<div class="phx-topic abstract-wrapper">What privatization should look like in Brazil and how it should begin is still being debated, however.</div>

What privatization should look like in Brazil and how it should begin is still being debated, however.

3588101_FI.jpg

<div>The plan by the incoming Brazilian administration to continue an effort <a>to privatize port authorities</a> has received a new injection of momentum after the head of the port authority of <a>Santos,</a> the largest South American port, was arrested earlier this week. What privatization should look like and how it should begin is still being debated, though.<a>Brazil’s</a> President-elect, Jair Bolsonaro, is putting together a government team and declaring various policy intentions, including the privatization of all the port authorities Companhias Docas (CDC), or dock companies, in Brazilian parlance. Various business groups including the Federation of Industries for the state of São...

The plan by the incoming Brazilian administration to continue an effort to privatize port authorities has received a new injection of momentum after the head of the port authority of Santos, the largest South American port, was arrested earlier this week. What privatization should look like and how it should begin is still being debated, though. Brazil’s President-elect, Jair Bolsonaro, is putting together a government team and declaring various policy intentions, including the privatization of all the port authorities Companhias Docas (CDC), or dock companies, in Brazilian parlance. Various business groups including the Federation of Industries for the state of São Paulo (Fiesp), the most powerful shipper group in Brazil, back the effort to privatize port management, aiming to cut inefficiencies and alleged corruption. Privatization backers are pointing to the arrest of José Alex Oliva, the president of Companhia Docas do Estado de São Paulo (Codesp) and two other Codesp directors, and federal charges of corruption of evidence of the latter. The investigation alleged Oliva; Cleveland Sampaio Lofrano, the marketing and community relations director; and Gabriel Nogueira Eufrasio, the legal superintendent, engaged in fraudulent tendering of contract for dredging, information technology, and consultancy for a total of 37 million reais ($9.9 million). Jose Alex Oliva. Photo credit: Rob Ward. The arrests have refueled debate as to what type of port management system should replace the existing one, and how to start the process of privatization. The Bolsonaro administration, which wants to cut the number of federal departments from 29 to 17 when it takes office in January, shouldn’t begin port authority privatization with Santos, said Marcelo Procopio, the commercial director for DP World Santos. Instead, the process should begin with a smaller port and adjust the model as needed before expanding to larger ports, he said. Outgoing president Michel Temer has already put in process a plan to privatize Codesa, the port authority for the much smaller port of Vitoria. The port, whose container operations are run by Log-In Logistica, the last remaining Brazilian-owned container line, handled about 100,000 TEU last year. “We will see much better management with privatization. Resources will then go to the right place and instead of politicians that sit on the CDC boards for four years we will have professionals,” he said. Procopio, who has also served as commercial director for Libra Terminais and Sepetiba Tecon, said less government interference in how ports are run will spur faster decision-making and the tendering of bids. Seeking a port with the right size Vitoria might be “too small and also atypical” of many Brazilian ports and although Santos might be too big for a “first effort in privatization,” there are other more suitable ports, said Joao Emilio Freire Filho, a consultant for Rio de Janeiro-based MA Consultoria e Eventos. Other than the Vila Velha terminal, there are few facilities that have enough cargo to draw bids from respectable companies, said Friere, who was until recently head of the Commissao Portus, a confederation of Brazilian port associations and shipper and industry groups. “If this experiment fails, my fear would be that people will then blame the model rather than the particular failure,” he said, adding that the ports of Paranagua and Rio Grande , both slated to handle about 800,000 TEU this year, would be better places to start with privatization. The investigation and arrest of the Codesp officials, dubbed Operation Triton, is the latest in a series of alleged corruption over the past decades. More high-profile port authority board members from other port boards are expected to be named and arrested over the coming weeks, according to sources at the port of Santos and in Brasilia. Temer was implicated earlier this year in a federal police investigation alleging he gave Rodrimar port terminal in Santos a concession extension despite a pre-1993 contract prohibiting such action. Incidents smacking of corruptions have increased in recent years, a veteran Santos shipping agent told JOC.com “I think with Judge [Sergio] Moro [an investigator that has levied corruption charges on politicians and industrialists] joining Bolsonaro’s government we will see a lot more ‘cleansing’ of corrupt institutions,” he said. Keeping to his push for more “technicos” instead of “politicos,” Bolsonaro, who was elected president Oct. 28, has appointed Luiz Fernando Garcia to fill the spot left by Oliva. Bolsonaro’s campaign against port corruption couldn’t come soon enough, Freire said. “I believe he will try to privatize all the state-owned companies and will probably remodel the last ports law [of 2015]. It is refreshing that he seems to be coming down very heavily on all the monkey business that has been going on in the port administrations. This will improve things for everybody,” he said. Overall, there will inevitably be a great deal of lobbying in Brasilia between now and January as the various sectors try and influence the incoming administration. Contact Rob Ward at rcward788@btinternet.com .

