<div class="phx-topic abstract-wrapper">Tesla is touting with considerable fanfare its new, electric truck — the Semi. But which haul mission will the new truck perform best at?</div>

Tesla is touting with considerable fanfare its new, electric truck — the Semi. But which haul mission will the new truck perform best at?

<div><div><img></div>Elon Musk's Tesla has proven it can enter an established market can secure a portion of the market. Photo credit: @elonmusk.In his Nov. 16 tweet promoting the rollout of <a>Tesla’s new electric semi-truck</a>, Tesla CEO Elon Musk promised, “This will blow your mind clear out of your skull and into an alternate dimension.” Well, Tesla's event did not give one the feeling of being in a parallel universe. Nevertheless, the event created substantial buzz and produced real results in the form of options on production being purchased by companies such as <a>J.B. Hunt Transport Services</a> and <a>Wal-Mart</a>. Will the Tesla...

Elon Musk's Tesla has proven it can enter an established market can secure a portion of the market. Photo credit: @elonmusk. In his Nov. 16 tweet promoting the rollout of Tesla’s new electric semi-truck , Tesla CEO Elon Musk promised, “This will blow your mind clear out of your skull and into an alternate dimension.” Well, Tesla's event did not give one the feeling of being in a parallel universe. Nevertheless, the event created substantial buzz and produced real results in the form of options on production being purchased by companies such as J.B. Hunt Transport Services and Wal-Mart . Will the Tesla Semi be a game-changer or are we witnessing a well-orchestrated public relations exercise aimed primarily at investors, who have given Tesla a market cap approaching that of General Motors? Perhaps a little bit of both. Here is what we know: the Tesla Semi will have the basic configuration of a Class 8 tractor , with two drive axles, each powered by two electric motors. Its all-electric drive train will be guaranteed for 1 million miles. Much of the braking will be performed by regenerative brakes that recapture the rolling truck’s kinetic energy and pump it back into the battery instead of wasting it as heat. The Tesla Semi will come in two models, one with a 300-mile range selling for approximately $150,000, and one capable of 500 miles on a single charge at a price of about $180,000. A network of solar-powered “mega-chargers” will be used to recharge the truck, providing another 400 miles of range in 30 minutes. The truck will be aerodynamic and will utilize a center-cab design that places the driver on the centerline of the lane. It will be equipped with a version of Tesla’s self-driving software and will be capable of operating in platoons. And the truck will go from 0 to 60 mph in five seconds. The last item is perhaps one hint as to the main purpose of the rollout. One would be hard-pressed to find an industry analyst who knows many trucking executives who are longing for a truck that can burn rubber, and performance claims such as these seem to be aimed more at the general public. Unlike the prospective purchaser of the Tesla Model S sports car, the prospective buyers of the Tesla Semi are profit-oriented and will be interested in economics, not glitz. Tesla predicts a 20 percent savings versus conventional, fossil fuel trucks and says the Semi represents “economic suicide for rail.” Without the economic calculations to support these claims, however, they need to be taken with a healthy dose of salt. Still, coming from the man whose company has figured out how to consistently land the first stage of an orbital rocket back on a floating platform in the ocean, they also need to be taken seriously. But questions remain. Are the ranges quoted idealistic numbers, such as the miles per gallon on a car sticker — theoretically achievable but only under ideal conditions — or are they real-world numbers? More importantly, what will the rig weigh? This critical piece of information has been notably absent from any description of the Semi. Although most of the coverage has focused on the potential of the Semi as an inter-city hauler, that is a sideshow. The main event will be the potential use of the technology in short-haul applications, where most freight resides. In such applications, the Semi’s potential benefits loom larger, and the importance of range and recharging time recede. Agility and regenerative braking are far more valuable in stop-and-go contexts, as are zero-emission/no idle operations. A dense network of mega-chargers and quick charge times become less relevant if the round trip can be made reliably on a single charge with “recharging/refueling” done at home base. The million-mile drivetrain becomes more valuable, given the additional demands on the power train in urban/expressway driving. But the key question of the weight of the rig remains. Analysts have estimated the weight of the battery pack at perhaps 10,000 pounds. A lot of weight will be eliminated in the form of the diesel engine, transmission, and other parts, of course, but 10,000 pounds? That would represent 55 to 60 percent of the weight of a typical conventional day cab. The problem is that every extra pound represents an equivalent loss of payload. This may be tolerable in a dedicated operation where the shipper can adjust the payload, but it is a non-starter in a general context such as port cartage where there is no control over the load in a container stuffed overseas. The options purchased by J.B. Hunt and Wal-Mart represent important votes of confidence. But at the initial deposit price of just $5,000 apiece (probably fully refundable), they also represent great public relations at a low price for companies interested in burnishing their image as innovative, ecologically minded corporate citizens. Trucking sector analysts and envronmental science professionals, among others, will be watching the developments with interest. But Tesla is hardly the only entrant in the sweepstakes to replace the conventional diesel truck. In the end, the potential success of the electric truck will not be determined by the design of the truck, but by the characteristics of the battery. If enough energy can be stored at a reasonable weight, the application of the technology in short-haul technology will be assured. That market alone is large enough to make a big overall impact. But improvements in battery technology have proved hard to achieve. So, when it comes to the true potential of the Tesla Semi, the evaluators are from Missouri. Their refrain: "Show me." Lawrence J. Gross is president of Gross Transportation Consulting in Mahwah, New Jersey. Contact him at ljgross@optonline.net and follow him on Twitter: @intermodalist .

