<div class="phx-topic abstract-wrapper">As of Apr. 22, 1996Quotations are based on prices reported in the market or obtained from su</div>

As of Apr. 22, 1996Quotations are based on prices reported in the market or obtained from su

<div>As of Apr. 22, 1996Quotations are based on prices reported in the market or obtained from suppliers and other sources. They do not necessarily represent prices at which transactions have actually occurred. Price ranges represent quotations of different producers, as well as differences in quality or location.Prices and products appear as follows:Monday: Botanicals-Spices, Balsams-Gums, Waxes, Naval Stores.Tuesday: Aromatic Chemicals, Essential Oils, Plastics Materials and Synthetic Textiles.Wednesday: Aromatic Solvents, Coating Resins, Coaltar Crudes, Dry Colors, Intermediates, Paint Materials and Pigments.Thursday: Heavy Volume Chemicals, Acids, Dyeing-Tanning Materials, Fertilizers, Insecticides.Friday: Fine Chemicals, Acids, Vitamins, Paraffin Wax.NA - Not Available.Price Decrease+ Price IncreaseAROMATICSPrices are...

As of Apr. 22, 1996 Quotations are based on prices reported in the market or obtained from suppliers and other sources. They do not necessarily represent prices at which transactions have actually occurred. Price ranges represent quotations of different producers, as well as differences in quality or location. Prices and products appear as follows: Monday: Botanicals-Spices, Balsams-Gums, Waxes, Naval Stores. Tuesday: Aromatic Chemicals, Essential Oils, Plastics Materials and Synthetic Textiles. Wednesday: Aromatic Solvents, Coating Resins, Coaltar Crudes, Dry Colors, Intermediates, Paint Materials and Pigments. Thursday: Heavy Volume Chemicals, Acids, Dyeing-Tanning Materials, Fertilizers, Insecticides. Friday: Fine Chemicals, Acids, Vitamins, Paraffin Wax. NA - Not Available. Price Decrease + Price Increase AROMATICS Prices are dollars per pound unless otherwise stated and represent quantity and quality differentials. Low High Anethole, USP 6.80- 7.40 Amylcinnamic aldehyde 2.40- 2.80 Amyl salicylate 5.50 Benzaldehyde NF 1.20- 1.25 Benzyl acetate 1.80- 1.90 Benzyl benzoate 5.50 Citral FCC 9.75 Citronellol 4.20- 5.45 Citronellal, 85/35% Chinese 7.25 Coumarin, Chinese 8.25 Ethyl vanillin 15.00- 16.50 Eucalyptol 4.20 Eugenol 4.25 Geraniol syn., drums 5.00- 10.00 Geranyl acetate, syn. 5.25 Heliotropine 10.50- 11.25 Hydroxycitronellal 8.50 Isoeugenol 6.15 Ionones Alpha 14.00- 18.00 Beta 14.55- 15.00 Linalool, synthetic 5.50- 5.75 Linalyl acetate, synthetic 6.25 Methyl anthranilate 4.00- 4.25 Musks Ketone 10.50 Xylol 2.50 Phenylacetaldehyde 13.00- 18.00 a-Terpineol 1.40- 2.00 Vanillin,NF 7.25- 7.50 ESSENTIAL OILS Dollars per pound Anise star, Chinese 5.00 Basil, Egyptian 41.00- 55.00 Bay 50-55% 28.60 Bergamot, Italian 24.00 Bois de rose, Brazilian 17.60 Cananga, Indonesian 31.00 Caraway 27.00- 28.00 Cardamom 65.00 Cassia, Chinese 85% 14.20 Cedarwood, Virginiana 6.90 Chamomile, blue Egyptian 550.00 Cinnamon leaf, Sri Lanka 6.50 Citronella, Chinese 4.60 Cloveleaf 80%, Indonesian 3.20 Coriander, Russian 7.00- 8.00 Eucalyptus 80%, Chin 2.60 Geranium Bourbon 70.00 Chinese 35.00 Egyptian 34.00 Ginger, Chinese 15.25 Indian 25.00 Grapefruit, Florida 16.00- 18.00 Juniperberry, rectified 100.00 105.00 Lavandin, Abrialis 30-32% 9.25 Grosso 7.00- 7.35 Lavender, Spike 17.00- 19.00 Lemon Argentine 12.50- 12.80 Californian 8.50- 9.50 Italian 15.00 Lemongrass Cochin 9.00 Guatamalan 5.50 Lime Distilled, Mexican 13.50 Expressed, Mexican 13.50- 14.50 Mandarin, Italian 35.00- 40.00 Neroli,Bigarade,Span, k. 2215.00 Nutmeg, Indonesian 9.00 Orange Florida, Valencia 2.10 Pera Brazilian 1.60 Origanum, kilo 54.00 Palmarosa, Indian 8.60 Patchouli, Indonesian 9.25 