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<div class="phx-topic abstract-wrapper">Trade leads supplied by: US Department of CommerceU.S. and Foreign Commercial Service</div>

Trade leads supplied by: US Department of CommerceU.S. and Foreign Commercial Service

<div>Trade leads supplied by:US Department of CommerceU.S. and Foreign Commercial ServiceRoom HCHB 3804, Washington, DC 20230HOW TO USE:Trade leads on this page are listed according to industry. Codes preceding each industry heading represent industry classifications according to the Numerical List of Manufactured Products (1972 SIC Basis) published by the Bureau of the Census. Codes beginning with 99 classify major projects, services and special product groups.FOR FURTHERASSISTANCE:U.S. firms should be aware that the listing here of opportunities to trade in specific commodities and technical data does not necessarily imply approval of their export by the U.S. Department of Commerce.While every effort...

EXPORT OPPORTUNITIES

<div class="phx-topic abstract-wrapper">Labor peace at US East and Gulf coast ports is now ensured through September 2030 after the union’s rank and file approved the new labor agreement. </div>

Labor peace at US East and Gulf coast ports is now ensured through September 2030 after the union’s rank and file approved the new labor agreement.

Feature image

<div class="phx-topic">Members of the International Longshoremen’s Association (ILA) have approved a new six-year master contract covering US East and Gulf coast ports that not only includes a hefty raise for all dockworkers but an even higher salary bump for new hires. The new contract is retroactive to Oct. 1, 2024, and will be in effect until Sept. 30, 2030. It will be signed in the next two weeks. While the union secured further protections against automation, maritime employers won room for efficiency gains through remote operation of terminal equipment and the use of operator assistance technology at ports. The ILA said late Tuesday that a majority of <a href="https://www.joc.com/article/ila-officials-to-meet-next-week-as-ratification-of-usmx-deal-looms-5934580">its 45,000 registered members</a> ratified <a href="https://www.joc.com/article/ila-usmx-reach-tentative-deal-that-avoids-another-port-strike-5919519">the new contract</a> that was tentatively agreed to in early January between union leadership and the United States Maritime Alliance (USMX). ILA President Harold Daggett said in a statement the contract, which involved three years of negotiations and a three-day strike last October, is a “gold standard” for labor thanks to its wage and benefit increases and protections against technology that could impact labor. “The ILA stayed strong and unified throughout and successfully won the greatest contract in ILA history and maybe the strongest collective bargaining agreement ever negotiated by any union,” Daggett said. The ILA highlighted <a href="https://www.joc.com/article/ila-usmx-agree-on-new-wage-offer-and-contract-extension-that-reopens-ports-5741882">the 62% wage increase</a> as measured against the contract’s top wage tier, equating to an average $4 per hour raise for all dockworkers during the contract’s term. But the contract also includes other wage concessions that mean the lowest-paid longshore workers will receive even larger percentage wage increases. The starting wage for first-year longshore workers goes from $20 per hour to $27 under the new six-year agreement. By 2026, the starting wage will increase to $30 per hour. The new contract also includes four wage tiers instead of the six under the previous master contract, allowing longshore workers to climb up the pay scale faster. A marine terminal source familiar with the new contract says that the higher starting wage means a 35% increase for new longshore workers in the first year alone. <h3>Automation protections </h3>The ILA also touted the new agreement’s provisions for the implementation of new technologies at ports. Much like the previous agreement, the new contract includes a ban on marine terminals implementing any type of full