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<div class="phx-topic abstract-wrapper">My 2011 conference year just came to a close with the final sessions of the 5th Annual TPM Asia Conference in Shenzhen, China.</div>

My 2011 conference year just came to a close with the final sessions of the 5th Annual TPM Asia Conference in Shenzhen, China.

<div>My 2011 conference year just came to a close with the final sessions of the 5th Annual TPM Asia Conference in Shenzhen, China. Not that conferences are no longer on my mind &amp;mdash; we&amp;rsquo;re well under way with our program planning for TPM Long Beach 2012, coming up next March, but for now I&amp;rsquo;m sitting in my hotel room thinking about my journey to Shenzhen and my experiences and impressions of the just-completed event.In late September at the Canada Maritime Conference in Montreal, one of the speakers made a passing reference to the similarities between the airline industry and the...

My 2011 conference year just came to a close with the final sessions of the 5th Annual TPM Asia Conference in Shenzhen, China. Not that conferences are no longer on my mind &mdash; we&rsquo;re well under way with our program planning for TPM Long Beach 2012, coming up next March, but for now I&rsquo;m sitting in my hotel room thinking about my journey to Shenzhen and my experiences and impressions of the just-completed event. In late September at the Canada Maritime Conference in Montreal, one of the speakers made a passing reference to the similarities between the airline industry and the shipping industry. I have some experience on the air side (and not only as a passenger), and didn&rsquo;t actually agree with this speaker&rsquo;s viewpoints. But after my journey from Portland, Ore., to Hong Kong for the TPM Asia event, I was forced to re-evaluate my position. I admit my routing was unorthodox &mdash; red-eye from Portland to Chicago, then Chicago to Hong Kong &mdash; but there were very good reasons. Still, I have no one to blame but myself for the almost nine-hour delay in Chicago for what was apparently a &ldquo;minor&rdquo; electrical/lighting glitch. Any flight, or any ship, can leave or arrive late, but it&rsquo;s what the service provider does after the problem that&rsquo;s important. There are still wide differences between airlines and ocean carriers, but in the area of customer relations and problem resolution, the two businesses have more in common than I thought. After a very shortened evening with no dinner (actually very early morning/night) in Hong Kong and arriving the next day in Shenzhen less than refreshed, we got right into the TPM Asia agenda, packed with panels set to discuss as many of the issues facing our industry as we could fit into a two-day gig. What follows is a summary of my personal highlights: The new Maersk Line service paradigm, including its Daily Maersk service and its &ldquo;Triple E&rdquo; mega-ships &mdash; the genesis of the industry&rsquo;s newest term: &ldquo;ULCS,&rdquo; for ultra-large container ships &mdash; was discussed widely. One speaker, in a more or less left-handed compliment, called the Maersk strategy a brilliant new marketing campaign. Whatever you call it, the chase and competition among ocean carriers for ever bigger ships &mdash; my granddaughter would call them &ldquo;ginormous&rdquo; &mdash; caused some to suggest that perhaps size really does matter, which led to yet another new term: &ldquo;vessel porn.&rdquo; How much is too much? How big is too big? Are the carriers about to start a new race that takes them over the cliff like a galloping herd of crazed lemmings, as one speaker suggested, toward overcapacity that they themselves will create? The data and forecasts and mood weren&rsquo;t nearly as bad as the doomsday March 2009 TPM Conference in Los Angeles, but the prognostications were less than rosy just the same. Whether the forecasts were &ldquo;bluesy-sad&rdquo; or &ldquo;blood-red devastation&rdquo; is difficult to decide, but with about a four-week rather than a four-month 2011 peak season, no real hope for improvement the rest of this year and mostly gloom for 2012, there was no dancing in the streets in South China this month. The parallel session on container freight derivatives was interesting on several levels. To start, almost all the attendees were young &mdash; under 40, I&rsquo;d guess &mdash; and clearly much smarter than me. The presenters were like characters out of a Michael &ldquo;The Big Short&rdquo; Lewis book and extremely well-versed in the material and probably way above my pay grade. As I listened to a presentation that sounded like a 20-minute Vegas casino class on how to play craps, complete with assurances and explanations about why trading freight derivatives is not betting, I not only believed it, but also knew I was in well over my head. These young folks are wicked smart, and these instruments are coming &mdash; are, in fact, already here and available, and being used successfully to a large extent. It&rsquo;s another sign of the rapidly and dramatically changing landscape of our industry. The relationship between the ocean carriers and their customers was a frequent topic and remains highly fraught and troubled, and you can expect to hear more on this at next March&rsquo;s TPM Conference in Long Beach. There was more, much more, including more people, just over 600, which was about a 20 percent increase over TPM Asia 2010, so it was a successful event by any reckoning and a fitting end to the 2011 ocean shipping conference season. Now if only my flights home are on time &hellip; Barry Horowitz is the principal of CMS Consulting Services. Contact him at 503-208-2232, or at barryh@cms-cs.com .

Container lines

TPM Asia Takeaway

<div class="phx-topic abstract-wrapper">The repair and rebuilding of oil, gas and petrochemical facilities in the Middle East will provide project cargoes for the specialist fleet at least through the end of the decade, observers say. </div>

The repair and rebuilding of oil, gas and petrochemical facilities in the Middle East will provide project cargoes for the specialist fleet at least through the end of the decade, observers say.