Pepper, black, Indian 19.00 Peppermint, natural 15.60 Petitgrain, Min. 48% 12.00 Rosemary, Spanish 12.00- 13.00 Sage Clary American 42.00 Clary French 50.00- 58.00 Clary Russian 20.00- 25.00 Spanish 16.00- 18.00 Sandalwood East Indian 170.00 Spearmint, Far West native 14.50- 14.90 Scotch 19.00 Thyme Red, kilo 110.00 White, kilo 75.00 Vetiver Bourbon 62.00 Javanese 38.50 + Wintergreen 2.15 Ylang Ylang, extra 70.00- 92.00 PLASTICS Prices are dollars per pound, delivered in bulk rail shipments or truck load bags. Acetal Extrusion grd, t.l 2.63 Injection mold, std. grd. 2.49 ABS (acrylonitrile butadiene styrene) High impact, naturals t.l. 1.76- 1.98 Plating 1.89- 2.00 Pipe 1.48 Acrylic GP, clear 1.39- 1.70 Hi impact, std. grade 1.59- 1.76 Cellulosics Acetate 1.75- 1.78 Butyrate 1.82- 1.84 Propionate 1.72- 1.86 Fluoropolymers CTFE 30.00 ECTFE 15.80 FEP 12.25- 13.25 PTFE 6.60- 10.40 PVDF 6.00- 7.00 Ionomer resin, ind'l grds. 1.50- 2.25 Melamine crystal monomer,t.l .60 Melamine formaldehyde molding compound, white 1.08 colors, t.l. 1.15 Molding compounds Ignition resistant 1.05- 1.12 Nylon Nylon 6, GP 1.58- 1.69 Nylon 6,6 GP 1.73- 2.67 Mineral filled 1.42- 1.95 Nylon 612 2.78- 3.90 Phenolic resin, dry .75- 1.25 Polybutylene Film resin 1.04 General purpose 1.07- 1.13 Hot water pipe 3.00 Polycarbonate Compact Disc-grd, t.l. 2.89- 3.25 GP/Inj. mold., t.l. 2.62- 3.84 Polyesters: Thermoplastic PBT type: IM 2.06- 4.46 PET bottle resin .74- .83 Polyester: Thermoset Bis-A modified polyesters,tl 1.98- 2.08 GP ortho, bulk .75- .87 Isophthalic .95- 1.10 Polyethylene High Density Blow molding .33 Injection molding .31 Polyethylene Low Density Blow molding .42- .45 Extrusion coating .18- .43 Film quality/liner grade .37- .39 Injection molding .37- .39 Polyphenylene oxide 2.25- 2.46 Polypropylene GP homopolymer,Rcars .38- .42 Raffia ext.,dom.,Hcars .36- .40 Polystyrene,GP crys,RC .44- .47 High impact (HIPS) .45- .49 High heat crystal .40- .50 Polysulfone, std. grd. 4.40 10% glass 4.30- 6.06 20% glass 4.14- 5.53 30% glass 5.18- 5.31 Polyvinyl chloride (PVC resin) General purpose .33- .35 Specialty/Film .32- .35 Pipe .30 SAN, natural or crystone, Bags, t.l. 1.16 Cartons, t.l. 1.02- 1.13 Styrene monomer .32- .37 Vinyl acetate monomer .43- .45 Urea formaldelhyde, 37% methanol .20- .24 Urea formaldehyde molding compounds Black/brown .90 Colors 1.46 Ivory/white .95 SYNTHETIC TEXTILES Dollars per pound. CELLULOSIC FIBERS Acetate filament yarn 55 denier 2.10- 2.14 150 denier 1.90- 1.93 Acrylic staple 1.2-1.5 denier .83- 1.30 2 denier .82- 1.28 3 denier .90- 1.20 Rayon staple fiber 1.09- 1.11 NON-CELLULOSIC FIBERS Nylon Carpet staple, Branded 1.20- 1.60 PBI staple, fire resistant, 1.5 denier 73.25 Polyester Carpet staple .70- .77 Industrial staple .75- .88 Textile staple, 1.5 denier .75- .85 Tex. filament yarn,150 den .87- .90 CHEMICAL SPECIFICATIONS ACS/American Chemical Society AMP/American Melting Point ASTM/American Society for Testing & Materials Be/Baume c/s cut, sifted CP/chemically pure f/c fine cut FCC/Food Chemical Codex GP/general purpose GPF/General Purpose Furnace HAF/High Abrasion Furnace HCL/hydrochloride IM/injection molding NF/National Formulary PAN/polyacrylonitrile PET/polyethylene terephthalate SAN/styrene-acrylonitrile TDI/toluene di-isocyanate USP/United States Pharmacopeia WG/window glass WW/water-white CHEMICAL ABBREVIATIONS a/alpha agr./agriculture anhyd./anhydrous c.l./carload cwt./hundred weight deg./degree dist./distilled dlvd./delivered drms./drums flk./flake f.o.b./free on board gran./granular grd./grade or ground ind./industrial l/laevo m/meta o/ortho p/para pwd./powdered refd./refined soln./solution std./standard syn./synthetic t.c./tankcar tks./tanks t.l./truckload t.t./tanktruck t.w./tankwagon

