<div class="phx-topic abstract-wrapper">New pollution rules approved by the Southern California air quality regulatory board are expected to add about 3 percent to the cost of warehouse operations in Southern California, but not result in cargo diversions. </div>

New pollution rules approved by the Southern California air quality regulatory board are expected to add about 3 percent to the cost of warehouse operations in Southern California, but not result in cargo diversions.

3675421_FI.jpg

<div>A Southern California regulatory agency has approved new air pollution rules that will increase costs for warehouse operations, but the regulations are not expected to stymie growth in the country’s largest warehouse and distribution region. Rules 2305 and 316, also known as the Warehouse Indirect Source regulations, require distribution facilities of 100,000 square feet or larger to implement measures that will reduce emissions of nitrogen oxide (NOx), a source of smog, and diesel particulate matter (DPM), which is linked to cardiovascular and cardiopulmonary illnesses such as asthma and heart disease. According to the South Coast Air Quality Management District (AQMD),...

A Southern California regulatory agency has approved new air pollution rules that will increase costs for warehouse operations, but the regulations are not expected to stymie growth in the country’s largest warehouse and distribution region. Rules 2305 and 316, also known as the Warehouse Indirect Source regulations, require distribution facilities of 100,000 square feet or larger to implement measures that will reduce emissions of nitrogen oxide (NOx), a source of smog, and diesel particulate matter (DPM), which is linked to cardiovascular and cardiopulmonary illnesses such as asthma and heart disease. According to the South Coast Air Quality Management District (AQMD), some 2.4 million residents of the four-county area in and around Los Angeles live within a half-mile of the more than 3,300 warehouses in the region. The warehouses emit pollutants from their own operations, and they also generate millions of truck trips each year that generate harmful diesel emissions. The new requirements, which will be phased in over the next three years, provide warehouse operators with a menu of measures they can choose from to reduce pollution. The goal is to reduce total emissions from warehouse and truck operations in the region by 10 to 15 percent. The options include installing rooftop solar panels and zero-emission cargo-handling equipment at their facilities. The rules are also designed to reduce diesel emissions by encouraging the use of near-zero and zero-emission trucks to shuttle freight to and from the warehouses. The AQMD noted that the indirect source rules were developed over the past four years during dialogue with industry stakeholders. The agency estimates the rules will add at most 3 percent to the cost of warehouse operations, although there are lower-cost options available that would increase costs by about 0.5 percent, according to the AQMD. Warehouse operators who do not implement pollution-reduction measures will pay an annual mitigation fee. It was not immediately clear how that fee would be calculated. Background material provided by the AQMD noted that a major complaint of freight-moving interests is that the agency is “overreaching” by going beyond regulating emissions from stationary sources like warehouses to include mobile sources such as the truck and passenger vehicle traffic that moved to and from the warehouses. Also, according to the agency, freight interests claim the mitigation fee is really a tax. The agency said those claims are not accurate. Organizations and trade groups representing freight interests have not yet publicly stated if they will challenge the AQMD’s decision, which was rendered late Friday. Indirect source rules won’t lead to cargo diversions The regulatory agency also questioned complaints made by freight interests that the added costs warehouse operators will incur because of the new rules will cause a diversion of cargo from Southern California. To the contrary, cargo volumes in Los Angeles-Long Beach are quite strong, and activity in the warehouse sector remains especially robust, the agency said. “South Coast AQMD has studied the economic impacts of this rule and expects the industry to continue to thrive,” the agency stated in supporting documentation. “The current low warehouse vacancy rates and high rent increases support our analysis.” Indeed, the Los Angeles-Long Beach port complex, which handles about 50 percent of total US imports from Asia, according to PIERS, a JOC.com sister product within IHS Markit, has experienced nine consecutive months of record or near-record import volumes since July. Retailers project those volumes are going to continue at least through September , according to the Global Port Tracker released Friday by the National Retail Federation and Hackett Associates. Contact Bill Mongelluzzo at bill.mongelluzzo@ihsmarkit.com and follow him on Twitter: @billmongelluzzo .

Transport, Trade and Regulation News

New Southern California pollution rules to hike warehouse costs

<div class="phx-topic abstract-wrapper">The storm is bringing fierce winds and Arctic conditions to the region, impacting ocean, road and rail freight transport.</div>

The storm is bringing fierce winds and Arctic conditions to the region, impacting ocean, road and rail freight transport.

