<div class="phx-topic abstract-wrapper">Trade leads are supplied by: US Department of Agriculture, Foreign Agricultural Service Agri</div>

Trade leads are supplied by: US Department of Agriculture, Foreign Agricultural Service Agri

<div>Trade leads are supplied by:US Department of Agriculture, Foreign Agricultural Service Agricultural Information and Marketing Services (AIMS) Room 4649-South Bldg., Washington, D.C. 20250-1000 AIMS Coordinator: Philip Letarte (202) 447-7103.HOW TO USE:Trade leads on this page are sent to the USDA from U.S. agricultural attaches, counselors and agricultural trade officers posted overseas. Questions regarding a specific lead should be directed to the foreign buyer. The U.S. Department of Agriculture does not guarantee the reliability of the overseas inquirer who is requesting U.S. food and agricultural products. While the USDA makes every effort to reproduce the request as accurately as possible, the...

Trade leads are supplied by: US Department of Agriculture, Foreign Agricultural Service Agricultural Information and Marketing Services (AIMS) Room 4649-South Bldg., Washington, D.C. 20250-1000 AIMS Coordinator: Philip Letarte (202) 447-7103.HOW TO USE: Trade leads on this page are sent to the USDA from U.S. agricultural attaches, counselors and agricultural trade officers posted overseas. Questions regarding a specific lead should be directed to the foreign buyer. The U.S. Department of Agriculture does not guarantee the reliability of the overseas inquirer who is requesting U.S. food and agricultural products. While the USDA makes every effort to reproduce the request as accurately as possible, the USDA does not assume responsibility for any erroneous information that may have been supplied. OTHER INFORMATION: For additional assistance and information on export services provided by USDA you may contact the AIMS office at the above address. Whole chickens: fresh/chilled/frozen Quantity: 10-20 mt. Quality: SASO standards, frozen. Packaging: cartons. Delivery: after two months. Other req: labels in Arabic, name/expiry date and ingredients printed. Quote: cif. Bank: Saudi British Bank, P.O. Box 109, Jeddah. Contact: Sheikh Ahmed Naghi, Ahmed & Yousuf Moh'd A. Naghi, P.O. Box 273, Jeddah 21411, Saudi Arabia. Tel: 02-6872394. Telex: 601107 NAGHI SJ. USDA Ref: 2768-881101-517T0098 Saudi Arabia Frozen whole chickens, chicken parts Quantity: one 20-ft container of each product. Quality: Grade A. Packaging: parts: in 2-lb. trays. Whole birds: 10 in a carton. Delivery: asap. Each tray or whole bird must bear dates of production and expiry. Products must also be accompanied by Halal kill certificate. Quote: c&f Dubai. Bank: Standard Chartered Bank, Dubai. Contact: Mr. Harish Bhojwani, Lal's Trading Co., P.O. Box 11096, Dubai, United Arab Emirates. Telex: 47665 LAL EM. Cable: LALLS-DUBAI. Tel: 232020. USDA Ref: 2761-881101-525T0344 Bahrain Butter Quantity: 10-20 mt. Quality: SASO standards. Packaging: cartons. Delivery: after two months. Other req: labels in Arabic, name/expiry date; ingredients printed. Quote: cif. Bank: Saudi British Bank, P.O. Box 109, Jeddah. Contact: Sheikh Ahmed Naghi, Ahmed & Yousuf Moh'd A. Naghi, P.O. Box 273, Jeddah 21411, Saudi Arabia. Tel: 02-6872394. Telex: 601107 NAGHI SJ. USDA Ref: 2764-881101-517T0094 Saudi Arabia Cream milk powder Vit. A 1400 IU, Vit. B1 .3 mg, Vit. B2 1.5 mg, ascorbic acid .7 mg, Vit. D 20 IU. P2O5 1.4 percent, K20 1.3 percent, CaO 1.2 percent, Na20 .9 percent, C1 .7 percent, MgO .15 percent. Quantity: usual commercial standard. Quality: annual requirement 120 mt. Packaging: multiply paper bags with poly liner of 25 kg net. Delivery: asap. Other req: radiation free certificate, legalized by Saudi embassy or any Arab consulate. Quote: cif or c&f. Bank: Saudi British Bank/ National Commercial Bank/Saudi Cairo Bank, Jeddah. Contact: Mr. Abdulrasheed, Badrah Saudi Factories Co., P.O. Box 1678, Jeddah 21441, Saudi Arabia. Telex: 601024 BADRAH SJ. Tel: 02-6430255. USDA Ref: 2774-881101-517T0104 Saudi Arabia Ice cream Quality: premium. Bank: Southern Bank Berhad, 21 Lebuh Pantai, 10300 Pulau Pinang. Contact: Kah Teng Lim, Sitt Tatt Berhad, 1st Flr, Wisma Saw Chong Thuah, 39C Pengkalan Weld, 10300 Pulau Pinang, Malaysia. Tel: (04) 619-444. Telex: MA 40117 SITATT. USDA Ref: 2775-881101-557A0033 Malaysia Frozen fish and shellfish Quantity: assorted reefer containers. High quality frozen fish and shellfish of all kinds. Individually packed in nylon then in export cartons. Delivery: asap. Importer requires private English/Arabic label including production/ expiry dates. Quote: c&f Kuwait. Bank: Al-Ahli Bank (Main Branch), Kuwait. Contact: Mr. Abdullah al Khulafi, Al-Mutamid Foodstuff Est., P.O. Box 16438, Al Qadsiy 35855, Kuwait. Telex: 30995 SAS HOTL KT attn: Al-Mutamid. Tel: 2407676. Fax: 2404404. USDA Ref: 2753-881101-525T0339 Bahrain Fruits and vegetables Canned pears, peaches, fruit cocktail, pineapple, peas, carrots, beets, tomatoes, corn, asparagus. Quantity: containerloads. Packaging: canned. Other req: metric/bilingual packaging. Quote: fob and c&f. Bank: Canadian Imperial Bank of Commerce, 400 Burrard St., Vancouver. Contact: Kenneth L. Penneway, Calkins & Burke Ltd., 500-1477 West Pender St., Vancouver, British Columbia V6G 2S6, Canada. Tel: (604) 669-3741. Telex: 04-508829. Fax: (604) 669-9732. USDA Ref: 2789-881101-122B0121 Canada Canned fruits and vegetables Assorted containerloads. Full line of high quality canned fruits and vegetables