<div class="phx-topic abstract-wrapper">The Indamex 2, the weekly loop touted as the fastest connection between western India and the US East Coast, is set to see a 50% capacity reduction for loads out of India this month.</div>

The Indamex 2, the weekly loop touted as the fastest connection between western India and the US East Coast, is set to see a 50% capacity reduction for loads out of India this month.

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<div>As carriers active on the India-US trades struggle to balance a surplus of capacity with the current demand downturn, blank sailings or void calls seem to have become the inevitable tool for them to keep rates up after some recent signs of recovery. The Indamex 2 (India–US East Coast) string is set to see a 50% capacity reduction for loads out of India in September. According to data obtained from local port sources, the weekly loop, touted as the fastest connection between western India and the US East Coast, has declared only two sailings for India this month, the CSL...

As carriers active on the India-US trades struggle to balance a surplus of capacity with the current demand downturn, blank sailings or void calls seem to have become the inevitable tool for them to keep rates up after some recent signs of recovery. The Indamex 2 (India–US East Coast) string is set to see a 50% capacity reduction for loads out of India in September. According to data obtained from local port sources, the weekly loop, touted as the fastest connection between western India and the US East Coast, has declared only two sailings for India this month, the CSL Manhattan and CMA CGM Musset. The nine-vessel Indamex 2 is a joint operation between Hapag-Lloyd and CMA CGM, with stops at Nhava Sheva (JNPT) and Mundra on the Indian leg. Mumbai-based carrier sources who spoke with the Journal of Commerce downplayed the capacity cut strategy. “Blank sailings happen periodically in all trade lanes for vessels to catch up with their schedules as they have fixed berthing windows,” said a liner official who did not want to be identified. “Besides, if there is not enough cargo, carriers might, at times, be forced to skip some calls.” Daniel Krassenstein, global supply chain director of US-based industrial packaging manufacturer Procon Pacific, noted that with the yawning gap between supply and demand, the ability of carriers to raise rates undeniably comes from trimming available capacity. “The volume of Indian cargo to the East Coast is not strong,” said Krassenstein. “…So this [is a] game of artificial leveling off, though not significantly high.” Thanks to a wave of recent general rate increase (GRI) attempts, average contract prices for India–US East Coast cargo have moved up, with a 25% month-over-month increase reported for a TEU booking to New York in August. Another round of rate activity began on Sept. 1 — a $350 per-container peak season surcharge levy by Mediterranean Shipping Co. and CMA CGM, as well as a $200 per-box GRI notice by Hapag-Lloyd. Spot rates from India to the US East Coast have risen about 7% over the past three weeks, from $1,780 per FEU on Aug. 25 to $1,900 per FEU as of Sept. 14. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

North American ports

International ports

Container Shipping News

Ocean carriers on India-US trade cut sailings to keep rates afloat

<div class="phx-topic abstract-wrapper">In a statement posted on the FMC’s website, Sola said his last day at the agency would be June 30 and did not give a reason for his departure.</div>

In a statement posted on the FMC’s website, Sola said his last day at the agency would be June 30 and did not give a reason for his departure.