Feature image

<div class="phx-topic">Rebuilding energy, petrochemical and other critical infrastructure in the Middle East that has been damaged during the war will drive a surge in cargo demand and freight rates in the multipurpose vessel (MPV) and deck carrier markets when the conflict ends, industry executives say. “Reconstruction needs across the region will be considerable,” said Marco Poisler, chief operating officer for global energy and capital projects at project cargo logistics company UTC Overseas. “The pent-up demand wave will hit a market that is not ready for it. And that, historically, is when freight rates for MPV project cargo move most sharply,” Poisler told the Journal of Commerce. The fragile ceasefire in the region after six weeks of air and sea attacks mean demand for MPV-related cargo into the region “is likely to increase substantially above pre-conflict baselines,” he said. That comes as Tehran pledged to reopen the Strait of Hormuz as part of the two-week truce agreed to with the US and Israel Tuesday. But Iran maintains effective operational control of the crucial waterway and has said it will charge vessel transit fees of up to $2 million for passage, with the proceeds used to finance post-war reconstruction in the country. <h3>Freight rates holding firm despite conflict </h3>The conflict has had little impact on MPV rates so far, with the April Toepfer Transport Multipurpose Vessel Index (TMI) remaining virtually unchanged at $12,683 per day, down just 0.53% from March. Six-month rates are projected to be 0.27% higher than current levels, and rising 1% in the 12-month forecast, according to executives polled by Toepfer. “The growing concerns about disruptions and high bunker prices due to the war in the Middle East are not currently reflected in the TMI,” Toepfer said in a commentary this week. “This may be due to the fact that the majority of cargoes not destined for the Middle East are still being shipped, as expected, and thus fleet utilization remains high.” The ceasefire was agreed to as damage to energy infrastructure across the region was already estimated to cost more than $25 billion to repair, according to an initial assessment by Rystad Energy in late March. “Spending is likely to be driven primarily by engineering and construction, followed by equipment and materials, the Norway-headquartered energy consultancy said in a commentary.   <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="c421e66c-3cd4-4d1c-8095-6a37bbeeb1cb"></dynamic-object></div>Iranian missile and drone attacks caused extensive damage to refineries and gas and petrochemical plants in neighboring countries including Qatar, Kuwait, Saudi Arabia, the United Arab Emirates, and Bahrain. Similarly, US and Israeli bombing missions targeted Iran’s energy and chemicals industry, especially the country’s South Pars gas field and Kharg Island oil export complex. Anurag Kumar, senior research analyst/MPV at Drewry Maritime Research, said the SAMRAF refinery and Al-Jubail petrochemical complex in Saudi Arabia, Abu Dhabi’s Al Hosn gas field, and Qatar’s Ras Laffan liquefied natural gas (LNG) plant were among the facilities targeted. “They will require repair, replacement, and in some cases (a) complete rebuild,” Kumar told the Journal of Commerce. “The structural steel, pressure vessels, heat exchangers, turbine components and heavy fabricated packages that constitute the core of this reconstruction cargo are precisely the cargo class served by the MPV sector,” Kumar added. Larger components and modules are likely to be transported on deck carriers, providing a lift for that sector. In Qatar, reconstruction of two LNG production trains at Ras Laffan destroyed by Iran will require deck carriers and MPVs to transport heavy and oversized cargoes including LNG modules, compressors, pipelines, and structural steel, according to Kumar and Poisler. The attacks took out 17% of Ras Laffan’s LNG production capacity. <h3>MPV demand through 2030 </h3>Rebuilding work is also likely to take place over the long term, potentially supporting the MPV and deck carrier markets until the end of the decade. Poisler said the Ras Laffan plant could take up to five years to become fully operational again. “This is because the large-frame gas turbines required to power LNG main refrigeration compressors are supplied by only three original equipment manufacturers globally, all of which entered 2026 with production backlogs of around two to four years,” he said. Qatar’s Pearl gas-to-liquids facility also sustained damage during aerial attacks on March 20 that is expected to take about a year to repair. Drewry’s Kumar said the outages at Ras Laffan alone are estimated to cost QatarEnergy some $20 billion per year in lost revenue. He said reconstruction work across the region will also drive the need for better port handling capabilities and integrated logistics to handle MPV and deck carrier cargoes. “As projects become more complex, EPC (engineering, procurement and construction) contractors, shipping lines and port operators will likely need to work together more closely,” he said. “In the medium to long term, ongoing expansion and upgrades to Qatar’s energy facilities should keep breakbulk volumes high.” Contact Keith Wallis on <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Rebuilding energy, petrochemical and other critical infrastructure in the Middle East that has been damaged during the war will drive a surge in cargo demand and freight rates in the multipurpose vessel (MPV) and deck carrier markets when the conflict ends, industry executives say. “Reconstruction needs across the region will be considerable,” said Marco Poisler, chief operating officer for global energy and capital projects at project cargo logistics company UTC Overseas. “The pent-up demand wave will hit a market that is not ready for it. And that, historically, is when freight rates for MPV project cargo move most sharply,” Poisler told the Journal of Commerce. The fragile ceasefire in the region after six weeks of air and sea attacks mean demand for MPV-related cargo into the region “is likely to increase substantially above pre-conflict baselines,” he said. That comes as Tehran pledged to reopen the Strait of Hormuz as part of the two-week truce agreed to with the US and Israel Tuesday. But Iran maintains effective operational control of the crucial waterway and has said it will charge vessel transit fees of up to $2 million for passage, with the proceeds used to finance post-war reconstruction in the country. Freight rates holding firm despite conflict The conflict has had little impact on MPV rates so far, with the April Toepfer Transport Multipurpose Vessel Index (TMI) remaining virtually unchanged at $12,683 per day, down just 0.53% from March. Six-month rates are projected to be 0.27% higher than current levels, and rising 1% in the 12-month forecast, according to executives polled by Toepfer. “The growing concerns about disruptions and high bunker prices due to the war in the Middle East are not currently reflected in the TMI,” Toepfer said in a commentary this week. “This may be due to the fact that the majority of cargoes not destined for the Middle East are still being shipped, as expected, and thus fleet utilization remains high.” The ceasefire was agreed to as damage to energy infrastructure across the region was already estimated to cost more than $25 billion to repair, according to an initial assessment by Rystad Energy in late March. “Spending is likely to be driven primarily by engineering and construction, followed by equipment and materials, the Norway-headquartered energy consultancy said in a commentary.   Iranian missile and drone attacks caused extensive damage to refineries and gas and petrochemical plants in neighboring countries including Qatar, Kuwait, Saudi Arabia, the United Arab Emirates, and Bahrain. Similarly, US and Israeli bombing missions targeted Iran’s energy and chemicals industry, especially the country’s South Pars gas field and Kharg Island oil export complex. Anurag Kumar, senior research analyst/MPV at Drewry Maritime Research, said the SAMRAF refinery and Al-Jubail petrochemical complex in Saudi Arabia, Abu Dhabi’s Al Hosn gas field, and Qatar’s Ras Laffan liquefied natural gas (LNG) plant were among the facilities targeted. “They will require repair, replacement, and in some cases (a) complete rebuild,” Kumar told the Journal of Commerce. “The structural steel, pressure vessels, heat exchangers, turbine components and heavy fabricated packages that constitute the core of this reconstruction cargo are precisely the cargo class served by the MPV sector,” Kumar added. Larger components and modules are likely to be transported on deck carriers, providing a lift for that sector. In Qatar, reconstruction of two LNG production trains at Ras Laffan destroyed by Iran will require deck carriers and MPVs to transport heavy and oversized cargoes including LNG modules, compressors, pipelines, and structural steel, according to Kumar and Poisler. The attacks took out 17% of Ras Laffan’s LNG production capacity. MPV demand through 2030 Rebuilding work is also likely to take place over the long term, potentially supporting the MPV and deck carrier markets until the end of the decade. Poisler said the Ras Laffan plant could take up to five years to become fully operational again. “This is because the large-frame gas turbines required to power LNG main refrigeration compressors are supplied by only three original equipment manufacturers globally, all of which entered 2026 with production backlogs of around two to four years,” he said. Qatar’s Pearl gas-to-liquids facility also sustained damage during aerial attacks on March 20 that is expected to take about a year to repair. Drewry’s Kumar said the outages at Ras Laffan alone are estimated to cost QatarEnergy some $20 billion per year in lost revenue. He said reconstruction work across the region will also drive the need for better port handling capabilities and integrated logistics to handle MPV and deck carrier cargoes. “As projects become more complex, EPC (engineering, procurement and construction) contractors, shipping lines and port operators will likely need to work together more closely,” he said. “In the medium to long term, ongoing expansion and upgrades to Qatar’s energy facilities should keep breakbulk volumes high.” Contact Keith Wallis on keithwallis@hotmail.com .