of all kinds. Packaging: retail-size cans. Delivery: asap. Importer requires private English/Arabic label including production/expiry dates. Quote: c&f Kuwait. Bank: Al-Ahli Bank (Main Branch), Kuwait. Contact: Mr. Abdullah Al Khulafi, Al-Mutamid Foodstuff Est., P.O. Box 16438, Al Qadsiy 35855, Kuwait. Telex: 30995 SAS HOTL KT attn: Al-Mutamid. Tel: 2407676. Fax: 2404404. USDA Ref: 2751-881101-525T0338 Bahrain Fruit and vegetable juices, squashes, syrups Quantity: assorted containerloads. Quality: full line of high quality products. Packaging: retail-size cans, bottles, tetrapacks, etc. Delivery: asap. Importer requires private English/Arabic label including production/ expiry dates. Quote: c&f Kuwait. Bank: Al-Ahli Bank (Main Branch), Kuwait. Contact: Mr. Abdullah al-Khulafi, Al-Mutamid Foodstuff Est, P.O. Box 16438, Al Qadsiy, 35855 Kuwait. Telex: 30995 SAS HOTL KT attn Al-Mutamid Tel: 2407676. Fax: 2404404. USDA Ref: 2755-881101-525T0341 Bahrain Tomato sauces Quantity: 10-20 mt. Quality: SASO standards. Packaging: cartons. Delivery: after two months. Other req: labels in Arabic, name/expiry date, ingredients printed. Quote: cif. Bank: Saudi British Bank, P.O. Box 109, Jeddah. Contact: Sheikh Ahmed Naghi, Ahmed & Yousuf Moh'd A. Naghi, P.O. Box 273, Jeddah 21411, Saudi Arabia. Tel: 02-6872394. Telex: 601107 NAGHI SJ. USDA Ref: 2769-881101-517T0099 Saudi Arabia Dried fruits and vegetables Quantity: containerloads. Packaging: bulk/packaged (metric/bilingual labeling). Quote: fob and c&f. Bank: Canadian Imperial Bank of Commerce, 400 Burrard St., Vancouver. Contact: Kenneth L. Penneway, Calkins & Burke Ltd., 500-1477 West Pender St., Vancouver, British Columbia V6G 2S6, Canada. Tel: (604) 669-3741. Telex: 04-508829. Fax: (604) 669-9732. USDA Ref: 2791-881101-122B0123 Canada Golden raisins Quantity: two 20-foot containers. Quality: No. 1 jumbo and regular size. Packaging: 10-kilo cartons. Delivery: asap. Each carton must bear dates of production and expiry. Quote: c&f Dubai. Bank: Bank of Credit and Commerce, Dubai. Contact: Mr. Arvind R. Shah, Amani Mohamed Establishment, P.O. Box 16518, Dubai, United Arab Emirates. Telex: 48815 NISHA EM. Tel: 233973. USDA Ref: 2784-881101-525T0345 Bahrain Pickles Importer/wholesaler/distributor of foodstuffs established in 1983 seeks U.S. suppliers. Quality: full line of high quality spiced pickles. Packaging: retail jars. Delivery: asap. Importer requires private English/Arabic label including production/expiry dates. Quote: c&f Kuwait. Bank: Al-Ahli Bank (Main Branch), Kuwait. Contact: Mr. Abdullah al Khulafi, Al-Mutamid Foodstuff Est, P.O. Box 16438, Al Qadsiy 35855 Kuwait. Telex: 30995 SAS HOTL KT. Tel: 2407676. Fax: 2404404. USDA Ref: 2754-881101-525T0340 Bahrain Frozen fruits and vegetables Quantity: containerloads. Packaging: metric/bilingual labeling. Quote: fob and c&f. Bank: Canadian Imperial Bank of Commerce, 400 Burrard St., Vancouver. Contact: Kenneth L. Penneway, Calkins & Burke Ltd., 500-1477 West Pender St., Vancouver, British Columbia V6G 2S6, Canada. Tel: (604) 669-3741. Telex: 04-508829. Fax: (604) 669-9732. USDA Ref: 2790-881101-122B0122 Canada Yellow cornmeal Moisture 14 percent, ash 0.46 percent, raw proteins 9 percent, fibers 0.60 percent, nitrogen, extractive 84.64 percent = 100 percent starch 84 percent. Quantity: annual requirement 60 mt. Quality: usual commercial standard. Packaging: paper bags of 50 kgs. Delivery: asap. Other req: radiation-free certificate, legalized by Royal Saudi Embassy or any Arab consulate. Quote: cif or c&f. Bank: Saudi British Bank/National Commercial Bank/Saudi Cairo Bank, Jeddah. Contact: Mr. Abdulrasheed, Badrah Saudi Factories Co., P.O. Box 1678, Jeddah 21441, Saudi Arabia. Telex: 601024 BADRAH SJ. Tel: 02-6430255. USDA Ref: 2772-881101-517T0102 Saudi Arabia Raw sugar Quantity: max. 20,000 mt. Quality: standard. Packaging: standard. Urgently required. Advise terms and conditions for payment, shipping schedule. Quote: cif China - Canton province (Guangdong). Bank: Chung Khiaw Bank Ltd., Upper Serangoon Branch, 10 Anson Road No. 01-01 International Plaza, Singapore 0207. Contact: Mr. Khor Jeng Chai, Chai Huat Hai Lake Import/Exp., Blk 678 Hougang Ave 8 No. 01-503, Singapore 1953. CABLE: EXPOCHAI. Tel: 282-4279. USDA Ref: 2783-881101-559T0246 Singapore Sugar and byproducts Wants liquid glucose, 45 deg. C, dextrose equivalent 42-44, beaume 45 deg C, glucose solids 86 percent, water 14 percent, polarization angle 86-88 degrph 5.3,. Quantity: annual requirement 600 mt. Quality: usual commercial standard. Packaging: 300 kgs new steel drums. Delivery: asap. Other req: sulfur dioxide 200-400 oon, copper & iron 1.0 ppm, SH .28 percent, protein .04 percent. Radiation-free certificate, legalized by Saudi Embassy or any Arab consulate. Quote: cif & c&f. Bank: Saudi British Bank/National Commercial Bank/Saudi Cairo Bank, Jeddah. Contact: Mr. Abdulrasheed, Badrah Saudi factories Co., P.O. Box 1678, Jeddah 21441, Saudi Arabia. Telex: 601024 BADRAH SJ. Tel: 02-6430255. USDA Ref: 2773-881101-517T0103 Saudi Arabia

Maritime

AGRICULTURAL TRADE LEADS

<div class="phx-topic abstract-wrapper">DSV CEO Jens Lund said the size of the Schenker acquisition meant it could take up to two years before the companies were fully integrated into the world’s largest forwarder.</div>

DSV CEO Jens Lund said the size of the Schenker acquisition meant it could take up to two years before the companies were fully integrated into the world’s largest forwarder.

