<div class="phx-topic abstract-wrapper">Container traffic soared 18.5 percent to nearly 3 million TEUs at Cosco Pacific’s Piraeus container terminal last year, again outpacing growth at Mediterranean rivals.</div>

Container traffic soared 18.5 percent to nearly 3 million TEUs at Cosco Pacific’s Piraeus container terminal last year, again outpacing growth at Mediterranean rivals.

<div><div><img></div>Container traffic soared 18.5 percent to nearly 3 million TEUs at Cosco Pacific’s Piraeus container terminal last year, again outpacing growth at Mediterranean rivals.However, the Chinese operator’s expansion plans risk being derailed by Syriza, the radical leftist political party expected to win Greece’s Parliamentary election on Jan. 25.Syriza said it would halt the sale of the state’s majority shareholdings in major ports, including Piraeus, in which Cosco Pacific has declared an interest, if it wins power.The planned port sales are part of a broader privatization program agreed by Athens to secure a 240 billion euro ($278 billion) bailout by the...

Container traffic soared 18.5 percent to nearly 3 million TEUs at Cosco Pacific’s Piraeus container terminal last year, again outpacing growth at Mediterranean rivals. However, the Chinese operator’s expansion plans risk being derailed by Syriza, the radical leftist political party expected to win Greece’s Parliamentary election on Jan. 25. Syriza said it would halt the sale of the state’s majority shareholdings in major ports, including Piraeus, in which Cosco Pacific has declared an interest, if it wins power. The planned port sales are part of a broader privatization program agreed by Athens to secure a 240 billion euro ($278 billion) bailout by the European Union, the European Central Bank and the International Monetary Fund. Piraeus, where Cosco Pacific operates two of the port’s three container terminals, has grown faster than most of the firm’s other 22 terminals, the majority of which are in mainland China, in the past two years. With the terminal operated by the Piraeus Port Authority handling between 600,500 and 700,000 20-foot-equivalent-unit containers, the total traffic for Greece’s largest port will add up to almost 3.7 million TEUs in 2014, consolidating the port’s position among Europe’s top 10 container hubs. The 2014 volume represents a near nine-fold increase on the 433,000 TEUs Piraeus handled in 2008, the year before Cosco Pacific signed a 35-year operating concession for the two terminals. The deal also includes a commitment to add a fourth terminal to boost total annual capacity to close to 6 million TEUs at a port that was once a byword for low productivity and labor strife. After a long delay, the port authority signed off on an agreement with Cosco in November under which it will invest 230 million euros to expand container facilities. Like other Mediterranean hubs, Cosco Pacific’s Piraeus terminals are facing a slowdown in traffic, with December volume up just 7.3 percent year-over-year to 254,000 TEUs. This reduced the fourth quarter increase to 6.6 percent, down from 28 percent in the first quarter, 25.6 percent in second quarter and 17.1 percent in the third. Piraeus trailed growth in two of Cosco Pacific three other foreign terminals, with Antwerp Gateway traffic soaring 26 percent in 2014 to 1.37 million TEUs and its Singapore terminal, co-owned with PSA, growing just over 25 percent to 1.05 million TEUs. The Suez Canal Container Terminal, its biggest non-Chinese facility, saw traffic grow 8.8 percent to 3.4 million metric tons. But Piraeus is still outpacing its biggest Mediterranean rivals, including Gioia Tauro, Italy’s biggest transshipment hub, which saw traffic stall at just below 3 million TEUs in 2014. Cosco Pacific has propelled Piraeus into Europe’s top 10 container league at the same time as Greece’s gross domestic product has shrunk 25 percent because the bulk of its traffic is shipped beyond the recession-mired nation. Contact Bruce Barnard at brucebarnard47@hotmail.com .

International ports

TEU volume jumps 18.5 percent at Cosco Piraeus terminal

<div class="phx-topic abstract-wrapper">Qatar, IAG and MASkargo plan to get their trilateral partnership off the ground as soon as regulatory approval is secured.</div>

Qatar, IAG and MASkargo plan to get their trilateral partnership off the ground as soon as regulatory approval is secured.

Feature image

<div class="phx-topic">Three of the world’s largest air freight airlines have formed a global cargo joint venture designed to dramatically expand networks in key markets and improve customer service levels and transit times. While few details were made available, Qatar Airways Cargo (Qatar Cargo), IAG Cargo and Malaysian Airlines’ air freight division MASkargo announced Tuesday their intention to launch a trilateral partnership that is planned to take off “in the near future,” subject to regulatory approval. “This joint business not only unlocks choice and opportunities for our customers but also enhances connectivity for the businesses and industries they serve, further strengthening the role air cargo plays in facilitating global trade,” David Shepherd, CEO of IAG Cargo, said in a joint statement. IAG is the holding company for British Airways, Iberia and Aer Lingus. Should the strategic cooperation manage to clear regulatory hurdles, it will create an enormous global network that will offer shippers more routing options, faster transit times and stronger connectivity across key markets. MASkargo has more than 100 destinations and manages cargo terminals at 11 Malaysian airports, serving over 40 carriers. Qatar Airways Cargo has 60 freighter and 170 passenger destinations, while the airlines under IAG Cargo operate out of four European hubs to 250 destinations across six continents. IAG Cargo and Qatar Cargo will gain access to the extensive Southeast Asian and Australasian network of MASkargo, while the Malaysian Airlines carrier will expand its reach into the Middle East, Gulf Cooperation Council (GCC) countries and European markets. “Today marks a significant milestone in our ongoing efforts to redefine the global air cargo landscape,” Mark Drusch, chief officer for cargo at Qatar Airways, said in the statement. MASkargo CEO Mark Jason Thomas had a similar view. “This strategic collaboration marks a pivotal moment for MASkargo and the air cargo industry,” he noted. Qatar Cargo volume grew 12.9% in 2024 while IAG Cargo volume increased 12.6% year over year. No volume figures are available for MASkargo, but the carrier has available air cargo capacity of more than 1 million tons. In parallel with the joint venture, the three carriers are working together to develop industry-leading harmonized safety and security standards for customers, according to the joint statement. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Three of the world’s largest air freight airlines have formed a global cargo joint venture designed to dramatically expand networks in key markets and improve customer service levels and transit times. While few details were made available, Qatar Airways Cargo (Qatar Cargo), IAG Cargo and Malaysian Airlines’ air freight division MASkargo announced Tuesday their intention to launch a trilateral partnership that is planned to take off “in the near future,” subject to regulatory approval. “This joint business not only unlocks choice and opportunities for our customers but also enhances connectivity for the businesses and industries they serve, further strengthening the role air cargo plays in facilitating global trade,” David Shepherd, CEO of IAG Cargo, said in a joint statement. IAG is the holding company for British Airways, Iberia and Aer Lingus. Should the strategic cooperation manage to clear regulatory hurdles, it will create an enormous global network that will offer shippers more routing options, faster transit times and stronger connectivity across key markets. MASkargo has more than 100 destinations and manages cargo terminals at 11 Malaysian airports, serving over 40 carriers. Qatar Airways Cargo has 60 freighter and 170 passenger destinations, while the airlines under IAG Cargo operate out of four European hubs to 250 destinations across six continents. IAG Cargo and Qatar Cargo will gain access to the extensive Southeast Asian and Australasian network of MASkargo, while the Malaysian Airlines carrier will expand its reach into the Middle East, Gulf Cooperation Council (GCC) countries and European markets. “Today marks a significant milestone in our ongoing efforts to redefine the global air cargo landscape,” Mark Drusch, chief officer for cargo at Qatar Airways, said in the statement. MASkargo CEO Mark Jason Thomas had a similar view. “This strategic collaboration marks a pivotal moment for MASkargo and the air cargo industry,” he noted. Qatar Cargo volume grew 12.9% in 2024 while IAG Cargo volume increased 12.6% year over year. No volume figures are available for MASkargo, but the carrier has available air cargo capacity of more than 1 million tons. In parallel with the joint venture, the three carriers are working together to develop industry-leading harmonized safety and security standards for customers, according to the joint statement. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Carriers News

