<div class="phx-topic abstract-wrapper">1691 (Mar. 25, 1991) Previous day - 1711 The Baltic International Freight Futures Market in </div>

1691 (Mar. 25, 1991) Previous day - 1711 The Baltic International Freight Futures Market in

<div>1691 (Mar. 25, 1991) Previous day - 1711The Baltic International Freight Futures Market in London offers owners and charterers in the bulk shipping community a forum for futures trading of a freight rate index. The contracts are based on the Baltic Freight Index, announced daily, of 15 routes listed below.DollarCom- MetricRoutes modity Weight Ton IndexU.S. Gulf-North Continent L. Grain 10% 17.250 1900Trans-Atlantic Round Time Charter 10% 13808 2107U.S. Gulf-Japan H. Grain 20% 25.917 1814Skaw Passero-Taiwan-Japan Time Charter 10% 16641 2247U.S. North Pacific-Japan H. Grain 7.5% 14.933 1619Trans-Pacific Round Time Charter 7.5% 13191 1962U.S. Gulf-Venezuela H. Grain 5% 15.417 1321Skaw Passero-Far...

1691 (Mar. 25, 1991) Previous day - 1711 The Baltic International Freight Futures Market in London offers owners and charterers in the bulk shipping community a forum for futures trading of a freight rate index. The contracts are based on the Baltic Freight Index, announced daily, of 15 routes listed below.Dollar Com- Metric Routes modity Weight Ton Index U.S. Gulf-North Continent L. Grain 10% 17.250 1900 Trans-Atlantic Round Time Charter 10% 13808 2107 U.S. Gulf-Japan H. Grain 20% 25.917 1814 Skaw Passero-Taiwan-Japan Time Charter 10% 16641 2247 U.S. North Pacific-Japan H. Grain 7.5% 14.933 1619 Trans-Pacific Round Time Charter 7.5% 13191 1962 U.S. Gulf-Venezuela H. Grain 5% 15.417 1321 Skaw Passero-Far East Time Charter 5% 13516 1672 Hampton Roads-Richards Bay-Japan Coal 7.5% 15.500 1503 Hampton Roads-North Continent Coal 5% 7.333 1506 Queensland-Rotterdam Coal 5% 13.000 1148 Vancouver-San Diego-Rotterdam Petcoke 5% 14.975 1139 Monrovia-Rotterdam Iron Ore 5% 7.592 1479 Casablanca-West Coast India Phosrock 2.5% 33.333 934 Aqaba-West Coast India Phosrock 5% 20.958 1548

Maritime

BALTIC FREIGHT INDEX

<div class="phx-topic abstract-wrapper">As a top tier of mega carriers has emerged through consolidation and organic growth, so has the need of those carriers to align their dominance on the ocean with capacity at ports.</div>

As a top tier of mega carriers has emerged through consolidation and organic growth, so has the need of those carriers to align their dominance on the ocean with capacity at ports.