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<div class="phx-topic">Regulatory approval from the US and European Commission stands in the way of DSV’s $16 billion acquisition of DB Schenker, but DSV CFO Michael Ebbe is confident the takeover will be finalized by the end of the second quarter. So far, approvals from 33 regulatory bodies have been received, with the US and EC two of the three jurisdictions that are still outstanding. All 36 must give the green light before the lengthy integration process of DSV’s largest acquisition to date can begin. “I don't think that they get rewarded to do things fast, but we are in a very good dialogue with (the US and European Commission) and have frequent virtual and physical meetings to answer any questions,” Ebbe told analysts during an earnings call Tuesday following the release of the forwarder’s 2024 annual results "They have many questions, but we answer them.” Solid growth in volumes and air and ocean revenue through the fourth quarter allowed Denmark-based DSV to end the year with group revenue rising almost 12% year over year to $23 billion. However, the ongoing normalizing of markets and cost pressures saw gross profit decline 1.2% to $5.9 billion and earnings before interest and taxes (EBIT) drop 8.4% to $2.2 billion. Net profit for the year was down 18% compared to the previous year at $1.4 billion. DSV said it captured market share in both the air and ocean trades – the growth is estimated at 3% to 4% for 2024 – as its air freight tonnage increased 7% to 1.4 million tons and ocean freight also grew 7% to 2.68 million TEUs. The forwarder expects its 2025 volume growth to be around 3%, in line with the global GDP forecast, despite the current macroeconomic and geopolitical uncertainties. Although DSV has targeted above-market growth in profit and volume, the global uncertainty was reflected in its financial expectations for 2025 with $300 million separating the upper and lower ends of its EBIT forecast of between $2.1 billion and $2.4 billion. <h3>Two-year integration process </h3>DB Schenker is the largest acquisition made by DSV, which also acquired UTi in 2015 for $1.35 billion, Panalpina in 2019 for $4.6 billion and Agility’s Global Integrated Logistics (GIL) in 2021 for $4.2 billion. DSV CEO Jens Lund said the size of the Schenker acquisition meant it could take up to two years before the two companies were fully integrated into the world’s largest forwarder. “Given the fact that Schenker is somewhat larger than the last acquisition of GIL, it will probably take more than 12 months this time because there's more countries and more customers and more activity, but I don't think it will take more than two years,” Lund said on the earnings call. The global forwarding market is so fragmented that the combined DSV-DB Schenker operation will still only have a market share of 6% to 7%. The top 20 forwarders have an estimated global market share of 30% to 40% combined, with the rest of the market consisting of multiple regional and local players. While DSV prepares for the DB Schenker integration, a more immediate concern for Lund is the restructuring ocean networks that are disrupting major trade lanes, as well as threatened US tariffs and ongoing Red Sea diversions that are creating an increasingly uncertain outlook. The Gemini Cooperation, Premier Alliance and Mediterranean Shipping Co. (MSC) with its standalone operation all launched their new networks on Feb. 1 and are jostling for business, Lund told analysts. “It's a very competitive situation at this moment where everybody wants to make sure that in the new situation, they get the volume allocations they need,” he said. “They are <a href="https://www.joc.com/article/spot-rates-falling-as-new-ocean-networks-roll-out-sea-intelligence-5935891">competing to fill up their vessels</a>...that's been driving the [lower] rate levels.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="bf9f45a4-a69a-4ab8-9556-588dad0c74a8"></dynamic-object></div>Average spot rates from North Asia to the US West Coast were at $3,700 per FEU on Monday, down from $5,250/FEU at the beginning of January, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Current Asia-US East Coast rates of $5,500/FEU were $2,200 lower than the beginning of the year. It was a similar picture on Asia-North Europe, where the rate of $3,000/FEU this week was down from $5,000 in the first week of January, while the current Asia-Mediterranean rate of $4,300/FEU has slipped $1,000. ”It’s hard to predict where [the rate slide] ends,” Lund said. “Customers are contracting a little bit shorter because they don’t want to get caught out on a long-term arrangement.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Regulatory approval from the US and European Commission stands in the way of DSV’s $16 billion acquisition of DB Schenker, but DSV CFO Michael Ebbe is confident the takeover will be finalized by the end of the second quarter. So far, approvals from 33 regulatory bodies have been received, with the US and EC two of the three jurisdictions that are still outstanding. All 36 must give the green light before the lengthy integration process of DSV’s largest acquisition to date can begin. “I don't think that they get rewarded to do things fast, but we are in a very good dialogue with (the US and European Commission) and have frequent virtual and physical meetings to answer any questions,” Ebbe told analysts during an earnings call Tuesday following the release of the forwarder’s 2024 annual results "They have many questions, but we answer them.” Solid growth in volumes and air and ocean revenue through the fourth quarter allowed Denmark-based DSV to end the year with group revenue rising almost 12% year over year to $23 billion. However, the ongoing normalizing of markets and cost pressures saw gross profit decline 1.2% to $5.9 billion and earnings before interest and taxes (EBIT) drop 8.4% to $2.2 billion. Net profit for the year was down 18% compared to the previous year at $1.4 billion. DSV said it captured market share in both the air and ocean trades – the growth is estimated at 3% to 4% for 2024 – as its air freight tonnage increased 7% to 1.4 million tons and ocean freight also grew 7% to 2.68 million TEUs. The forwarder expects its 2025 volume growth to be around 3%, in line with the global GDP forecast, despite the current macroeconomic and geopolitical uncertainties. Although DSV has targeted above-market growth in profit and volume, the global uncertainty was reflected in its financial expectations for 2025 with $300 million separating the upper and lower ends of its EBIT forecast of between $2.1 billion and $2.4 billion. Two-year integration process DB Schenker is the largest acquisition made by DSV, which also acquired UTi in 2015 for $1.35 billion, Panalpina in 2019 for $4.6 billion and Agility’s Global Integrated Logistics (GIL) in 2021 for $4.2 billion. DSV CEO Jens Lund said the size of the Schenker acquisition meant it could take up to two years before the two companies were fully integrated into the world’s largest forwarder. “Given the fact that Schenker is somewhat larger than the last acquisition of GIL, it will probably take more than 12 months this time because there's more countries and more customers and more activity, but I don't think it will take more than two years,” Lund said on the earnings call. The global forwarding market is so fragmented that the combined DSV-DB Schenker operation will still only have a market share of 6% to 7%. The top 20 forwarders have an estimated global market share of 30% to 40% combined, with the rest of the market consisting of multiple regional and local players. While DSV prepares for the DB Schenker integration, a more immediate concern for Lund is the restructuring ocean networks that are disrupting major trade lanes, as well as threatened US tariffs and ongoing Red Sea diversions that are creating an increasingly uncertain outlook. The Gemini Cooperation, Premier Alliance and Mediterranean Shipping Co. (MSC) with its standalone operation all launched their new networks on Feb. 1 and are jostling for business, Lund told analysts. “It's a very competitive situation at this moment where everybody wants to make sure that in the new situation, they get the volume allocations they need,” he said. “They are competing to fill up their vessels ...that's been driving the [lower] rate levels.” Average spot rates from North Asia to the US West Coast were at $3,700 per FEU on Monday, down from $5,250/FEU at the beginning of January, according to Platts, a sister company of the Journal of Commerce within S&P Global. Current Asia-US East Coast rates of $5,500/FEU were $2,200 lower than the beginning of the year. It was a similar picture on Asia-North Europe, where the rate of $3,000/FEU this week was down from $5,000 in the first week of January, while the current Asia-Mediterranean rate of $4,300/FEU has slipped $1,000. ”It’s hard to predict where [the rate slide] ends,” Lund said. “Customers are contracting a little bit shorter because they don’t want to get caught out on a long-term arrangement.” Contact Greg Knowler at greg.knowler@spglobal.com .

