<div class="phx-topic abstract-wrapper">New York Mercantile Exchange - July 1, 1994 Prev. Life of Contr. OpenOpen High Low </div>

New York Mercantile Exchange - July 1, 1994 Prev. Life of Contr. OpenOpen High Low

<div>New York Mercantile Exchange - July 1, 1994Prev. Life of Contr. OpenOpen High Low Close Sttlng High Low Int SalesNO. 2 HEATING OIL N.Y. HARBOR - 42,000 US gal_(Cents Per Gallon)July __ __ __ __ - __ __ __ __ 2,099 14,278Aug. 50.75 51.00 50.25 50.70- 50.90 50.52 52.50 42.70 39,618 26,108Sep. 51.45 51.60 50.90 51.25- 51.45 51.22 53.20 43.80 15,479 2,015Oct. 52.42 52.42 52.00 52.20- __ 52.12 54.00 44.90 12,056 973Nov. 53.25 53.30 53.10 53.20- __ 52.97 55.20 46.00 7,389 382Dec. 54.00 54.25 53.80 54.00- 54.25 53.82 55.55 46.80 16,166 2,394Jan. 54.65 54.70 54.35 54.60- 54.50 54.32 55.85 50.60...

New York Mercantile Exchange - July 1, 1994 Prev. Life of Contr. OpenOpen High Low Close Sttlng High Low Int Sales NO. 2 HEATING OIL N.Y. HARBOR - 42,000 US gal_(Cents Per Gallon) July __ __ __ __ - __ __ __ __ 2,099 14,278 Aug. 50.75 51.00 50.25 50.70- 50.90 50.52 52.50 42.70 39,618 26,108 Sep. 51.45 51.60 50.90 51.25- 51.45 51.22 53.20 43.80 15,479 2,015 Oct. 52.42 52.42 52.00 52.20- __ 52.12 54.00 44.90 12,056 973 Nov. 53.25 53.30 53.10 53.20- __ 52.97 55.20 46.00 7,389 382 Dec. 54.00 54.25 53.80 54.00- 54.25 53.82 55.55 46.80 16,166 2,394 Jan. 54.65 54.70 54.35 54.60- 54.50 54.32 55.85 50.60 11,765 703 Feb. 54.50 54.50 54.45 54.40- 54.60 54.22 55.65 51.30 5,386 223 Mar. 53.50 53.50 53.50 s53.33- __ 53.22 54.25 50.35 5,464 202 *Total daily, 125,599 47,618 UNLEADED GASOLINE N.Y. HARBOR - 42,000 US gal_(Cents Per Gallon) July __ __ __ __ - __ __ __ __ 1,579 14,446 Aug. 53.75 53.95 53.10 53.65- 53.95 53.59 55.45 43.70 47,160 20,784 Sep. 53.90 53.95 53.30 53.85- 53.90 53.67 55.05 43.90 16,154 2,885 Oct. 52.45 52.70 52.40 52.55- 52.70 52.37 53.25 43.10 5,790 1,121 Nov. 51.30 51.50 51.30 s51.45- __ 51.22 52.00 42.75 5,749 753 Dec. 56.40 56.50 56.00 56.00- 56.25 56.22 56.60 50.80 3,188 475 Jan. 55.40 55.60 55.20 55.50- __ 55.67 55.60 51.00 1,346 181 Feb. __ __ __ s55.90- __ 55.67 55.80 51.10 950 6 *Total daily, 81,916 40,651 CRUDE OIL, Light Sweet Crude - 1,000 barrels_(Dollars Per Barrel) Aug. 19.33 19.68 19.33 19.50- 19.58 19.37 20.78 14.35 93,275 52,859 Sep. 18.79 19.08 18.79 18.90- 18.98 18.83 20.78 14.50 67,983 25,456 Oct. 18.56 18.78 18.50 18.62- 18.67 18.57 