Feature image

<div class="phx-topic">Heavy snow, ice and freezing temperatures are disrupting port and inland operations and grounding flights across Northern Europe as a winter storm hammers the region. Hundreds of flights in France, Belgium, the Netherlands and Germany were canceled Wednesday because of snow, high winds and icy conditions that are also affecting container terminal handling and road and rail networks. Maersk noted in an advisory that operations at key terminals, particularly in Rotterdam and Hamburg, were being disrupted. “As a result, productivity at terminals and depots has been reduced, while snow and icy road conditions are causing traffic congestion and delays for trucks,” the carrier said. “Rail services are also being affected by frozen track switches, leading to service disruptions and cancellations,” the advisory added, with the rail woes contributing to longer waiting times for import and export cargo and increasing yard congestion at hub ports in Northern Europe. <h3>Hamburg disruptions</h3>Terminal operator Eurogate is facing disruptions from snow, ice and strong winds at its Port of Hamburg facilities, but a spokesperson said its other German locations have so far been spared from the severe weather. “This may change, as the weather forecast for the coming days predicts very low temperatures, precipitation and strong winds for the whole of northern Germany,” the Eurogate spokesperson told the Journal of Commerce. “We are preparing as well as possible for these weather conditions but in some cases, we may have to pause operations.” A spokesperson for the Port of Hamburg said heavy snowfall restricted rail traffic last weekend, and while rail operations were “gradually returning to normal,” it will take time to clear backlogs. “Operations are running at the container terminals, but weather conditions are causing delays in handling across all modes of transport,” the port spokesperson said. “Winter service teams at the terminals are currently working flat out to ensure that handling operations continue as smoothly as possible.” Maersk highlighted challenging inland operating conditions in Northern Europe, warning of slower processing of trucks at Antwerp and Rotterdam, disrupted rail services between Rotterdam and Venlo, and delays between Rotterdam and Duisburg. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

Heavy snow, ice and freezing temperatures are disrupting port and inland operations and grounding flights across Northern Europe as a winter storm hammers the region. Hundreds of flights in France, Belgium, the Netherlands and Germany were canceled Wednesday because of snow, high winds and icy conditions that are also affecting container terminal handling and road and rail networks. Maersk noted in an advisory that operations at key terminals, particularly in Rotterdam and Hamburg, were being disrupted. “As a result, productivity at terminals and depots has been reduced, while snow and icy road conditions are causing traffic congestion and delays for trucks,” the carrier said. “Rail services are also being affected by frozen track switches, leading to service disruptions and cancellations,” the advisory added, with the rail woes contributing to longer waiting times for import and export cargo and increasing yard congestion at hub ports in Northern Europe. Hamburg disruptions Terminal operator Eurogate is facing disruptions from snow, ice and strong winds at its Port of Hamburg facilities, but a spokesperson said its other German locations have so far been spared from the severe weather. “This may change, as the weather forecast for the coming days predicts very low temperatures, precipitation and strong winds for the whole of northern Germany,” the Eurogate spokesperson told the Journal of Commerce. “We are preparing as well as possible for these weather conditions but in some cases, we may have to pause operations.” A spokesperson for the Port of Hamburg said heavy snowfall restricted rail traffic last weekend, and while rail operations were “gradually returning to normal,” it will take time to clear backlogs. “Operations are running at the container terminals, but weather conditions are causing delays in handling across all modes of transport,” the port spokesperson said. “Winter service teams at the terminals are currently working flat out to ensure that handling operations continue as smoothly as possible.” Maersk highlighted challenging inland operating conditions in Northern Europe, warning of slower processing of trucks at Antwerp and Rotterdam, disrupted rail services between Rotterdam and Venlo, and delays between Rotterdam and Duisburg. Contact Greg Knowler at greg.knowler@spglobal.com.

Port News

Rail News

Surface

Marine terminals

International ports

International rail

Maritime

Severe winter storm disrupts North Europe port, inland operations

<div class="phx-topic abstract-wrapper">Contract shippers have not felt the impact of the surge last month in spot market truckload rates, but that could change amid market uncertainty as 2026 begins.</div>

Contract shippers have not felt the impact of the surge last month in spot market truckload rates, but that could change amid market uncertainty as 2026 begins.