Feature image

<div class="phx-topic">Container lines going back to Sea-Land Service Inc. have seen value in controlling marine terminals, but the advantages — and the competition to acquire key facilities — are intensifying in line with growing port congestion, finite port capacity and the growing dominance of a top tier of mega carriers. Securing port access and the efficiencies it brings, while allowing competitors to be blocked out, was the major victory achieved by Mediterranean Shipping Co. by participating via its terminal operating unit in the <a href="https://www.joc.com/article/hutchison-inks-228-billion-deal-to-sell-majority-of-port-holdings-to-blackrock-til-5955819">$23 billion deal with BlackRock to acquire the non-China assets of CK Hutchison’s terminal portfolio</a>. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5960667_0.1.jpg"></img></div>As a top tier of mega carriers has emerged through consolidation and organic growth, so has the need of those carriers to align their dominance on the ocean with capacity at ports. “The aspiration of major carriers and alliances today is the ability to control their own destiny with regard to port and terminal operating capability,” said Peter Levesque, advanced leadership fellow at Harvard University who has led terminal operating businesses, including Modern Terminals and Ports America. MSC, through its Terminal Investment Limited (TiL) unit, will gain access to terminals at 43 ports in 23 countries totaling 199 berths — although some of those <a href="https://www.joc.com/article/big-hutchison-deal-could-reshuffle-global-ports-network-drewry-5958162">terminals may be divested pursuant to antitrust review in Europe</a> — and will emerge as the world’s largest terminal operator. “The fact that TIL is involved in this deal with Blackrock speaks volumes as to what MSC looks to achieve in global terminal operating capability and competitive advantage,” Levesque said. The competition among carriers for prized port assets can be seen on multiple fronts. Hapag-Lloyd last year announced the creation of a terminal operating unit, reflecting its commitment to “expansive terminal operations,” and <a href="https://www.joc.com/article/hapag-lloyds-ports-arm-buys-majority-stake-in-le-havre-terminal-5959230">on Monday announced the acquisition of a majority stake in a Le Havre terminal operator</a>. Growing terminal portfolios are controlled by Maersk, CMA CGM and Ocean Network Express. “There is a tendency for each shipping line now to build their own terminal portfolio,” said Robbert van Trooijen, head of consultancy Inception Partners LLC Inc. and the former Maersk head of Asia-Pacific and Latin America. Carriers are growing increasingly aggressive in pursuit of ports. In its winning bid to acquire Global Container Terminal facilities at Bayonne and Staten Island, CMA CGM agreed to the surprise terms of sharing detention and demurrage revenue with the Port Authority of New York and New Jersey, and to helping fund quayside improvements. <a href="https://www.ckh.com.hk/en/media/press_each.php?id=3431">CK Hutchison said</a> the TiL/BlackRock deal resulted from a “competitive process in which numerous bids and expressions of interest were received,” which reportedly included other carriers. <h3>Moves driven by port congestion, capacity constraints </h3>Carriers’ urgency in acquiring terminals reflects concerns about growing port congestion globally combined with limited greenfield port projects. “Globally, terminal capacity is under significant constraint. Globally, port congestion is growing,” said van Trooijen. “There is a lack of greenfield projects out there that will deliver expansion, so getting your hands on existing capacity, and especially a portfolio of this size, this was a once-in-a-decade opportunity.” The ratio of a ship’s time at sea versus time in port has grown from 80-20 to 70-30 in recent years, said Johnson Leung of Linerlytica. China in recent years has stopped building port capacity ahead of demand as it did for many years, leading to growing congestion at Shanghai and Ningbo. Controlling terminals enables carriers to control costs at the terminal, tightly coordinate port calls and ensure its ships are guaranteed priority on arrival and departure. Control of hub ports is deemed the essential ingredient in delivering the <a href="https://www.joc.com/article/tpm25-gemini-hitting-90-reliability-target-as-new-network-rolls-out-habben-jansen-5955794">90%-plus schedule reliability promised by the hub-and-spoke Gemini alliance.</a>“Controlling key port infrastructure provides carriers with cost and operating efficiencies that are difficult to achieve with non-carrier-affiliated terminals and government port authorities,” Levesque said. The growing dominance of the top tier of carriers, where MSC crossed the 20% market share threshold and the top five carriers control 65% of capacity, according to Alphaliner, is forcing third-party terminal businesses to align with key carriers able to provide the volume needed to keep terminals profitable. “For a big terminal operator, you increasingly need to have a long-term relationship with carriers with whom you have more than average cooperation if you want to safeguard your future for the long term,” van Trooijen said. “Terminal operators who are successful are the ones who have developed long-term carrier relationships.” Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>.</div>

