<div class="phx-topic abstract-wrapper">The announcement this week by CMA CGM that it will share slots on China Ocean Shipping Company’s trans-Pacific service from Asia to Prince Rupert, Canada, caps off one of the more eventful years in the short history of the port’s container operations.
 
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The announcement this week by CMA CGM that it will share slots on China Ocean Shipping Company’s trans-Pacific service from Asia to Prince Rupert, Canada, caps off one of the more eventful years in the short history of the port’s container operations.

<div>The announcement this week by CMA CGM that it will share slots on China Ocean Shipping Company’s trans-Pacific service from Asia to Prince Rupert, Canada, caps off one of the more eventful years in the short history of the port’s container operations.In that span, the port in British Columbia, Canada, launched an expansion project, gained a major service and made steps to prepare for another expansion. Attracting more U.S.-bound cargo has driven cargo up up 31 percent year-over-year in the first 10 months of 2015. The growth is due partly to diversion of cargo from U.S. West Coast ports, but...

The announcement this week by CMA CGM that it will share slots on China Ocean Shipping Company’s trans-Pacific service from Asia to Prince Rupert, Canada, caps off one of the more eventful years in the short history of the port’s container operations. In that span, the port in British Columbia, Canada, launched an expansion project, gained a major service and made steps to prepare for another expansion. Attracting more U.S.-bound cargo has driven cargo up up 31 percent year-over-year in the first 10 months of 2015. The growth is due partly to diversion of cargo from U.S. West Coast ports, but also because of the port’s rapid transit times from Asia to the U.S. Midwest via Canadian National Railway services. In recent months Prince Rupert broke ground on an expansion project that will add a second berth at the north end of its Fairview container terminal. When completed in mid-2017, the project will increase the port’s throughput capacity to 1.3 million 20-foot container units from its current capacity of 850,000 TEUs. Last month, a new trans-Pacific service by the 2M alliance of Maersk Line and Mediterranean Shipping Co. was launched. This development was significant because it marked the first service with vessels operated by a line other than Cosco and Hanjin Shipping Co. Those lines also have slot arrangements with their partners in the CKYHE alliance. Additionally, Prince Rupert this year received the necessary permits for a southern expansion of the port. Don Krusel, president and CEO, said plans for this expansion project have not been finalized, but it could include construction of a third container berth, extension of the on-dock rail yard and additional container storage space. The southern expansion would increase annual throughput capacity to 2.4 million TEUs. Prince Rupert, located about 500 miles north of Vancouver on Canada’s Pacific coast, has handled a variety of cargoes for more than 100 years, but its Fairview container terminal just turned eight years old. The Maersk service was launched on Oct. 2, providing Prince Rupert with its first service by the world’s largest container line. CMA CGM is taking slots on Cosco’s existing Northwest Express service from Central and North China, so the French carrier is not bringing in its own ships or starting a new service. Nevertheless, CMA’s presence adds another carrier to the port’s portfolio, which is one more indication that Prince Rupert is solidifying its role as a major gateway on North America’s Pacific coast. “We’re feeling quite excited about this,” Krusel said. Prince Rupert has four weekly trans-Pacific services -- two with Cosco vessels, a Hanjin service and the 2M service. The port this year is on track to handle about 800,000 TEUs. That will bring it dangerously close to its existing capacity of 850,000, but Krusel said there is no indication of the type of congestion problems that marine terminals often experience as they approach design capacity. The rule of thumb in the port industry is that when a terminal exceeds 80 percent of capacity, service begins to deteriorate. Prince Rupert has been flying high this past year due to the diversion of cargo from U.S. West Coast ports that accompanied contract negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association, and the severe port congestion that resulted. In October, total container volume in Prince Rupert was 45.8 percent higher than in October 2014. In the first 10 months of 2015, container volume is 31 percent higher than during the same period last year. The entire West Coast experienced a loss of market share to East and Gulf Coast ports earlier in the year, but since summer much of the diverted business has been recovered. Jon Slangerup, chief executive of the Port of Long Beach, told West Coast freight forwarders and customs brokers meeting in Palm Springs last month that shipments destined for the interior U.S. are returning to the West Coast because larger importers were each spending millions of dollars more in transportation costs to divert cargo through East and Gulf Coast ports. That is not the case with Prince Rupert, however. Krusel said there has been virtually no migration of cargo back to the U.S. ports this fall. The reason, he said, is Prince Rupert’s value proposition, which is that steaming time is a day or two shorter from North Asia than U.S. West Coast ports, and Prince Rupert offers two intermodal unit train arrivals and departures each day to Chicago and beyond. CN has direct service from Prince Rupert to Chicago, Memphis and on to New Orleans, and interline service to destinations east of Chicago. CN prices its services aggressively. Railroads consider pricing information to be proprietary, but CN reportedly undercuts the Union Pacific and BNSF roads by $300 to $400 per container to Chicago. That is one of the reasons why Prince Rupert has increased its market share of Pacific Northwest cargo at the expense of the Seattle-Tacoma Northwest Seaport Alliance. The northern expansion project at Prince Rupert should be completed by mid-2017, but the first phase will come on line next year. With the added capacity, Prince Rupert would be able to accommodate another service next year, Krusel said. Contact Bill Mongelluzzo at bill.mongelluzzo@ihs.com and follow him on Twitter: @billmongelluzzo