Transport, Trade and Regulation News

International ports

Santos corruption sting fuels Brazil port privatization push

<div class="phx-topic abstract-wrapper">First-quarter charges will rise across all trade lanes that cover the European Union from Jan. 1 when carriers will be responsible for 100% of their carbon emissions. </div>

First-quarter charges will rise across all trade lanes that cover the European Union from Jan. 1 when carriers will be responsible for 100% of their carbon emissions.

Feature image

<div class="phx-topic">The cost of ocean carriers complying with evolving European Union emissions regulations will rise significantly from Jan. 1, with some shipping companies advising cargo owners of increases in emissions surcharges in excess of 50%. From 2026, the EU Emissions Trading System (ETS) will require shipping lines to account for 100% of carbon emissions, up from 70% in 2025, as part of its phased rollout. Under the ETS “cap and trade” system, carriers must buy or receive allowances to cover their emissions. The average price of European Union Allowances (EUA) over the three months to Nov. 15 were assessed by Maersk as €76.75 ($89.13). Based on that calculation, Maersk announced that from Jan. 1, its first quarter “emissions surcharge” will rise across all trade lanes that cover the European Union, with increases on some trade lanes topping 50%. Among the Maersk trade lanes affected in the first quarter are Asia-North Europe, where ETS charges will rise from $114 to $168 per FEU; Asia to the Mediterranean from $80 to $130/FEU, the Mediterranean to North America from $151 to $236/FEU and North Europe to US from $89 to $139/FEU. Also increasing is the cost of compliance with the FuelEU Maritime regulation, under which carriers must gradually reduce the greenhouse gas intensity in fuels; those costs are included in the emissions surcharge. Maersk noted that FuelEU costs were up because rising biofuel costs combined with declining fossil fuel prices were making compliance more expensive. <h3>Direct impact on cost structure </h3>Maersk’s partner in the Gemini Cooperation alliance, Hapag-Lloyd, includes ETS and FuelEU costs in its EU ETS surcharge; the Hamburg-based carrier estimates the surcharge will rise 45% on Jan. 1. CMA CGM said in a customer advisory Monday it was anticipating a surcharge increase of 43%, with Europe’s 100% implementation of the ETS having a direct impact on its cost structure. The surcharges will be levied under CMA CGM’s “energy transition surcharge” and vary across different trade lanes involving European ports. For example, the ETS surcharge on Shanghai-Rotterdam in the first quarter will rise by almost $50 to $168/FEU from Jan. 1. Ocean Network Express (ONE) announced its “Europe environmental surcharge” that will increase from $134 to $186/FEU on Asia/Oceania to Europe trades, from $172 to $266/FEU on West Asia to the Mediterranean, and from $88 to $122/FEU on Europe-North America routes. On all bookings from China, excluding Hong Kong, the carriers will add ETS surcharges to the base freight rate for regulatory reasons; the same is true on bookings from Taiwan. “Instead of a surcharge, the EES portion will be incorporated and considered as a part of freight,” ONE said in its customer advisory. The carriers, in their customer advisories, used the surcharge-raising opportunity to market their lower emissions services that predominantly use biofuel under a “mass balance” approach that governs the chain of custody. Cargo moved under premium priced services such as Maersk’s ECO Delivery, Hapag-Lloyd's Ship Green or CMA CGM’s ACT+ can significantly reduce carbon emissions. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The cost of ocean carriers complying with evolving European Union emissions regulations will rise significantly from Jan. 1, with some shipping companies advising cargo owners of increases in emissions surcharges in excess of 50%. From 2026, the EU Emissions Trading System (ETS) will require shipping lines to account for 100% of carbon emissions, up from 70% in 2025, as part of its phased rollout. Under the ETS “cap and trade” system, carriers must buy or receive allowances to cover their emissions. The average price of European Union Allowances (EUA) over the three months to Nov. 15 were assessed by Maersk as €76.75 ($89.13). Based on that calculation, Maersk announced that from Jan. 1, its first quarter “emissions surcharge” will rise across all trade lanes that cover the European Union, with increases on some trade lanes topping 50%. Among the Maersk trade lanes affected in the first quarter are Asia-North Europe, where ETS charges will rise from $114 to $168 per FEU; Asia to the Mediterranean from $80 to $130/FEU, the Mediterranean to North America from $151 to $236/FEU and North Europe to US from $89 to $139/FEU. Also increasing is the cost of compliance with the FuelEU Maritime regulation, under which carriers must gradually reduce the greenhouse gas intensity in fuels; those costs are included in the emissions surcharge. Maersk noted that FuelEU costs were up because rising biofuel costs combined with declining fossil fuel prices were making compliance more expensive. Direct impact on cost structure Maersk’s partner in the Gemini Cooperation alliance, Hapag-Lloyd, includes ETS and FuelEU costs in its EU ETS surcharge; the Hamburg-based carrier estimates the surcharge will rise 45% on Jan. 1. CMA CGM said in a customer advisory Monday it was anticipating a surcharge increase of 43%, with Europe’s 100% implementation of the ETS having a direct impact on its cost structure. The surcharges will be levied under CMA CGM’s “energy transition surcharge” and vary across different trade lanes involving European ports. For example, the ETS surcharge on Shanghai-Rotterdam in the first quarter will rise by almost $50 to $168/FEU from Jan. 1. Ocean Network Express (ONE) announced its “Europe environmental surcharge” that will increase from $134 to $186/FEU on Asia/Oceania to Europe trades, from $172 to $266/FEU on West Asia to the Mediterranean, and from $88 to $122/FEU on Europe-North America routes. On all bookings from China, excluding Hong Kong, the carriers will add ETS surcharges to the base freight rate for regulatory reasons; the same is true on bookings from Taiwan. “Instead of a surcharge, the EES portion will be incorporated and considered as a part of freight,” ONE said in its customer advisory. The carriers, in their customer advisories, used the surcharge-raising opportunity to market their lower emissions services that predominantly use biofuel under a “mass balance” approach that governs the chain of custody. Cargo moved under premium priced services such as Maersk’s ECO Delivery, Hapag-Lloyd's Ship Green or CMA CGM’s ACT+ can significantly reduce carbon emissions. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Trans-Atlantic

Asia-Europe

Container Shipping News

Maritime

Ocean carriers unveil hefty increases in Europe emissions surcharges

<div class="phx-topic abstract-wrapper">The National Association of Waterfront Employers said intermodal service from ports could degrade further unless service commitments are made in the proposed $85 billion deal. </div>

The National Association of Waterfront Employers said intermodal service from ports could degrade further unless service commitments are made in the proposed $85 billion deal.