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<div class="phx-topic">Chairman Louis Sola announced Tuesday he is leaving the US Federal Maritime Commission (FMC) a mere five months after being <a href="https://www.joc.com/article/trump-appoints-louis-sola-to-chairmans-slot-at-fmc-5926442">appointed to lead the agency</a> responsible for regulating ocean trade to and from US ports. In a statement posted on the FMC’s website, Sola said his last day at the agency will be June 30. He did not give a reason for his departure. “I have had the privilege of helping safeguard the integrity of the US maritime industry, bringing greater transparency to port operations, and overseeing a supply chain that moves more than $5 trillion in goods annually,” Sola said in the statement. Sola, appointed to the commission in 2018 during President Donald Trump’s first term, pointed to work he did as a commissioner during the pandemic to resolve supply chain-related disruptions, as well as a recent investigation into flags of convenience, which resulted in calls for the deflagging of more than 140 sanctioned vessels. On Jan. 20, Trump elevated Sola to replace previous FMC Chairman Daniel Maffei, with a mandate to support initiatives around balanced trade and an emphasis on enhancing trade to and from Latin America. Early in his brief tenure as chairman, Sola was outspoken about whether the Panama Canal was a <a href="https://www.joc.com/article/fmc-chair-questions-level-playing-field-in-panama-canal-operations-5932469">“level playing field”</a> for US shippers due to Chinese operational involvement in ports on both ends of the canal. He also was leading an investigation into whether global chokepoints, primarily major canals, were hurting US maritime transportation interests. Sola formerly served on the Florida Board of Pilots Commissioners and as CEO of a ship and yacht brokerage before being nominated to the FMC. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Chairman Louis Sola announced Tuesday he is leaving the US Federal Maritime Commission (FMC) a mere five months after being appointed to lead the agency responsible for regulating ocean trade to and from US ports. In a statement posted on the FMC’s website, Sola said his last day at the agency will be June 30. He did not give a reason for his departure. “I have had the privilege of helping safeguard the integrity of the US maritime industry, bringing greater transparency to port operations, and overseeing a supply chain that moves more than $5 trillion in goods annually,” Sola said in the statement. Sola, appointed to the commission in 2018 during President Donald Trump’s first term, pointed to work he did as a commissioner during the pandemic to resolve supply chain-related disruptions, as well as a recent investigation into flags of convenience, which resulted in calls for the deflagging of more than 140 sanctioned vessels. On Jan. 20, Trump elevated Sola to replace previous FMC Chairman Daniel Maffei, with a mandate to support initiatives around balanced trade and an emphasis on enhancing trade to and from Latin America. Early in his brief tenure as chairman, Sola was outspoken about whether the Panama Canal was a “level playing field” for US shippers due to Chinese operational involvement in ports on both ends of the canal. He also was leading an investigation into whether global chokepoints, primarily major canals, were hurting US maritime transportation interests. Sola formerly served on the Florida Board of Pilots Commissioners and as CEO of a ship and yacht brokerage before being nominated to the FMC. Contact Eric Johnson at eric.johnson@spglobal.com .

Supply chain

Transport, Trade and Regulation News

Maritime

FMC’s Sola to leave agency months after being elevated to chairman’s slot

<div class="phx-topic abstract-wrapper">The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June.</div>

The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June.

<div class="phx-topic">Ports along the US West Coast are due to experience a short-lived cargo surge over the next few weeks as importers rush to bring goods into the country ahead of the expiry of temporary tariff relief implemented by the Trump administration. The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June. Kip Louttit, executive director of the Marine Exchange of Southern California, told the Journal of Commerce that vessel arrivals scheduled for the ports of Los Angeles and Long Beach in the coming weeks “are the highest container ships on-the-way levels since January 2025 and July and September 2024.” According to the ports’ websites, Los Angeles projects that imports this week will total 138,519 TEUs before dipping to 124,713 TEUs next week and 101,003 TEUs for the week of July 6. Long Beach is forecasting its imports will total 84,109 TEUs this week before jumping to 125,286 TEUs next week and 116,947 TEUs the week of July 6. Further out, 93,797 TEUs are expected for the week of July 13, rising again to 114,073 TEUs for the week of July 20. The ports consider 100,000 TEUs or greater to be a strong week. In May, Los Angeles totaled 320,878 TEUs in imports, or approximately 71,000 TEUs a week, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Long Beach saw 296,348 TEUs, or about 66,000 TEUs weekly. The import boost expected over the next few weeks comes ahead of <a href="https://www.joc.com/article/trans-pacific-spot-rates-falling-as-tariff-linked-demand-surge-loses-steam-6027420">two key dates put in place by the White House — July 9 and Aug. 14</a>. The first is when a 90-day reprieve on higher tariffs against essentially all US trading partners expires; the second is when similar relief on imports from China ends. What will happen after those dates is unknown. The Northwest Seaport Alliance (NWSA) of Seattle and Tacoma, meanwhile, forecasts 55 vessel arrivals for June, 49 in July and 48 in August. That’s up from 46 in May. “Looking forward, numbers will likely increase for the last two weeks in June,” a spokesperson for the NWSA told the Journal of Commerce. “There are both fewer blank sailings and additional cargo that is anticipated for the second half of the month.” West Coast ports should not face any significant congestion issues handling the spike in imports in the coming few weeks given the weak month of May. <h3>Could rate decline pause? </h3>An increase in import volumes over the coming weeks could slow the ongoing decline in spot rates in the eastbound trans-Pacific. The rate from Asia to the West Coast as of Monday was $2,900 per FEU, down 10% on the week and 50% lower than the recent high of $6,040 per FEU on June 6, according to Platts, a Journal of Commerce sister company within S&amp;P Global. “The trans-Pac just seems to be such a moving target,” a forwarder in the Pacific Northwest told the Journal of Commerce. “We’re updating our rates almost daily.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8c13a3e-9f5a-412f-8741-adbf5e1a7779"></dynamic-object></div>The import surge on the West Coast also seems to be additional proof that the peak shipping season — normally August through October — has come early this year. The most recent <a href="https://www.joc.com/article/pause-on-tariffs-prompts-us-retailers-to-upgrade-summer-import-forecast-6022230">Global Port Tracker</a> published by the National Retail Federation and Hackett Associates forecasts that US imports will decline 8.1% in July, 14.7% in August, 21.8% in September and 19.8% in October compared with the same months in 2024. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

