<div class="phx-topic abstract-wrapper">Blue Dart Express, India’s leading air express and logistics services provider, reported relatively flat fiscal second-quarter net profit as a 24 percent rise in operating costs offset a 23.5 percent increase in operating revenue.</div>

Blue Dart Express, India’s leading air express and logistics services provider, reported relatively flat fiscal second-quarter net profit as a 24 percent rise in operating costs offset a 23.5 percent increase in operating revenue.

<div>Blue Dart Express, India’s leading air express and logistics services provider, reported relatively flat fiscal second-quarter net profit as a 24 percent rise in operating costs offset a 23.5 percent increase in operating revenue.The company booked a $5 million net income for the three months through September, compared with $4.93 million a year earlier, on revenue of $95.4 million, up from $77.3 million.Second-quarter operating profit amounted to $7.6 million, compared with $7.1 million for the same period in 2013.Operating costs for the three-month period totaled $88.8 million, up from $71.6 million.“We have sustained our growth momentum in our performance this...

Blue Dart Express, India’s leading air express and logistics services provider, reported relatively flat fiscal second-quarter net profit as a 24 percent rise in operating costs offset a 23.5 percent increase in operating revenue. The company booked a $5 million net income for the three months through September, compared with $4.93 million a year earlier, on revenue of $95.4 million, up from $77.3 million. Second-quarter operating profit amounted to $7.6 million, compared with $7.1 million for the same period in 2013. Operating costs for the three-month period totaled $88.8 million, up from $71.6 million. “We have sustained our growth momentum in our performance this quarter. Despite a challenging macro-economic environment, Blue Dart has continued to be resilient and has displayed exemplary quality and service excellence,” said Anil Khanna, managing director, releasing the earnings statement. “Going forward, we will continue to drive our business through the widest range of innovative products and services with the support of our passionate people force, dedicated air and ground infrastructure and superior technology." In the first fiscal half, from April through September, the company made a net profit of $10.6 million, down 9 percent year-over-year from $11.6 million. Half-yearly revenue climbed 20 percent to $181.8 million. Blue Dart, part of the Deutsche Post DHL Group, currently has a fleet of five Boeing freighters, and covers more than 35,000 locations in India.

Air Cargo Forwarder News

Higher operating costs stunt fiscal 2Q gains at Blue Dart Express

<div class="phx-topic abstract-wrapper">Rather than shift sourcing, some shippers are negotiating with suppliers to share the costs of increased US import tariffs, an international trade attorney told the Journal of Commerce’s Breakbulk and Project Cargo Conference. </div>

Rather than shift sourcing, some shippers are negotiating with suppliers to share the costs of increased US import tariffs, an international trade attorney told the Journal of Commerce’s Breakbulk and Project Cargo Conference.

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<div class="phx-topic">New Orleans -- Sharing costs with suppliers and reconsidering the country of origin for certain imports will be important mitigation strategies for US breakbulk importers as the Trump administration imposes — and rescinds — tariffs and port fees, an international trade attorney told the Journal of Commerce’s Breakbulk and Project Cargo Conference. Neha Dhindsa, counsel with Venable LLP in Washington, DC, said importers are struggling to adjust their supply chains to a trade policy landscape that can shift multiple times in a single day. Tariffs on goods produced in China, Canada, and Mexico are likely to persist, but the latest indications suggest the Trump administration could soon reduce tariffs on other countries that are offering concessions, she said. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5992239_0.1.jpg"></img></div>“There’s no magic answer I have. But we are recommending first to clients that they don't make any big moves just yet,” said Dhindsa, whose practice focuses on international trade, customs, maritime and transportation issues. “The language has definitely softened this week, and it seems like both [the US and China] are negotiating or open to negotiations.” To take the sting out of tariffs, some importers are renegotiating contracts with suppliers to share the additional costs. “We’re seeing, for the most part, that [suppliers] actually are willing, especially at the 10% rate,” she said. For material purchases with long lead times, Dhindsa said shippers should consider the administration’s relationship with the country of origin. “If it seems like the administration is taking a very hardline stance toward them, then you would start looking at where else you could move manufacturing or suppliers,” she said. Dhindsa cautioned, however, that to ensure compliance with US Customs and Border Protection (CBP) requirements, it’s imperative for importers to meticulously document any significant changes in cargo origin, classification or valuation and, if possible, obtain a ruling from CBP confirming those changes. “We’re seeing and expecting pretty strict enforcement from CBP,” she said. In addition, Dhindsa said shippers should reach out to elected representatives, especially Republicans, to alert them of any significant tariff impacts to their states, especially if there’s any potential for job losses. “They can make the case on your behalf to administration officials, and having these points of contact can also position companies to ask for some relief down the road,” she said. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