20.73 14.65 33,414 4,145 Nov. 18.45 18.58 18.45 s18.49- __ 18.42 20.69 14.82 29,069 3,273 Dec. 18.38 18.50 18.32 18.38- 18.46 18.32 21.26 14.93 33,684 4,332 Jan. 18.38 18.41 18.28 18.35- 18.38 18.25 20.12 15.15 16,836 1,043 Feb. 18.29 18.33 18.29 s18.23- __ 18.19 19.60 15.28 11,396 572 Mar. 18.17 18.28 18.16 s18.16- __ 18.13 20.66 15.42 11,767 486 Apr. 18.19 18.23 18.19 s18.12- __ 18.09 19.68 15.55 8,423 389 May 18.18 18.22 18.18 s18.11- __ 18.08 19.23 15.69 9,038 149 June 18.13 18.24 18.13 18.22- __ 18.09 21.21 15.73 17,620 650 July 18.18 18.23 18.18 s18.11- __ 18.10 18.28 16.05 5,682 2,182 Aug. 18.25 18.25 18.20 s18.11- __ 18.11 18.25 16.16 3,674 100 Sep. 18.20 18.25 18.20 s18.11- __ 18.12 19.84 16.28 7,070 363 Oct. 18.25 18.25 18.25 s18.11- __ 18.13 18.31 16.42 1,645 __ Nov. 18.25 18.25 18.25 s18.12- __ 18.14 18.33 17.15 3,633 __ Dec. 18.25 18.25 18.25 s18.14- __ 18.16 19.90 16.50 11,464 1,179 Jan. __ __ __ __ - __ __ __ __ 167 25 Mar. __ __ __ s18.23- __ 18.25 17.67 17.15 2,269 __ June 18.43 18.43 18.43 s18.29- __ 18.33 20.80 17.22 12,374 15 Dec. __ __ __ s18.50- __ 18.59 20.00 17.65 18,694 1 June 18.99 __ __ s18.77- __ 18.90 19.10 18.55 3,151 200 Total daily, 402,328 97,419 NATURAL GAS - 10,000 million Btus_(Cents Per Million Btus) Aug. 221.0 222.0 218.5 221.0- 221.9 218.4 226.0 189.5 19,798 7,579 Sept. 219.5 221.0 218.8 220.0- 221.0 218.1 227.5 194.0 12,129 2,244 Oct. 220.0 220.5 219.0 s220.2- __ 218.6 232.5 199.0 10,834 856 Nov. 226.0 227.0 225.5 227.0- __ 225.6 235.5 209.0 11,411 241 Dec. 235.5 236.0 234.0 236.0- __ 234.6 245.5 222.0 14,624 1,182 Jan. 235.0 235.5 234.0 s235.2- __ 234.3 244.5 222.5 10,411 925 Feb. 224.0 225.0 223.5 225.0- __ 223.3 237.0 216.0 5,876 173 Mar. 217.0 218.5 217.0 s217.5- __ 216.6 222.0 210.5 4,165 413 Apr. 211.0 212.9 211.0 s212.2- __ 211.3 215.0 205.0 3,615 284 May 212.5 213.0 211.1 s212.2- __ 211.4 215.4 206.0 4,509 53 June 212.0 213.5 212.0 s212.2- __ 211.6 215.5 208.0 2,434 357 July 213.0 213.0 213.0 s212.2- __ 211.6 214.3 212.0 2,728 431 *Total daily, 114,410 15,007 LIQUEFIED PROPANE GAS - 42,000 gallons_(Cents Per Gallon) July __ __ __ __ - __ __ 30.80 27.25 149 137 Aug. __ __ __ s28.80- __ 28.80 30.80 28.25 334 __ Sep. 29.00 __ __ s29.30- __ 29.30 31.25 29.00 335 17 Oct. 29.00 __ __ s29.50- __ 29.50 30.25 29.30 93 __ *Total daily, 1,212 206 BID _ASKED *_NOMINAL S_SETTLING PRICE *Total includes contract months not shown.