<div class="phx-topic">The newfound strength in US truckload pricing could become a turning point if it lasts until mid-February, long enough that shippers could see it in their contracts, but there are also plenty of hazards that could cause the freight recession to linger into a fourth year, analysts warn. Truckload spot rates were largely tepid between February and November, but shot up 19 cents per mile in December from November, which was also a 9.1% increase year over year, according to a Journal of Commerce analysis of truckload data from DAT Freight and Analytics and managed transportation provider Loadsmart. The average national rate paid by shippers last month was $2.46 per mile across the US, including fuel, on lanes 250 miles or greater. “I do think a lot of (the) rate increase in December was weather driven...winter weather hitting the Midwest and Northeast,” David Spencer, vice president of market intelligence at Arrive Logistics, said Tuesday on the Meet Me for Coffee podcast hosted by Samantha Jones. “Rates are going to come back down. I think it’s a short-lived season volatility.” Jason Miller, professor of supply chain management at Michigan State University, said the key month to watch is February. Rates tend to remain slightly elevated in January because of the reverse logistics involved in returning Christmas gifts. But if rates remain elevated through February — which Miller doesn’t believe will happen — then pricing power could shift to the carriers. “We’re entering this year, from a manufacturing standpoint, in a worse position today than we were entering last year,” Miller said on the podcast. A shipper who did not want to be identified told the Journal of Commerce that his contract truckload carriers have not broached the subject of raising contract rates based off the December spot market surge. <h3>Data picture is cloudy </h3>Economists are working through the backlog of data that accumulated during the 43-day government shutdown in October and November. “The hard part is that we’re still waiting for a lot of government data that we’d love to have,” Miller said. “New single family home permits were down 10% year over year last August, but that feels like ancient history.” The S&amp;P Global Manufacturing Purchasing Managers Index was in expansion territory in December at 51.8, but the outlook was much more cautious. “Something of a Wile E. Coyote scenario has developed, whereby – just like the cartoon character continues to run despite chasing the roadrunner off a cliff – factories are continuing to produce goods despite suffering a drop in orders,” wrote Chris Williamson, chief business economist at S&amp;P Global Market Intelligence. The gap between production and new orders was the widest since the Great Recession of 2008-2009, indicating “current factory production levels are clearly unsustainable,” Williamson wrote. That’s relevant because industrial freight powers the trucks and railroads, hauling raw materials and intermediate products used to make durable and non-durable consumer products. There are other signs that could cool the December euphoria of carriers, including the federal government this month beginning to garnish the wages of those who are delinquent on their student loans, a practice that was halted during the COVID-19 pandemic. “Holiday shopping is often on credit cards, and so when we start seeing wage garnishments to pay student loans, it’s going to create real strain on some consumers,” Aaron Terrazas, an independent economist who previously worked for companies such as Convoy, Glassdoor and Zillow, said on the Jones webcast. <h3>Things could change fast </h3>Despite the lackluster macroeconomic picture, there are unknowns that could quickly shock the market and shift pricing power back to carriers. The US Supreme Court must rule on whether President Donald Trump had the authority to use the International Emergency Economic Powers Act (IEEPA) to apply reciprocal tariffs across dozens of trading partners last year. The Court will hand down a series of rulings this Friday, but it’s unknown if the tariffs case will be one of them. If the Court rules against Trump, and the Federal Reserve continues to lower interest rates, then it could create a one-two punch that could shock the markets. "There will be a window which I think shippers will just force as much they can through the pipe before the administration finds another way to get tariffs in place," Terrazas said. "If the pipe opens, even if it's for just two or three months, I think you'll see just an absolute bonanza... It'll be absolute and total hell on all transportation managers [shippers].” If the Court rules for Trump, however, the administration has floated the idea of issuing tariff rebate checks of up to $2,000 to US citizens. If people receive that money, it could be the demand catalyst to kickstart a freight recovery, according to Terrazas and Miller. There is also the battle between the US Department of Transportation (USDOT) and several states over rescinding non-domiciled commercial driver’s licenses (CDLs) to asylum seekers and other visa holders that were previously qualified. California announced a 60-day extension on canceling the non-domiciled CDLs, kicking the issue to March, while the USDOT has threatened to withhold federal funds over that decision. It’s unclear what the impact on both truckload and port drayage would be if California canceled as many as 17,000 non-domiciled CDLs.”I think vulnerability to sustained disruption is a major issue,” Spencer said on the webcast. “Use this past little stretch in December as a good indicator of what to expect because there are going to be periods of volatility.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