automation that is devoid of human oversight. The implementation of semi-automation technology at marine terminals will have to undergo a more thorough vetting process. During contract negotiations, the ILA drew a hard line on <a href="https://www.joc.com/article/ila-targets-rail-mounted-gantry-cranes-amid-impasse-in-port-labor-talks-5874742">the further rollout of rail-mounted gantry cranes (RMGs)</a>, saying the technology impacted jobs for longshore workers. Under the new agreement, the ILA secured a guarantee that at least one longshore worker will handle each RMG. However, maritime employers also secured the ability to have RMGs, along with rubber tire gantry cranes, operated remotely, which saves time on shift changes. Marine terminals will also be able to use operator-assistance technology at marine terminals. The contract is expected to be formally signed on March 10. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Members of the International Longshoremen’s Association (ILA) have approved a new six-year master contract covering US East and Gulf coast ports that not only includes a hefty raise for all dockworkers but an even higher salary bump for new hires. The new contract is retroactive to Oct. 1, 2024, and will be in effect until Sept. 30, 2030. It will be signed in the next two weeks. While the union secured further protections against automation, maritime employers won room for efficiency gains through remote operation of terminal equipment and the use of operator assistance technology at ports. The ILA said late Tuesday that a majority of its 45,000 registered members ratified the new contract that was tentatively agreed to in early January between union leadership and the United States Maritime Alliance (USMX). ILA President Harold Daggett said in a statement the contract, which involved three years of negotiations and a three-day strike last October, is a “gold standard” for labor thanks to its wage and benefit increases and protections against technology that could impact labor. “The ILA stayed strong and unified throughout and successfully won the greatest contract in ILA history and maybe the strongest collective bargaining agreement ever negotiated by any union,” Daggett said. The ILA highlighted the 62% wage increase as measured against the contract’s top wage tier, equating to an average $4 per hour raise for all dockworkers during the contract’s term. But the contract also includes other wage concessions that mean the lowest-paid longshore workers will receive even larger percentage wage increases. The starting wage for first-year longshore workers goes from $20 per hour to $27 under the new six-year agreement. By 2026, the starting wage will increase to $30 per hour. The new contract also includes four wage tiers instead of the six under the previous master contract, allowing longshore workers to climb up the pay scale faster. A marine terminal source familiar with the new contract says that the higher starting wage means a 35% increase for new longshore workers in the first year alone. Automation protections The ILA also touted the new agreement’s provisions for the implementation of new technologies at ports. Much like the previous agreement, the new contract includes a ban on marine terminals implementing any type of full automation that is devoid of human oversight. The implementation of semi-automation technology at marine terminals will have to undergo a more thorough vetting process. During contract negotiations, the ILA drew a hard line on the further rollout of rail-mounted gantry cranes (RMGs) , saying the technology impacted jobs for longshore workers. Under the new agreement, the ILA secured a guarantee that at least one longshore worker will handle each RMG. However, maritime employers also secured the ability to have RMGs, along with rubber tire gantry cranes, operated remotely, which saves time on shift changes. Marine terminals will also be able to use operator-assistance technology at marine terminals. The contract is expected to be formally signed on March 10. Contact Michael Angell at michael.angell@spglobal.com