Container lines going back to Sea-Land Service Inc. have seen value in controlling marine terminals, but the advantages — and the competition to acquire key facilities — are intensifying in line with growing port congestion, finite port capacity and the growing dominance of a top tier of mega carriers. Securing port access and the efficiencies it brings, while allowing competitors to be blocked out, was the major victory achieved by Mediterranean Shipping Co. by participating via its terminal operating unit in the $23 billion deal with BlackRock to acquire the non-China assets of CK Hutchison’s terminal portfolio . As a top tier of mega carriers has emerged through consolidation and organic growth, so has the need of those carriers to align their dominance on the ocean with capacity at ports. “The aspiration of major carriers and alliances today is the ability to control their own destiny with regard to port and terminal operating capability,” said Peter Levesque, advanced leadership fellow at Harvard University who has led terminal operating businesses, including Modern Terminals and Ports America. MSC, through its Terminal Investment Limited (TiL) unit, will gain access to terminals at 43 ports in 23 countries totaling 199 berths — although some of those terminals may be divested pursuant to antitrust review in Europe — and will emerge as the world’s largest terminal operator. “The fact that TIL is involved in this deal with Blackrock speaks volumes as to what MSC looks to achieve in global terminal operating capability and competitive advantage,” Levesque said. The competition among carriers for prized port assets can be seen on multiple fronts. Hapag-Lloyd last year announced the creation of a terminal operating unit, reflecting its commitment to “expansive terminal operations,” and on Monday announced the acquisition of a majority stake in a Le Havre terminal operator . Growing terminal portfolios are controlled by Maersk, CMA CGM and Ocean Network Express. “There is a tendency for each shipping line now to build their own terminal portfolio,” said Robbert van Trooijen, head of consultancy Inception Partners LLC Inc. and the former Maersk head of Asia-Pacific and Latin America. Carriers are growing increasingly aggressive in pursuit of ports. In its winning bid to acquire Global Container Terminal facilities at Bayonne and Staten Island, CMA CGM agreed to the surprise terms of sharing detention and demurrage revenue with the Port Authority of New York and New Jersey, and to helping fund quayside improvements. CK Hutchison said the TiL/BlackRock deal resulted from a “competitive process in which numerous bids and expressions of interest were received,” which reportedly included other carriers. Moves driven by port congestion, capacity constraints Carriers’ urgency in acquiring terminals reflects concerns about growing port congestion globally combined with limited greenfield port projects. “Globally, terminal capacity is under significant constraint. Globally, port congestion is growing,” said van Trooijen. “There is a lack of greenfield projects out there that will deliver expansion, so getting your hands on existing capacity, and especially a portfolio of this size, this was a once-in-a-decade opportunity.” The ratio of a ship’s time at sea versus time in port has grown from 80-20 to 70-30 in recent years, said Johnson Leung of Linerlytica. China in recent years has stopped building port capacity ahead of demand as it did for many years, leading to growing congestion at Shanghai and Ningbo. Controlling terminals enables carriers to control costs at the terminal, tightly coordinate port calls and ensure its ships are guaranteed priority on arrival and departure. Control of hub ports is deemed the essential ingredient in delivering the 90%-plus schedule reliability promised by the hub-and-spoke Gemini alliance. “Controlling key port infrastructure provides carriers with cost and operating efficiencies that are difficult to achieve with non-carrier-affiliated terminals and government port authorities,” Levesque said. The growing dominance of the top tier of carriers, where MSC crossed the 20% market share threshold and the top five carriers control 65% of capacity, according to Alphaliner, is forcing third-party terminal businesses to align with key carriers able to provide the volume needed to keep terminals profitable. “For a big terminal operator, you increasingly need to have a long-term relationship with carriers with whom you have more than average cooperation if you want to safeguard your future for the long term,” van Trooijen said. “Terminal operators who are successful are the ones who have developed long-term carrier relationships.” Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

Container lines

North American ports

Marine terminals

International ports

Hutchison deal shows thirst of big carriers to control global terminal assets

<div class="phx-topic abstract-wrapper">US-bound spot truck shipments from Canada are shrinking but rates are rising, while Mexico-US spot market shipments outpace pricing, according to DAT Freight &amp; Analytics. </div>

US-bound spot truck shipments from Canada are shrinking but rates are rising, while Mexico-US spot market shipments outpace pricing, according to DAT Freight & Analytics.