MPV, deck carrier operators eye cargo demand surge from Iran war reconstruction

<div class="phx-topic abstract-wrapper">While the ceasefire marks the first diplomatic shift in the 40-day conflict, it is being regarded by transport operators as more of a controlled easing rather than an operational reset. </div>

While the ceasefire marks the first diplomatic shift in the 40-day conflict, it is being regarded by transport operators as more of a controlled easing rather than an operational reset.

<div class="phx-topic">The two-week ceasefire agreed to between the US and Iran this week is too short and too fragile to encourage international air carriers to resume flights to the Middle East, air freight analysts say. While the ceasefire marks the first diplomatic shift in the 40-day conflict, it is being regarded by transport operators as more of a controlled easing rather than an operational reset. “There will be a bit of reluctance from non-Gulf based carriers to resume normal scheduled activity until there is a feeling that the ceasefire will be more permanent,” said Frederic Horst, managing director of Sydney-based consultancy Trade and Transport Group. “Combined passenger and freight on flights through Gulf-facing hubs have been edging up a little bit over the past couple of weeks, but we are still at less than 40% of previous levels,” Horst told the Journal of Commerce. Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said bringing air capacity back to the Middle East corridors will provide welcome relief for shippers, many of whom were facing severe disruption to ocean supply chains. But carriers require a far more permanent settlement to the conflict before flights resume, van de Wouw said in a statement from Xeneta Thursday. “A two-week timeline is too short to justify restructuring freight plans,” he said. “Carriers will be in no rush to lower rates given the ceasefire is only temporary and the geopolitical situation remains uncertain. Shippers will also not rush into major routing decisions on the basis of a fragile two-week ceasefire “Even when it is deemed safe to fly, setting up the infrastructure again takes time,” he added. “Customers need to find you again and trust you again. Insurance companies may still advise against transiting these Middle East hubs despite the ceasefire.” Should the ceasefire hold, a full return to pre-conflict capacity and rates on trades transiting Middle East hubs is still one to two months away, van de Wouw said. <h3>Passenger confidence key to restoring networks </h3>Pre-conflict networks routed through the Middle East accounted for around 30% of the Asia-Europe air freight capacity, much of that carried in the bellies of passenger aircraft. Flights to the regional hub of Dubai by Cathay Pacific, Lufthansa and British Airways remain suspended until May 31. Air France as of now has Dubai flights suspended only until April 19, with KLM due to return May 17. Both van de Wouw and Horst identified passenger confidence as a key variable in the recovery of air freight in Middle East corridors. “Gulf carriers such as Emirates and Qatar Airways operate some of the world’s most important air freight networks, but those networks depend on passenger revenue,” van de Wouw said. “If tourist confidence in Middle East destinations takes time to recover — even after the ceasefire — airlines may operate routes at below-sustainable passenger load factors and could cut network capacity as a result,” he noted. Horst said flight frequencies into the Middle East hubs might take a long time to return to pre-conflict levels with passenger confidence shaken by the war. ”In terms of overall flight levels, I don’t know whether they will come back in the next few years because people are probably going to re-evaluate their exposure to the Middle East and travel to alternative locations,” he said. <h3>Cargo backlogs, shuttered airports </h3>Crane Worldwide Logistics wrote in an update Wednesday that cargo backlogs at Dubai International Airport were structural and there was no defined timeline for clearing the logjam. “Full air freight normalization is expected no earlier than three to six weeks post‑ceasefire,” the forwarder noted. Crane added in the update that Bahrain International Airport remains closed, with home carrier Gulf Air operating out of Dammam in Saudi Arabia. Kuwait International Airport will remain closed indefinitely. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8fc0722e-09e9-4b12-a4ba-76e0a0deaa46"></dynamic-object></div>With air freight routes disrupted through the Middle East, forwarders have scrambled to find direct capacity from Asia to Europe, leaving space limited and pushing rates on the corridor higher. Percentage increases in spot rates provided by Xeneta show a steep increase in the five weeks since the conflict began on Feb. 28, particularly out of Southeast Asia and South Asia. Rates have risen 105% from South Asia to Europe, 84% from South Asia to the Middle East, and 82% from South Asia to North America, according to Xeneta. The rates were up 87% from Europe to the Middle East and 72% from Southeast Asia to Europe. In price per kilogram, air cargo spot rates are at their highest level of the year, according to the Freightos Air Index. Spot rates from China to Europe of $4.69/kg are up 33% compared to the first week of January, while China-Middle East rates are up 43% since the start of the year at $4.20/kg, Freightos data showed. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The two-week ceasefire agreed to between the US and Iran this week is too short and too fragile to encourage international air carriers to resume flights to the Middle East, air freight analysts say. While the ceasefire marks the first diplomatic shift in the 40-day conflict, it is being regarded by transport operators as more of a controlled easing rather than an operational reset. “There will be a bit of reluctance from non-Gulf based carriers to resume normal scheduled activity until there is a feeling that the ceasefire will be more permanent,” said Frederic Horst, managing director of Sydney-based consultancy Trade and Transport Group. “Combined passenger and freight on flights through Gulf-facing hubs have been edging up a little bit over the past couple of weeks, but we are still at less than 40% of previous levels,” Horst told the Journal of Commerce. Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said bringing air capacity back to the Middle East corridors will provide welcome relief for shippers, many of whom were facing severe disruption to ocean supply chains. But carriers require a far more permanent settlement to the conflict before flights resume, van de Wouw said in a statement from Xeneta Thursday. “A two-week timeline is too short to justify restructuring freight plans,” he said. “Carriers will be in no rush to lower rates given the ceasefire is only temporary and the geopolitical situation remains uncertain. Shippers will also not rush into major routing decisions on the basis of a fragile two-week ceasefire “Even when it is deemed safe to fly, setting up the infrastructure again takes time,” he added. “Customers need to find you again and trust you again. Insurance companies may still advise against transiting these Middle East hubs despite the ceasefire.” Should the ceasefire hold, a full return to pre-conflict capacity and rates on trades transiting Middle East hubs is still one to two months away, van de Wouw said. Passenger confidence key to restoring networks Pre-conflict networks routed through the Middle East accounted for around 30% of the Asia-Europe air freight capacity, much of that carried in the bellies of passenger aircraft. Flights to the regional hub of Dubai by Cathay Pacific, Lufthansa and British Airways remain suspended until May 31. Air France as of now has Dubai flights suspended only until April 19, with KLM due to return May 17. Both van de Wouw and Horst identified passenger confidence as a key variable in the recovery of air freight in Middle East corridors. “Gulf carriers such as Emirates and Qatar Airways operate some of the world’s most important air freight networks, but those networks depend on passenger revenue,” van de Wouw said. “If tourist confidence in Middle East destinations takes time to recover — even after the ceasefire — airlines may operate routes at below-sustainable passenger load factors and could cut network capacity as a result,” he noted. Horst said flight frequencies into the Middle East hubs might take a long time to return to pre-conflict levels with passenger confidence shaken by the war. ”In terms of overall flight levels, I don’t know whether they will come back in the next few years because people are probably going to re-evaluate their exposure to the Middle East and travel to alternative locations,” he said. Cargo backlogs, shuttered airports Crane Worldwide Logistics wrote in an update Wednesday that cargo backlogs at Dubai International Airport were structural and there was no defined timeline for clearing the logjam. “Full air freight normalization is expected no earlier than three to six weeks post‑ceasefire,” the forwarder noted. Crane added in the update that Bahrain International Airport remains closed, with home carrier Gulf Air operating out of Dammam in Saudi Arabia. Kuwait International Airport will remain closed indefinitely. With air freight routes disrupted through the Middle East, forwarders have scrambled to find direct capacity from Asia to Europe, leaving space limited and pushing rates on the corridor higher. Percentage increases in spot rates provided by Xeneta show a steep increase in the five weeks since the conflict began on Feb. 28, particularly out of Southeast Asia and South Asia. Rates have risen 105% from South Asia to Europe, 84% from South Asia to the Middle East, and 82% from South Asia to North America, according to Xeneta. The rates were up 87% from Europe to the Middle East and 72% from Southeast Asia to Europe. In price per kilogram, air cargo spot rates are at their highest level of the year, according to the Freightos Air Index. Spot rates from China to Europe of $4.69/kg are up 33% compared to the first week of January, while China-Middle East rates are up 43% since the start of the year at $4.20/kg, Freightos data showed. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Carriers News

Air Cargo

US-Iran ceasefire unlikely to spur air freight return to Middle East: analysts

<div class="phx-topic abstract-wrapper">The deal, financial details of which were not disclosed, could possibly be the first M&amp;A domino to fall among a growing number of agent vendors catering to the logistics industry.</div>

The deal, financial details of which were not disclosed, could possibly be the first M&A domino to fall among a growing number of agent vendors catering to the logistics industry.