ILA ratifies new six-year deal with higher entry pay, automation protection

<div class="phx-topic abstract-wrapper">Sustainable financing will help the Oslo-listed operator hit net-zero goals, but brings risks with higher capex costs to cover operations of its ro/ro fleet.</div>

Sustainable financing will help the Oslo-listed operator hit net-zero goals, but brings risks with higher capex costs to cover operations of its ro/ro fleet.

<div class="phx-topic">Wallenius Wilhelmsen, one of the world’s largest roll-on/roll-off (ro/ro) operators, has launched a sustainable financing framework to help fund future dual-fuel vessel and equipment orders as part of its plan to achieve net-zero greenhouse gas emissions by 2040.The move has the potential to offer more beneficial financing terms for investment in new fuel-efficient ships and port and terminal equipment to meet the company’s net-zero goals, with the downside of more expensive financing costs if it doesn’t, Wallenius said.The company has not said how much it expected to raise under the sustainable financing framework or how many more vessels it needed to order or charter to offset the ships leaving its current fleet.Jermund Lien, Wallenius’ interim CFO, said $1.5 billion had previously been raised in sustainability-linked debt, but “the new framework is even more ambitious” with two specific aims.Speaking during the company’s annual results briefing earlier this month, Lien said so-called green bonds and loans will be used to finance new dual-fuel ships, trucks and equipment. These include Wallenius’ network of terminals and vehicle processing centers, including facilities in North America, Mexico, Europe, China and South Korea.Sustainability-linked debt linked to net-zero goals will be raised for corporate use, he added.Lien said S&amp;P Global Ratings has issued an independent opinion of the new financing framework affirming its credibility and alignment with sustainability goals. S&amp;P Global is the parent company of the Journal of Commerce. “Transitioning to a fossil-free future is challenging, but essential,” Wallenius CEO Lasse Kristoffersen said. “Climate change requires new technologies, infrastructure, low-carbon fuels, energy-efficient operations and partnerships. The cost of achieving net-zero is significant – but insignificant compared to doing nothing.”<h3>Plans for mass fleet replacement </h3>The Oslo, Norway-listed company estimated around 35 vessels would leave its fleet by 2030 either because the ships will be too old or existing charters would have ended. The carrier currently operates a fleet of 125 ships either owned or on long-term charter.“We need to invest in fleet renewal, trucks, and other equipment, all the while transitioning to low-carbon fuels to achieve net-zero by 2040,” Lien said during the results presentation.The company currently has 14 Shaper-class ro/ro vessels on order for delivery in 2026 and 2028. The methanol dual-fuel vessels, which will also be able to operate on biofuel and conventional diesel, comprise seven 9,300 car equivalent units (CEU) ships and seven 12,100-CEU vessels.The larger capacity of the Shaper-class vessels combined with more efficient ship and machinery design will improve vessel energy efficiency by up to 40% compared with Wallenius’ existing fleet, the carrier said.Six of the ships, which are among seven to be operated by the company’s South Korea-focused subsidiary Eukor Car Carriers, have already received pre-delivery financing.“We expect to finance the remaining vessels closer to delivery,” Lien said. He added that the outstanding capital expenditure commitments for those ships total $1.5 billion, to be paid from the first quarter this year to the end of 2028.Wallenius also has options for two additional Shaper-class vessels and holds purchase options on a further 13 vessels that it has chartered from other operators.Kristoffersen would not be drawn on whether the options would be exercised, or when.Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Wallenius Wilhelmsen, one of the world’s largest roll-on/roll-off (ro/ro) operators, has launched a sustainable financing framework to help fund future dual-fuel vessel and equipment orders as part of its plan to achieve net-zero greenhouse gas emissions by 2040. The move has the potential to offer more beneficial financing terms for investment in new fuel-efficient ships and port and terminal equipment to meet the company’s net-zero goals, with the downside of more expensive financing costs if it doesn’t, Wallenius said. The company has not said how much it expected to raise under the sustainable financing framework or how many more vessels it needed to order or charter to offset the ships leaving its current fleet. Jermund Lien, Wallenius’ interim CFO, said $1.5 billion had previously been raised in sustainability-linked debt, but “the new framework is even more ambitious” with two specific aims. Speaking during the company’s annual results briefing earlier this month, Lien said so-called green bonds and loans will be used to finance new dual-fuel ships, trucks and equipment. These include Wallenius’ network of terminals and vehicle processing centers, including facilities in North America, Mexico, Europe, China and South Korea. Sustainability-linked debt linked to net-zero goals will be raised for corporate use, he added. Lien said S&P Global Ratings has issued an independent opinion of the new financing framework affirming its credibility and alignment with sustainability goals. S&P Global is the parent company of the Journal of Commerce. “Transitioning to a fossil-free future is challenging, but essential,” Wallenius CEO Lasse Kristoffersen said. “Climate change requires new technologies, infrastructure, low-carbon fuels, energy-efficient operations and partnerships. The cost of achieving net-zero is significant – but insignificant compared to doing nothing.” Plans for mass fleet replacement The Oslo, Norway-listed company estimated around 35 vessels would leave its fleet by 2030 either because the ships will be too old or existing charters would have ended. The carrier currently operates a fleet of 125 ships either owned or on long-term charter. “We need to invest in fleet renewal, trucks, and other equipment, all the while transitioning to low-carbon fuels to achieve net-zero by 2040,” Lien said during the results presentation. The company currently has 14 Shaper-class ro/ro vessels on order for delivery in 2026 and 2028. The methanol dual-fuel vessels, which will also be able to operate on biofuel and conventional diesel, comprise seven 9,300 car equivalent units (CEU) ships and seven 12,100-CEU vessels. The larger capacity of the Shaper-class vessels combined with more efficient ship and machinery design will improve vessel energy efficiency by up to 40% compared with Wallenius’ existing fleet, the carrier said. Six of the ships, which are among seven to be operated by the company’s South Korea-focused subsidiary Eukor Car Carriers, have already received pre-delivery financing. “We expect to finance the remaining vessels closer to delivery,” Lien said. He added that the outstanding capital expenditure commitments for those ships total $1.5 billion, to be paid from the first quarter this year to the end of 2028. Wallenius also has options for two additional Shaper-class vessels and holds purchase options on a further 13 vessels that it has chartered from other operators. Kristoffersen would not be drawn on whether the options would be exercised, or when. Contact Keith Wallis at keithwallis@hotmail.com .