<div class="phx-topic">The flow of goods moving across the US-Canada border shrank last week, but not the cost of moving them, as a trade war between the two neighbors deepened. Rates in the Toronto-to-Chicago lane, one of the heaviest for cross-border truck traffic between the US and Canada, rose 18% week over week while spot volumes dropped 20% in the week ended March 7, according to DAT Freight &amp; Analytics. From Chicago to Toronto, rates rose 8% while loads dropped 2% week over week. Canadian spot market capacity has been shrinking. Available Canadian spot truck capacity fell 29% year over year in January despite a 2% increase from December, according to Loadlink Technologies, a sister company of DAT within Roper Industries. The push to move high volumes of goods south ahead of US tariffs exacerbated that tightness. The story was different on the southern US border last week, where shipments from Mexico rose 12% week over week and 19% year over year, according to DAT. However, northbound spot rates from the border in March were up only 3 cents per mile from February. That reflects the differences in cross-border trucking between the US, Mexico and Canada. US-bound loads from Mexico are typically transferred to US trucks at the border, often through cross docks in border entry points such as Laredo, Texas. Southbound Canadian shipments move straight to their destinations. Pause and restart <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Ftpm25-chaos-erupts-as-us-tariffs-disrupt-cross-border-trucking-with-mexico-canada-5957555&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C4d58a1be910c4d2a0c9208dd600782fc%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C638772307560798379%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=22fWzX9CigDH8nfsQQU8bw9ix2Fv603N%2FAEb3N%2BzhtU%3D&amp;reserved=0">Freight flows across both borders were scrambled</a> when the US implemented 25% tariffs on goods from Canada and Mexico last Tuesday, delaying shipments and raising costs. Many shippers temporarily “hit the pause button” on US-bound loads from Mexico when tariffs took effect, said Jordan Dewart, president of Mexico for Redwood Logistics. The White House rolled back some tariffs on Mexico and Canada last Wednesday, postponing import taxes on the Canadian and Mexican automotive sectors until April 2. “Our American automotive industry, which provides American jobs, should not suffer significant disruption just because of the structure of its supply chain,” the White House said in a statement. Tariffs for goods that meet rules of origin under the US-Mexico-Canada Agreement (USMCA), including many agricultural products, were also delayed until April 2. The exemptions cover about 38% of Canadian goods and 50% of Mexican goods, according to the White House. That means about 62% of Canadian goods and half of Mexican products are still subject to US tariffs. Shippers can expect high cross-border freight volumes and rates to continue as the April 2 deadline approaches. In the meantime, Mexico and Canada have slapped retaliatory tariffs on US goods. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

The flow of goods moving across the US-Canada border shrank last week, but not the cost of moving them, as a trade war between the two neighbors deepened. Rates in the Toronto-to-Chicago lane, one of the heaviest for cross-border truck traffic between the US and Canada, rose 18% week over week while spot volumes dropped 20% in the week ended March 7, according to DAT Freight & Analytics. From Chicago to Toronto, rates rose 8% while loads dropped 2% week over week. Canadian spot market capacity has been shrinking. Available Canadian spot truck capacity fell 29% year over year in January despite a 2% increase from December, according to Loadlink Technologies, a sister company of DAT within Roper Industries. The push to move high volumes of goods south ahead of US tariffs exacerbated that tightness. The story was different on the southern US border last week, where shipments from Mexico rose 12% week over week and 19% year over year, according to DAT. However, northbound spot rates from the border in March were up only 3 cents per mile from February. That reflects the differences in cross-border trucking between the US, Mexico and Canada. US-bound loads from Mexico are typically transferred to US trucks at the border, often through cross docks in border entry points such as Laredo, Texas. Southbound Canadian shipments move straight to their destinations. Pause and restart Freight flows across both borders were scrambled when the US implemented 25% tariffs on goods from Canada and Mexico last Tuesday, delaying shipments and raising costs. Many shippers temporarily “hit the pause button” on US-bound loads from Mexico when tariffs took effect, said Jordan Dewart, president of Mexico for Redwood Logistics. The White House rolled back some tariffs on Mexico and Canada last Wednesday, postponing import taxes on the Canadian and Mexican automotive sectors until April 2. “Our American automotive industry, which provides American jobs, should not suffer significant disruption just because of the structure of its supply chain,” the White House said in a statement. Tariffs for goods that meet rules of origin under the US-Mexico-Canada Agreement (USMCA), including many agricultural products, were also delayed until April 2. The exemptions cover about 38% of Canadian goods and 50% of Mexican goods, according to the White House. That means about 62% of Canadian goods and half of Mexican products are still subject to US tariffs. Shippers can expect high cross-border freight volumes and rates to continue as the April 2 deadline approaches. In the meantime, Mexico and Canada have slapped retaliatory tariffs on US goods. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Surface