Air Cargo

Three air freight majors form global alliance to expand network reach

<div class="phx-topic abstract-wrapper">But executives at both northern range hubs highlighted the extreme volatility of the first three months and the US tariff-driven uncertainty that lies ahead.</div>

But executives at both northern range hubs highlighted the extreme volatility of the first three months and the US tariff-driven uncertainty that lies ahead.

<div class="phx-topic">Antwerp-Bruges overtook Rotterdam in the first quarter to assume the mantle of Europe’s busiest container port, handling 3.43 million TEUs against its Dutch rival’s 3.36 million TEUs. While Rotterdam’s container volume in the first three months rose 2.2% year over year, throughput at the Belgian hub was up 4.5%, increasing Antwerp-Bruges’ market share in the Hamburg-Le Havre range by 0.6 percentage point to 30.5%. “These quarterly figures emphasize how valuable the complementarity between Antwerp and Zeebrugge actually is,” Dirk de Fauw, mayor of Bruges and vice president of the Port of Antwerp-Bruges board of directors, said in a statement issued by the port Tuesday. The Belgian ports of Antwerp and Zeebrugge merged in 2022 to form the Port of Antwerp-Bruges. “The combination of scale and specialization is proving itself time and again, especially in a turbulent international environment,” de Fauw noted. Executives at Antwerp-Bruges and Rotterdam highlighted in separate statements the extreme global disruption in container markets during the first quarter and the US tariff-driven uncertainty that lies ahead. “The first three months of this year were characterized by a high degree of volatility in world trade as a result of threatened import duties in the United States and conflicts in Ukraine and the Middle East,” Boudewijn Siemons, CEO of the Port of Rotterdam Authority, said in a statement. “This volatility has led to uncertainty among companies in the areas of trade and investment,” he added. “We see this reflected in throughput volumes and the willingness to invest.” <h3>Impact of US tariffs </h3>While Antwerp-Bruges said the immediate impact of the on-again, off-again US tariffs remained limited for now, it warned that further developments in trade tariffs would impact the logistics chain in the coming months. But how significant that impact could be was difficult to predict, said Jacques Vandermeiren, the port’s CEO. “We are in particularly uncertain times,” he noted in the first-quarter results statement, adding that stability was critical, both for the port’s customers and for the broader economy. “At the same time, the protectionist measures taken by the US make it clear that Europe needs to make a stronger commitment to robust economic policies in order to strengthen our industry and anchor its strategic position,” Vandermeiren noted. On March 12, the US applied a 25% tariff to iron, steel, aluminum and derived products from around the world. On April 3, that was extended to include cars and car parts, also at 25%, with an additional 20% increase on goods originating from the European Union. Then on April 9, the Trump administration announced a 90-day temporary pause for countries open to negotiations, leaving the 10% across-the-board baseline tariff on Europe in place during the negotiating period. The European Union has also suspended its reciprocal tariffs on US exports such as Harley-Davidson motorcycles, bourbon whiskey and boats. A second phase of tariffs due to take effect April 15 has also been suspended for the 90-day period. Europe’s hub ports are <a href="https://www.joc.com/article/early-signs-of-rising-tariff-driven-demand-emerge-on-the-trans-atlantic-5986678">watching the trans-Atlantic trade for signs of frontloading</a> as shippers take advantage of the 90-day window to advance orders, but so far, they have not seen any significant increase in demand. Rotterdam’s trans-Atlantic volume plunged 23.1% in the first quarter compared with the same period last year. However, the port said this was not tariff-related but rather a result of two shipping services being shifted to other ports because of limited capacity at terminals that experienced significant congestion for much of the quarter. In terms of total tonnage, Rotterdam’s first-quarter throughput declined 1.1% year over year, driven by an 8.1% decrease in the export of full containers, according to the port statement. Export containers are heavier, which means the average weight per container is lower. Of immediate concern to Europe, however, are Chinese imports. The European Commission is <a href="https://www.joc.com/article/europe-on-alert-to-track-any-wave-of-diverted-chinese-imports-5986038">closely monitoring containerized imports from China</a> amid growing fears that the high US tariffs will force a redirection of trans-Pacific trade flows and flood Europe with Chinese goods. <h3>Undermining industrial competitiveness </h3>Antwerp-Bruges highlighted the deeper challenges facing the European economy, with the industrial sector struggling with structural problems that are “seriously undermining its competitiveness.” These included high energy and production costs, global overcapacity and increasing competition from cheap imports from Asia and elsewhere that were putting pressure on the sector. On top of the structural issues, Antwerp-Bruges highlighted complex regulations, slow permitting processes and high labor costs that were interfering with the willingness of businesses to invest. “Port of Antwerp-Bruges and Port of Rotterdam are therefore pleading for a rapid implementation of the Clean Industrial Deal in the form of concrete measures and sufficient budgetary support to restore resilience and future prospects for European industry,” the Antwerp-Bruges statement noted. The Clean Industrial Deal unveiled in February is a measure through which the European Commission intends to strengthen the competitiveness of European industry. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Antwerp-Bruges overtook Rotterdam in the first quarter to assume the mantle of Europe’s busiest container port, handling 3.43 million TEUs against its Dutch rival’s 3.36 million TEUs. While Rotterdam’s container volume in the first three months rose 2.2% year over year, throughput at the Belgian hub was up 4.5%, increasing Antwerp-Bruges’ market share in the Hamburg-Le Havre range by 0.6 percentage point to 30.5%. “These quarterly figures emphasize how valuable the complementarity between Antwerp and Zeebrugge actually is,” Dirk de Fauw, mayor of Bruges and vice president of the Port of Antwerp-Bruges board of directors, said in a statement issued by the port Tuesday. The Belgian ports of Antwerp and Zeebrugge merged in 2022 to form the Port of Antwerp-Bruges. “The combination of scale and specialization is proving itself time and again, especially in a turbulent international environment,” de Fauw noted. Executives at Antwerp-Bruges and Rotterdam highlighted in separate statements the extreme global disruption in container markets during the first quarter and the US tariff-driven uncertainty that lies ahead. “The first three months of this year were characterized by a high degree of volatility in world trade as a result of threatened import duties in the United States and conflicts in Ukraine and the Middle East,” Boudewijn Siemons, CEO of the Port of Rotterdam Authority, said in a statement. “This volatility has led to uncertainty among companies in the areas of trade and investment,” he added. “We see this reflected in throughput volumes and the willingness to invest.” Impact of US tariffs While Antwerp-Bruges said the immediate impact of the on-again, off-again US tariffs remained limited for now, it warned that further developments in trade tariffs would impact the logistics chain in the coming months. But how significant that impact could be was difficult to predict, said Jacques Vandermeiren, the port’s CEO. “We are in particularly uncertain times,” he noted in the first-quarter results statement, adding that stability was critical, both for the port’s customers and for the broader economy. “At the same time, the protectionist measures taken by the US make it clear that Europe needs to make a stronger commitment to robust economic policies in order to strengthen our industry and anchor its strategic position,” Vandermeiren noted. On March 12, the US applied a 25% tariff to iron, steel, aluminum and derived products from around the world. On April 3, that was extended to include cars and car parts, also at 25%, with an additional 20% increase on goods originating from the European Union. Then on April 9, the Trump administration announced a 90-day temporary pause for countries open to negotiations, leaving the 10% across-the-board baseline tariff on Europe in place during the negotiating period. The European Union has also suspended its reciprocal tariffs on US exports such as Harley-Davidson motorcycles, bourbon whiskey and boats. A second phase of tariffs due to take effect April 15 has also been suspended for the 90-day period. Europe’s hub ports are watching the trans-Atlantic trade for signs of frontloading as shippers take advantage of the 90-day window to advance orders, but so far, they have not seen any significant increase in demand. Rotterdam’s trans-Atlantic volume plunged 23.1% in the first quarter compared with the same period last year. However, the port said this was not tariff-related but rather a result of two shipping services being shifted to other ports because of limited capacity at terminals that experienced significant congestion for much of the quarter. In terms of total tonnage, Rotterdam’s first-quarter throughput declined 1.1% year over year, driven by an 8.1% decrease in the export of full containers, according to the port statement. Export containers are heavier, which means the average weight per container is lower. Of immediate concern to Europe, however, are Chinese imports. The European Commission is closely monitoring containerized imports from China amid growing fears that the high US tariffs will force a redirection of trans-Pacific trade flows and flood Europe with Chinese goods. Undermining industrial competitiveness Antwerp-Bruges highlighted the deeper challenges facing the European economy, with the industrial sector struggling with structural problems that are “seriously undermining its competitiveness.” These included high energy and production costs, global overcapacity and increasing competition from cheap imports from Asia and elsewhere that were putting pressure on the sector. On top of the structural issues, Antwerp-Bruges highlighted complex regulations, slow permitting processes and high labor costs that were interfering with the willingness of businesses to invest. “Port of Antwerp-Bruges and Port of Rotterdam are therefore pleading for a rapid implementation of the Clean Industrial Deal in the form of concrete measures and sufficient budgetary support to restore resilience and future prospects for European industry,” the Antwerp-Bruges statement noted. The Clean Industrial Deal unveiled in February is a measure through which the European Commission intends to strengthen the competitiveness of European industry. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Trans-Atlantic