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Approvals from Europe, US among last hurdles in DSV’s takeover of DB Schenker

<div class="phx-topic abstract-wrapper">The vessel, carrying 1,353 containers of Chilean cherries to China, suffered a main engine failure in the middle of the Pacific Ocean on Jan. 13, 17 days into what was supposed to be a 24-day voyage.</div>

The vessel, carrying 1,353 containers of Chilean cherries to China, suffered a main engine failure in the middle of the Pacific Ocean on Jan. 13, 17 days into what was supposed to be a 24-day voyage.

<div class="phx-topic">Given the scale of the potential claim on the MV Maersk Saltoro, protection and indemnity (P&amp;I) clubs may in the future be reluctant to insure ocean carriers with such a volume of high-value, highly perishable — and therefore high-risk — items on board. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5937362_0.1.jpg"></img></div>The outcome of the Maersk Saltoro saga may be a watershed moment for the global trade in perishables. The vessel, one of this season’s record 30 Chile-to-China “Cherry Express” vessels, is carrying 1,353 containers (24,000 metric tons) of Chilean cherries, berries and nectarines from the Port of San Antonio to the Port of Nansha. The vessel suffered a main engine failure in the middle of the Pacific Ocean on Jan. 13, 17 days into what was supposed to be a 24-day voyage. After drifting in and around Micronesia for two weeks, the vessel resumed its voyage, albeit at a stately 7.5 knots, only for the engine to fail for a second time. In a best-case scenario, the earliest the vessel will arrive in Nansha is approximately six to seven weeks after its departure. As a result of the delay, the cherries will not arrive in time to exploit the historically lucrative Chinese market before and during the two-week-long Lunar New Year celebrations, which this year started on Jan. 29. Instead, they will be sold at a significant discount to the price they would have achieved, partly because the cargo missed the market but mostly because of suspicions about the fruit’s shelf life. This prognosis assumes that even after such a long voyage, the fruit will retain its structural integrity. Maersk has stated that the vessel has enough diesel to power the auxiliary engines, ensuring the reefer containers will be able to maintain temperature. Cherries are non-climacteric and do not ripen once they are severed from the plant that serves as their growth source. There have been sufficient advances in the field of controlled and/or modified atmosphere packaging to prolong the shelf life of even the most sensitive of perishable products. A now normal 24-day trans-Pacific voyage for cherries was unthinkable as recently as five years ago. Previously, Chilean fruit destined for China was shipped to the US West Coast and then airfreighted. If it costs an average of $1.80 per kilogram to pack the fruit, the per-container cost and freight (C&amp;F) to Nansha for the cherries is in the region of $46,000. The total cost of the cherry containers on the vessel will therefore be in the region of $60 million. However, shippers will argue that had the cherries arrived on time, the total value may be three to four times greater. It has the potential to become the largest ever reefer cargo-related claim and may have consequences and/or implications for the shipment of large volumes of high-value perishable products on container ships. <h3>On the surface, a ‘slam dunk’ against Maersk </h3>Maersk has acknowledged that timing is an issue and has directed concerned shippers to its Barbuss team of experts that specialize in handling claims related to maritime incidents. Superficially, it’s a slam dunk claim against the carrier, but this is where it could get complicated. According to Fester &amp; Co., one of the leading brokers in the placement and risk transfer of cargo insurance in the global insurance market, particularly for perishable cargo, any damage to cargo is covered by insurance. However, at first glance, there may not be any perceptible damage. The surveyors at the port will report on what they see and should make a value judgement on the state of the fruit. If they do not, Maersk can legitimately apologize to shippers for the delay — and sail on. There is nothing on the bill of lading that states that the carrier is responsible for the arrival date of the vessel. Most significantly, the majority of insurance policies no longer cover losses caused by delay. If there is no evident damage to the fruit, the most that shippers can expect is a claim against Maersk for the loss of potential earnings caused by the vessel’s delay. This will be hard to calculate and therefore contentious. Most importantly, it could take years for Maersk’s insurers to settle. <h3>Maersk could have a claim against shipper </h3>However, what is worse is that there may yet be an additional, even more serious obstacle to a satisfactory resolution, which relates to payment of the freight. If, as is likely, the cherries on the vessel are to be sold on consignment, it is the receivers who are responsible for settling the freight. However, typically it is the Chilean shippers who negotiate freight rates with the carriers. Here’s the kicker: Knowing that the fruit will at best have limited shelf-life and at worst be a total write-off, the receivers may refuse to accept the containers consigned to them. The freight will therefore go unpaid. In that instance, Maersk will have no choice but to take responsibility for the container and its contents, which will likely have to be dumped. Under these circumstances, the situation will be reversed; Maersk will have a claim against the individual shipper that booked the container. Fester says that there is clearly a very large overall loss event on the horizon. “The insurance industry is alarmed and has activated various recourse experts to get an accurate overview of the situation. The technical situation of the ship, the causes and the quality of the goods play an important role. Corresponding liability claims have been formulated,” the firm said in a statement. “... In addition, there are likely to be massive fluctuations in market prices.” The company added that, “In recent years, delay losses and market price fluctuations could not be placed on the insurance market, or only with very severe sub-limits. It can therefore be assumed that the insurance industry will only compensate for a small part of a possible total. Again, we must first get an independent overview of the extent and the actual impact before we speculate.” It could get even worse for shippers if the owner of the vessel declares “general average.” The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionately share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. In the Maersk Saltoro case, this may result in shippers receiving an invoice to cover total vessel losses instead of a sum from an insurance company. Contact Richard Bright at <a href="mailto:richard.bright@spitfireuk.net">richard.bright@spitfireuk.net</a>.</div>

