<div class="phx-topic abstract-wrapper">Uncertainties over implementation of the contract are bound to occur in the weeks ahead at all West Coast ports until the International Longshore and Warehouse Union and Pacific Maritime Association provide clarity on important provisions in the contract covering work rules and related issues such as mandatory dockworker inspections of chassis at marine terminals.</div>

Uncertainties over implementation of the contract are bound to occur in the weeks ahead at all West Coast ports until the International Longshore and Warehouse Union and Pacific Maritime Association provide clarity on important provisions in the contract covering work rules and related issues such as mandatory dockworker inspections of chassis at marine terminals.

<div>Cargo interests are hoping that maverick work stoppages at the Port of Oakland, such as the one that shut the port down on the Sunday night shift, will cease now that the new five-year International Longshore and Warehouse Union contract is in effect.But uncertainties over implementation of the contract are bound to occur in the weeks ahead at all West Coast ports until the ILWU and Pacific Maritime Association provide clarity on important provisions in the contract covering work rules and related issues such as mandatory dockworker inspections of <a>chassis</a> at marine terminals.The ILWU and PMA reached tentative agreement on...

Cargo interests are hoping that maverick work stoppages at the Port of Oakland, such as the one that shut the port down on the Sunday night shift, will cease now that the new five-year International Longshore and Warehouse Union contract is in effect. But uncertainties over implementation of the contract are bound to occur in the weeks ahead at all West Coast ports until the ILWU and Pacific Maritime Association provide clarity on important provisions in the contract covering work rules and related issues such as mandatory dockworker inspections of chassis at marine terminals. The ILWU and PMA reached tentative agreement on Feb. 20 on the new contract after nine months of sometimes contentious negotiations and four months of work slowdowns at West Coast ports. The ILWU membership officially ratified the new contract on May 22. As normally happens after a contract is ratified, implementation of new contract provisions is accompanied by uncertainties as employers and ILWU locals take actions each believes are appropriate in the new environment. Disagreements sometimes occur, and area arbitrators are called in to adjudicate the specific issues. That is what happened Sunday night in Oakland. Sunday’s incident centered upon a disagreement between terminal operators and ILWU Local 34 over a new provision covering the dispatch of marine clerks for the night shift on Sundays. In the past, terminal operators had to inform ILWU Local 34 by Saturday morning as to its need for marine clerks for the Sunday night shift. Employers said they often had difficulty ascertaining their needs until the day of the dispatch, so the new contract stipulates that the terminals must file their dispatch needs on Sunday mornings for the Sunday night shifts. The PMA, in a release, said ILWU Local 34 on Sunday “failed to adhere to the new dispatch procedures.” The PMA submitted the matter to the area arbitrator who ruled that the ILWU took unilateral action in violation of the contract and that the union refused to work with employers to resolve the dispute peacefully. ILWU spokesman Craig Merrilees gave a different account of what happened. Local 34 officials charged that the PMA itself did not follow all of the provisions in the new contract concerning the dispatching of marine clerks, but rather “cherry picked” the provisions it wanted to enforce. Nevertheless, the ILWU worked with the PMA to ensure that dispatching for Monday’s day shift worked smoothly, Merrilees said. The port reported that cargo handling returned to normal on Monday morning. Although Sunday’s disagreement was a one-and-done incident, the PMA said this was the third work stoppage in Oakland in recent weeks. The ILWU locals in Northern California have a reputation for militancy. “By sanctioning illegal work stoppages, the local ILWU leaders are not just violating the new contract, but are disrespecting the truckers, local residents and small businesses whose livelihoods depend on the efficient and reliable movement of cargo through the port,” the PMA stated. Cargo interests and truckers are also concerned about issues and disagreements that could cause problems at all ports up and down the coast. For example, another provision in the new contract requires inspection by ILWU mechanics of chassis before they are pulled from the marine terminals. Trucker-owned chassis are exempt. Problems occurred last week in Northern and Southern California when ILWU locals began to implement the inspection requirement by pulling over certain truckers and requesting proof of ownership of the equipment. Truckers charged that the ILWU demands are illegal because their employers, the shipping lines and terminal operators, no longer own the equipment. The verifications delay truck drivers and reduce their earning power because most drivers are paid by the load and earn nothing when sitting in lines. Trucking company executives in Northern and Southern California reported Monday that the ILWU has since backed off on its verification demands. This period of uncertainty in interpreting the new contract and adding clarity to disputed provisions could drag on for awhile. ILWU international officers are leaving this week for the union’s once-every-three-years convention, which will be held the week of June 8 in Hawaii. Those conventions normally result in the passage of resolutions on a number of issues and the nomination of officers for the next three years. During the coming weeks, individual incidents will be addressed by local arbitrators in the various ports, but coastwide guidance on important issues could take longer to develop.. The new contract calls for a totally new arbitration system in which each port range will have a panel of three arbitrators -- one nominated by the ILWU, one nominated by the PMA and a third, professional arbitrator with no previous affiliation with either the union or the PMA. However, the new arbitration system has yet to be implemented. Contact Bill Mongelluzzo at bill.mongelluzzo@ihs.com and follow him on Twitter: @billmongelluzzo