NEW YORK OIL FUTURES

<div class="phx-topic abstract-wrapper">DHL group CEO Tobias Meyer recognized that the division’s performance remained lackluster, with the “volatile” gross profit/EBIT conversion rate below DHL’s 35% target. </div>

DHL group CEO Tobias Meyer recognized that the division’s performance remained lackluster, with the “volatile” gross profit/EBIT conversion rate below DHL’s 35% target.

Feature image

<div class="phx-topic">Strong volumes and gross profit growth buoyed revenue and profitability for DHL Global Forwarding in the fourth quarter, but the division continued to underperform for the full year, company executives said Thursday. Melanie Kreis, DHL’s CFO, said Global Forwarding saw “above-market volume growth in the fourth quarter.” Air freight experienced a 12% increase in gross profit per unit in the quarter, while there was a 10% increase for ocean freight year over year due to the strong peak season, Kreis told analysts during an earnings briefing Thursday. But the division’s earnings before interest and taxes (EBIT) were down 25% to $276 million in the quarter due to a one-off revaluation of the DanzasAEI Emirates acquisition in 2023. The revaluation amounted to $123 million. “Take that out and Global Forwarding ... had an increase in EBIT growth [of 13%] in the fourth quarter,” Kreis said. <h3>‘Long-term’ target on DSV </h3>DHL group CEO Tobias Meyer recognized that the division’s performance remained lackluster, with the gross profit/EBIT conversion rate below DHL’s 35% target, but he remained confident about longer-term prospects and thought DHL Global Forwarding was already closing on its competitors. “The division has made great progress in terms of cost efficiencies, but the conversion rate is driven by the gross profit per unit level and that has been very volatile,” Meyer said. “We need to continue to work on that.” He reiterated that the aim is still to catch up with competitor DSV but said that “will be more in the longer term.” “With the volume and margin development in the fourth quarter we see ourselves on a good trajectory with global forwarding, especially in ocean freight,” Meyer said. “I expect us to continue on that trajectory to close that gap towards the peer group that we’re aiming to be part of and ultimately exceed in terms of the balance of volume growth and conversion rate.” Meyer said he expected DHL Global Forwarding to experience volatility this year, partly because of ocean carriers at some point resuming regular transits through the Suez Canal. Meyer did not forecast when that could happen but said “rates will be different when the Suez Canal reopens. Whether that’s good or bad we’ll have to wait and see.” Overall, Global Forwarding reported a 2% increase in revenue to $21.3 billion last year, including $5.5 billion in the fourth quarter, which was up 12% from the year prior. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Strong volumes and gross profit growth buoyed revenue and profitability for DHL Global Forwarding in the fourth quarter, but the division continued to underperform for the full year, company executives said Thursday. Melanie Kreis, DHL’s CFO, said Global Forwarding saw “above-market volume growth in the fourth quarter.” Air freight experienced a 12% increase in gross profit per unit in the quarter, while there was a 10% increase for ocean freight year over year due to the strong peak season, Kreis told analysts during an earnings briefing Thursday. But the division’s earnings before interest and taxes (EBIT) were down 25% to $276 million in the quarter due to a one-off revaluation of the DanzasAEI Emirates acquisition in 2023. The revaluation amounted to $123 million. “Take that out and Global Forwarding ... had an increase in EBIT growth [of 13%] in the fourth quarter,” Kreis said. ‘Long-term’ target on DSV DHL group CEO Tobias Meyer recognized that the division’s performance remained lackluster, with the gross profit/EBIT conversion rate below DHL’s 35% target, but he remained confident about longer-term prospects and thought DHL Global Forwarding was already closing on its competitors. “The division has made great progress in terms of cost efficiencies, but the conversion rate is driven by the gross profit per unit level and that has been very volatile,” Meyer said. “We need to continue to work on that.” He reiterated that the aim is still to catch up with competitor DSV but said that “will be more in the longer term.” “With the volume and margin development in the fourth quarter we see ourselves on a good trajectory with global forwarding, especially in ocean freight,” Meyer said. “I expect us to continue on that trajectory to close that gap towards the peer group that we’re aiming to be part of and ultimately exceed in terms of the balance of volume growth and conversion rate.” Meyer said he expected DHL Global Forwarding to experience volatility this year, partly because of ocean carriers at some point resuming regular transits through the Suez Canal. Meyer did not forecast when that could happen but said “rates will be different when the Suez Canal reopens. Whether that’s good or bad we’ll have to wait and see.” Overall, Global Forwarding reported a 2% increase in revenue to $21.3 billion last year, including $5.5 billion in the fourth quarter, which was up 12% from the year prior. Contact Keith Wallis at keithwallis@hotmail.com .

Forwarding

Supply chain

DHL Global Forwarding buoyed by good Q4, but acknowledges weak spots

<div class="phx-topic abstract-wrapper">Major carriers on the India-US East Coast trade are reporting success on their March rate recovery efforts, thanks in large part to recent sailing cuts, prompting some of them to announce even higher increases for next month.</div>

Major carriers on the India-US East Coast trade are reporting success on their March rate recovery efforts, thanks in large part to recent sailing cuts, prompting some of them to announce even higher increases for next month.