International ports

CMA CGM gains slots to Prince Rupert, capping busy year for port

<div class="phx-topic abstract-wrapper">The Port of Los Angeles took the top spot for containerized imports in 2024 and edged out Houston and Savannah as the busiest gateway for exports.</div>

The Port of Los Angeles took the top spot for containerized imports in 2024 and edged out Houston and Savannah as the busiest gateway for exports.

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US West Coast ports regained some North American import market share last year, in part driven by labor uncertainty at ports along the East and Gulf coasts that encouraged some shippers to shift their cargo to Pacific gateways. The Port of Los Angeles maintained its position as the number one port for North Americans imports, with 15.5% of the total market share — up from 14.7% in 2023, according to PIERS, a sister product of the Journal of Commerce within S&P Global. The Port of Long Beach edged out the Port of New York and New Jersey to secure the second-largest market share for North American imports last year, returning to second place with 13.7% after two years of slipping to third. Los Angeles brought in 5.35 million TEUs in imports last year, up 20.6% compared to 2023. Similarly, Long Beach increased import volumes 24.4% to 4.72 million TEUs. Volumes at New York-New Jersey rose 11.2% to 4.43 million TEUs. Overall, ports on the West Coast secured 49.8% of North American import share last year, up from 47.8% in 2023. The East Coast saw its share dip to 38.1% from 40.6% the year prior, while the Gulf Coast trimmed just under half a percentage point to 9%. Overall, North American imports reached 34.57 million TEUs in 2024, up 14.3% year on year. Los Angeles tops in exports, too Meanwhile, the 2024 export market also showed some notable shifts in market share. Los Angeles climbed into the top spot for outbound containers, moving out 1.49 million TEUs, or 10.1% of the total market share, according to PIERS. That’s the largest export market share of any North American port since at least 2019. The Port of Houston, which tied Savannah for first place in exports in 2023, secured the second spot with 1.42 million TEUs, or 9.65%, in 2024. Savannah slipped to third with 1.37 million TEUs, or 9.3% of the total export market. The ports of New York-New Jersey and Long Beach took the fourth and fifth slots, respectively, with NY-NJ securing a 9.2% share of the export market and Long Beach 8.2%. The export market share held by Atlantic ports moved down to 45.6% last year from 47.9% in 2023, while West Coast ports secured 35.5% of outgoing shipments, up slightly from 35% in 2023. Gulf Coast ports moved 15.8% of 2024 exports, down from 16.1% in 2023. In total, North American exports reached 14.76 million TEUs in 2024, up 3.5% from 2023. Contact Laura Robb at laura.robb@spglobal.com .Journal of Commerce Top 25 North American Container Ports by Imports Annual containerized imports, in laden TEUs Volume Market Share 2024 Rank Port Coast 2023 2024 2023 2024 1 Los Angeles West 4,441,330 5,356,680 14.7% 15.5% 2 Long Beach West 3,804,356 4,729,552 12.6% 13.7% 3 New York-New Jersey East 3,990,107 4,438,854 13.2% 12.8% 4 Savannah East 2,402,328 2,739,628 7.9% 7.9% 5 Houston Gulf 1,746,381 1,888,853 5.8% 5.5% 6 Vancouver, BC West 1,601,919 1,821,755 5.3% 5.3% 7 Manzanillo West 1,486,642 1,698,437 4.9% 4.9% 8 Virginia East 1,398,872 1,543,471 4.6% 4.5% 9 Northwest Seaport Alliance1 West 1,078,005 1,289,198 3.6% 3.7% 10 Charleston East 1,220,386 1,245,723 4.0% 3.6% 11 Oakland West 800,432 937,538 2.6% 2.7% 12 Lazaro Cardenas West 660,314 760,195 2.2% 2.2% 13 Montreal2 East 759,353 750,466 2.5% 2.2% 14 Veracruz Gulf 513,827 606,852 1.7% 1.8% 15 Miami East 513,075 513,209 1.7% 1.5% 16 Philadelphia East 410,063 472,973 1.4% 1.4% 