Trucking News

Logistics Technology News

Analysis: The Tesla semi's major selling points

<div class="phx-topic abstract-wrapper">Trucking executives don’t believe a crackdown on truck drivers who can’t speak or read English will significantly reduce truck capacity.</div>

Trucking executives don’t believe a crackdown on truck drivers who can’t speak or read English will significantly reduce truck capacity.

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<div class="phx-topic">Members of Congress are joining a growing campaign to get US truck drivers who can’t communicate in English or read road signs off the road, introducing a bill in the US House of Representatives Thursday that would make that goal the law. That may help get some unqualified truck drivers off the road, but trucking executives don’t believe a crackdown on truck drivers who can’t speak or read English will significantly affect truck capacity, which is still over supplied. The introduction of “Connor’s Law” by Rep. Dave Taylor, R-Ohio, and Rep. Harriet Hageman, R-Wyo., follows an order from Transportation Sec. Sean Duffy that makes violation of the English-language proficiency (ELP) requirement an out-of-service violation. An English-language requirement for truck drivers has been part of the Federal Motor Carrier Safety Regulations (FMCSR) since 1937, but enforcement has varied. There’s no question these efforts restore teeth to enforcement of the ELP requirement. There is a question as to how much of an impact that will have on trucking or on highway safety. For one, there’s no census or other hard source of data on how many US truck drivers don’t meet the ELP requirement or how that correlates with road accidents. Sec. Duffy believes strict enforcement of the ELP requirement will help force “bad actors” out of a business he compared to the “Wild West.” That may reduce the risk of deadly accidents like the one that killed Connor Dzion in 2017, but those who expect an exodus of unqualified drivers that would tighten capacity and reset pricing may be expecting too much. Many trucking executives believe truckers without English-language skills are “a small cohort” in a large driver pool. “It’s ridiculous to think that we’ll start enforcing this and it will have an impact on truck capacity,” said a trucking executive who asked not to be named. <h3>Cracking down </h3>Under new Department of Transportation (DOT) guidelines, truck drivers who cannot communicate with law enforcement will be placed out of service, meaning they will not be permitted to drive. The same holds true for those that can’t read US road signs. The DOT’s new enforcement guidelines take effect June 25. The passage of Connor’s Law would mean that guidance could not be changed except by congressional action. Connor’s Law also follows executive orders by President Donald Trump making English the official language of the US and ordering enforcement of truck driver ELP requirements. Similar legislation is moving through state legislatures, including bills with stiff penalties. Oklahoma Gov. Rick Stitt on Wednesday signed a bill into law that would impose a $3,000 fine on truck drivers that can’t meet US ELP requirements and jail time for repeat offenders. A similar law was enacted in Arkansas in April with fines of up to $1,000. Connor's Law – named for Connor Dzion -- is supported by the several trucking groups, including the Small Business in Trucking Coalition (SBTC), the Owner-Operator Independent Driver’s Association (OOIDA) and the American Trucking Associations (ATA), among others.Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a></div>