North American ports

Oakland work stoppage foreshadows more ILWU contract uncertainties

<div class="phx-topic abstract-wrapper">The unknowns surrounding US tariffs and proposed fees on Chinese tonnage is forcing ship owners to take a wait-and-see approach to ordering new vessels.</div>

The unknowns surrounding US tariffs and proposed fees on Chinese tonnage is forcing ship owners to take a wait-and-see approach to ordering new vessels.

Feature image

<div class="phx-topic">New Orleans — Early engagement with shippers, flexibility with charter contracts and day-to-day agility will be key to the fleet strategies of breakbulk and project cargo carriers as they grapple with capacity limitations and the threat of tariffs, a panel of multipurpose vessel/heavy-lift (MPV/HL) operators told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “The best advice to our clients would be that tomorrow is not today,” Anders Hyrup, president of JSI Alliance, said Thursday. JSI operates super-heavy carriers Jumbo, SAL and Intermarine. MPV/HL operators are struggling to replace capacity despite a surge of new ship orders in the last quarter of 2024. And now the sector is staring down hefty fees <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">the US Trade Representative (USTR) plans to impose on Chinese-built vessels that call the US</a>. Only eight MPV/HL ships are not Chinese-owned. The unknowns surrounding fees are forcing owners to take a wait-and-see approach to ordering new vessels. Pieter Flohil, managing director with Dutch MPV/HL operator Spliethoff, said the company has been looking to expand its fleet, but has put those plans on pause amid concerns over US tariff policy and proposed ship fees. “We’re in a very capital-intensive business, and we as a group are very conservative in terms of our risk,” Flohil said. “And at the moment, we really want to see which way the world is going.” Tim Kopfensteiner, president of German MPV/HL operator BBC Chartering USA, said the fee exemptions — which include the company’s vessels — have given him cautious optimism. “To do a complete 180 on our strategy for something that could be there for 30 days, four years, eight years — it’s a very, very difficult decision to make,” he said. <h3>Contract changes </h3>In terms of chartering, some vessel owners are taking steps to get ahead of US ship fees by including clauses in contracts that address the charges. Operators on Thursday’s panel said there has been some pushback, but otherwise most shippers have been receptive to the clauses in anticipation of fees. ”I think there was some understanding from the shippers’ side because there’s not much you can do about it,” said Melanie Drehkopf, chief commercial officer for Hamburg-based MPV/HL operator dship Carriers. Hyrup said even though the contract clauses were triggered by USTR, they could become standard practice given ongoing trade uncertainties. “I think this is a clause we have to get used to in this industry, that this will be permanent,” he said. “Because we have these changes over and over and over.” With competition from other carrier sectors likely to heat up — and an influx of containers likely to spill over into the MPV/HL sector over the summer — Hyrup said early engagement with shippers will be important. “It would be nice if everybody just decided to swim in their own lane,” he said. “But that’s not happening.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