Asia-Europe

Maritime

Antwerp-Bruges passes Rotterdam to become Europe’s busiest box port

<div class="phx-topic abstract-wrapper">Disruption caused by trade wars will reach deep into global supply chains, depressing an already uncertain outlook for the US freight economy. </div>

Disruption caused by trade wars will reach deep into global supply chains, depressing an already uncertain outlook for the US freight economy.

<div class="phx-topic">The tailwinds that brought a strong increase in US imports and certain exports last year have turned to cold, hard headwinds this year as disruptions caused by the Trump administration’s tariffs take root and multiply. The shock waves from those tariffs are rippling from ports in Asia and Europe through freight docks deep in industrial America. The latest shock came from the US Trade Representative (USTR), which said April 18 it will <a href="https://www.joc.com/article/scaled-back-ustr-port-tariff-to-hit-chinese-carriers-hardest-5987549">charge entrance fees for China-based ocean carriers</a> and lines operating Chinese-built ships calling at US ports based on cargo capacity or container volume. Given the chaotic rollout of President Donald Trump’s trade policies, the outlook for the US freight economy in the second half of 2025 isn’t just cloudy — it’s reached a point of uncertainty that is crippling shippers’ ability to plan. US shippers “are waiting for the dust to settle to determine how tariffs might influence and change their short- and long-term business strategies,” Spencer Frazier, executive vice president of sales at J.B. Hunt Transport Services, said during an earnings call April 15. S&amp;P Global, the parent company of the Journal of Commerce, in April pulled down its US GDP growth forecasts for 2025 and 2026 from 1.9% in both years to 1.3% and 1.5%, respectively, thanks in part to expectations that tariffs will result in higher inflation. Although the risk of a recession in the US has diminished, US policy volatility and related economic uncertainties are likely to linger into the year, S&amp;P Global said. On land, the so-called freight recession that began in 2022, sending trucking and intermodal rates tumbling by double-digit percentages, is entering its fourth consecutive year. Shippers will maintain pricing power in the truckload and intermodal rail segments in 2025, but they’re also going to make, ship and sell less. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9fd84e22-d76c-4e34-8c52-c038bd25ad91"></dynamic-object></div>Despite an uptick in truckload spot rates early this year, led by flatbed spot rates, truckload pricing is still bouncing along a bottom it reached in 2023. Less-than-truckload (LTL) pricing has been elevated since the collapse of Yellow in 2023, but volumes remain essentially flat aside from some tariff-driven frontloading. The question isn’t whether trucking volumes will decline in the second quarter or second half of 2025, but by how much. That may trigger a broader loss of truck capacity. <h3>Blanking and canceling </h3>On the seas, the Trump administration’s multi-front trade war has already led to a drop in shipments, compounding the disruption caused by attacks on shipping in the Red Sea, where the US is escalating attacks on Houthis in Yemen. Ocean freight rates have fallen steeply in the first four months of 2025. Average spot pricing from Asia to the US West Coast of $2,050 per FEU in the week of April 18 was down 61% from the beginning of the year and 74.8% from its most recent peak in July 2024, according to Platts, a sister product of the Journal of Commerce within S&amp;P Global. Asia-US East Coast spot rates have sunk 53.7% since Jan. 1 and 69.4% from last summer to $3,100 per FEU. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="cbb65e03-1d9b-43c6-97ee-0afa0e7dfc1d"></dynamic-object></div>A slew of booking cancellations by US importers is leading ocean carriers to <a href="https://www.joc.com/article/trans-pacific-blank-sailings-set-to-rise-after-china-bookings-drop-sharply-5984166">blank more voyages</a> in the eastbound trans-Pacific. Some ships are leaving China half-empty. The scale-back in US-bound imports from China is affecting the entire ocean carrier industry. “People are canceling and putting cargo [from] China on pause,” a source at a trans-Pacific container line who asked not to be identified told the Journal of Commerce in April. The broad pause in bookings and orders extends beyond China to other sourcing origins. Amazon, for example, has canceled orders of goods ranging from beach chairs and scooters to air conditioners from Vietnam and Thailand, as well as China, according to a report from Bloomberg. Retailer Five Below paused orders from China in April as those tariffs escalated, CFO Kristy Chipman told analysts during a March 19 call. “The breadth and magnitude of the tariffs are significant given that approximately 60% of our total cost of goods are imported from China, either directly or through our domestic vendors,” Chipman said. Trans-Pacific air cargo traffic, meanwhile, is expected to increase through May 2 as importers rush to beat the end of the exclusion from tariffs for low-value imports. After that final spurt of frontloading, tariffs and the loss of the de minimis exemption for shipments from China and Hong Kong are expected to <a href="https://www.joc.com/article/prepare-for-period-of-panic-in-trans-pacific-air-cargo-market-tiaca-5978829">drag on demand</a>. Limited blank sailings have been announced on the trans-Atlantic trade in the coming weeks, with just 7,124 TEUs from North Europe to the US East and Gulf coasts <a href="https://www.joc.com/article/early-signs-of-rising-tariff-driven-demand-emerge-on-the-trans-atlantic-5986678">scheduled to be withdrawn</a> in May, according to maritime data provider eeSea. “It seems as if carriers are pushing up capacity to cater for whatever frontloading may be needed by European exporters,” said Peter Sand, chief analyst at rate