Members of Congress are joining a growing campaign to get US truck drivers who can’t communicate in English or read road signs off the road, introducing a bill in the US House of Representatives Thursday that would make that goal the law. That may help get some unqualified truck drivers off the road, but trucking executives don’t believe a crackdown on truck drivers who can’t speak or read English will significantly affect truck capacity, which is still over supplied. The introduction of “Connor’s Law” by Rep. Dave Taylor, R-Ohio, and Rep. Harriet Hageman, R-Wyo., follows an order from Transportation Sec. Sean Duffy that makes violation of the English-language proficiency (ELP) requirement an out-of-service violation. An English-language requirement for truck drivers has been part of the Federal Motor Carrier Safety Regulations (FMCSR) since 1937, but enforcement has varied. There’s no question these efforts restore teeth to enforcement of the ELP requirement. There is a question as to how much of an impact that will have on trucking or on highway safety. For one, there’s no census or other hard source of data on how many US truck drivers don’t meet the ELP requirement or how that correlates with road accidents. Sec. Duffy believes strict enforcement of the ELP requirement will help force “bad actors” out of a business he compared to the “Wild West.” That may reduce the risk of deadly accidents like the one that killed Connor Dzion in 2017, but those who expect an exodus of unqualified drivers that would tighten capacity and reset pricing may be expecting too much. Many trucking executives believe truckers without English-language skills are “a small cohort” in a large driver pool. “It’s ridiculous to think that we’ll start enforcing this and it will have an impact on truck capacity,” said a trucking executive who asked not to be named. Cracking down Under new Department of Transportation (DOT) guidelines, truck drivers who cannot communicate with law enforcement will be placed out of service, meaning they will not be permitted to drive. The same holds true for those that can’t read US road signs. The DOT’s new enforcement guidelines take effect June 25. The passage of Connor’s Law would mean that guidance could not be changed except by congressional action. Connor’s Law also follows executive orders by President Donald Trump making English the official language of the US and ordering enforcement of truck driver ELP requirements. Similar legislation is moving through state legislatures, including bills with stiff penalties. Oklahoma Gov. Rick Stitt on Wednesday signed a bill into law that would impose a $3,000 fine on truck drivers that can’t meet US ELP requirements and jail time for repeat offenders. A similar law was enacted in Arkansas in April with fines of up to $1,000. Connor's Law – named for Connor Dzion -- is supported by the several trucking groups, including the Small Business in Trucking Coalition (SBTC), the Owner-Operator Independent Driver’s Association (OOIDA) and the American Trucking Associations (ATA), among others. Contact William B. Cassidy at bill.cassidy@spglobal.com

Transport, Trade and Regulation News

Truckload

Surface

Congress, states join DOT targeting non-English-speaking truckers

<div class="phx-topic abstract-wrapper">To achieve the promised 95% on-time performance, J.B. Hunt will require a strong collaboration with BNSF Railway and Grupo México Transportes (Ferromex) to navigate challenges in cross-border rail.</div>

To achieve the promised 95% on-time performance, J.B. Hunt will require a strong collaboration with BNSF Railway and Grupo México Transportes (Ferromex) to navigate challenges in cross-border rail.

