<div class="phx-topic abstract-wrapper">Just-in-time inventory pressures are creating more less-than-truckload shipments, giving Canadian National and Canadian Pacific Railway an opportunity to accelerate their domestic intermodal volume growth.</div>

Just-in-time inventory pressures are creating more less-than-truckload shipments, giving Canadian National and Canadian Pacific Railway an opportunity to accelerate their domestic intermodal volume growth.

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<div>The two largest Canadian freight railroads are taking different tracks to a shared goal: growing their domestic intermodal volumes by more directly serving small and medium-sized cargo owners that tend to deal with intermediaries or wholesalers. Canadian National Railway is betting that its 2019 acquisitions of logistic provider TransX and the intermodal division of H&amp;R Transport Ltd., will allow itself to deepen its reach into the consumer economy by leveraging its rail network to consolidate more shipments into intermodal loads.CN’s smaller rival, Canadian Pacific Railway, aims to accelerate domestic volume growth — the shipment of domestic containers and trailers —...

The two largest Canadian freight railroads are taking different tracks to a shared goal: growing their domestic intermodal volumes by more directly serving small and medium-sized cargo owners that tend to deal with intermediaries or wholesalers. Canadian National Railway is betting that its 2019 acquisitions of logistic provider TransX and the intermodal division of H&R Transport Ltd., will allow itself to deepen its reach into the consumer economy by leveraging its rail network to consolidate more shipments into intermodal loads. CN’s smaller rival, Canadian Pacific Railway, aims to accelerate domestic volume growth — the shipment of domestic containers and trailers — by strengthening its partnerships with Bison Transport, one of the country’s largest truckload providers, and Consolidated Fastfrate, a major less-than-truckload (LTL) logistics provider. “A natural consequence of a railroad making a strong retail push is that it has the potential to drive the large intermediaries into the hands of a competitor with a more wholesale approach,” Larry Gross, an intermodal analyst, told JOC.com Unlike in the United States, where Class I railroads choose to outsource nearly all their domestic intermodal sales to intermediaries, Canadian railroads contract directly with major shippers and allow the some 50 intermodal wholesalers throughout the country to sell to smaller cargo owners. Trucking rate pressure Amid a general softness in truck rates in both countries, the Canadian intermodal market has fared better than the US, with domestic container revenue moves down 0.8 percent in 2019 from 2018, said Gross, citing an analysis of ETSO intermodal data from the Intermodal Association of North America (IANA) and data from his consultancy. Intermodal domestic container moves within the US fell 4.4 percent. Canadian intermodal wholesalers and cargo owners with their own domestic intermodal fleets were able to mitigate the slight retraction in total growth last year better than the sales teams of the Canadian railroads. Shipments via privately owned domestic boxes shrank 0.2 percent, while rail-owned container volume fell 1.2 percent in 2019. A similar dynamic played out in the US, with privately owned container traffic falling 1.8 percent, compared with a 12.2 percent plunge in the shipment of goods via rail-owned equipment, he said. The disparity between the performance of Canadian and US rail-owned domestic intermodal fleets suggests the latter might be more responsive to the shifting dynamics between trucking and rail pricing, and more in tune to the needs of the cargo owners themselves, Gross said. Just-in-time inventory pressures are creating more LTL shipments, giving TransX an opportunity with CN to handle more of that type of freight, said CN CEO Jean-Jacques Ruest in an interview with JOC.com in late 2019. While TransX is a unit of CN, the logistics provider is better positioned to deal with smaller accounts and attract smaller retailers looking for “more tender-loving care,” Ruest said. CN’s purchase of TransX added 1,500 trucks, 4,000 tractors, and 1,000 intermodal containers to the railroad’s network, along with 12 North American terminals. The intermodal division of Calgary-based H&R has a niche in refrigerated (reefer) shipping that’s attractive to CN, which is looking to drive consolidated shipments into export containers. The leveraging of TransX and expertise of the intermodal division formerly of H&R is part of CN’s larger effort to deepen its reach into the consumer economy as the North American shifts from manufacturing and carload commodity traffic steadily declines. “But there’s one sliver that keeps growing and growing, which is freight over the road and mostly consumer driven. Some of that is reefer, some of it is full load, and some of it you need to be able to combine in the same box,” said Ruest. During a Jan. 28 fourth-quarter earnings call, Ruest hinted that the company was open to new acquisitions that would fuel domestic intermodal growth. While CN doesn’t break out domestic intermodal volume traffic in its earnings reports, total intermodal volume slipped 1 percent to 2.6 million carloads in 2019. Last year, CN cited TransX for helping it win all the domestic intermodal business of retailer Hudson’s Bay. Although CP no longer breaks out domestic intermodal volumes,but the railroad said it had a record quarter for revenue and volume growth, capping the third straight record year of annual revenue and volume expansion. Total CP intermodal volume in 2019 expanded 2 percent year over year to more than 1 million carloads. In signing long-term agreements with Bison and Consolidated Fastfrate, CP is “creating solutions with them without needing to purchase them,” said John Brooks, executive vice president and chief marketing officer, during the company’s fourth-quarter earnings call on Jan. 29. CP can expand its sales reach by leaning on the teams of Bison and Consolidated Fastfrate. “We’re providing solutions in the marketplace that will drive new first-mile, last-mile innovation that the industry hasn’t seen,” Brooks said. Contact Mark Szakonyi at mark.szakonyi@ihsmarkit.com and follow him on Twitter: @MarkSzakonyi .

North-American rail

Canadian rails take different tracks to attract domestic intermodal

<div class="phx-topic abstract-wrapper">A lack of action at the government level is now the number one bottleneck facing green corridor projects, according to a new report.</div>

A lack of action at the government level is now the number one bottleneck facing green corridor projects, according to a new report.