Wallenius’ ‘ambitious’ financing framework underpins ro/ro fleet renewal

<div class="phx-topic abstract-wrapper">Shipper, forwarder and customs broker associations want to see the members of the Digital Container Shipping Association accelerate efforts to create interoperable process standards. </div>

Shipper, forwarder and customs broker associations want to see the members of the Digital Container Shipping Association accelerate efforts to create interoperable process standards.

<div class="phx-topic">Nearly three dozen trade groups are urging major shipping lines to advance digital standards and system interoperability for the benefit of shippers, forwarders and customs brokers. The renewed call, courtesy of a letter sent to carrier members of the Digital Container Shipping Association (DCSA), comes 11 months after many of the <a href="https://www.joc.com/article/groups-urge-dcsa-members-to-implement-standard-on-shipping-schedules-5244524">same trade groups initially called on shipping lines</a> to pursue progress on the standards DCSA has released. The association last week released its latest booking and electronic bill of lading standards, blueprints intended to help shipping lines create common user experiences for its customers. DCSA has already published a commercial schedules standard, which the trade groups lauded in a letter made public this week. “Implementing these standards ... demonstrates your commitment to customer needs, adherence to realistic timelines, and builds trust in your ability to deliver,” the most recent letter said. “We urge you to lead your organization and collaborate with fellow DCSA members to deliver greater benefits from digital standards and interoperability to your customers in 2025.” Among a checklist of a dozen recommendations to carriers, the letter calls for DCSA members to align implementation plans with other ocean carriers to minimize duplication work for customers, to invite customer participation in the development and implementation of standards, and to provide semi-annual progress updates from mid-2025. Signatories to the letter include the Agriculture Transportation Coalition, the National Customs Brokers and Forwarders Association of America, the Global Shipper Alliance and the Coalition of New England Companies for Trade, as well as numerous commodity-specific shipper associations, regional trade associations and individual customs brokers. DCSA members are CMA CGM, Evergreen, HMM, Hapag-Lloyd, Maersk, Mediterranean Shipping Co., Ocean Network Express (ONE), Yang Ming and Zim Integrated Shipping Services. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Nearly three dozen trade groups are urging major shipping lines to advance digital standards and system interoperability for the benefit of shippers, forwarders and customs brokers. The renewed call, courtesy of a letter sent to carrier members of the Digital Container Shipping Association (DCSA), comes 11 months after many of the same trade groups initially called on shipping lines to pursue progress on the standards DCSA has released. The association last week released its latest booking and electronic bill of lading standards, blueprints intended to help shipping lines create common user experiences for its customers. DCSA has already published a commercial schedules standard, which the trade groups lauded in a letter made public this week. “Implementing these standards ... demonstrates your commitment to customer needs, adherence to realistic timelines, and builds trust in your ability to deliver,” the most recent letter said. “We urge you to lead your organization and collaborate with fellow DCSA members to deliver greater benefits from digital standards and interoperability to your customers in 2025.” Among a checklist of a dozen recommendations to carriers, the letter calls for DCSA members to align implementation plans with other ocean carriers to minimize duplication work for customers, to invite customer participation in the development and implementation of standards, and to provide semi-annual progress updates from mid-2025. Signatories to the letter include the Agriculture Transportation Coalition, the National Customs Brokers and Forwarders Association of America, the Global Shipper Alliance and the Coalition of New England Companies for Trade, as well as numerous commodity-specific shipper associations, regional trade associations and individual customs brokers. DCSA members are CMA CGM, Evergreen, HMM, Hapag-Lloyd, Maersk, Mediterranean Shipping Co., Ocean Network Express (ONE), Yang Ming and Zim Integrated Shipping Services. Contact Eric Johnson at eric.johnson@spglobal.com .