Cross-border spot truck rates rise as shippers ride tariff rollercoaster

<div class="phx-topic abstract-wrapper">The threat underscores the fragility of the Red Sea security situation and the reluctance of ocean carriers to return to Suez Canal transits until the safety of crew, ships and cargo can be guaranteed. </div>

The threat underscores the fragility of the Red Sea security situation and the reluctance of ocean carriers to return to Suez Canal transits until the safety of crew, ships and cargo can be guaranteed. 

<div class="phx-topic">Houthi militants have threatened to resume attacks on merchant shipping in the Red Sea by midweek unless Israel resumes humanitarian aid and electricity supplies to Gaza that were cut earlier this month. Speaking during a televised address on March 8, Houthi leader Abdul-Malik Al-Houthi set a four-day deadline for Israel to lift a blockade on aid deliveries into Gaza — which have been halted since March 2 — after which time the Houthis would “resume our naval operations against the Israeli enemy.” The Houthis had paused attacks on international shipping and on Israel on Jan. 19, except for vessels wholly owned by Israeli individuals and/or sailing under the Israeli flag, in line with the ceasefire between Israel and Hamas in Gaza that expired on March 1 without being extended or progressing to its proposed second stage. S&amp;P Global Market Intelligence said in a risk assessment Monday that the Houthi threat to resume attacks on Israel “is credible.” “A resumption of Houthi ‘naval operations’ would represent a severe risk to all vessels in transit in the Red Sea and Gulf of Aden, regardless of affiliation with Israel, due to uncertainties around targeting selection,” S&amp;P Global Market Intelligence said. The high potential for strikes on shipping to resume was highlighted by Jack Kennedy, head of Middle East and North Africa country risk at S&amp;P Global Market Intelligence, at the Journal of Commerce's TPM25 conference in Long Beach, Calif., last week. S&amp;P Global is the parent company of the Journal of Commerce. “We expect the ceasefire process is likely to break down in the next 12 months and military operations will resume in Gaza,” was Kennedy’s bleak assessment. The threat underscores the fragility of the Red Sea security situation and the reluctance of ocean carriers to resume Suez Canal transits until the safety of crew, ships and cargo can be guaranteed. Carriers have been diverting vessels around southern Africa since the Houthi attacks on shipping began 15 months ago. “It has to be safe, and right now it is not safe,” Soren Toft, CEO of Mediterranean Shipping Co. (MSC), told TPM25. “It is all linked to a number of agreements in the Middle East that are still being discussed, so for us there will be no immediate return to the Red Sea,” Toft added. “Could it happen next month, two months, six months? I don’t know. Eventually it will happen.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Houthi militants have threatened to resume attacks on merchant shipping in the Red Sea by midweek unless Israel resumes humanitarian aid and electricity supplies to Gaza that were cut earlier this month. Speaking during a televised address on March 8, Houthi leader Abdul-Malik Al-Houthi set a four-day deadline for Israel to lift a blockade on aid deliveries into Gaza — which have been halted since March 2 — after which time the Houthis would “resume our naval operations against the Israeli enemy.” The Houthis had paused attacks on international shipping and on Israel on Jan. 19, except for vessels wholly owned by Israeli individuals and/or sailing under the Israeli flag, in line with the ceasefire between Israel and Hamas in Gaza that expired on March 1 without being extended or progressing to its proposed second stage. S&P Global Market Intelligence said in a risk assessment Monday that the Houthi threat to resume attacks on Israel “is credible.” “A resumption of Houthi ‘naval operations’ would represent a severe risk to all vessels in transit in the Red Sea and Gulf of Aden, regardless of affiliation with Israel, due to uncertainties around targeting selection,” S&P Global Market Intelligence said. The high potential for strikes on shipping to resume was highlighted by Jack Kennedy, head of Middle East and North Africa country risk at S&P Global Market Intelligence, at the Journal of Commerce's TPM25 conference in Long Beach, Calif., last week. S&P Global is the parent company of the Journal of Commerce. “We expect the ceasefire process is likely to break down in the next 12 months and military operations will resume in Gaza,” was Kennedy’s bleak assessment. The threat underscores the fragility of the Red Sea security situation and the reluctance of ocean carriers to resume Suez Canal transits until the safety of crew, ships and cargo can be guaranteed. Carriers have been diverting vessels around southern Africa since the Houthi attacks on shipping began 15 months ago. “It has to be safe, and right now it is not safe,” Soren Toft, CEO of Mediterranean Shipping Co. (MSC), told TPM25. “It is all linked to a number of agreements in the Middle East that are still being discussed, so for us there will be no immediate return to the Red Sea,” Toft added. “Could it happen next month, two months, six months? I don’t know. Eventually it will happen.” Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Asia-Europe