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<div class="phx-topic">Green ocean corridors crucial to decarbonizing container shipping have grown rapidly over the past year, but the continued development of these trade routes is facing a “feasibility wall” in the absence of national policy incentives to narrow the cost gap between fossil fuels and cleaner alternatives, according to a new report. The Annual Progress Report on Green Shipping Corridors 2024, published Tuesday by the Getting to Zero Coalition and the Global Maritime Forum, said this lack of action at the government level was now the number one bottleneck facing green corridor projects. “Green shipping corridors have an essential role to play in accelerating zero-emission shipping,” Jesse Fahnestock, director of decarbonization at the Global Maritime Forum, said in a statement. “This year saw a handful of advanced corridors setting the pace, but continued progress is not inevitable.” The warning comes as shipping’s greenhouse gas emissions return to the peak levels seen in 2008. Longer voyages around southern Africa to avoid ongoing hostilities in the Red Sea, spiralling freight rates and congestion across ocean container supply chains led to record-high carbon emissions in the third quarter, according to rate benchmarking platform Xeneta. The Marine Benchmark Carbon Emissions Index (CEI), which measures carbon emissions across Xeneta’s top 13 ocean container shipping trades, hit 107.9 points in the third quarter — the highest on record and up 12.2% compared with a year ago before the Red Sea crisis. The Global Maritime Forum report said 18 new green shipping corridor initiatives emerged worldwide in 2024, a 40% increase over 2023, with a third of the existing initiatives making “significant, measurable progress” in the past year. <h3>Africa diversions frustrate emissions cuts </h3>One of the largest of those green corridor projects connects the hubs of Rotterdam and Singapore, and even though the forced diversions around Africa are frustrating the drive to reduce shipping emissions, work continues on cleaning up the Asia-Europe trade route. The <a href="https://www.joc.com/article/singapore-rotterdam-ports-commit-to-green-corridor-deal-5242711">Rotterdam-Singapore Green and Digital Shipping Corridor</a> aims to reduce emissions from large container vessels on the 15,000-km route by at least 20% by 2030 by enabling the use of low- and zero-carbon shipping fuels. It is a project with 25 partners operating more than 90 large container vessels on the route with a combined transport capacity of 1.5 million TEUs per year. However, a recent Port of Rotterdam report said without urgent government initiatives to address the wide price gap between fossil fuels and low- or zero-emission fuels, there would not be the level of commitment needed from carriers and fuel producers, slowing the development of the green corridors. “Sustainable fuels are estimated to be two to three times more expensive than fossil fuels and could account for a significant portion of the total cost of ownership for container vessels,” the report noted. “This makes it difficult for shipping companies to commit to long-term offtake agreements, thereby hampering investments from suppliers in new production facilities,” it added. Maersk recently estimated that even with current regulatory tools in place such as the <a href="https://www.joc.com/article/european-parliament-approves-shipping-ets-but-stakeholders-wary-5202492">European Union’s Emissions Trading System (ETS)</a> and <a href="https://www.joc.com/article/container-carriers-to-shoulder-bulk-of-europe-fuel-intensity-rule-5192246">FuelEU Maritime fuel intensity rules</a> that will be applied from Jan. 1, only by the mid-2030s would it be more expensive to use fossil fuels on ships rather than green fuels. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="321b8a55-a7c4-47b5-91e8-82ca9eb8c88a"></dynamic-object></div>Member states of the International Maritime Organization (IMO) are working on <a href="https://www.joc.com/article/midterm-emissions-plan-to-take-center-stage-at-upcoming-imo-meeting-5731399">reaching an agreement on the proposed midterm measures</a> involving a carbon pricing mechanism and the establishment of a fuel standard that must be approved at the MEPC 83 meeting in April 2025 if they are to be adopted in October next year. <h3>Green trade lanes central to decarbonization </h3>The concept of green corridors was established in November 2021 as a critical way to scale new sustainable fuels and technologies. They are regarded as being central to delivering the goal of having zero-emission fuels account for 5% of all fuels by 2030, a target considered to be the threshold at which the infrastructure, supply chains, and technologies that support zero-emission fuels are mature enough to enable exponential growth. Fahnestock said if industry and national governments made a concerted effort to share the costs and risks associated with new fuels, “these leading corridors could together generate a breakthrough for zero-emission shipping before 2030.” But if green corridors fail to continue advancing, the report said the 5% target that could potentially jeopardize the industry’s entire 2050 net-zero goal will be at risk. “With shipping providing the backbone for global trade, failing to meet the sector’s decarbonization targets could have significant implications for Scope 3 emissions reductions across all sectors,” the report noted. The report identified key recommendations for the continued development of green corridors. On top of increased government support to bridge the operational cost gap of transitioning to alternative energy sources, the report said innovative commercial agreements for procurement within green corridor initiatives could be developed. Also recommended was more focused support on existing green corridor initiatives, a flexible governance approach to allow for risk sharing and scaling, as well as policy and finance to promote green corridors in the southern hemisphere’s weaker economies. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Green ocean corridors crucial to decarbonizing container shipping have grown rapidly over the past year, but the continued development of these trade routes is facing a “feasibility wall” in the absence of national policy incentives to narrow the cost gap between fossil fuels and cleaner alternatives, according to a new report. The Annual Progress Report on Green Shipping Corridors 2024, published Tuesday by the Getting to Zero Coalition and the Global Maritime Forum, said this lack of action at the government level was now the number one bottleneck facing green corridor projects. “Green shipping corridors have an essential role to play in accelerating zero-emission shipping,” Jesse Fahnestock, director of decarbonization at the Global Maritime Forum, said in a statement. “This year saw a handful of advanced corridors setting the pace, but continued progress is not inevitable.” The warning comes as shipping’s greenhouse gas emissions return to the peak levels seen in 2008. Longer voyages around southern Africa to avoid ongoing hostilities in the Red Sea, spiralling freight rates and congestion across ocean container supply chains led to record-high carbon emissions in the third quarter, according to rate benchmarking platform Xeneta. The Marine Benchmark Carbon Emissions Index (CEI), which measures carbon emissions across Xeneta’s top 13 ocean container shipping trades, hit 107.9 points in the third quarter — the highest on record and up 12.2% compared with a year ago before the Red Sea crisis. The Global Maritime Forum report said 18 new green shipping corridor initiatives emerged worldwide in 2024, a 40% increase over 2023, with a third of the existing initiatives making “significant, measurable progress” in the past year. Africa diversions frustrate emissions cuts One of the largest of those green corridor projects connects the hubs of Rotterdam and Singapore, and even though the forced diversions around Africa are frustrating the drive to reduce shipping emissions, work continues on cleaning up the Asia-Europe trade route. The Rotterdam-Singapore Green and Digital Shipping Corridor aims to reduce emissions from large container vessels on the 15,000-km route by at least 20% by 2030 by enabling the use of low- and zero-carbon shipping fuels. It is a project with 25 partners operating more than 90 large container vessels on the route with a combined transport capacity of 1.5 million TEUs per year. However, a recent Port of Rotterdam report said without urgent government initiatives to address the wide price gap between fossil fuels and low- or zero-emission fuels, there would not be the level of commitment needed from carriers and fuel producers, slowing the development of the green corridors. “Sustainable fuels are estimated to be two to three times more expensive than fossil fuels and could account for a significant portion of the total cost of ownership for container vessels,” the report noted. “This makes it difficult for shipping companies to commit to long-term offtake agreements, thereby hampering investments from suppliers in new production facilities,” it added. Maersk recently estimated that even with current regulatory tools in place such as the European Union’s Emissions Trading System (ETS) and FuelEU Maritime fuel intensity rules that will be applied from Jan. 1, only by the mid-2030s would it be more expensive to use fossil fuels on ships rather than green fuels. Member states of the International Maritime Organization (IMO) are working on reaching an agreement on the proposed midterm measures involving a carbon pricing mechanism and the establishment of a fuel standard that must be approved at the MEPC 83 meeting in April 2025 if they are to be adopted in October next year. Green trade lanes central to decarbonization The concept of green corridors was established in November 2021 as a critical way to scale new sustainable fuels and technologies. They are regarded as being central to delivering the goal of having zero-emission fuels account for 5% of all fuels by 2030, a target considered to be the threshold at which the infrastructure, supply chains, and technologies that support zero-emission fuels are mature enough to enable exponential growth. Fahnestock said if industry and national governments made a concerted effort to share the costs and risks associated with new fuels, “these leading corridors could together generate a breakthrough for zero-emission shipping before 2030.” But if green corridors fail to continue advancing, the report said the 5% target that could potentially jeopardize the industry’s entire 2050 net-zero goal will be at risk. “With shipping providing the backbone for global trade, failing to meet the sector’s decarbonization targets could have significant implications for Scope 3 emissions reductions across all sectors,” the report noted. The report identified key recommendations for the continued development of green corridors. On top of increased government support to bridge the operational cost gap of transitioning to alternative energy sources, the report said innovative commercial agreements for procurement within green corridor initiatives could be developed. Also recommended was more focused support on existing green corridor initiatives, a flexible governance approach to allow for risk sharing and scaling, as well as policy and finance to promote green corridors in the southern hemisphere’s weaker economies. Contact Greg Knowler at greg.knowler@spglobal.com .