<div class="phx-topic">Logistics technology provider project44 has acquired an automation company focused on building digital agents that cover dozens of pre-built use cases across international and domestic freight, the company announced Thursday. The all-cash acquisition, terms of which were not disclosed, will enable project44 to embed agents from Chicago-based LunaPath into its visibility and transportation management products. Founded in 2024, LunaPath develops logistics orchestration- and execution-focused agents that tackle discrete tasks like sourcing missing ocean freight milestones and retrieving container location at the port of discharge. The company’s agents, also known as digital workers, undertake tasks in domestic freight as well, such as finding missing equipment identifiers and resolving invalid truck telematics connections. LunaPath’s sale is the first of the dozen or so artificial intelligence-focused agent developers serving the logistics and transportation industry to have emerged in the last three years. project44 CEO Jett McCandless told the Journal of Commerce the company had been trialing a number of these providers side-by-side over the past 16 months to see which ones performed best using project44’s data. “The reality is there isn’t one that’s the best at everything,” he said. “Some are better at voice, some are better at documents. Some better on Tuesday. Some are better for one carrier than another.” But LunaPath stood out, McCandless said, especially in high-volume voice and messaging execution use cases, prompting the decision to buy the emergent company rather than just use them among a number of other automation vendors. “They outperformed in a lot of use cases,” he said. “They got answers faster and more consistently.” <h3>‘Customers want outcomes’ </h3>The speed component is key in an environment where the cost of computing capacity to power digital workers is a factor that software companies must control. “Faster means it’s taking less capital; less time and less tokens,” McCandless said. “Our customers want outcomes.” Tokens are a unit the makers of AI models use to charge for use of their product. The more tokens used, the more a software company building agents pays, and in general, the faster a task is accomplished, the fewer tokens are used. The cost to build agents is starting to become a key issue as they become more prevalent in logistics, with some arguing that building agents are a cost of doing business for software providers, who should be expected to be enhancing their products continuously. On the other hand, some argue the cost of using AI models will only rise, and software vendors shouldn’t bear those costs alone. “The cost is not a billion dollars, but it’s not free either,” McCandless said. “Every time an agent does something it has a cost.” His contention is that application programming interfaces (APIs) are sometimes a more efficient way to transfer information, with project44 an early advocate for broader use of APIs over more traditional information exchange mechanisms like electronic data interchange (EDI). ”Where an API can do the job reliably, we use it,” McCandless said. “Agents earn their place when the task requires judgment, context or real-time adaptation. We’re not religious about it. We’re focused on outcomes.” <h3>Will also use other AI agent vendors </h3>McCandless said the acquisition of LunaPath won’t preclude project44 from using other AI agent vendors, such as Vooma and HappyRobot, with which it has had longstanding partnerships. project44, which serves more than 1,000 shippers and two-thirds of the world’s biggest logistics providers, has dived headlong into AI and agent-based workflows over the past 18 months to power its data platform and a new transportation management system it unveiled in 2025. A high-profile software vendor snapping up an early-stage AI vendor could, in theory, trigger other such acquisitions, but not all of those vendors are in the same position as LunaPath. Many have raised tens of millions of dollars from venture capital investors and need a return that justifies such investment. But it’s generally recognized that not every AI logistics vendor will survive in a market that appears commoditized, especially for agents that do relatively straightforward tasks that could be built internally by prospective buyers. Indeed, McCandless said project44 has built its own agents, ones that will be combined with those of LunaPath and augmented by those provided by other partner vendors. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com.</a></div>

