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<div class="phx-topic abstract-wrapper">The Panalpina Group recently added 42,000 square feet of warehouse space to its supply chain management portfolio in the Los Angeles area.</div>

The Panalpina Group recently added 42,000 square feet of warehouse space to its supply chain management portfolio in the Los Angeles area.

<div>The Panalpina Group recently added 42,000 square feet of warehouse space to its supply chain management portfolio in the Los Angeles area. The expansion is expected to meet growing demand in southern California. &amp;ldquo;As companies are increasingly outsourcing all but core functions, this latest expansion in the crucial Southern California market is customer and market driven,&amp;rdquo; said Lucas Kuehner, U.S.A. managing director. &amp;ldquo;Our Los Angeles business unit is gearing the new space to clientele that will most benefit from broader and more comprehensive supply chain involvement.&amp;rdquo; &amp;ldquo;In order to accommodate recent awards and proposed new business from existing customers in...

The Panalpina Group recently added 42,000 square feet of warehouse space to its supply chain management portfolio in the Los Angeles area. The expansion is expected to meet growing demand in southern California. &ldquo;As companies are increasingly outsourcing all but core functions, this latest expansion in the crucial Southern California market is customer and market driven,&rdquo; said Lucas Kuehner, U.S.A. managing director. &ldquo;Our Los Angeles business unit is gearing the new space to clientele that will most benefit from broader and more comprehensive supply chain involvement.&rdquo; &ldquo;In order to accommodate recent awards and proposed new business from existing customers in the hi-tech and couture industries, we realized that it made a lot of sense to secure the additional space, fitting it with mobile logistics racking and shelving,&rdquo; Kuehner said. Contact Thomas L. Gallagher at tgallagher@joc.com .

Panalpina Adds Los Angeles Capacity

<div class="phx-topic abstract-wrapper">Cross-border supply chains need to become more integrated and efficient to increase capacity on both sides of a constricted border, logistics executives say. </div>

Cross-border supply chains need to become more integrated and efficient to increase capacity on both sides of a constricted border, logistics executives say.