Ports along the US West Coast are due to experience a short-lived cargo surge over the next few weeks as importers rush to bring goods into the country ahead of the expiry of temporary tariff relief implemented by the Trump administration. The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June. Kip Louttit, executive director of the Marine Exchange of Southern California, told the Journal of Commerce that vessel arrivals scheduled for the ports of Los Angeles and Long Beach in the coming weeks “are the highest container ships on-the-way levels since January 2025 and July and September 2024.” According to the ports’ websites, Los Angeles projects that imports this week will total 138,519 TEUs before dipping to 124,713 TEUs next week and 101,003 TEUs for the week of July 6. Long Beach is forecasting its imports will total 84,109 TEUs this week before jumping to 125,286 TEUs next week and 116,947 TEUs the week of July 6. Further out, 93,797 TEUs are expected for the week of July 13, rising again to 114,073 TEUs for the week of July 20. The ports consider 100,000 TEUs or greater to be a strong week. In May, Los Angeles totaled 320,878 TEUs in imports, or approximately 71,000 TEUs a week, according to PIERS, a sister company of the Journal of Commerce within S&P Global. Long Beach saw 296,348 TEUs, or about 66,000 TEUs weekly. The import boost expected over the next few weeks comes ahead of two key dates put in place by the White House — July 9 and Aug. 14 . The first is when a 90-day reprieve on higher tariffs against essentially all US trading partners expires; the second is when similar relief on imports from China ends. What will happen after those dates is unknown. The Northwest Seaport Alliance (NWSA) of Seattle and Tacoma, meanwhile, forecasts 55 vessel arrivals for June, 49 in July and 48 in August. That’s up from 46 in May. “Looking forward, numbers will likely increase for the last two weeks in June,” a spokesperson for the NWSA told the Journal of Commerce. “There are both fewer blank sailings and additional cargo that is anticipated for the second half of the month.” West Coast ports should not face any significant congestion issues handling the spike in imports in the coming few weeks given the weak month of May. Could rate decline pause? An increase in import volumes over the coming weeks could slow the ongoing decline in spot rates in the eastbound trans-Pacific. The rate from Asia to the West Coast as of Monday was $2,900 per FEU, down 10% on the week and 50% lower than the recent high of $6,040 per FEU on June 6, according to Platts, a Journal of Commerce sister company within S&P Global. “The trans-Pac just seems to be such a moving target,” a forwarder in the Pacific Northwest told the Journal of Commerce. “We’re updating our rates almost daily.” The import surge on the West Coast also seems to be additional proof that the peak shipping season — normally August through October — has come early this year. The most recent Global Port Tracker published by the National Retail Federation and Hackett Associates forecasts that US imports will decline 8.1% in July, 14.7% in August, 21.8% in September and 19.8% in October compared with the same months in 2024. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Laura Robb at laura.robb@spglobal.com .

Port News

Trans-Atlantic

Quick-hit, tariff-driven import surge on tap for US West Coast ports

<div class="phx-topic abstract-wrapper">CMA CGM, Maersk, MSC and Cosco are among mainliners charging add-ons on overweight containers.</div>

CMA CGM, Maersk, MSC and Cosco are among mainliners charging add-ons on overweight containers.