benchmarking platform Xeneta. <h3>A bubble about to burst </h3>In 2024, containerized US imports jumped 15.3% to 27.7 million TEUs, while exports rose 0.9% to 11.3 million TEUs, according to PIERS, also part of S&amp;P Global. Manufactured goods, machinery and mechanical products and minerals rode atop the wave of imports, spiking 17.6%, 14.8% and 11.4%, respectively. Goods were still pouring into the US in the first three months of 2025, with container imports rising 9.2% year over year, according to PIERS, but retailers say the import wave is collapsing as the race to beat the US tariffs ends. The Global Port Tracker report, produced by the National Retail Federation (NRF) and Hackett Associates, forecasts imports to plunge 20.5% in May, 26.6% in June, 27% in July and 26.7% in August. “At present, we expect to see imports begin to decline by May and that they will drop dramatically during the remainder of the year,” Hackett Associates Founder Ben Hackett said in the April Global Port Tracker report. The NRF and Hackett project inbound container shipments will fall 20% in the second half from the year-ago period, which would result in a full-year decline of 15% or more, approximately equal to last year’s gain. Exporters are feeling the effects of tariffs, too, especially those shipping <a href="https://www.joc.com/article/uncertain-trade-environment-especially-fraught-for-us-ag-shippers-5987561">US agricultural and forestry products</a>. China, the largest US market for those products, levied a 125% tariff on them in retaliation for new US tariffs. Bookings for US exports to China for the week of April 15 <a href="https://www.joc.com/article/us-exporters-see-rise-in-canceled-orders-from-chinese-buyers-amid-trade-war-5986165">were down 5.4%</a> from the prior week at 17,220 TEUs, according to maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. “In [the] short term, I think we’re going to see a lot of agriculture exporting shift [from China] to other countries,” Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said in an interview with the Journal of Commerce. A drop in the value of the US dollar — down about 5% against other major world currencies after April’s tariff announcements — could help exporters sell goods overseas, but retaliatory tariffs and backlash among foreign consumers will likely dampen any currency gains. Such backlash has already occurred in Canada, where retailers have withdrawn American-made items from whiskey to diapers from their shelves. <h3>Manufacturing losing momentum </h3>Fewer US imports mean fewer intermodal containers moving inland to Chicago or Dallas and fewer truckload and LTL shipments. But a continued decline in US factory output will have an even greater impact on demand for trucking and rail services. Almost 60% of US truck tonnage is tied to industrial output, according to US Census Bureau data. North America manufacturing output fell at one of the steepest rates seen in the past two years in March, according to S&amp;P Global, with broad-based production losses in the US, Canada and Mexico. The US Manufacturing Purchasing Managers’ Index (PMI) from S&amp;P Global dropped to 50.2 in March from 52.7 in February and 51.2 in January. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e4bcb827-f97b-43d7-a4df-83a0b6ac9b48"></dynamic-object></div>Optimism surrounding the Trump administration and the need to “front run” tariffs buoyed manufacturers in the first two months of the year, but “cracks are now starting to appear,” S&amp;P Global said in its PMI release in April. The longer trade disputes last, the more US manufacturers will have difficulty finding specific components, including some that are critical to production, said Michael Regan, chief relationship officer at logistics company and shipper consultant TranzAct Technologies, citing Chinese-made magnets used in automotive transmissions as an example. “These are ‘dirty magnets’ produced from rare earth metals, and China is limiting their export,” Regan told the Journal of Commerce in mid-April. “A company I know has enough inventory to last only through July.” <h3>Resilient, but worried </h3>US consumer spending has been relatively steadfast so far this year, supported by continued wage increases and low unemployment. US retail sales grew 1.4% month over month in March, the biggest monthly increase since January 2023. Excluding sales of cars and trucks and automotive parts, retail sales only rose 0.5% from February, according to US Census Bureau data. But those results fly in the face of consumer sentiment. The University of Michigan Index of Consumer Sentiment dropped 11% sequentially in April, its fourth consecutive monthly decline. The Conference Board’s monthly index of consumer expectations dropped 9.6 points in March to 65.2, its lowest level in 12 years and far below the threshold of 80 that usually signals a recession ahead. Unlike in 2024, the consumer “is not feeling great,” NRF Chief Economist Jack Kleinhenz said in a statement in mid-April, but the NRF still expects US retail sales to rise this year with or without tariffs. The retailers’ association forecasts retail sales will grow between 2.7% and 3.7% year over year to between $5.42 trillion and $5.48 trillion. What’s more, there’s no expectation the disputes will end in the near future, and even if they do, damage has already been done that will take time to repair. The Trump administration’s goals, whether achievable or not, are part of a long-term strategy that is likely to survive weekly or even daily policy flips. As long as tariff uncertainty and trade wars linger, however, it will be more difficult to find a catalyst that will increase freight demand in the US. That’s pushing hopes for a freight recovery farther into 2026. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. Journal of Commerce editors Ari Ashe, Greg Knowler, Bill Mongelluzzo and Laura Robb contributed to this report, along with Research Analyst Cathy Morrow Roberson. </div>