Trade groups renew push for ocean carrier movement on digitization

<div class="phx-topic abstract-wrapper">The tonnage injection comes amid an uptick in Asian manufacturers expanding business in Latin America, particularly Mexico.</div>

The tonnage injection comes amid an uptick in Asian manufacturers expanding business in Latin America, particularly Mexico.

<div class="phx-topic">Ocean Network Express (ONE) and Evergreen Line are increasing their tonnage deployed on the Asia-to-Latin-America lane to handle growing demand on a trade in which capacity has already doubled in three years. The tonnage injection comes amid an uptick in Asian manufacturers expanding business in Latin America, particularly Mexico. Singapore-based ONE is putting larger ships and adding new services on the trade, including the deployment of 13,828-TEU S-class newbuild container ships on its Asia-West Coast South America service from early March, according to a ONE spokesperson. Meanwhile, Evergreen’s new sailing schedules reflect its own service expansions and increased capacity on the trade. The new ONE vessels are up to 50% larger than the existing 8,900-TEU vessels they are likely to replace — those being Hapag-Lloyd ships that had been operating the routes under the old THE Alliance. Those vessels will be withdrawn now that the carrier has teamed with Maersk on the Gemini Cooperation. ONE hasn’t decided if all of its new 13,828-TEU vessels will be deployed on the Asia-South America trade. Figures from MDS Transmodal show quarterly deployed capacity on the lane has more than doubled in the last three years, climbing to more than 2 million TEUs in the first quarter. Capacity alone grew 20% year over year between the first quarter of 2024 and the first quarter of 2025, according to MDS data prepared for the Journal of Commerce.  “It seems like [the growth] is to accommodate a lot of the new Asian manufacturers that are setting up down there,” a forwarder with cargo on the trade told the Journal of Commerce.  <h3>New vessels, services </h3>Although the service rotation is still to be confirmed, a ONE spokesperson said the first of the larger newbuilds to be delivered, ONE Sparkle, is likely to be deployed on ONE’s Asia-Latin America service connecting Busan, Shanghai and Ningbo with Ensenada and Manzanillo in Mexico, Buenaventura (Colombia), Guayaquil (Ecuador) and Callao (Peru). Evergreen and Cosco Shipping teamed up to expand the Asia-South America West Coast 5 (WSA5) service in early February, according to Cosco. The service, which had previously been a purely Mexico-focused route, will now cover ports including Buenaventura, Guayaquil and Chancay in Peru — where Cosco launched operations last November. The S-class vessels will also expand the lane’s reefer capacity, with about two and a half times the number of reefer plugs available on comparable ships. They are specifically designed for deployment on burgeoning perishables trades that involve meat, fish and fruit exports between China and South America and on north-south routes, a ONE spokesperson told the Journal of Commerce. “With these new vessels we’ll have an increase in strategic coverage,” the spokesperson added.   <h3>Rate volatility </h3>Peter Sand, chief analyst at online benchmarking platform Xeneta, said contract rates on the trade lane are continuing to trend lower in February after a recent peak in September. Contract rates from China to the West Coast of South America were about $2,700 per FEU this month, down from almost $4,000 per FEU almost six months ago. Still, Sand was bullish about rate and trade growth fueled by further Chinese investment in Latin America, especially Mexico. “Overall, we see a trend for increasing manufacturing investments outside China going forward and a growth trend for China to Mexico and Canada,” he told the Journal of Commerce. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>. </div>