<div class="phx-topic">Indian cargo owners are facing a new wave of surcharges from major carriers on laden containers exceeding the standard weight threshold as westbound capacity suffers due to persistent schedule disruptions. CMA CGM, Maersk, Mediterranean Shipping Co. and Cosco Shipping are among mainliners charging add-ons on overweight containers, according to industry updates. Indian export trades hit by the surcharge wave include shipments to the US, the Mediterranean, Africa and South America. Local freight forwarders who spoke with the Journal of Commerce have confirmed that Maersk recently began levying a fee of $200 per TEU for shipments to the US weighing over 22 metric tons. Maersk now operates an enhanced “MECL” service on the India-US East Coast trade, with its space out of West India overbooked in recent weeks amid sailing cutbacks on competing networks. Similarly, CMA CGM from July 13 will implement an overweight surcharge of $600 per TEU for dry shipments over 18 metric tons moving to the East Coast of South America, complementing a $150-per-TEU fee it has already lined up for 27-ton-plus loads from West India to Mombasa (Kenya) and Dar es Salaam (Tanzania) beginning July 1. Forwarder sources noted that the lead carriers are trying to restrict heavy cargo loadings, especially stones, tiles and metal products, and instead target lightweight cargo to maximize capacity utilization through better vessel stowage planning. “Fewer 40-foot boxes in the market have also contributed to the overweight problem,” a sales executive at a European liner who didn’t want to be identified told the Journal of Commerce. “Our average container weight per TEU has been in the region of 19 metric tons to 19.5 metric tons, as against the 14-metric-ton limit, on many recent sailings.” A second forwarder said surcharges on heavier loads are now across the board, with the scale varying from carrier to carrier. “The carriers who are not charging [overweight fees] mostly do not accept manual cargo bookings,” the forwarder said. Shipper sources echoed that concern, noting that carriers typically try to push through additional surcharges as the industry heads into the traditional peak season. “We should expect more [surcharge] hits in the coming days,” a Mumbai-based yarn exporter said. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Indian cargo owners are facing a new wave of surcharges from major carriers on laden containers exceeding the standard weight threshold as westbound capacity suffers due to persistent schedule disruptions. CMA CGM, Maersk, Mediterranean Shipping Co. and Cosco Shipping are among mainliners charging add-ons on overweight containers, according to industry updates. Indian export trades hit by the surcharge wave include shipments to the US, the Mediterranean, Africa and South America. Local freight forwarders who spoke with the Journal of Commerce have confirmed that Maersk recently began levying a fee of $200 per TEU for shipments to the US weighing over 22 metric tons. Maersk now operates an enhanced “MECL” service on the India-US East Coast trade, with its space out of West India overbooked in recent weeks amid sailing cutbacks on competing networks. Similarly, CMA CGM from July 13 will implement an overweight surcharge of $600 per TEU for dry shipments over 18 metric tons moving to the East Coast of South America, complementing a $150-per-TEU fee it has already lined up for 27-ton-plus loads from West India to Mombasa (Kenya) and Dar es Salaam (Tanzania) beginning July 1. Forwarder sources noted that the lead carriers are trying to restrict heavy cargo loadings, especially stones, tiles and metal products, and instead target lightweight cargo to maximize capacity utilization through better vessel stowage planning. “Fewer 40-foot boxes in the market have also contributed to the overweight problem,” a sales executive at a European liner who didn’t want to be identified told the Journal of Commerce. “Our average container weight per TEU has been in the region of 19 metric tons to 19.5 metric tons, as against the 14-metric-ton limit, on many recent sailings.” A second forwarder said surcharges on heavier loads are now across the board, with the scale varying from carrier to carrier. “The carriers who are not charging [overweight fees] mostly do not accept manual cargo bookings,” the forwarder said. Shipper sources echoed that concern, noting that carriers typically try to push through additional surcharges as the industry heads into the traditional peak season. “We should expect more [surcharge] hits in the coming days,” a Mumbai-based yarn exporter said. Contact Bency Mathew at bencyvmathew@gmail.com .

Indian exporters face overweight box surcharges as carriers push scalability

<div class="phx-topic abstract-wrapper">Global vehicle carriers are set to feel the sting of a growing Chinese-operated ro/ro fleet amid a fight for international car cargoes.</div>

Global vehicle carriers are set to feel the sting of a growing Chinese-operated ro/ro fleet amid a fight for international car cargoes.