Given the scale of the potential claim on the MV Maersk Saltoro, protection and indemnity (P&I) clubs may in the future be reluctant to insure ocean carriers with such a volume of high-value, highly perishable — and therefore high-risk — items on board. The outcome of the Maersk Saltoro saga may be a watershed moment for the global trade in perishables. The vessel, one of this season’s record 30 Chile-to-China “Cherry Express” vessels, is carrying 1,353 containers (24,000 metric tons) of Chilean cherries, berries and nectarines from the Port of San Antonio to the Port of Nansha. The vessel suffered a main engine failure in the middle of the Pacific Ocean on Jan. 13, 17 days into what was supposed to be a 24-day voyage. After drifting in and around Micronesia for two weeks, the vessel resumed its voyage, albeit at a stately 7.5 knots, only for the engine to fail for a second time. In a best-case scenario, the earliest the vessel will arrive in Nansha is approximately six to seven weeks after its departure. As a result of the delay, the cherries will not arrive in time to exploit the historically lucrative Chinese market before and during the two-week-long Lunar New Year celebrations, which this year started on Jan. 29. Instead, they will be sold at a significant discount to the price they would have achieved, partly because the cargo missed the market but mostly because of suspicions about the fruit’s shelf life. This prognosis assumes that even after such a long voyage, the fruit will retain its structural integrity. Maersk has stated that the vessel has enough diesel to power the auxiliary engines, ensuring the reefer containers will be able to maintain temperature. Cherries are non-climacteric and do not ripen once they are severed from the plant that serves as their growth source. There have been sufficient advances in the field of controlled and/or modified atmosphere packaging to prolong the shelf life of even the most sensitive of perishable products. A now normal 24-day trans-Pacific voyage for cherries was unthinkable as recently as five years ago. Previously, Chilean fruit destined for China was shipped to the US West Coast and then airfreighted. If it costs an average of $1.80 per kilogram to pack the fruit, the per-container cost and freight (C&F) to Nansha for the cherries is in the region of $46,000. The total cost of the cherry containers on the vessel will therefore be in the region of $60 million. However, shippers will argue that had the cherries arrived on time, the total value may be three to four times greater. It has the potential to become the largest ever reefer cargo-related claim and may have consequences and/or implications for the shipment of large volumes of high-value perishable products on container ships. On the surface, a ‘slam dunk’ against Maersk Maersk has acknowledged that timing is an issue and has directed concerned shippers to its Barbuss team of experts that specialize in handling claims related to maritime incidents. Superficially, it’s a slam dunk claim against the carrier, but this is where it could get complicated. According to Fester & Co., one of the leading brokers in the placement and risk transfer of cargo insurance in the global insurance market, particularly for perishable cargo, any damage to cargo is covered by insurance. However, at first glance, there may not be any perceptible damage. The surveyors at the port will report on what they see and should make a value judgement on the state of the fruit. If they do not, Maersk can legitimately apologize to shippers for the delay — and sail on. There is nothing on the bill of lading that states that the carrier is responsible for the arrival date of the vessel. Most significantly, the majority of insurance policies no longer cover losses caused by delay. If there is no evident damage to the fruit, the most that shippers can expect is a claim against Maersk for the loss of potential earnings caused by the vessel’s delay. This will be hard to calculate and therefore contentious. Most importantly, it could take years for Maersk’s insurers to settle. Maersk could have a claim against shipper However, what is worse is that there may yet be an additional, even more serious obstacle to a satisfactory resolution, which relates to payment of the freight. If, as is likely, the cherries on the vessel are to be sold on consignment, it is the receivers who are responsible for settling the freight. However, typically it is the Chilean shippers who negotiate freight rates with the carriers. Here’s the kicker: Knowing that the fruit will at best have limited shelf-life and at worst be a total write-off, the receivers may refuse to accept the containers consigned to them. The freight will therefore go unpaid. In that instance, Maersk will have no choice but to take responsibility for the container and its contents, which will likely have to be dumped. Under these circumstances, the situation will be reversed; Maersk will have a claim against the individual shipper that booked the container. Fester says that there is clearly a very large overall loss event on the horizon. “The insurance industry is alarmed and has activated various recourse experts to get an accurate overview of the situation. The technical situation of the ship, the causes and the quality of the goods play an important role. Corresponding liability claims have been formulated,” the firm said in a statement. “... In addition, there are likely to be massive fluctuations in market prices.” The company added that, “In recent years, delay losses and market price fluctuations could not be placed on the insurance market, or only with very severe sub-limits. It can therefore be assumed that the insurance industry will only compensate for a small part of a possible total. Again, we must first get an independent overview of the extent and the actual impact before we speculate.” It could get even worse for shippers if the owner of the vessel declares “general average.” The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionately share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. In the Maersk Saltoro case, this may result in shippers receiving an invoice to cover total vessel losses instead of a sum from an insurance company. Contact Richard Bright at richard.bright@spitfireuk.net .

Cool Cargo News

Chilean cherry shippers brace for insurance battle in Maersk Saltoro case

<div class="phx-topic abstract-wrapper">GenLogs uses a network of highway sensors to help freight brokers manage freight fraud and also identify sales and capacity opportunities.</div>

GenLogs uses a network of highway sensors to help freight brokers manage freight fraud and also identify sales and capacity opportunities.

<div class="phx-topic">A startup technology provider that uses a network of roadside sensors to capture US truckload visibility data landed a new funding round on Monday, which it will use to quadruple that network and eventually push into Mexico and Canada. The company, GenLogs, said it has raised $14.6 million in funding from venture capital groups to expand its reach. The company primarily caters to US freight brokers, of which it has 50 customers. But CEO Ryan Joyce said there is an opportunity to also directly serve shippers and truckload carriers with the information it collects from its sensor network. “Around 80% of freight is not brokered. Those shippers with direct carrier relationships want fraud protections and they want to work with the best carriers,” Joyce told the Journal of Commerce. “That said, there are 25,000 active brokerages, with about 5,000 handling the majority of that volume. And we have 50 as customers, so 1%. There’s a huge opportunity with brokers still for us.” GenLogs operates a nationwide network of roadside sensors that passively collect data on every passing truck and equipment pairing. The static sensors, on the sides of interstates, filter out private vehicles and only collect data on vehicles, not drivers. The company’s product combines data from its sensor network with other third-party datasets to track truck locations, equipment pairings and patterns. GenLogs has grown to 60 customers. It also has 43 employees, up from three a year ago. The new funding will go toward increasing the number of engineering and product roles, Joyce said. Aside from building out its network of US highway sensors, Joyce said GenLogs next month will establish sensors at a major US port and in intermodal facilities, with the goal of getting information on all types of commercial vehicles and chassis. Thanks to the funding round, its expansion will also extend to Mexico and Canada, he said. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