17 Prince Rupert West 369,459 400,267 1.2% 1.2% 18 Port Everglades East 319,370 356,857 1.1% 1.0% 19 Altamira Gulf 318,521 350,372 1.1% 1.0% 20 Baltimore East 504,981 347,975 1.7% 1.0% 21 Jacksonville East 306,383 317,884 1.0% 0.9% 22 Mobile Gulf 285,287 291,119 0.9% 0.8% 23 Halifax2 East 280,332 265,260 0.9% 0.8% 24 Ensenada West 221,182 221,182 0.7% 0.6% 25 Wilmington, Del. East 182,780 194,006 0.6% 0.6% Total US Ports in Top 25 23,404,136 26,663,520 79.0% 77.1% Total Canada Ports in Top 25 3,011,063 3,237,748 10.2% 9.4% Total Mexico Ports in Top 25 3,200,486 3,637,038 10.8% 10.5% TOTAL TOP 25 NORTH AMERICAN PORTS BY IMPORTS 29,615,685 33,538,306 97.9% 97.0% Total US Imports 23,985,173 27,658,025 79.3% 80.0% Total Canada Imports 3,011,063 3,237,748 10.0% 9.4% Total Mexico Imports 3,263,223 3,684,051 10.8% 10.7% TOTAL NORTH AMERICAN IMPORTS 30,259,459 34,579,824 100.0% 100.0% Rankings include container ports in Canada, Mexico and the US, omitting ports in US territories and possessions. US TEU count includes all international containerized ocean borne cargo loading at US ports. Lakes cargo data as available. 1Combined volumes of Seattle and Tacoma, members of The Northwest Seaport Alliance. 2Volumes include empty containers. Sources: Mexico: Ministry of Communications and Transportation; Canada: Port authorities; US: PIERS (www.piers.com), a sister product of the Journal of Commerce within S&P Global, and port authorities © 2025 S&P Global. Journal of Commerce Top 25 North American Container Ports by Exports Annual containerized exports, in laden TEUs Volume Market Share 2024 Rank Port Coast 2023 2024 2023 2024 1 Los Angeles West 1,291,997 1,494,201 9.1% 10.1% 2 Houston Gulf 1,342,941 1,424,311 9.4% 9.6% 3 Savannah East 1,336,121 1,376,887 9.4% 9.3% 4 New York-New Jersey East 1,284,976 1,354,421 9.0% 9.2% 5 Long Beach West 1,282,437 1,207,036 9.0% 8.2% 6 Virginia East 987,515 974,259 6.9% 6.6% 7 Vancouver, BC West 754,747 794,724 5.3% 5.4% 8 Montreal2 East 779,111 735,376 5.5% 5.0% 9 Charleston East 702,974 655,498 4.9% 4.4% 10 Oakland West 615,315 644,463 4.3% 4.4% 11 Northwest Seaport Alliance1 West 588,744 636,507 4.1% 4.3% 12 Jacksonville East 490,792 489,227 3.4% 3.3% 13 Manzanillo West 328,490 332,782 2.3% 2.3% 14 Port Everglades East 289,411 322,412 2.0% 2.2% 15 Altamira Gulf 292,493 285,266 2.1% 1.9% 16 Miami East 288,050 248,986 2.0% 1.7% 17 Halifax2 East 265,831 244,013 1.9% 1.7% 18 New Orleans Gulf 232,601 237,536 1.6% 1.6% 19 Veracruz Gulf 268,792 229,422 1.9% 1.6% 20 Mobile Gulf 159,856 159,148 1.1% 1.1% 21 Baltimore East 208,094 143,773 1.5% 1.0% 22 Prince Rupert West 125,254 130,910 0.9% 0.9% 23 Philadelphia East 91,384 97,784 0.6% 0.7% 24 Wilmington, NC East 106,733 96,553 0.7% 0.7% 25 Ensenada West 66,816 63,091 0.5% 0.4% Total US Ports in Top 25 11,299,941 11,563,002 79.7% 78.3% Total Canada Ports in Top 25 1,857,843 1,905,023 13.1% 12.9% Total Mexico Ports in Top 25 1,412,778 910,561 10.0% 6.2% TOTAL TOP 25 NORTH AMERICA PORTS BY EXPORTS 14,181,475 14,378,586 99.4% 97.4% Total US Exports 11,304,055 11,765,507 79.3% 79.7% Total Canada Exports 1,857,843 1,905,023 13.0% 12.9% Total Mexico Exports 1,098,590 1,092,088 7.7% 7.4% TOTAL NORTH AMERICAN EXPORTS 14,260,488 14,762,618 100.0% 100.0% Rankings include container ports in Canada, Mexico and the US, omitting ports in US territories and possessions. US TEU count includes all international containerized ocean borne cargo loading at US ports. Lakes cargo data as available. 1Combined volumes of Seattle and Tacoma, members of The Northwest Seaport Alliance. 2Volumes include empty containers. Sources: Mexico: Ministry of Communications and Transportation; Canada: Port authorities; US: PIERS (www.piers.com), a sister product of the Journal of Commerce within S&P Global, and port authorities. © 2025 S&P Global.