<div class="phx-topic">Chinese vehicle carrier operators are set to upend the roll-on/roll-off (ro/ro) cargo market, especially for eastbound backhaul vehicle, breakbulk and project cargo to China and Asia, senior maritime executives say. Speaking to the Journal of Commerce, the executives pointed out that carriers such as Cosco Shipping Specialized Carriers, SAIC Anji Logistics and BYD Auto are steadily increasing the number of pure car and truck carriers (PCTCs) in their fleets as Chinese vehicle exports continue to soar after hitting a high of 6 million units last year. Exports have grown a further 6% so far this year.  Stian Omli, co-founder and senior vice president of the shipping arm of Norwegian market intelligence company Esgian, said China’s eight major companies currently control 55 ships with a total capacity of 333,190 car equivalent units (CEUs). “This is equivalent to between 12% and 15% of the global deep-sea fleet,” Omli said. Data from Norwegian shipbroking house Hesnes Shipping, which has a strategic partnership with Esgian, showed a further 169 car carriers larger than 3,000 CEUs would be delivered from the second half of this year to 2028, the majority controlled by Chinese operators. Omli said the vessels would either be newbuild ships ordered by firms such as Cosco Shipping or chartered to the logistics affiliates of Chinese manufacturers such as BYD Auto or Geely Jisu from tonnage providers such as Singapore’s Eastern Pacific Shipping. The vessels include the BYD’s series of 9,200-CEU vessels, the largest in the world, which are being delivered beginning this year; the first, BYD Shenzhen, began its maiden voyage in April. <h3>Challenges of different operating models </h3>While these vessels are overshadowed by the almost 130 PCTCs operated by the world’s largest car carrier company, Norway’s Wallenius Wilhelmsen, Chinese operators serve just a handful of Chinese vehicle makers calling at a small number of ports. Consequently, port dwell and voyage times are lower and vessel utilization is improved, Omli said. As a result, Chinese operators can make more round-trip voyages in a year compared with carriers such as Wallenius, so annualized transport volumes per ship are higher. Wallenius CEO Lasse Kristoffersen said the average ro/ro ship makes just over three round-trip voyages a year due to changing operational conditions, including more port calls and schedule disruption caused by vessel diversions around southern Africa. Senior maritime executives said the Chinese vessels are largely dedicated to transporting Chinese-manufactured vehicles to export markets such as Europe and South America, but because the operators are recent entrants to the market, they don’t yet have the customer network to generate return cargo. Cutting freight rates is one likely way they will generate those cargo volumes, the executives added. “The PCTC market is transforming. Traditional carriers such as Wallenius Wilhelmsen and Höegh Autoliners are now in competition with new Chinese players,” Paris Venetos, business development director at Venetos Maritime, told the Journal of Commerce. The Piraeus, Greece-based company is actively involved in vehicle shipments from China to the Mediterranean, Europe and the Middle East, especially new electric vehicle entrants into the region. “But what I think will generate even bigger stress is the scramble for return cargo to China from Europe and elsewhere,” Ventos said. “Traditional PCTC operators have had this nice market. But now, Chinese carriers will need return cargo from northern Europe or the Mediterranean to China or the US to Europe or Asia. Consequently, competition will become increasingly harsh.” He indicated there could be a rate war as Chinese carriers undercut traditional operators to secure backhaul freight. “Return cargo will become the new battleground for brutal fights to the benefit of the cargo owners,” Venetos said. Esgian’s Omli agreed that dumping rates was one way to secure return freight. “But incumbent carriers like Wilhelmsen have a much better relationship with European and US cargo owners and have a terminals and logistics organization to support it,” he said. “It will take time for Chinese operators to build this up.” Omli added that the established operators also have an “upper hand” when it comes to the shipment of high and heavy machines and industrial equipment, used cars, breakbulk and project cargo, which typically comprise return cargo. <h3>Overseas expansion of Chinese auto brands </h3>Wallenius Wilhelmsen and Höegh Autoliners did not respond to requests for comment from the Journal of Commerce on the challenges posed by Chinese ro/ro operators. But carriers such as Wilhelmsen and “K” Line are facing a widening imbalance with fronthaul volumes from Asia outpacing backhaul cargo from Europe and the US over the last six years. The imbalance was 4.6 million vehicles in 2019, but that surged 132% to 10.7 million vehicles last year as European and US manufacturers lost market share in Asia while Chinese, South Korean and Japanese vehicle makers gained market share in Europe and the US, according to motor industry association figures. Advisory firm AlixPartners forecast that trend would accelerate in the next five years, with local Chinese auto brands gaining 76% of China’s domestic market by 2030 at the expense of foreign makers. Lackluster sales of 3% in China this year will spur further overseas expansion. Chinese automakers are forecast to double their European market share to 10% by 2030, according to the 2025 AlixPartners Global Automotive Outlook published on June 19. “I’d say that the competitive supply and demand pressures for car carrier operators are likely to increase, and we’ll see a more diversified operator market with newcomers adding capacity and boosting their relative competitive position,” Omli said. “But there are many uncertainties, including the reopening of the Red Sea and Suez Canal, with the shortest transit route to Europe and the Mediterranean immediately adding the equivalent of more than 35 ships in extra capacity.” Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Chinese vehicle carrier operators are set to upend the roll-on/roll-off (ro/ro) cargo market, especially for eastbound backhaul vehicle, breakbulk and project cargo to China and Asia, senior maritime executives say. Speaking to the Journal of Commerce, the executives pointed out that carriers such as Cosco Shipping Specialized Carriers, SAIC Anji Logistics and BYD Auto are steadily increasing the number of pure car and truck carriers (PCTCs) in their fleets as Chinese vehicle exports continue to soar after hitting a high of 6 million units last year. Exports have grown a further 6% so far this year.  Stian Omli, co-founder and senior vice president of the shipping arm of Norwegian market intelligence company Esgian, said China’s eight major companies currently control 55 ships with a total capacity of 333,190 car equivalent units (CEUs). “This is equivalent to between 12% and 15% of the global deep-sea fleet,” Omli said. Data from Norwegian shipbroking house Hesnes Shipping, which has a strategic partnership with Esgian, showed a further 169 car carriers larger than 3,000 CEUs would be delivered from the second half of this year to 2028, the majority controlled by Chinese operators. Omli said the vessels would either be newbuild ships ordered by firms such as Cosco Shipping or chartered to the logistics affiliates of Chinese manufacturers such as BYD Auto or Geely Jisu from tonnage providers such as Singapore’s Eastern Pacific Shipping. The vessels include the BYD’s series of 9,200-CEU vessels, the largest in the world, which are being delivered beginning this year; the first, BYD Shenzhen, began its maiden voyage in April. Challenges of different operating models While these vessels are overshadowed by the almost 130 PCTCs operated by the world’s largest car carrier company, Norway’s Wallenius Wilhelmsen, Chinese operators serve just a handful of Chinese vehicle makers calling at a small number of ports. Consequently, port dwell and voyage times are lower and vessel utilization is improved, Omli said. As a result, Chinese operators can make more round-trip voyages in a year compared with carriers such as Wallenius, so annualized transport volumes per ship are higher. Wallenius CEO Lasse Kristoffersen said the average ro/ro ship makes just over three round-trip voyages a year due to changing operational conditions, including more port calls and schedule disruption caused by vessel diversions around southern Africa. Senior maritime executives said the Chinese vessels are largely dedicated to transporting Chinese-manufactured vehicles to export markets such as Europe and South America, but because the operators are recent entrants to the market, they don’t yet have the customer network to generate return cargo. Cutting freight rates is one likely way they will generate those cargo volumes, the executives added. “The PCTC market is transforming. Traditional carriers such as Wallenius Wilhelmsen and Höegh Autoliners are now in competition with new Chinese players,” Paris Venetos, business development director at Venetos Maritime, told the Journal of Commerce. The Piraeus, Greece-based company is actively involved in vehicle shipments from China to the Mediterranean, Europe and the Middle East, especially new electric vehicle entrants into the region. “But what I think will generate even bigger stress is the scramble for return cargo to China from Europe and elsewhere,” Ventos said. “Traditional PCTC operators have had this nice market. But now, Chinese carriers will need return cargo from northern Europe or the Mediterranean to China or the US to Europe or Asia. Consequently, competition will become increasingly harsh.” He indicated there could be a rate war as Chinese carriers undercut traditional operators to secure backhaul freight. “Return cargo will become the new battleground for brutal fights to the benefit of the cargo owners,” Venetos said. Esgian’s Omli agreed that dumping rates was one way to secure return freight. “But incumbent carriers like Wilhelmsen have a much better relationship with European and US cargo owners and have a terminals and logistics organization to support it,” he said. “It will take time for Chinese operators to build this up.” Omli added that the established operators also have an “upper hand” when it comes to the shipment of high and heavy machines and industrial equipment, used cars, breakbulk and project cargo, which typically comprise return cargo. Overseas expansion of Chinese auto brands Wallenius Wilhelmsen and Höegh Autoliners did not respond to requests for comment from the Journal of Commerce on the challenges posed by Chinese ro/ro operators. But carriers such as Wilhelmsen and “K” Line are facing a widening imbalance with fronthaul volumes from Asia outpacing backhaul cargo from Europe and the US over the last six years. The imbalance was 4.6 million vehicles in 2019, but that surged 132% to 10.7 million vehicles last year as European and US manufacturers lost market share in Asia while Chinese, South Korean and Japanese vehicle makers gained market share in Europe and the US, according to motor industry association figures. Advisory firm AlixPartners forecast that trend would accelerate in the next five years, with local Chinese auto brands gaining 76% of China’s domestic market by 2030 at the expense of foreign makers. Lackluster sales of 3% in China this year will spur further overseas expansion. Chinese automakers are forecast to double their European market share to 10% by 2030, according to the 2025 AlixPartners Global Automotive Outlook published on June 19. “I’d say that the competitive supply and demand pressures for car carrier operators are likely to increase, and we’ll see a more diversified operator market with newcomers adding capacity and boosting their relative competitive position,” Omli said. “But there are many uncertainties, including the reopening of the Red Sea and Suez Canal, with the shortest transit route to Europe and the Mediterranean immediately adding the equivalent of more than 35 ships in extra capacity.” Contact Keith Wallis at keithwallis@hotmail.com .

