<div class="phx-topic abstract-wrapper">IAG Cargo, the single business created following the merger of British Airways World Cargo and Iberia Cargo, today launched Cargo Connector...</div>

IAG Cargo, the single business created following the merger of British Airways World Cargo and Iberia Cargo, today launched Cargo Connector...

<div>IAG Cargo, the single business created following the merger of British Airways World Cargo and Iberia Cargo, today <a>launched Cargo Connector</a>, a UK service available to freight forwarders operating within the Heathrow catchment area with consignments of 300 kilos (about 661 pounds) or less, allowing forwarders to have small consignments picked up and delivered to the airport.Freight forwarders do not have to arrange and pay for pickup of their consignments and do not have to arrange their own transportation for airport delivery, allowing for better vehicle and driver efficiency and eliminating potential wait times during busy periods, the company said.</div>...

IAG Cargo, the single business created following the merger of British Airways World Cargo and Iberia Cargo, today launched Cargo Connector , a UK service available to freight forwarders operating within the Heathrow catchment area with consignments of 300 kilos (about 661 pounds) or less, allowing forwarders to have small consignments picked up and delivered to the airport. Freight forwarders do not have to arrange and pay for pickup of their consignments and do not have to arrange their own transportation for airport delivery, allowing for better vehicle and driver efficiency and eliminating potential wait times during busy periods, the company said.

Air Cargo Carriers News

IAG Cargo Launches UK Collection Service for Small Freight

<div class="phx-topic abstract-wrapper">The twin complaints to the FMC charge that several ocean carriers pushed the shippers into paying surcharges and premium rates totaling $5.5 million, while creating another $76 million in added spot market costs. </div>

The twin complaints to the FMC charge that several ocean carriers pushed the shippers into paying surcharges and premium rates totaling $5.5 million, while creating another $76 million in added spot market costs.