Ocean Network Express (ONE) and Evergreen Line are increasing their tonnage deployed on the Asia-to-Latin-America lane to handle growing demand on a trade in which capacity has already doubled in three years. The tonnage injection comes amid an uptick in Asian manufacturers expanding business in Latin America, particularly Mexico. Singapore-based ONE is putting larger ships and adding new services on the trade, including the deployment of 13,828-TEU S-class newbuild container ships on its Asia-West Coast South America service from early March, according to a ONE spokesperson. Meanwhile, Evergreen’s new sailing schedules reflect its own service expansions and increased capacity on the trade. The new ONE vessels are up to 50% larger than the existing 8,900-TEU vessels they are likely to replace — those being Hapag-Lloyd ships that had been operating the routes under the old THE Alliance. Those vessels will be withdrawn now that the carrier has teamed with Maersk on the Gemini Cooperation. ONE hasn’t decided if all of its new 13,828-TEU vessels will be deployed on the Asia-South America trade. Figures from MDS Transmodal show quarterly deployed capacity on the lane has more than doubled in the last three years, climbing to more than 2 million TEUs in the first quarter. Capacity alone grew 20% year over year between the first quarter of 2024 and the first quarter of 2025, according to MDS data prepared for the Journal of Commerce.  “It seems like [the growth] is to accommodate a lot of the new Asian manufacturers that are setting up down there,” a forwarder with cargo on the trade told the Journal of Commerce.  New vessels, services Although the service rotation is still to be confirmed, a ONE spokesperson said the first of the larger newbuilds to be delivered, ONE Sparkle, is likely to be deployed on ONE’s Asia-Latin America service connecting Busan, Shanghai and Ningbo with Ensenada and Manzanillo in Mexico, Buenaventura (Colombia), Guayaquil (Ecuador) and Callao (Peru). Evergreen and Cosco Shipping teamed up to expand the Asia-South America West Coast 5 (WSA5) service in early February, according to Cosco. The service, which had previously been a purely Mexico-focused route, will now cover ports including Buenaventura, Guayaquil and Chancay in Peru — where Cosco launched operations last November. The S-class vessels will also expand the lane’s reefer capacity, with about two and a half times the number of reefer plugs available on comparable ships. They are specifically designed for deployment on burgeoning perishables trades that involve meat, fish and fruit exports between China and South America and on north-south routes, a ONE spokesperson told the Journal of Commerce. “With these new vessels we’ll have an increase in strategic coverage,” the spokesperson added.   Rate volatility Peter Sand, chief analyst at online benchmarking platform Xeneta, said contract rates on the trade lane are continuing to trend lower in February after a recent peak in September. Contract rates from China to the West Coast of South America were about $2,700 per FEU this month, down from almost $4,000 per FEU almost six months ago. Still, Sand was bullish about rate and trade growth fueled by further Chinese investment in Latin America, especially Mexico. “Overall, we see a trend for increasing manufacturing investments outside China going forward and a growth trend for China to Mexico and Canada,” he told the Journal of Commerce. Contact Keith Wallis at keithwallis@hotmail.com . Contact Laura Robb at laura.robb@spglobal.com .

Carriers boost tonnage on Asia-WCSA to meet growing manufacturing demand

<div class="phx-topic abstract-wrapper">While the breakbulk sector failed to capitalize on the forward loading of steel to get in front of US import tariffs, it now has bigger concerns with US proposals to penalize Chinese-made MPVs.</div>

While the breakbulk sector failed to capitalize on the forward loading of steel to get in front of US import tariffs, it now has bigger concerns with US proposals to penalize Chinese-made MPVs.