The newfound strength in US truckload pricing could become a turning point if it lasts until mid-February, long enough that shippers could see it in their contracts, but there are also plenty of hazards that could cause the freight recession to linger into a fourth year, analysts warn. Truckload spot rates were largely tepid between February and November, but shot up 19 cents per mile in December from November, which was also a 9.1% increase year over year, according to a Journal of Commerce analysis of truckload data from DAT Freight and Analytics and managed transportation provider Loadsmart. The average national rate paid by shippers last month was $2.46 per mile across the US, including fuel, on lanes 250 miles or greater. “I do think a lot of (the) rate increase in December was weather driven...winter weather hitting the Midwest and Northeast,” David Spencer, vice president of market intelligence at Arrive Logistics, said Tuesday on the Meet Me for Coffee podcast hosted by Samantha Jones. “Rates are going to come back down. I think it’s a short-lived season volatility.” Jason Miller, professor of supply chain management at Michigan State University, said the key month to watch is February. Rates tend to remain slightly elevated in January because of the reverse logistics involved in returning Christmas gifts. But if rates remain elevated through February — which Miller doesn’t believe will happen — then pricing power could shift to the carriers. “We’re entering this year, from a manufacturing standpoint, in a worse position today than we were entering last year,” Miller said on the podcast. A shipper who did not want to be identified told the Journal of Commerce that his contract truckload carriers have not broached the subject of raising contract rates based off the December spot market surge. Data picture is cloudy Economists are working through the backlog of data that accumulated during the 43-day government shutdown in October and November. “The hard part is that we’re still waiting for a lot of government data that we’d love to have,” Miller said. “New single family home permits were down 10% year over year last August, but that feels like ancient history.” The S&P Global Manufacturing Purchasing Managers Index was in expansion territory in December at 51.8, but the outlook was much more cautious. “Something of a Wile E. Coyote scenario has developed, whereby – just like the cartoon character continues to run despite chasing the roadrunner off a cliff – factories are continuing to produce goods despite suffering a drop in orders,” wrote Chris Williamson, chief business economist at S&P Global Market Intelligence. The gap between production and new orders was the widest since the Great Recession of 2008-2009, indicating “current factory production levels are clearly unsustainable,” Williamson wrote. That’s relevant because industrial freight powers the trucks and railroads, hauling raw materials and intermediate products used to make durable and non-durable consumer products. There are other signs that could cool the December euphoria of carriers, including the federal government this month beginning to garnish the wages of those who are delinquent on their student loans, a practice that was halted during the COVID-19 pandemic. “Holiday shopping is often on credit cards, and so when we start seeing wage garnishments to pay student loans, it’s going to create real strain on some consumers,” Aaron Terrazas, an independent economist who previously worked for companies such as Convoy, Glassdoor and Zillow, said on the Jones webcast. Things could change fast Despite the lackluster macroeconomic picture, there are unknowns that could quickly shock the market and shift pricing power back to carriers. The US Supreme Court must rule on whether President Donald Trump had the authority to use the International Emergency Economic Powers Act (IEEPA) to apply reciprocal tariffs across dozens of trading partners last year. The Court will hand down a series of rulings this Friday, but it’s unknown if the tariffs case will be one of them. If the Court rules against Trump, and the Federal Reserve continues to lower interest rates, then it could create a one-two punch that could shock the markets. "There will be a window which I think shippers will just force as much they can through the pipe before the administration finds another way to get tariffs in place," Terrazas said. "If the pipe opens, even if it's for just two or three months, I think you'll see just an absolute bonanza... It'll be absolute and total hell on all transportation managers [shippers].” If the Court rules for Trump, however, the administration has floated the idea of issuing tariff rebate checks of up to $2,000 to US citizens. If people receive that money, it could be the demand catalyst to kickstart a freight recovery, according to Terrazas and Miller. There is also the battle between the US Department of Transportation (USDOT) and several states over rescinding non-domiciled commercial driver’s licenses (CDLs) to asylum seekers and other visa holders that were previously qualified. California announced a 60-day extension on canceling the non-domiciled CDLs, kicking the issue to March, while the USDOT has threatened to withhold federal funds over that decision. It’s unclear what the impact on both truckload and port drayage would be if California canceled as many as 17,000 non-domiciled CDLs. ”I think vulnerability to sustained disruption is a major issue,” Spencer said on the webcast. “Use this past little stretch in December as a good indicator of what to expect because there are going to be periods of volatility.” Contact Ari Ashe at ari.ashe@spglobal.com

Trucking News

Truckload

US truckload pricing remains unsettled despite red-hot December

<div class="phx-topic abstract-wrapper">The acquisition continues a wave of supply chain consolidation seen in Australia and New Zealand in recent years as service providers search for inorganic growth in a highly competitive market. </div>

The acquisition continues a wave of supply chain consolidation seen in Australia and New Zealand in recent years as service providers search for inorganic growth in a highly competitive market.