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<div class="phx-topic">Two US shippers, including the parent company of retailer Crate &amp; Barrel, want the Federal Maritime Commission to investigate ocean carriers for not providing enough vessel space during the pandemic surge, alleging they also extracted surcharges and higher rates for previously agreed-upon container volumes in violation of US shipping law and forced the shippers into the then-costly spot market. The complaints are a further shot across the bow on the enforceability of service contracts and whether service refusals for some customers were a legitimate response to overwhelming demand during the COVID-19 era. In a pair of complaints published by FMC last week, Euromarket Designs, the parent of Crate &amp; Barrel, and housewares and furniture distributor Nielsen &amp; Bainbridge both allege that a host of ocean carriers failed to honor service contracts with the two shippers between 2020 and 2022, resulting in delays and a shortfall in expected cargo volumes. Instead, the shippers claim that carriers sought surcharges for getting their allocated cargo on a ship. All in, Euromarket said its freight bills with Mediterranean Shipping Co. (MSC), HMM and Ocean Network Express (ONE) increased $5.5 million due to surcharges and higher rates. Nielsen &amp; Bainbridge said it paid $4 million more to ONE, OOCL and Evergreen Line for carrying cargo under its existing contracts.Even with the premiums, the two shippers said they were not able to get all the space they required during the 2020 through 2022 service years. As a result, they were forced into the spot market where they say they paid a combined $76.5 million for capacity they expected to get under their service contracts. Nielsen &amp; Bainbridge filed for bankruptcy last year, turning itself over to private equity lenders KKR &amp; Co. and Silver Point Capital. The company said in its filing the higher freight costs “significantly contributed” to its bankruptcy. Along with an FMC investigation, the complainants asked for reparations from the carriers for the alleged violations. Representatives of the carriers did not immediately respond to the allegations. <h3>Similar complaints lobbed at carriers </h3>The twin complaints mirror similar ones filed in the wake of the pandemic-era container surge alleging refusal of service by carriers, with those cases having mixed success. MCS Industries, another home goods importer, alleged in 2021 that MSC and Cosco Shipping <a href="https://www.joc.com/article/us-importer-complains-of-container-line-collusion-to-fmc-5249085">failed to honor service contracts</a> and agreed-upon rate structures, the first such complaint on the issue of service contract fulfillment. MCS eventually entered into a settlement with Cosco.Food importer MSRF alleged in 2022 that HMM and Yang Ming did not honor service contracts that forced the shipper into the more expensive spot market. An FMC administrative law judge found <a href="https://www.joc.com/article/fmc-judge-rules-in-favor-of-hmm-in-rolled-cargo-complaint-5220361">HMM did try to accommodate MSRF’s cargo</a> by renegotiating contracts, while Yang Ming eventually settled with the shipper. Prior to the two recent filings, the largest complaints about refusal of service have come from Bed Bath &amp; Beyond. The bankrupt retailer alleged in <a href="https://www.joc.com/article/bed-bath-beyond-files-fmc-complaint-against-yang-ming-in-capacity-dispute-5220648">two complaints from 2023</a> that OOCL and Yang Ming caused a combined $40 million in damages for their alleged refusal to provide sufficient vessel space under existing contracts. The two cases are still pending. The alleged violations occurred before the June 2022 implementation of the Ocean Shipping Reform Act of 2022 (OSRA-22), which prohibits ocean carriers from <a href="https://www.joc.com/article/fmc-refusal-of-service-rule-risks-overreacting-to-pandemic-market-5216058">“unreasonable refusals” of cargo space to shippers</a>. In July 2024, the FMC published its final rules on how it would treat instances where carriers refused cargo space to customers. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Two US shippers, including the parent company of retailer Crate & Barrel, want the Federal Maritime Commission to investigate ocean carriers for not providing enough vessel space during the pandemic surge, alleging they also extracted surcharges and higher rates for previously agreed-upon container volumes in violation of US shipping law and forced the shippers into the then-costly spot market. The complaints are a further shot across the bow on the enforceability of service contracts and whether service refusals for some customers were a legitimate response to overwhelming demand during the COVID-19 era. In a pair of complaints published by FMC last week, Euromarket Designs, the parent of Crate & Barrel, and housewares and furniture distributor Nielsen & Bainbridge both allege that a host of ocean carriers failed to honor service contracts with the two shippers between 2020 and 2022, resulting in delays and a shortfall in expected cargo volumes. Instead, the shippers claim that carriers sought surcharges for getting their allocated cargo on a ship. All in, Euromarket said its freight bills with Mediterranean Shipping Co. (MSC), HMM and Ocean Network Express (ONE) increased $5.5 million due to surcharges and higher rates. Nielsen & Bainbridge said it paid $4 million more to ONE, OOCL and Evergreen Line for carrying cargo under its existing contracts. Even with the premiums, the two shippers said they were not able to get all the space they required during the 2020 through 2022 service years. As a result, they were forced into the spot market where they say they paid a combined $76.5 million for capacity they expected to get under their service contracts. Nielsen & Bainbridge filed for bankruptcy last year, turning itself over to private equity lenders KKR & Co. and Silver Point Capital. The company said in its filing the higher freight costs “significantly contributed” to its bankruptcy. Along with an FMC investigation, the complainants asked for reparations from the carriers for the alleged violations. Representatives of the carriers did not immediately respond to the allegations. Similar complaints lobbed at carriers The twin complaints mirror similar ones filed in the wake of the pandemic-era container surge alleging refusal of service by carriers, with those cases having mixed success. MCS Industries, another home goods importer, alleged in 2021 that MSC and Cosco Shipping failed to honor service contracts and agreed-upon rate structures, the first such complaint on the issue of service contract fulfillment. MCS eventually entered into a settlement with Cosco. Food importer MSRF alleged in 2022 that HMM and Yang Ming did not honor service contracts that forced the shipper into the more expensive spot market. An FMC administrative law judge found HMM did try to accommodate MSRF’s cargo by renegotiating contracts, while Yang Ming eventually settled with the shipper. Prior to the two recent filings, the largest complaints about refusal of service have come from Bed Bath & Beyond. The bankrupt retailer alleged in two complaints from 2023 that OOCL and Yang Ming caused a combined $40 million in damages for their alleged refusal to provide sufficient vessel space under existing contracts. The two cases are still pending. The alleged violations occurred before the June 2022 implementation of the Ocean Shipping Reform Act of 2022 (OSRA-22), which prohibits ocean carriers from “unreasonable refusals” of cargo space to shippers . In July 2024, the FMC published its final rules on how it would treat instances where carriers refused cargo space to customers. Contact Michael Angell at michael.angell@spglobal.com