Houthi militants threaten to restart attacks on Red Sea shipping

<div class="phx-topic abstract-wrapper">Having control over port operations has become a key element of container shipping that enables the fast turnaround of ships and improved schedule reliability.</div>

Having control over port operations has become a key element of container shipping that enables the fast turnaround of ships and improved schedule reliability.

<div class="phx-topic">Hapag-Lloyd subsidiary Hanseatic Global Terminals has acquired a majority stake in terminal operator CNMP at the French port of Le Havre from Seafrigo Group as the carrier expands its reach into the reefer business. Hanseatic on Monday said it acquired 60% of the shares in CNMP, while 40% will remain with Seafrigo, a temperature-controlled food logistics company. Financial terms of the deal were not disclosed. Hanseatic CEO Dheeraj Bhatia said in a statement the deal allows the company to “strengthen our position in one of our core European markets.”“At the same time, we are continuing to expand our global terminal portfolio while paving the way for targeted investments to enhance efficiency,” he added. “The transaction will therefore directly contribute to the vigorous realization of our ‘Strategy 2030.’” CNMP operates the Atlantique container terminal at Le Havre, France’s largest port, as an independent company. Le Havre has an annual container throughput of 3 million TEUs with strong hinterland connections, and the CNMP terminal plans to tap into that growth in the coming years, including in the attractive reefer container business. Hanseatic plans to expand its global terminal portfolio to more than 30 terminals by 2030 in support of its carrier parent. Having control over port operations has become a key element of container shipping that enables the fast turnaround of ships, improved on-time performance and greater integration with transshipment and inland connections in an increasingly congested world. It is the bedrock around which the <a href="https://www.joc.com/article/tpm25-gemini-hitting-90-reliability-target-as-new-network-rolls-out-habben-jansen-5955794">90% schedule reliability promise of Gemini Cooperation</a> members Hapag-Lloyd and Maersk is built, and it is behind the <a href="https://www.joc.com/article/hutchison-inks-228-billion-deal-to-sell-majority-of-port-holdings-to-blackrock-til-5955819">blockbuster $22.8 billion Hutchison port takeover</a> by BlackRock Group and Mediterranean Shipping Co.’s terminal arm.Similarly, CMA CGM plans to <a href="https://www.joc.com/article/cma-cgm-to-invest-20-billion-in-us-shipping-ports-and-logistics-5957748">invest $20 billion over the next four years</a> to significantly bolster its logistics presence in the US, including the expansion of capacity at key US ports. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd subsidiary Hanseatic Global Terminals has acquired a majority stake in terminal operator CNMP at the French port of Le Havre from Seafrigo Group as the carrier expands its reach into the reefer business. Hanseatic on Monday said it acquired 60% of the shares in CNMP, while 40% will remain with Seafrigo, a temperature-controlled food logistics company. Financial terms of the deal were not disclosed. Hanseatic CEO Dheeraj Bhatia said in a statement the deal allows the company to “strengthen our position in one of our core European markets.” “At the same time, we are continuing to expand our global terminal portfolio while paving the way for targeted investments to enhance efficiency,” he added. “The transaction will therefore directly contribute to the vigorous realization of our ‘Strategy 2030.’” CNMP operates the Atlantique container terminal at Le Havre, France’s largest port, as an independent company. Le Havre has an annual container throughput of 3 million TEUs with strong hinterland connections, and the CNMP terminal plans to tap into that growth in the coming years, including in the attractive reefer container business. Hanseatic plans to expand its global terminal portfolio to more than 30 terminals by 2030 in support of its carrier parent. Having control over port operations has become a key element of container shipping that enables the fast turnaround of ships, improved on-time performance and greater integration with transshipment and inland connections in an increasingly congested world. It is the bedrock around which the 90% schedule reliability promise of Gemini Cooperation members Hapag-Lloyd and Maersk is built, and it is behind the blockbuster $22.8 billion Hutchison port takeover by BlackRock Group and Mediterranean Shipping Co.’s terminal arm. Similarly, CMA CGM plans to invest $20 billion over the next four years to significantly bolster its logistics presence in the US, including the expansion of capacity at key US ports. Contact Greg Knowler at greg.knowler@spglobal.com .