<div class="phx-topic">Maersk — via Maersk Line, Ltd. (MLL) and CMA CGM’s sister liner unit APL — have reached an agreement to swap slots on two of their Asia-US services using US-flag ships. Under the pact, APL will offer Maersk slots of 210 TEUs, including 80 TEUs eastbound and 130 TEUs westbound, on the former’s fully US-flag Transpacific Eagle Express 1 (EX1) service that covers Asia-US West Coast trades. In return, APL will gain charter rights for 100 TEUs, including 80 TEUs eastbound and 20 TEUs westbound, on Maersk’s MECL loop between India and the US East Coast. Local industry sources who spoke with the Journal of Commerce have linked the move to the US’ Cargo Preference Act of 1954, also referred to as “government-impelled cargo,” which requires that at least half of government-sponsored cargo be transported on US-flag ships. The slot exchange framework, which has been approved by the US Federal Maritime Commission (FMC), also allows both parties to swap additional space for the movement of “preference cargo” on an ad hoc basis. “MLL shall maintain a minimum of 50% US-flag sailings on a quarterly basis in the MECL service, and APL shall maintain 100% US-flag sailings in the EX1 service,” the agreement states. The weekly EX1 rotates Qingdao, Shanghai, Busan, Los Angeles, Oakland, Yokohama, Naha and Qingdao, according to available data. The MECL has a full rotation of Jebel Ali, Mundra, Pipavav, Nhava Sheva, Salalah, Newark, Charleston, Savannah, Houston, Norfolk, Newark, Tangier and Salalah. The partly US-flag routing began calling Mundra in late February, thus enhancing Maersk’s weekly capacity for Indian export loads. Significantly, the slot-swapping arrangement gives CMA CGM, through APL, its second service between West India and North America in addition to its premier standalone “Indamex” loop amid the heightened industry race for market share leadership. <h3>Carriers push rate quotes higher </h3>Meanwhile, major carriers on the India-US East Coast trade are reporting success on their March rate recovery efforts, thanks in large part to recent sailing cuts, prompting some of them to announce even higher increases for next month. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="893ffa5c-0a69-45c7-a555-425e44318711"></dynamic-object></div>Mediterranean Shipping Co. in a March 4 advisory told Indian customers it will push rates up by a further $1,500 per container for all loads to the US East and Gulf coasts and San Juan, Puerto Rico, beginning April 1. Forwarder sources put updated March spot booking quotes by carrier at: CMA CGM — $2,435 per TEU and $2,650 per FEU from March 15; Maersk — $2,698 and $2,658 through March; and Hapag-Lloyd — $2,541 and $2,702 through March. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged actual spot rates at $1,433 per FEU as of March 5, up 2% on the week. Contact Bency Mathew at <a href="https://www.joc.com/article/bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Maersk — via Maersk Line, Ltd. (MLL) and CMA CGM’s sister liner unit APL — have reached an agreement to swap slots on two of their Asia-US services using US-flag ships. Under the pact, APL will offer Maersk slots of 210 TEUs, including 80 TEUs eastbound and 130 TEUs westbound, on the former’s fully US-flag Transpacific Eagle Express 1 (EX1) service that covers Asia-US West Coast trades. In return, APL will gain charter rights for 100 TEUs, including 80 TEUs eastbound and 20 TEUs westbound, on Maersk’s MECL loop between India and the US East Coast. Local industry sources who spoke with the Journal of Commerce have linked the move to the US’ Cargo Preference Act of 1954, also referred to as “government-impelled cargo,” which requires that at least half of government-sponsored cargo be transported on US-flag ships. The slot exchange framework, which has been approved by the US Federal Maritime Commission (FMC), also allows both parties to swap additional space for the movement of “preference cargo” on an ad hoc basis. “MLL shall maintain a minimum of 50% US-flag sailings on a quarterly basis in the MECL service, and APL shall maintain 100% US-flag sailings in the EX1 service,” the agreement states. The weekly EX1 rotates Qingdao, Shanghai, Busan, Los Angeles, Oakland, Yokohama, Naha and Qingdao, according to available data. The MECL has a full rotation of Jebel Ali, Mundra, Pipavav, Nhava Sheva, Salalah, Newark, Charleston, Savannah, Houston, Norfolk, Newark, Tangier and Salalah. The partly US-flag routing began calling Mundra in late February, thus enhancing Maersk’s weekly capacity for Indian export loads. Significantly, the slot-swapping arrangement gives CMA CGM, through APL, its second service between West India and North America in addition to its premier standalone “Indamex” loop amid the heightened industry race for market share leadership. Carriers push rate quotes higher Meanwhile, major carriers on the India-US East Coast trade are reporting success on their March rate recovery efforts, thanks in large part to recent sailing cuts, prompting some of them to announce even higher increases for next month. Mediterranean Shipping Co. in a March 4 advisory told Indian customers it will push rates up by a further $1,500 per container for all loads to the US East and Gulf coasts and San Juan, Puerto Rico, beginning April 1. Forwarder sources put updated March spot booking quotes by carrier at: CMA CGM — $2,435 per TEU and $2,650 per FEU from March 15; Maersk — $2,698 and $2,658 through March; and Hapag-Lloyd — $2,541 and $2,702 through March. Platts, a sister company of the Journal of Commerce within S&P Global, pegged actual spot rates at $1,433 per FEU as of March 5, up 2% on the week. Contact Bency Mathew at bencyvmathew@gmail.com .

Container Shipping News

Container lines

Maritime

Maersk, APL swap slots on India/Asia-US trades under US-flag networks

<div class="phx-topic abstract-wrapper">Spot rates soared as the deadline for US tariffs approached this week, and now many shipments are stranded in transit, according to logistics providers. </div>

Spot rates soared as the deadline for US tariffs approached this week, and now many shipments are stranded in transit, according to logistics providers.