New Orleans — Early engagement with shippers, flexibility with charter contracts and day-to-day agility will be key to the fleet strategies of breakbulk and project cargo carriers as they grapple with capacity limitations and the threat of tariffs, a panel of multipurpose vessel/heavy-lift (MPV/HL) operators told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “The best advice to our clients would be that tomorrow is not today,” Anders Hyrup, president of JSI Alliance, said Thursday. JSI operates super-heavy carriers Jumbo, SAL and Intermarine. MPV/HL operators are struggling to replace capacity despite a surge of new ship orders in the last quarter of 2024. And now the sector is staring down hefty fees the US Trade Representative (USTR) plans to impose on Chinese-built vessels that call the US . Only eight MPV/HL ships are not Chinese-owned. The unknowns surrounding fees are forcing owners to take a wait-and-see approach to ordering new vessels. Pieter Flohil, managing director with Dutch MPV/HL operator Spliethoff, said the company has been looking to expand its fleet, but has put those plans on pause amid concerns over US tariff policy and proposed ship fees. “We’re in a very capital-intensive business, and we as a group are very conservative in terms of our risk,” Flohil said. “And at the moment, we really want to see which way the world is going.” Tim Kopfensteiner, president of German MPV/HL operator BBC Chartering USA, said the fee exemptions — which include the company’s vessels — have given him cautious optimism. “To do a complete 180 on our strategy for something that could be there for 30 days, four years, eight years — it’s a very, very difficult decision to make,” he said. Contract changes In terms of chartering, some vessel owners are taking steps to get ahead of US ship fees by including clauses in contracts that address the charges. Operators on Thursday’s panel said there has been some pushback, but otherwise most shippers have been receptive to the clauses in anticipation of fees. ”I think there was some understanding from the shippers’ side because there’s not much you can do about it,” said Melanie Drehkopf, chief commercial officer for Hamburg-based MPV/HL operator dship Carriers. Hyrup said even though the contract clauses were triggered by USTR, they could become standard practice given ongoing trade uncertainties. “I think this is a clause we have to get used to in this industry, that this will be permanent,” he said. “Because we have these changes over and over and over.” With competition from other carrier sectors likely to heat up — and an influx of containers likely to spill over into the MPV/HL sector over the summer — Hyrup said early engagement with shippers will be important. “It would be nice if everybody just decided to swim in their own lane,” he said. “But that’s not happening.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Maritime

Breakbulk carriers

Heavy-haul transport

Project cargo

Breakbulk News

Breakbulk25: Capacity-limited MPV operators reconsider fleet expansion

<div class="phx-topic abstract-wrapper">Speakers at the conference in New Orleans agreed that recent volatility has yet to significantly slow projects or investments in the project cargo sector.</div>

Speakers at the conference in New Orleans agreed that recent volatility has yet to significantly slow projects or investments in the project cargo sector.

<div class="phx-topic">New Orleans — Adapting to the unexpected while resisting knee-jerk reactions will be key to navigating a series of market uncertainties that include constant changes to US tariff policy, geopolitical tensions and labor strikes, a panel of project cargo logistics managers told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “Don’t get comfortable. It’s always changing,” John MacDonough, construction logistics manager for the Woodfibre LNG project in British Columbia, told the conference Thursday. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5990612_0.1.jpg"></img></div>Logistics managers on the panel agreed that volatility hasn’t significantly slowed projects or investments. ”There’s only a slight halt in that that we’re being asked to look at the risks a little more closely, because it’s changing almost daily,” said Geanean Ordonez, project logistics manager/procurement for EPC Technip Energies. John Hark, a director at Bertling Logistics and adjunct professor at Texas A&amp;M at Galveston, said the long-term return on investment on large projects will help ensure that investments will continue amid uncertainty. But managing costs and supply chain risks will remain important for logistics managers. ”We can’t just say, ‘well, let’s not worry about this $10 million because the project is worth this much money over the next 20 years,’” he said. Itoro Ibanga, project logistics specialist and category manager for industrial supplier Air Liquide, said logistics managers should trust their own expertise and maintain compliance as they respond to tariffs and other unknowns. “Plan for the worst. Anything could happen,” he said. “Be ready and try to see how much you can mitigate that risk.” Ordonez said logistics managers will need to expect surprises as they work with their customers. “Just keep swimming,” she said. “It’s what we do.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