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<div class="phx-topic">Rapid growth in US-Mexico trade is forcing a maturation of cross-border supply chain networks that logistics executives say will be critical as freight volumes rise. New warehouses and logistics facilities are opening almost weekly at freight crossings such as Laredo and El Paso, Texas. But those facilities are only the tip of the spear. Behind them lie complicated communication and transportation lines linking those nodes that form cross-border supply chains. Those networks take more work to build than the nodes themselves. And the strength of those networks is becoming more critical. The networks taking shape today are more diverse, transparent and intermodal than those in place before the COVID-19 pandemic, shippers and their logistics partners say. Shippers that once relied on one or two border crossings now must consider multiple lanes and crossings as well as greater use of intermodal rail and other modes. Despite the number of new logistics centers and warehouses going up, the number of border crossings is finite and difficult to expand. That makes more efficient networks, powered by technology, key to creating the capacity needed to keep up with trade. From January through September, the value of US trade with Mexico reached $632.3 billion, 36.5% higher than the same period in 2019, according to US Census Bureau data. The number of northbound trucks entering the US from Mexico is rising, too, climbing 18.1% in the first nine months of 2024 compared with the same period in 2019, according to data from the US Bureau of Transportation Statistics. There are only 21 truck border crossings along the US-Mexico border. Efforts are underway to expand the number of lanes at some crossings, but construction takes time. “Building and expanding networks drives scalability,” said Mike Burkhart, vice president for Mexico and Canada business at third-party logistics company C.H. Robinson Worldwide. And scalability is needed to keep up with increased cross-border freight demand. “However, it’s also important to build contingences in the event that a portion of your network changes,” Burkhart told the Journal of Commerce. Border crossings can be shut down or become congested quickly thanks to inspections or <a href="https://www.joc.com/article/mexican-systems-failures-disrupting-cross-border-trade-with-us-5222387">customs systems failures</a>. <h3>New partnerships</h3>More action is taking place outside the warehouse walls. Global freight forwarder Gebrüder Weiss, for example, is partnering with Cargado, an invite-only <a href="https://www.joc.com/article/new-cross-border-trucking-platform-aims-to-enable-brokers-5731985">cross-border load board</a>. Its goal is to make cross-border shipping more interconnected and transparent. A major difference between 2024 and the pre-pandemic era is the availability of better visibility tools, said Joe Aguirre, director of southern border solutions for Gebrüder Weiss in El Paso. “We need to know if and when we might need another 300 trucks,” Aguirre said. Cargado will help provide that visibility and greater access to truckload capacity. The need for greater supply-chain visibility extends beyond the US-Mexico border, said Aguirre. “If it takes a vessel five days longer to reach a port than scheduled, that can dramatically affect a customer’s production at factories in Mexico,” he said. When container ships backed up in Long Beach and Los Angeles during the pandemic due to high volumes, Gebrüder Weiss diverted some cargo to the Mexican port of Manzanillo. “We went from 95 days from Shanghai to El Paso to 35 days from Shanghai to Juárez,” Aguirre said. Agile and fast systems are needed to affect that type of switch. “You need experience, not just within the four walls of the warehouse, but from the data perspective as well,” he said. Hub Group and Mexican drayage carrier Transportes Easo last <a href="https://www.joc.com/article/hub-group-boosts-cross-border-business-in-jv-with-mexican-dray-carrier-5745355">month formed a joint venture to share resources</a> on cross-border intermodal moves. And less-than-truckload (LTL) carrier Southeastern Freight Lines added a new lane to Las Cruces, New Mexico, part of the Borderplex region that includes El Paso and Ciudad Juárez. All these developments underscore the desire and need to extend and strengthen cross-border transportation networks as the volumes moving through border crossings such as Laredo, El Paso, Otay Mesa and many smaller ports of entry continue to grow. “This is a challenge now and it will become even more complicated over the next few years,” Jesus Ojeda, executive vice president for Mexico business at Uber Freight, told the Journal of Commerce. Uber Freight manages 2,000 cross-border US-Mexico shipments daily. The logistics provider is gaining more cross-border business from existing customers in a variety of industries. That shipper base has increased its cross-border activity with Uber Freight by 77% this year, the company said, and Ojeda doesn’t see that trend slowing. “Our customers are experiencing increasing volumes, and they’re trying to push more materials out from their facilities, more shipments, so they can produce more,” he said. <h3>Efficiency adds capacity </h3>Short of building more bridges and warehouses, the quickest way to gain needed capacity is by increasing efficiency in cross-border moves and end-to-end supply chains. “Efficiency, meaning expedient processes and systems, is going to be crucial in the development of these supply chains,” Gabriel Guajardo, director for the southern US border at Echo Global Logistics, told the Journal of Commerce. “Either you become more efficient to create capacity, or you just have to get more equipment,” Guajardo said. “The ability to use technology to quickly release equipment, avoiding delays, is going to be very important as we continue to grow.” That means implementing existing technology such as yard management systems (YMSs) and transportation management systems (TMSs) to create metrics and measure efficiency. “A streamlined process is going to be very attractive” to carriers and shippers, Guajardo said. At some point, streamlining may mean moving freight faster to locations beyond the border. Laredo is the flashpoint for logistics construction, but logistics development activity stretches from border crossings to hubs such as Dallas, Phoenix and beyond. “Is there a way to establish an Inland Empire of sorts in Texas?” Holly Pearce, director of North American Logistics for Otis Elevator Company, said at the Journal of Commerce Inland Distribution Conference (Inland24) last month, referring to the Southern California warehouse hub. Pearce, who in previous jobs has managed cross-border supply to maquila factories in Mexico, said expediting pre-cleared tractor-trailers from Mexico to foreign trade zones in Texas may be a partial solution to the congestion/capacity problem at the border. ”As shippers, we need to commit to this,” she said. “We need to say ‘yes, we’re in. We’re going to put our roots down as well.’” US-Mexico trade “is only going to get bigger, and unless we have investment in infrastructure, it’s just going to be chaos,” Pearce said. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Rapid growth in US-Mexico trade is forcing a maturation of cross-border supply chain networks that logistics executives say will be critical as freight volumes rise. New warehouses and logistics facilities are opening almost weekly at freight crossings such as Laredo and El Paso, Texas. But those facilities are only the tip of the spear. Behind them lie complicated communication and transportation lines linking those nodes that form cross-border supply chains. Those networks take more work to build than the nodes themselves. And the strength of those networks is becoming more critical. The networks taking shape today are more diverse, transparent and intermodal than those in place before the COVID-19 pandemic, shippers and their logistics partners say. Shippers that once relied on one or two border crossings now must consider multiple lanes and crossings as well as greater use of intermodal rail and other modes. Despite the number of new logistics centers and warehouses going up, the number of border crossings is finite and difficult to expand. That makes more efficient networks, powered by technology, key to creating the capacity needed to keep up with trade. From January through September, the value of US trade with Mexico reached $632.3 billion, 36.5% higher than the same period in 2019, according to US Census Bureau data. The number of northbound trucks entering the US from Mexico is rising, too, climbing 18.1% in the first nine months of 2024 compared with the same period in 2019, according to data from the US Bureau of Transportation Statistics. There are only 21 truck border crossings along the US-Mexico border. Efforts are underway to expand the number of lanes at some crossings, but construction takes time. “Building and expanding networks drives scalability,” said Mike Burkhart, vice president for Mexico and Canada business at third-party logistics company C.H. Robinson Worldwide. And scalability is needed to keep up with increased cross-border freight demand. “However, it’s also important to build contingences in the event that a portion of your network changes,” Burkhart told the Journal of Commerce. Border crossings can be shut down or become congested quickly thanks to inspections or customs systems failures . New partnerships More action is taking place outside the warehouse walls. Global freight forwarder Gebrüder Weiss, for example, is partnering with Cargado, an invite-only cross-border load board . Its goal is to make cross-border shipping more interconnected and transparent. A major difference between 2024 and the pre-pandemic era is the availability of better visibility tools, said Joe Aguirre, director of southern border solutions for Gebrüder Weiss in El Paso. “We need to know if and when we might need another 300 trucks,” Aguirre said. Cargado will help provide that visibility and greater access to truckload capacity. The need for greater supply-chain visibility extends beyond the US-Mexico border, said Aguirre. “If it takes a vessel five days longer to reach a port than scheduled, that can dramatically affect a customer’s production at factories in Mexico,” he said. When container ships backed up in Long Beach and Los Angeles during the pandemic due to high volumes, Gebrüder Weiss diverted some cargo to the Mexican port of Manzanillo. “We went from 95 days from Shanghai to El Paso to 35 days from Shanghai to Juárez,” Aguirre said. Agile and fast systems are needed to affect that type of switch. “You need experience, not just within the four walls of the warehouse, but from the data perspective as well,” he said. Hub Group and Mexican drayage carrier Transportes Easo last month formed a joint venture to share resources on cross-border intermodal moves. And less-than-truckload (LTL) carrier Southeastern Freight Lines added a new lane to Las Cruces, New Mexico, part of the Borderplex region that includes El Paso and Ciudad Juárez. All these developments underscore the desire and need to extend and strengthen cross-border transportation networks as the volumes moving through border crossings such as Laredo, El Paso, Otay Mesa and many smaller ports of entry continue to grow. “This is a challenge now and it will become even more complicated over the next few years,” Jesus Ojeda, executive vice president for Mexico business at Uber Freight, told the Journal of Commerce. Uber Freight manages 2,000 cross-border US-Mexico shipments daily. The logistics provider is gaining more cross-border business from existing customers in a variety of industries. That shipper base has increased its cross-border activity with Uber Freight by 77% this year, the company said, and Ojeda doesn’t see that trend slowing. “Our customers are experiencing increasing volumes, and they’re trying to push more materials out from their facilities, more shipments, so they can produce more,” he said. Efficiency adds capacity Short of building more bridges and warehouses, the quickest way to gain needed capacity is by increasing efficiency in cross-border moves and end-to-end supply chains. “Efficiency, meaning expedient processes and systems, is going to be crucial in the development of these supply chains,” Gabriel Guajardo, director for the southern US border at Echo Global Logistics, told the Journal of Commerce. “Either you become more efficient to create capacity, or you just have to get more equipment,” Guajardo said. “The ability to use technology to quickly release equipment, avoiding delays, is going to be very important as we continue to grow.” That means implementing existing technology such as yard management systems (YMSs) and transportation management systems (TMSs) to create metrics and measure efficiency. “A streamlined process is going to be very attractive” to carriers and shippers, Guajardo said. At some point, streamlining may mean moving freight faster to locations beyond the border. Laredo is the flashpoint for logistics construction, but logistics development activity stretches from border crossings to hubs such as Dallas, Phoenix and beyond. “Is there a way to establish an Inland Empire of sorts in Texas?” Holly Pearce, director of North American Logistics for Otis Elevator Company, said at the Journal of Commerce Inland Distribution Conference (Inland24) last month, referring to the Southern California warehouse hub. Pearce, who in previous jobs has managed cross-border supply to maquila factories in Mexico, said expediting pre-cleared tractor-trailers from Mexico to foreign trade zones in Texas may be a partial solution to the congestion/capacity problem at the border. ”As shippers, we need to commit to this,” she said. “We need to say ‘yes, we’re in. We’re going to put our roots down as well.’” US-Mexico trade “is only going to get bigger, and unless we have investment in infrastructure, it’s just going to be chaos,” Pearce said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