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Maritime

Green ocean corridors hitting ‘feasibility wall’: Global Maritime Forum

<div class="phx-topic abstract-wrapper">The Ships for America Act and national security spotlight seen as growth opportunities for US-flag commercial fleet.</div>

The Ships for America Act and national security spotlight seen as growth opportunities for US-flag commercial fleet.

<div class="phx-topic">Support from the US government and an increased focus on national security are positioning the US-flag fleet for significant expansion and investment in the coming years, a panel of US-flag shipowners, operators, brokers and investors told attendees at the Marine Money conference in New Orleans last week.Panelists cited plans for the bipartisan “Ships for America Act” — sponsored by US senators Mark Kelly (D-Ariz.) and Mike Waltz (R-Fla.) in a bid to boost US shipbuilding and expand the US-flag fleet — as a key growth opportunity. “It’s getting a lot of support from Congress. We’re getting a ton of support from the miliary — stuff we haven’t seen in a very long time. It’s generational,” said Ryan Libhart Pereyda, principal and CEO of Patriot Maritime, a California-based federal contractor that owns and operates US flag ships, including large roll-on/roll-off (ro/ro) vessels and tankers.Pereyda pointed out that US President-elect Donald Trump nominated Waltz to be his national security adviser, while Trump tapped one of the bill’s other signatories, Sen. Marco Rubio (R-Fla.), for Secretary of State.The bill’s authors have stated that whereas the US had 10,000 US-flagged ships at the end of World War II, that number is now closer to about 80. Pereyda said the bill seeks to double the current number. “Is that realistic? Probably not. But having that sort of political support over the next four years and with all the support we’ve seen from Congress in the last few years for the Tanker Security Program, we think it’s a good opportunity,” he said. <h3>Incentivized vessels at capacity</h3>Panelists said the need for military readiness has helped drive investor interest in building US flag ships through two federal programs — the Maritime Security Program (MSP) and Tanker Security Program (TSP). Both programs provide federal stipends to maintain US-flagged vessels that could be used to move military vehicles, equipment and fuel tankers.“The big threat of not having enough US flag ships for national security purposes is a real concern. So hopefully in the next administration and the next Congress, they can increase funding for these programs to allow more ships to come in,” said Obaid Ahmad, president of Washington, DC-based ship brokerage firm Euro-American Shipping &amp; Trade.The Maritime Security Program (MSP), which was created in 1996, maintains a 60-vessel fleet of military-capable US-flag commercial vessels of various types, including breakbulk, ro/ro, container and multipurpose vessels (MPVs). Hugh Eden II, managing director in the global maritime division of investment firm Jefferies LLC, said he sees significant investment potential in expanding the MSP’s sister program, which was established in 2021 to maintain a fleet of 10 US-registered commercial vessels capable of supplying fuel to the armed forces. As of 2023, both programs were fully enrolled with the maximum number of vessels. “I think it represents a new lever for potential growth in putting to work either capital or ships on hold that they can put to work in the market,” Eden said.Will Terrell, president of US-flag MPV operator US Ocean of Houston, said fortifying the fleet will also rely on stricter enforcement of US cargo preference laws, which require the use of US-flag vessels to move any cargo that is owned, obtained, supplied or paid for by the US government. “At the end of the day, we’re all in the cargo business,” he said. “You can’t just crank up the number of ships and not do something on the cargo side as well.”Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