<div class="phx-topic">J.B. Hunt Transport Services, BNSF Railway and Mexican rail operator GTX are launching a cross-border intermodal service pledging at least 95% on-time performance, underscoring rising demand for truck-like dependable intermodal service from Mexico to the US. The Quantum de Mexico service was launched Friday, starting with the formal process of reaching out to current and potential shippers, gauging interest and their delivery standards. It’s a process that could take a few months to complete, the company said. The 95% on-time guarantee will be measured differently based on criteria established with each shipper, but in general J.B. Hunt will deliver cargo within a delivery window, much like a window a homeowner might see waiting for a plumber or HVAC technician. “Each standard operating procedure for Quantum de Mexico will be tailored to the customer,” said Spencer Frazier, executive vice president of sales and marketing at J.B. Hunt. “We will design the service based on customer needs at point of delivery.” The Quantum de Mexico service — based on the US Quantum service launched by J.B. Hunt and BNSF in 2023 — will connect Guadalajara, Mexico City, and Monterrey to Chicago, Dallas, and parts of the US West Coast and East Coast which have yet to be named. Quantum de Mexico will fuel rising competition for cross-border freight, both in intermodal and trucking markets. On the rails, Quantum will compete with Union Pacific Railroad’s Falcon Premium and Canadian Pacific Kansas City’s (CPKC) Mexico Midwest Express. J.B. Hunt’s direct competitors are Hub Group and Schneider National. Hub Group has partnered with UP’s Falcon Premium and launched a <a href="https://www.joc.com/article/hub-group-boosts-cross-border-business-in-jv-with-mexican-dray-carrier-5745355">joint venture</a> with Mexican drayage provider Easo. Schneider is the primary customer of CPKC’s cross-border services. The intermodal providers all compete with long-established truckload options. Trucking handles most of the cross-border freight with intermodal rail accounting for about 10% to 15% of dry freight business, according to the US Bureau of Transportation Statistics. The total number of trucks entering the US from Mexico increased 3.5% in 2024, rising to 7.6 million. Just eight border crossings handled 92.8% of those trucks. Those border crossings are a narrow funnel that is getting tighter as cross-border volumes rise. <h3>Where it gets complicated </h3>Shippers are looking for new solutions and ways to avoid delays and speed cross-border shipments, and time-sensitive intermodal, once a contradiction in terms, is now a real option, the J.B. Hunt, BNSF and GTX told the Journal of Commerce. “In Mexico, potential issues with over-the-road capacity and lack of infrastructure investment are driving our customer to say, ‘Hey, we need something different,” Frazier said in an interview. “It’s not just consistent capacity; it’s the high level of service.” The need for speed in replenishment and to avoid penalties for missing delivery deadlines continues to drive changes in supply chains, creating opportunities for services like Quantum, which will be up to one day faster than regular intermodal service. In the US, Quantum service is more expensive than regular intermodal but not as expensive as expedited trains. The nature of the US-Mexico border makes delivering 95% reliability significantly tougher than hitting such a target on US domestic moves. For example, Mexican regulations allow an electronic submission of customs documents, known as pedimentos, but also require a physical copy to be delivered. That requires a runner to hand over documents for a stamp before a container can be loaded or rejected. Additionally, customs offices are open 24 hours in Monterrey, but others in less populated cities close outside of standard business hours. Quantum de Mexico will set up processes with each customer to clear customs hurdles before freight is loaded, Frazier said. “We will have specific operational spots at GTX terminals (in Mexico) for Quantum shipments at a schedule dictated by the customer,” he said. “We will have someone from GTX in Fort Worth, Texas, for 24/7 oversight of Quantum shipments.” J.B. Hunt’s partnership with BNSF includes a co-located office in Fort Worth, Texas, where employees of both companies monitor Quantum loads 24 hours a day. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. Senior Editor William B. Cassidy contributed to this report. </div>