CHEMICAL PRICES

<div class="phx-topic abstract-wrapper">While tariffs and the trade wars that could result are indeed a serious matter, the direct effects of potential US tariffs on Canada and Mexico on the North American intermodal market would be “relatively minor,” writes Larry Gross.</div>

While tariffs and the trade wars that could result are indeed a serious matter, the direct effects of potential US tariffs on Canada and Mexico on the North American intermodal market would be “relatively minor,” writes Larry Gross.

Feature image

<div class="phx-topic">A US trade war with Canada and Mexico has been averted, at least for now. It seems likely, however, that there will be more twists and turns as our trading partners try to figure out what exactly Donald Trump really wants to change in the United States-Mexico-Canada (USMCA) free trade deal – a deal that he, himself, negotiated and signed just six years ago. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5939886_0.1.jpg"></img></div>The large-scale implications of a failure to reach a new stasis have been written about extensively in recent days. In particular, the highly integrated auto industry would be in for a world of hurt. But what would the direct, near-term implications be for the North American intermodal sector? The perhaps surprising answer is that the direct effects would be relatively minor. The pie chart shows the relative importance of the two cross-border markets. Collectively, intermodal revenue moves that crossed either the Canadian or Mexican border in 2024 accounted for just 5.7% of total North American intermodal activity over the course of the year. However, even that relatively small percentage probably overstates the situation. In 2024, 747,000 intermodal revenue moves were made across the Canada-US border, representing 4.1% of the total for North America. But the vast majority (90%) of those containers were ISO containers. These were generally boxes that arrived in Canadian ports filled with goods from other nations that were then moved by the Canadian railroads from the port, across the border and into the US for delivery to the final destination. While these flows might be subject to tariffs involving the ultimate origin country (such as China), presumably they would not be subject to any tariffs aimed at Canada. However, to the limited extent that these boxes might carry US-originating/Canada bound cargo on the backhaul, there might be some minor impacts. That leaves just 75,000 revenue moves of domestic containers that crossed the Canada-US border in 2024, representing just 0.4% of total North American intermodal activity. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1d7258dd-b2bc-4f34-a4dd-dfb95809d6e4"></dynamic-object></div>The situation is entirely different on the Mexico-US border, which accounted for 1.6% of total intermodal activity in 2024. This traffic is 99% domestic containers, with only a trickle of ISO containers moving across by rail. Virtually all of this traffic would be subject to tariff impacts. By this calculation, less than 1.7% of North American intermodal activity would be directly subject to tariff impacts. Put another way, this works out to 3.9% of the intra-North America movements of domestic intermodal equipment. To be clear, none of this should be interpreted to mean that a (completely unnecessary) trade war wouldn’t matter. The knock-on effects would be severe, both domestically (think inflation) and in relations with our neighbors. Not to mention the impacts on our relations with the rest of the world, when it becomes clear that any signed agreement with the US can be blown up at any time with a tweet. But this does say that among the many impacts that may result from a trade war, the intermodal aspects pale in comparison. Contact Larry Gross at <a href="https://www.joc.com/article/lgross@intermodalindepth.com">lgross@intermodalindepth.com.</a></div>