Container lines

Transport, Trade and Regulation News

Two US shippers latest to allege carriers bumped contract cargo to spot market

<div class="phx-topic abstract-wrapper">Shipper-paid spot truck pricing from major US ports rose faster than the average US rate in late 2024 as importers prepared for a potential longshore strike.</div>

Shipper-paid spot truck pricing from major US ports rose faster than the average US rate in late 2024 as importers prepared for a potential longshore strike.

<div class="phx-topic">The cost of hauling goods from major US seaport markets jumped significantly toward the end of 2024, with outbound truckload spot rates that rose in a normal seasonal pattern getting an additional boost from a potential strike at ports along the East and Gulf coasts. Whether spot rates from US ports will continue to rise now that the threat of a longshore labor crisis <a href="https://www.joc.com/article/ila-usmx-reach-tentative-deal-that-avoids-another-port-strike-5919519">appears to have been avoided</a> is unclear as truckload demand and pricing nationwide struggle to rise out of the trough they’ve been in since mid-2023. The average outbound dry-van shipper-paid truckload spot rate from New York and New Jersey rose 7% month-on-month in December to $2.38 per mile, according to a Journal of Commerce analysis of pricing data on more than 4,000 lanes from DAT Freight &amp; Analytics, Loadsmart, Sunset Transportation, and a survey of truckload brokers. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="85735c83-384d-4a76-8c32-aba98a29c1a8"></dynamic-object></div>On the West Coast, the average outbound truckload spot rate from Los Angeles rose 5% in December to $2.77 per mile, a 26-month high. In Seattle, the average rate rose 4% from the prior month, climbing to $2.37 per mile. That was a 19% increase for Seattle from May, which coupled with a 10.8% rate hike from Los Angeles in the same period points to the impact of cargo shifting from the East and Gulf coasts -- and from Canada in the case of Seattle -- to the West. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b11cfbac-4bbf-48e7-b4cd-2b6fe7e02d82"></dynamic-object></div>In contrast, the Journal of Commerce <a href="https://www.joc.com/article/us-truckload-spot-rates-rising-but-shippers-keeping-lid-on-contract-rates-5919921">national average shipper-paid spot rate</a> stayed in a narrow price band of $2.16 to $2.20 from February through November before rising 8 cents to $2.28 per mile in December. That’s a 2-cent per mile increase from December 2023. In a year-over-year comparison, the outbound rate from Los Angeles was up 11.3% in December, while the nationwide average was up 1.3%. “The Los Angeles freight market has rebounded much faster (in 2024) than most other markets,” Dean Croke, principal analyst at DAT, said. DAT expects double-digit growth in outbound truckload volumes from Los Angeles in 2025. <h3>Shippers skeptical </h3>Despite rising spot rates, shippers who have spoken to the Journal of Commerce have not indicated that they are paying significantly higher contract rates in 2025 deals. There is skepticism in the shipper community that spot rate inflation in trucking during the back half of the year will translate into higher contract rates. That’s because any lingering labor threat will go away if the longshoremen ratify a tentative six-year contract, while any decision on raising tariffs on China could come soon after Donald Trump’s inauguration. Once those issues are resolved, shippers believe some freight will return to the eastern US, causing demand in Los Angeles and Seattle to dip in 2025. The skepticism is also based on the perception of capacity. Shippers have not complained about struggling to find a truck to haul their freight or a squeeze on available drivers to handle business. Without the shipper struggling to get capacity in some way, it might be difficult for carriers to get anything more than a low to mid-single-digit percentage rate increase to cover inflation. Sources tell the Journal of Commerce that truckload carriers are struggling to get rate increases in annual contract negotiations with shippers. “You’re not seeing an inflection point yet, but we are getting closer to a point of equilibrium,” said Croke. Overall, spot truckload rates are expected to decline in January and February, typically weaker months for trucking demand. The extent of that decline may depend on the severity of winter weather, but demand tends to only pick up closer to the spring season. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>; contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a></div>