J.B. Hunt Transport Services, BNSF Railway and Mexican rail operator GTX are launching a cross-border intermodal service pledging at least 95% on-time performance, underscoring rising demand for truck-like dependable intermodal service from Mexico to the US. The Quantum de Mexico service was launched Friday, starting with the formal process of reaching out to current and potential shippers, gauging interest and their delivery standards. It’s a process that could take a few months to complete, the company said. The 95% on-time guarantee will be measured differently based on criteria established with each shipper, but in general J.B. Hunt will deliver cargo within a delivery window, much like a window a homeowner might see waiting for a plumber or HVAC technician. “Each standard operating procedure for Quantum de Mexico will be tailored to the customer,” said Spencer Frazier, executive vice president of sales and marketing at J.B. Hunt. “We will design the service based on customer needs at point of delivery.” The Quantum de Mexico service — based on the US Quantum service launched by J.B. Hunt and BNSF in 2023 — will connect Guadalajara, Mexico City, and Monterrey to Chicago, Dallas, and parts of the US West Coast and East Coast which have yet to be named. Quantum de Mexico will fuel rising competition for cross-border freight, both in intermodal and trucking markets. On the rails, Quantum will compete with Union Pacific Railroad’s Falcon Premium and Canadian Pacific Kansas City’s (CPKC) Mexico Midwest Express. J.B. Hunt’s direct competitors are Hub Group and Schneider National. Hub Group has partnered with UP’s Falcon Premium and launched a joint venture with Mexican drayage provider Easo. Schneider is the primary customer of CPKC’s cross-border services. The intermodal providers all compete with long-established truckload options. Trucking handles most of the cross-border freight with intermodal rail accounting for about 10% to 15% of dry freight business, according to the US Bureau of Transportation Statistics. The total number of trucks entering the US from Mexico increased 3.5% in 2024, rising to 7.6 million. Just eight border crossings handled 92.8% of those trucks. Those border crossings are a narrow funnel that is getting tighter as cross-border volumes rise. Where it gets complicated Shippers are looking for new solutions and ways to avoid delays and speed cross-border shipments, and time-sensitive intermodal, once a contradiction in terms, is now a real option, the J.B. Hunt, BNSF and GTX told the Journal of Commerce. “In Mexico, potential issues with over-the-road capacity and lack of infrastructure investment are driving our customer to say, ‘Hey, we need something different,” Frazier said in an interview. “It’s not just consistent capacity; it’s the high level of service.” The need for speed in replenishment and to avoid penalties for missing delivery deadlines continues to drive changes in supply chains, creating opportunities for services like Quantum, which will be up to one day faster than regular intermodal service. In the US, Quantum service is more expensive than regular intermodal but not as expensive as expedited trains. The nature of the US-Mexico border makes delivering 95% reliability significantly tougher than hitting such a target on US domestic moves. For example, Mexican regulations allow an electronic submission of customs documents, known as pedimentos, but also require a physical copy to be delivered. That requires a runner to hand over documents for a stamp before a container can be loaded or rejected. Additionally, customs offices are open 24 hours in Monterrey, but others in less populated cities close outside of standard business hours. Quantum de Mexico will set up processes with each customer to clear customs hurdles before freight is loaded, Frazier said. “We will have specific operational spots at GTX terminals (in Mexico) for Quantum shipments at a schedule dictated by the customer,” he said. “We will have someone from GTX in Fort Worth, Texas, for 24/7 oversight of Quantum shipments.” J.B. Hunt’s partnership with BNSF includes a co-located office in Fort Worth, Texas, where employees of both companies monitor Quantum loads 24 hours a day. Contact Ari Ashe at ari.ashe@spglobal.com . Senior Editor William B. Cassidy contributed to this report.

Rail News

North-American rail

Intermodal providers

J.B. Hunt launching Quantum de Mexico for time-sensitive cross-border freight

<div class="phx-topic abstract-wrapper">Within a span of roughly 24 hours, one court decision blocked the US tariffs and a separate ruling restored the tariffs through June 9, if not longer. </div>

Within a span of roughly 24 hours, one court decision blocked the US tariffs and a separate ruling restored the tariffs through June 9, if not longer.

<div class="phx-topic">US importers ended Thursday with little clarity on the permanence of sweeping tariffs after an appeals court allowed President Donald Trump’s tax to go forward for a least a week-and-a-half. The US Court of Appeals for the Federal Circuit’s decision Thursday to pause the International Trade Court’s <a href="https://www.joc.com/article/federal-court-ruling-blocking-tariffs-resets-shipping-outlook-6013402">rejection of the tariffs Wednesday</a>, citing a lack of constitutionality, comes in the early days of peak season and with inbound capacity from Asia generally booked through next month.The appeals court laid out a briefing schedule through June 9 but did not detail its reasoning for the pause.The Trump administration has said it is also looking at other ways to maintain tariffs, suggesting importers won’t have clarity on the permanence of tariffs in the foreseeable future. The rulings don’t apply to US tariffs of aluminum and steel, which put downward pressure on US breakbulk demand.Amid a flurry of mixed signals, smaller shippers may be gauging whether to rush or slow shipments, logistic consultant Kevin Parkerson told the Journal of Commerce. But, he said, the largest retailers are keeping their strategies consistent with how they’ve operated since tariffs were announced in April: maintain imports to keep goods on shelves, whatever the tariff rate. US importers had little time to change their booking plans given that the two rulings occurred within roughly 24 hours of each other. Before this week, container lines warned that container space from Asia to the US <a href="https://www.joc.com/article/ocean-carriers-bring-in-more-trans-pacific-container-services-amid-rate-surge-6012725">would be tight through June</a> as they worked to restore capacity removed following the plunge in bookings out of China. The peak season ahead of the winter holidays generally begins in June and runs through August, though it has moved to other windows in recent years due to various external dynamics. US retail imports are <a href="https://www.joc.com/article/us-retailers-project-first-year-over-year-import-cut-in-19-months-as-tariffs-bite-6001817">forecast to end this month with the first decline</a> in more than a year and a half, according to Global Port Tracker (GPT) published in early May by Hackett Associates on behalf of the National Retail Federation. US imports will end May down 13% May 2024, and will mark the first year-over-year decline in 19 months. </div>