More efficient cross-border networks needed as US-Mexico trade rises

<div class="phx-topic abstract-wrapper">The carrier has been restrained with its order book up to now, but the order for 312,000 TEUs of capacity comes as pressure to meet 2030 interim decarbonization targets intensifies.</div>

The carrier has been restrained with its order book up to now, but the order for 312,000 TEUs of capacity comes as pressure to meet 2030 interim decarbonization targets intensifies.

<div class="phx-topic">Hapag-Lloyd has placed a $4 billion order for 24 new dual-fuel ships capable of running on liquefied natural gas (LNG) that will be used to both expand existing services and replace older tonnage. The 312,000 TEUs in capacity — comprising 12 ships of 16,800 TEUs and 12 of 9,200 TEUs — will be delivered between 2027 and 2029 and are part of the carrier’s preparations for a multi-fuel future. Hapag-Lloyd has five ships being retrofitted for methanol propulsion. “This investment is one of the largest in the recent history of Hapag-Lloyd, and it represents a significant milestone for our company as it pursues the goals of its Strategy 2030, such as to grow while also modernizing and decarbonizing our fleet,” CEO Rolf Habben Jansen said in a statement Wednesday. The vessels will be equipped with low-emission, high-pressure LNG dual-fuel engines that can operate on biomethane, reducing CO2-equivalent emissions by up to 95% compared with conventional propulsion systems, and will also be able to convert to ammonia. By 2030, Hapag-Lloyd aims to reduce the absolute greenhouse gas emissions of fleet operations by about one-third compared with 2022 on its way to a net-zero fleet operation by 2045. The carrier said the goal would be achieved by investing in modern efficient newbuildings, slow steaming, fleet modernization and the use of new propulsion technologies and alternative fuels, “which will allow customers to benefit from multiple green transport options at the same time.” <h3>Alternative fuel availability driving orders </h3>Almost 80% of the ship orders made so far this year are for vessels capable of sailing on methanol or LNG, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Methanol ships comprise 21.1% of the order book, LNG 33.3% and traditional bunker fuels 45.6%. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1a054077-7728-4ffd-abb8-b7aff17c3235"></dynamic-object></div>Pressure is growing on carriers to meet the International Maritime Organization’s (IMO’s) interim goal of ensuring that zero- or near-zero-emission fuels make up 5% to 10% of all shipping fuels by 2030. The 5% target is considered the critical mass at which the infrastructure, supply chains and technology that support zero-emission fuels mature and enable exponential growth. The availability of alternatives to fossil fuels to meet the IMO’s targets is having <a href="https://www.joc.com/article/lack-of-clarity-over-clean-energy-supply-driving-dual-fuel-ship-orders-5747200">a greater impact on the ship-ordering process</a>, with carriers wary of locking themselves into an unviable fuel pathway. The need to keep fuel options open was illustrated in <a href="https://www.joc.com/article/maersks-lng-order-hedges-bet-on-green-fuel-technology-ceo-5703200">a recent Maersk order for dual-fuel vessels totaling 800,000 TEUs</a> capable of sailing on methanol as well as LNG, a deviation from its deep dive into methanol. The carrier has this year taken delivery of seven dual-fuel, methanol-capable 16,592-TEU ships from an 18-vessel order. CMA CGM has so far invested $18 billion in orders for 131 vessels capable of sailing on both fossil fuels and low- or zero-carbon alternatives such as biomethane, biomethanol and synthetic fuels. Most of the vessels will be operational by 2028. Several carriers have <a href="https://www.joc.com/article/maersk-secures-long-term-methanol-supply-in-china-production-deal-5781961">made deals with fuel producers</a> to develop production facilities and fuel supply chains and lock in supply for the new ships as they come online. <h3>Flood of new ships coming online </h3>The new ship orders are throwing a spotlight on the expanding order book and the flood of new ships that are steadily coming online. Orders have been made for a total of 7.6 million TEUs in capacity, or 25% of the total in-service fleet, while 410 ships with a capacity of 2.5 million TEUs have been delivered in the first 10 months of the year, according to Neils Rasmussen, chief shipping analyst at BIMCO. The container fleet now consists of 6,699 ships with a capacity of 30.4 million TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a8d0b28a-aa44-473b-941a-d2f6b4f6cafd"></dynamic-object></div>Rasmussen said in a market update this week that another 500,000 TEUs are scheduled to be delivered during the last two months of 2024, driving deliveries for the year close to 3 million TEUs. Over the next four years, an average of 1.7 million TEUs are scheduled to be delivered each year, with 300,000 TEUs already planned for delivery in 2029. “Despite the rapid expansion of the fleet, owners continue to add orders for new ships,” Rasmussen said, but he added that actual fleet growth would depend on future recycling. “After a few years of very low recycling, 3.4 million TEUs will be more than 20 years old next year and prime candidates for recycling in the coming years,” he said. “If they are all recycled during the next five years, fleet growth from the current order book can be limited to 14% [the lower figure in a 14% to 19% range].” That point was also made by Maersk CEO Vincent Clerc last week during the carrier’s third-quarter earnings call and by Alphaliner in a recent newsletter. Clerc said <a href="https://www.joc.com/article/scrapping-slow-steaming-demand-will-limit-capacity-overhang-clerc-5785020">scrapping would help to limit the excess capacity</a>, a comment borne out by the analyst who noted that the top 10 operators could use 44% of their combined order book just to replace the oldest ships in service rather than for growth. Mediterranean Shipping Co. has the industry’s largest order book that, at 2 million TEUs, is almost the size of Hapag-Lloyd’s in-service fleet, but Alphaliner said 60% of the capacity on order could be used to replace MSC’s aging vessels. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd has placed a $4 billion order for 24 new dual-fuel ships capable of running on liquefied natural gas (LNG) that will be used to both expand existing services and replace older tonnage. The 312,000 TEUs in capacity — comprising 12 ships of 16,800 TEUs and 12 of 9,200 TEUs — will be delivered between 2027 and 2029 and are part of the carrier’s preparations for a multi-fuel future. Hapag-Lloyd has five ships being retrofitted for methanol propulsion. “This investment is one of the largest in the recent history of Hapag-Lloyd, and it represents a significant milestone for our company as it pursues the goals of its Strategy 2030, such as to grow while also modernizing and decarbonizing our fleet,” CEO Rolf Habben Jansen said in a statement Wednesday. The vessels will be equipped with low-emission, high-pressure LNG dual-fuel engines that can operate on biomethane, reducing CO2-equivalent emissions by up to 95% compared with conventional propulsion systems, and will also be able to convert to ammonia. By 2030, Hapag-Lloyd aims to reduce the absolute greenhouse gas emissions of fleet operations by about one-third compared with 2022 on its way to a net-zero fleet operation by 2045. The carrier said the goal would be achieved by investing in modern efficient newbuildings, slow steaming, fleet modernization and the use of new propulsion technologies and alternative fuels, “which will allow customers to benefit from multiple green transport options at the same time.” Alternative fuel availability driving orders Almost 80% of the ship orders made so far this year are for vessels capable of sailing on methanol or LNG, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. Methanol ships comprise 21.1% of the order book, LNG 33.3% and traditional bunker fuels 45.6%. Pressure is growing on carriers to meet the International Maritime Organization’s (IMO’s) interim goal of ensuring that zero- or near-zero-emission fuels make up 5% to 10% of all shipping fuels by 2030. The 5% target is considered the critical mass at which the infrastructure, supply chains and technology that support zero-emission fuels mature and enable exponential growth. The availability of alternatives to fossil fuels to meet the IMO’s targets is having a greater impact on the ship-ordering process , with carriers wary of locking themselves into an unviable fuel pathway. The need to keep fuel options open was illustrated in a recent Maersk order for dual-fuel vessels totaling 800,000 TEUs capable of sailing on methanol as well as LNG, a deviation from its deep dive into methanol. The carrier has this year taken delivery of seven dual-fuel, methanol-capable 16,592-TEU ships from an 18-vessel order. CMA CGM has so far invested $18 billion in orders for 131 vessels capable of sailing on both fossil fuels and low- or zero-carbon alternatives such as biomethane, biomethanol and synthetic fuels. Most of the vessels will be operational by 2028. Several carriers have made deals with fuel producers to develop production facilities and fuel supply chains and lock in supply for the new ships as they come online. Flood of new ships coming online The new ship orders are throwing a spotlight on the expanding order book and the flood of new ships that are steadily coming online. Orders have been made for a total of 7.6 million TEUs in capacity, or 25% of the total in-service fleet, while 410 ships with a capacity of 2.5 million TEUs have been delivered in the first 10 months of the year, according to Neils Rasmussen, chief shipping analyst at BIMCO. The container fleet now consists of 6,699 ships with a capacity of 30.4 million TEUs. Rasmussen said in a market update this week that another 500,000 TEUs are scheduled to be delivered during the last two months of 2024, driving deliveries for the year close to 3 million TEUs. Over the next four years, an average of 1.7 million TEUs are scheduled to be delivered each year, with 300,000 TEUs already planned for delivery in 2029. “Despite the rapid expansion of the fleet, owners continue to add orders for new ships,” Rasmussen said, but he added that actual fleet growth would depend on future recycling. “After a few years of very low recycling, 3.4 million TEUs will be more than 20 years old next year and prime candidates for recycling in the coming years,” he said. “If they are all recycled during the next five years, fleet growth from the current order book can be limited to 14% [the lower figure in a 14% to 19% range].” That point was also made by Maersk CEO Vincent Clerc last week during the carrier’s third-quarter earnings call and by Alphaliner in a recent newsletter. Clerc said scrapping would help to limit the excess capacity , a comment borne out by the analyst who noted that the top 10 operators could use 44% of their combined order book just to replace the oldest ships in service rather than for growth. Mediterranean Shipping Co. has the industry’s largest order book that, at 2 million TEUs, is almost the size of Hapag-Lloyd’s in-service fleet, but Alphaliner said 60% of the capacity on order could be used to replace MSC’s aging vessels. Contact Greg Knowler at greg.knowler@spglobal.com .

Hapag-Lloyd makes $4 billion move down LNG path with 24-ship dual-fuel order

<div class="phx-topic abstract-wrapper">Volume and rates on the Asian export corridors to the US and Europe have been high all year and online shopping promotions in November are further stoking the market.</div>

Volume and rates on the Asian export corridors to the US and Europe have been high all year and online shopping promotions in November are further stoking the market.