New Orleans -- Sharing costs with suppliers and reconsidering the country of origin for certain imports will be important mitigation strategies for US breakbulk importers as the Trump administration imposes — and rescinds — tariffs and port fees, an international trade attorney told the Journal of Commerce’s Breakbulk and Project Cargo Conference. Neha Dhindsa, counsel with Venable LLP in Washington, DC, said importers are struggling to adjust their supply chains to a trade policy landscape that can shift multiple times in a single day. Tariffs on goods produced in China, Canada, and Mexico are likely to persist, but the latest indications suggest the Trump administration could soon reduce tariffs on other countries that are offering concessions, she said. “There’s no magic answer I have. But we are recommending first to clients that they don't make any big moves just yet,” said Dhindsa, whose practice focuses on international trade, customs, maritime and transportation issues. “The language has definitely softened this week, and it seems like both [the US and China] are negotiating or open to negotiations.” To take the sting out of tariffs, some importers are renegotiating contracts with suppliers to share the additional costs. “We’re seeing, for the most part, that [suppliers] actually are willing, especially at the 10% rate,” she said. For material purchases with long lead times, Dhindsa said shippers should consider the administration’s relationship with the country of origin. “If it seems like the administration is taking a very hardline stance toward them, then you would start looking at where else you could move manufacturing or suppliers,” she said. Dhindsa cautioned, however, that to ensure compliance with US Customs and Border Protection (CBP) requirements, it’s imperative for importers to meticulously document any significant changes in cargo origin, classification or valuation and, if possible, obtain a ruling from CBP confirming those changes. “We’re seeing and expecting pretty strict enforcement from CBP,” she said. In addition, Dhindsa said shippers should reach out to elected representatives, especially Republicans, to alert them of any significant tariff impacts to their states, especially if there’s any potential for job losses. “They can make the case on your behalf to administration officials, and having these points of contact can also position companies to ask for some relief down the road,” she said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk carriers

Project cargo

Breakbulk News

Breakbulk25: Cost sharing could help breakbulk importers ease tariff burdens

<div class="phx-topic abstract-wrapper">If regulatory approval is achieved, the deal will nearly double the size of CMA CGM subsidiary CEVA Logistics’ footprint in a rapidly expanding region.</div>

If regulatory approval is achieved, the deal will nearly double the size of CMA CGM subsidiary CEVA Logistics’ footprint in a rapidly expanding region.