Maritime

Container Shipping News

Trans-Atlantic

Trans-Pacific

North American ports

Port News

USWC recovered import market share last year amid East, Gulf coast labor woes

<div class="phx-topic abstract-wrapper">Strained relationships between London and Brussels have plagued trade negotiations over the past five years around complex issues including tariffs, regulations, fishing rights and the movement of people.</div>

Strained relationships between London and Brussels have plagued trade negotiations over the past five years around complex issues including tariffs, regulations, fishing rights and the movement of people.

<div class="phx-topic">The trade deal hammered out between the UK and the European Union is being hailed by business groups and the logistics industry as a positive step towards reducing border frictions that have been in place since Britain formally left the EU in 2020. But even as the ink dries on the EU-UK Trade and Cooperation Agreement signed Monday, business leaders are urging both sides to ensure the streamlined cross-border measures agreed to are implemented in full. “It is now down to government to work out the most practical solutions,” Steve Parker, director-general of the British International Freight Association (BIFA), said in a statement. “We hope that the announcement will significantly simplify border processes and consequently contribute to increased volumes of goods traded between the UK and the EU,” he added. A statement from the UK’s Port of Dover, which handles one-third of all UK-EU trade volume, said it will be working with the governments of the UK, France and the European Commission “to implement this deal effectively and maximize shared prosperity [on] either side of the English Channel.” “An improvement in border processes will not only restore confidence for businesses and investors but also drive economic growth and supply chain resilience, and we are pleased to see these objectives recognized in [the] agreement,” the port noted. <h3>Removing trade barriers </h3>Strained relationships between London and Brussels have plagued trade negotiations over the past five years around complex issues including tariffs, regulations, fishing rights and the movement of people. But the agreement has left industry optimistic that barriers to trade have been removed. Helen Dickinson, CEO of the British Retail Consortium, said the deal would benefit retail businesses and consumers in both the UK and continental Europe. “As well as supporting growth for exporters to the UK’s biggest export market, retailers operating in the EU will also see a huge reduction in the unnecessary processes, paperwork and administrative burden when exporting goods, supporting our competitiveness abroad,” Dickinson said in a statement Tuesday. <h3>Eliminating food inspections </h3>A key part of the UK-EU agreement is a plan to establish a UK-EU Sanitary and Phytosanitary Zone that will remove routine border checks on agri-food products. British goods such as dairy, fish, eggs and red meat currently require checks of all paperwork and up to 30% physical checks. The Sanitary and Phytosanitary deal will remove these checks entirely, which Parker said will cut costs, complexities and delays that are disrupting trade flows between the two trading bodies. “BIFA members, and the importers and exporters they serve, will be breathing a sigh of relief following practical commitments to improve regulatory cooperation,” Parker said. Dickinson agreed, noting that the removal of border checks for agri-food will be good news for retailers and consumers on both sides of the channel, streamlining border processes, lowering costs and improving the speed and reliability of food imports. Data from consultancy MDS Intermodal shows that UK imports of fresh produce in tonnes, particularly fruit and vegetables, have fallen 17% since 2017, with a switch away from the EU as a source of fresh produce to non-EU and Mediterranean sources. Also agreed Monday was the linking of the UK and EU emissions trading schemes. Following Brexit, the UK could no longer participate in the <a href="https://www.joc.com/article/european-parliament-approves-shipping-ets-but-stakeholders-wary-5202492">EU Emissions Trading System</a> (ETS) and had to establish its own smaller and more volatile trading scheme. A UK government statement said linking the two measures would create a more stable market and allow the UK to avoid being charged under the EU Carbon Border Adjustment Mechanism (CBAM), a policy aimed at ensuring imported carbon-intensive goods face similar carbon costs as those produced within the EU. CBAM is in a transitional phase and will be implemented next year. The deal with the EU is the third major trade agreement reached by the UK in the past month following deals with India and the US. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The trade deal hammered out between the UK and the European Union is being hailed by business groups and the logistics industry as a positive step towards reducing border frictions that have been in place since Britain formally left the EU in 2020. But even as the ink dries on the EU-UK Trade and Cooperation Agreement signed Monday, business leaders are urging both sides to ensure the streamlined cross-border measures agreed to are implemented in full. “It is now down to government to work out the most practical solutions,” Steve Parker, director-general of the British International Freight Association (BIFA), said in a statement. “We hope that the announcement will significantly simplify border processes and consequently contribute to increased volumes of goods traded between the UK and the EU,” he added. A statement from the UK’s Port of Dover, which handles one-third of all UK-EU trade volume, said it will be working with the governments of the UK, France and the European Commission “to implement this deal effectively and maximize shared prosperity [on] either side of the English Channel.” “An improvement in border processes will not only restore confidence for businesses and investors but also drive economic growth and supply chain resilience, and we are pleased to see these objectives recognized in [the] agreement,” the port noted. Removing trade barriers Strained relationships between London and Brussels have plagued trade negotiations over the past five years around complex issues including tariffs, regulations, fishing rights and the movement of people. But the agreement has left industry optimistic that barriers to trade have been removed. Helen Dickinson, CEO of the British Retail Consortium, said the deal would benefit retail businesses and consumers in both the UK and continental Europe. “As well as supporting growth for exporters to the UK’s biggest export market, retailers operating in the EU will also see a huge reduction in the unnecessary processes, paperwork and administrative burden when exporting goods, supporting our competitiveness abroad,” Dickinson said in a statement Tuesday. Eliminating food inspections A key part of the UK-EU agreement is a plan to establish a UK-EU Sanitary and Phytosanitary Zone that will remove routine border checks on agri-food products. British goods such as dairy, fish, eggs and red meat currently require checks of all paperwork and up to 30% physical checks. The Sanitary and Phytosanitary deal will remove these checks entirely, which Parker said will cut costs, complexities and delays that are disrupting trade flows between the two trading bodies. “BIFA members, and the importers and exporters they serve, will be breathing a sigh of relief following practical commitments to improve regulatory cooperation,” Parker said. Dickinson agreed, noting that the removal of border checks for agri-food will be good news for retailers and consumers on both sides of the channel, streamlining border processes, lowering costs and improving the speed and reliability of food imports. Data from consultancy MDS Intermodal shows that UK imports of fresh produce in tonnes, particularly fruit and vegetables, have fallen 17% since 2017, with a switch away from the EU as a source of fresh produce to non-EU and Mediterranean sources. Also agreed Monday was the linking of the UK and EU emissions trading schemes. Following Brexit, the UK could no longer participate in the EU Emissions Trading System (ETS) and had to establish its own smaller and more volatile trading scheme. A UK government statement said linking the two measures would create a more stable market and allow the UK to avoid being charged under the EU Carbon Border Adjustment Mechanism (CBAM), a policy aimed at ensuring imported carbon-intensive goods face similar carbon costs as those produced within the EU. CBAM is in a transitional phase and will be implemented next year. The deal with the EU is the third major trade agreement reached by the UK in the past month following deals with India and the US. Contact Greg Knowler at greg.knowler@spglobal.com .