A US trade war with Canada and Mexico has been averted, at least for now. It seems likely, however, that there will be more twists and turns as our trading partners try to figure out what exactly Donald Trump really wants to change in the United States-Mexico-Canada (USMCA) free trade deal – a deal that he, himself, negotiated and signed just six years ago. The large-scale implications of a failure to reach a new stasis have been written about extensively in recent days. In particular, the highly integrated auto industry would be in for a world of hurt. But what would the direct, near-term implications be for the North American intermodal sector? The perhaps surprising answer is that the direct effects would be relatively minor. The pie chart shows the relative importance of the two cross-border markets. Collectively, intermodal revenue moves that crossed either the Canadian or Mexican border in 2024 accounted for just 5.7% of total North American intermodal activity over the course of the year. However, even that relatively small percentage probably overstates the situation. In 2024, 747,000 intermodal revenue moves were made across the Canada-US border, representing 4.1% of the total for North America. But the vast majority (90%) of those containers were ISO containers. These were generally boxes that arrived in Canadian ports filled with goods from other nations that were then moved by the Canadian railroads from the port, across the border and into the US for delivery to the final destination. While these flows might be subject to tariffs involving the ultimate origin country (such as China), presumably they would not be subject to any tariffs aimed at Canada. However, to the limited extent that these boxes might carry US-originating/Canada bound cargo on the backhaul, there might be some minor impacts. That leaves just 75,000 revenue moves of domestic containers that crossed the Canada-US border in 2024, representing just 0.4% of total North American intermodal activity. The situation is entirely different on the Mexico-US border, which accounted for 1.6% of total intermodal activity in 2024. This traffic is 99% domestic containers, with only a trickle of ISO containers moving across by rail. Virtually all of this traffic would be subject to tariff impacts. By this calculation, less than 1.7% of North American intermodal activity would be directly subject to tariff impacts. Put another way, this works out to 3.9% of the intra-North America movements of domestic intermodal equipment. To be clear, none of this should be interpreted to mean that a (completely unnecessary) trade war wouldn’t matter. The knock-on effects would be severe, both domestically (think inflation) and in relations with our neighbors. Not to mention the impacts on our relations with the rest of the world, when it becomes clear that any signed agreement with the US can be blown up at any time with a tweet. But this does say that among the many impacts that may result from a trade war, the intermodal aspects pale in comparison. Contact Larry Gross at lgross@intermodalindepth.com.

Supply chain

North-American rail

Intermodal providers

Surface

North American intermodal would escape tariffs largely unscathed: analyst

<div class="phx-topic abstract-wrapper">Vincent Clerc says one reason for the delay is the liner’s extreme profitability since the pandemic, a reality he said was “taking a lot of the light” from its integrated logistics plans.</div>

Vincent Clerc says one reason for the delay is the liner’s extreme profitability since the pandemic, a reality he said was “taking a lot of the light” from its integrated logistics plans.