A startup technology provider that uses a network of roadside sensors to capture US truckload visibility data landed a new funding round on Monday, which it will use to quadruple that network and eventually push into Mexico and Canada. The company, GenLogs, said it has raised $14.6 million in funding from venture capital groups to expand its reach. The company primarily caters to US freight brokers, of which it has 50 customers. But CEO Ryan Joyce said there is an opportunity to also directly serve shippers and truckload carriers with the information it collects from its sensor network. “Around 80% of freight is not brokered. Those shippers with direct carrier relationships want fraud protections and they want to work with the best carriers,” Joyce told the Journal of Commerce. “That said, there are 25,000 active brokerages, with about 5,000 handling the majority of that volume. And we have 50 as customers, so 1%. There’s a huge opportunity with brokers still for us.” GenLogs operates a nationwide network of roadside sensors that passively collect data on every passing truck and equipment pairing. The static sensors, on the sides of interstates, filter out private vehicles and only collect data on vehicles, not drivers. The company’s product combines data from its sensor network with other third-party datasets to track truck locations, equipment pairings and patterns. GenLogs has grown to 60 customers. It also has 43 employees, up from three a year ago. The new funding will go toward increasing the number of engineering and product roles, Joyce said. Aside from building out its network of US highway sensors, Joyce said GenLogs next month will establish sensors at a major US port and in intermodal facilities, with the goal of getting information on all types of commercial vehicles and chassis. Thanks to the funding round, its expansion will also extend to Mexico and Canada, he said. Contact Eric Johnson at eric.johnson@spglobal.com .

Surface

Truckload visibility vendor gets funding to expand sensor network

<div class="phx-topic abstract-wrapper">In the “Newsmakers” Q&amp;A, K+N’s head of ocean logistics touches upon US tariffs, sourcing shifts away from China, Red Sea transits and the benefits of AI.</div>

In the “Newsmakers” Q&A, K+N’s head of ocean logistics touches upon US tariffs, sourcing shifts away from China, Red Sea transits and the benefits of AI.

<div class="phx-topic">“Newsmakers” is a periodic Q&amp;A with a key industry player conducted by Journal of Commerce contributor Lori Ann LaRocco. Michael Aldwell entered the shipping industry 16 years ago in his native New Zealand as a project manager for Kuehne + Nagel’s (K+N’s) local contract logistics business. He now heads ocean logistics for K+N, the world’s largest forwarder. LaRocco: The logistics world has faced a lot of headwinds recently. We are now looking at the threat of (10%) tariffs being implemented on China. What is the reaction from the logistics side?<div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5936420_0.1.png"></img></div>Aldwell: So, from the companies that have a high density of manufacturing in China, they are looking for a diversified supply chain strategy. We’re seeing a continuation of the trend that we saw for the last seven, eight years since Trump was first in office, and that is, “Can you help us and support us with this continuation of offshoring?” I think realistically, that’s something that’s going to continue to be omnipresent for the coming four or five years. LaRocco: What implications do sourcing shifts out of China have on how you serve customers? Aldwell: Supply chain diversification feeds into the needs of a logistics enterprise because as the supply chain gets more complex and more diversified for an import or an exporter, it’s harder to replicate the network of a global logistics provider by yourself. We see expansion happening in Vietnam and Malaysia. I just came back from Indonesia, and we see substantial growth there. That economy is amazing. You have 280 million people in Indonesia. I think it’s one of the most unappreciated economies in the world. We are also seeing footwear manufacturing moving to Central America. So, we see the need to be able to service complex international supply chain programs in Central America at a greater density than we have had in the past. I think that trend is beginning to accelerate little by little. We still see trade growth coming positively out of China. The early weeks of pre-Lunar New Year and late fourth-quarter trends were relatively poignant in terms of the build out. LaRocco: How long does it take for you to pivot to capture that emerging growth? Aldwell: It depends on the scale. It also depends on what modality you want to take to do that. We have a network existing today in more than 100 countries, so what we’re now seeing is increasing density in existing manufacturing zones more likely to be targeted areas from a tariff perspective. So, you can scale quite quickly. It can take weeks and months instead of years because in most of these places, we have an established footprint. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5936422_0.1.jpg"></img></div>What’s different is port capacity, terminal capacity, getting equipment into the right places when things are moving around. That takes time, but actually getting ships in the right place is not so hard because you can push steel through water in most places. Getting the logistics enterprises scaled up and running is a challenge, but it’s not something that we’re not used to. LaRocco: What about India? Aldwell: What we see at the moment is really strong growth in the Indian marketplace. I think there are two things going on India. One is the growth of India as an outsource manufacturing hub where you see, as one of the beneficiaries of outsourcing from China, the risk from China because of geopolitical events. The second is the scaling in India consumption. It is the world’s largest population. Indian consumers are becoming wealthier. There is a growing middle class in India, and that’s driving consumption for imports, as well as the need to get raw materials for the manufacturing supply chain. So, there’s a lot of investment that needs to go into India’s terminal infrastructure, the rail infrastructure, and we see progress there. We see a lot of [capital expenditures] going into that space. LaRocco: We know that companies had been frontloading due to the combination of tariffs, the ILA strike, and the threat of another strike [in January]. In your future orders, are you seeing shippers starting to pull back some of that freight that went to the West Coast back to the East Coast? Aldwell: I think that’s a natural trend and we’re seeing that happen. We’re seeing some of that cargo starting to go back to the East Coast. As shippers go into the new year, they have been pointing to more locations across the US to make sure they are diversifying their supply chain by using the East Coast and Gulf ports. LaRocco: Maersk and MSC recently came out saying they’re going to continue going around the Cape of Good Hope, which, while it is longer, provides more stability and certainty in the logistical supply chain. Are there things out there that you’re concerned about that would add to volatility and uncertainty? Aldwell: I think there are a few big events that are going to happen in the future. One is, I think, the assumption that the ocean carriers will quickly go back into the Red Sea. I think that is being dispelled now by the few announcements and I guess there will be probably some more to come. Most likely, it’s going to take some time to build confidence that that route will be safe ... What we are looking at is the insurance markets. You still can’t get insurance to sail through the Bab el-Mandeb Strait. Only when you start to see those markets kind of normalizing, I think you will see traffic going through Bab el-Mandeb Strait, into the Red Sea through the Suez Canal. So far, there’s no indication that that’s easing up at all. I think if we look further out, if you assume that you get into a normalized world where the Red Sea is open, I think the influx of capacity is concerning to everybody in the industry. What will that do in terms of volatility for markets, and will it drive changes into the way that services are structured? We also have the introduction of Gemini [in February], and that’s really the biggest change in modus operandi that we’ve seen in a very long time for ocean carriers. LaRocco: We are seeing the push here in the United States for AI. How’s your company going to approach the use and deployment of AI to help your customers? Aldwell: I think you’re ... going to see a substantial utilization of AI to improve data quality, to get better data in a timely fashion into systems and reports. This will help customers and logistics providers and carriers and all the participants in the industry make better, more informed decisions in a timely effect. They can also use AI to start to build out better predictive models for the future and see what inventory needs are and how planning is going to work. I think the big opportunities are in quality and optimization. LaRocco: How will it help in the velocity of trade? Aldwell: I think it’ll help the velocity of inventory that’s not related to core movements. At the end of the day, I think you’re going to have climate regulations, vessel sizes and other things that are regulated. There are port-to-port moves, and then we’ve got terminal productivity. AI will help shippers choose to move inventory to different locations and make better decisions [about] stocking quantities. The smarter the inventory models you can get, you are going to be able to be linear with what you can do. The only challenge then is to end up with disruptions like we’ve had so many of over the last five years. Of course, you need to be able to factor that in as well. LaRocco: The company acquired a 51% stake in IMC. Walk me through the strategic thinking behind this. How is it going to enhance the company moving forward? Aldwell: During the pandemic, our industry became front page news because of all the challenges. The biggest challenges that came in the industry were landslide logistics. Terminals got blocked up, ports got blocked up, the rails got blocked up. You couldn’t get boxes moving around the country. We all lived through that and we set out in force to remedy that by making a different kind of commitment to the future for our customers and what infrastructure and ability to execute we wanted to have. We were looking for a few things. The first one was a company with scale. Second, a company with great DNA. Third, was a company with great technology, and the fourth one was a national network. With IMC, we took a majority shareholding in a business that we really believe in, and that’s going to help our business serve our customers better into the future because we can make much better commitments about what kind of performance we can engage in down the line with that company. We’re absolutely committed to keeping IMC as an independent brand that runs itself in the marketplace. LaRocco: Do you think we’ll see more of these asset-based investments in the future in terms of being nimble to serve the needs of the client? Aldwell: Potentially yes when we think it’s the right thing for our business. I can’t speak to the competition. You saw some of the ocean carriers also go in and start acquiring those kinds of companies in the US and in other parts of the world. We think investing in ... assets or asset-like commitments on the land side with a scalable organization makes sense for us because we can deliver a higher degree of certainty around performance to customers. LaRocco: Looking at 2025, what has you excited in terms of innovation or opportunities around the world? Aldwell: AI, of course, has us excited. We’re really interested to see how AI can help us innovate and how it can help us build a more and more customer-centric organization that meets the needs of people. I think the huge amount of investment going into the infrastructure that’s needed to power AI on a worldwide basis is an opportunity for logistics companies. In terms of a potential recovery in Europe, if we see an end to the war in Eastern Europe, this could create an economic rejuvenation and more confidence in European markets. So those are the things that we’re watching closely. Contact Lori Ann LaRocco at <a href="mailto:loriann.larocco@nbcuni.com">loriann.larocco@nbcuni.com</a>.</div>