<div class="phx-topic">Long Beach, California — Truck traffic in Laredo, Texas, surged for weeks until Tuesday, when the Trump administration’s 25% tariff on Mexican imports took effect. “Monday was just absolutely chaotic, and then yesterday was eerily slow,” Jordan Dewart, president of Redwood Mexico, told the Journal of Commerce Wednesday. “We had dozens and dozens of customers literally hit the pause button on all their northbound shipments from Mexico, wherever they were in transit,” Dewart said, speaking from Laredo. “They’ve all said, ‘Hey, let’s wait this out a few days to see what happens.’” <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5951880_0.1.jpg"></img></div>What’s happening is the collection of millions of dollars of duties that many shippers have never had to pay before when importing from Mexico or Canada, another US tariff target. “We have a customs broker partner here at the [Mexican] border, and they [took in] payments in excess of $1 million yesterday,” the first day tariffs were collected, Dewart said. Those payments came from multiple customers of Redwood Logistics “and every one of those customers had never paid” tariffs on Mexican goods previously, Dewart said. One customer had planned to bring a truckload shipment into the US Monday before the tariffs took effect, but a flat tire kept the drayage truck from crossing until Tuesday, he said. “A shipment that could have avoided the tariffs entirely instead was subject to $50,000 in duties,” said Dewart. <h3>Delays disrupting capacity </h3>Logistics providers expect to hear many similar stories as the Trump administration accelerates its trade wars with Mexico, Canada, China and other countries. Tariff threats and then the imposition of tariffs led to a surge in freight heading toward the US-Mexico border in January and February, causing congestion and delays. Now freight is being delayed as importers try to discern what twist the tariffs might take next. Late Wednesday, for example, the White House announced that cars and trucks produced in Mexico and Canada would be exempt from the 25% tariffs for one month. That’s likely to lead to a surge in high-value automotive imports in March. High-value shipments from Mexico and Canada surged in February, pushing up spot-market truckload rates in lanes between Canada, Mexico and the US by double digits. “We’ve seen easily 50% to 75% spot rate increases for some hot must-have type items [from Canada],” Paul Brashier, vice president of global logistics at ITS Logistics, said Wednesday. “It’s almost been similar to what we saw during COVID when shippers would say, ‘just let us know what it costs’ if we could cover a load — they were more worried about getting the shipment than what it would cost them,” Brashier told the Journal of Commerce. Earlier this week, US spot market load board operator DAT Freight &amp; Analytics reported surging spot rates and volumes in cross-border lanes connecting the US and Canada. Dry-van spot-market volumes from Toronto to Chicago rose 57% in the week ending Feb. 28, while rates in the cross-border lane rose 7%, according to DAT. Dewart noted that President Donald Trump plans to speak with Mexican President Claudia Sheinbaum Thursday, raising hopes that some tariff pressure may be relieved. “Frankly, the only trading partner that we have that knows how to handle [Trump] is Mexico’s Sheinbaum. She’s been able to work with him,” Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said at the Journal of Commerce’s TPM25 conference here Wednesday. <h3>Redesigning supply chains </h3>But the uncertainty is costing US importers millions of dollars not only in tariff duties but in delays and last-minute changes in supply chains, logistics providers said. “Pretty much when Trump was inaugurated, we started fielding a lot more requests for [supply chain] design work, for heavy volume flows inbound to the US from Mexico and Canada,” said Brashier. Now with many shipments stuck in transit, especially between Mexico and the US, it’s unclear what the impact will be on volumes and pricing in the days and weeks ahead — but costs aren’t likely to go down as long as the disruption persists. “Contract rates are in a holding pattern, I’d say, to see what happens next,” Dewart said. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Long Beach, California — Truck traffic in Laredo, Texas, surged for weeks until Tuesday, when the Trump administration’s 25% tariff on Mexican imports took effect. “Monday was just absolutely chaotic, and then yesterday was eerily slow,” Jordan Dewart, president of Redwood Mexico, told the Journal of Commerce Wednesday. “We had dozens and dozens of customers literally hit the pause button on all their northbound shipments from Mexico, wherever they were in transit,” Dewart said, speaking from Laredo. “They’ve all said, ‘Hey, let’s wait this out a few days to see what happens.’” What’s happening is the collection of millions of dollars of duties that many shippers have never had to pay before when importing from Mexico or Canada, another US tariff target. “We have a customs broker partner here at the [Mexican] border, and they [took in] payments in excess of $1 million yesterday,” the first day tariffs were collected, Dewart said. Those payments came from multiple customers of Redwood Logistics “and every one of those customers had never paid” tariffs on Mexican goods previously, Dewart said. One customer had planned to bring a truckload shipment into the US Monday before the tariffs took effect, but a flat tire kept the drayage truck from crossing until Tuesday, he said. “A shipment that could have avoided the tariffs entirely instead was subject to $50,000 in duties,” said Dewart. Delays disrupting capacity Logistics providers expect to hear many similar stories as the Trump administration accelerates its trade wars with Mexico, Canada, China and other countries. Tariff threats and then the imposition of tariffs led to a surge in freight heading toward the US-Mexico border in January and February, causing congestion and delays. Now freight is being delayed as importers try to discern what twist the tariffs might take next. Late Wednesday, for example, the White House announced that cars and trucks produced in Mexico and Canada would be exempt from the 25% tariffs for one month. That’s likely to lead to a surge in high-value automotive imports in March. High-value shipments from Mexico and Canada surged in February, pushing up spot-market truckload rates in lanes between Canada, Mexico and the US by double digits. “We’ve seen easily 50% to 75% spot rate increases for some hot must-have type items [from Canada],” Paul Brashier, vice president of global logistics at ITS Logistics, said Wednesday. “It’s almost been similar to what we saw during COVID when shippers would say, ‘just let us know what it costs’ if we could cover a load — they were more worried about getting the shipment than what it would cost them,” Brashier told the Journal of Commerce. Earlier this week, US spot market load board operator DAT Freight & Analytics reported surging spot rates and volumes in cross-border lanes connecting the US and Canada. Dry-van spot-market volumes from Toronto to Chicago rose 57% in the week ending Feb. 28, while rates in the cross-border lane rose 7%, according to DAT. Dewart noted that President Donald Trump plans to speak with Mexican President Claudia Sheinbaum Thursday, raising hopes that some tariff pressure may be relieved. “Frankly, the only trading partner that we have that knows how to handle [Trump] is Mexico’s Sheinbaum. She’s been able to work with him,” Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said at the Journal of Commerce’s TPM25 conference here Wednesday. Redesigning supply chains But the uncertainty is costing US importers millions of dollars not only in tariff duties but in delays and last-minute changes in supply chains, logistics providers said. “Pretty much when Trump was inaugurated, we started fielding a lot more requests for [supply chain] design work, for heavy volume flows inbound to the US from Mexico and Canada,” said Brashier. Now with many shipments stuck in transit, especially between Mexico and the US, it’s unclear what the impact will be on volumes and pricing in the days and weeks ahead — but costs aren’t likely to go down as long as the disruption persists. “Contract rates are in a holding pattern, I’d say, to see what happens next,” Dewart said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Transport, Trade and Regulation News