<div class="phx-topic">Maersk CEO Vincent Clerc is acknowledging that progress in reaching the targeted margins of the carrier’s integrated logistics strategy was “slower than expected,” which he attributed in part to the sheer ambition of the strategy. Clerc, speaking on Maersk’s 2024 earnings call Thursday, told analysts another reason for the delay in the carrier’s logistics unit achieving its pre-tax margin target of 6% was the liner’s extreme profitability in the volatile years since the pandemic, a reality he said was “taking a lot of the light.” “There are operational pains that come with growing at the scale that we need,” Clerc said. “It sounds easy to do M&amp;A, but there are a lot of difficulties. It sounds easy to go full organic, but there are also difficulties, and this is what we're getting on top of.” Clerc said COVID-19 also had a significant impact on global supply chains that dramatically inflated the carrier’s earnings. ”Because of the abnormally high profitability of ocean in the last five years and huge volatility in the market in general, the progress we have made in logistics and services is not really coming through,” he said. Still, Clerc defended the carrier’s integrated strategy despite the slow progress. “For us to continue the diversification and the development of capabilities for the long run in logistics makes more sense today than it did eight years ago when we started the strategy, and that that's why it continues to be our direction,” he told analysts. The Logistics and Services segment that underpins Maersk’s integrated strategy continues to grow revenue that in 2024 was up 7.2% year over year at $14.9 billion, with supply chain volume growing 17% to 120 million cubic meters. Yet even with a 20% increase in earnings before interest and taxes (EBIT) to $538 million, the segment’s EBIT margin of 3.6% was only a slight improvement on the 3.2% achieved in 2023. “The job for us is clear and simple: We must achieve profitable growth towards the 10% organic revenue growth and 6% margin targets that we have set,” Clerc said. <h3>Criticism of the unknowns </h3>Maersk set sail on its integrated strategy in 2017 and has been trying to pull in a greater share of shipper-direct volume with the aim of providing end-to-end control of customers’ cargo. It is a model that has <a href="https://www.joc.com/article/tpm24-industry-veteran-sees-little-value-in-ocean-carriers-integrating-logistics-services-5241059">drawn criticism from global forwarders</a> that regard their asset-light approach as better suited to the complexities of global trade. The carrier’s end-to-end strategy continues to come under scrutiny from investors despite <a href="https://www.joc.com/article/maersks-profitability-in-2025-hinges-on-return-to-red-sea-clerc-5939261">Maersk’s 2024 results</a> outperforming market expectations. An analyst from one of the global banks put it to Clerc during Thursday’s call that part of the problem facing Maersk was that investors did not know when the integrated strategy would be completed, what it would look like when completed and what investment would be required to get to that point. While Clerc said the investment case would be covered in detail during Maersk’s capital markets day in London in November, he reiterated his conviction that the carrier was on the right path. “If you look at the way the world is going with all the disruptions, and if you talk to any company that produces goods, these disruptions in the supply chain are going to make logistics an area where there is more value to add by supporting customers and being good at the job,” he told the analyst. “What we need is to get to the 6% margin target next year, because that means the foundational work, the hard stuff, is done and we have what it takes to accelerate the execution of this strategy,” Clerc added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Maersk CEO Vincent Clerc is acknowledging that progress in reaching the targeted margins of the carrier’s integrated logistics strategy was “slower than expected,” which he attributed in part to the sheer ambition of the strategy. Clerc, speaking on Maersk’s 2024 earnings call Thursday, told analysts another reason for the delay in the carrier’s logistics unit achieving its pre-tax margin target of 6% was the liner’s extreme profitability in the volatile years since the pandemic, a reality he said was “taking a lot of the light.” “There are operational pains that come with growing at the scale that we need,” Clerc said. “It sounds easy to do M&A, but there are a lot of difficulties. It sounds easy to go full organic, but there are also difficulties, and this is what we're getting on top of.” Clerc said COVID-19 also had a significant impact on global supply chains that dramatically inflated the carrier’s earnings. ”Because of the abnormally high profitability of ocean in the last five years and huge volatility in the market in general, the progress we have made in logistics and services is not really coming through,” he said. Still, Clerc defended the carrier’s integrated strategy despite the slow progress. “For us to continue the diversification and the development of capabilities for the long run in logistics makes more sense today than it did eight years ago when we started the strategy, and that that's why it continues to be our direction,” he told analysts. The Logistics and Services segment that underpins Maersk’s integrated strategy continues to grow revenue that in 2024 was up 7.2% year over year at $14.9 billion, with supply chain volume growing 17% to 120 million cubic meters. Yet even with a 20% increase in earnings before interest and taxes (EBIT) to $538 million, the segment’s EBIT margin of 3.6% was only a slight improvement on the 3.2% achieved in 2023. “The job for us is clear and simple: We must achieve profitable growth towards the 10% organic revenue growth and 6% margin targets that we have set,” Clerc said. Criticism of the unknowns Maersk set sail on its integrated strategy in 2017 and has been trying to pull in a greater share of shipper-direct volume with the aim of providing end-to-end control of customers’ cargo. It is a model that has drawn criticism from global forwarders that regard their asset-light approach as better suited to the complexities of global trade. The carrier’s end-to-end strategy continues to come under scrutiny from investors despite Maersk’s 2024 results outperforming market expectations. An analyst from one of the global banks put it to Clerc during Thursday’s call that part of the problem facing Maersk was that investors did not know when the integrated strategy would be completed, what it would look like when completed and what investment would be required to get to that point. While Clerc said the investment case would be covered in detail during Maersk’s capital markets day in London in November, he reiterated his conviction that the carrier was on the right path. “If you look at the way the world is going with all the disruptions, and if you talk to any company that produces goods, these disruptions in the supply chain are going to make logistics an area where there is more value to add by supporting customers and being good at the job,” he told the analyst. “What we need is to get to the 6% margin target next year, because that means the foundational work, the hard stuff, is done and we have what it takes to accelerate the execution of this strategy,” Clerc added. Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Container lines

Forwarding

Maritime

Maersk CEO defends carrier’s slow progress hitting end-to-end strategy targets

<div class="phx-topic abstract-wrapper">The proposed Edgemoor container terminal was slated for groundbreaking in January, but the project timeline is now uncertain after a federal judge ruled its permit was unlawful in a case brought by the nearby Port of Philadelphia. </div>

The proposed Edgemoor container terminal was slated for groundbreaking in January, but the project timeline is now uncertain after a federal judge ruled its permit was unlawful in a case brought by the nearby Port of Philadelphia.

