<div class="phx-topic abstract-wrapper">The Federal Maritime Commission will allow Martexport Inc., a food export shipper, to take part in a</div>

The Federal Maritime Commission will allow Martexport Inc., a food export shipper, to take part in a

<div>The Federal Maritime Commission will allow Martexport Inc., a food export shipper, to take part in an investigation into possible shipping law violations of the Yugoslav carrier, Jugolinija.The carrier operates a non-conference container service from several U.S. ports to Mediterranean and Middle East ports.A commission investigation, which started in January, will determine whether the line violated provisions of the 1984 Shipping Act by undercharging a shipper, unnamed in the complaint, some $570,000 on 539 shipments of foodstuffs to the Middle East between March 1985 and August 1987.Martexport, based in New York City, said it wanted to be involved in the...

The Federal Maritime Commission will allow Martexport Inc., a food export shipper, to take part in an investigation into possible shipping law violations of the Yugoslav carrier, Jugolinija. The carrier operates a non-conference container service from several U.S. ports to Mediterranean and Middle East ports.A commission investigation, which started in January, will determine whether the line violated provisions of the 1984 Shipping Act by undercharging a shipper, unnamed in the complaint, some $570,000 on 539 shipments of foodstuffs to the Middle East between March 1985 and August 1987. Martexport, based in New York City, said it wanted to be involved in the case because it is "engaged fully in the precise trade . . . which is the subject of the commission investigation." The company said it plans to file its own complaint against the line in the near future. A pre-hearing conference in the case is scheduled for March 21.

Maritime

FMC LETS MARTEXPORT JOIN JUGOLINIJA PROBE

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

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

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

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

Port infrastructure

Marine terminals

North American ports

Delaware port still backing Edgemoor plans even after lawsuit cancels permit

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

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

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

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

Breakbulk carriers

Project cargo

Breakbulk News

MPVs turn to unconventional propulsion to beat European fuel regulations

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

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

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

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

Container Shipping News

Container lines

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

<div class="phx-topic abstract-wrapper">Forwarders say shippers are booking space to the US for low-value commodities such as plywood, tile and paper, which prior to the rate drop had been limited to less-expensive routes.</div>

Forwarders say shippers are booking space to the US for low-value commodities such as plywood, tile and paper, which prior to the rate drop had been limited to less-expensive routes.

<div class="phx-topic">Exporters shipping low-value products from Brazil to the US are taking advantage of depressed container spot rates driven by retreating volumes, a move forwarders say will hasten a rate recovery given the minimal capacity additions expected on the trade. Rates on the lane have been falling since mid-December, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Spot rates for cargo from the East Coast of South America (ECSA) bound for the US Gulf Coast were assessed at $3,400 per FEU on Wednesday, down from $5,300 per FEU at the beginning of January, although still well above the $1,500 per FEU observed a year ago. As spot rates retreat on the lane, forwarders say opportunistic shippers are booking space to the US for low-value commodities such as plywood, tile and paper, which prior to the price drop had been limited to less-expensive routes. “January and February demand does seem to be higher than January 2024,” said a Brazil-based forwarder. Demand for ECSA exports on the north-south trade to the US had been elevated through the second half of 2024; November marked the highest ECSA export volumes to the US since October 2022, with about 49,000 TEUs moved. About 45,000 TEUs were shipped in December, marking the second-strongest December ever on the trade. Meanwhile, data prepared for the Journal of Commerce by UK-based transport consultancy MDS Transmodal shows modest 4% growth in capacity on the Latin America-North America lane in the first quarter compared with the fourth quarter of 2024. According to a second Brazil-based forwarder, even with the capacity addition, the current downward move in rates is likely unsustainable. “[The lower rates] will bring in demand that the market won’t be able to accommodate for very long and we expect to see [general rate increases] from April forward,” said the source. Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com. ">laura.robb@spglobal.com</a>.</div>

Exporters shipping low-value products from Brazil to the US are taking advantage of depressed container spot rates driven by retreating volumes, a move forwarders say will hasten a rate recovery given the minimal capacity additions expected on the trade. Rates on the lane have been falling since mid-December, according to Platts, a sister company of the Journal of Commerce within S&P Global. Spot rates for cargo from the East Coast of South America (ECSA) bound for the US Gulf Coast were assessed at $3,400 per FEU on Wednesday, down from $5,300 per FEU at the beginning of January, although still well above the $1,500 per FEU observed a year ago. As spot rates retreat on the lane, forwarders say opportunistic shippers are booking space to the US for low-value commodities such as plywood, tile and paper, which prior to the price drop had been limited to less-expensive routes. “January and February demand does seem to be higher than January 2024,” said a Brazil-based forwarder. Demand for ECSA exports on the north-south trade to the US had been elevated through the second half of 2024; November marked the highest ECSA export volumes to the US since October 2022, with about 49,000 TEUs moved. About 45,000 TEUs were shipped in December, marking the second-strongest December ever on the trade. Meanwhile, data prepared for the Journal of Commerce by UK-based transport consultancy MDS Transmodal shows modest 4% growth in capacity on the Latin America-North America lane in the first quarter compared with the fourth quarter of 2024. According to a second Brazil-based forwarder, even with the capacity addition, the current downward move in rates is likely unsustainable. “[The lower rates] will bring in demand that the market won’t be able to accommodate for very long and we expect to see [general rate increases] from April forward,” said the source. Contact Laura Robb at laura.robb@spglobal.com .

Port News

International ports

Opportunistic Brazilian exporters move product to US amid spot rate retreat

<div class="phx-topic abstract-wrapper">Sources at Maersk and Hapag-Lloyd in India have confirmed that feeder services for the Bangladesh trade have not been included in the new network structure.</div>

Sources at Maersk and Hapag-Lloyd in India have confirmed that feeder services for the Bangladesh trade have not been included in the new network structure.