Logistics technology provider project44 has acquired an automation company focused on building digital agents that cover dozens of pre-built use cases across international and domestic freight, the company announced Thursday. The all-cash acquisition, terms of which were not disclosed, will enable project44 to embed agents from Chicago-based LunaPath into its visibility and transportation management products. Founded in 2024, LunaPath develops logistics orchestration- and execution-focused agents that tackle discrete tasks like sourcing missing ocean freight milestones and retrieving container location at the port of discharge. The company’s agents, also known as digital workers, undertake tasks in domestic freight as well, such as finding missing equipment identifiers and resolving invalid truck telematics connections. LunaPath’s sale is the first of the dozen or so artificial intelligence-focused agent developers serving the logistics and transportation industry to have emerged in the last three years. project44 CEO Jett McCandless told the Journal of Commerce the company had been trialing a number of these providers side-by-side over the past 16 months to see which ones performed best using project44’s data. “The reality is there isn’t one that’s the best at everything,” he said. “Some are better at voice, some are better at documents. Some better on Tuesday. Some are better for one carrier than another.” But LunaPath stood out, McCandless said, especially in high-volume voice and messaging execution use cases, prompting the decision to buy the emergent company rather than just use them among a number of other automation vendors. “They outperformed in a lot of use cases,” he said. “They got answers faster and more consistently.” ‘Customers want outcomes’ The speed component is key in an environment where the cost of computing capacity to power digital workers is a factor that software companies must control. “Faster means it’s taking less capital; less time and less tokens,” McCandless said. “Our customers want outcomes.” Tokens are a unit the makers of AI models use to charge for use of their product. The more tokens used, the more a software company building agents pays, and in general, the faster a task is accomplished, the fewer tokens are used. The cost to build agents is starting to become a key issue as they become more prevalent in logistics, with some arguing that building agents are a cost of doing business for software providers, who should be expected to be enhancing their products continuously. On the other hand, some argue the cost of using AI models will only rise, and software vendors shouldn’t bear those costs alone. “The cost is not a billion dollars, but it’s not free either,” McCandless said. “Every time an agent does something it has a cost.” His contention is that application programming interfaces (APIs) are sometimes a more efficient way to transfer information, with project44 an early advocate for broader use of APIs over more traditional information exchange mechanisms like electronic data interchange (EDI). ”Where an API can do the job reliably, we use it,” McCandless said. “Agents earn their place when the task requires judgment, context or real-time adaptation. We’re not religious about it. We’re focused on outcomes.” Will also use other AI agent vendors McCandless said the acquisition of LunaPath won’t preclude project44 from using other AI agent vendors, such as Vooma and HappyRobot, with which it has had longstanding partnerships. project44, which serves more than 1,000 shippers and two-thirds of the world’s biggest logistics providers, has dived headlong into AI and agent-based workflows over the past 18 months to power its data platform and a new transportation management system it unveiled in 2025. A high-profile software vendor snapping up an early-stage AI vendor could, in theory, trigger other such acquisitions, but not all of those vendors are in the same position as LunaPath. Many have raised tens of millions of dollars from venture capital investors and need a return that justifies such investment. But it’s generally recognized that not every AI logistics vendor will survive in a market that appears commoditized, especially for agents that do relatively straightforward tasks that could be built internally by prospective buyers. Indeed, McCandless said project44 has built its own agents, ones that will be combined with those of LunaPath and augmented by those provided by other partner vendors. Contact Eric Johnson at eric.johnson@spglobal.com.

Logistics Technology News

project44 acquires agent developer to expand AI use cases

<div class="phx-topic abstract-wrapper">The Jacksonville Port Authority said Wednesday the Ocean Alliance will include the port on its Chesapeake Bay Express (CBX) service rotation as of this June. </div>

The Jacksonville Port Authority said Wednesday the Ocean Alliance will include the port on its Chesapeake Bay Express (CBX) service rotation as of this June.

<div class="phx-topic">CMA CGM will add the Port of Jacksonville to its trans-Pacific express service, adding to the port’s roster of direct Asia services and tapping the recent modernization of Jaxport’s main marine terminal. The Jacksonville Port Authority said in a statement Wednesday the Ocean Alliance will include the port on its Chesapeake Bay Express (CBX) service rotation as of this June. The CBX, operated exclusively by CMA CGM, calls Vietnam, China and South Korea before its eastbound rotation that includes US calls at Norfolk, Charleston and Savannah before Jacksonville. The CBX had previously called Miami, which is no longer on its rotation, according to its schedule. Ocean Alliance had previously been planning to <a href="https://www.joc.com/article/ocean-alliance-adding-vietnam-calls-to-north-america-for-2026-6155909">add Jacksonville to one of its Gulf Coast services</a> but instead settled on including it on the CBX. Jaxport will see the first CBX call with the June 27 expected arrival of the 7,327-TEU CMA CGM Passion. Jaxport Chief Executive Eric Green said in the statement the introduction of the CBX “expands routing flexibility between the Southeast United States and key Asian markets.” Jaxport added that its position on the CBX rotation will mean “opportunities for equipment repositioning and expedited transit for US export cargoes.” <h3>Two other direct Far East services </h3>The addition of the CBX marks the third Far East Asia service now calling Jacksonville directly. Premier Alliance’s EC3 service, which made Jacksonville the first US Southeast port of call for that service last July, now dominates the port’s Asian trade volumes. During the past 12 months, Premier Alliance partner Ocean Network Express (ONE) has made 61 port calls to Jacksonville with ships of 14,000-TEU average capacity, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. ONE’s standalone West India North America service also calls the port. Jacksonville also has a jointly-operated trans-Pacific service from Mediterranean Shipping Co. and Zim Integrated Shipping Services. The two accounted for 21 of the post-Panamax ship calls to Jacksonville over the past 12 months. The CBX will be able to tap an expansion and modernization of Jacksonville’s Blount Island container terminal, which was completed last fall. The three-year project included adding six outbound truck lanes, additional staging areas, and newly paved asphalt to allow for higher container stacks. Blount, <a href="https://www.joc.com/article/jaxport-receives-30-million-in-state-funds-for-new-cranes-at-blount-island-5201528">which has six post-Panamax cranes</a>, will have capacity to handle 500,000 TEUs per year. The port is currently undertaking a project to raise power lines that span the St. John’s River and <a href="https://www.joc.com/article/jaxport-secures-funding-to-raise-power-lines-for-blount-island-big-ship-calls-5220798">increase the air clearance for larger vessels</a> to call its Dames Point Container Terminal. Jacksonville’s containerized imports from Asia and the Indian subcontinent slipped to 137,941 TEUs in 2025, according to PIERS, a sister company of the Journal of Commerce, a 1.1% drop from a year earlier. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