<div class="phx-topic">CEVA Logistics’ $440 million takeover of Turkey-based logistics provider Borusan Tedarik will almost double the CMA CGM subsidiary’s warehousing and distribution operations in Turkey while increasing its ocean volume by 25%, CEVA said in a statement Monday. The deal, which adds another major forwarder to CMA CGM’s expanding growth-by-acquisition portfolio, includes Borusan Tedarik subsidiaries in Germany, Bulgaria, Hong Kong and China. Mathieu Friedberg, CEO of CEVA Logistics, said the company is positioning itself to capture expected growth in demand for logistics services in Turkey. “As a Top 5 global logistics player, we have identified Turkey as one of our strategic geographies where we expect to grow significantly,” he said in the statement, adding that Borusan Tedarik’s services would enable CEVA to outpace the market. Borusan Tedarik offers logistics solutions in Turkey that include contract logistics, finished vehicle logistics, full truckload and less-than-truckload ground transport, as well as air and ocean freight and customs services. Privately held Borusan Holding currently owns 69.47% of Borusan Tedarik’s shares, while the remaining 30.53% is held by publicly traded Borusan Yatırım. Although still subject to regulatory approval, CEVA signed a binding agreement to acquire 100% of the company, which reported gross revenue of $567 million in 2024. The acquisition will add 570,000 square meters to CEVA’s existing 620,000 square meters of warehouse space in Turkey and combined ground transport activities that perform almost 1 million domestic transports per year. Borusan Tedarik’s automotive segment, a key vertical for the forwarder, will be incorporated into CEVA’s growing finished vehicle logistics footprint, pushing the combined entity into the top three players in Turkey in this segment and the top five air freight handlers in the country. CEVA Logistics has expanded significantly since being acquired by CMA CGM in 2019. As the group’s strategic third-party logistics pillar, CEVA has integrated large players, including <a href="https://www.joc.com/article/cma-cgm-grows-e-commerce-platform-3-billion-logistics-acquisition_20211208.html">Ingram Micro’s CLS division</a>, <a href="https://www.joc.com/article/cma-cgm-takes-over-formerly-russian-held-gefco_20220408.html">GEFCO</a>, and, most recently, <a href="https://www.joc.com/article/ceva-integrating-bollor-restructuring-company-to-unlock-product-verticals-5192156">Bolloré Logistics</a>. The forwarder has also made several bolt-on acquisitions around the world and launched joint ventures to accelerate its growth in key geographies or market sectors. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

CEVA Logistics’ $440 million takeover of Turkey-based logistics provider Borusan Tedarik will almost double the CMA CGM subsidiary’s warehousing and distribution operations in Turkey while increasing its ocean volume by 25%, CEVA said in a statement Monday. The deal, which adds another major forwarder to CMA CGM’s expanding growth-by-acquisition portfolio, includes Borusan Tedarik subsidiaries in Germany, Bulgaria, Hong Kong and China. Mathieu Friedberg, CEO of CEVA Logistics, said the company is positioning itself to capture expected growth in demand for logistics services in Turkey. “As a Top 5 global logistics player, we have identified Turkey as one of our strategic geographies where we expect to grow significantly,” he said in the statement, adding that Borusan Tedarik’s services would enable CEVA to outpace the market. Borusan Tedarik offers logistics solutions in Turkey that include contract logistics, finished vehicle logistics, full truckload and less-than-truckload ground transport, as well as air and ocean freight and customs services. Privately held Borusan Holding currently owns 69.47% of Borusan Tedarik’s shares, while the remaining 30.53% is held by publicly traded Borusan Yatırım. Although still subject to regulatory approval, CEVA signed a binding agreement to acquire 100% of the company, which reported gross revenue of $567 million in 2024. The acquisition will add 570,000 square meters to CEVA’s existing 620,000 square meters of warehouse space in Turkey and combined ground transport activities that perform almost 1 million domestic transports per year. Borusan Tedarik’s automotive segment, a key vertical for the forwarder, will be incorporated into CEVA’s growing finished vehicle logistics footprint, pushing the combined entity into the top three players in Turkey in this segment and the top five air freight handlers in the country. CEVA Logistics has expanded significantly since being acquired by CMA CGM in 2019. As the group’s strategic third-party logistics pillar, CEVA has integrated large players, including Ingram Micro’s CLS division , GEFCO , and, most recently, Bolloré Logistics . The forwarder has also made several bolt-on acquisitions around the world and launched joint ventures to accelerate its growth in key geographies or market sectors. Contact Greg Knowler at greg.knowler@spglobal.com .

Industrial Real Estate News

Forwarding

Supply chain

CEVA expands reach in Turkey with $440 million acquisition

<div class="phx-topic abstract-wrapper">The flagship of Santos Brasil is Tecon Santos, the largest container terminal in South America with a capacity of 2.5 million TEUs that will soon be expanded to 3 million TEUs.</div>

The flagship of Santos Brasil is Tecon Santos, the largest container terminal in South America with a capacity of 2.5 million TEUs that will soon be expanded to 3 million TEUs.

