<div class="phx-topic abstract-wrapper">Mediterranean Shipping Co. is already the largest carrier of U.S. containerized exports and the largest overall carrier in the U.S. market. Now it’s about to add the title of largest carrier in the import market, solidifying its dominance of the U.S. market.</div>

Mediterranean Shipping Co. is already the largest carrier of U.S. containerized exports and the largest overall carrier in the U.S. market. Now it’s about to add the title of largest carrier in the import market, solidifying its dominance of the U.S. market.

<div>Mediterranean Shipping Co. is already the largest carrier of U.S. containerized exports and the largest overall carrier in the U.S. market. Now it’s about to add the title of largest carrier in the import market, solidifying its dominance of the U.S. market.MSC would become the largest carrier of containerized imports into the U.S. in 2014 if, as is likely, its lead on Maersk Line through mid-December holds until the end of the year. This would push Maersk out of the No. 1 spot first time in over a decade, according to PIERS, the data division of the JOC Group.MSC has...

Mediterranean Shipping Co. is already the largest carrier of U.S. containerized exports and the largest overall carrier in the U.S. market. Now it’s about to add the title of largest carrier in the import market, solidifying its dominance of the U.S. market. MSC would become the largest carrier of containerized imports into the U.S. in 2014 if, as is likely, its lead on Maersk Line through mid-December holds until the end of the year. This would push Maersk out of the No. 1 spot first time in over a decade, according to PIERS, the data division of the JOC Group. MSC has been the largest carrier of U.S. exports market since 2010, when it overtook Maersk for the top spot, and it leaped Maersk to become the largest overall carrier in the U.S. market in 2011. MSC's split from Maersk became more pronounced in June. Full size chart. Maersk is the No. 1 carrier globally in terms of deployed capacity, according to Alphaliner , but the analyst predicts MSC will overtake its 2M Alliance partner in 2016 based on the two carriers’ current orderbook. MSC has attained these levels of dominance without ever having acquired another carrier, whereas Maersk did so through acquisitions including Sea-Land Service and Safmarine in 1999 and P&O Nedlloyd in 2005. (See complete container line M&A chronology here .) Through November, MSC carried 1.88 million TEUs into the U.S. while Maersk Line's U.S. import total was 1.83 million through November, a difference of 44,119 TEUs. The two carriers have been separated by as much as 25,000 TEUs during each month of 2014, but with MSC firmly in the lead through Dec. 11, it is unlikely that Maersk will be able to make up the difference before the start of the New Year, according to PIERS’ analysis. Maersk has held the No. 1 spot in the U.S. import market for the last decade, peaking in 2006 with nearly 2.6 million TEUs imported to the U.S. MSC jumped the ranks from fifth in 2004 to third in 2008, then jumped to second in 2010. Maersk as No. 1 and MSC as No. 2 in the import market has been the same for four years, with Maersk beating its competition by an average of 200,000 TEUs each year. In 2013, Maersk transported 127,251 TEUs more to the U.S. than MSC. But MSC began 2014 by carrying 2,755 more U.S. import TEUs than Maersk in January. Maersk carried more imports than MSC in February, March and April. Then MSC outpaced Maersk in May, then again in July and August when it carried roughly 25,000 TEUs more than Maersk each month. MSC acknowledged its emergence this year as the largest U.S. import carrier. “MSC's strategy was simple; we wanted to be the best and so we identified a number of areas across our business that would help us to achieve that one goal," Claudio Bozzo, COO of MSC Geneva, told JOC.com in a statement. "We set up new training programs, improved processes, measured performance, created new systems and we cultivated an even better working environment." Maersk, MSC, Evergreen Line, APL, Hanjin and Hapag-Lloyd have all made appearances as top five U.S. market carriers in the last decade. Full size chart Maersk will reduce capacity by 10 percent early next year in the trans-Pacific, which the Copenhagen-based carrier says has been unprofitable for nine of the last 10 years. The carrier announced it would eliminate its TP5 U.S.-flag service operated by Maersk Line Ltd. on Jan. 15. Maersk acknowledge that was dropping into the No. 2 spot on imports, noting its strategy, which has generated a string of industry-leading profits, is to focus on profitability versus market share. "Maersk Line continues to meet our stated global objective of growing in line with global trade," a Maersk Line spokesperson in North America told JOC.com. "However, we have repeatedly said that this does not mean we will grow the same in all markets. While we remain committed to each of the markets we serve and serving customers willing to pay a fair price for the services provided, there is always a need to allocate resources to where the rate of return is acceptable. Only then will we be able to offer customers a competitive price and new investments in fleet and equipment.” The move to end the TP5 loop in January “by no means suggests our commitment to the trans-Pacific has wavered,” Maersk said in a customer advisory. MSC and Maersk, which plan to launch their 2M vessel-sharing alliance in the spring, will have a “massive” lead over their rivals in the race to deploy ultra-large container vessels, according to Alphaliner. By the end of 2016, they will jointly operate around 47 vessels of 15,500-19,200 TEUs. To overcome the deficit in 2014 US import volumes, Maersk's year-over-year growth in the trade for December would need to exceed that of MSC by 28 percent or more. Given year-to-date trends and expected import volumes in December that is unlikely to happen, according to PIERS analysts. Contact Corianne Egan at cegan@joc.com and follow her on Twitter: @CEgan_JOC .