Trucking News

Transport, Trade and Regulation News

Forwarding

Supply chain

UK-EU trade deal designed to ease Brexit-driven border frictions

<div class="phx-topic abstract-wrapper">Under their current configuration, the newest round of tariffs targeting China’s maritime industry will add $7 billion in costs for US ports, according to one estimate. </div>

Under their current configuration, the newest round of tariffs targeting China’s maritime industry will add $7 billion in costs for US ports, according to one estimate.

<div class="phx-topic">US ports face almost $7 billion in tariff costs under the Trump administration’s proposed levy on Chinese container cranes, according to the American Association of Port Authorities (AAPA), which has joined other stakeholders in calling for a delay to allow a domestic crane industry to develop before cutting China out of the market.AAPA delivered the estimate in prepared comments ahead of a hearing on Monday on the new tariffs at the United States Trade Representative (USTR). The USTR in April unveiled the proposed tariffs on Chinese-made cranes, containers, chassis and similar equipment as part of its one-year-old investigation into China’s dominant market share of the maritime, logistics and shipbuilding industries. The investigation, begun under the Biden administration at the request of several US trade and manufacturing unions, has already resulted in <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">a new tariff</a> to be assessed on Chinese ships and ocean carriers calling the US beginning in October. AAPA said 44 of the 55 cranes currently on order by US ports are being made in China. Over the next 10 years, US ports need to purchase another 151 container cranes, with 121 of those due to come from China, AAPA said. Those current and future orders total about $2.5 billion, AAPA said. If the tariffs on container equipment — up to 100% — are added to existing tariffs on Chinese imports, US ports will pay $6.7 billion in tariffs, according to the group. As an example, AAPA said the Port of Houston is scheduled to receive eight cranes from Shanghai Zhenhua Heavy Industries (ZPMC), China’s leading manufacturer, in the spring of 2026. Houston would be forced to pay $304 million in tariffs on that order if the fees are imposed, AAPA said, adding “that means over $300 million not invested in infrastructure projects at one of the nation’s largest ports.” AAPA asked that any cranes ordered before April be exempt from the tariffs. “American ports need these cranes now, but they simply cannot afford [the] unexpected costs,” AAPA said. “They cannot back out of these purchases.” <h3>‘Significant strain’</h3>The Port Authority of New York and New Jersey said its marine terminal operators, which have over 70 cranes, are currently planning to purchase more. With ZPMC the source for over half of the port’s cranes, the tariffs would “result in a significant strain on the local and national maritime industry,” the port said.Even if a port did not contract with ZPMC, orders with other crane manufacturers in Europe and Asia would also likely face the tariffs because part of their manufacturing is done in China or uses Chinese components, the National Association of Waterfront Employers (NAWE) said in its prepared comments to the USTR.While the Biden administration earmarked $20 billion in incentives last year for developing US crane manufacturing, AAPA and NAWE said that effort will take a long time to develop due to the lack of skilled welders and the reliance on Chinese manufacturers for subassemblies and other crane components. Both groups urged the USTR to delay the implementation by two to three years to allow a US-based crane industry to develop. “Currently, existing suppliers have a lead time of about two years for new orders of STS cranes,” AAPA said. “We can therefore assume that it will take at least that long for the first American STS cranes to roll off the assembly line, and that is if final investment decisions in new factories were made today.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