Hapag-Lloyd’s ports arm buys majority stake in Le Havre terminal

<div class="phx-topic abstract-wrapper">While strong e-commerce demand last year filled all available air freight capacity out of China and kept the industry in peak season mode, recent US moves to clamp down on low-value Chinese imports have rattled the market.</div>

While strong e-commerce demand last year filled all available air freight capacity out of China and kept the industry in peak season mode, recent US moves to clamp down on low-value Chinese imports have rattled the market.

<div class="phx-topic">Air freight rates from China to the US have fallen sharply since Lunar New Year as the traditional post-holiday slump combined with mounting uncertainty over the impact of a US clampdown on low-value products under the “de minimis” threshold. While the steep decline in spot prices has moderated into March, average rates from Shanghai to the US were down 29% in February compared with the previous month in response to the regulatory and political messages emanating from the White House, according to Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta. “From the conversations we are hearing, some shippers are clearly looking for ways to minimize the impact of US tariffs, while others will be anticipating lower air freight rates if e-commerce volumes show a sustained dip,” van de Wouw noted in Xeneta’s latest market update. Strong e-commerce demand last year filled all available air freight capacity out of China and kept the industry in peak season mode, but recent US moves to clamp down on low-value Chinese imports have rattled the market. De minimis regulations in the US allow one shipment of less than $800 in value to move between a single shipper and single consignee per day, duty free. China accounted for two-thirds of the 1.36 billion de minimis imports last year. When the Trump administration removed low-value products from de minimis exemptions in February, the system immediately backed up, forcing the exemption of low-value imports to be restored until an appropriate inspection and duty collection system can be devised. Alan Beacham, managing director of global forwarder Toll Group, said the market experienced huge disruption when low-value shipments were excluded from the de minimis rules last month. “I don't think any of us were ready to experience what happened in those three or four days where a million and a half parcels were on the ground in Chicago and five to seven million parcels across the US,” Beacham told an air cargo panel last week at the Journal of Commerce’s TPM25 conference in Long Beach. “That was within three days. Imagine if it continued for a month and all that cargo would have to be cleared through US customs,” he said. “E-commerce will continue to grow, and the complexity around the intersection with tariffs and the intersection with customs is creating uncertainty as to how that will play out.” <h3>Shifting from air to ocean </h3>Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said the air cargo market slowed significantly after Jan. 20 following the de minimis policy announcements from the Trump administration. "This led to e-commerce platforms canceling charters, disrupting the supply and demand balance,” she wrote in a March update. Liu said although e-commerce “will not disappear,” it is shifting from a business-to-consumer (B2C) model to a more traditional fulfilment model that will reduce air freight demand as more shipments move to ocean freight. Xeneta forecasts air freight growth of 4% to 6% in 2025 following the strong performance in 2024 when volume grew 12%. But the growing trade tensions have placed “a big question mark” over the outlook, van de Wouw noted in his market update. “This is a situation completely outside of the control of the air cargo market, and there’s a great deal of noise, which is adding to stakeholders’ anxiety,” he said. “The issue is no one knows what the end game is and what’s going to happen from a regulatory perspective and how this will impact consumer confidence.” While any dip in demand from a regulatory clampdown on low-value imports into the US may temporarily ease capacity pressures, long-term structural challenges — such as aging fleets, slow production and regulatory hurdles — will keep the market tight, according to air cargo consultancy Cargo Facts. “The near-term future of air cargo remains uncertain, with shifting trade policies and supply chain challenges shaping the industry,” Cargo Facts wrote this week in the latest Baltic Air Index market outlook. “On one side, rising trade tensions and new tariffs are slowing demand in key areas like trans-Pacific e-commerce,” the consultancy wrote. “On the other hand, delays in aircraft production and freighter conversions mean supply growth may not keep up, creating potential capacity shortages in the coming years.