<div class="phx-topic">CMA CGM is on course to take full ownership of Santos Brasil, which operates South America’s largest container terminal, in a deal worth about $2.3 billion, the company confirmed Friday. The shipping, air cargo and ports conglomerate said it became the majority shareholder in Santos Brasil with a 51% stake after its $1 billion purchase of a 47.9% interest from fund management company Opportunity was approved by Brazil’s regulatory authorities. CMA CGM already held a 3.1% share in the terminal operator that it bought in September, <a href="https://www.joc.com/article/cma-cgm-moves-to-take-over-top-brazilian-terminal-operator-5732689">the same time it made its initial bid for the stake held by Opportunity</a>. The acquisition will give CMA CGM direct control of its container operations in a port where rivals Maersk and Mediterranean Shipping Co. operate Brasil Terminal Portuário (BTP) and DP World operates its Santos terminal. CMA CGM said it will now make a mandatory tender offer through its port company, CMA Terminals Atlantic, to acquire the remaining 49% in Santos Brasil held by other shareholders for the same price and conditions paid to Opportunity. Shareholder acceptance of CMA CGM’s offer will depend on the outcome of a special shareholders meeting on April 29 called to approve an independent financial appraiser that will set a minimum price for the outstanding shares. The minimum price could be less, more or equal to the price per share paid by CMA Terminals for the shares held by Opportunity. CMA CGM plans to delist Santos Brasil once full ownership is confirmed. <h3>Largest terminal in South America</h3>The flagship of Santos Brasil is Tecon Santos, the largest container terminal in South America with a capacity of 2.5 million TEUs that will soon be expanded to 3 million TEUs, CMA CGM has said previously. Its three berths can handle ships of up to 14,000 TEUs. The terminal handles about 16% of Brazil’s total container volumes. Santos Brasil also controls vehicle, breakbulk and liquids terminals as well as port-related logistics operations. Mauricio Fisch, director of Brazil freight forwarder Ocean Express, part of the HTFN Global Logistics Network, said CMA CGM’s deal is so recent that forwarders have not seen any real impact or heard what the carrier plans to do. “But purchasing the biggest container terminal in Santos, I am sure they will try to concentrate their services there and use the capacity of the terminal as a hub for their transshipments in Brazil,” Fisch told the Journal of Commerce Friday. The deal comes as ocean carriers move to take greater control of terminal assets, most notably MSC subsidiary Terminal Investment Limited’s (TiL’s) involvement with BlackRock <a href="https://www.joc.com/article/hutchison-to-delay-panama-ports-deal-signing-amid-growing-beijing-pressure-5971728">in the closely watched proposed acquisition of CK Hutchison assets</a>.Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