The tailwinds that brought a strong increase in US imports and certain exports last year have turned to cold, hard headwinds this year as disruptions caused by the Trump administration’s tariffs take root and multiply. The shock waves from those tariffs are rippling from ports in Asia and Europe through freight docks deep in industrial America. The latest shock came from the US Trade Representative (USTR), which said April 18 it will charge entrance fees for China-based ocean carriers and lines operating Chinese-built ships calling at US ports based on cargo capacity or container volume. Given the chaotic rollout of President Donald Trump’s trade policies, the outlook for the US freight economy in the second half of 2025 isn’t just cloudy — it’s reached a point of uncertainty that is crippling shippers’ ability to plan. US shippers “are waiting for the dust to settle to determine how tariffs might influence and change their short- and long-term business strategies,” Spencer Frazier, executive vice president of sales at J.B. Hunt Transport Services, said during an earnings call April 15. S&P Global, the parent company of the Journal of Commerce, in April pulled down its US GDP growth forecasts for 2025 and 2026 from 1.9% in both years to 1.3% and 1.5%, respectively, thanks in part to expectations that tariffs will result in higher inflation. Although the risk of a recession in the US has diminished, US policy volatility and related economic uncertainties are likely to linger into the year, S&P Global said. On land, the so-called freight recession that began in 2022, sending trucking and intermodal rates tumbling by double-digit percentages, is entering its fourth consecutive year. Shippers will maintain pricing power in the truckload and intermodal rail segments in 2025, but they’re also going to make, ship and sell less. Despite an uptick in truckload spot rates early this year, led by flatbed spot rates, truckload pricing is still bouncing along a bottom it reached in 2023. Less-than-truckload (LTL) pricing has been elevated since the collapse of Yellow in 2023, but volumes remain essentially flat aside from some tariff-driven frontloading. The question isn’t whether trucking volumes will decline in the second quarter or second half of 2025, but by how much. That may trigger a broader loss of truck capacity. Blanking and canceling On the seas, the Trump administration’s multi-front trade war has already led to a drop in shipments, compounding the disruption caused by attacks on shipping in the Red Sea, where the US is escalating attacks on Houthis in Yemen. Ocean freight rates have fallen steeply in the first four months of 2025. Average spot pricing from Asia to the US West Coast of $2,050 per FEU in the week of April 18 was down 61% from the beginning of the year and 74.8% from its most recent peak in July 2024, according to Platts, a sister product of the Journal of Commerce within S&P Global. Asia-US East Coast spot rates have sunk 53.7% since Jan. 1 and 69.4% from last summer to $3,100 per FEU. A slew of booking cancellations by US importers is leading ocean carriers to blank more voyages in the eastbound trans-Pacific. Some ships are leaving China half-empty. The scale-back in US-bound imports from China is affecting the entire ocean carrier industry. “People are canceling and putting cargo [from] China on pause,” a source at a trans-Pacific container line who asked not to be identified told the Journal of Commerce in April. The broad pause in bookings and orders extends beyond China to other sourcing origins. Amazon, for example, has canceled orders of goods ranging from beach chairs and scooters to air conditioners from Vietnam and Thailand, as well as China, according to a report from Bloomberg. Retailer Five Below paused orders from China in April as those tariffs escalated, CFO Kristy Chipman told analysts during a March 19 call. “The breadth and magnitude of the tariffs are significant given that approximately 60% of our total cost of goods are imported from China, either directly or through our domestic vendors,” Chipman said. Trans-Pacific air cargo traffic, meanwhile, is expected to increase through May 2 as importers rush to beat the end of the exclusion from tariffs for low-value imports. After that final spurt of frontloading, tariffs and the loss of the de minimis exemption for shipments from China and Hong Kong are expected to drag on demand . Limited blank sailings have been announced on the trans-Atlantic trade in the coming weeks, with just 7,124 TEUs from North Europe to the US East and Gulf coasts scheduled to be withdrawn in May, according to maritime data provider eeSea. “It seems as if carriers are pushing up capacity to cater for whatever frontloading may be needed by European exporters,” said Peter Sand, chief analyst at rate benchmarking platform Xeneta. A bubble about to burst In 2024, containerized US imports jumped 15.3% to 27.7 million TEUs, while exports rose 0.9% to 11.3 million TEUs, according to PIERS, also part of S&P Global. Manufactured goods, machinery and mechanical products and minerals rode atop the wave of imports, spiking 17.6%, 14.8% and 11.4%, respectively. Goods were still pouring into the US in the first three months of 2025, with container imports rising 9.2% year over year, according to PIERS, but retailers say the import wave is collapsing as the race to beat the US tariffs ends. The Global Port Tracker report, produced by the National Retail Federation (NRF) and Hackett Associates, forecasts imports to plunge 20.5% in May, 26.6% in June, 27% in July and 26.7% in August. “At present, we expect to see imports begin to decline by May and that they will drop dramatically during the remainder of the year,” Hackett Associates Founder Ben Hackett said in the April Global Port Tracker report. The NRF and Hackett project inbound container shipments will fall 20% in the second half from the year-ago period, which would result in a full-year decline of 15% or more, approximately equal to last year’s gain. Exporters are feeling the effects of tariffs, too, especially those shipping US agricultural and forestry products . China, the largest US market for those products, levied a 125% tariff on them in retaliation for new US tariffs. Bookings for US exports to China for the week of April 15 were down 5.4% from the prior week at 17,220 TEUs, according to maritime visibility provider Vizion and data and analytics company Dun & Bradstreet. “In [the] short term, I think we’re going to see a lot of agriculture exporting shift [from China] to other countries,” Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), said in an interview with the Journal of Commerce. A drop in the value of the US dollar — down about 5% against other major world currencies after April’s tariff announcements — could help exporters sell goods overseas, but retaliatory tariffs and backlash among foreign consumers will likely dampen any currency gains. Such backlash has already occurred in Canada, where retailers have withdrawn American-made items from whiskey to diapers from their shelves. Manufacturing losing momentum Fewer US imports mean fewer intermodal containers moving inland to Chicago or Dallas and fewer truckload and LTL shipments. But a continued decline in US factory output will have an even greater impact on demand for trucking and rail services. Almost 60% of US truck tonnage is tied to industrial output, according to US Census Bureau data. North America manufacturing output fell at one of the steepest rates seen in the past two years in March, according to S&P Global, with broad-based production losses in the US, Canada and Mexico. The US Manufacturing Purchasing Managers’ Index (PMI) from S&P Global dropped to 50.2 in March from 52.7 in February and 51.2 in January. Optimism surrounding the Trump administration and the need to “front run” tariffs buoyed manufacturers in the first two months of the year, but “cracks are now starting to appear,” S&P Global said in its PMI release in April. The longer trade disputes last, the more US manufacturers will have difficulty finding specific components, including some that are critical to production, said Michael Regan, chief relationship officer at logistics company and shipper consultant TranzAct Technologies, citing Chinese-made magnets used in automotive transmissions as an example. “These are ‘dirty magnets’ produced from rare earth metals, and China is limiting their export,” Regan told the Journal of Commerce in mid-April. “A company I know has enough inventory to last only through July.” Resilient, but worried US consumer spending has been relatively steadfast so far this year, supported by continued wage increases and low unemployment. US retail sales grew 1.4% month over month in March, the biggest monthly increase since January 2023. Excluding sales of cars and trucks and automotive parts, retail sales only rose 0.5% from February, according to US Census Bureau data. But those results fly in the face of consumer sentiment. The University of Michigan Index of Consumer Sentiment dropped 11% sequentially in April, its fourth consecutive monthly decline. The Conference Board’s monthly index of consumer expectations dropped 9.6 points in March to 65.2, its lowest level in 12 years and far below the threshold of 80 that usually signals a recession ahead. Unlike in 2024, the consumer “is not feeling great,” NRF Chief Economist Jack Kleinhenz said in a statement in mid-April, but the NRF still expects US retail sales to rise this year with or without tariffs. The retailers’ association forecasts retail sales will grow between 2.7% and 3.7% year over year to between $5.42 trillion and $5.48 trillion. What’s more, there’s no expectation the disputes will end in the near future, and even if they do, damage has already been done that will take time to repair. The Trump administration’s goals, whether achievable or not, are part of a long-term strategy that is likely to survive weekly or even daily policy flips. As long as tariff uncertainty and trade wars linger, however, it will be more difficult to find a catalyst that will increase freight demand in the US. That’s pushing hopes for a freight recovery farther into 2026. Contact William B. Cassidy at bill.cassidy@spglobal.com . Journal of Commerce editors Ari Ashe, Greg Knowler, Bill Mongelluzzo and Laura Robb contributed to this report, along with Research Analyst Cathy Morrow Roberson.