Support from the US government and an increased focus on national security are positioning the US-flag fleet for significant expansion and investment in the coming years, a panel of US-flag shipowners, operators, brokers and investors told attendees at the Marine Money conference in New Orleans last week. Panelists cited plans for the bipartisan “Ships for America Act” — sponsored by US senators Mark Kelly (D-Ariz.) and Mike Waltz (R-Fla.) in a bid to boost US shipbuilding and expand the US-flag fleet — as a key growth opportunity. “It’s getting a lot of support from Congress. We’re getting a ton of support from the miliary — stuff we haven’t seen in a very long time. It’s generational,” said Ryan Libhart Pereyda, principal and CEO of Patriot Maritime, a California-based federal contractor that owns and operates US flag ships, including large roll-on/roll-off (ro/ro) vessels and tankers. Pereyda pointed out that US President-elect Donald Trump nominated Waltz to be his national security adviser, while Trump tapped one of the bill’s other signatories, Sen. Marco Rubio (R-Fla.), for Secretary of State. The bill’s authors have stated that whereas the US had 10,000 US-flagged ships at the end of World War II, that number is now closer to about 80. Pereyda said the bill seeks to double the current number. “Is that realistic? Probably not. But having that sort of political support over the next four years and with all the support we’ve seen from Congress in the last few years for the Tanker Security Program, we think it’s a good opportunity,” he said. Incentivized vessels at capacity Panelists said the need for military readiness has helped drive investor interest in building US flag ships through two federal programs — the Maritime Security Program (MSP) and Tanker Security Program (TSP). Both programs provide federal stipends to maintain US-flagged vessels that could be used to move military vehicles, equipment and fuel tankers. “The big threat of not having enough US flag ships for national security purposes is a real concern. So hopefully in the next administration and the next Congress, they can increase funding for these programs to allow more ships to come in,” said Obaid Ahmad, president of Washington, DC-based ship brokerage firm Euro-American Shipping & Trade. The Maritime Security Program (MSP), which was created in 1996, maintains a 60-vessel fleet of military-capable US-flag commercial vessels of various types, including breakbulk, ro/ro, container and multipurpose vessels (MPVs). Hugh Eden II, managing director in the global maritime division of investment firm Jefferies LLC, said he sees significant investment potential in expanding the MSP’s sister program, which was established in 2021 to maintain a fleet of 10 US-registered commercial vessels capable of supplying fuel to the armed forces. As of 2023, both programs were fully enrolled with the maximum number of vessels. “I think it represents a new lever for potential growth in putting to work either capital or ships on hold that they can put to work in the market,” Eden said. Will Terrell, president of US-flag MPV operator US Ocean of Houston, said fortifying the fleet will also rely on stricter enforcement of US cargo preference laws, which require the use of US-flag vessels to move any cargo that is owned, obtained, supplied or paid for by the US government. “At the end of the day, we’re all in the cargo business,” he said. “You can’t just crank up the number of ships and not do something on the cargo side as well.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

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US flag vessel owners, investors tout wave of support for expanding fleet

<div class="phx-topic abstract-wrapper">Forwarders and industry analysts forecast strong import volumes through the early Lunar New Year that begins Jan. 29 as importers of time-sensitive merchandise and manufacturing components route shipments through the country’s busiest gateway.</div>

Forwarders and industry analysts forecast strong import volumes through the early Lunar New Year that begins Jan. 29 as importers of time-sensitive merchandise and manufacturing components route shipments through the country’s busiest gateway.