<div class="phx-topic">The National Association of Waterfront Employers (NAWE) became the first group in ocean freight to weigh in on the proposed merger of Union Pacific and Norfolk Southern, arguing a combined railroad could mean less competition and further erosion in intermodal service reliability at US ports.In a Dec. 1 letter to the US Surface Transportation Board (STB), NAWE said its members are concerned that reducing the number of Class I railroads through UP’s $85 billion acquisition of NS will further degrade intermodal service at ports. “Marine terminals need an intermodal rail service to handle increasing volumes of trade in order to provide streamlined imports and exports from increasingly strained port complexes,” NAWE’s letter said. “We are greatly concerned as to whether a reduction of two of the four major remaining competitors offering intermodal rail service will serve to benefit our industry.” NAWE, which represents marine terminals and stevedoring companies, said that Class I railroads, in general, are only taking a “best efforts” approach to providing intermodal service at ports. The group said the railroad industry’s focus on maintaining high operating ratios and “precision scheduled railroading” means less reliable intermodal service. Instead, railroads are leaving it to port operators and marine terminals to invest in rail operations “while the railroad usually takes more of an ‘if you build it, I may carry your cargo, if I see fit,’ approach,” NAWE’s letter said. “This results in a situation where the marine terminal industry finances and manages all the placement of intermodal on-dock rail transport, sometimes with very little in return on commitments in level of service,” the group wrote to STB, the federal regulator who will ultimately decide the fate of the proposed merger.<h3>Argues for intermodal growth at smaller ports</h3>Ocean carriers and ports have generally avoided public comments on the merger plans. NAWE said many of its members have good working relationships with the railroads, but it sees more potential for intermodal services to expand outside of larger ports by offering shippers more reach through less crowded gateways. The combination of two Class I railroads serving both coasts will further concentrate international intermodal freight at already busy ports, it said. “We need intermodal railroad services that expand the reach and capacity of medium-sized ports so they grow, but more fundamentally, we need to build a stronger business partnership with the railroads,” NAWE said. “Other port areas of the nation continue to struggle for commitment of service and greater level of investment to help spur growth.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The National Association of Waterfront Employers (NAWE) became the first group in ocean freight to weigh in on the proposed merger of Union Pacific and Norfolk Southern, arguing a combined railroad could mean less competition and further erosion in intermodal service reliability at US ports. In a Dec. 1 letter to the US Surface Transportation Board (STB), NAWE said its members are concerned that reducing the number of Class I railroads through UP’s $85 billion acquisition of NS will further degrade intermodal service at ports. “Marine terminals need an intermodal rail service to handle increasing volumes of trade in order to provide streamlined imports and exports from increasingly strained port complexes,” NAWE’s letter said. “We are greatly concerned as to whether a reduction of two of the four major remaining competitors offering intermodal rail service will serve to benefit our industry.” NAWE, which represents marine terminals and stevedoring companies, said that Class I railroads, in general, are only taking a “best efforts” approach to providing intermodal service at ports. The group said the railroad industry’s focus on maintaining high operating ratios and “precision scheduled railroading” means less reliable intermodal service. Instead, railroads are leaving it to port operators and marine terminals to invest in rail operations “while the railroad usually takes more of an ‘if you build it, I may carry your cargo, if I see fit,’ approach,” NAWE’s letter said. “This results in a situation where the marine terminal industry finances and manages all the placement of intermodal on-dock rail transport, sometimes with very little in return on commitments in level of service,” the group wrote to STB, the federal regulator who will ultimately decide the fate of the proposed merger. Argues for intermodal growth at smaller ports Ocean carriers and ports have generally avoided public comments on the merger plans. NAWE said many of its members have good working relationships with the railroads, but it sees more potential for intermodal services to expand outside of larger ports by offering shippers more reach through less crowded gateways. The combination of two Class I railroads serving both coasts will further concentrate international intermodal freight at already busy ports, it said. “We need intermodal railroad services that expand the reach and capacity of medium-sized ports so they grow, but more fundamentally, we need to build a stronger business partnership with the railroads,” NAWE said. “Other port areas of the nation continue to struggle for commitment of service and greater level of investment to help spur growth.” Contact Michael Angell at michael.angell@spglobal.com .

North-American rail

Intermodal providers

North American ports

Ports urge strict review of intermodal impacts from UP-NS merger

<div class="phx-topic abstract-wrapper">o9 Solutions contends that client data and confidential information on its platform were passed to SAP while three of its sales executives moved to the German software giant. </div>

o9 Solutions contends that client data and confidential information on its platform were passed to SAP while three of its sales executives moved to the German software giant.