Surface

Supply chain

Tariff-related disruption spreading as US shippers ‘pause’ plans

<div class="phx-topic abstract-wrapper">The increase in blank sailings coincides with the Port of Los Angeles’ expectation that container volumes will plunge 14% month over month in week 18 and 38.6% in week 19.</div>

The increase in blank sailings coincides with the Port of Los Angeles’ expectation that container volumes will plunge 14% month over month in week 18 and 38.6% in week 19.

<div class="phx-topic">Correction: An earlier version of this story incorrectly misattributed April blank sailing data to Sea-Intelligence Maritime Analysis. The Journal of Commerce apologizes for the error.Container lines are increasingly blanking trans-Pacific as US importers are increasingly canceling or suspending orders due to tariff increases that have made some business infeasible. The escalation in blank sailings in the last two weeks has been “staggering,” giving a glimpse of just how sharp the decline could be next month, said Sea-Intelligence Maritime Analysis CEO Alan Murphy. Based on the removal of functional capacity, “carriers now clearly anticipate container demand in week 18 to be 28% lower than expected, and on Asia-North America East Coast in week 19, they now expect shippers to move as much as 42% less cargo than anticipated,” Murphy wrote in the analyst’s Sunday Spotlight newsletter. The increase in blank sailings coincides with the Port of Los Angeles’ expectation that container volumes will plunge 14% month over month in week 18 and 38.6% in week 19, respectively, according to the port’s forecasting tool. In the first full week of May, volumes through the country’s largest import gateway are projected to plummet 43% year over year. Forwarders say bookings from Southeast Asia to the US have held up better than those for shipments from China, presumably thanks to the 90-day suspension of significantly higher tariffs on goods sourced from Vietnam and Cambodia. Imports from those countries now face a 10% tariff, rather than the initially announced duties of 46% and 49%, respectively. Weekly bookings for shipments from China have plunged 37% since March 31, while bookings for Southeast Asian imports from have risen 10%, according to a Monday analysis of data from maritime visibility provider Vizion and analytics firm Dun &amp; Bradstreet. Earlier this month, US retailers slashed their outlook for US imports in the second quarter and the second half, warning that volumes would fall by more than 20% on an annual basis in every month from May through August. <h3>‘Consolidating’ services </h3>Container lines have yet to outright cancel container services, however, choosing instead to blank sailings and skip individual port calls. Taiwan-based Evergreen Marine, which operates the Hangzhou Bay Bridge (HBB) service as part of the Ocean Alliance, has canceled sailings for four straight weeks into Los Angeles and Oakland, removing 8,000 TEUs to 12,000 TEUs of weekly capacity. South Korea, which is serviced on HBB’s call at Busan, reported a 5% drop in exports during the first 20 days of April, following the release of Trump’s reciprocal tariffs. Ocean Alliance’s Bohai service, operated by Cosco Shipping, will cancel a China departure for Long Beach in the first week of May, according to vessel schedules, removing 10,000 TEUs of capacity during that time. Ocean Alliance’s Hibiscus Express and Yangtze services are also expected to blank one weekly departure each from China. A US-based executive with an independent ocean carrier who asked not to be identified said that while they have not yet seen further cancellations of their China bookings, there will likely be fewer China port calls as carriers prepare for lower volumes. “We have not seen an increase in cancellations, but the market is still soft,” he told the Journal of Commerce. “It’s likely that carriers will start to consolidate their China services in the short term.” While services may be outright canceled, there appears to be some withdrawal of vessels in the trans-Pacific trade. The 8,500-TEU Cosco Thailand, part of the Pacific South China Express Service operated by OOCL, appears to have been removed from the service’s schedule for May, along with the 8,800-TEU OOCL Utah. Following its voyage back to China, the Cosco Thailand will start calling Mexico’s West Coast ports in late June, according to the vessel’s schedule. The withdrawals effectively leave the 8,063-TEU OOCL Southampton as the only nominated ship in the service, which will require it to only offer a once-a-month service from Asia. <h3>Then, and now </h3>Approximately five years ago, when volumes plunged 62% from February to March, imports from Asia came roaring back and demand remained at historic highs for two years. This time around, however, there’s less reason to expect a similar rebound given the high level of uncertainty around US tariffs — now 145% on imports from China — and months of frontloading in anticipation of the higher duties. Various US retailers tell the Journal of Commerce that they’ve got as much as three and a half months of core inventory, allowing logistics managers to see if President Donald Trump reduces tariff levels or adds exemptions. Some shippers are moving inventory into bonded warehouses to avoid paying tariffs, betting that the severity of US tariffs can’t last more than a few months. Senior Editors Bill Mongelluzzo and Michael Angell and associate editor Laura Robb contributed to this report. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