<div class="phx-topic">Average air cargo rates from China to North America and Europe have hit their highest levels this year as peak season demand and cargo flows in preparation for November’s e-commerce online promotions begin to gear up. The rate from Shanghai to North America this week reached $6.79 per kilogram, up 7% from last week and 30% higher year over year, according to the Baltic Air Index (BAI). Shanghai-North Europe rates hit $4.85/kg, up 9% on the week and a year-over-year increase of 18%. “Alongside e-commerce growth, the launch of new electronic goods and products has driven prices upward,” Kathy Liu, vice president of global sales and marketing at Taiwan-based forwarder Dimerco Express Group, said in a market update this week. ”The traditional peak season began in mid-October, immediately following China’s Golden Week holiday,” she added. “November is anticipated to be the peak month of 2024, particularly for shipments destined for the US and Europe.” Liu noted that air freight capacity within intra-Asia routes was extremely limited as airlines allocated a greater portion of first-leg allotments to long-haul shipments that carried higher revenue potential. Air cargo on the main Asian routes to North America and Europe has effectively been in peak season mode all year with the volume dominated by China’s e-commerce exports. Global air cargo recorded double-digit year-over-year demand growth in all 10 months through October and is on track to finish the year up approximately 14% year over year, according to rate benchmarking platform Xeneta. “This puts air cargo demand safely on course to report double-digit growth in 2024, and not even zero growth in November or December is going to disrupt this,” Niall van de Wouw, Xeneta’s chief air cargo officer, wrote in a market update this week. <h3>Regulatory clampdown on ‘de minimis’ goods </h3>While the year will end on a high for the air freight industry, there is growing pressure on regulators in the US to clamp down on Chinese imports and reduce the generous $800 “de minimis” value threshold under which goods do not have to pay a duty. The e-commerce platforms in the past 18 months have factored this into their business models that almost exclusively use air cargo for shipments to the US, but the regulatory pressure is likely to be turned up under the new Trump administration. “The Biden administration proposed excluding large swaths of Chinese imports from de minimis eligibility,” Judah Levine, head of research at freight marketplace Freightos, said in a report this week. “If Trump moves forward with something similar, it could be a major challenge to the surge of Chinese goods arriving by air via platforms like Shein and Temu.” If there is a clampdown, it will not only be the Chinese e-commerce platforms that come into the regulatory crosshairs. A report from stock market data provider AltIndex released Wednesday shows that most products sold by Amazon are made in China. ”Statistics show that 71% of the products that wholesalers and retailers sell on Amazon are produced in China, or 2.4 times more than in the United States, illustrating China’s importance for Amazon’s business,” AltIndex said. Amazon has a 40% share of total e-commerce sales in its home US market, with products made in the US accounting for 30% of the company’s total goods sold and India third at 14%, according to industry data. On the trans-Atlantic, Europe to North America saw a month-over-month volume increase of 11% in October, according to Xeneta. Backhaul volume rose 10% sequentially in October as shippers and forwarders took precautionary measures to lessen the impact of the <a href="https://www.joc.com/article/ripple-effects-playing-out-globally-from-ila-strike-analyst-5751171">three-day strike by dockworkers</a> at US East Coast and Gulf Coast ports. Air cargo rates from North Europe to North America have remained elevated all year and are currently at $1.84/kg, unchanged from the same week last year, according to the BAI. Xeneta expects the rise in trans-Atlantic air freight rates to continue with airlines’ winter schedules, leading to reduced cargo capacity from the end of October. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Average air cargo rates from China to North America and Europe have hit their highest levels this year as peak season demand and cargo flows in preparation for November’s e-commerce online promotions begin to gear up. The rate from Shanghai to North America this week reached $6.79 per kilogram, up 7% from last week and 30% higher year over year, according to the Baltic Air Index (BAI). Shanghai-North Europe rates hit $4.85/kg, up 9% on the week and a year-over-year increase of 18%. “Alongside e-commerce growth, the launch of new electronic goods and products has driven prices upward,” Kathy Liu, vice president of global sales and marketing at Taiwan-based forwarder Dimerco Express Group, said in a market update this week. ”The traditional peak season began in mid-October, immediately following China’s Golden Week holiday,” she added. “November is anticipated to be the peak month of 2024, particularly for shipments destined for the US and Europe.” Liu noted that air freight capacity within intra-Asia routes was extremely limited as airlines allocated a greater portion of first-leg allotments to long-haul shipments that carried higher revenue potential. Air cargo on the main Asian routes to North America and Europe has effectively been in peak season mode all year with the volume dominated by China’s e-commerce exports. Global air cargo recorded double-digit year-over-year demand growth in all 10 months through October and is on track to finish the year up approximately 14% year over year, according to rate benchmarking platform Xeneta. “This puts air cargo demand safely on course to report double-digit growth in 2024, and not even zero growth in November or December is going to disrupt this,” Niall van de Wouw, Xeneta’s chief air cargo officer, wrote in a market update this week. Regulatory clampdown on ‘de minimis’ goods While the year will end on a high for the air freight industry, there is growing pressure on regulators in the US to clamp down on Chinese imports and reduce the generous $800 “de minimis” value threshold under which goods do not have to pay a duty. The e-commerce platforms in the past 18 months have factored this into their business models that almost exclusively use air cargo for shipments to the US, but the regulatory pressure is likely to be turned up under the new Trump administration. “The Biden administration proposed excluding large swaths of Chinese imports from de minimis eligibility,” Judah Levine, head of research at freight marketplace Freightos, said in a report this week. “If Trump moves forward with something similar, it could be a major challenge to the surge of Chinese goods arriving by air via platforms like Shein and Temu.” If there is a clampdown, it will not only be the Chinese e-commerce platforms that come into the regulatory crosshairs. A report from stock market data provider AltIndex released Wednesday shows that most products sold by Amazon are made in China. ”Statistics show that 71% of the products that wholesalers and retailers sell on Amazon are produced in China, or 2.4 times more than in the United States, illustrating China’s importance for Amazon’s business,” AltIndex said. Amazon has a 40% share of total e-commerce sales in its home US market, with products made in the US accounting for 30% of the company’s total goods sold and India third at 14%, according to industry data. On the trans-Atlantic, Europe to North America saw a month-over-month volume increase of 11% in October, according to Xeneta. Backhaul volume rose 10% sequentially in October as shippers and forwarders took precautionary measures to lessen the impact of the three-day strike by dockworkers at US East Coast and Gulf Coast ports. Air cargo rates from North Europe to North America have remained elevated all year and are currently at $1.84/kg, unchanged from the same week last year, according to the BAI. Xeneta expects the rise in trans-Atlantic air freight rates to continue with airlines’ winter schedules, leading to reduced cargo capacity from the end of October. Contact Greg Knowler at greg.knowler@spglobal.com .

Air cargo peak season elevates as Chinese export rates hit 2024 high

<div class="phx-topic abstract-wrapper">Advisors to beneficial cargo owners say mitigating future supply chain disruptions requires BCOs to proactively engage with ocean carriers and forwarders, seeking to build partnerships even if past experience suggests they end in disappointment.</div>

Advisors to beneficial cargo owners say mitigating future supply chain disruptions requires BCOs to proactively engage with ocean carriers and forwarders, seeking to build partnerships even if past experience suggests they end in disappointment.