New Orleans — Adapting to the unexpected while resisting knee-jerk reactions will be key to navigating a series of market uncertainties that include constant changes to US tariff policy, geopolitical tensions and labor strikes, a panel of project cargo logistics managers told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “Don’t get comfortable. It’s always changing,” John MacDonough, construction logistics manager for the Woodfibre LNG project in British Columbia, told the conference Thursday. Logistics managers on the panel agreed that volatility hasn’t significantly slowed projects or investments. ”There’s only a slight halt in that that we’re being asked to look at the risks a little more closely, because it’s changing almost daily,” said Geanean Ordonez, project logistics manager/procurement for EPC Technip Energies. John Hark, a director at Bertling Logistics and adjunct professor at Texas A&M at Galveston, said the long-term return on investment on large projects will help ensure that investments will continue amid uncertainty. But managing costs and supply chain risks will remain important for logistics managers. ”We can’t just say, ‘well, let’s not worry about this $10 million because the project is worth this much money over the next 20 years,’” he said. Itoro Ibanga, project logistics specialist and category manager for industrial supplier Air Liquide, said logistics managers should trust their own expertise and maintain compliance as they respond to tariffs and other unknowns. “Plan for the worst. Anything could happen,” he said. “Be ready and try to see how much you can mitigate that risk.” Ordonez said logistics managers will need to expect surprises as they work with their customers. “Just keep swimming,” she said. “It’s what we do.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Supply chain

Breakbulk25: Logistics managers push adaptability amid market turmoil

<div class="phx-topic abstract-wrapper">The closure of freighter slots at the airport beginning in August is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding.</div>

The closure of freighter slots at the airport beginning in August is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding.