CMA CGM is on course to take full ownership of Santos Brasil, which operates South America’s largest container terminal, in a deal worth about $2.3 billion, the company confirmed Friday. The shipping, air cargo and ports conglomerate said it became the majority shareholder in Santos Brasil with a 51% stake after its $1 billion purchase of a 47.9% interest from fund management company Opportunity was approved by Brazil’s regulatory authorities. CMA CGM already held a 3.1% share in the terminal operator that it bought in September, the same time it made its initial bid for the stake held by Opportunity . The acquisition will give CMA CGM direct control of its container operations in a port where rivals Maersk and Mediterranean Shipping Co. operate Brasil Terminal Portuário (BTP) and DP World operates its Santos terminal. CMA CGM said it will now make a mandatory tender offer through its port company, CMA Terminals Atlantic, to acquire the remaining 49% in Santos Brasil held by other shareholders for the same price and conditions paid to Opportunity. Shareholder acceptance of CMA CGM’s offer will depend on the outcome of a special shareholders meeting on April 29 called to approve an independent financial appraiser that will set a minimum price for the outstanding shares. The minimum price could be less, more or equal to the price per share paid by CMA Terminals for the shares held by Opportunity. CMA CGM plans to delist Santos Brasil once full ownership is confirmed. Largest terminal in South America The flagship of Santos Brasil is Tecon Santos, the largest container terminal in South America with a capacity of 2.5 million TEUs that will soon be expanded to 3 million TEUs, CMA CGM has said previously. Its three berths can handle ships of up to 14,000 TEUs. The terminal handles about 16% of Brazil’s total container volumes. Santos Brasil also controls vehicle, breakbulk and liquids terminals as well as port-related logistics operations. Mauricio Fisch, director of Brazil freight forwarder Ocean Express, part of the HTFN Global Logistics Network, said CMA CGM’s deal is so recent that forwarders have not seen any real impact or heard what the carrier plans to do. “But purchasing the biggest container terminal in Santos, I am sure they will try to concentrate their services there and use the capacity of the terminal as a hub for their transshipments in Brazil,” Fisch told the Journal of Commerce Friday. The deal comes as ocean carriers move to take greater control of terminal assets, most notably MSC subsidiary Terminal Investment Limited’s (TiL’s) involvement with BlackRock in the closely watched proposed acquisition of CK Hutchison assets . Contact Keith Wallis at keithwallis@hotmail.com .

Container Shipping News

Port News

Container lines

Marine terminals

International ports

Maritime

CMA CGM becomes majority shareholder in Santos Brasil terminal operator

<div class="phx-topic abstract-wrapper">Shippers and service providers say much of the project cargo industry dodged a bullet with the latest US fee proposal targeting Chinese-built ships.</div>

Shippers and service providers say much of the project cargo industry dodged a bullet with the latest US fee proposal targeting Chinese-built ships.

<div class="phx-topic">New Orleans — Large energy projects are being paused due to tariff concerns, but that could lead to a robust second half of 2025 for the project cargo sector if shippers feel more certainty about trade policy in the months ahead. “With existing projects, we’re not seeing much impact. They’re being executed,” Jake Swanson, regional vice president of DHL Industrial Projects, told the Journal of Commerce’s Breakbulk and Project Cargo Conference Thursday. “But new projects, especially high-value ones, we’ve seen a slowdown, or a pause. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5990612_0.1.jpg"></img></div>“There’s just general uneasiness and we’ve noticed that in terms of [requests for quotes] we’re seeing,” he added. Swanson said activity around smaller and medium-sized projects that are less capital-intensive is still strong and that there is optimism for the second half of 2025 when much of the activity currently on pause may unlock. “Hopefully it’s not just wishful thinking,” he said. “Maybe some of the bigger projects will fall into second half of the year and solutions will be found to some of these questions around sourcing due to the tariffs.” Shippers are also optimistic about projects carrying on despite headwinds from trade policy actions between the US and China and the US Trade Representative’s (USTR) planned fees on Chinese-built ships. A significant portion of the fleet serving project shippers would be exempt from the heaviest levies on Chinese ships, according to the latest proposal the USTR has floated. “We dodged a bullet with regard to the Chinese vessel port tax,” Bob Drew, director of chartering and operations for Tata International Metals (Americas), told the conference. “Most of what we use fits within two of the exception categories.” <h3>‘Not easy to change sourcing quickly’ </h3>Felix Schoeller, director at project carrier AAL Shipping, said service providers are accounting for “quite a rapid shift” in the types of cargo their customers are moving. “The pipeline was quite positive for oil and gas and renewables — all three had a positive outlook,” he said. “Now, with tariffs, it’s not easy to change sourcing quickly away from China, and renewables are a bit out of favor.” Still, Schoeller said he thinks 2026 and 2027 will see robust demand and that the priority will be for shippers to work collaboratively and proactively with their forwarders and carriers. Drew said the “the biggest concern we have is what’s going to happen to the economy,” but that it’s not helpful to get too distracted by the frequent trade policy changes. “Ignoring some of the policies that are unlikely to materialize is something we have to do,” he said. “If we took the position that the worst-case would happen, we’d have left opportunities on the table. There’s no evidence that the world is coming to an end.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