<div class="phx-topic">Medlog Oceania, a subsidiary of Mediterranean Shipping Co. (MSC) operating in Australia and New Zealand, said Wednesday it has signed an agreement to acquire the intermodal business of Melbourne-based Seaway’s, significantly expanding its footprint in the region. The acquisition continues a wave of supply chain consolidation in Australia and New Zealand in recent years as service providers search for inorganic growth in a highly competitive market. Financial details of the acquisition were not disclosed, but the deal is expected to be completed in the first quarter. “This acquisition reinforces our ability to deliver value-added solutions and drive sustainable growth across Oceania,” Giuseppe Prudente, chairman of Medlog, said in a statement. Medlog Oceania provides integrated logistics for Australian businesses, managing supply chains through road, rail and port connectivity. It offers container transport and warehousing, including cold storage, and connects regional exporters to global markets from locations in Western Australia, Victoria and New South Wales. While the acquisition does not include Seaway’s Sea Freight Forwarding, Air Freight and Shipping Agencies divisions, it strengthens Medlog Oceania’s presence in the state of Victoria and in the agricultural heartland on the Victoria-New South Wales border known as Sunraysia. It also supports Medlog’s global sustainability strategy, with the rail component playing a critical role in reducing carbon emissions. Seaway’s intermodal business offers integrated logistics solutions through a combination of road, rail and warehousing services, connecting regional exporters and importers across key markets. Craig McElvaney, CEO of Seaway Group, highlighted the need for scale and investment in offering intermodal services to customers in the region. “The Seaway Board believes its intermodal business has reached a point where its next phase of growth will be best supported by an organization with the scale, resources, and infrastructure to invest in, and expand the business further,” he said in the joint statement. <h3>Acquisitions drive economies of scale </h3>The last few years have seen significant mergers and acquisitions within Oceania’s supply chain and logistics sectors. Medlog itself has been expanding rapidly across Australia with full-suite services introduced in the past two years in addition to acquiring an empty container park near VICT terminal in Melbourne in 2024 and setting up its own intermodal operation and container park in Sydney last September. Other supply chain acquisitions include DP World Australia acquiring Australian logistics provider Silk Logistics in a deal valued at US$115 million in late 2024; Dachser taking over ACA International in 2023 to add Australia and New Zealand to its air and sea network; DHL Supply Chain acquiring Glen Cameron Group in 2022 and last year opening a health logistics facility in Auckland. In 2021, Mondiale Freight Services and VISA Global Logistics merged their international transport and logistics services to launch an $800 million revenue operation reaching across Australia, New Zealand, North Asia, Southeast Asia, the Indian Subcontinent and Europe. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

Medlog Oceania, a subsidiary of Mediterranean Shipping Co. (MSC) operating in Australia and New Zealand, said Wednesday it has signed an agreement to acquire the intermodal business of Melbourne-based Seaway’s, significantly expanding its footprint in the region. The acquisition continues a wave of supply chain consolidation in Australia and New Zealand in recent years as service providers search for inorganic growth in a highly competitive market. Financial details of the acquisition were not disclosed, but the deal is expected to be completed in the first quarter. “This acquisition reinforces our ability to deliver value-added solutions and drive sustainable growth across Oceania,” Giuseppe Prudente, chairman of Medlog, said in a statement. Medlog Oceania provides integrated logistics for Australian businesses, managing supply chains through road, rail and port connectivity. It offers container transport and warehousing, including cold storage, and connects regional exporters to global markets from locations in Western Australia, Victoria and New South Wales. While the acquisition does not include Seaway’s Sea Freight Forwarding, Air Freight and Shipping Agencies divisions, it strengthens Medlog Oceania’s presence in the state of Victoria and in the agricultural heartland on the Victoria-New South Wales border known as Sunraysia. It also supports Medlog’s global sustainability strategy, with the rail component playing a critical role in reducing carbon emissions. Seaway’s intermodal business offers integrated logistics solutions through a combination of road, rail and warehousing services, connecting regional exporters and importers across key markets. Craig McElvaney, CEO of Seaway Group, highlighted the need for scale and investment in offering intermodal services to customers in the region. “The Seaway Board believes its intermodal business has reached a point where its next phase of growth will be best supported by an organization with the scale, resources, and infrastructure to invest in, and expand the business further,” he said in the joint statement. Acquisitions drive economies of scale The last few years have seen significant mergers and acquisitions within Oceania’s supply chain and logistics sectors. Medlog itself has been expanding rapidly across Australia with full-suite services introduced in the past two years in addition to acquiring an empty container park near VICT terminal in Melbourne in 2024 and setting up its own intermodal operation and container park in Sydney last September. Other supply chain acquisitions include DP World Australia acquiring Australian logistics provider Silk Logistics in a deal valued at US$115 million in late 2024; Dachser taking over ACA International in 2023 to add Australia and New Zealand to its air and sea network; DHL Supply Chain acquiring Glen Cameron Group in 2022 and last year opening a health logistics facility in Auckland. In 2021, Mondiale Freight Services and VISA Global Logistics merged their international transport and logistics services to launch an $800 million revenue operation reaching across Australia, New Zealand, North Asia, Southeast Asia, the Indian Subcontinent and Europe. Contact Greg Knowler at greg.knowler@spglobal.com.