<div class="phx-topic">Freighter slots at the Mumbai International Airport (MIAL) will be suspended beginning mid-August for extensive infrastructure upgrades, posing a threat to India's booming air freight supply chains amid the recent cargo expansion fueled by trade diversification in Asia. The impending closure is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding (AAHL), a subsidiary of the private behemoth Adani Group. “MIAL needs to carry out multiple air-side works, including building new taxiways, to enhance its capacity and bring efficiency in operations,” the authority told cargo stakeholders. A significant portion of Indian air cargo volumes moves via Mumbai, making it one of the busiest hubs for freighter networks. Turkish Airlines, Emirates, Challenge Group and Qatar Airways lead the pack there, with about 60 to 75 freighter services a month. The infrastructure work at MIAL seemingly ties in with AAHL's long-term strategy to consolidate all Mumbai air freight operations at a new airport in Navi Mumbai on the outskirts of Mumbai City, which is expected to go live in June. AAHL already has eight Indian airports under its management, accounting for 25% of the country's passenger footfalls and 35% of air cargo volumes. Industry sources believe airlines and trade stakeholders could encounter serious challenges, including infrastructure and regulatory issues, relocating to the new airport due to the complex nature of the air cargo sector, especially for perishables verticals. “MIAL stands as a vital nerve center for India’s international trade, particularly in the pharmaceutical and perishable goods sectors,” Satish Lakkaraju, board member at the Air Cargo Forum India (ACFI), told the Journal of Commerce. “Any operational bottlenecks could lead to cargo backlogs, longer lead times and a spike in logistics costs.” Global air cargo carriers have markedly cemented connections out of Mumbai to support India's strong e-commerce demand, another segment that could take a toll if supply chains are disrupted. India's e-commerce market swelled 24% year over year in 2024 to $148 billion by value, according to industry data. “In the short term, businesses in Mumbai can anticipate multiple hurdles due to the disruption," said a freight forwarder who didn't want to be identified. "Looking ahead, they might have to adapt by diversifying supply chains and/or exploring alternative routes.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Freighter slots at the Mumbai International Airport (MIAL) will be suspended beginning mid-August for extensive infrastructure upgrades, posing a threat to India's booming air freight supply chains amid the recent cargo expansion fueled by trade diversification in Asia. The impending closure is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding (AAHL), a subsidiary of the private behemoth Adani Group. “MIAL needs to carry out multiple air-side works, including building new taxiways, to enhance its capacity and bring efficiency in operations,” the authority told cargo stakeholders. A significant portion of Indian air cargo volumes moves via Mumbai, making it one of the busiest hubs for freighter networks. Turkish Airlines, Emirates, Challenge Group and Qatar Airways lead the pack there, with about 60 to 75 freighter services a month. The infrastructure work at MIAL seemingly ties in with AAHL's long-term strategy to consolidate all Mumbai air freight operations at a new airport in Navi Mumbai on the outskirts of Mumbai City, which is expected to go live in June. AAHL already has eight Indian airports under its management, accounting for 25% of the country's passenger footfalls and 35% of air cargo volumes. Industry sources believe airlines and trade stakeholders could encounter serious challenges, including infrastructure and regulatory issues, relocating to the new airport due to the complex nature of the air cargo sector, especially for perishables verticals. “MIAL stands as a vital nerve center for India’s international trade, particularly in the pharmaceutical and perishable goods sectors,” Satish Lakkaraju, board member at the Air Cargo Forum India (ACFI), told the Journal of Commerce. “Any operational bottlenecks could lead to cargo backlogs, longer lead times and a spike in logistics costs.” Global air cargo carriers have markedly cemented connections out of Mumbai to support India's strong e-commerce demand, another segment that could take a toll if supply chains are disrupted. India's e-commerce market swelled 24% year over year in 2024 to $148 billion by value, according to industry data. “In the short term, businesses in Mumbai can anticipate multiple hurdles due to the disruption," said a freight forwarder who didn't want to be identified. "Looking ahead, they might have to adapt by diversifying supply chains and/or exploring alternative routes.” Contact Bency Mathew at bencyvmathew@gmail.com .

Air Cargo Forwarder News

Air Cargo Carriers News

Air Cargo

Indian air cargo braces for disruptions amid looming upgrade project at Mumbai

<div class="phx-topic abstract-wrapper">The latest deals will increase the total number of methanol-enabled ships Wan Hai has on order to 32, worth a total of almost $5 billion.</div>

The latest deals will increase the total number of methanol-enabled ships Wan Hai has on order to 32, worth a total of almost $5 billion.