CMA CGM will add the Port of Jacksonville to its trans-Pacific express service, adding to the port’s roster of direct Asia services and tapping the recent modernization of Jaxport’s main marine terminal. The Jacksonville Port Authority said in a statement Wednesday the Ocean Alliance will include the port on its Chesapeake Bay Express (CBX) service rotation as of this June. The CBX, operated exclusively by CMA CGM, calls Vietnam, China and South Korea before its eastbound rotation that includes US calls at Norfolk, Charleston and Savannah before Jacksonville. The CBX had previously called Miami, which is no longer on its rotation, according to its schedule. Ocean Alliance had previously been planning to add Jacksonville to one of its Gulf Coast services but instead settled on including it on the CBX. Jaxport will see the first CBX call with the June 27 expected arrival of the 7,327-TEU CMA CGM Passion. Jaxport Chief Executive Eric Green said in the statement the introduction of the CBX “expands routing flexibility between the Southeast United States and key Asian markets.” Jaxport added that its position on the CBX rotation will mean “opportunities for equipment repositioning and expedited transit for US export cargoes.” Two other direct Far East services The addition of the CBX marks the third Far East Asia service now calling Jacksonville directly. Premier Alliance’s EC3 service, which made Jacksonville the first US Southeast port of call for that service last July, now dominates the port’s Asian trade volumes. During the past 12 months, Premier Alliance partner Ocean Network Express (ONE) has made 61 port calls to Jacksonville with ships of 14,000-TEU average capacity, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. ONE’s standalone West India North America service also calls the port. Jacksonville also has a jointly-operated trans-Pacific service from Mediterranean Shipping Co. and Zim Integrated Shipping Services. The two accounted for 21 of the post-Panamax ship calls to Jacksonville over the past 12 months. The CBX will be able to tap an expansion and modernization of Jacksonville’s Blount Island container terminal, which was completed last fall. The three-year project included adding six outbound truck lanes, additional staging areas, and newly paved asphalt to allow for higher container stacks. Blount, which has six post-Panamax cranes , will have capacity to handle 500,000 TEUs per year. The port is currently undertaking a project to raise power lines that span the St. John’s River and increase the air clearance for larger vessels to call its Dames Point Container Terminal. Jacksonville’s containerized imports from Asia and the Indian subcontinent slipped to 137,941 TEUs in 2025, according to PIERS, a sister company of the Journal of Commerce, a 1.1% drop from a year earlier. Contact Michael Angell at michael.angell@spglobal.com .

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CMA CGM taps Jaxport as newest call for Asia express service

<div class="phx-topic abstract-wrapper">The largest US LTL carrier looks to add new business in the healthcare, food and energy sectors and among small businesses to grow volume and improve profitability. </div>

The largest US LTL carrier looks to add new business in the healthcare, food and energy sectors and among small businesses to grow volume and improve profitability.

<div class="phx-topic">FedEx Freight is planning for growth despite a weak industrial freight economy by reaching into new markets as it prepares for a June 1 spin off from parent company FedEx. The largest US less-than-truckload (LTL) provider and US trucking company sees big opportunities in small businesses, as well as the healthcare, data center, energy, and food and grocery sectors. Those markets represent a $9 billion revenue opportunity largely untapped by FedEx Freight, which had $8.9 billion in revenue in fiscal 2025. “We’re doing little business in those verticals,” John Smith, FedEx Freight’s incoming president and CEO, told analysts Wednesday at the company’s first standalone investor day in New York. The company expects “modest” top-line growth in a transition period from June 1 through Dec. 31, CFO Marshall Witt said at the event, which was webcast. He stressed the company will put profit before short-term volume growth. In its current fiscal year, which ends on the eve of the spin-off on May 31, FedEx Freight expects $8.7 billion in revenue and $1.1 billion in adjusted operating profit. In its last quarter ending February, revenue dropped 4.6% year over year, but operating profit increased 8.5%. Going forward, the company expects a 4% to 6% compound annual growth rate in revenue as it disentangles its operations from FedEx’s parcel business. “We’re focused on improving our financial position within the first 12 months of the spin-off,” Witt said, noting the industry is facing a “tough freight market with macro-economic volatility.” FedEx Freight, which has reduced its physical network by a net of 30 terminals and 400 service center doors over the past three years, doesn’t plan to cut capacity. “We have 30% excess capacity in our network today, and we feel we’re in a good position in the right markets,” said COO Clint McCoy. LTL carriers typically try to keep 20% to 30% excess capacity in their terminal networks to avoid chokepoints and allow for expansion in times of growth. FedEx Freight currently has 355 LTL service centers and 10 linehaul relay centers or hubs. <h3>Shipment shortfall </h3>Most of the company’s shipments come from industrial, transportation, logistics, and consumer goods customers, according to data shared during the event. Those shipments are declining amid industrial weakness. Total shipments per day at FedEx Freight fell 5.7% year over year in the fiscal quarter ending Feb. 28, dropping to 80,233 daily shipments. The year-to-date average daily shipment count, at 85,938 shipments, is down 13.8% from 2023, FedEx data shows. That underscores a long industry-wide decline in LTL shipment volumes attributed to weakness in US manufacturing and lower demand for physical goods. Recent improvements in US manufacturing activity, evident in Purchasing Managers’ Indexes (PMIs) from S&amp;P Global and the Institute for Supply Management, haven’t added much to LTL volumes yet, although XPO and Saia both saw volumes rise in February. “We’re seeing some upside” in manufacturing, compared with other sectors, Witt said. But he expects improved profitability and yield to drive revenue growth more than volume. Weak volumes are driving the focus on growing business with new shippers in markets underserved by LTL carriers. “We are targeting higher growth in end-markets that align with our offerings,” said Mike Lyons, the company’s chief specialized services and commercial officer. The hiring of a dedicated sales force of 500 regional sales representatives “gives us the engine to go out and address markets where we have little penetration today,” Lyons said. <h3>Disciplined pricing </h3>FedEx isn’t the only LTL carrier eyeing new customers and new markets. XPO, the third-largest LTL provider, also has strengthened its sales force and targeted small businesses, while launching new premium services that support higher profit margins. “The expansion we’re driving with local customers and premium services is contributing to our above-market pricing growth,” XPO CEO Mario Harik said during a March earnings call. Increases in yield helped offset lower volumes in the fourth quarter at XPO. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ccca9ba6-556b-417d-9e3d-83b396f754e8"></dynamic-object></div>The focus on yield, a measure of profitability based partly on pricing, means a rate war for market share is not on the table, even as LTL carriers sweat the decline in shipments. FedEx Freight plans to increase its market share, currently at about 15%, according to SJ Consulting Group data, but only when it can do so profitably. “This will be done through maintaining a disciplined approach to pricing, optimizing productivity, and reducing the overall cost to serve and support growth,” Witt said. LTL carriers are still seeing mid-single-digit price increases, according to the producer price index, but those increases are lower than last year. In February, the LTL producer price index rose 5.3% year over year, compared with a 9.5% average increase for the last six months of 2025. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