Ro/ro cargo

Heavy-haul transport

Rate dumping fears emerge as Chinese ro/ro operators eye European expansion

<div class="phx-topic abstract-wrapper">The fees come as dwell times for refrigerated containers in Houston exceed a week and reefer volumes topped 10,000 TEUs for the first time in three years.</div>

The fees come as dwell times for refrigerated containers in Houston exceed a week and reefer volumes topped 10,000 TEUs for the first time in three years.

<div class="phx-topic">Port Houston will implement new fees next month to force the movement of long-dwelling refrigerated import containers at the port. That comes as dwell times for reefer containers in Houston — a long-running problem — exceed a week and reefer volumes topped 10,000 TEUs for the first time in three years. “We are implementing these fees to maintain current operations, encourage the flow of cargo, and protect and add capacity ahead of forecasted demand,” Chief Port Operations Officer Ryan Mariacher told the Journal of Commerce. The new fees, which begin July 1 and kick in after one week of free time for most cargo, are $51.60 per day per container for one to three days, $77.40 per day for four to seven days, $103.20 per day for eight to 13 days, and $154.80 per day for 14 or more gate days. The new fees will override the existing sustained import dwell fee, which is $45 per day after one week. Mariacher acknowledged that reefer equipment at Houston is “dwelling excessively ... more than seven days.” The number of reefer containers being moved through Houston has risen every month between February and May, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global, with the boxes containing a variety of cargo including frozen chicken paws, shrimp, prawns, meat, plantains and pineapples. In May, the most recent data available, total reefer throughput was 10,747 TEUs — exceeding 10,000 TEUs for the first time since May 2022, according to PIERS. Reefer volume in May was up 40% over the same month a year earlier. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

Port Houston will implement new fees next month to force the movement of long-dwelling refrigerated import containers at the port. That comes as dwell times for reefer containers in Houston — a long-running problem — exceed a week and reefer volumes topped 10,000 TEUs for the first time in three years. “We are implementing these fees to maintain current operations, encourage the flow of cargo, and protect and add capacity ahead of forecasted demand,” Chief Port Operations Officer Ryan Mariacher told the Journal of Commerce. The new fees, which begin July 1 and kick in after one week of free time for most cargo, are $51.60 per day per container for one to three days, $77.40 per day for four to seven days, $103.20 per day for eight to 13 days, and $154.80 per day for 14 or more gate days. The new fees will override the existing sustained import dwell fee, which is $45 per day after one week. Mariacher acknowledged that reefer equipment at Houston is “dwelling excessively ... more than seven days.” The number of reefer containers being moved through Houston has risen every month between February and May, according to PIERS, a sister product of the Journal of Commerce within S&P Global, with the boxes containing a variety of cargo including frozen chicken paws, shrimp, prawns, meat, plantains and pineapples. In May, the most recent data available, total reefer throughput was 10,747 TEUs — exceeding 10,000 TEUs for the first time since May 2022, according to PIERS. Reefer volume in May was up 40% over the same month a year earlier. Contact Laura Robb at laura.robb@spglobal.com . 

Port Houston implementing reefer dwell fees to encourage container flow

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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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