be added to support refrigerated container storage. AD Ports growth The Khalifa Port expansion comes just a week after AD Ports took a 20% stake in the CMA CGM-operated Latakia International Container Terminal in Syria . The two companies are also involved in the joint venture development of a multipurpose cargo terminal in Pointe Noire, Republic of Congo. AD Ports acquired Spain’s Noatum Logistics in 2023, and through its strategic partnerships with CMA CGM, the Abu Dhabi group is following in the footsteps of larger Dubai-based neighbor DP World in growing its end-to-end reach across the container shipping sector. Former DB Schenker CEO Jochen Thewes has been appointed CEO of AD Ports’ logistics cluster and will take office in December. Thewes’ role will be “to build on the success of Noatum Logistics ... unlocking the full potential of its integrated trade and logistics ecosystem,” AD Ports said in a statement. Contact Greg Knowler at greg.knowler@spglobal.com .

CMA CGM to expand Abu Dhabi terminal as capacity maxes out

<div class="phx-topic abstract-wrapper">Cargo owners typically balk at paying more for ocean transport, but the significantly improving schedule reliability from the Maersk and Hapag-Lloyd partnership is getting the attention of the market.</div>

Cargo owners typically balk at paying more for ocean transport, but the significantly improving schedule reliability from the Maersk and Hapag-Lloyd partnership is getting the attention of the market.