<div class="phx-topic">Shippers in Bangladesh who historically rely on feeder networks for trade flows are seemingly missing out on potential supply chain gains from Gemini Cooperation’s hub-and-spoke model designed around dedicated shuttle operations. Sources at Maersk and Hapag-Lloyd in India have confirmed that feeder services for the Bangladesh trade have not been included in the new network structure. “Gemini access for Bangladesh cargo remains confined to mainline transshipment options out of Colombo Port [Sri Lanka] and Tanjung Pelepas [Malaysia],” an official at a Gemini partner carrier who didn’t want to be identified told the Journal of Commerce. “There are no Gemini-specific shuttles [for Bangladesh].” Of the three weekly Gemini sailings out of India, only one string includes a direct call at Colombo, named the ME2 by Maersk and IEX by Hapag-Lloyd, that covers European trades. For Bangladesh-North America loads, Gemini offers Colombo relays via two Asia-US East Coast routings, known as the EC4 for Maersk and AA7 for Hapag-Lloyd. Feeder tonnage shortages and inherent operational strains at Bangladesh’s main port of Chittagong have been a source of concern for shippers and mainline operators, with recent <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fbangladeshs-supply-chains-grind-to-a-halt-amid-political-upheaval-5703092&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C735000f4b0264fd5914b08dd46abc42d%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C638744425725760591%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=PMB0zsAZdYg%2FSgqybY0FNicQdHgWORPdZG6uo9e1zqA%3D&amp;reserved=0">adverse political developments in the country</a> aggravating those pain points. Additionally, Colombo has been plagued by capacity challenges, typically making feeder calls the frontline casualty of berthing delays. Local industry experts believe reliable feeder connectivity is critical to Gemini driving the goal of predictable transits for trades in and out of Bangladesh. Maersk and Hapag-Lloyd generally use third-party or common feeders, mostly from Bangladesh-based HR Lines for the latter, for Chittagong-Colombo freight flows. The Gemini partners are betting that Bangladesh trade will markedly benefit from more consistent “hub sailings” as their independent attempts between 2019 and 2021 to provide direct southeast India-Europe routings via Colombo were hobbled by schedule disruptions, culminating in the halt of operations. “The Gemini network offers a robust alternative to previous arrangements, minimizing delays that were often encountered in the Asia-Europe network due to weather disruptions in Asia,” Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa, told the Journal of Commerce. “Bangladesh continues to maintain multiple cutoffs, a feature highly appreciated by our retail and lifestyle customers.” CMA CGM has also discontinued a direct Bangladesh-India-Gulf (BIGEX) loop it began in early 2023. “We are currently serving Bangladesh trade via Colombo,” a sales executive at CMA CGM India said. Local forwarder sources put average freight-all-kinds (FAK) rates for bookings from Chittagong to the US East Coast at $3,500 per TEU and $4,000 per FEU. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Shippers in Bangladesh who historically rely on feeder networks for trade flows are seemingly missing out on potential supply chain gains from Gemini Cooperation’s hub-and-spoke model designed around dedicated shuttle operations. Sources at Maersk and Hapag-Lloyd in India have confirmed that feeder services for the Bangladesh trade have not been included in the new network structure. “Gemini access for Bangladesh cargo remains confined to mainline transshipment options out of Colombo Port [Sri Lanka] and Tanjung Pelepas [Malaysia],” an official at a Gemini partner carrier who didn’t want to be identified told the Journal of Commerce. “There are no Gemini-specific shuttles [for Bangladesh].” Of the three weekly Gemini sailings out of India, only one string includes a direct call at Colombo, named the ME2 by Maersk and IEX by Hapag-Lloyd, that covers European trades. For Bangladesh-North America loads, Gemini offers Colombo relays via two Asia-US East Coast routings, known as the EC4 for Maersk and AA7 for Hapag-Lloyd. Feeder tonnage shortages and inherent operational strains at Bangladesh’s main port of Chittagong have been a source of concern for shippers and mainline operators, with recent adverse political developments in the country aggravating those pain points. Additionally, Colombo has been plagued by capacity challenges, typically making feeder calls the frontline casualty of berthing delays. Local industry experts believe reliable feeder connectivity is critical to Gemini driving the goal of predictable transits for trades in and out of Bangladesh. Maersk and Hapag-Lloyd generally use third-party or common feeders, mostly from Bangladesh-based HR Lines for the latter, for Chittagong-Colombo freight flows. The Gemini partners are betting that Bangladesh trade will markedly benefit from more consistent “hub sailings” as their independent attempts between 2019 and 2021 to provide direct southeast India-Europe routings via Colombo were hobbled by schedule disruptions, culminating in the halt of operations. “The Gemini network offers a robust alternative to previous arrangements, minimizing delays that were often encountered in the Asia-Europe network due to weather disruptions in Asia,” Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa, told the Journal of Commerce. “Bangladesh continues to maintain multiple cutoffs, a feature highly appreciated by our retail and lifestyle customers.” CMA CGM has also discontinued a direct Bangladesh-India-Gulf (BIGEX) loop it began in early 2023. “We are currently serving Bangladesh trade via Colombo,” a sales executive at CMA CGM India said. Local forwarder sources put average freight-all-kinds (FAK) rates for bookings from Chittagong to the US East Coast at $3,500 per TEU and $4,000 per FEU. Contact Bency Mathew at bencyvmathew@gmail.com .

Bangladesh shippers find no place in Gemini’s integrated shuttle plan

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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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Filling the Supply Chain Education Gap with LTL Education Courses

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