<div class="phx-topic">More than a year after global health agencies declared an end to the COVID-19 pandemic and nearly three years after the peak of the supply chain impact, the scars in the ocean container world have barely begun to heal. And given that market turbulence looks set to continue with a second Trump presidency, that healing may not have an opportunity for months or years to come. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5787232_0.1.jpg"></img></div>Advisors to beneficial cargo owners (BCOs) say mitigating future disruption requires BCOs to proactively engage with ocean carriers and forwarders, seeking to build partnerships even if past experience suggests they end in disappointment. Yet, those advisors say, many BCOs remain stuck in a mindset of wanting to “get back what was taken from them” during the pandemic when rates soared to historic highs. Yet despite whatever evidence may exist of external causes of the COVID-19 supply chain crisis, some shippers, echoing politicians up to and including President Joe Biden, continue to hold a grudge against carriers to the point that they are unwilling to engage in the relationship-building that advisors say is critical to managing ocean supply chains through an era of disruption. And that environment only looks set to continue assuming president-elect Trump makes good on threats to wage trade wars and given the possibility <a href="https://www.joc.com/article/ila-usmx-say-to-resume-talks-on-new-master-contract-in-november-5778794">of further East Coast labor disruption in January</a>. “The strained relationship between BCOs and ocean carriers post-pandemic has been significant, primarily due to repeated disruptions and lack of transparency throughout 2020–2022,” former Walmart logistics executive and current consultant Kevin Parkerson told the Journal of Commerce. “During this period, many BCOs felt they were deprioritized as ocean carriers reallocated capacity to secure spot rates that soared due to demand and port congestion,” Parkerson said. “This experience created a level of distrust that BCOs have struggled to overcome, as they now view carrier partnerships with caution and sometimes skepticism.” <h3>‘Revenge’ factor </h3>In the aftermath of historically high rates combined with historically poor service, and with the experience being repeated on a smaller scale in 2024, being willing to engage with carriers is proving a tall order for many BCOs. Even when logistics teams themselves understand the value of engaging, they lack support from internal colleagues with long memories and festering resentments. Such is the magnitude of grievance that BCOs’ aim is not just to drive rates back down to pre-pandemic levels, but to “take revenge” in seeking to recover money perceived to be unjustly taken from them during the pandemic. “For the last couple of years, everyone kind of had 2024 and now 2025 on the calendar as a recovery year. In other words, the time period when you can recover or get back what you feel like was taken from you, in the days of the tens of thousands of dollar rate levels,” Parkerson said. “And unfortunately, a lot of that is still the sentiment.” The process would be made easier if carriers themselves wanted to engage with customers, but even that seems to have broken down. Some carriers do wish to engage with certain customers, a trend that may pick up steam next year if the market softens under the strain of overcapacity. For their part, carriers — or at least some of them — seemed to have moved on from a prior mindset of seeking to work closely with customers. With a focus on blank sailings and a possible resurgence of slow-steaming next year to manage capacity — actions that benefit carriers at the expense of their customers — evidence of a partnership, such as quarterly business review meetings, has gone by the wayside. Carriers, meanwhile, have their own long memories of being beaten down on rates by shippers.<h3>The need to build relationships </h3>But BCO advisors say that however difficult or counterintuitive it may be for shippers to engage with carriers, protecting their interests and extracting maximum value out of the containerized supply chain demands it. “I strongly advocate for building solid relationships with carriers and logistics service providers,” Parkerson said. “Cultivating strong, collaborative relationships with your carriers and LSPs can help mitigate some of the impacts of disruptions. While it may not eliminate challenges entirely, it can certainly soften the effects.” Others agree. In a <a href="https://www.joc.com/article/bco-partnerships-with-carriers-often-fail-but-are-still-critical-5780305">recent Journal of Commerce commentary</a>, former Newell Brands logistics leader Kristian Ording described an effort to improve volume forecasts provided by carriers, only to see the relationship get undermined under the strain of tight capacity. “As capacity tightened, unfortunately many of the carriers resorted to not confirming forecasts until the last minute, and in some cases either not confirming at all or accepting less bookings than forecast [and at times even (less) than allocated],” he wrote. Nevertheless, Ording said, he would still not give up on trying to strengthen partnerships with carriers when other opportunities arose. “Despite sometimes disappointing outcomes even following the best of intentions, it is still worth the effort for beneficial cargo owners to take the steps toward building partnerships with carriers and forwarders that can withstand the ever more frequent swings in the market,” he wrote. “I hope shippers keep this in mind as we all gear up for the 2025 contracting cycle.” Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