<div class="phx-topic">Rail container dwell times at the ports of Los Angeles and Long Beach rose to their highest level in two years last month and will likely remain elevated through January amid higher-than-normal import volumes driven in part by cargo diversions from the US East and Gulf coasts. Rail-destined container dwell times in the largest US port complex increased to an average of 9.86 days in October, up from 9.25 days in September and 8.2 days in August, according to data from the Pacific Merchant Shipping Association (PMSA), which represents terminal operators and shipping lines on the West Coast. “I think dwell times will remain elongated until the rails get some relief on the volumes,” said Lawrence Gross, president and founder of Gross Transportation and a Journal of Commerce analyst. US imports from Asia moving through Los Angeles-Long Beach have been exceptionally strong since the earlier-than-usual peak season began in early summer. Asian imports in the gateway were up 30% in July through September compared with the same period last year, according to PIERS, a Journal of Commerce sister product within S&amp;P Global. “The continued upward trajectory in dwell times through October underscores both the complexity and adaptability of our supply chain as we manage increased cargo volumes and try to balance intermodal equipment availability with demand,” said Natasha Villa, external affairs manager for the PMSA. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="155dedc1-99f2-4adf-a449-1c9ab2510f95"></dynamic-object></div>Forwarders and industry analysts forecast strong import volumes through the early Lunar New Year that begins Jan. 29 as importers of time-sensitive merchandise and manufacturing components route shipments through Los Angeles-Long Beach. Importers are <a href="https://www.joc.com/article/ila-breaks-off-contract-talks-accuses-usmx-of-semi-automation-push-5810392">concerned about the possibility of another strike by the International Longshoremen’s Association (ILA)</a> when its extended contract expires on Jan. 15. Importers are also front-loading shipments in anticipation <a href="https://www.joc.com/article/hapag-lloyd-sees-possible-pre-lny-cargo-rush-amid-very-healthy-demand-5817691">of a large increase in tariffs under the new Trump administration</a>.<h3>Terminals, railroads say rail dwells have peaked </h3>Railroad and terminal operator sources, meanwhile, told the Journal of Commerce that while import volumes will remain higher than normal through January, imports through Southern California peaked last month. Terminal operators are now focusing on relieving the backlog of rail containers that built up in recent months. “It definitely plateaued in October and we’re chipping away at the backlog,” said Alan McCorkle, president of Yusen Terminals in Los Angeles. Rail container dwell times at Long Beach Container Terminal (LBCT) last week were down to about three days, said Anthony Otto, LBCT’s president. “We’re all caught up and things are headed in the right direction,” Otto said. Union Pacific Railroad said the past month has seen significant improvement in Southern California. “So much has changed since October. Today (Nov. 14), Union Pacific’s total LA-LB inventory count is down to its lowest level since mid-July 2024,” a UP spokesperson told the Journal of Commerce. “We have also made significant progress in working with individual port terminals to significantly reduce aged containers.” UP this year has experienced a higher jump in loaded railcars idling. Between January and August, the railroad averaged 68 loaded intermodal railcars idling per week, according to the US Surface Transportation Board (STB). The average grew to 139 in September and 199 in October, although it peaked at 241 in the second week of October. BNSF Railway averaged 221 railcars idling in January through August, 170 in September, and 237 in October, with the peak in the third week of October, according to the STB data. <h3>Shippers still experiencing delays </h3>The upbeat analysis of the terminals and railroads is of little solace to shippers who say they still struggle with delays at the marine terminals. An importer in the automotive sector said he has no recourse but to build a buffer for rail container dwell times into his Southern California supply chain. “We have been doing this for months,” said the importer, who did not want to be identified. “Big guys move quicker, the rest of us slower.” Steve Hughes, president and CEO of the consultancy HCS International, said Southern California is an important gateway for automotive industry imports due to its extensive intermodal rail connections to the eastern half of the US. For many importers, rerouting shipments to other ports is not an option. “If you’re looking for good rail connections, there are not many viable alternatives,” Hughes said, noting that other West Coast gateways such as Seattle-Tacoma and Vancouver are also experiencing rail container dwell issues. Mario Cordero, executive director of the Port of Long Beach, said he feels “very comfortable” about the ability of terminal operators in the port complex to handle the continued high import volumes projected through the Lunar New Year. Cordero noted that Long Beach in October had its busiest month ever in terms of total cargo volume. With Los Angeles this week scheduled to report a strong October, Cordero said the port complex is handling the record volumes without the backlog of 109 container ships it experienced in January 2022. “We [Long Beach] are at 70% of capacity,” he said. “We’re already receiving cargo diverted from the East Coast. If there’s a bump in cargo, we’ll handle it.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Ari Ashe, Senior Editor, contributed to this story </div>

Rail container dwell times at the ports of Los Angeles and Long Beach rose to their highest level in two years last month and will likely remain elevated through January amid higher-than-normal import volumes driven in part by cargo diversions from the US East and Gulf coasts. Rail-destined container dwell times in the largest US port complex increased to an average of 9.86 days in October, up from 9.25 days in September and 8.2 days in August, according to data from the Pacific Merchant Shipping Association (PMSA), which represents terminal operators and shipping lines on the West Coast. “I think dwell times will remain elongated until the rails get some relief on the volumes,” said Lawrence Gross, president and founder of Gross Transportation and a Journal of Commerce analyst. US imports from Asia moving through Los Angeles-Long Beach have been exceptionally strong since the earlier-than-usual peak season began in early summer. Asian imports in the gateway were up 30% in July through September compared with the same period last year, according to PIERS, a Journal of Commerce sister product within S&P Global. “The continued upward trajectory in dwell times through October underscores both the complexity and adaptability of our supply chain as we manage increased cargo volumes and try to balance intermodal equipment availability with demand,” said Natasha Villa, external affairs manager for the PMSA. Forwarders and industry analysts forecast strong import volumes through the early Lunar New Year that begins Jan. 29 as importers of time-sensitive merchandise and manufacturing components route shipments through Los Angeles-Long Beach. Importers are concerned about the possibility of another strike by the International Longshoremen’s Association (ILA) when its extended contract expires on Jan. 15. Importers are also front-loading shipments in anticipation of a large increase in tariffs under the new Trump administration . Terminals, railroads say rail dwells have peaked Railroad and terminal operator sources, meanwhile, told the Journal of Commerce that while import volumes will remain higher than normal through January, imports through Southern California peaked last month. Terminal operators are now focusing on relieving the backlog of rail containers that built up in recent months. “It definitely plateaued in October and we’re chipping away at the backlog,” said Alan McCorkle, president of Yusen Terminals in Los Angeles. Rail container dwell times at Long Beach Container Terminal (LBCT) last week were down to about three days, said Anthony Otto, LBCT’s president. “We’re all caught up and things are headed in the right direction,” Otto said. Union Pacific Railroad said the past month has seen significant improvement in Southern California. “So much has changed since October. Today (Nov. 14), Union Pacific’s total LA-LB inventory count is down to its lowest level since mid-July 2024,” a UP spokesperson told the Journal of Commerce. “We have also made significant progress in working with individual port terminals to significantly reduce aged containers.” UP this year has experienced a higher jump in loaded railcars idling. Between January and August, the railroad averaged 68 loaded intermodal railcars idling per week, according to the US Surface Transportation Board (STB). The average grew to 139 in September and 199 in October, although it peaked at 241 in the second week of October. BNSF Railway averaged 221 railcars idling in January through August, 170 in September, and 237 in October, with the peak in the third week of October, according to the STB data. Shippers still experiencing delays The upbeat analysis of the terminals and railroads is of little solace to shippers who say they still struggle with delays at the marine terminals. An importer in the automotive sector said he has no recourse but to build a buffer for rail container dwell times into his Southern California supply chain. “We have been doing this for months,” said the importer, who did not want to be identified. “Big guys move quicker, the rest of us slower.” Steve Hughes, president and CEO of the consultancy HCS International, said Southern California is an important gateway for automotive industry imports due to its extensive intermodal rail connections to the eastern half of the US. For many importers, rerouting shipments to other ports is not an option. “If you’re looking for good rail connections, there are not many viable alternatives,” Hughes said, noting that other West Coast gateways such as Seattle-Tacoma and Vancouver are also experiencing rail container dwell issues. Mario Cordero, executive director of the Port of Long Beach, said he feels “very comfortable” about the ability of terminal operators in the port complex to handle the continued high import volumes projected through the Lunar New Year. Cordero noted that Long Beach in October had its busiest month ever in terms of total cargo volume. With Los Angeles this week scheduled to report a strong October, Cordero said the port complex is handling the record volumes without the backlog of 109 container ships it experienced in January 2022. “We [Long Beach] are at 70% of capacity,” he said. “We’re already receiving cargo diverted from the East Coast. If there’s a bump in cargo, we’ll handle it.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Ari Ashe, Senior Editor, contributed to this story