<div class="phx-topic">Delaware’s port authority is reaffirming support for developing a container terminal near the Port of Wilmington despite a delayed groundbreaking caused by a lawsuit brought by the nearby Port of Philadelphia. The delay for the proposed Edgemoor project also comes amid political turmoil over the port’s leadership. The Diamond State Port Corporation (DSPC) said in a statement this week to the Journal of Commerce that it “intend[s] to move forward with Edgemoor’s groundbreaking as quickly as possible.” Edgemoor, <a href="https://www.joc.com/article/public-private-backing-pushes-delawares-edgemoor-terminal-project-forward-5234283">a 1-million-TEU facility planned for a former chemical factory along the Delaware River</a>, was expected to begin dredging in January, but that has been “pushed back” six to eight months, William Ashe, a nominee to Diamond State’s board of directors, told a state senate confirmation hearing last week. Ashe said the delay was due to a case filed in Pennsylvania and was “not about anyone in Delaware.” “It’s an out-of-state group that knows we would be direct competition and tries to stop the state of Delaware from growing,” he said. The Philadelphia Port Authority (PhilaPort) filed a lawsuit last year that challenged the permit issued for Edgemoor by the US Army Corps of Engineers. Last month, PhilaPort agreed to dismiss its suit against the Corps after a federal judge ruled in favor of PhilaPort’s case. PhilaPort, about 30 miles upriver from the Edgemoor site, contested the Corps’ approval of Edgemoor’s permit. It argued the Corps did not do a proper economic study of the impact Edgemoor would have on Philadelphia, which contributed $140 million toward deepening the Delaware River to the 45-foot depth needed for neo-Panamax ships to call Edgemoor. PhilaPort argued that the Corps did not study the impact on the port of the estimated 244 ships that would call Edgemoor. Ships using Edgemoor’s turning basin could potentially block the Delaware River’s main shipping channel, PhilaPort claimed. DSPC, which applied for the permit, did not outline the changes it might make to its turning basin when reapplying for a permit. But it said it does not anticipate any design changes that would affect Edgemoor’s capacity. “The DSPC is committed to working with the Army Corps to address any permit concerns,” it said. <h3>Governor, state senate at odds </h3>Ashe, a member of the International Longshoremen’s Association (ILA), was among four nominees to DSPC’s board to appear before the Delaware state senate. They were picked by Bethany Hall-Long, the former lieutenant governor who served as governor from Jan. 7-21, the remaining two weeks of the term of previous governor John Carney, who stepped down to take office as mayor of Wilmington. However, Delaware’s new Gov. Mark Meyer sent a letter to the senate committee charged with DSPC’s oversight withdrawing those four nominations about a week before the hearing. Even so, Delaware Sen. Dave Sokola, who led last week’s hearing, said at the time the confirmation process would proceed because the hearing was already scheduled. Sokola added that Meyer had not put forward any director nominations to DSPC and only provided legal justification for withdrawing the previous nominations one day before the scheduled confirmation hearing. “The delay in the governor’s outreach to us until after the nominees were scheduled for their hearing is regrettable and I believe a little manipulative,” Sokola said during the hearing. The senate committee confirmed all four nominees, although it’s not clear when and whether they will take their seats. Four of Meyer’s cabinet secretaries have positions on the board by default. The DSPC did not provide a comment on the nominations. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Delaware’s port authority is reaffirming support for developing a container terminal near the Port of Wilmington despite a delayed groundbreaking caused by a lawsuit brought by the nearby Port of Philadelphia. The delay for the proposed Edgemoor project also comes amid political turmoil over the port’s leadership. The Diamond State Port Corporation (DSPC) said in a statement this week to the Journal of Commerce that it “intend[s] to move forward with Edgemoor’s groundbreaking as quickly as possible.” Edgemoor, a 1-million-TEU facility planned for a former chemical factory along the Delaware River , was expected to begin dredging in January, but that has been “pushed back” six to eight months, William Ashe, a nominee to Diamond State’s board of directors, told a state senate confirmation hearing last week. Ashe said the delay was due to a case filed in Pennsylvania and was “not about anyone in Delaware.” “It’s an out-of-state group that knows we would be direct competition and tries to stop the state of Delaware from growing,” he said. The Philadelphia Port Authority (PhilaPort) filed a lawsuit last year that challenged the permit issued for Edgemoor by the US Army Corps of Engineers. Last month, PhilaPort agreed to dismiss its suit against the Corps after a federal judge ruled in favor of PhilaPort’s case. PhilaPort, about 30 miles upriver from the Edgemoor site, contested the Corps’ approval of Edgemoor’s permit. It argued the Corps did not do a proper economic study of the impact Edgemoor would have on Philadelphia, which contributed $140 million toward deepening the Delaware River to the 45-foot depth needed for neo-Panamax ships to call Edgemoor. PhilaPort argued that the Corps did not study the impact on the port of the estimated 244 ships that would call Edgemoor. Ships using Edgemoor’s turning basin could potentially block the Delaware River’s main shipping channel, PhilaPort claimed. DSPC, which applied for the permit, did not outline the changes it might make to its turning basin when reapplying for a permit. But it said it does not anticipate any design changes that would affect Edgemoor’s capacity. “The DSPC is committed to working with the Army Corps to address any permit concerns,” it said. Governor, state senate at odds Ashe, a member of the International Longshoremen’s Association (ILA), was among four nominees to DSPC’s board to appear before the Delaware state senate. They were picked by Bethany Hall-Long, the former lieutenant governor who served as governor from Jan. 7-21, the remaining two weeks of the term of previous governor John Carney, who stepped down to take office as mayor of Wilmington. However, Delaware’s new Gov. Mark Meyer sent a letter to the senate committee charged with DSPC’s oversight withdrawing those four nominations about a week before the hearing. Even so, Delaware Sen. Dave Sokola, who led last week’s hearing, said at the time the confirmation process would proceed because the hearing was already scheduled. Sokola added that Meyer had not put forward any director nominations to DSPC and only provided legal justification for withdrawing the previous nominations one day before the scheduled confirmation hearing. “The delay in the governor’s outreach to us until after the nominees were scheduled for their hearing is regrettable and I believe a little manipulative,” Sokola said during the hearing. The senate committee confirmed all four nominees, although it’s not clear when and whether they will take their seats. Four of Meyer’s cabinet secretaries have positions on the board by default. The DSPC did not provide a comment on the nominations. Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

Marine terminals

North American ports

Delaware port still backing Edgemoor plans even after lawsuit cancels permit

<div class="phx-topic abstract-wrapper">Investment in wind power and air lubrication gives multipurpose vessel operators an extra shot at compliance with the FuelEU emissions rules.</div>

Investment in wind power and air lubrication gives multipurpose vessel operators an extra shot at compliance with the FuelEU emissions rules.