The cost of hauling goods from major US seaport markets jumped significantly toward the end of 2024, with outbound truckload spot rates that rose in a normal seasonal pattern getting an additional boost from a potential strike at ports along the East and Gulf coasts. Whether spot rates from US ports will continue to rise now that the threat of a longshore labor crisis appears to have been avoided is unclear as truckload demand and pricing nationwide struggle to rise out of the trough they’ve been in since mid-2023. The average outbound dry-van shipper-paid truckload spot rate from New York and New Jersey rose 7% month-on-month in December to $2.38 per mile, according to a Journal of Commerce analysis of pricing data on more than 4,000 lanes from DAT Freight & Analytics, Loadsmart, Sunset Transportation, and a survey of truckload brokers. On the West Coast, the average outbound truckload spot rate from Los Angeles rose 5% in December to $2.77 per mile, a 26-month high. In Seattle, the average rate rose 4% from the prior month, climbing to $2.37 per mile. That was a 19% increase for Seattle from May, which coupled with a 10.8% rate hike from Los Angeles in the same period points to the impact of cargo shifting from the East and Gulf coasts -- and from Canada in the case of Seattle -- to the West. In contrast, the Journal of Commerce national average shipper-paid spot rate stayed in a narrow price band of $2.16 to $2.20 from February through November before rising 8 cents to $2.28 per mile in December. That’s a 2-cent per mile increase from December 2023. In a year-over-year comparison, the outbound rate from Los Angeles was up 11.3% in December, while the nationwide average was up 1.3%. “The Los Angeles freight market has rebounded much faster (in 2024) than most other markets,” Dean Croke, principal analyst at DAT, said. DAT expects double-digit growth in outbound truckload volumes from Los Angeles in 2025. Shippers skeptical Despite rising spot rates, shippers who have spoken to the Journal of Commerce have not indicated that they are paying significantly higher contract rates in 2025 deals. There is skepticism in the shipper community that spot rate inflation in trucking during the back half of the year will translate into higher contract rates. That’s because any lingering labor threat will go away if the longshoremen ratify a tentative six-year contract, while any decision on raising tariffs on China could come soon after Donald Trump’s inauguration. Once those issues are resolved, shippers believe some freight will return to the eastern US, causing demand in Los Angeles and Seattle to dip in 2025. The skepticism is also based on the perception of capacity. Shippers have not complained about struggling to find a truck to haul their freight or a squeeze on available drivers to handle business. Without the shipper struggling to get capacity in some way, it might be difficult for carriers to get anything more than a low to mid-single-digit percentage rate increase to cover inflation. Sources tell the Journal of Commerce that truckload carriers are struggling to get rate increases in annual contract negotiations with shippers. “You’re not seeing an inflection point yet, but we are getting closer to a point of equilibrium,” said Croke. Overall, spot truckload rates are expected to decline in January and February, typically weaker months for trucking demand. The extent of that decline may depend on the severity of winter weather, but demand tends to only pick up closer to the spring season. Contact Ari Ashe at ari.ashe@spglobal.com ; contact William B. Cassidy at bill.cassidy@spglobal.com

Trucking News

North American ports

Truckload

Surface

Trucking rates out of US ports rise on frontloading, cargo shift

<div class="phx-topic abstract-wrapper">The US is seeking to amend rules regarding so-called de minimis shipments, which have skyrocketed since the pandemic. </div>

The US is seeking to amend rules regarding so-called de minimis shipments, which have skyrocketed since the pandemic.