US importers ended Thursday with little clarity on the permanence of sweeping tariffs after an appeals court allowed President Donald Trump’s tax to go forward for a least a week-and-a-half. The US Court of Appeals for the Federal Circuit’s decision Thursday to pause the International Trade Court’s rejection of the tariffs Wednesday , citing a lack of constitutionality, comes in the early days of peak season and with inbound capacity from Asia generally booked through next month. The appeals court laid out a briefing schedule through June 9 but did not detail its reasoning for the pause. The Trump administration has said it is also looking at other ways to maintain tariffs, suggesting importers won’t have clarity on the permanence of tariffs in the foreseeable future. The rulings don’t apply to US tariffs of aluminum and steel, which put downward pressure on US breakbulk demand. Amid a flurry of mixed signals, smaller shippers may be gauging whether to rush or slow shipments, logistic consultant Kevin Parkerson told the Journal of Commerce. But, he said, the largest retailers are keeping their strategies consistent with how they’ve operated since tariffs were announced in April: maintain imports to keep goods on shelves, whatever the tariff rate. US importers had little time to change their booking plans given that the two rulings occurred within roughly 24 hours of each other. Before this week, container lines warned that container space from Asia to the US would be tight through June as they worked to restore capacity removed following the plunge in bookings out of China. The peak season ahead of the winter holidays generally begins in June and runs through August, though it has moved to other windows in recent years due to various external dynamics. US retail imports are forecast to end this month with the first decline in more than a year and a half, according to Global Port Tracker (GPT) published in early May by Hackett Associates on behalf of the National Retail Federation. US imports will end May down 13% May 2024, and will mark the first year-over-year decline in 19 months.

Maritime

Port News

Trans-Atlantic

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Trans-Pacific

North American ports

Container lines

Appeals court temporarily restores US tariffs

<div class="phx-topic abstract-wrapper">The industry says consistency and communication are the key to minimizing disruption to port traffic during the project to repair the deck of the Vincent Thomas Bridge.</div>

The industry says consistency and communication are the key to minimizing disruption to port traffic during the project to repair the deck of the Vincent Thomas Bridge.

<div class="phx-topic">The state of California’s plan to minimize disruption of truck traffic serving the Port of Los Angeles during a 16-month-long bridge repair project is building confidence among harbor truckers and other stakeholders that they’ll be able to plan and manage accordingly. The California Department of Transportation is designating and re-paving detour routes and has agreed to establish an extensive real-time communications network to update motorists and truckers about traffic conditions in the Los Angeles-Long Beach port complex throughout the construction project, Matt Schrap, CEO of the Harbor Trucking Association (HTA), told the Journal of Commerce Wednesday. “We need consistency. If communication is consistent, we can plan,” he said. The Vincent Thomas Bridge deck replacement project will begin this winter with one-directional night closures to be announced. This is just the prelude to full closure of the bridge for 16 months from November 2026 to March 2028, Rimma Tebeleva, senior transportation engineer and project manager at Caltrans District 7, told the Los Angeles-Long Beach Propeller Club on Wednesday. The bridge, located at the approach to Los Angeles harbor, handles 53,000 vehicles each day, about 3,400 of which are heavy-duty trucks, Tebeleva said. Caltrans in recent months has held meetings with port stakeholders including representatives of the HTA; the Pacific Merchant Shipping Association, which represents terminal operators; the Pacific Maritime Association and the International Longshore and Warehouse Union, which represent management and labor; and the Port of Los Angeles. “We are currently working with port pilots, engineers and consultants to fully understand the impacts from construction,” a port spokesman told the Journal of Commerce. The traffic management and communications program will respond in real time to issues as they arise, said Kenneth Young, chief in the Office of the District Traffic Manager at Caltrans District 7. “It will detect queries as they develop and advise on alternate routes,” Young told the meeting. He added that Caltrans intends to divert traffic as necessary to state highways in order to minimize use of local roadways. Schrap agreed that this strategy is necessary in order to prevent friction in communities near the port. “We don’t want trucks going through neighborhoods,” he said. The work in the coming year will involve temporary placement of a platform underneath the bridge to support it during the construction process, Tebeleva said. This will reduce the air draft underneath the bridge by about 2.5 feet during construction. Port engineers and pilots are studying the impact this will have on vessel traffic in the channel, the port spokesman said. The Vincent Thomas Bridge opened in 1963. In recent years, structural problems such as cement cracking have accelerated, Tebeleva said. Schrap said the working group will continue to alert Caltrans on measures port stakeholders feel are needed to maintain traffic flow in the harbor area, and he anticipates the agency will respond accordingly. “We feel our messaging has gotten through. We feel we’re in a good place,” he said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