<div class="phx-topic">Tighter European emissions regulations have pushed multipurpose ship operators toward alternative propulsion technologies to achieve compliance. MOL Drybulk and Jumbo Maritime are the latest multipurpose vessel (MPV) operators to install power assistance technologies to improve fuel efficiency and cut greenhouse gas (GHG) emissions.MOL Drybulk took delivery of the 17,611-deadweight-metric-ton (dwt) Prima Verde on Jan. 30, equipped with two VentoFoil wind power-assisted sails supplied by Netherlands-headquartered Econowind. The move is part of wider plans by parent Mitsui OSK Lines to have more than 25 vessels equipped with wind propulsion equipment by 2030 and 80 ships by 2035 to help meet its goal of net-zero greenhouse gas (GHG) emissions by 2050, the company said.MOL said the ship is unique because it is the first vessel that can run exclusively on marine gas oil (MGO) with a wind assistance ship propulsion (WASP) system, and it has been built using green steel.Separately, Jumbo Maritime retrofitted the installation of two Econowind VentoFoils on the 13,000-dwt heavy-lift vessel Jumbo Jubilee in October as its latest initiative to apply multiple fuel-saving solutions to a single vessel. Jumbo Jubilee had already been equipped with an AI-powered anti-fouling monitoring system and an eco-control system to assess vessel efficiency, the company said.Jumbo said the equipment is also transferrable between vessels.“While not fully optimized for our vessel type, these sails will help us to gather valuable insights on real-world fuel savings and explore further optimizations that will allow Jumbo to reduce its environmental footprint even more,” Andres Cassanova, Jumbo’s technical manager, said in a statement.<h3>Auxiliary systems aid regulatory compliance</h3>European Union fuel and emissions regulations are driving interest in auxiliary propulsion equipment, especially wind and air lubrication-based systems, maritime executives said. Econowind said wind power systems help carriers comply with both the EU’s Emissions Trading Scheme (ETS) and its FuelEU Maritime regulation.For ETS alone, Econowind estimated wind assistance systems would slash carriers’ allowances by 15%, saving on carbon-related expenses. Econowind also forecast that WASP would achieve a 5% reduction in GHG intensity under FuelEU regulations that came into force in January, ensuring carriers avoid penalties and unlocking potential rewards for exceeding compliance standards.Gavin Allwright, secretary-general of the International Windship Association, said there were 48 large ocean-going vessels, equivalent to 3 million dwt, equipped with wind-assist systems at the end of last year. There were also 33 vessels that were either wind-ready or awaiting equipment installations, including ships that use wind as their primary propulsion source, he said.Those include Neoliner Origin, the world’s first commercial sailing roll-on/roll-off (ro/ro) vessel that was launched on Jan. 29 at the Turkish shipyard RMK Marine for French operator Neoline. The 446-foot-long ship, with more than 32,000 square feet of sail, has almost 4,000 feet of deck space capable of carrying 265 20-foot containers or up to 5,300 metric tons, Neoline said.Similarly, air lubrication system (ALS) installer Silverstream Technologies said there is growing appetite among carriers to fit ALS technologies to meet decarbonization goals. Lubrication systems blow a carpet of bubbles along the underside of the hull to reduce friction and improve fuel economy.The London-headquartered company said it has orders for more than 240 ships, including a series of pure car and truck carriers (PCTCs) for Italy’s Grimaldi Lines that will be Silverstream’s first air lubrication system installations on PCTCs.“Air lubrication systems are highly applicable to the MPV and deck carrier segment,” Silverstream Sales Director Gilberto Zambrini told the Journal of Commerce. “This is due to their low draught and operating patterns, which generally see these vessels travel long distances. As a result, Silverstream is seeing market interest within this space.”<h3>Slow uptake so far for propulsion enhancements </h3>Both WASP and ALS have had a relatively low adoption rate since the technologies were introduced about 15 years ago.The 9,820-dwt multipurpose vessel Beluga Skysails, since renamed Onego Deusto, was the first modern wind-assisted ship when it was delivered in December 2007 with a bow-mounted sail that could be raised and lowered similar to a parachute to harness the wind.Japan’s NYK Lines was the first carrier to adopt air lubrication, installing a system on the 2010-built 19,812-dwt heavy deck carrier Yamatai, Daisuke Takahashi, manager at NYK Bulk &amp; Projects Carriers, told the Journal of Commerce. A similar system was installed on a sister ship, Yamato, that was delivered in 2020, he added.Takahashi said two years of trials to test the most effective thickness of the bubble layer and how to make the release of air uniform along the breadth of the vessel resulted in 6% fuel savings. But since Yamatai began operating, fuel savings have actually been between 3% and 5%, he said.“There are lessons to be learned and improvements to be made from 14 years of operations for the future vessels,” Takahashi said.Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Tighter European emissions regulations have pushed multipurpose ship operators toward alternative propulsion technologies to achieve compliance. MOL Drybulk and Jumbo Maritime are the latest multipurpose vessel (MPV) operators to install power assistance technologies to improve fuel efficiency and cut greenhouse gas (GHG) emissions. MOL Drybulk took delivery of the 17,611-deadweight-metric-ton (dwt) Prima Verde on Jan. 30, equipped with two VentoFoil wind power-assisted sails supplied by Netherlands-headquartered Econowind. The move is part of wider plans by parent Mitsui OSK Lines to have more than 25 vessels equipped with wind propulsion equipment by 2030 and 80 ships by 2035 to help meet its goal of net-zero greenhouse gas (GHG) emissions by 2050, the company said. MOL said the ship is unique because it is the first vessel that can run exclusively on marine gas oil (MGO) with a wind assistance ship propulsion (WASP) system, and it has been built using green steel. Separately, Jumbo Maritime retrofitted the installation of two Econowind VentoFoils on the 13,000-dwt heavy-lift vessel Jumbo Jubilee in October as its latest initiative to apply multiple fuel-saving solutions to a single vessel. Jumbo Jubilee had already been equipped with an AI-powered anti-fouling monitoring system and an eco-control system to assess vessel efficiency, the company said. Jumbo said the equipment is also transferrable between vessels. “While not fully optimized for our vessel type, these sails will help us to gather valuable insights on real-world fuel savings and explore further optimizations that will allow Jumbo to reduce its environmental footprint even more,” Andres Cassanova, Jumbo’s technical manager, said in a statement. Auxiliary systems aid regulatory compliance European Union fuel and emissions regulations are driving interest in auxiliary propulsion equipment, especially wind and air lubrication-based systems, maritime executives said. Econowind said wind power systems help carriers comply with both the EU’s Emissions Trading Scheme (ETS) and its FuelEU Maritime regulation. For ETS alone, Econowind estimated wind assistance systems would slash carriers’ allowances by 15%, saving on carbon-related expenses. Econowind also forecast that WASP would achieve a 5% reduction in GHG intensity under FuelEU regulations that came into force in January, ensuring carriers avoid penalties and unlocking potential rewards for exceeding compliance standards. Gavin Allwright, secretary-general of the International Windship Association, said there were 48 large ocean-going vessels, equivalent to 3 million dwt, equipped with wind-assist systems at the end of last year. There were also 33 vessels that were either wind-ready or awaiting equipment installations, including ships that use wind as their primary propulsion source, he said. Those include Neoliner Origin, the world’s first commercial sailing roll-on/roll-off (ro/ro) vessel that was launched on Jan. 29 at the Turkish shipyard RMK Marine for French operator Neoline. The 446-foot-long ship, with more than 32,000 square feet of sail, has almost 4,000 feet of deck space capable of carrying 265 20-foot containers or up to 5,300 metric tons, Neoline said. Similarly, air lubrication system (ALS) installer Silverstream Technologies said there is growing appetite among carriers to fit ALS technologies to meet decarbonization goals. Lubrication systems blow a carpet of bubbles along the underside of the hull to reduce friction and improve fuel economy. The London-headquartered company said it has orders for more than 240 ships, including a series of pure car and truck carriers (PCTCs) for Italy’s Grimaldi Lines that will be Silverstream’s first air lubrication system installations on PCTCs. “Air lubrication systems are highly applicable to the MPV and deck carrier segment,” Silverstream Sales Director Gilberto Zambrini told the Journal of Commerce. “This is due to their low draught and operating patterns, which generally see these vessels travel long distances. As a result, Silverstream is seeing market interest within this space.” Slow uptake so far for propulsion enhancements Both WASP and ALS have had a relatively low adoption rate since the technologies were introduced about 15 years ago. The 9,820-dwt multipurpose vessel Beluga Skysails, since renamed Onego Deusto, was the first modern wind-assisted ship when it was delivered in December 2007 with a bow-mounted sail that could be raised and lowered similar to a parachute to harness the wind. Japan’s NYK Lines was the first carrier to adopt air lubrication, installing a system on the 2010-built 19,812-dwt heavy deck carrier Yamatai, Daisuke Takahashi, manager at NYK Bulk & Projects Carriers, told the Journal of Commerce. A similar system was installed on a sister ship, Yamato, that was delivered in 2020, he added. Takahashi said two years of trials to test the most effective thickness of the bubble layer and how to make the release of air uniform along the breadth of the vessel resulted in 6% fuel savings. But since Yamatai began operating, fuel savings have actually been between 3% and 5%, he said. “There are lessons to be learned and improvements to be made from 14 years of operations for the future vessels,” Takahashi said. Contact Keith Wallis at keithwallis@hotmail.com .