US ports face almost $7 billion in tariff costs under the Trump administration’s proposed levy on Chinese container cranes, according to the American Association of Port Authorities (AAPA), which has joined other stakeholders in calling for a delay to allow a domestic crane industry to develop before cutting China out of the market. AAPA delivered the estimate in prepared comments ahead of a hearing on Monday on the new tariffs at the United States Trade Representative (USTR). The USTR in April unveiled the proposed tariffs on Chinese-made cranes, containers, chassis and similar equipment as part of its one-year-old investigation into China’s dominant market share of the maritime, logistics and shipbuilding industries. The investigation, begun under the Biden administration at the request of several US trade and manufacturing unions, has already resulted in a new tariff to be assessed on Chinese ships and ocean carriers calling the US beginning in October. AAPA said 44 of the 55 cranes currently on order by US ports are being made in China. Over the next 10 years, US ports need to purchase another 151 container cranes, with 121 of those due to come from China, AAPA said. Those current and future orders total about $2.5 billion, AAPA said. If the tariffs on container equipment — up to 100% — are added to existing tariffs on Chinese imports, US ports will pay $6.7 billion in tariffs, according to the group. As an example, AAPA said the Port of Houston is scheduled to receive eight cranes from Shanghai Zhenhua Heavy Industries (ZPMC), China’s leading manufacturer, in the spring of 2026. Houston would be forced to pay $304 million in tariffs on that order if the fees are imposed, AAPA said, adding “that means over $300 million not invested in infrastructure projects at one of the nation’s largest ports.” AAPA asked that any cranes ordered before April be exempt from the tariffs. “American ports need these cranes now, but they simply cannot afford [the] unexpected costs,” AAPA said. “They cannot back out of these purchases.” ‘Significant strain’ The Port Authority of New York and New Jersey said its marine terminal operators, which have over 70 cranes, are currently planning to purchase more. With ZPMC the source for over half of the port’s cranes, the tariffs would “result in a significant strain on the local and national maritime industry,” the port said. Even if a port did not contract with ZPMC, orders with other crane manufacturers in Europe and Asia would also likely face the tariffs because part of their manufacturing is done in China or uses Chinese components, the National Association of Waterfront Employers (NAWE) said in its prepared comments to the USTR. While the Biden administration earmarked $20 billion in incentives last year for developing US crane manufacturing, AAPA and NAWE said that effort will take a long time to develop due to the lack of skilled welders and the reliance on Chinese manufacturers for subassemblies and other crane components. Both groups urged the USTR to delay the implementation by two to three years to allow a US-based crane industry to develop. “Currently, existing suppliers have a lead time of about two years for new orders of STS cranes,” AAPA said. “We can therefore assume that it will take at least that long for the first American STS cranes to roll off the assembly line, and that is if final investment decisions in new factories were made today.” Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

Marine terminals

Ports look to delay proposed US tariffs on Chinese-made cranes

<div class="phx-topic abstract-wrapper">The Zim Central China Xpress will restart next week, little more than a month after Zim announced its suspension as part of the carrier’s broader 30% to 35% trim in its trans-Pacific network.</div>

The Zim Central China Xpress will restart next week, little more than a month after Zim announced its suspension as part of the carrier’s broader 30% to 35% trim in its trans-Pacific network.