FedEx Freight is planning for growth despite a weak industrial freight economy by reaching into new markets as it prepares for a June 1 spin off from parent company FedEx. The largest US less-than-truckload (LTL) provider and US trucking company sees big opportunities in small businesses, as well as the healthcare, data center, energy, and food and grocery sectors. Those markets represent a $9 billion revenue opportunity largely untapped by FedEx Freight, which had $8.9 billion in revenue in fiscal 2025. “We’re doing little business in those verticals,” John Smith, FedEx Freight’s incoming president and CEO, told analysts Wednesday at the company’s first standalone investor day in New York. The company expects “modest” top-line growth in a transition period from June 1 through Dec. 31, CFO Marshall Witt said at the event, which was webcast. He stressed the company will put profit before short-term volume growth. In its current fiscal year, which ends on the eve of the spin-off on May 31, FedEx Freight expects $8.7 billion in revenue and $1.1 billion in adjusted operating profit. In its last quarter ending February, revenue dropped 4.6% year over year, but operating profit increased 8.5%. Going forward, the company expects a 4% to 6% compound annual growth rate in revenue as it disentangles its operations from FedEx’s parcel business. “We’re focused on improving our financial position within the first 12 months of the spin-off,” Witt said, noting the industry is facing a “tough freight market with macro-economic volatility.” FedEx Freight, which has reduced its physical network by a net of 30 terminals and 400 service center doors over the past three years, doesn’t plan to cut capacity. “We have 30% excess capacity in our network today, and we feel we’re in a good position in the right markets,” said COO Clint McCoy. LTL carriers typically try to keep 20% to 30% excess capacity in their terminal networks to avoid chokepoints and allow for expansion in times of growth. FedEx Freight currently has 355 LTL service centers and 10 linehaul relay centers or hubs. Shipment shortfall Most of the company’s shipments come from industrial, transportation, logistics, and consumer goods customers, according to data shared during the event. Those shipments are declining amid industrial weakness. Total shipments per day at FedEx Freight fell 5.7% year over year in the fiscal quarter ending Feb. 28, dropping to 80,233 daily shipments. The year-to-date average daily shipment count, at 85,938 shipments, is down 13.8% from 2023, FedEx data shows. That underscores a long industry-wide decline in LTL shipment volumes attributed to weakness in US manufacturing and lower demand for physical goods. Recent improvements in US manufacturing activity, evident in Purchasing Managers’ Indexes (PMIs) from S&P Global and the Institute for Supply Management, haven’t added much to LTL volumes yet, although XPO and Saia both saw volumes rise in February. “We’re seeing some upside” in manufacturing, compared with other sectors, Witt said. But he expects improved profitability and yield to drive revenue growth more than volume. Weak volumes are driving the focus on growing business with new shippers in markets underserved by LTL carriers. “We are targeting higher growth in end-markets that align with our offerings,” said Mike Lyons, the company’s chief specialized services and commercial officer. The hiring of a dedicated sales force of 500 regional sales representatives “gives us the engine to go out and address markets where we have little penetration today,” Lyons said. Disciplined pricing FedEx isn’t the only LTL carrier eyeing new customers and new markets. XPO, the third-largest LTL provider, also has strengthened its sales force and targeted small businesses, while launching new premium services that support higher profit margins. “The expansion we’re driving with local customers and premium services is contributing to our above-market pricing growth,” XPO CEO Mario Harik said during a March earnings call. Increases in yield helped offset lower volumes in the fourth quarter at XPO. The focus on yield, a measure of profitability based partly on pricing, means a rate war for market share is not on the table, even as LTL carriers sweat the decline in shipments. FedEx Freight plans to increase its market share, currently at about 15%, according to SJ Consulting Group data, but only when it can do so profitably. “This will be done through maintaining a disciplined approach to pricing, optimizing productivity, and reducing the overall cost to serve and support growth,” Witt said. LTL carriers are still seeing mid-single-digit price increases, according to the producer price index, but those increases are lower than last year. In February, the LTL producer price index rose 5.3% year over year, compared with a 9.5% average increase for the last six months of 2025. Contact William B. Cassidy at bill.cassidy@spglobal.com .

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FedEx Freight plans diversification as spin-off date approaches

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