Breakbulk carriers

Project cargo

Breakbulk News

MPVs turn to unconventional propulsion to beat European fuel regulations

<div class="phx-topic abstract-wrapper">The third-most-profitable year in the carrier’s history could be followed by a breakeven result if voyages through the Red Sea resume before the end of the year, the CEO told analysts Thursday.</div>

The third-most-profitable year in the carrier’s history could be followed by a breakeven result if voyages through the Red Sea resume before the end of the year, the CEO told analysts Thursday.

<div class="phx-topic">Maersk’s profitability in 2025 depends on when shipping can resume regular transits through the Red Sea and Suez Canal, with the timing of such a return the difference between breaking even this year or making pre-tax profits as high as $3 billion, CEO Vincent Clerc said Thursday. Clerc told analysts during the carrier’s 2024 earnings call that the Red Sea introduced a significant variable into its forecast for earnings before interest and taxes (EBIT) for the year. “The low end of the range [$0] assumes a mid-year reopening of the Red Sea, while the high end [$3 billion] represents a year-end opening,” he said. The enormous financial benefit to ocean carriers of diverting ships around southern Africa propelled Maersk to its third-most-profitable year in history, with flat volume growth offset by rates that remained significantly elevated compared with 2023. Revenue in 2024 rose 8.6% year over year to $55.5 billion, while earnings before interest, taxes, amortization and depreciation (EBITDA) were up 26% at $12.1 billion. EBIT increased 65% to $6.5 billion and net profit for the year rose 69% to $6.2 billion. Last year’s volume rose 3.6% year over year to 12.3 million FEUs, while the average rate of $2,698 per FEU increased almost 17%, primarily a result of the capacity absorbed by the Red Sea diversions that pushed vessel utilization for the year to 96%. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ad11e706-10a7-40b1-9b70-90cb139fd6c6"></dynamic-object></div>Despite the potential for the resumption of Red Sea voyages to drag down the carrier’s pre-tax profitability to breakeven growth this year, Clerc played down that eventuality, telling analysts that the excess capacity outlook was now “more nuanced and benign” than before the Houthi attacks on shipping began in late 2023. “The supply-demand imbalance that we could have seen in 2024 has likely been pushed back to 2025,” he said, highlighting the potential market drivers that could affect that balance. New ships being delivered this year could increase global capacity by 2 million TEUs, while a resumption of Red Sea transits would release between 1.5 million TEUs and 2 million TEUs back into the market, Clerc noted. However, increased scrapping, idling of ships and slow-steaming could remove up to 2 million TEUs, while the 4% growth in demand Maersk expects this year could absorb an additional 1.5 million TEUs. <h3>Carriers need safety guarantees </h3>While some carriers have been sending ad hoc sailings through the Red Sea, it remains highly uncertain when the route will be safe enough for a wholesale return of container shipping. Clerc laid out his conditions for Maersk’s resumption of Red Sea voyages that would revolve around a guarantee of safe passage for seamen, ships and cargo. “You need to look at the situation on the ground and say, ‘are the Houthis either no longer capable or whatever gives them the willingness to attack is no longer,’” he said. “It’s either a full degradation of [Houthi militant] capabilities, or there is some type of permanent deal on Gaza and permanent deal between the US administration and Iran that takes away the incentive for [the Houthis] to do something, and then I think it will be safe for us to go back,” he added. Clerc also outlined the cost of returning too soon to the Red Sea and then being forced to move back to diverting ships around Africa. “There is a lot of work and money involved in redoing the network, the berthing lineups in the US, in Europe and in the Mediterranean,” he said. “I need to be sure that it’s not only safe the first time but will be safe for the foreseeable future. “If it’s not, and I risk flipping back three months, six months, even a year later to the Cape of Good Hope, that’s hundreds of millions of dollars of cost to us and huge disruption for our customers,” Clerc added. “Customers are all eager to go back, but they have a caveat: We don’t want to flip flop back and forth.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Maersk’s profitability in 2025 depends on when shipping can resume regular transits through the Red Sea and Suez Canal, with the timing of such a return the difference between breaking even this year or making pre-tax profits as high as $3 billion, CEO Vincent Clerc said Thursday. Clerc told analysts during the carrier’s 2024 earnings call that the Red Sea introduced a significant variable into its forecast for earnings before interest and taxes (EBIT) for the year. “The low end of the range [$0] assumes a mid-year reopening of the Red Sea, while the high end [$3 billion] represents a year-end opening,” he said. The enormous financial benefit to ocean carriers of diverting ships around southern Africa propelled Maersk to its third-most-profitable year in history, with flat volume growth offset by rates that remained significantly elevated compared with 2023. Revenue in 2024 rose 8.6% year over year to $55.5 billion, while earnings before interest, taxes, amortization and depreciation (EBITDA) were up 26% at $12.1 billion. EBIT increased 65% to $6.5 billion and net profit for the year rose 69% to $6.2 billion. Last year’s volume rose 3.6% year over year to 12.3 million FEUs, while the average rate of $2,698 per FEU increased almost 17%, primarily a result of the capacity absorbed by the Red Sea diversions that pushed vessel utilization for the year to 96%. Despite the potential for the resumption of Red Sea voyages to drag down the carrier’s pre-tax profitability to breakeven growth this year, Clerc played down that eventuality, telling analysts that the excess capacity outlook was now “more nuanced and benign” than before the Houthi attacks on shipping began in late 2023. “The supply-demand imbalance that we could have seen in 2024 has likely been pushed back to 2025,” he said, highlighting the potential market drivers that could affect that balance. New ships being delivered this year could increase global capacity by 2 million TEUs, while a resumption of Red Sea transits would release between 1.5 million TEUs and 2 million TEUs back into the market, Clerc noted. However, increased scrapping, idling of ships and slow-steaming could remove up to 2 million TEUs, while the 4% growth in demand Maersk expects this year could absorb an additional 1.5 million TEUs. Carriers need safety guarantees While some carriers have been sending ad hoc sailings through the Red Sea, it remains highly uncertain when the route will be safe enough for a wholesale return of container shipping. Clerc laid out his conditions for Maersk’s resumption of Red Sea voyages that would revolve around a guarantee of safe passage for seamen, ships and cargo. “You need to look at the situation on the ground and say, ‘are the Houthis either no longer capable or whatever gives them the willingness to attack is no longer,’” he said. “It’s either a full degradation of [Houthi militant] capabilities, or there is some type of permanent deal on Gaza and permanent deal between the US administration and Iran that takes away the incentive for [the Houthis] to do something, and then I think it will be safe for us to go back,” he added. Clerc also outlined the cost of returning too soon to the Red Sea and then being forced to move back to diverting ships around Africa. “There is a lot of work and money involved in redoing the network, the berthing lineups in the US, in Europe and in the Mediterranean,” he said. “I need to be sure that it’s not only safe the first time but will be safe for the foreseeable future. “If it’s not, and I risk flipping back three months, six months, even a year later to the Cape of Good Hope, that’s hundreds of millions of dollars of cost to us and huge disruption for our customers,” Clerc added. “Customers are all eager to go back, but they have a caveat: We don’t want to flip flop back and forth.” Contact Greg Knowler at greg.knowler@spglobal.com .

Maersk’s profitability in 2025 hinges on return to Red Sea: Clerc

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Choose a subscription plan that works best for you.

Subscribe Now - Anonymous - Wide Box

SUBSCRIBE TODAY

Use code STSW20 at checkout and save 20% on first year of any annual subscription plan.

Subscribe Now - Free Trials - Wide Box

SUBSCRIBE AND SAVE

Register today to redeem your Gold subscriber discount!

TPM Discount - Gold

Save 20% on TPM25

Use code GUW795 at checkout and save $700 on first year of a Gold subscription. 

Upgrade Subscription - Wide Box

UPGRADE TODAY AND SAVE

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

SMC3rates_shutterstock_5247046.jpg

Shippers save money, time with automated transportation bidding tools

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

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

UPGRADE AND SAVE: Use code GUW795 at checkout and save $700 on first year of a Gold subscription. 

Upgrade Subscription - Offer Box

Upgrade Subscription

20% OFF ON TPM25: Register today and redeem your Gold subscriber discount!

TPM Discount - Gold 

20% OFF ON TPM25

SUBSCRIBE TODAY: Choose a subscription plan that works best for you.

Subscribe Now - Anonymous - Offer Box

Subscribe Today

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

SUBSCRIBE AND SAVE: Use code STSW20 at checkout to save 20% on first year of any subscription plan.


Subscribe Now - Free Trials - Offer Box

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk25

The premier conference for the global container shipping and supply chain community

Latest News

More News & Analysis

North American intermodal would escape tariffs largely unscathed: analyst

Maersk CEO defends carrier’s slow progress hitting end-to-end strategy targets

Delaware port still backing Edgemoor plans even after lawsuit cancels permit