<div class="phx-topic">Wan Hai Lines has ordered four additional 16,000-TEU methanol-ready, dual-fuel container ships from two South Korean shipyards at a cost of up to $816 million, the Taiwan-headquartered carrier said. The latest deals will increase the total number of methanol-enabled ships Wan Hai has on order to 32, worth a total of almost $5 billion. Wan Hai, ranked 11th in the world by Alphaliner in terms of capacity, said two of the vessels will be built by HD Hyundai Samho, while the other pair will be constructed by Samsung Heavy Industries. Each of the four ships will cost between $187 million and $204 million, the carrier said Thursday. All of Wan Hai’s ships on order are scheduled for delivery in 2026 and 2027 and will increase the carrier’s owned fleet to almost 150 ships totaling around 950,000 TEUs in capacity. The orders also mark further expansion of Wan Hai’s long-haul network to North and South America, India and the Middle East, while increasing the number of owned vessels and reducing the need for chartered tonnage. The latest contracts were confirmed by Wan Hai after it announced that its operating revenue surged 34% year on year in the first quarter to $1.1 billion amid high rates and solid freight volumes. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Wan Hai Lines has ordered four additional 16,000-TEU methanol-ready, dual-fuel container ships from two South Korean shipyards at a cost of up to $816 million, the Taiwan-headquartered carrier said. The latest deals will increase the total number of methanol-enabled ships Wan Hai has on order to 32, worth a total of almost $5 billion. Wan Hai, ranked 11th in the world by Alphaliner in terms of capacity, said two of the vessels will be built by HD Hyundai Samho, while the other pair will be constructed by Samsung Heavy Industries. Each of the four ships will cost between $187 million and $204 million, the carrier said Thursday. All of Wan Hai’s ships on order are scheduled for delivery in 2026 and 2027 and will increase the carrier’s owned fleet to almost 150 ships totaling around 950,000 TEUs in capacity. The orders also mark further expansion of Wan Hai’s long-haul network to North and South America, India and the Middle East, while increasing the number of owned vessels and reducing the need for chartered tonnage. The latest contracts were confirmed by Wan Hai after it announced that its operating revenue surged 34% year on year in the first quarter to $1.1 billion amid high rates and solid freight volumes. Contact Keith Wallis at keithwallis@hotmail.com .

Trans-Pacific

Container lines

Wan Hai orders four 16,000-TEU ships amid expansion of long-haul network

<div class="phx-topic abstract-wrapper">F. Paul De Maria will become the new CEO of the group representing ocean carriers and marine terminal operators at East and Gulf coast ports. </div>

F. Paul De Maria will become the new CEO of the group representing ocean carriers and marine terminal operators at East and Gulf coast ports.

<div class="phx-topic">The United States Maritime Alliance (USMX) has picked F. Paul De Maria as its new chief executive officer after he successfully led negotiations for a new contract between maritime employers and the International Longshoremen’s Association (ILA), which itself praised De Maria as a “tough negotiator.” De Maria joined the USMX in 2012 as its vice president of labor relations after he oversaw stevedoring operations for Ports America along the East and Gulf coasts. He was promoted to executive vice president and chief operating officer at the USMX in 2021. De Maria will replace Dave Adam as CEO of the USMX, which represents ocean carriers and marine terminal operators at East and Gulf coast ports. “It’s an honor to lead this organization as we work together with the ILA to ensure we have the strong and efficient supply chains necessary to ensure American companies can access the global marketplace,” De Maria said Thursday in a statement from the USMX. The USMX in 2022 <a href="https://www.joc.com/article/ila-open-to-starting-contract-talks-soon-with-usmx-5218348">started preliminary negotiations</a> with the ILA over a new six-year master contract with the hope of concluding a deal well before the previous contract’s 2024 expiration. But the talks dragged out over issues involving <a href="https://www.joc.com/article/ila-unmoved-by-latest-industry-leading-wage-offer-from-usmx-5703227">pay</a> and <a href="https://www.joc.com/article/ila-usmx-reach-tentative-deal-that-avoids-another-port-strike-5919519">marine terminal automation</a>, eventually leading to <a href="https://www.joc.com/article/ila-usmx-agree-on-new-wage-offer-and-contract-extension-that-reopens-ports-5741882">a brief strike last October</a>. An active presence at <a href="https://www.joc.com/article/ila-usmx-reach-tentative-deal-that-avoids-another-port-strike-5919519">the final contract talks in January 2025</a>, De Maria was credited with “helping secure a landmark new agreement that protects current ILA jobs and establishes a framework for implementing technologies that will create additional jobs while modernizing East and Gulf Coast ports,” the USMX said in the statement announcing the leadership change. The ILA’s leadership also praised De Maria for his role in negotiating a new contract, which <a href="https://www.joc.com/article/ila-ratifies-new-six-year-deal-with-higher-entry-pay-automation-protection-5951338">the union’s rank and file approved in February</a>. “If it weren’t for Paul’s leadership, we would have been on the picket line again,” ILA President Harold Daggett said in a Facebook message last February. “We all knew that Paul was a tough negotiator, but he showed a lot of skill in how he worked with our bargaining committee.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The United States Maritime Alliance (USMX) has picked F. Paul De Maria as its new chief executive officer after he successfully led negotiations for a new contract between maritime employers and the International Longshoremen’s Association (ILA), which itself praised De Maria as a “tough negotiator.” De Maria joined the USMX in 2012 as its vice president of labor relations after he oversaw stevedoring operations for Ports America along the East and Gulf coasts. He was promoted to executive vice president and chief operating officer at the USMX in 2021. De Maria will replace Dave Adam as CEO of the USMX, which represents ocean carriers and marine terminal operators at East and Gulf coast ports. “It’s an honor to lead this organization as we work together with the ILA to ensure we have the strong and efficient supply chains necessary to ensure American companies can access the global marketplace,” De Maria said Thursday in a statement from the USMX. The USMX in 2022 started preliminary negotiations with the ILA over a new six-year master contract with the hope of concluding a deal well before the previous contract’s 2024 expiration. But the talks dragged out over issues involving pay and marine terminal automation , eventually leading to a brief strike last October . An active presence at the final contract talks in January 2025 , De Maria was credited with “helping secure a landmark new agreement that protects current ILA jobs and establishes a framework for implementing technologies that will create additional jobs while modernizing East and Gulf Coast ports,” the USMX said in the statement announcing the leadership change. The ILA’s leadership also praised De Maria for his role in negotiating a new contract, which the union’s rank and file approved in February . “If it weren’t for Paul’s leadership, we would have been on the picket line again,” ILA President Harold Daggett said in a Facebook message last February. “We all knew that Paul was a tough negotiator, but he showed a lot of skill in how he worked with our bargaining committee.” Contact Michael Angell at michael.angell@spglobal.com .