The state of California’s plan to minimize disruption of truck traffic serving the Port of Los Angeles during a 16-month-long bridge repair project is building confidence among harbor truckers and other stakeholders that they’ll be able to plan and manage accordingly. The California Department of Transportation is designating and re-paving detour routes and has agreed to establish an extensive real-time communications network to update motorists and truckers about traffic conditions in the Los Angeles-Long Beach port complex throughout the construction project, Matt Schrap, CEO of the Harbor Trucking Association (HTA), told the Journal of Commerce Wednesday. “We need consistency. If communication is consistent, we can plan,” he said. The Vincent Thomas Bridge deck replacement project will begin this winter with one-directional night closures to be announced. This is just the prelude to full closure of the bridge for 16 months from November 2026 to March 2028, Rimma Tebeleva, senior transportation engineer and project manager at Caltrans District 7, told the Los Angeles-Long Beach Propeller Club on Wednesday. The bridge, located at the approach to Los Angeles harbor, handles 53,000 vehicles each day, about 3,400 of which are heavy-duty trucks, Tebeleva said. Caltrans in recent months has held meetings with port stakeholders including representatives of the HTA; the Pacific Merchant Shipping Association, which represents terminal operators; the Pacific Maritime Association and the International Longshore and Warehouse Union, which represent management and labor; and the Port of Los Angeles. “We are currently working with port pilots, engineers and consultants to fully understand the impacts from construction,” a port spokesman told the Journal of Commerce. The traffic management and communications program will respond in real time to issues as they arise, said Kenneth Young, chief in the Office of the District Traffic Manager at Caltrans District 7. “It will detect queries as they develop and advise on alternate routes,” Young told the meeting. He added that Caltrans intends to divert traffic as necessary to state highways in order to minimize use of local roadways. Schrap agreed that this strategy is necessary in order to prevent friction in communities near the port. “We don’t want trucks going through neighborhoods,” he said. The work in the coming year will involve temporary placement of a platform underneath the bridge to support it during the construction process, Tebeleva said. This will reduce the air draft underneath the bridge by about 2.5 feet during construction. Port engineers and pilots are studying the impact this will have on vessel traffic in the channel, the port spokesman said. The Vincent Thomas Bridge opened in 1963. In recent years, structural problems such as cement cracking have accelerated, Tebeleva said. Schrap said the working group will continue to alert Caltrans on measures port stakeholders feel are needed to maintain traffic flow in the harbor area, and he anticipates the agency will respond accordingly. “We feel our messaging has gotten through. We feel we’re in a good place,” he said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port infrastructure

Marine terminals

LA port stakeholders warming to plan to mitigate impact of bridge project

<div class="phx-topic abstract-wrapper">Sources have linked some of the US-India blankings to carriers shifting capacity to capitalize on surging volumes on the eastbound trans-Pacific trade following a temporary 90-day tariff truce between the US and China.</div>

Sources have linked some of the US-India blankings to carriers shifting capacity to capitalize on surging volumes on the eastbound trans-Pacific trade following a temporary 90-day tariff truce between the US and China.