<div class="phx-topic">US Customs and Border Protection (CBP) on Monday said it was seeking industry comment on new regulations it wants to implement that would address the growing risk of illicit or counterfeit goods entering the country as low-value imports, also known as de minimis shipments. The industry will have 60 days to comment on the proposed rulemaking, announced in September, that seeks to improve the data collection around imports using the de minimis provision. CBP said it processes more than 4 million de minimis shipments each day, with 2024 volume up nearly 50% from 2023. “Current regulations require importers to provide minimal information to CBP for these shipments, compared to those required for other types of cargo,” the agency said in a notice. “The overwhelming volume of low-value shipments and lack of actionable data collected pursuant to current regulations inhibit CBP’s ability to identify and interdict high-risk shipments that may contain illegal drugs such as illicit fentanyl, merchandise that poses a risk to public safety, counterfeit or pirated goods, or other contraband.” CBP said the intent of the rulemaking is to better target high-risk shipments. It is also aimed at revising the current process for entering information on low-value shipments to require additional data elements that would help CBP verify eligibility for duty- and tax-free entry by creating a fully electronic process for filers to transmit data prior to a shipment’s arrival. “This data will reduce the burden for CBP officers who process these large volumes of shipments, leading to more accurate targeting,” the agency said. The rulemaking was announced in September by the Biden administration to address growing unease with the volume of duty-free packages arriving in the US. De minimis regulations allow one shipment of less than $800 in value to move between a single shipper and single consignee per day. Advocates for tighter de minimis regulations argue that the process is being misused by e-commerce retailers in Asia to legally avoid duties and taxes. CBP currently operates two programs — the Section 321 data pilot and entry Type 86 — that mandate shippers and customs brokers provide additional data on de minimis shipments. The benefit of providing more data is enhanced compliance with de minimis regulations and faster clearance of goods. According to CBP’s de minimis dashboard, more than half of all de minimis shipments in 2024 moved via Type 86 entries. The agency also said more than 90% of US imports by bill of lading volume qualify for de minimis, a figure it described as “growing in epic proportions.” In August, five US senators introduced a bipartisan bill to curtail the use of de minimis by prohibiting certain product categories from using the duty exemption. The legislation, which remains in committee, would also mandate that de minimis shipments provide additional data to CBP, while increasing penalties for violations. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

US Customs and Border Protection (CBP) on Monday said it was seeking industry comment on new regulations it wants to implement that would address the growing risk of illicit or counterfeit goods entering the country as low-value imports, also known as de minimis shipments. The industry will have 60 days to comment on the proposed rulemaking, announced in September, that seeks to improve the data collection around imports using the de minimis provision. CBP said it processes more than 4 million de minimis shipments each day, with 2024 volume up nearly 50% from 2023. “Current regulations require importers to provide minimal information to CBP for these shipments, compared to those required for other types of cargo,” the agency said in a notice. “The overwhelming volume of low-value shipments and lack of actionable data collected pursuant to current regulations inhibit CBP’s ability to identify and interdict high-risk shipments that may contain illegal drugs such as illicit fentanyl, merchandise that poses a risk to public safety, counterfeit or pirated goods, or other contraband.” CBP said the intent of the rulemaking is to better target high-risk shipments. It is also aimed at revising the current process for entering information on low-value shipments to require additional data elements that would help CBP verify eligibility for duty- and tax-free entry by creating a fully electronic process for filers to transmit data prior to a shipment’s arrival. “This data will reduce the burden for CBP officers who process these large volumes of shipments, leading to more accurate targeting,” the agency said. The rulemaking was announced in September by the Biden administration to address growing unease with the volume of duty-free packages arriving in the US. De minimis regulations allow one shipment of less than $800 in value to move between a single shipper and single consignee per day. Advocates for tighter de minimis regulations argue that the process is being misused by e-commerce retailers in Asia to legally avoid duties and taxes. CBP currently operates two programs — the Section 321 data pilot and entry Type 86 — that mandate shippers and customs brokers provide additional data on de minimis shipments. The benefit of providing more data is enhanced compliance with de minimis regulations and faster clearance of goods. According to CBP’s de minimis dashboard, more than half of all de minimis shipments in 2024 moved via Type 86 entries. The agency also said more than 90% of US imports by bill of lading volume qualify for de minimis, a figure it described as “growing in epic proportions.” In August, five US senators introduced a bipartisan bill to curtail the use of de minimis by prohibiting certain product categories from using the duty exemption. The legislation, which remains in committee, would also mandate that de minimis shipments provide additional data to CBP, while increasing penalties for violations. Contact Eric Johnson at eric.johnson@spglobal.com .