“Newsmakers” is a periodic Q&A with a key industry player conducted by Journal of Commerce contributor Lori Ann LaRocco. Michael Aldwell entered the shipping industry 16 years ago in his native New Zealand as a project manager for Kuehne + Nagel’s (K+N’s) local contract logistics business. He now heads ocean logistics for K+N, the world’s largest forwarder. LaRocco: The logistics world has faced a lot of headwinds recently. We are now looking at the threat of (10%) tariffs being implemented on China. What is the reaction from the logistics side?Aldwell: So, from the companies that have a high density of manufacturing in China, they are looking for a diversified supply chain strategy. We’re seeing a continuation of the trend that we saw for the last seven, eight years since Trump was first in office, and that is, “Can you help us and support us with this continuation of offshoring?” I think realistically, that’s something that’s going to continue to be omnipresent for the coming four or five years. LaRocco: What implications do sourcing shifts out of China have on how you serve customers? Aldwell: Supply chain diversification feeds into the needs of a logistics enterprise because as the supply chain gets more complex and more diversified for an import or an exporter, it’s harder to replicate the network of a global logistics provider by yourself. We see expansion happening in Vietnam and Malaysia. I just came back from Indonesia, and we see substantial growth there. That economy is amazing. You have 280 million people in Indonesia. I think it’s one of the most unappreciated economies in the world. We are also seeing footwear manufacturing moving to Central America. So, we see the need to be able to service complex international supply chain programs in Central America at a greater density than we have had in the past. I think that trend is beginning to accelerate little by little. We still see trade growth coming positively out of China. The early weeks of pre-Lunar New Year and late fourth-quarter trends were relatively poignant in terms of the build out. LaRocco: How long does it take for you to pivot to capture that emerging growth? Aldwell: It depends on the scale. It also depends on what modality you want to take to do that. We have a network existing today in more than 100 countries, so what we’re now seeing is increasing density in existing manufacturing zones more likely to be targeted areas from a tariff perspective. So, you can scale quite quickly. It can take weeks and months instead of years because in most of these places, we have an established footprint. What’s different is port capacity, terminal capacity, getting equipment into the right places when things are moving around. That takes time, but actually getting ships in the right place is not so hard because you can push steel through water in most places. Getting the logistics enterprises scaled up and running is a challenge, but it’s not something that we’re not used to. LaRocco: What about India? Aldwell: What we see at the moment is really strong growth in the Indian marketplace. I think there are two things going on India. One is the growth of India as an outsource manufacturing hub where you see, as one of the beneficiaries of outsourcing from China, the risk from China because of geopolitical events. The second is the scaling in India consumption. It is the world’s largest population. Indian consumers are becoming wealthier. There is a growing middle class in India, and that’s driving consumption for imports, as well as the need to get raw materials for the manufacturing supply chain. So, there’s a lot of investment that needs to go into India’s terminal infrastructure, the rail infrastructure, and we see progress there. We see a lot of [capital expenditures] going into that space. LaRocco: We know that companies had been frontloading due to the combination of tariffs, the ILA strike, and the threat of another strike [in January]. In your future orders, are you seeing shippers starting to pull back some of that freight that went to the West Coast back to the East Coast? Aldwell: I think that’s a natural trend and we’re seeing that happen. We’re seeing some of that cargo starting to go back to the East Coast. As shippers go into the new year, they have been pointing to more locations across the US to make sure they are diversifying their supply chain by using the East Coast and Gulf ports. LaRocco: Maersk and MSC recently came out saying they’re going to continue going around the Cape of Good Hope, which, while it is longer, provides more stability and certainty in the logistical supply chain. Are there things out there that you’re concerned about that would add to volatility and uncertainty? Aldwell: I think there are a few big events that are going to happen in the future. One is, I think, the assumption that the ocean carriers will quickly go back into the Red Sea. I think that is being dispelled now by the few announcements and I guess there will be probably some more to come. Most likely, it’s going to take some time to build confidence that that route will be safe ... What we are looking at is the insurance markets. You still can’t get insurance to sail through the Bab el-Mandeb Strait. Only when you start to see those markets kind of normalizing, I think you will see traffic going through Bab el-Mandeb Strait, into the Red Sea through the Suez Canal. So far, there’s no indication that that’s easing up at all. I think if we look further out, if you assume that you get into a normalized world where the Red Sea is open, I think the influx of capacity is concerning to everybody in the industry. What will that do in terms of volatility for markets, and will it drive changes into the way that services are structured? We also have the introduction of Gemini [in February], and that’s really the biggest change in modus operandi that we’ve seen in a very long time for ocean carriers. LaRocco: We are seeing the push here in the United States for AI. How’s your company going to approach the use and deployment of AI to help your customers? Aldwell: I think you’re ... going to see a substantial utilization of AI to improve data quality, to get better data in a timely fashion into systems and reports. This will help customers and logistics providers and carriers and all the participants in the industry make better, more informed decisions in a timely effect. They can also use AI to start to build out better predictive models for the future and see what inventory needs are and how planning is going to work. I think the big opportunities are in quality and optimization. LaRocco: How will it help in the velocity of trade? Aldwell: I think it’ll help the velocity of inventory that’s not related to core movements. At the end of the day, I think you’re going to have climate regulations, vessel sizes and other things that are regulated. There are port-to-port moves, and then we’ve got terminal productivity. AI will help shippers choose to move inventory to different locations and make better decisions [about] stocking quantities. The smarter the inventory models you can get, you are going to be able to be linear with what you can do. The only challenge then is to end up with disruptions like we’ve had so many of over the last five years. Of course, you need to be able to factor that in as well. LaRocco: The company acquired a 51% stake in IMC. Walk me through the strategic thinking behind this. How is it going to enhance the company moving forward? Aldwell: During the pandemic, our industry became front page news because of all the challenges. The biggest challenges that came in the industry were landslide logistics. Terminals got blocked up, ports got blocked up, the rails got blocked up. You couldn’t get boxes moving around the country. We all lived through that and we set out in force to remedy that by making a different kind of commitment to the future for our customers and what infrastructure and ability to execute we wanted to have. We were looking for a few things. The first one was a company with scale. Second, a company with great DNA. Third, was a company with great technology, and the fourth one was a national network. With IMC, we took a majority shareholding in a business that we really believe in, and that’s going to help our business serve our customers better into the future because we can make much better commitments about what kind of performance we can engage in down the line with that company. We’re absolutely committed to keeping IMC as an independent brand that runs itself in the marketplace. LaRocco: Do you think we’ll see more of these asset-based investments in the future in terms of being nimble to serve the needs of the client? Aldwell: Potentially yes when we think it’s the right thing for our business. I can’t speak to the competition. You saw some of the ocean carriers also go in and start acquiring those kinds of companies in the US and in other parts of the world. We think investing in ... assets or asset-like commitments on the land side with a scalable organization makes sense for us because we can deliver a higher degree of certainty around performance to customers. LaRocco: Looking at 2025, what has you excited in terms of innovation or opportunities around the world? Aldwell: AI, of course, has us excited. We’re really interested to see how AI can help us innovate and how it can help us build a more and more customer-centric organization that meets the needs of people. I think the huge amount of investment going into the infrastructure that’s needed to power AI on a worldwide basis is an opportunity for logistics companies. In terms of a potential recovery in Europe, if we see an end to the war in Eastern Europe, this could create an economic rejuvenation and more confidence in European markets. So those are the things that we’re watching closely. Contact Lori Ann LaRocco at loriann.larocco@nbcuni.com .