Correction: An earlier version of this story incorrectly misattributed April blank sailing data to Sea-Intelligence Maritime Analysis. The Journal of Commerce apologizes for the error. Container lines are increasingly blanking trans-Pacific as US importers are increasingly canceling or suspending orders due to tariff increases that have made some business infeasible. The escalation in blank sailings in the last two weeks has been “staggering,” giving a glimpse of just how sharp the decline could be next month, said Sea-Intelligence Maritime Analysis CEO Alan Murphy. Based on the removal of functional capacity, “carriers now clearly anticipate container demand in week 18 to be 28% lower than expected, and on Asia-North America East Coast in week 19, they now expect shippers to move as much as 42% less cargo than anticipated,” Murphy wrote in the analyst’s Sunday Spotlight newsletter. The increase in blank sailings coincides with the Port of Los Angeles’ expectation that container volumes will plunge 14% month over month in week 18 and 38.6% in week 19, respectively, according to the port’s forecasting tool. In the first full week of May, volumes through the country’s largest import gateway are projected to plummet 43% year over year. Forwarders say bookings from Southeast Asia to the US have held up better than those for shipments from China, presumably thanks to the 90-day suspension of significantly higher tariffs on goods sourced from Vietnam and Cambodia. Imports from those countries now face a 10% tariff, rather than the initially announced duties of 46% and 49%, respectively. Weekly bookings for shipments from China have plunged 37% since March 31, while bookings for Southeast Asian imports from have risen 10%, according to a Monday analysis of data from maritime visibility provider Vizion and analytics firm Dun & Bradstreet. Earlier this month, US retailers slashed their outlook for US imports in the second quarter and the second half, warning that volumes would fall by more than 20% on an annual basis in every month from May through August. ‘Consolidating’ services Container lines have yet to outright cancel container services, however, choosing instead to blank sailings and skip individual port calls. Taiwan-based Evergreen Marine, which operates the Hangzhou Bay Bridge (HBB) service as part of the Ocean Alliance, has canceled sailings for four straight weeks into Los Angeles and Oakland, removing 8,000 TEUs to 12,000 TEUs of weekly capacity. South Korea, which is serviced on HBB’s call at Busan, reported a 5% drop in exports during the first 20 days of April, following the release of Trump’s reciprocal tariffs. Ocean Alliance’s Bohai service, operated by Cosco Shipping, will cancel a China departure for Long Beach in the first week of May, according to vessel schedules, removing 10,000 TEUs of capacity during that time. Ocean Alliance’s Hibiscus Express and Yangtze services are also expected to blank one weekly departure each from China. A US-based executive with an independent ocean carrier who asked not to be identified said that while they have not yet seen further cancellations of their China bookings, there will likely be fewer China port calls as carriers prepare for lower volumes. “We have not seen an increase in cancellations, but the market is still soft,” he told the Journal of Commerce. “It’s likely that carriers will start to consolidate their China services in the short term.” While services may be outright canceled, there appears to be some withdrawal of vessels in the trans-Pacific trade. The 8,500-TEU Cosco Thailand, part of the Pacific South China Express Service operated by OOCL, appears to have been removed from the service’s schedule for May, along with the 8,800-TEU OOCL Utah. Following its voyage back to China, the Cosco Thailand will start calling Mexico’s West Coast ports in late June, according to the vessel’s schedule. The withdrawals effectively leave the 8,063-TEU OOCL Southampton as the only nominated ship in the service, which will require it to only offer a once-a-month service from Asia. Then, and now Approximately five years ago, when volumes plunged 62% from February to March, imports from Asia came roaring back and demand remained at historic highs for two years. This time around, however, there’s less reason to expect a similar rebound given the high level of uncertainty around US tariffs — now 145% on imports from China — and months of frontloading in anticipation of the higher duties. Various US retailers tell the Journal of Commerce that they’ve got as much as three and a half months of core inventory, allowing logistics managers to see if President Donald Trump reduces tariff levels or adds exemptions. Some shippers are moving inventory into bonded warehouses to avoid paying tariffs, betting that the severity of US tariffs can’t last more than a few months. Senior Editors Bill Mongelluzzo and Michael Angell and associate editor Laura Robb contributed to this report. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Container Shipping News

Port News

North American ports

Trans-Pacific

Asia-US blank sailing forecast for May increasing amid cancellations

<div class="phx-topic abstract-wrapper">The alcoholic beverage industry is in decline as consumer tastes change, which is being felt in the import business as it deals with flat volumes. </div>

The alcoholic beverage industry is in decline as consumer tastes change, which is being felt in the import business as it deals with flat volumes.