Air Cargo

Logistics Technology News

CBP seeks industry input on rules curbing low-value shipment abuse

<div class="phx-topic abstract-wrapper">Multiple forwarder sources who spoke with the Journal of Commerce confirmed that the portal booking specifics are still unavailable for February voyages from India to Europe.</div>

Multiple forwarder sources who spoke with the Journal of Commerce confirmed that the portal booking specifics are still unavailable for February voyages from India to Europe.

<div class="phx-topic">Indian freight forwarders are still waiting to learn when Gemini alliance partners Maersk and Hapag-Lloyd will open spot bookings to Europe even as the so-called hub-and-spoke network moves closer to its official Feb. 1 launch. Hapag-Lloyd earlier told customers that Dec. 3 would be the booking start date for all Gemini services. But multiple forwarder sources who spoke with the Journal of Commerce confirmed that the portal booking specifics are still unavailable for February voyages from India to Europe. “While the inaugural sailing schedules have been declared, the network hasn’t begun accepting spot bookings as of now,” said a sales executive at a Mumbai-based forwarding house. “Some rollover adjustments from the current independent networks and other commercial considerations could be holding things back.” Gemini <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fgemini-to-bulk-up-capacity-on-india-europe-trade-amid-rate-push-pressure-5911491&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C137c532edf0d471c908508dd33c2e925%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C638723634416921183%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=KvNS921FK3lhQ3kswi9JR2bd%2BDoRoQb5v9h9sHBju9c%3D&amp;reserved=0">has three direct services out of India for North Europe</a> — two with stops at Mundra and Nhava Sheva for northwestern India trade, and one for southern India trade over Ennore (Chennai). The first westbound Gemini sailing on the West India-Europe trade will be the Houston Express, operated by Hapag-Lloyd, with an estimated time of arrival in Mundra of Feb. 9, while the southern India leg is due to begin with the Maersk Stadelhorn calling at Ennore on Feb. 11, sources said. A second forwarder said as Maersk has the largest market share of the seasonal grape market out of India to Europe, which typically moves under carrier service contracts, the availability of space on early Gemini vessels could in some part hinge on this reefer trade that market sources generally expect to exceed last year’s volumes. Hapag-Lloyd and Mediterranean Shipping Co. are also major carriers for Indian-grown grape exports, which normally peak from February through March. As contract negotiations move into the closing stages, forwarder sources expect average carrier rates to hover at about $3,500 per FEU for grape bookings from West India to Europe. That range compares with early-January spot pricing of between $1,800 and $1,900 per FEU for standard dry loads from Nhava Sheva to London Gateway or Felixstowe. “A stronger grape season could cut into the spot booking space, thus driving rates up after steady declines,” the second forwarder source said. Shrugging off forwarder claims, Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa, told the Journal of Commerce the Gemini network transition remains “on schedule.” “Bookings are open on the Gemini network,” said Mota. “There are no rollovers that could impact bookings.” He also reiterated that the network has been structured globally with Maersk providing 60% of the capacity and Hapag-Lloyd 40%. Hapag-Lloyd (India) was unavailable for comment. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Indian freight forwarders are still waiting to learn when Gemini alliance partners Maersk and Hapag-Lloyd will open spot bookings to Europe even as the so-called hub-and-spoke network moves closer to its official Feb. 1 launch. Hapag-Lloyd earlier told customers that Dec. 3 would be the booking start date for all Gemini services. But multiple forwarder sources who spoke with the Journal of Commerce confirmed that the portal booking specifics are still unavailable for February voyages from India to Europe. “While the inaugural sailing schedules have been declared, the network hasn’t begun accepting spot bookings as of now,” said a sales executive at a Mumbai-based forwarding house. “Some rollover adjustments from the current independent networks and other commercial considerations could be holding things back.” Gemini has three direct services out of India for North Europe — two with stops at Mundra and Nhava Sheva for northwestern India trade, and one for southern India trade over Ennore (Chennai). The first westbound Gemini sailing on the West India-Europe trade will be the Houston Express, operated by Hapag-Lloyd, with an estimated time of arrival in Mundra of Feb. 9, while the southern India leg is due to begin with the Maersk Stadelhorn calling at Ennore on Feb. 11, sources said. A second forwarder said as Maersk has the largest market share of the seasonal grape market out of India to Europe, which typically moves under carrier service contracts, the availability of space on early Gemini vessels could in some part hinge on this reefer trade that market sources generally expect to exceed last year’s volumes. Hapag-Lloyd and Mediterranean Shipping Co. are also major carriers for Indian-grown grape exports, which normally peak from February through March. As contract negotiations move into the closing stages, forwarder sources expect average carrier rates to hover at about $3,500 per FEU for grape bookings from West India to Europe. That range compares with early-January spot pricing of between $1,800 and $1,900 per FEU for standard dry loads from Nhava Sheva to London Gateway or Felixstowe. “A stronger grape season could cut into the spot booking space, thus driving rates up after steady declines,” the second forwarder source said. Shrugging off forwarder claims, Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa, told the Journal of Commerce the Gemini network transition remains “on schedule.” “Bookings are open on the Gemini network,” said Mota. “There are no rollovers that could impact bookings.” He also reiterated that the network has been structured globally with Maersk providing 60% of the capacity and Hapag-Lloyd 40%. Hapag-Lloyd (India) was unavailable for comment. Contact Bency Mathew at bencyvmathew@gmail.com .

Container Shipping News

Maritime

Indian forwarders seek clarity on spot booking program for Gemini Europe sailings

<div class="phx-topic abstract-wrapper">The uncertainty surrounding the Red Sea was highlighted by member OOCL, and although the carrier provided both an around-Africa option and a version via the Suez, it said the Africa diversions will continue until further notice.</div>

The uncertainty surrounding the Red Sea was highlighted by member OOCL, and although the carrier provided both an around-Africa option and a version via the Suez, it said the Africa diversions will continue until further notice.