Supply chain

MSC’s Medlog Oceania inks deal for Seaway’s intermodal business

<div class="phx-topic abstract-wrapper">The integration will allow small truckload brokers to automate a range of load processes within their existing transportation management system.</div>

The integration will allow small truckload brokers to automate a range of load processes within their existing transportation management system.

<div class="phx-topic">DAT Freight &amp; Analytics on Wednesday said it has made its Convoy Platform that automates load posting and booking available within AscendTMS, a widely used transportation management system for small to mid-sized truckload freight brokers. The integration is part of a broader evolution away from manual posting on load boards, of which DAT operates the largest one in North America, toward a purely digital process that includes posting, bidding, booking, tracking, shipment documentation and payment. That process was set in motion in July through <a href="https://www.joc.com/article/dat-acquiring-convoy-automation-platform-from-flexport-6051850">DAT’s purchase of Convoy from Flexport</a>, with DAT running the Convoy Platform in parallel to its DAT One load board for brokers that preferred to automate all the constituent parts of a load lifecycle. Loads executed through the Convoy Platform are assessed a transaction fee, with DAT saying that brokers using AscendTMS will benefit from a “pay-as-you-go model” where they pay only for loads matched and completed within their pricing specifications. There are no additional monthly costs or minimum transaction requirements, the companies said in a statement. “Brokers are operating on tighter margins while navigating increasing fraud risk,” Bill Driegert, executive vice president of the Convoy Platform at DAT, said in the statement. “This integration provides AscendTMS users with the advanced freight automation and fraud-protection technology they need without a change in workflow or upfront investment.” AscendTMS CEO Tim Higham said the integration with DAT took a year to build to “work seamlessly 100% of the time.” “This integration is one of the most comprehensive we’ve ever done with any partner,” Higham said. “We expect that in three to five years, close to 100% of all spot market loads that were once posted to DAT (and to other load boards) will be transacted 100% digitally, with zero human involvement from initial match to final payment.” Driegert told the Journal of Commerce at the time of the Convoy acquisition that the platform would give brokers “optionality,” as there were some brokers that are eager to automate while others are still gravitating toward a more digital posting, bidding and booking workflow. <h3>Cost pressures </h3>The integration comes as brokers are under increasing cost pressure to manage their buy rates from carriers and sell rates to shippers. Ken Adamo, chief of analytics at DAT, posted on X Tuesday that December broker gross margins for 933,000 loads across 446 companies in DAT’s platform were $189.47 per load, an average of 9.9% margins. ”Gross margins under 10% are concerning and very rare at an industry level,” he wrote. “Generally, when we see [gross margin percentage] this low, it’s because rates are high and the [gross margin] per load is up.” For example, in December 2021, the gross margin per load was around 11% but that translated into roughly $250 per load. “Not only are we underperforming those margin levels, but brokers are also netting nearly 25% less gross profit per load than other high-rate environments,” Adamo wrote. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