<div class="phx-topic">Ocean freight rates from India to US East Coast trade are gaining momentum as carriers shift vessels to the trans-Pacific following a pause in the steepest US tariffs on Chinese goods. Carriers plan to blank five sailings across two India-US East Coast services — the CMA CGM-operated Indamex and Ocean Network Express’ (ONE’s) WIN service — in June, in addition to one sailing on the Indamex in late May, according to forwarders. The US and China on May 12 agreed to pause reciprocal tariffs for at least 90 days while they negotiate a more permanent trade agreement, prompting a rush of bookings out of China and a <a href="https://www.joc.com/article/trans-pacific-services-set-for-restart-as-carriers-scramble-to-restore-capacity-6009352">rapid redeployment of capacity</a> that had been idled or shifted to other trade lanes. A federal trade court on Wednesday <a href="https://www.joc.com/article/federal-court-ruling-blocking-tariffs-resets-shipping-outlook-6013402">struck down the US tariffs on Chinese goods</a>, along with a blanket 10% duty on imports from India. The administration of President Donald Trump will likely appeal. Although US imports from India have been rising for months — hitting a nearly two-year high in March and April, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global — that hasn’t been enough to move the needle on spot rates. That is, until this week. Average India-US East Coast spot rates surged to $2,733 per FEU this week, up 30.2% from last week and 32.7% year over year, according to Platts, also part of S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="012ef4fa-2944-47b8-a1aa-f17c27744520"></dynamic-object></div>All major carriers on the West India-US East Coast trade lane have lined up multiple rounds of general rate increases (GRIs) and peak season surcharges (PSSs) — ranging from $1,500 to $2,500 per container — through June. Sources who spoke with the Journal of Commerce believe the tightening of capacity gives carriers an opportunity to push through rate hikes of at least $1,000 per container beginning June 1. Hapag-Lloyd, for example, will roll that amount into its spot pricing, while Maersk has pushed back a planned $1,500-per-box PSS from June 2 to June 16. Forwarders also said spot space on Maersk’s first two sailings in June is already sold out. “With anticipated lower capacity, our estimate is that average spot booking rates [ex-West India] will land somewhere between $2,500 and $3,000 per FEU in June,” an executive at a Mumbai-based forwarder who asked not to be identified told the Journal of Commerce. “For long-term contract clients, the average level should be between $2,500 to $2,700 per FEU.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Ocean freight rates from India to US East Coast trade are gaining momentum as carriers shift vessels to the trans-Pacific following a pause in the steepest US tariffs on Chinese goods. Carriers plan to blank five sailings across two India-US East Coast services — the CMA CGM-operated Indamex and Ocean Network Express’ (ONE’s) WIN service — in June, in addition to one sailing on the Indamex in late May, according to forwarders. The US and China on May 12 agreed to pause reciprocal tariffs for at least 90 days while they negotiate a more permanent trade agreement, prompting a rush of bookings out of China and a rapid redeployment of capacity that had been idled or shifted to other trade lanes. A federal trade court on Wednesday struck down the US tariffs on Chinese goods , along with a blanket 10% duty on imports from India. The administration of President Donald Trump will likely appeal. Although US imports from India have been rising for months — hitting a nearly two-year high in March and April, according to PIERS, a sister product of the Journal of Commerce within S&P Global — that hasn’t been enough to move the needle on spot rates. That is, until this week. Average India-US East Coast spot rates surged to $2,733 per FEU this week, up 30.2% from last week and 32.7% year over year, according to Platts, also part of S&P Global. All major carriers on the West India-US East Coast trade lane have lined up multiple rounds of general rate increases (GRIs) and peak season surcharges (PSSs) — ranging from $1,500 to $2,500 per container — through June. Sources who spoke with the Journal of Commerce believe the tightening of capacity gives carriers an opportunity to push through rate hikes of at least $1,000 per container beginning June 1. Hapag-Lloyd, for example, will roll that amount into its spot pricing, while Maersk has pushed back a planned $1,500-per-box PSS from June 2 to June 16. Forwarders also said spot space on Maersk’s first two sailings in June is already sold out. “With anticipated lower capacity, our estimate is that average spot booking rates [ex-West India] will land somewhere between $2,500 and $3,000 per FEU in June,” an executive at a Mumbai-based forwarder who asked not to be identified told the Journal of Commerce. “For long-term contract clients, the average level should be between $2,500 to $2,700 per FEU.” Contact Bency Mathew at bencyvmathew@gmail.com .

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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