Marine terminals

Longshore labor

De Maria elevated to lead USMX after his work on new ILA contract

Use code GTW695 at checkout and save $800 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Use code MDRW695 at checkout and save $800 on first year of a Gold subscription!

Upgrade Subscription - Wide Box

PRE-MEMORIAL DAY SALE

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

Group Subscriptions - Wide Box

Get into a group subscription today

Use code MDW25 at checkout and save 25% on any annual subscription!

Subscribe Now - Anonymous - Wide Box

Use code MDW25 at checkout to save 25% on the first year of any annual subscription! 

Subscribe Now - Free Trials - Wide Box

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

SMC3rates_shutterstock_5247046.jpg

Shippers save money, time with automated transportation bidding tools

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

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

UPGRADE TO GOLD AND SAVE: Use code GTW695 at checkout and save $800 on first year of a Gold subscription!

Upgrade Subscription

PRE-MEMORIAL DAY SALE: Use code MDW25 at checkout to save 25% on first year of any annual subscription!


Subscribe Now - Free Trials - Offer Box

Subscribe Today

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

Group Subscriptions - Offer Box

Group Subscriptions

PRE-MEMORIAL DAY SALE: Use code MDW25 at checkout and save 25% on any annual subscription!

Subscribe Now - Anonymous - Offer Box

PRE-MEMORIAL DAY SALE: Use code MDRW695 at checkout and save $800 on first year of a Gold subscription! 

Upgrade Subscription - Offer Box

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland25

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

ISI Report - Rectangle Box

Intermodal Savings Index

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

Gateway - Rectangle Box

Gateway

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

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

Drayage

Port infrastructure

Breakbulk ports

International ports

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

Port News | Journal of Commerce

Port News

Breakbulk News shipping | Journal of Commerce

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

Container Shipping News | Journal of Commerce

Container Shipping News

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

Latest News

More News & Analysis

Breakbulk25: Capacity-limited MPV operators reconsider fleet expansion

Breakbulk25: Logistics managers push adaptability amid market turmoil

Indian air cargo braces for disruptions amid looming upgrade project at Mumbai