<div class="phx-topic">Zim Integrated Shipping Services is relaunching a suspended service from China to Los Angeles due to the demand revival amid the 90-day pause in the tariff spat between Washington and Beijing but has nonetheless downgraded its volume expectations for the trans-Pacific trade. The Zim Central China Xpress, connecting Los Angeles with Ningo and Shanghai, will restart next week, the carrier said Monday, little more than a month after Zim announced its suspension on April 22 as part of the carrier’s broader 30% to 35% trim in its trans-Pacific network. Zim’s volumes from China halved after President Donald Trump on April 9 announced 145% tariffs on Beijing, although an influx of imports from Vietnam and Thailand helped mitigate the plunge. The sudden decline in US import booking has spurred Zim to downgrade its 2025 outlook for growth on the trans-Pacific to low single digits compared with its original forecast of high-single-digit growth. The market is at the highest level of uncertainty in recent memory, and the health of volumes for the rest of the year hinges on the extent of US tariffs on Chinese imports, Zim CEO Xavier Destriau told the Journal of Commerce. While there is a threat that a rebound in imports from China could overwhelm US West Coast ports, Destriau said the US marine terminals Zim is calling are fluid. “But at some point, there is a risk of port congestion, if indeed, there is a surge in volume and a surge of capacity potentially also being redeployed due to newly recovered attractiveness of the trade,” he said. The frontloading of cargo by US importers in the first quarter in anticipation of higher US tariffs pushed up Zim’s first-quarter volume 12% year over year. Net income tripled to $296 million while revenue jumped 28%. Acknowledging that its fleet was more exposed than other carriers to a coming US tax on Chinese tonnage, Zim said it would swap out Chinese-built ships from the US trades before the new fees are implemented in October. CMA CGM <a href="https://www.joc.com/article/cma-cgm-fleet-will-not-need-to-pay-chinese-tonnage-tax-cfo-6006026">on Friday said it would take a similar tactic</a>. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

Zim Integrated Shipping Services is relaunching a suspended service from China to Los Angeles due to the demand revival amid the 90-day pause in the tariff spat between Washington and Beijing but has nonetheless downgraded its volume expectations for the trans-Pacific trade. The Zim Central China Xpress, connecting Los Angeles with Ningo and Shanghai, will restart next week, the carrier said Monday, little more than a month after Zim announced its suspension on April 22 as part of the carrier’s broader 30% to 35% trim in its trans-Pacific network. Zim’s volumes from China halved after President Donald Trump on April 9 announced 145% tariffs on Beijing, although an influx of imports from Vietnam and Thailand helped mitigate the plunge. The sudden decline in US import booking has spurred Zim to downgrade its 2025 outlook for growth on the trans-Pacific to low single digits compared with its original forecast of high-single-digit growth. The market is at the highest level of uncertainty in recent memory, and the health of volumes for the rest of the year hinges on the extent of US tariffs on Chinese imports, Zim CEO Xavier Destriau told the Journal of Commerce. While there is a threat that a rebound in imports from China could overwhelm US West Coast ports, Destriau said the US marine terminals Zim is calling are fluid. “But at some point, there is a risk of port congestion, if indeed, there is a surge in volume and a surge of capacity potentially also being redeployed due to newly recovered attractiveness of the trade,” he said. The frontloading of cargo by US importers in the first quarter in anticipation of higher US tariffs pushed up Zim’s first-quarter volume 12% year over year. Net income tripled to $296 million while revenue jumped 28%. Acknowledging that its fleet was more exposed than other carriers to a coming US tax on Chinese tonnage, Zim said it would swap out Chinese-built ships from the US trades before the new fees are implemented in October. CMA CGM on Friday said it would take a similar tactic . Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Container lines

Zim restarts China-Los Angeles service to capture fresh import demand

<div class="phx-topic abstract-wrapper">Forwarders expect congestion and container shortages to worsen in the next few weeks as carriers redeploy vessels to trans-Pacific services from Asia-Europe trades to meet increased demand from shippers.</div>

Forwarders expect congestion and container shortages to worsen in the next few weeks as carriers redeploy vessels to trans-Pacific services from Asia-Europe trades to meet increased demand from shippers.