DAT Freight & Analytics on Wednesday said it has made its Convoy Platform that automates load posting and booking available within AscendTMS, a widely used transportation management system for small to mid-sized truckload freight brokers. The integration is part of a broader evolution away from manual posting on load boards, of which DAT operates the largest one in North America, toward a purely digital process that includes posting, bidding, booking, tracking, shipment documentation and payment. That process was set in motion in July through DAT’s purchase of Convoy from Flexport , with DAT running the Convoy Platform in parallel to its DAT One load board for brokers that preferred to automate all the constituent parts of a load lifecycle. Loads executed through the Convoy Platform are assessed a transaction fee, with DAT saying that brokers using AscendTMS will benefit from a “pay-as-you-go model” where they pay only for loads matched and completed within their pricing specifications. There are no additional monthly costs or minimum transaction requirements, the companies said in a statement. “Brokers are operating on tighter margins while navigating increasing fraud risk,” Bill Driegert, executive vice president of the Convoy Platform at DAT, said in the statement. “This integration provides AscendTMS users with the advanced freight automation and fraud-protection technology they need without a change in workflow or upfront investment.” AscendTMS CEO Tim Higham said the integration with DAT took a year to build to “work seamlessly 100% of the time.” “This integration is one of the most comprehensive we’ve ever done with any partner,” Higham said. “We expect that in three to five years, close to 100% of all spot market loads that were once posted to DAT (and to other load boards) will be transacted 100% digitally, with zero human involvement from initial match to final payment.” Driegert told the Journal of Commerce at the time of the Convoy acquisition that the platform would give brokers “optionality,” as there were some brokers that are eager to automate while others are still gravitating toward a more digital posting, bidding and booking workflow. Cost pressures The integration comes as brokers are under increasing cost pressure to manage their buy rates from carriers and sell rates to shippers. Ken Adamo, chief of analytics at DAT, posted on X Tuesday that December broker gross margins for 933,000 loads across 446 companies in DAT’s platform were $189.47 per load, an average of 9.9% margins. ”Gross margins under 10% are concerning and very rare at an industry level,” he wrote. “Generally, when we see [gross margin percentage] this low, it’s because rates are high and the [gross margin] per load is up.” For example, in December 2021, the gross margin per load was around 11% but that translated into roughly $250 per load. “Not only are we underperforming those margin levels, but brokers are also netting nearly 25% less gross profit per load than other high-rate environments,” Adamo wrote. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

DAT, AscendTMS push Convoy load automation into small broker world

<div class="phx-topic abstract-wrapper">The delay in adopting the IMO’s net-zero emissions framework has injected more uncertainty into an alternative fuel market that was already struggling to attract crucial investment from both the public and private sectors.</div>

The delay in adopting the IMO’s net-zero emissions framework has injected more uncertainty into an alternative fuel market that was already struggling to attract crucial investment from both the public and private sectors.

<div class="phx-topic">The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: The October postponement of a vote on the International Maritime Organization’s (IMO’s) net-zero framework will make it more difficult for ocean carriers to hit already ambitious interim targets for reducing carbon emissions. Opposition from the White House — including threats of retaliation against members voting for the framework — derailed what would have been the first industry-wide emissions-cutting regulations for at least a year, and possibly longer if the US continues to lobby against it over the next 12 months. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6144852_0.1.jpg"></img></div>A look back: Significant divisions emerged between IMO member states over the net-zero framework, which includes midterm measures limiting carbon intensity in maritime fuel and an emissions pricing mechanism. But after intense debate at the IMO’s Marine Environmental Protection Committee (MEPC) meeting in London in April, the majority of member states voted to accept the framework. At that point, it seemed like a foregone conclusion that the IMO would officially adopt the framework during the October MEPC meeting and roll the regulations out globally in 2027. But the Trump administration had other ideas, and after an extensive campaign supported by petrostates and some of the world’s largest flag states, the IMO delayed voting on the measure until October 2026 at the earliest, putting global emissions goals for 2030 in serious doubt. In addition, the delay has injected more uncertainty into an alternative fuel market that was already struggling to attract crucial investment from both the public and private sectors. A look ahead: The MEPC will meet again this coming October, but a vote on the net-zero framework is not guaranteed. And although the delay may hurt the broader case for investment in the development of alternative fuels and related infrastructure, container carriers and shipowners remain firmly focused on LNG and methanol as the green fuels of choice in newbuild vessel orders. Even if the lack of a global regulatory framework from the IMO results in a patchwork of regional emissions-cutting initiatives, investment in dual-fuel ships capable of running on LNG or methanol will likely prove to be money well spent. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="af67ccea-0445-4726-bb51-ae3b852484b9"></dynamic-object></div>The next inflection: Narrowing the price differential between alternative fuels and traditional carbon-based fuel will be the key that unlocks adoption and accelerates the decarbonization of maritime shipping. Green fuels such as e-methanol, e-methane and green ammonia remain significantly more expensive than conventional bunkers, and the availability of biofuels is limited by supply constraints and high demand from other sectors such as aviation. The IMO adopting its net-zero framework would be a major step toward narrowing the price gap, guaranteeing demand for fuel suppliers hesitant to invest in large-scale production and, in turn, increasing availability and lowering costs for carriers. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.</div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: The October postponement of a vote on the International Maritime Organization’s (IMO’s) net-zero framework will make it more difficult for ocean carriers to hit already ambitious interim targets for reducing carbon emissions. Opposition from the White House — including threats of retaliation against members voting for the framework — derailed what would have been the first industry-wide emissions-cutting regulations for at least a year, and possibly longer if the US continues to lobby against it over the next 12 months. A look back: Significant divisions emerged between IMO member states over the net-zero framework, which includes midterm measures limiting carbon intensity in maritime fuel and an emissions pricing mechanism. But after intense debate at the IMO’s Marine Environmental Protection Committee (MEPC) meeting in London in April, the majority of member states voted to accept the framework. At that point, it seemed like a foregone conclusion that the IMO would officially adopt the framework during the October MEPC meeting and roll the regulations out globally in 2027. But the Trump administration had other ideas, and after an extensive campaign supported by petrostates and some of the world’s largest flag states, the IMO delayed voting on the measure until October 2026 at the earliest, putting global emissions goals for 2030 in serious doubt. In addition, the delay has injected more uncertainty into an alternative fuel market that was already struggling to attract crucial investment from both the public and private sectors. A look ahead: The MEPC will meet again this coming October, but a vote on the net-zero framework is not guaranteed. And although the delay may hurt the broader case for investment in the development of alternative fuels and related infrastructure, container carriers and shipowners remain firmly focused on LNG and methanol as the green fuels of choice in newbuild vessel orders. Even if the lack of a global regulatory framework from the IMO results in a patchwork of regional emissions-cutting initiatives, investment in dual-fuel ships capable of running on LNG or methanol will likely prove to be money well spent. The next inflection: Narrowing the price differential between alternative fuels and traditional carbon-based fuel will be the key that unlocks adoption and accelerates the decarbonization of maritime shipping. Green fuels such as e-methanol, e-methane and green ammonia remain significantly more expensive than conventional bunkers, and the availability of biofuels is limited by supply constraints and high demand from other sectors such as aviation. The IMO adopting its net-zero framework would be a major step toward narrowing the price gap, guaranteeing demand for fuel suppliers hesitant to invest in large-scale production and, in turn, increasing availability and lowering costs for carriers. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Container Shipping News