<div class="phx-topic">Higher tariffs on US imports of wine and other alcoholic beverages are a nightcap the industry doesn’t need given a broader multi-year decline in drinking among Americans. After draining down inventories in 2023, wine and spirits shipments into the US rebounded last year, but volumes remain below levels prior to the COVID-19 pandemic amid a secular downturn in alcohol consumption, forcing retailers and wholesalers to be more selective in which products to stock. Total containerized imports of alcoholic beverages rose 12.8% in 2024, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. However, that growth came after an 18% plunge in 2023, and volumes were the second lowest in six years of data and down 6.4% from 2019. Alison Leavitt, managing director of the Wine and Spirits Shippers Association, told the Journal of Commerce that last year’s growth reflects some restocking among importers and distributors after they had reduced a pandemic-era oversupply throughout 2023. Census Bureau data show monthly wholesale US alcoholic beverage inventories peaking at just over $26 billion in March 2023, with inventories hovering at about $25 billion since then. However, it appears unlikely that distributors would build up inventories in the short term, Leavitt said. Merchant wholesalers of alcoholic beverages saw annual sales peak at $191.1 billion in 2022 before falling to $185.4 billion in 2024. Leavitt said the drop in sales reflects a trend of some consumers eschewing alcohol for cannabis, as well as lower drinking rates among members of Generation Z. “There’s a decline in overall consumption, in all categories,” Leavitt said. “The decline is a factor in shipping volumes. The US is a dead market for most categories.” Leavitt said there are a few categories that are still growing at a decent clip, such as Sauvignon Blancs from New Zealand, but those volumes are not enough to make up for the declines in “Old World” wine and spirits from Europe, Leavitt said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9a4ef4ce-e8b7-4577-8464-187b9b81b4be"></dynamic-object></div>The decline is reflected in the long-term growth trends for various US gateways. The Port of New York and New Jersey, the first port of call for most European wine and spirits imports, has seen a 3% average annual decline in such shipments since 2019. Even South American wines from Chile and Argentina appear to be taking a hit, with alcoholic beverage imports into the ports of Los Angeles and Long Beach down 4.2% per year on average since 2019. The Florida ports of Miami and Jacksonville have bucked this trend. Miami has seen five-year average annual growth of 4.5% while Jacksonville has seen 17% growth. Leavitt said these numbers reflect the healthy demand in Florida’s cruise industry, which continues to rebound after the pandemic, along with alcohol reexported to Caribbean resorts. “The cruise and duty-free trade came back strong after COVID, and Miami is the hub for that,” Leavitt said. Trump’s ongoing trade dispute will further scramble the outlook for alcoholic beverage imports in 2025, Leavitt said. Most European wine only had a small duty rate under previous administrations. Constellation Brands, the bottler of Corona and other Mexican beer brands, said on an April 10 earnings call that the 25% tariff on imported beer and empty aluminum cans will affect earnings results for 2025. Constellation said the tariffs will also affect imports from New Zealand and Italy. With a 20% base tariff on all imported goods from the EU, along with the threat of further reciprocal tariffs, wine and spirits distributors’ already thin margins are getting squeezed even more, Leavitt added. “The tariff issues have created a lot of uncertainty,” she said. “Companies are looking seriously at their products and wondering, ‘Do I order this?’” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Higher tariffs on US imports of wine and other alcoholic beverages are a nightcap the industry doesn’t need given a broader multi-year decline in drinking among Americans. After draining down inventories in 2023, wine and spirits shipments into the US rebounded last year, but volumes remain below levels prior to the COVID-19 pandemic amid a secular downturn in alcohol consumption, forcing retailers and wholesalers to be more selective in which products to stock. Total containerized imports of alcoholic beverages rose 12.8% in 2024, according to PIERS, a sister product of the Journal of Commerce within S&P Global. However, that growth came after an 18% plunge in 2023, and volumes were the second lowest in six years of data and down 6.4% from 2019. Alison Leavitt, managing director of the Wine and Spirits Shippers Association, told the Journal of Commerce that last year’s growth reflects some restocking among importers and distributors after they had reduced a pandemic-era oversupply throughout 2023. Census Bureau data show monthly wholesale US alcoholic beverage inventories peaking at just over $26 billion in March 2023, with inventories hovering at about $25 billion since then. However, it appears unlikely that distributors would build up inventories in the short term, Leavitt said. Merchant wholesalers of alcoholic beverages saw annual sales peak at $191.1 billion in 2022 before falling to $185.4 billion in 2024. Leavitt said the drop in sales reflects a trend of some consumers eschewing alcohol for cannabis, as well as lower drinking rates among members of Generation Z. “There’s a decline in overall consumption, in all categories,” Leavitt said. “The decline is a factor in shipping volumes. The US is a dead market for most categories.” Leavitt said there are a few categories that are still growing at a decent clip, such as Sauvignon Blancs from New Zealand, but those volumes are not enough to make up for the declines in “Old World” wine and spirits from Europe, Leavitt said. The decline is reflected in the long-term growth trends for various US gateways. The Port of New York and New Jersey, the first port of call for most European wine and spirits imports, has seen a 3% average annual decline in such shipments since 2019. Even South American wines from Chile and Argentina appear to be taking a hit, with alcoholic beverage imports into the ports of Los Angeles and Long Beach down 4.2% per year on average since 2019. The Florida ports of Miami and Jacksonville have bucked this trend. Miami has seen five-year average annual growth of 4.5% while Jacksonville has seen 17% growth. Leavitt said these numbers reflect the healthy demand in Florida’s cruise industry, which continues to rebound after the pandemic, along with alcohol reexported to Caribbean resorts. “The cruise and duty-free trade came back strong after COVID, and Miami is the hub for that,” Leavitt said. Trump’s ongoing trade dispute will further scramble the outlook for alcoholic beverage imports in 2025, Leavitt said. Most European wine only had a small duty rate under previous administrations. Constellation Brands, the bottler of Corona and other Mexican beer brands, said on an April 10 earnings call that the 25% tariff on imported beer and empty aluminum cans will affect earnings results for 2025. Constellation said the tariffs will also affect imports from New Zealand and Italy. With a 20% base tariff on all imported goods from the EU, along with the threat of further reciprocal tariffs, wine and spirits distributors’ already thin margins are getting squeezed even more, Leavitt added. “The tariff issues have created a lot of uncertainty,” she said. “Companies are looking seriously at their products and wondering, ‘Do I order this?’” Contact Michael Angell at michael.angell@spglobal.com .

Fewer drinkers keep lid on US wine and spirits imports

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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Filling the Supply Chain Education Gap with LTL Education Courses

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