New Orleans — Large energy projects are being paused due to tariff concerns, but that could lead to a robust second half of 2025 for the project cargo sector if shippers feel more certainty about trade policy in the months ahead. “With existing projects, we’re not seeing much impact. They’re being executed,” Jake Swanson, regional vice president of DHL Industrial Projects, told the Journal of Commerce’s Breakbulk and Project Cargo Conference Thursday. “But new projects, especially high-value ones, we’ve seen a slowdown, or a pause. “There’s just general uneasiness and we’ve noticed that in terms of [requests for quotes] we’re seeing,” he added. Swanson said activity around smaller and medium-sized projects that are less capital-intensive is still strong and that there is optimism for the second half of 2025 when much of the activity currently on pause may unlock. “Hopefully it’s not just wishful thinking,” he said. “Maybe some of the bigger projects will fall into second half of the year and solutions will be found to some of these questions around sourcing due to the tariffs.” Shippers are also optimistic about projects carrying on despite headwinds from trade policy actions between the US and China and the US Trade Representative’s (USTR) planned fees on Chinese-built ships. A significant portion of the fleet serving project shippers would be exempt from the heaviest levies on Chinese ships, according to the latest proposal the USTR has floated. “We dodged a bullet with regard to the Chinese vessel port tax,” Bob Drew, director of chartering and operations for Tata International Metals (Americas), told the conference. “Most of what we use fits within two of the exception categories.” ‘Not easy to change sourcing quickly’ Felix Schoeller, director at project carrier AAL Shipping, said service providers are accounting for “quite a rapid shift” in the types of cargo their customers are moving. “The pipeline was quite positive for oil and gas and renewables — all three had a positive outlook,” he said. “Now, with tariffs, it’s not easy to change sourcing quickly away from China, and renewables are a bit out of favor.” Still, Schoeller said he thinks 2026 and 2027 will see robust demand and that the priority will be for shippers to work collaboratively and proactively with their forwarders and carriers. Drew said the “the biggest concern we have is what’s going to happen to the economy,” but that it’s not helpful to get too distracted by the frequent trade policy changes. “Ignoring some of the policies that are unlikely to materialize is something we have to do,” he said. “If we took the position that the worst-case would happen, we’d have left opportunities on the table. There’s no evidence that the world is coming to an end.” Contact Eric Johnson at eric.johnson@spglobal.com .

Transport, Trade and Regulation News

Breakbulk25: Trade policy headwinds haven’t dampened all optimism

<div class="phx-topic abstract-wrapper">The unknowns surrounding US tariffs and proposed fees on Chinese tonnage are forcing shipowners to take a wait-and-see approach to ordering new vessels.</div>

The unknowns surrounding US tariffs and proposed fees on Chinese tonnage are forcing shipowners to take a wait-and-see approach to ordering new vessels.