<div class="phx-topic">Talk of a premium charge from Gemini Cooperation partners Maersk and Hapag-Lloyd for the superior schedule reliability being achieved by the alliance since its launch in February is receiving a mixed reaction from the market. Executives from the two carriers have recently been extolling the value created by allowing customers to take one or two weeks’ worth of inventory out of their supply chains, but not all shippers are convinced. At a Hamburg conference for beneficial cargo owners (BCOs) organized by shipper network ShiftX last week, attendees appeared to be split into two camps — those who question why they should pay more to have their containers delivered on time, and those who ship products where on-time delivery represents value. “But it’s all about plannability,” Antonios Rigalos, managing partner of ShiftX, told the Journal of Commerce. “BCOs would rather build up inventory than be left with not enough stock, so the transit time is important, but the schedules need to be reliable.” The supply chain director for a European retailer said even though planning was crucial, a premium charge simply for delivering on time in a scheduled weekly service would not be well received. “As long as we can plan, it’s manageable,” the source said. “What doesn’t work is if we plan for 40 days and our containers arrive in 70 days, or the other way around. Accurate is more important than faster and we need to be able to predict arrivals.” The opposite held true for a European furniture importer. He agreed that accurate schedules were important, but added that there was significant value to be unlocked by carriers providing shorter lead times and ocean transits. “From the purchase order to delivery, the faster the goods arrive in Europe, the faster our customers get their deliveries,” the importer said. “Our products are seasonal, so there are narrow timelines ahead of the high season as well as in the low season when we build up stocks. “These are high volumetric products so there are not that many products in a container or stored in destination warehouses, and any extension of the lead time will have a significant price impact on the final customer,” he added. Gemini was designed to achieve a target of 90% schedule reliability with its fully phased in network. According to Sea-Intelligence Maritime Analysis, Gemini’s on-time performance across all arrivals was at 89.1% in September, while global schedule reliability was about 65%. <h3>Reliability ‘a fundamental cost of service’ </h3>While shippers are typically resistant to paying more for ocean transport, improved schedule reliability came with significant cost benefits, according to Wolfgang Lehmacher, a global supply chain strategist. “Reliability has long commanded a premium in the express sector, where I invested for years, because predictability drives value creation,” Lehmacher told the Journal of Commerce. “In ocean freight, resistance to [Gemini’s] stance reveals an industry still habituated to mediocrity,” he said. “As performance becomes measurable and differentiation clear, the debate shifts from being about paying more to recognizing that reliability is a fundamental cost of service, not an unexpected ask.” The delta between the reliability of Gemini and its rivals will allow Maersk and Hapag-Lloyd to place a price on the improved service levels, Hapag-Lloyd CEO Rolf Habben Jansen said <a href="https://www.joc.com/article/hapag-lloyd-refining-gemini-network-to-improve-efficiencies-habben-jansen-6115582">during a third-quarter earnings call with analysts last week</a>. “We will come with the introduction of a new quality promise for on-time delivery on a box level because that’s, in the end, the ultimate promise to customers that we will deliver their box on time,” Habben Jansen said. “The next step is to make sure we continue to grow volume on the back of an excellent product and also make sure we get adequately paid for that,” he added. “Because if we can help our customers to run their supply chains a lot better, then that must be more efficient for them as it allows them to take out inventory. And of course, we would like also to be adequately paid for that.” Maersk CEO Vincent Clerc had the same message in his <a href="https://www.joc.com/article/value-unlocked-by-gemini-will-clear-path-for-premium-charge-maersk-ceo-6111339">third-quarter earnings call earlier this month</a>. He said conversations with customers around a premium were already underway, but the current on-time performance would need to be sustained before such a charge could be rolled out. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” Clerc told analysts. “For instance, today every customer has buffer stock, and that reliability needs to unlock a reduction in that buffer stock,” he added. “They need to trust that [Gemini] has weathered sufficient ups and downs and is steady [so] that they can take out some of that buffer stock.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Talk of a premium charge from Gemini Cooperation partners Maersk and Hapag-Lloyd for the superior schedule reliability being achieved by the alliance since its launch in February is receiving a mixed reaction from the market. Executives from the two carriers have recently been extolling the value created by allowing customers to take one or two weeks’ worth of inventory out of their supply chains, but not all shippers are convinced. At a Hamburg conference for beneficial cargo owners (BCOs) organized by shipper network ShiftX last week, attendees appeared to be split into two camps — those who question why they should pay more to have their containers delivered on time, and those who ship products where on-time delivery represents value. “But it’s all about plannability,” Antonios Rigalos, managing partner of ShiftX, told the Journal of Commerce. “BCOs would rather build up inventory than be left with not enough stock, so the transit time is important, but the schedules need to be reliable.” The supply chain director for a European retailer said even though planning was crucial, a premium charge simply for delivering on time in a scheduled weekly service would not be well received. “As long as we can plan, it’s manageable,” the source said. “What doesn’t work is if we plan for 40 days and our containers arrive in 70 days, or the other way around. Accurate is more important than faster and we need to be able to predict arrivals.” The opposite held true for a European furniture importer. He agreed that accurate schedules were important, but added that there was significant value to be unlocked by carriers providing shorter lead times and ocean transits. “From the purchase order to delivery, the faster the goods arrive in Europe, the faster our customers get their deliveries,” the importer said. “Our products are seasonal, so there are narrow timelines ahead of the high season as well as in the low season when we build up stocks. “These are high volumetric products so there are not that many products in a container or stored in destination warehouses, and any extension of the lead time will have a significant price impact on the final customer,” he added. Gemini was designed to achieve a target of 90% schedule reliability with its fully phased in network. According to Sea-Intelligence Maritime Analysis, Gemini’s on-time performance across all arrivals was at 89.1% in September, while global schedule reliability was about 65%. Reliability ‘a fundamental cost of service’ While shippers are typically resistant to paying more for ocean transport, improved schedule reliability came with significant cost benefits, according to Wolfgang Lehmacher, a global supply chain strategist. “Reliability has long commanded a premium in the express sector, where I invested for years, because predictability drives value creation,” Lehmacher told the Journal of Commerce. “In ocean freight, resistance to [Gemini’s] stance reveals an industry still habituated to mediocrity,” he said. “As performance becomes measurable and differentiation clear, the debate shifts from being about paying more to recognizing that reliability is a fundamental cost of service, not an unexpected ask.” The delta between the reliability of Gemini and its rivals will allow Maersk and Hapag-Lloyd to place a price on the improved service levels, Hapag-Lloyd CEO Rolf Habben Jansen said during a third-quarter earnings call with analysts last week . “We will come with the introduction of a new quality promise for on-time delivery on a box level because that’s, in the end, the ultimate promise to customers that we will deliver their box on time,” Habben Jansen said. “The next step is to make sure we continue to grow volume on the back of an excellent product and also make sure we get adequately paid for that,” he added. “Because if we can help our customers to run their supply chains a lot better, then that must be more efficient for them as it allows them to take out inventory. And of course, we would like also to be adequately paid for that.” Maersk CEO Vincent Clerc had the same message in his third-quarter earnings call earlier this month . He said conversations with customers around a premium were already underway, but the current on-time performance would need to be sustained before such a charge could be rolled out. “We need to be certain that we have a long enough track record that it unlocks value for them [shippers], that we can then capture some of that value for us,” Clerc told analysts. “For instance, today every customer has buffer stock, and that reliability needs to unlock a reduction in that buffer stock,” he added. “They need to trust that [Gemini] has weathered sufficient ups and downs and is steady [so] that they can take out some of that buffer stock.” Contact Greg Knowler at greg.knowler@spglobal.com .