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<div class="phx-topic abstract-wrapper">The move comes as the DP World-operated hub is making large investments in berths and supporting infrastructure with a plan to grow its throughput and attract volumes from other UK ports, including top rival Felixstowe. </div>

The move comes as the DP World-operated hub is making large investments in berths and supporting infrastructure with a plan to grow its throughput and attract volumes from other UK ports, including top rival Felixstowe.

<div class="phx-topic">DP World’s London Gateway opened a £350 million ($442 million) all-electric fourth berth last week, the latest step in a six-berth plan to overtake Felixstowe as the UK’s largest container port in the next five years. But the title of largest UK port is not the only thing London Gateway plans to take from Felixstowe. In a review of the Gemini Cooperation’s port network published in a customer advisory Monday, members Maersk and Hapag-Lloyd said they have decided that vessels in the shared network will call at London Gateway instead of Felixstowe when the new alliance launches in February. “During this optimization process and our review of the Asia-Europe services, we have concluded that London Gateway is the most optimal port to serve our customers importing/exporting cargo to and from the UK,” Maersk noted in the advisory. Felixstowe, operated by Hong Kong’s Hutchison Port Holdings, handles more than 4 million TEUs a year, while 2.9 million TEUs crossed the London Gateway wharves last year. Maersk said the decision for Gemini services to call at London Gateway was a strategic move to reduce network complexity with mostly single operator loops and fewer port calls per service, and was aimed at improving reliability, reach and speed for customers. “Due to this change, Felixstowe will not be a part of Maersk and Hapag-Lloyd’s shared Gemini network,” the carrier said. Maersk currently has four calls at Felixstowe outside its existing 2M Alliance with Mediterranean Shipping Co. that will not be affected by the launch of Gemini. The launch of the new 430-meter berth at London Gateway, which DP World said will increase handling capacity at the port by about 1 million TEUs annually, comes after $1.3 billion in fresh investment into its London Gateway operation was briefly threatened last month when the UK Transport Secretary criticized the March 2022 sacking of nearly 800 sea staff by DP World subsidiary P&amp;O Ferries. DP World group Chairman and CEO Sultan Ahmed bin Sulayem immediately canceled a scheduled announcement of the $1.3 billion investment and ordered a review of the London Gateway expansion plans. He later reversed his decision after a flurry of phone calls between DP World and senior British government officials. <h3>A pointed message </h3>In what appears to be a pointed message to the UK government, Ernst Schulze, DP World UK CEO for ports and terminals, placed a heavy emphasis on the scale of the investment being made into London Gateway. “We have already invested more than £2 billion ($2.5 billion) in the building of our modern and efficient facility at London Gateway in the last decade, connecting the UK with global supply chains and export markets,” he said. “This new berth, alongside our £1 billion [$1.3 billion] investment in the fifth and sixth berths, will further enable us to service the largest vessels in operation worldwide today, and the larger, future megaships currently under construction, while also advancing our goal to be net-zero by 2050,” Schulze noted, adding that the all-electric berth has also added 200 new permanent jobs to the port. London Gateway is located on the River Thames estuary about 30 miles east of London. The new berth will operate alongside the London Gateway Logistics Park, which has 9.25 million square feet of warehousing capacity, half of which is already developed, and multimodal connectivity to domestic and international road and rail networks. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

DP World’s London Gateway opened a £350 million ($442 million) all-electric fourth berth last week, the latest step in a six-berth plan to overtake Felixstowe as the UK’s largest container port in the next five years. But the title of largest UK port is not the only thing London Gateway plans to take from Felixstowe. In a review of the Gemini Cooperation’s port network published in a customer advisory Monday, members Maersk and Hapag-Lloyd said they have decided that vessels in the shared network will call at London Gateway instead of Felixstowe when the new alliance launches in February. “During this optimization process and our review of the Asia-Europe services, we have concluded that London Gateway is the most optimal port to serve our customers importing/exporting cargo to and from the UK,” Maersk noted in the advisory. Felixstowe, operated by Hong Kong’s Hutchison Port Holdings, handles more than 4 million TEUs a year, while 2.9 million TEUs crossed the London Gateway wharves last year. Maersk said the decision for Gemini services to call at London Gateway was a strategic move to reduce network complexity with mostly single operator loops and fewer port calls per service, and was aimed at improving reliability, reach and speed for customers. “Due to this change, Felixstowe will not be a part of Maersk and Hapag-Lloyd’s shared Gemini network,” the carrier said. Maersk currently has four calls at Felixstowe outside its existing 2M Alliance with Mediterranean Shipping Co. that will not be affected by the launch of Gemini. The launch of the new 430-meter berth at London Gateway, which DP World said will increase handling capacity at the port by about 1 million TEUs annually, comes after $1.3 billion in fresh investment into its London Gateway operation was briefly threatened last month when the UK Transport Secretary criticized the March 2022 sacking of nearly 800 sea staff by DP World subsidiary P&O Ferries. DP World group Chairman and CEO Sultan Ahmed bin Sulayem immediately canceled a scheduled announcement of the $1.3 billion investment and ordered a review of the London Gateway expansion plans. He later reversed his decision after a flurry of phone calls between DP World and senior British government officials. A pointed message In what appears to be a pointed message to the UK government, Ernst Schulze, DP World UK CEO for ports and terminals, placed a heavy emphasis on the scale of the investment being made into London Gateway. “We have already invested more than £2 billion ($2.5 billion) in the building of our modern and efficient facility at London Gateway in the last decade, connecting the UK with global supply chains and export markets,” he said. “This new berth, alongside our £1 billion [$1.3 billion] investment in the fifth and sixth berths, will further enable us to service the largest vessels in operation worldwide today, and the larger, future megaships currently under construction, while also advancing our goal to be net-zero by 2050,” Schulze noted, adding that the all-electric berth has also added 200 new permanent jobs to the port. London Gateway is located on the River Thames estuary about 30 miles east of London. The new berth will operate alongside the London Gateway Logistics Park, which has 9.25 million square feet of warehousing capacity, half of which is already developed, and multimodal connectivity to domestic and international road and rail networks. Contact Greg Knowler at greg.knowler@spglobal.com .