<div class="phx-topic">Supply chain software vendor o9 Solutions is alleging that three of its former sales executives were recruited to join SAP so the German software giant could get access to proprietary and confidential documents related to o9’s platform, according to a lawsuit filed in the US District Court. The lawsuit, filed last week in Dallas where o9 is based, contends that its former chief revenue officer Stephane de Barse and sales executives Stijn-Pieter van Houten and Sean Zonneveld had systematically downloaded confidential system and client files over a few months before giving their notice, while coordinating the downloads with SAP before joining that company earlier this year. The lawsuit alleges that SAP, under pressure to upgrade its existing Advanced Planning and Optimization (APO) supply chain management platform, planned to retire that tool by 2027 and migrate its customers to its new supply chain management solution, called Integrated Business Planning (IBP). “However, contrary to SAP’s expectation, the market has demonstrated significant resistance and hesitation towards implementing SAP’s IBP platform due to its high costs, long timeline, operational risks, and poor implementation and support for existing customization,” o9 said in the lawsuit. “As a result of the failings in SAP’s offerings, numerous APO customers decided to move away from SAP services to other vendors, including o9, for a better, more refined platform.” Among the allegations in the lawsuit, o9 contends that de Barse, after giving notice on Jan. 3, 2025, that he would be departing the company Feb. 28, coordinated with the other two defendants to download specific client files and coordinate with SAP. The lawsuit alleges that the defendants downloaded approximately 22,000 documents in all, violating the terms of their contracts and US and Texas trade secret laws, with o9 seeking a judgment that would prevent the three executives from competing with o9, requiring them to return any downloaded documents and being awarded unspecified punitive damages. <h3>SAP says ‘not aware of any wrongdoing’ </h3>SAP, in a statement to the Journal of Commerce, said it takes o9’s allegations “very seriously.” “SAP is committed to the highest standards of business ethics and respects the intellectual property rights of others,” SAP said. “Our commitment to integrity and doing business the right way is unwavering — these principles are the foundation of our company. While SAP is not aware of any wrongdoing, we take these allegations very seriously and are looking into them. SAP will respond, as appropriate, through the legal process.” Founded in 2009, o9 provides supply chain management software to shippers, a market where it competes with SAP and dozens of other providers that help shippers coordinate planning and execution of manufacturing, transportation, warehousing and distribution processes. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Supply chain software vendor o9 Solutions is alleging that three of its former sales executives were recruited to join SAP so the German software giant could get access to proprietary and confidential documents related to o9’s platform, according to a lawsuit filed in the US District Court. The lawsuit, filed last week in Dallas where o9 is based, contends that its former chief revenue officer Stephane de Barse and sales executives Stijn-Pieter van Houten and Sean Zonneveld had systematically downloaded confidential system and client files over a few months before giving their notice, while coordinating the downloads with SAP before joining that company earlier this year. The lawsuit alleges that SAP, under pressure to upgrade its existing Advanced Planning and Optimization (APO) supply chain management platform, planned to retire that tool by 2027 and migrate its customers to its new supply chain management solution, called Integrated Business Planning (IBP). “However, contrary to SAP’s expectation, the market has demonstrated significant resistance and hesitation towards implementing SAP’s IBP platform due to its high costs, long timeline, operational risks, and poor implementation and support for existing customization,” o9 said in the lawsuit. “As a result of the failings in SAP’s offerings, numerous APO customers decided to move away from SAP services to other vendors, including o9, for a better, more refined platform.” Among the allegations in the lawsuit, o9 contends that de Barse, after giving notice on Jan. 3, 2025, that he would be departing the company Feb. 28, coordinated with the other two defendants to download specific client files and coordinate with SAP. The lawsuit alleges that the defendants downloaded approximately 22,000 documents in all, violating the terms of their contracts and US and Texas trade secret laws, with o9 seeking a judgment that would prevent the three executives from competing with o9, requiring them to return any downloaded documents and being awarded unspecified punitive damages. SAP says ‘not aware of any wrongdoing’ SAP, in a statement to the Journal of Commerce, said it takes o9’s allegations “very seriously.” “SAP is committed to the highest standards of business ethics and respects the intellectual property rights of others,” SAP said. “Our commitment to integrity and doing business the right way is unwavering — these principles are the foundation of our company. While SAP is not aware of any wrongdoing, we take these allegations very seriously and are looking into them. SAP will respond, as appropriate, through the legal process.” Founded in 2009, o9 provides supply chain management software to shippers, a market where it competes with SAP and dozens of other providers that help shippers coordinate planning and execution of manufacturing, transportation, warehousing and distribution processes. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

SAP sued by supply chain software competitor over alleged trade secret theft

<div class="phx-topic abstract-wrapper">The railroad says the appointment system will create more “predictable operations” by controlling the number of containers that are in-gated each day.</div>

The railroad says the appointment system will create more “predictable operations” by controlling the number of containers that are in-gated each day.