Shippers split as Gemini floats premium charge on reliability

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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

In 1995, we began operations with a clear vision: to grow alongside Mexico and connect the world through our terminals. Our priority has always been to deliver excellence in service, foster economic development, and strengthen our communities. We firmly believe that progress is not only measured in tons of cargo moved, but in the opportunities we create. _______________________________________________________________ This year marks a significant milestone: SSA Marine Mexico celebrates 30 years of presence in the country, having established itself from day one as the leading port operator nationwide. Over the past three decades, we have built a legacy of reliability, innovation, and commitment to Mexico’s growth. Our journey has been defined by continuous evolution and a steadfast dedication to our mission. SSA Marine México currently operates in six of the country’s most important ports: Cozumel, Lazaro Cardenas, Manzanillo, Progreso, Tuxpan, and Veracruz. Additionally, we have signed a concession to operate a new multipurpose terminal in Guaymas, Sonora, expanding our footprint to the north of the country. We serve a wide range of segments including containers, general cargo, automobiles, cruise ships, hydrocarbons, and asphalt. As part of this ongoing commitment, SSA Marine Mexico continues to strengthen its infrastructure and capabilities. International trade remains a key driver of global economic growth, and we are proud to support this momentum. Through our continuous improvement strategy, we invest in cutting-edge technology and equipment to deliver more efficient and competitive services, contributing to the success of Mexican businesses. •	Manzanillo, Colima- Specialized Container Terminal I: On October 13, we celebrated the arrival of two new STS (Ship To Shore) Super Post Panamax dockside cranes. This $21.2 million USD investment significantly boosts our operational capacity, streamlining cargo reception and delivery processes. In line with our modernization efforts, we will also retire four of our oldest cranes, paving the way for a more sustainable and technologically advanced fleet that meets the evolving demands of international trade. With these upgrades, SSA Marine México now operates a total of 16 cranes along our 1,350-meter dock, reaffirming our position as a national benchmark in port <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982635607_Manzanillo.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> •	As for the Multipurpose Terminal and Specialized Facility, also in Manzanillo, Colima, improvement and conditioning works are planned, along with the acquisition of four E-RTG (Electric Rubber-Tyred Gantry) cranes to enhance operational efficiency and sustainability. •	At our Automobile and General Cargo Terminal in the port of Veracruz, we continue to lead with specialized value-added services that support our clients’ growth. Recent investments include a new washing cabin and a general cargo warehouse, increasing indoor storage capacity by 67%. •	Lazaro Cardenas, Michoacan – Specialized Automobile Terminal: we are working on the development of an additional 4-hectare storage space within our bonded area and a 10-hectare Vehicle Distribution Center (VDC). These enhancements, along with ongoing personnel and system improvements, will reinforce our leadership in automotive handling across the Mexican Pacific coast.<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-4_3 joc_admin__inline-image-position-left joc_admin__inline-image-size-large" data-figure-size="large" data-figure-position="left" data-figure-aspect-ratio="4:3"><img src="/content-assets/1760982742240_Lazaro.jpg" alt="Image provided by SSA Marine" class="joc_admin__inline-image-inherit"> Through these strategic investments, SSA Marine Mexico reaffirms its commitment to the sustained growth of Mexico’s foreign trade. By expanding capacity, modernizing infrastructure, and diversifying services, we continue to strengthen the country’s competitiveness in global logistics. Today, we celebrate three decades of dedication, innovation, and leadership, with deep gratitude to our employees, clients, and partners for being part of this incredible journey. LINK: https://www.ssamarine.mx/<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1760982787360_SSA%20Marine%20Mexico%20logo%20150pxW.png" alt="" class="joc_admin__inline-image-inherit">

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SSA Marine Mexico: 30 years growing together.

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