More than a year after global health agencies declared an end to the COVID-19 pandemic and nearly three years after the peak of the supply chain impact, the scars in the ocean container world have barely begun to heal. And given that market turbulence looks set to continue with a second Trump presidency, that healing may not have an opportunity for months or years to come. Advisors to beneficial cargo owners (BCOs) say mitigating future disruption requires BCOs to proactively engage with ocean carriers and forwarders, seeking to build partnerships even if past experience suggests they end in disappointment. Yet, those advisors say, many BCOs remain stuck in a mindset of wanting to “get back what was taken from them” during the pandemic when rates soared to historic highs. Yet despite whatever evidence may exist of external causes of the COVID-19 supply chain crisis, some shippers, echoing politicians up to and including President Joe Biden, continue to hold a grudge against carriers to the point that they are unwilling to engage in the relationship-building that advisors say is critical to managing ocean supply chains through an era of disruption. And that environment only looks set to continue assuming president-elect Trump makes good on threats to wage trade wars and given the possibility of further East Coast labor disruption in January . “The strained relationship between BCOs and ocean carriers post-pandemic has been significant, primarily due to repeated disruptions and lack of transparency throughout 2020–2022,” former Walmart logistics executive and current consultant Kevin Parkerson told the Journal of Commerce. “During this period, many BCOs felt they were deprioritized as ocean carriers reallocated capacity to secure spot rates that soared due to demand and port congestion,” Parkerson said. “This experience created a level of distrust that BCOs have struggled to overcome, as they now view carrier partnerships with caution and sometimes skepticism.” ‘Revenge’ factor In the aftermath of historically high rates combined with historically poor service, and with the experience being repeated on a smaller scale in 2024, being willing to engage with carriers is proving a tall order for many BCOs. Even when logistics teams themselves understand the value of engaging, they lack support from internal colleagues with long memories and festering resentments. Such is the magnitude of grievance that BCOs’ aim is not just to drive rates back down to pre-pandemic levels, but to “take revenge” in seeking to recover money perceived to be unjustly taken from them during the pandemic. “For the last couple of years, everyone kind of had 2024 and now 2025 on the calendar as a recovery year. In other words, the time period when you can recover or get back what you feel like was taken from you, in the days of the tens of thousands of dollar rate levels,” Parkerson said. “And unfortunately, a lot of that is still the sentiment.” The process would be made easier if carriers themselves wanted to engage with customers, but even that seems to have broken down. Some carriers do wish to engage with certain customers, a trend that may pick up steam next year if the market softens under the strain of overcapacity. For their part, carriers — or at least some of them — seemed to have moved on from a prior mindset of seeking to work closely with customers. With a focus on blank sailings and a possible resurgence of slow-steaming next year to manage capacity — actions that benefit carriers at the expense of their customers — evidence of a partnership, such as quarterly business review meetings, has gone by the wayside. Carriers, meanwhile, have their own long memories of being beaten down on rates by shippers. The need to build relationships But BCO advisors say that however difficult or counterintuitive it may be for shippers to engage with carriers, protecting their interests and extracting maximum value out of the containerized supply chain demands it. “I strongly advocate for building solid relationships with carriers and logistics service providers,” Parkerson said. “Cultivating strong, collaborative relationships with your carriers and LSPs can help mitigate some of the impacts of disruptions. While it may not eliminate challenges entirely, it can certainly soften the effects.” Others agree. In a recent Journal of Commerce commentary , former Newell Brands logistics leader Kristian Ording described an effort to improve volume forecasts provided by carriers, only to see the relationship get undermined under the strain of tight capacity. “As capacity tightened, unfortunately many of the carriers resorted to not confirming forecasts until the last minute, and in some cases either not confirming at all or accepting less bookings than forecast [and at times even (less) than allocated],” he wrote. Nevertheless, Ording said, he would still not give up on trying to strengthen partnerships with carriers when other opportunities arose. “Despite sometimes disappointing outcomes even following the best of intentions, it is still worth the effort for beneficial cargo owners to take the steps toward building partnerships with carriers and forwarders that can withstand the ever more frequent swings in the market,” he wrote. “I hope shippers keep this in mind as we all gear up for the 2025 contracting cycle.” Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

BCOs should forsake ‘revenge’ to build ‘collaborative’ relationships with carriers

<div class="phx-topic abstract-wrapper">The work stoppage along Canada’s West Coast has also shut down rail operations, with CN suspending westbound rail service to British Columbia ports and CPKC halting acceptance of export and empty containers for the province. </div>

The work stoppage along Canada’s West Coast has also shut down rail operations, with CN suspending westbound rail service to British Columbia ports and CPKC halting acceptance of export and empty containers for the province.

<div class="phx-topic">A growing number of container ships on Tuesday were waiting out the labor lockout at British Columbia ports in hopes of a speedy resolution. Meanwhile, on the other side of the country, the strike at marine terminals in Montreal is halting all rail service at that port. Maersk said in an advisory that two ships in its TP1 service, the 6,350-TEU Marcos V and the 8,714-TEU San Felipe, are currently at anchorage at the ports of Vancouver and Prince Rupert, respectively. A third ship, the 5,085-TEU Seattle Express, is still expected to call Vancouver’s Fraser Surrey terminal this week, with any change in its rotation contingent upon the duration of the port’s closure. Container terminals at Vancouver and Prince Rupert were effectively shuttered after <a href="https://www.joc.com/article/bc-container-ports-ready-to-lock-out-longshore-foremen-after-strike-vote-5784004">the British Columbia Maritime Employers Association locked out members of the International Longshore and Warehouse Union Local 514</a> following a strike vote by its members. The strike by longshore foremen began Monday morning. The two sides remain at odds over terms of a new contract as well as <a href="https://www.joc.com/article/ilwu-canada-illegal-strike-ruling-averts-vancouver-shutdown-5192250">the implementation of new technology at DP World’s Vancouver terminal</a>. The prior contract expired in March 2023. Management is still onsite at Vancouver terminals monitoring refrigerated containers, according to a person familiar with the issue, but truck gates and berth operations are halted. Vancouver is Canada’s largest container terminal. The 12,726-TEU YM Target remains at berth at Vancouver’s Deltaport, with initial plans to wait out the work stoppage, the source added. Three other container ships are at anchorage outside of Vancouver, while the 4,250-TEU Cosco Auckland remains at berth at Prince Rupert. The backlog of ships, though, may grow. The Vancouver Fraser Port Authority said Tuesday that seven container ships have requested an anchorage at the port. While trying to maintain vessel schedules, Maersk is offering shippers relief from any charges associated with the work stoppage. It has suspended demurrage and export container detention across British Columbia ports, but Maersk said it is “still maintaining certain conditions for import detention.” The carrier said it will also open off-dock empty return locations for containers. The work stoppage along Canada’s West Coast has also shut down rail operations. Canadian National Railway (CN) suspended westbound rail service to British Columbia ports, with Canadian Pacific-Kansas City (CPKC) also stopping acceptance of export and empty containers for British Columbia. <h3>CN suspends Montreal service </h3>The shutdown of Canada’s West Coast ports comes as longshore workers affiliated with <a href="https://www.joc.com/article/montreal-warns-of-vessel-diversions-as-strike-against-msc-terminals-begins-5783311">the Canadian Union of Public Employees Local 375 stage an indefinite strike against two marine terminals operated by Termont in Montreal</a>. The Termont strike is also forcing CN to suspend all rail service in and out of Montreal, including at the Racine and Cast terminals operated by Montreal Gateway Terminals, which are not affected by the strike, Hapag-Lloyd said in an advisory Tuesday. The suspension also includes interchange services with CSX Transportation and Norfolk Southern in the Ohio Valley. “This action is due to operational constraints and uncertainty arising from the ongoing renewal of the Montreal longshoremen collective agreement,” Hapag-Lloyd said. “As a result, CN will suspend and remove all capacity at their inland terminals for exports destined for Cast and Racine until further notice.” Separately, Montreal’s Maritime Employers Association (MEA) started suspending salary guarantees for striking longshore workers Tuesday, saying it was necessary to “reduce the cumulative financial impact of repeated strikes and lower volumes at the Port of Montreal.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