Container lines

PIERS: MSC poised to overtake Maersk as No. 1 carrier of US imports

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

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

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

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

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Maritime

CMA CGM becomes majority shareholder in Santos Brasil terminal operator

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

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

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

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

Supply chain

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Transport, Trade and Regulation News

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Breakbulk25: Trade policy headwinds haven’t dampened all optimism

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

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

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

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

Breakbulk carriers

Heavy-haul transport

Breakbulk25: Capacity-limited MPV operators reconsider fleet expansion

<div class="phx-topic abstract-wrapper">Speakers at the conference in New Orleans agreed that recent volatility has yet to significantly slow projects or investments in the project cargo sector.</div>

Speakers at the conference in New Orleans agreed that recent volatility has yet to significantly slow projects or investments in the project cargo sector.

<div class="phx-topic">New Orleans — Adapting to the unexpected while resisting knee-jerk reactions will be key to navigating a series of market uncertainties that include constant changes to US tariff policy, geopolitical tensions and labor strikes, a panel of project cargo logistics managers told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “Don’t get comfortable. It’s always changing,” John MacDonough, construction logistics manager for the Woodfibre LNG project in British Columbia, told the conference Thursday. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5990612_0.1.jpg"></img></div>Logistics managers on the panel agreed that volatility hasn’t significantly slowed projects or investments. “There’s only a slight halt in that that we’re being asked to look at the risks a little more closely, because it’s changing almost daily,” said Geanean Ordonez, project logistics manager/procurement for EPC Technip Energies. John Hark, a director at Bertling Logistics and adjunct professor at Texas A&amp;M at Galveston, said the long-term return on investment on large projects will help ensure that investments will continue amid uncertainty. But managing costs and supply chain risks will remain important for logistics managers. “We can’t just say, ‘well, let’s not worry about this $10 million because the project is worth this much money over the next 20 years,’” he said. Itoro Ibanga, project logistics specialist and category manager for industrial supplier Air Liquide, said logistics managers should trust their own expertise and maintain compliance as they respond to tariffs and other unknowns. “Plan for the worst. Anything could happen,” he said. “Be ready and try to see how much you can mitigate that risk.” Ordonez said logistics managers will need to expect surprises as they work with their customers. “Just keep swimming,” she said. “It’s what we do.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

New Orleans — Adapting to the unexpected while resisting knee-jerk reactions will be key to navigating a series of market uncertainties that include constant changes to US tariff policy, geopolitical tensions and labor strikes, a panel of project cargo logistics managers told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference. “Don’t get comfortable. It’s always changing,” John MacDonough, construction logistics manager for the Woodfibre LNG project in British Columbia, told the conference Thursday. Logistics managers on the panel agreed that volatility hasn’t significantly slowed projects or investments. “There’s only a slight halt in that that we’re being asked to look at the risks a little more closely, because it’s changing almost daily,” said Geanean Ordonez, project logistics manager/procurement for EPC Technip Energies. John Hark, a director at Bertling Logistics and adjunct professor at Texas A&M at Galveston, said the long-term return on investment on large projects will help ensure that investments will continue amid uncertainty. But managing costs and supply chain risks will remain important for logistics managers. “We can’t just say, ‘well, let’s not worry about this $10 million because the project is worth this much money over the next 20 years,’” he said. Itoro Ibanga, project logistics specialist and category manager for industrial supplier Air Liquide, said logistics managers should trust their own expertise and maintain compliance as they respond to tariffs and other unknowns. “Plan for the worst. Anything could happen,” he said. “Be ready and try to see how much you can mitigate that risk.” Ordonez said logistics managers will need to expect surprises as they work with their customers. “Just keep swimming,” she said. “It’s what we do.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk25: Logistics managers push adaptability amid market turmoil

<div class="phx-topic abstract-wrapper">The closure of freighter slots at the airport beginning in August is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding.</div>

The closure of freighter slots at the airport beginning in August is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding.