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Air freight rates from China to the US have fallen sharply since Lunar New Year as the traditional post-holiday slump combined with mounting uncertainty over the impact of a US clampdown on low-value products under the “de minimis” threshold. While the steep decline in spot prices has moderated into March, average rates from Shanghai to the US were down 29% in February compared with the previous month in response to the regulatory and political messages emanating from the White House, according to Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta. “From the conversations we are hearing, some shippers are clearly looking for ways to minimize the impact of US tariffs, while others will be anticipating lower air freight rates if e-commerce volumes show a sustained dip,” van de Wouw noted in Xeneta’s latest market update. Strong e-commerce demand last year filled all available air freight capacity out of China and kept the industry in peak season mode, but recent US moves to clamp down on low-value Chinese imports have rattled the market. De minimis regulations in the US allow one shipment of less than $800 in value to move between a single shipper and single consignee per day, duty free. China accounted for two-thirds of the 1.36 billion de minimis imports last year. When the Trump administration removed low-value products from de minimis exemptions in February, the system immediately backed up, forcing the exemption of low-value imports to be restored until an appropriate inspection and duty collection system can be devised. Alan Beacham, managing director of global forwarder Toll Group, said the market experienced huge disruption when low-value shipments were excluded from the de minimis rules last month. “I don't think any of us were ready to experience what happened in those three or four days where a million and a half parcels were on the ground in Chicago and five to seven million parcels across the US,” Beacham told an air cargo panel last week at the Journal of Commerce’s TPM25 conference in Long Beach. “That was within three days. Imagine if it continued for a month and all that cargo would have to be cleared through US customs,” he said. “E-commerce will continue to grow, and the complexity around the intersection with tariffs and the intersection with customs is creating uncertainty as to how that will play out.” Shifting from air to ocean Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said the air cargo market slowed significantly after Jan. 20 following the de minimis policy announcements from the Trump administration. "This led to e-commerce platforms canceling charters, disrupting the supply and demand balance,” she wrote in a March update. Liu said although e-commerce “will not disappear,” it is shifting from a business-to-consumer (B2C) model to a more traditional fulfilment model that will reduce air freight demand as more shipments move to ocean freight. Xeneta forecasts air freight growth of 4% to 6% in 2025 following the strong performance in 2024 when volume grew 12%. But the growing trade tensions have placed “a big question mark” over the outlook, van de Wouw noted in his market update. “This is a situation completely outside of the control of the air cargo market, and there’s a great deal of noise, which is adding to stakeholders’ anxiety,” he said. “The issue is no one knows what the end game is and what’s going to happen from a regulatory perspective and how this will impact consumer confidence.” While any dip in demand from a regulatory clampdown on low-value imports into the US may temporarily ease capacity pressures, long-term structural challenges — such as aging fleets, slow production and regulatory hurdles — will keep the market tight, according to air cargo consultancy Cargo Facts. “The near-term future of air cargo remains uncertain, with shifting trade policies and supply chain challenges shaping the industry,” Cargo Facts wrote this week in the latest Baltic Air Index market outlook. “On one side, rising trade tensions and new tariffs are slowing demand in key areas like trans-Pacific e-commerce,” the consultancy wrote. “On the other hand, delays in aircraft production and freighter conversions mean supply growth may not keep up, creating potential capacity shortages in the coming years.” Contact Greg Knowler at greg.knowler@spglobal.com .

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

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Shippers save money, time with automated transportation bidding tools

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

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