<div class="phx-topic">Norfolk Southern Railway (NS) has begun requiring truck drivers to make reservations to drop off domestic intermodal loads, with a system-wide rollout of the program scheduled to continue through March. As of Dec. 1, drivers must secure a reservation to deliver domestic containers to the NS terminal in Charlotte, North Carolina. Reservations are now also required in Atlanta; Columbus, Ohio; Jacksonville, Florida.; Kansas City, Missouri; Memphis and St. Louis after a “soft” rollout of the appointment system over the past few months, NS said, adding that one additional terminal will be added each week for the next 16 weeks. “We softly rolled [our mandatory appointment system] out for domestic [intermodal] in a handful of lanes, mostly between Chicago and New England,” Norfolk Southern said in a statement to intermodal partners that was seen by the Journal of Commerce. “After a year’s worth of testing and systems enhancements, we will be rolling [it] out systemwide.” The railroad says the reservation system will create more “predictable operations.” By controlling the number of containers that are in-gated each day, NS says it can reduce so-called origin dwell, or how long a container sits before being loaded on a train. Lower dwell times prevent terminals from becoming congested and preserve capacity to unload inbound trains quickly, according to the railroad. “By reducing variability and enhancing operational predictability, we aim to deliver better service and support to our customers,” NS said in the advisory. Key rollout dates ahead include Dec. 8 in Philadelphia; Feb. 2 in Harrisburg, Pennsylvania; Feb. 9 in Newark (Croxton), New Jersey; and Feb. 23 at Chicago’s 47th Street terminal. International intermodal customers already use a reservation system at several NS hubs, including Atlanta, Memphis and Chicago. BNSF Railway is now the only Class I North American railroad that does not require reservations for domestic intermodal drop-offs. <h3>Extra step for IMCs </h3>NS will host information sessions across its network to brief motor carriers and intermodal marketing companies (IMCs) on the new requirements. Sessions are scheduled in Cincinnati on Dec. 10 and Louisville on Dec. 11, ahead of those markets adopting the reservations system in mid-January. The change adds a planning step for IMCs to ensure loads depart on time by booking and providing reservation numbers to third-party drayage carriers. During peak periods, NS may also cap how many containers an IMC can ingate daily, potentially delaying some shipments. High-volume IMCs will receive a daily allocation of reservation slots per terminal. Once that allotment is exceeded, IMCs must use an open pool of remaining slots on a first-come, first-served basis. CSX Transportation — NS’ chief competitor in the eastern US domestic market — has used a similar reservation system since 2019. During the pandemic-era freight surge, reservation slots at times filled for days in Chicago and other hubs, leaving IMCs waiting to ingate containers. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Norfolk Southern Railway (NS) has begun requiring truck drivers to make reservations to drop off domestic intermodal loads, with a system-wide rollout of the program scheduled to continue through March. As of Dec. 1, drivers must secure a reservation to deliver domestic containers to the NS terminal in Charlotte, North Carolina. Reservations are now also required in Atlanta; Columbus, Ohio; Jacksonville, Florida.; Kansas City, Missouri; Memphis and St. Louis after a “soft” rollout of the appointment system over the past few months, NS said, adding that one additional terminal will be added each week for the next 16 weeks. “We softly rolled [our mandatory appointment system] out for domestic [intermodal] in a handful of lanes, mostly between Chicago and New England,” Norfolk Southern said in a statement to intermodal partners that was seen by the Journal of Commerce. “After a year’s worth of testing and systems enhancements, we will be rolling [it] out systemwide.” The railroad says the reservation system will create more “predictable operations.” By controlling the number of containers that are in-gated each day, NS says it can reduce so-called origin dwell, or how long a container sits before being loaded on a train. Lower dwell times prevent terminals from becoming congested and preserve capacity to unload inbound trains quickly, according to the railroad. “By reducing variability and enhancing operational predictability, we aim to deliver better service and support to our customers,” NS said in the advisory. Key rollout dates ahead include Dec. 8 in Philadelphia; Feb. 2 in Harrisburg, Pennsylvania; Feb. 9 in Newark (Croxton), New Jersey; and Feb. 23 at Chicago’s 47th Street terminal. International intermodal customers already use a reservation system at several NS hubs, including Atlanta, Memphis and Chicago. BNSF Railway is now the only Class I North American railroad that does not require reservations for domestic intermodal drop-offs. Extra step for IMCs NS will host information sessions across its network to brief motor carriers and intermodal marketing companies (IMCs) on the new requirements. Sessions are scheduled in Cincinnati on Dec. 10 and Louisville on Dec. 11, ahead of those markets adopting the reservations system in mid-January. The change adds a planning step for IMCs to ensure loads depart on time by booking and providing reservation numbers to third-party drayage carriers. During peak periods, NS may also cap how many containers an IMC can ingate daily, potentially delaying some shipments. High-volume IMCs will receive a daily allocation of reservation slots per terminal. Once that allotment is exceeded, IMCs must use an open pool of remaining slots on a first-come, first-served basis. CSX Transportation — NS’ chief competitor in the eastern US domestic market — has used a similar reservation system since 2019. During the pandemic-era freight surge, reservation slots at times filled for days in Chicago and other hubs, leaving IMCs waiting to ingate containers. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Norfolk Southern to roll out reservation system on domestic intermodal