<div class="phx-topic">The Ocean Alliance of COSCO Shipping, OOCL, Evergreen Line and CMA CGM has unveiled its new shipping network, expanding direct coverage of both the Asia-Europe and trans-Pacific trades from April. “They [Ocean Alliance] are clearly increasing capacity,” Stefan Verberckmoes, senior analyst at Alphaliner, told the Journal of Commerce Monday. Ocean Alliance’s so-called “Day 9” product was announced by member carrier OOCL Monday and will comprise 41 service loops and 390 vessels. Three new services will be introduced: the trans-Pacific PSX from Xiamen and Yantian to Long Beach and back via Kaohsiung; the PNW5 from Ningbo and Shanghai to Tacoma and Seattle and back via Lianyungang; and the LL3, an Asia-Europe route calling Shanghai, Xiamen, Hong Kong, Yantian, Cai Mep, Singapore, Rotterdam, Hamburg, Zeebrugge, Felixstowe and back via Port Kelang. The uncertainty surrounding the Red Sea was highlighted by OOCL, and although the carrier provided both an around-Africa option and a version via the Suez, it said the Africa diversions will continue until further notice. “In light of the current situation in the Red Sea region, OOCL’s vessels will continue to be diverted to the Cape of Good Hope route to ensure the safety of our crews, your cargo and our vessels,” OOCL noted in a customer advisory. Outside the alliance services, OOCL will also roll out six new trans-Atlantic services from February. All four global networks have now been announced with the carriers in the vessel-sharing agreements repositioning ships in preparation for the launch of the new services. The new Gemini Cooperation between Maersk and Hapag-Lloyd will deploy a hub-and-spoke model connecting regional ports to the hubs by shuttles, while Ocean Alliance, the Premier Alliance (Ocean Network Express, HMM and Yang Ming) and a standalone Mediterranean Shipping Co. will offer direct services. “...The big change will not only be the transition period to the new alliances, but the fact that the networks will be very different,” Verberckmoes said. “Until last year, THE Alliance, Ocean Alliance and 2M were comparable, but now for the first time we will have networks which are not comparable.” While MSC and the alliances prepare for their networks, several carriers <a href="https://www.joc.com/article/ocean-carriers-outline-new-trans-atlantic-services-from-feb-1-5907735">are striking partnerships beyond their own networks</a> to plug coverage gaps. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The Ocean Alliance of COSCO Shipping, OOCL, Evergreen Line and CMA CGM has unveiled its new shipping network, expanding direct coverage of both the Asia-Europe and trans-Pacific trades from April. “They [Ocean Alliance] are clearly increasing capacity,” Stefan Verberckmoes, senior analyst at Alphaliner, told the Journal of Commerce Monday. Ocean Alliance’s so-called “Day 9” product was announced by member carrier OOCL Monday and will comprise 41 service loops and 390 vessels. Three new services will be introduced: the trans-Pacific PSX from Xiamen and Yantian to Long Beach and back via Kaohsiung; the PNW5 from Ningbo and Shanghai to Tacoma and Seattle and back via Lianyungang; and the LL3, an Asia-Europe route calling Shanghai, Xiamen, Hong Kong, Yantian, Cai Mep, Singapore, Rotterdam, Hamburg, Zeebrugge, Felixstowe and back via Port Kelang. The uncertainty surrounding the Red Sea was highlighted by OOCL, and although the carrier provided both an around-Africa option and a version via the Suez, it said the Africa diversions will continue until further notice. “In light of the current situation in the Red Sea region, OOCL’s vessels will continue to be diverted to the Cape of Good Hope route to ensure the safety of our crews, your cargo and our vessels,” OOCL noted in a customer advisory. Outside the alliance services, OOCL will also roll out six new trans-Atlantic services from February. All four global networks have now been announced with the carriers in the vessel-sharing agreements repositioning ships in preparation for the launch of the new services. The new Gemini Cooperation between Maersk and Hapag-Lloyd will deploy a hub-and-spoke model connecting regional ports to the hubs by shuttles, while Ocean Alliance, the Premier Alliance (Ocean Network Express, HMM and Yang Ming) and a standalone Mediterranean Shipping Co. will offer direct services. “...The big change will not only be the transition period to the new alliances, but the fact that the networks will be very different,” Verberckmoes said. “Until last year, THE Alliance, Ocean Alliance and 2M were comparable, but now for the first time we will have networks which are not comparable.” While MSC and the alliances prepare for their networks, several carriers are striking partnerships beyond their own networks to plug coverage gaps. Contact Greg Knowler at greg.knowler@spglobal.com .

Ocean Alliance network to grow trans-Pacific, Asia-Europe coverage

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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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