Gemini says will use London Gateway for shared network vessel calls

<div class="phx-topic abstract-wrapper">Shippers, brokers and trucking executives at a Traffic Club of Chicago forum all said the long freight downturn isn’t finished — but are hopeful it’s nearing an end.</div>

Shippers, brokers and trucking executives at a Traffic Club of Chicago forum all said the long freight downturn isn’t finished — but are hopeful it’s nearing an end.

<div class="phx-topic">CHICAGO — The so-called freight recession may be close to its end, but it is still very much alive, shippers, brokers and trucking executives told the Traffic Club of Chicago this week. Logistics executives don’t expect the US freight market to flip and expand until 2025, perhaps closer to mid-year, driven by increased manufacturing output and home sales. “We are in a transitionary period in the market,” Ryan Hammett, director of market intelligence and insights at C.H. Robinson Worldwide, told the Traffic Club’s Transportation &amp; Logistics Customer Forum on Wednesday. “There are signs that things are changing, and we’re moving from a period of oversupply into a little bit more balance,” Hammett said, referring to <a href="https://www.joc.com/article/large-carrier-truckload-capacity-stabilizing-alongside-rates-5788958">truckload capacity</a>. But while supply in the form of trucks may be contracting, demand in the form of shipments hasn’t yet expanded significantly, Hammett and other speakers told the forum. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="dbbd4237-84d4-4708-a9bb-cde62ec92462"></dynamic-object></div>“There’s only a certain amount of freight out there,” said Mitch Morrin, North American outbound logistics lead for Owens Corning. “You can say the freight recession is over all you want, but if the freight doesn’t materialize in the marketplace, it’s not.” Morrin expressed concern that some trucking companies will push for rate increases based on premature claims the <a href="https://www.joc.com/article/mid-level-us-freight-recession-packs-larger-truck-rate-wallop-analyst-5225206">freight downcycle</a> that began in May 2022 is finished. “Are they going to talk expansion into existence? That’s going to be tough,” he said. <h3>Seasonality, regional growth </h3>There are “green shoots” that signal improvement in freight demand, other speakers said. Much of that improvement, however, has been seasonal and regional. “The experience right now between Southern California and the East Coast in terms of freight markets is drastically different,” Hammett said. “I think that we need to begin to expect regional tightness in certain places that you may not see across the rest of America. Regional tightness doesn’t mean a freight market shift.” In the Midwest, “We’re still very flat on our volumes, but what we have seen in the last three months is fewer companies are seeing drops in volume,” said Matt Hart, executive director of the Illinois Trucking Association. “We know volumes have stopped declining, but they’re still very flat,” he said. “They haven’t taken off.” Other economic indicators support claims that a freight recovery is not yet under way, although spot and contract truckload rates have begun rising. The Cass Freight Shipments Index dropped 1.7% in September from August before seasonal adjustment. The American Trucking Associations For-Hire Freight Tonnage Index was 6.4% below its non-seasonally adjusted August reading in September. Routing guide depth metrics from C.H. Robinson Worldwide have dropped in recent months after rising toward July, Hammett said, indicating that primary carriers in contract routing guides are still picking up their customers’ freight most of the time. “A change in a freight recession is not a flat line,” Hammett said. <h3>Manufacturing malaise </h3>Hammett also noted that US manufacturing capacity utilization has dropped from its most recent peak in May 2022, the start of the freight recession. The seasonally adjusted S&amp;P Global US Manufacturing Purchasing Managers’ Index (PMI) was 48.5 in October, up from 47.3 in September but below the 50 “no-change” mark for a fourth consecutive month. The Institute for Supply Management (ISM) PMI <a href="https://www.reuters.com/markets/us/us-manufacturing-drops-15-month-low-october-2024-11-01/">also remained in contraction</a>, at 46.5 in October. “Industrial production is not doing well,” said Hammett. “[But] an upside is the consumer is still healthy.” Hammett sees consumer spending on goods and services becoming more balanced. “To really say that the market is turned we’re going to have to see manufacturing come back, we have to see housing starts coming back,” said Vince Paperiello, senior vice president of intermodal at STG Logistics. For Paperiello, a key indicator that the freight recession is ending will be seeing intermodal containers “come down off the stacks” where they’ve piled up around the US over the past two years. “When you see that, we’ll be out of the freight recession,” he said. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