Regulatory uncertainty weighs heavy on green fuel investment as 2026 dawns

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 NYW26 at checkout to save 25% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

NEW YEAR SALE

Use code NYW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

Subscribe today using code NYW26 at checkout and save 25% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

Use code NYW995 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 NYW995 at checkout!

Subscribe Now - Anonymous to Gold - Wide Box

NEW YEAR SALE: Use code NYW26 to save 25% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

NEW YEAR SALE: Subscribe today using code NYW26 at checkout and save 25% 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

NEW YEAR SALE: Get into a Gold subscription today and save $500 by using code NYW995 at checkout!

Subscribe Now - Anonymous to Gold - Offer Box

NEW YEAR SALE: Use code NYW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

NEW YEAR SALE: Use code NYW995 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

Discover the news and analysis of supply chain strategies, sourcing and trends covered by the Journal of Commerce. Comprehensive coverage includes customs, trade news, transport news and the latest information about trade regulations.

Stay informed with the latest regulation news and trade updates. Explore comprehensive transportation news and trade regulations today.

Transport, Trade and Regulation News | Journal of Commerce

The Journal of Commerce’s supply chain news and analysis impacting the management of end-to-end supply chains reports on supply chain strategies, cargo visibility, inventory trends, sourcing, customs certification and contract logistics. Supply chain news coverage also delves into refrigerated shipping advancements and management of inventory status, regulatory updates and government funding projects.

Our logistics technology news include logistics technology startups, solutions, and the impact of technology on logistics and supply chain management.

Logistics Technology News | Journal of Commerce

A thorough cool cargoes news by Journal of Commerce. Learn about the latest trends in refrigerated cargo transportation, weight capacity, technology, and more.

Cool Cargo News | Journal of Commerce

Cool Cargo News

Journal of Commerce keeps you informed on the latest last mile news with comprehensive coverage of carriers, logistics, and last mile transportation solutions.

Last Mile News | Journal of Commerce

Last Mile News

Discover the latest industrial real estate news and trends. Covering projects, real estate supply chain, logistics, pricing, cross dock facilities, and more.

Industrial Real Estate News | Journal of Commerce

Industrial Real Estate News

Stay updated on supply chain strategies, cargo visibility, inventory trends and more with our comprehensive supply chain news and analysis.

Latest News

More News & Analysis

Severe winter storm disrupts North Europe port, inland operations

US truckload pricing remains unsettled despite red-hot December

MSC’s Medlog Oceania inks deal for Seaway’s intermodal business