<div class="phx-topic">A rush of cargo in the eastbound trans-Pacific in the aftermath of the 90-day tariff cooldown between the US and China is starting to create vessel congestion and equipment shortages at Asian ports, especially in China, carriers and forwarders say. Forwarders expect congestion and container shortages to worsen in the next few weeks as carriers redeploy vessels to trans-Pacific services from Asia-Europe trades to meet the increased demand from shippers. The port congestion in China, not helped by occasional bad weather, is taking out functional capacity at a time when it is needed most. “Current delays at east and north China ports range from three to seven days depending on the carrier and trade lane,” a spokesperson for FIBS Logistics told the Journal of Commerce. “The situation remains fluid, and there are growing concerns congestion will worsen if more vessels are diverted from Europe to the US in June, as we’ve heard is the plan for some lines like HMM.” Congestion at Shanghai has led shippers and forwarders to divert cargo to alternative ports, especially Ningbo, which is now starting to lead to congestion and equipment shortages there, sources said. “North China ports are facing increased waiting times due to berth congestion, further impacted by intermittent port closures caused by strong winds and dense fog,” Hapag-Lloyd said in a customer advisory on Thursday. The carrier said vessels are waiting up to 72 hours to berth at Qingdao and at Shanghai’s main Yangshan offshore port complex due to “heavy vessel bunching and congestion.” Waiting time at Ningbo was up to 36 hours depending on the terminal. There are also delays of up to 72 hours at Pusan Newport International Terminal in South Korea and up to 36 hours at Singapore due to vessel bunching, the Hapag-Lloyd advisory said. Ocean Network Express (ONE) said congestion is also plaguing ports in Japan, especially Tokyo and Yokohama, and was causing lengthy delays and port omissions on some long-haul and intra-Asia services. <h3>Congestion stretches throughout Asia </h3>Kuehne + Nagel said it expected congestion and equipment challenges in China “due to the backlog of trans-Pacific cargo being shipped in the next weeks.” The logistics giant, in updates Monday on its SeaExplorer visibility platform, also highlighted congestion that was causing delays and disruption at ports across Asia. These include Shenzhen, Hong Kong, Xiamen and Nanshan in southern China; Ho Chi Minh City, Vietnam; Laem Chabang, Thailand; Manila in the Philippines; and Port Klang in Malaysia, where yard utilization is 90%. Highlighting the tight supply of containers, FIBS Logistics said CMA CGM and other carriers have started allocating containers to shippers in Shanghai and Ningbo based on available space and rate levels, “which may create selective shortages.” Maersk is particularly affected by equipment shortages in Ningbo, while “HMM is also reportedly controlling equipment release to match vessel space in Ningbo,” the FIBS spokesperson told the Journal of Commerce. Highlighting the surge in cargo, Hapag-Lloyd said last Wednesday <a href="https://www.joc.com/article/china-us-ocean-bookings-surge-since-weekend-trade-deal-hapag-lloyd-6004653">it had seen an increase of more than 50% in China-US cargo bookings</a> since the two countries signed a preliminary trade deal slashing tariffs for 90 days following meetings on May 11–12. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

A rush of cargo in the eastbound trans-Pacific in the aftermath of the 90-day tariff cooldown between the US and China is starting to create vessel congestion and equipment shortages at Asian ports, especially in China, carriers and forwarders say. Forwarders expect congestion and container shortages to worsen in the next few weeks as carriers redeploy vessels to trans-Pacific services from Asia-Europe trades to meet the increased demand from shippers. The port congestion in China, not helped by occasional bad weather, is taking out functional capacity at a time when it is needed most. “Current delays at east and north China ports range from three to seven days depending on the carrier and trade lane,” a spokesperson for FIBS Logistics told the Journal of Commerce. “The situation remains fluid, and there are growing concerns congestion will worsen if more vessels are diverted from Europe to the US in June, as we’ve heard is the plan for some lines like HMM.” Congestion at Shanghai has led shippers and forwarders to divert cargo to alternative ports, especially Ningbo, which is now starting to lead to congestion and equipment shortages there, sources said. “North China ports are facing increased waiting times due to berth congestion, further impacted by intermittent port closures caused by strong winds and dense fog,” Hapag-Lloyd said in a customer advisory on Thursday. The carrier said vessels are waiting up to 72 hours to berth at Qingdao and at Shanghai’s main Yangshan offshore port complex due to “heavy vessel bunching and congestion.” Waiting time at Ningbo was up to 36 hours depending on the terminal. There are also delays of up to 72 hours at Pusan Newport International Terminal in South Korea and up to 36 hours at Singapore due to vessel bunching, the Hapag-Lloyd advisory said. Ocean Network Express (ONE) said congestion is also plaguing ports in Japan, especially Tokyo and Yokohama, and was causing lengthy delays and port omissions on some long-haul and intra-Asia services. Congestion stretches throughout Asia Kuehne + Nagel said it expected congestion and equipment challenges in China “due to the backlog of trans-Pacific cargo being shipped in the next weeks.” The logistics giant, in updates Monday on its SeaExplorer visibility platform, also highlighted congestion that was causing delays and disruption at ports across Asia. These include Shenzhen, Hong Kong, Xiamen and Nanshan in southern China; Ho Chi Minh City, Vietnam; Laem Chabang, Thailand; Manila in the Philippines; and Port Klang in Malaysia, where yard utilization is 90%. Highlighting the tight supply of containers, FIBS Logistics said CMA CGM and other carriers have started allocating containers to shippers in Shanghai and Ningbo based on available space and rate levels, “which may create selective shortages.” Maersk is particularly affected by equipment shortages in Ningbo, while “HMM is also reportedly controlling equipment release to match vessel space in Ningbo,” the FIBS spokesperson told the Journal of Commerce. Highlighting the surge in cargo, Hapag-Lloyd said last Wednesday it had seen an increase of more than 50% in China-US cargo bookings since the two countries signed a preliminary trade deal slashing tariffs for 90 days following meetings on May 11–12. Contact Keith Wallis at keithwallis@hotmail.com .

US tariff-linked cargo rush causes port congestion, box shortages in China

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

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Shippers save money, time with automated transportation bidding tools

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

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