<div class="phx-topic">Breakbulk carriers, having missed out on the rush to frontload steel cargoes ahead of US import tariffs, have turned their attention to the impact of possible US restrictions on Chinese-built and -operated ships on the multipurpose sector.January US steel imports surged 5.6% year over year, according to data from S&amp;P Global Commodity Insights. Statistics from the US International Trade Administration’s US Steel Import Monitor showed US imports of steel mill products hitting a seven-month high of 2.6 million metric tons in January. But the US Steel Import Monitor census data reporting to Feb. 18 put volumes back to a “normal” 1.3 million metric tons. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="98023d22-f087-45e1-995c-84fa8c6522e7"></dynamic-object></div>A specialist steel-as-breakbulk carrier speaking to the Journal of Commerce confirmed that they had not seen frontloading taking place in advance of the March 12 revocation of previously negotiated country-specific tariff exemptions.“Unless you import from close to the US, cargoes will not make it in time for the March 12 deadline anyway,” the source added. An analyst speaking to the Journal of Commerce agreed that frontloading would have shown in December to early February data “when tariff threats were simply threats.” However, tariff avoidance is now down the list of priorities for engineering, procurement and construction (EPC) companies after the Feb. 21 announcement from the US Trade Representative (USTR) of proposed penalties on Chinese-built and -operated ships calling on the US. <a href="https://www.joc.com/article/us-port-fees-could-hit-chinese-ships-under-trump-trade-proposal-5949409">Among the USTR’s proposals are a $1 million fee for each US port call of a Chinese-operated ship</a>, or a $1,000-per-net-ton fee applied on the ship’s carrying capacity. For all other ocean carriers, including MPVs, the USTR proposes a sliding port entrance fee of up to $1.5 million per Chinese-built vessel based on the percent of the carrier’s fleet built in China. Likewise, an additional fee of $1 million per vessel could also be assessed based on the percent of the carrier’s newbuild order book at Chinese shipyards. An EPC speaking to the Journal of Commerce said that most breakbulk operators have orders with Chinese yards and shippers are nearly always the sole importer in a port call.In 2024, China delivered 34% of all newbuildings to the global fleet, compared with 11% from Japan, 7% from South Korea and just 2% from the US, according to S&amp;P Global. Up to 40% of the global fleet is under construction in China, according to S&amp;P Global Market Intelligence. The tally is even higher for larger ships of over 10,000 deadweight tons — 63% of those are currently being built in China. For the multipurpose and heavy-lift fleet (MPV/HL), 51.8% of the existing fleet is Chinese-built, 23% is Japanese and 5% is Dutch. However, the share of the current order book is even more skewed toward Chinese yards, with 89% of all MPV/HL vessels on order there. Only about 35% is for Chinese operators.Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>.</div>

Breakbulk carriers, having missed out on the rush to frontload steel cargoes ahead of US import tariffs, have turned their attention to the impact of possible US restrictions on Chinese-built and -operated ships on the multipurpose sector. January US steel imports surged 5.6% year over year, according to data from S&P Global Commodity Insights. Statistics from the US International Trade Administration’s US Steel Import Monitor showed US imports of steel mill products hitting a seven-month high of 2.6 million metric tons in January. But the US Steel Import Monitor census data reporting to Feb. 18 put volumes back to a “normal” 1.3 million metric tons. A specialist steel-as-breakbulk carrier speaking to the Journal of Commerce confirmed that they had not seen frontloading taking place in advance of the March 12 revocation of previously negotiated country-specific tariff exemptions. “Unless you import from close to the US, cargoes will not make it in time for the March 12 deadline anyway,” the source added. An analyst speaking to the Journal of Commerce agreed that frontloading would have shown in December to early February data “when tariff threats were simply threats.” However, tariff avoidance is now down the list of priorities for engineering, procurement and construction (EPC) companies after the Feb. 21 announcement from the US Trade Representative (USTR) of proposed penalties on Chinese-built and -operated ships calling on the US. Among the USTR’s proposals are a $1 million fee for each US port call of a Chinese-operated ship , or a $1,000-per-net-ton fee applied on the ship’s carrying capacity. For all other ocean carriers, including MPVs, the USTR proposes a sliding port entrance fee of up to $1.5 million per Chinese-built vessel based on the percent of the carrier’s fleet built in China. Likewise, an additional fee of $1 million per vessel could also be assessed based on the percent of the carrier’s newbuild order book at Chinese shipyards. An EPC speaking to the Journal of Commerce said that most breakbulk operators have orders with Chinese yards and shippers are nearly always the sole importer in a port call. In 2024, China delivered 34% of all newbuildings to the global fleet, compared with 11% from Japan, 7% from South Korea and just 2% from the US, according to S&P Global. Up to 40% of the global fleet is under construction in China, according to S&P Global Market Intelligence. The tally is even higher for larger ships of over 10,000 deadweight tons — 63% of those are currently being built in China. For the multipurpose and heavy-lift fleet (MPV/HL), 51.8% of the existing fleet is Chinese-built, 23% is Japanese and 5% is Dutch. However, the share of the current order book is even more skewed toward Chinese yards, with 89% of all MPV/HL vessels on order there. Only about 35% is for Chinese operators. Contact Carly Fields at carly.fields@spglobal.com .

MPVs pass on steel frontloading surge as fleet concerns loom

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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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