<div class="phx-topic">New Orleans — Early engagement with shippers, flexibility with charter contracts and day-to-day agility will be key to the fleet strategies of breakbulk and project cargo carriers as they grapple with capacity limitations and the threat of tariffs, a panel of multipurpose vessel/heavy-lift (MPV/HL) operators told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “The best advice to our clients would be that tomorrow is not today,” Anders Hyrup, president of JSI Alliance, said Thursday. JSI operates super-heavy carriers Jumbo, SAL and Intermarine. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5990612_0.1.jpg"></img></div>MPV/HL operators are struggling to replace capacity despite a surge of new ship orders in the last quarter of 2024. And now the sector is staring down hefty fees <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">the US Trade Representative (USTR) plans to impose on Chinese-built vessels that call the US</a>. Only eight MPV/HL ships are not Chinese-owned. The unknowns surrounding fees are forcing owners to take a wait-and-see approach to ordering new vessels. Pieter Flohil, managing director with Dutch MPV/HL operator Spliethoff, said the company has been looking to expand its fleet but has put those plans on pause amid concerns over US tariff policy and proposed ship fees. “We’re in a very capital-intensive business, and we as a group are very conservative in terms of our risk,” Flohil said. “And at the moment, we really want to see which way the world is going.” Tim Kopfensteiner, president of German MPV/HL operator BBC Chartering USA, said the fee exemptions — which include the company’s vessels — have given him cautious optimism. “To do a complete 180 on our strategy for something that could be there for 30 days, four years, eight years — it’s a very, very difficult decision to make,” he said. <h3>Contract changes </h3>In terms of chartering, some vessel owners are taking steps to get ahead of US ship fees by including clauses in contracts that address the charges. Operators on Thursday’s panel said there has been some pushback, but otherwise most shippers have been receptive to the clauses in anticipation of fees. “I think there was some understanding from the shippers’ side because there’s not much you can do about it,” said Melanie Drehkopf, chief commercial officer for Hamburg-based MPV/HL operator dship Carriers. Hyrup said even though the contract clauses were triggered by USTR, they could become standard practice given ongoing trade uncertainties. “I think this is a clause we have to get used to in this industry, that this will be permanent,” he said. “Because we have these changes over and over and over.” With competition from other carrier sectors likely to heat up — and an influx of containers likely to spill over into the MPV/HL sector over the summer — Hyrup said early engagement with shippers will be important. “It would be nice if everybody just decided to swim in their own lane,” he said. “But that’s not happening.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

New Orleans — Early engagement with shippers, flexibility with charter contracts and day-to-day agility will be key to the fleet strategies of breakbulk and project cargo carriers as they grapple with capacity limitations and the threat of tariffs, a panel of multipurpose vessel/heavy-lift (MPV/HL) operators told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “The best advice to our clients would be that tomorrow is not today,” Anders Hyrup, president of JSI Alliance, said Thursday. JSI operates super-heavy carriers Jumbo, SAL and Intermarine. MPV/HL operators are struggling to replace capacity despite a surge of new ship orders in the last quarter of 2024. And now the sector is staring down hefty fees the US Trade Representative (USTR) plans to impose on Chinese-built vessels that call the US . Only eight MPV/HL ships are not Chinese-owned. The unknowns surrounding fees are forcing owners to take a wait-and-see approach to ordering new vessels. Pieter Flohil, managing director with Dutch MPV/HL operator Spliethoff, said the company has been looking to expand its fleet but has put those plans on pause amid concerns over US tariff policy and proposed ship fees. “We’re in a very capital-intensive business, and we as a group are very conservative in terms of our risk,” Flohil said. “And at the moment, we really want to see which way the world is going.” Tim Kopfensteiner, president of German MPV/HL operator BBC Chartering USA, said the fee exemptions — which include the company’s vessels — have given him cautious optimism. “To do a complete 180 on our strategy for something that could be there for 30 days, four years, eight years — it’s a very, very difficult decision to make,” he said. Contract changes In terms of chartering, some vessel owners are taking steps to get ahead of US ship fees by including clauses in contracts that address the charges. Operators on Thursday’s panel said there has been some pushback, but otherwise most shippers have been receptive to the clauses in anticipation of fees. “I think there was some understanding from the shippers’ side because there’s not much you can do about it,” said Melanie Drehkopf, chief commercial officer for Hamburg-based MPV/HL operator dship Carriers. Hyrup said even though the contract clauses were triggered by USTR, they could become standard practice given ongoing trade uncertainties. “I think this is a clause we have to get used to in this industry, that this will be permanent,” he said. “Because we have these changes over and over and over.” With competition from other carrier sectors likely to heat up — and an influx of containers likely to spill over into the MPV/HL sector over the summer — Hyrup said early engagement with shippers will be important. “It would be nice if everybody just decided to swim in their own lane,” he said. “But that’s not happening.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Heavy-haul transport

Breakbulk25: Capacity-limited MPV operators reconsider fleet expansion

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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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