<div class="phx-topic">Freighter slots at the Mumbai International Airport (MIAL) will be suspended beginning mid-August for extensive infrastructure upgrades, posing a threat to India’s booming air freight supply chains amid the recent cargo expansion fueled by trade diversification in Asia. The impending closure is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding (AAHL), a subsidiary of the private behemoth Adani Group. “MIAL needs to carry out multiple air-side works, including building new taxiways, to enhance its capacity and bring efficiency in operations,” the authority told cargo stakeholders. A significant portion of Indian air cargo volumes moves via Mumbai, making it one of the busiest hubs for freighter networks. Turkish Airlines, Emirates, Challenge Group and Qatar Airways lead the pack there, with about 60 to 75 freighter services a month. The infrastructure work at MIAL seemingly ties in with AAHL’s long-term strategy to consolidate all Mumbai air freight operations at a new airport in Navi Mumbai on the outskirts of Mumbai City, which is expected to go live in June. AAHL already has eight Indian airports under its management, accounting for 25% of the country’s passenger footfalls and 35% of air cargo volumes. Industry sources believe airlines and trade stakeholders could encounter serious challenges, including infrastructure and regulatory issues, relocating to the new airport due to the complex nature of the air cargo sector, especially for perishables verticals. “MIAL stands as a vital nerve center for India’s international trade, particularly in the pharmaceutical and perishable goods sectors,” Satish Lakkaraju, board member at the Air Cargo Forum India (ACFI), told the Journal of Commerce. “Any operational bottlenecks could lead to cargo backlogs, longer lead times and a spike in logistics costs.” Global air cargo carriers have markedly cemented connections out of Mumbai to support India’s strong e-commerce demand, another segment that could take a toll if supply chains are disrupted. India’s e-commerce market swelled 24% year over year in 2024 to $148 billion by value, according to industry data. “In the short term, businesses in Mumbai can anticipate multiple hurdles due to the disruption,” said a freight forwarder who didn’t want to be identified. “Looking ahead, they might have to adapt by diversifying supply chains and/or exploring alternative routes.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Freighter slots at the Mumbai International Airport (MIAL) will be suspended beginning mid-August for extensive infrastructure upgrades, posing a threat to India’s booming air freight supply chains amid the recent cargo expansion fueled by trade diversification in Asia. The impending closure is expected to last several months because of an estimated $1 billion investment plan launched by port operator Adani Airport Holding (AAHL), a subsidiary of the private behemoth Adani Group. “MIAL needs to carry out multiple air-side works, including building new taxiways, to enhance its capacity and bring efficiency in operations,” the authority told cargo stakeholders. A significant portion of Indian air cargo volumes moves via Mumbai, making it one of the busiest hubs for freighter networks. Turkish Airlines, Emirates, Challenge Group and Qatar Airways lead the pack there, with about 60 to 75 freighter services a month. The infrastructure work at MIAL seemingly ties in with AAHL’s long-term strategy to consolidate all Mumbai air freight operations at a new airport in Navi Mumbai on the outskirts of Mumbai City, which is expected to go live in June. AAHL already has eight Indian airports under its management, accounting for 25% of the country’s passenger footfalls and 35% of air cargo volumes. Industry sources believe airlines and trade stakeholders could encounter serious challenges, including infrastructure and regulatory issues, relocating to the new airport due to the complex nature of the air cargo sector, especially for perishables verticals. “MIAL stands as a vital nerve center for India’s international trade, particularly in the pharmaceutical and perishable goods sectors,” Satish Lakkaraju, board member at the Air Cargo Forum India (ACFI), told the Journal of Commerce. “Any operational bottlenecks could lead to cargo backlogs, longer lead times and a spike in logistics costs.” Global air cargo carriers have markedly cemented connections out of Mumbai to support India’s strong e-commerce demand, another segment that could take a toll if supply chains are disrupted. India’s e-commerce market swelled 24% year over year in 2024 to $148 billion by value, according to industry data. “In the short term, businesses in Mumbai can anticipate multiple hurdles due to the disruption,” said a freight forwarder who didn’t want to be identified. “Looking ahead, they might have to adapt by diversifying supply chains and/or exploring alternative routes.” Contact Bency Mathew at bencyvmathew@gmail.com .

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Indian air cargo braces for disruptions amid looming upgrade project at Mumbai

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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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