<div class="phx-topic abstract-wrapper">The move is significant as the carrier has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe.</div>

The move is significant as the carrier has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe.

<div class="phx-topic">While an en masse return to the Red Sea and Suez Canal by mainline carriers remains a sketchy proposition despite recent positive signals, there seem to be other industry moves on carriers’ growing engagement in the traditional, shorter trade route as customers seek faster transits. Direct routings involving transshipment via hubs in the Middle East such as Jeddah (Saudi Arabia), Jebel Ali (the United Arab Emirates) and Salalah (Oman) are one such strategy. Multiple freight forwarder sources in Mumbai who spoke with the Journal of Commerce have reported that Maersk is offering Indian shippers, particularly reefer cargo interests, a specialized service product for direct connections into the Europe/Mediterranean market through relays at Salalah, in addition to Jeddah and Jebel Ali that had already been available. Sources noted that Maersk is using UAE-based short-haul operator Safeen Feeders, reportedly a subsidiary of AD Ports, to transship cargo out of Salalah, with the current contracted movement pegged at between 600 TEUs and 700 TEUs per week. When contacted by the Journal of Commerce, a spokesperson for Maersk confirmed the Jeddah shuttle play for Indian cargo but declined to comment on Salalah options networked by “third-party” feeder capacity. “We have three shuttle services sailing from the Med to Jeddah [Jeddah 1, Jeddah 2 and Jeddah 3], which are the main contributors to the use of Suez Canal,” said the spokesperson. “Maersk doesn’t have any mainliner or shuttle service sailing through the Bab el-Mandeb Strait right now.” <h3>Service is key for Indian grape exports </h3>Salalah is a key hub for the Gemini Cooperation network, including Maersk’s ME1 and ME11 services connecting Nhava Sheva/Mundra (West India) to North Europe and the Mediterranean. The new offering is somewhat akin to the “named account product [NAP]” that Maersk has had in its service profile for years, by which the liner promises a client/cargo-specific special routing for a premium price, sources noted. The move is significant as Maersk has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe. According to sources, the Danish liner has also begun approaching major Indian grape traders/exporters with a strategy to lock their upcoming time-sensitive shipment plans under the new, faster shipping service. Maersk handled approximately 3,000 containers out of the total 9,000 boxes of grape freight shipped to Europe during the last season, a market share that industry sources say was lower than the carrier’s historical 40% sway. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