Surface

TPM25: ‘Chaos’ erupts as US tariffs disrupt cross-border trucking with Mexico, Canada

<div class="phx-topic abstract-wrapper">The head of the Agriculture Transportation Coalition told TPM25 that US exports of logs, fruits, nuts, soybeans and other agricultural products appear to be slowing due to China’s tariff countermeasures.</div>

The head of the Agriculture Transportation Coalition told TPM25 that US exports of logs, fruits, nuts, soybeans and other agricultural products appear to be slowing due to China’s tariff countermeasures.

<div class="phx-topic">Long Beach, California — Ocean carriers and US shippers are preparing themselves for the Trump administration’s reciprocal measures against China’s shipping industry, even as the details of those measures remain to be worked out. A leading lobbyist for US shippers says the escalating trade war is already hurting US exporters, who may be the one voice in Washington that can temper Trump’s moves. Several shippers told the Journal of Commerce that during meetings they held at TPM25 to discuss new ocean freight contracts, they discussed <a href="https://www.joc.com/article/us-port-tax-would-scramble-ocean-services-raise-shipper-costs-drewry-5952046">the US Trade Representative’s (USTR’s) proposed $1 million fee on US port calls by Chinese ocean carriers</a>, as well as similar fees on other ocean carriers with ships on order from China. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5951879_0.1.jpg"></img></div> The USTR has scheduled a March 24 public hearing on the fees. While the actual regulation still needs to be worked out, ocean carriers are readying a variety of responses, the shippers said. Those include spinoffs of their China-built ships into separate fleets that serve intra-Asia and European markets. Non-Chinese carriers are also floating surcharges to cover the port fees or asking for premium rates due to their lack of exposure to China-built ships. The risk of surcharges and the potential for reduced port calls due to the port fees will impact a broad swath of US shippers, Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said Wednesday at TPM25. However, the political will to halt those fees, as well the onslaught of Trump’s other actions that will affect shippers, is lacking, he added. While trade groups such as AgTC consistently voice concerns about how Trump’s actions affect shippers, Friedmann questioned the usefulness of those actions, saying that members of Congress “are not going to feel sorry for Walmart or Amazon.” However, he said appeals by individual constituents appear to be carrying more political weight. “When you’ve got a family pistachio grower, a congressman will drop everything on his schedule to drive 40 miles out to their orchard,” Friedmann said. Those types of appeals may be having some influence, he added, as some Republican lawmakers have started pushing back on Trump’s moves due to their impact on US farmers. China’s counter-tariffs on US imports appear to be already having an effect, Friedmann said, citing a log exporter that halted shipping several containers from the Pacific Northwest to China because of higher costs. He said exports of fruits, nuts, soybeans and other agricultural products also appear to be slowing due to China’s countermeasures. Even more troubling, China explicitly banned US soybean exports from three major traders — Louis Dreyfus, CHS and Export Trading Group, a joint venture of Bunge, South Korea’s Pan Ocean and US farmer cooperative Agtegra. While China used the pretext of sanitary issues with the exports, Friedmann said the move suggests a long-term decoupling from the US as China sources from other countries. “We don’t grow anything in the US that can’t be sourced from other countries,” he said. <h3>Dockworkers exposed </h3>Along with US farmers and small businesses sharing their stories of pain due to Trump’s moves, Friedmann said dockworkers are very exposed to Trump’s actions to reduce trade. While it was ironworker and shipbuilder unions that pushed the port fees, Friedmann said that longshore unions are well-placed to lobby against further trade measures. “Everybody in the trade community has got to convince the [longshore unions] that, regardless [of] what these other unions say, you need to protect your own jobs,” he said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Long Beach, California — Ocean carriers and US shippers are preparing themselves for the Trump administration’s reciprocal measures against China’s shipping industry, even as the details of those measures remain to be worked out. A leading lobbyist for US shippers says the escalating trade war is already hurting US exporters, who may be the one voice in Washington that can temper Trump’s moves. Several shippers told the Journal of Commerce that during meetings they held at TPM25 to discuss new ocean freight contracts, they discussed the US Trade Representative’s (USTR’s) proposed $1 million fee on US port calls by Chinese ocean carriers , as well as similar fees on other ocean carriers with ships on order from China. The USTR has scheduled a March 24 public hearing on the fees. While the actual regulation still needs to be worked out, ocean carriers are readying a variety of responses, the shippers said. Those include spinoffs of their China-built ships into separate fleets that serve intra-Asia and European markets. Non-Chinese carriers are also floating surcharges to cover the port fees or asking for premium rates due to their lack of exposure to China-built ships. The risk of surcharges and the potential for reduced port calls due to the port fees will impact a broad swath of US shippers, Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said Wednesday at TPM25. However, the political will to halt those fees, as well the onslaught of Trump’s other actions that will affect shippers, is lacking, he added. While trade groups such as AgTC consistently voice concerns about how Trump’s actions affect shippers, Friedmann questioned the usefulness of those actions, saying that members of Congress “are not going to feel sorry for Walmart or Amazon.” However, he said appeals by individual constituents appear to be carrying more political weight. “When you’ve got a family pistachio grower, a congressman will drop everything on his schedule to drive 40 miles out to their orchard,” Friedmann said. Those types of appeals may be having some influence, he added, as some Republican lawmakers have started pushing back on Trump’s moves due to their impact on US farmers. China’s counter-tariffs on US imports appear to be already having an effect, Friedmann said, citing a log exporter that halted shipping several containers from the Pacific Northwest to China because of higher costs. He said exports of fruits, nuts, soybeans and other agricultural products also appear to be slowing due to China’s countermeasures. Even more troubling, China explicitly banned US soybean exports from three major traders — Louis Dreyfus, CHS and Export Trading Group, a joint venture of Bunge, South Korea’s Pan Ocean and US farmer cooperative Agtegra. While China used the pretext of sanitary issues with the exports, Friedmann said the move suggests a long-term decoupling from the US as China sources from other countries. “We don’t grow anything in the US that can’t be sourced from other countries,” he said. Dockworkers exposed Along with US farmers and small businesses sharing their stories of pain due to Trump’s moves, Friedmann said dockworkers are very exposed to Trump’s actions to reduce trade. While it was ironworker and shipbuilder unions that pushed the port fees, Friedmann said that longshore unions are well-placed to lobby against further trade measures. “Everybody in the trade community has got to convince the [longshore unions] that, regardless [of] what these other unions say, you need to protect your own jobs,” he said. Contact Michael Angell at michael.angell@spglobal.com .

TPM25: US exporters starting to feel pinch of Trump trade war with China

<div class="phx-topic abstract-wrapper">The new service that will start in April will enhance Vietnam’s connectivity with Brazil, which is already Vietnam’s largest trading partner in Latin America. </div>

The new service that will start in April will enhance Vietnam’s connectivity with Brazil, which is already Vietnam’s largest trading partner in Latin America.