Journal of Commerce ‘Newsmakers’: Kuehne + Nagel’s Michael Aldwell

<div class="phx-topic abstract-wrapper">The Geneva-based carrier said a network of 210,000 reefer containers and more than 500 vessels are already equipped with its new iReefer monitoring system.</div>

The Geneva-based carrier said a network of 210,000 reefer containers and more than 500 vessels are already equipped with its new iReefer monitoring system.

<div class="phx-topic">Mediterranean Shipping Co. said Monday it is advancing its perishable cargo offerings by launching iReefer, a monitoring system that offers shippers real-time updates on their refrigerated cargo, including location and temperature. The Geneva-based carrier said in a statement a network of 210,000 reefer containers and more than 500 vessels are equipped with the new technology. MSC, which moves more than 1 million reefer containers annually, said it aims to eventually equip its entire fleet of containers and vessels with the technology “in the coming years.” “iReefer is designed with customers in mind,” Giuseppe Prudente, MSC’s chief logistics officer, said in the statement. “We fully understand their need to closely monitor and control cargo, to facilitate planning and ensure products are delivered in pristine condition.”  MSC’s iReefer will allow shippers live monitoring and temperature control of their perishable cargo, reducing costs by preventing cargo spoilage, damage and insurance claims. The improved visibility will also enhance container security and regulatory compliance, the carrier said. The free version of the program, iReefer Essential, is already accessible online via myMSC, the company’s proprietary e-business platform. It includes an overview of a shipper’s current and historic reefer shipments with MSC, as well as a container journey log and graphs. The second and third tiers, iReefer Pro and iReefer Ultimate, will launch on March 1 and include enhanced data offerings. iReefer Pro will include downloadable data on cargo, while iReefer Ultimate — an option for customers with significant reefer volumes — connects directly to shippers’ internal programs. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com. ">laura.robb@spglobal.com</a>.  </div>

Mediterranean Shipping Co. said Monday it is advancing its perishable cargo offerings by launching iReefer, a monitoring system that offers shippers real-time updates on their refrigerated cargo, including location and temperature. The Geneva-based carrier said in a statement a network of 210,000 reefer containers and more than 500 vessels are equipped with the new technology. MSC, which moves more than 1 million reefer containers annually, said it aims to eventually equip its entire fleet of containers and vessels with the technology “in the coming years.” “iReefer is designed with customers in mind,” Giuseppe Prudente, MSC’s chief logistics officer, said in the statement. “We fully understand their need to closely monitor and control cargo, to facilitate planning and ensure products are delivered in pristine condition.”  MSC’s iReefer will allow shippers live monitoring and temperature control of their perishable cargo, reducing costs by preventing cargo spoilage, damage and insurance claims. The improved visibility will also enhance container security and regulatory compliance, the carrier said. The free version of the program, iReefer Essential, is already accessible online via myMSC, the company’s proprietary e-business platform. It includes an overview of a shipper’s current and historic reefer shipments with MSC, as well as a container journey log and graphs. The second and third tiers, iReefer Pro and iReefer Ultimate, will launch on March 1 and include enhanced data offerings. iReefer Pro will include downloadable data on cargo, while iReefer Ultimate — an option for customers with significant reefer volumes — connects directly to shippers’ internal programs. Contact Laura Robb at laura.robb@spglobal.com . 

Container lines

MSC launches new visibility technology for refrigerated cargo

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

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Shippers save money, time with automated transportation bidding tools

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

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Filling the Supply Chain Education Gap with LTL Education Courses

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