CHICAGO — The so-called freight recession may be close to its end, but it is still very much alive, shippers, brokers and trucking executives told the Traffic Club of Chicago this week. Logistics executives don’t expect the US freight market to flip and expand until 2025, perhaps closer to mid-year, driven by increased manufacturing output and home sales. “We are in a transitionary period in the market,” Ryan Hammett, director of market intelligence and insights at C.H. Robinson Worldwide, told the Traffic Club’s Transportation & Logistics Customer Forum on Wednesday. “There are signs that things are changing, and we’re moving from a period of oversupply into a little bit more balance,” Hammett said, referring to truckload capacity . But while supply in the form of trucks may be contracting, demand in the form of shipments hasn’t yet expanded significantly, Hammett and other speakers told the forum. “There’s only a certain amount of freight out there,” said Mitch Morrin, North American outbound logistics lead for Owens Corning. “You can say the freight recession is over all you want, but if the freight doesn’t materialize in the marketplace, it’s not.” Morrin expressed concern that some trucking companies will push for rate increases based on premature claims the freight downcycle that began in May 2022 is finished. “Are they going to talk expansion into existence? That’s going to be tough,” he said. Seasonality, regional growth There are “green shoots” that signal improvement in freight demand, other speakers said. Much of that improvement, however, has been seasonal and regional. “The experience right now between Southern California and the East Coast in terms of freight markets is drastically different,” Hammett said. “I think that we need to begin to expect regional tightness in certain places that you may not see across the rest of America. Regional tightness doesn’t mean a freight market shift.” In the Midwest, “We’re still very flat on our volumes, but what we have seen in the last three months is fewer companies are seeing drops in volume,” said Matt Hart, executive director of the Illinois Trucking Association. “We know volumes have stopped declining, but they’re still very flat,” he said. “They haven’t taken off.” Other economic indicators support claims that a freight recovery is not yet under way, although spot and contract truckload rates have begun rising. The Cass Freight Shipments Index dropped 1.7% in September from August before seasonal adjustment. The American Trucking Associations For-Hire Freight Tonnage Index was 6.4% below its non-seasonally adjusted August reading in September. Routing guide depth metrics from C.H. Robinson Worldwide have dropped in recent months after rising toward July, Hammett said, indicating that primary carriers in contract routing guides are still picking up their customers’ freight most of the time. “A change in a freight recession is not a flat line,” Hammett said. Manufacturing malaise Hammett also noted that US manufacturing capacity utilization has dropped from its most recent peak in May 2022, the start of the freight recession. The seasonally adjusted S&P Global US Manufacturing Purchasing Managers’ Index (PMI) was 48.5 in October, up from 47.3 in September but below the 50 “no-change” mark for a fourth consecutive month. The Institute for Supply Management (ISM) PMI also remained in contraction , at 46.5 in October. “Industrial production is not doing well,” said Hammett. “[But] an upside is the consumer is still healthy.” Hammett sees consumer spending on goods and services becoming more balanced. “To really say that the market is turned we’re going to have to see manufacturing come back, we have to see housing starts coming back,” said Vince Paperiello, senior vice president of intermodal at STG Logistics. For Paperiello, a key indicator that the freight recession is ending will be seeing intermodal containers “come down off the stacks” where they’ve piled up around the US over the past two years. “When you see that, we’ll be out of the freight recession,” he said. Contact William B. Cassidy at bill.cassidy@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

SSA Marine Mexico has made significant strides in modernizing its infrastructure at the Port of Manzanillo, investing $15 million to enhance operational efficiency and sustainability at its facilities. This move is part of the company's broader strategy to remain at the forefront of the shipping and logistics industry. •	Strengthening Sustainability with Advanced Technology <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488295264_Cranes%20arrival%20to%20TEC%20I.png" alt="Cranes arrival to TEC I" class="joc_admin__inline-image-inherit"></figure> In July, SSA Marine Mexico added seven state-of-the-art E-RTG (Electric Rubber-Tired Gantry) cranes to its fleet, valued at $14 million. These advanced cranes were distributed across its two terminals: four cranes were assigned to the Multipurpose Terminal, and three to the Specialized Container Terminal I. What sets these cranes apart is their dual-operation capability, allowing them to function either on electric power or diesel fuel. This innovation plays a critical role in reducing the environmental impact of operations, contributing to a 7% increase in energy efficiency. This efficiency improvement is equivalent to eliminating nearly 4,000 tons of CO2 emissions annually, underscoring SSA Marine Mexico's commitment to sustainability. Through this acquisition, SSA Marine Mexico not only enhances its cargo-handling capabilities but also reinforces its leadership in integrating cutting-edge, eco-friendly technology in the maritime industry. The company continues to push the boundaries of efficiency and sustainability, ensuring long-term value for both its customers and the environment. •	Upgraded Facilities to Meet Growing Demand <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488350634_Multipurpose%20terminal.png" alt="Multipurpose Terminal" class="joc_admin__inline-image-inherit"></figure> In addition to the new cranes, SSA Marine Mexico has completed crucial modernization and repair work across its Multipurpose Terminal and Specialized Facility at the Port of Manzanillo. This $1 million investment targeted critical infrastructure enhancements, focusing on both structural integrity and operational functionality. Key improvements included leveling approximately 12,000 square meters in the dock area, along with the removal of outdated concrete curbs and asphalt layers. The upgraded space now features high-resistance pavers designed to optimize water drainage and prevent pooling, ensuring safer and more efficient operations. Moreover, the Specialized Facility saw significant upgrades, including the leveling of key warehouse areas to facilitate smoother cargo handling processes. These infrastructure improvements directly enhance the handling of TEUS (Twenty-foot Equivalent Unit containers), further demonstrating SSA Marine Mexico's unwavering commitment to continuous modernization, operational safety, and efficiency. With these initiatives, SSA Marine Mexico is well-positioned to meet the growing demands of the global shipping industry while setting new standards in sustainable port operations. LINK:<a href="https://www.ssamarine.mx/ssa-ing/index" rel="noreferrer" class="joc_admin__link"> https://www.ssamarine.mx/ssa-ing/index</a>

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SSA Marine Mexico Modernizes Facilities with $15 Million Investment 

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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