<div class="phx-topic">CMA CGM and Maersk will become the latest carriers to launch a joint Asia-East Coast South America (ECSA) service with a semi-express loop that is specifically targeting the significant trade growth between Brazil and Vietnam. The move follows a tie-up between HMM and Ocean Network Express (ONE) that will see the two carriers begin an express service linking Busan and South China with Brazil. Both the CMA CGM/Maersk and HMM/ONE connections will begin in April, just as container freight rates are anticipated to rise, according to one Brazilian-based freight forwarder. “Demand is stable and freight rates on Asia-ECSA are around $2,100 per FEU, at least until the middle of March,” Fabrizio De Paulis, managing director of forwarder De Paulis Logistics &amp; SCM, told the Journal of Commerce. “Rates will likely increase in April on improved demand,” he added. De Paulis pointed out rates have seen a steep decline since hitting about $8,000/FEU last July. CMA CGM said its Asia-South America East Coast 3 (SEAS3) service — known as the ASAS2 for Maersk — will provide a “unique service from Vietnam” while also streamlining shipments between Asia and Brazil with the limited number of port calls improving transit times. This is the first time CMA CGM and Maersk have teamed up on an Asia-ECSA service. Their separate existing services involve multiple ports calls in Asia and South America, including Argentina and Uruguay. Maersk said there will be a 37-day transit from Shanghai to Santos, 33 days from Shekou (Shenzhen) to Santos, and 29 days from Vung Tau to Santos, Latin America’s largest port. CMA CGM is providing seven vessels with a nominal capacity of 6,500 TEUs, while Maersk is deploying four ships on the service. The full rotation is Shanghai-Shekou-Vung Tau-Singapore-Santos-Singapore-Shanghai. <h3>Boost for Vietnam-Brazil connectivity </h3>Both CMA CGM and Maersk said the Vung Tau call will enhance Vietnam’s connectivity with Brazil, which is already Vietnam’s largest trading partner in Latin America. That comes as bilateral trade between the two countries is set to top $10 billion this year and $15 billion by 2030, up from about $8 billion last year, according to comments made last November by Vietnam Prime Minister Pham Minh Chinh. Vietnam’s exports to Brazil include seafood, rubber, textiles and footwear, while Brazil’s exports to Vietnam comprise soybeans, animal feed and cotton. CMA CGM said the calls at Vung Tau and Singapore will provide opportunities for transshipment cargo from other countries in Southeast Asia, including Thailand. The loop will be the first new service to call at the Santos Brasil Tecon Terminal since CMA CGM last September said it would acquire a 48% stake in Santos Brasil, the country’s leading terminal operator. The new service will provide shippers in Latin America and the Caribbean with additional options for Asia-bound cargo, with Santos acting as CMA CGM’s regional hub connecting other countries in the region. ONE and HMM will start their joint Asia-ECSA service in April from Busan, also with limited port calls to enhance transit times. The rotation is Busan–South China–Singapore–Rio Grande–Santos–Santa Catarina–Singapore–Hong Kong–Busan. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

CMA CGM and Maersk will become the latest carriers to launch a joint Asia-East Coast South America (ECSA) service with a semi-express loop that is specifically targeting the significant trade growth between Brazil and Vietnam. The move follows a tie-up between HMM and Ocean Network Express (ONE) that will see the two carriers begin an express service linking Busan and South China with Brazil. Both the CMA CGM/Maersk and HMM/ONE connections will begin in April, just as container freight rates are anticipated to rise, according to one Brazilian-based freight forwarder. “Demand is stable and freight rates on Asia-ECSA are around $2,100 per FEU, at least until the middle of March,” Fabrizio De Paulis, managing director of forwarder De Paulis Logistics & SCM, told the Journal of Commerce. “Rates will likely increase in April on improved demand,” he added. De Paulis pointed out rates have seen a steep decline since hitting about $8,000/FEU last July. CMA CGM said its Asia-South America East Coast 3 (SEAS3) service — known as the ASAS2 for Maersk — will provide a “unique service from Vietnam” while also streamlining shipments between Asia and Brazil with the limited number of port calls improving transit times. This is the first time CMA CGM and Maersk have teamed up on an Asia-ECSA service. Their separate existing services involve multiple ports calls in Asia and South America, including Argentina and Uruguay. Maersk said there will be a 37-day transit from Shanghai to Santos, 33 days from Shekou (Shenzhen) to Santos, and 29 days from Vung Tau to Santos, Latin America’s largest port. CMA CGM is providing seven vessels with a nominal capacity of 6,500 TEUs, while Maersk is deploying four ships on the service. The full rotation is Shanghai-Shekou-Vung Tau-Singapore-Santos-Singapore-Shanghai. Boost for Vietnam-Brazil connectivity Both CMA CGM and Maersk said the Vung Tau call will enhance Vietnam’s connectivity with Brazil, which is already Vietnam’s largest trading partner in Latin America. That comes as bilateral trade between the two countries is set to top $10 billion this year and $15 billion by 2030, up from about $8 billion last year, according to comments made last November by Vietnam Prime Minister Pham Minh Chinh. Vietnam’s exports to Brazil include seafood, rubber, textiles and footwear, while Brazil’s exports to Vietnam comprise soybeans, animal feed and cotton. CMA CGM said the calls at Vung Tau and Singapore will provide opportunities for transshipment cargo from other countries in Southeast Asia, including Thailand. The loop will be the first new service to call at the Santos Brasil Tecon Terminal since CMA CGM last September said it would acquire a 48% stake in Santos Brasil, the country’s leading terminal operator. The new service will provide shippers in Latin America and the Caribbean with additional options for Asia-bound cargo, with Santos acting as CMA CGM’s regional hub connecting other countries in the region. ONE and HMM will start their joint Asia-ECSA service in April from Busan, also with limited port calls to enhance transit times. The rotation is Busan–South China–Singapore–Rio Grande–Santos–Santa Catarina–Singapore–Hong Kong–Busan. Contact Keith Wallis at keithwallis@hotmail.com .

CMA CGM, Maersk become latest to launch joint express Asia-ECSA service

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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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