While an en masse return to the Red Sea and Suez Canal by mainline carriers remains a sketchy proposition despite recent positive signals, there seem to be other industry moves on carriers’ growing engagement in the traditional, shorter trade route as customers seek faster transits. Direct routings involving transshipment via hubs in the Middle East such as Jeddah (Saudi Arabia), Jebel Ali (the United Arab Emirates) and Salalah (Oman) are one such strategy. Multiple freight forwarder sources in Mumbai who spoke with the Journal of Commerce have reported that Maersk is offering Indian shippers, particularly reefer cargo interests, a specialized service product for direct connections into the Europe/Mediterranean market through relays at Salalah, in addition to Jeddah and Jebel Ali that had already been available. Sources noted that Maersk is using UAE-based short-haul operator Safeen Feeders, reportedly a subsidiary of AD Ports, to transship cargo out of Salalah, with the current contracted movement pegged at between 600 TEUs and 700 TEUs per week. When contacted by the Journal of Commerce, a spokesperson for Maersk confirmed the Jeddah shuttle play for Indian cargo but declined to comment on Salalah options networked by “third-party” feeder capacity. “We have three shuttle services sailing from the Med to Jeddah [Jeddah 1, Jeddah 2 and Jeddah 3], which are the main contributors to the use of Suez Canal,” said the spokesperson. “Maersk doesn’t have any mainliner or shuttle service sailing through the Bab el-Mandeb Strait right now.” Service is key for Indian grape exports Salalah is a key hub for the Gemini Cooperation network, including Maersk’s ME1 and ME11 services connecting Nhava Sheva/Mundra (West India) to North Europe and the Mediterranean. The new offering is somewhat akin to the “named account product [NAP]” that Maersk has had in its service profile for years, by which the liner promises a client/cargo-specific special routing for a premium price, sources noted. The move is significant as Maersk has high stakes in India’s seasonal grape export trade that typically runs between January and April, moving mainly to Europe. According to sources, the Danish liner has also begun approaching major Indian grape traders/exporters with a strategy to lock their upcoming time-sensitive shipment plans under the new, faster shipping service. Maersk handled approximately 3,000 containers out of the total 9,000 boxes of grape freight shipped to Europe during the last season, a market share that industry sources say was lower than the carrier’s historical 40% sway. Contact Bency Mathew at bencyvmathew@gmail.com .

Port News

Cool Cargo News

Maersk offers Indian reefer shippers Red Sea-based service product: sources

Use code GTW595 at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code SSW30 at checkout to save 30% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

SEASON"S SAVINGS

Use code CMW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

CYBER MONDAY SALE

Subscribe today using code SSW30 at checkout and save 30% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

SEASON'S SAVINGS

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code SSW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Get into a Gold subscription today and save $500 by using code SSW995 at checkout!

Subscribe Now - Anonymous to Gold - Wide Box

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

SMC3rates_shutterstock_5247046.jpg

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>

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

SEASON'S SAVINGS: Use code SSW30 to save 30% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

SEASON'S SAVINGS: Subscribe today using code SSW30 at checkout and save 30% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

UPGRADE TO GOLD AND SAVE: Use code GTW595 at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

SEASON'S SAVINGS: Get into a Gold subscription today and save $500 by using code SSW995 at checkout!

Subscribe Now - Anonymous to Gold - Offer Box

CYBER MONDAY SALE: Use code CMW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

SEASON'S SAVINGS: Use code SSW995 at checkout to save $500 on a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

TPM Conference - Rectangle Box

Attend TPM26

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

The latest port news from the Journal of Commerce spans the globe from North Carolina and Florida to Shanghai and Singapore. Port news includes port automation, terminal construction projects, the future of decarbonization and net-zero shipping, dredging, port hinterland connectivity, labor, disruption, port congestion and cargo flow.

Marine terminals

Longshore labor

Drayage

Port infrastructure

Breakbulk ports

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Breakbulk News

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

Ocean carriers unveil hefty increases in Europe emissions surcharges

Ports urge strict review of intermodal impacts from UP-NS merger

SAP sued by supply chain software competitor over alleged trade secret theft