A growing number of container ships on Tuesday were waiting out the labor lockout at British Columbia ports in hopes of a speedy resolution. Meanwhile, on the other side of the country, the strike at marine terminals in Montreal is halting all rail service at that port. Maersk said in an advisory that two ships in its TP1 service, the 6,350-TEU Marcos V and the 8,714-TEU San Felipe, are currently at anchorage at the ports of Vancouver and Prince Rupert, respectively. A third ship, the 5,085-TEU Seattle Express, is still expected to call Vancouver’s Fraser Surrey terminal this week, with any change in its rotation contingent upon the duration of the port’s closure. Container terminals at Vancouver and Prince Rupert were effectively shuttered after the British Columbia Maritime Employers Association locked out members of the International Longshore and Warehouse Union Local 514 following a strike vote by its members. The strike by longshore foremen began Monday morning. The two sides remain at odds over terms of a new contract as well as the implementation of new technology at DP World’s Vancouver terminal . The prior contract expired in March 2023. Management is still onsite at Vancouver terminals monitoring refrigerated containers, according to a person familiar with the issue, but truck gates and berth operations are halted. Vancouver is Canada’s largest container terminal. The 12,726-TEU YM Target remains at berth at Vancouver’s Deltaport, with initial plans to wait out the work stoppage, the source added. Three other container ships are at anchorage outside of Vancouver, while the 4,250-TEU Cosco Auckland remains at berth at Prince Rupert. The backlog of ships, though, may grow. The Vancouver Fraser Port Authority said Tuesday that seven container ships have requested an anchorage at the port. While trying to maintain vessel schedules, Maersk is offering shippers relief from any charges associated with the work stoppage. It has suspended demurrage and export container detention across British Columbia ports, but Maersk said it is “still maintaining certain conditions for import detention.” The carrier said it will also open off-dock empty return locations for containers. The work stoppage along Canada’s West Coast has also shut down rail operations. Canadian National Railway (CN) suspended westbound rail service to British Columbia ports, with Canadian Pacific-Kansas City (CPKC) also stopping acceptance of export and empty containers for British Columbia. CN suspends Montreal service The shutdown of Canada’s West Coast ports comes as longshore workers affiliated with the Canadian Union of Public Employees Local 375 stage an indefinite strike against two marine terminals operated by Termont in Montreal . The Termont strike is also forcing CN to suspend all rail service in and out of Montreal, including at the Racine and Cast terminals operated by Montreal Gateway Terminals, which are not affected by the strike, Hapag-Lloyd said in an advisory Tuesday. The suspension also includes interchange services with CSX Transportation and Norfolk Southern in the Ohio Valley. “This action is due to operational constraints and uncertainty arising from the ongoing renewal of the Montreal longshoremen collective agreement,” Hapag-Lloyd said. “As a result, CN will suspend and remove all capacity at their inland terminals for exports destined for Cast and Racine until further notice.” Separately, Montreal’s Maritime Employers Association (MEA) started suspending salary guarantees for striking longshore workers Tuesday, saying it was necessary to “reduce the cumulative financial impact of repeated strikes and lower volumes at the Port of Montreal.” Contact Michael Angell at michael.angell@spglobal.com .

Ships waiting out BC port closures in hopes of quick deal with longshore union

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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

SSA Marine Mexico has made significant strides in modernizing its infrastructure at the Port of Manzanillo, investing $15 million to enhance operational efficiency and sustainability at its facilities. This move is part of the company's broader strategy to remain at the forefront of the shipping and logistics industry. •	Strengthening Sustainability with Advanced Technology <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488295264_Cranes%20arrival%20to%20TEC%20I.png" alt="Cranes arrival to TEC I" class="joc_admin__inline-image-inherit"></figure> In July, SSA Marine Mexico added seven state-of-the-art E-RTG (Electric Rubber-Tired Gantry) cranes to its fleet, valued at $14 million. These advanced cranes were distributed across its two terminals: four cranes were assigned to the Multipurpose Terminal, and three to the Specialized Container Terminal I. What sets these cranes apart is their dual-operation capability, allowing them to function either on electric power or diesel fuel. This innovation plays a critical role in reducing the environmental impact of operations, contributing to a 7% increase in energy efficiency. This efficiency improvement is equivalent to eliminating nearly 4,000 tons of CO2 emissions annually, underscoring SSA Marine Mexico's commitment to sustainability. Through this acquisition, SSA Marine Mexico not only enhances its cargo-handling capabilities but also reinforces its leadership in integrating cutting-edge, eco-friendly technology in the maritime industry. The company continues to push the boundaries of efficiency and sustainability, ensuring long-term value for both its customers and the environment. •	Upgraded Facilities to Meet Growing Demand <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488350634_Multipurpose%20terminal.png" alt="Multipurpose Terminal" class="joc_admin__inline-image-inherit"></figure> In addition to the new cranes, SSA Marine Mexico has completed crucial modernization and repair work across its Multipurpose Terminal and Specialized Facility at the Port of Manzanillo. This $1 million investment targeted critical infrastructure enhancements, focusing on both structural integrity and operational functionality. Key improvements included leveling approximately 12,000 square meters in the dock area, along with the removal of outdated concrete curbs and asphalt layers. The upgraded space now features high-resistance pavers designed to optimize water drainage and prevent pooling, ensuring safer and more efficient operations. Moreover, the Specialized Facility saw significant upgrades, including the leveling of key warehouse areas to facilitate smoother cargo handling processes. These infrastructure improvements directly enhance the handling of TEUS (Twenty-foot Equivalent Unit containers), further demonstrating SSA Marine Mexico's unwavering commitment to continuous modernization, operational safety, and efficiency. With these initiatives, SSA Marine Mexico is well-positioned to meet the growing demands of the global shipping industry while setting new standards in sustainable port operations. LINK:<a href="https://www.ssamarine.mx/ssa-ing/index" rel="noreferrer" class="joc_admin__link"> https://www.ssamarine.mx/ssa-ing/index</a>

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SSA Marine Mexico Modernizes Facilities with $15 Million Investment 

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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