<div class="phx-topic abstract-wrapper">No test, it seems, can predict the outcome of an admiralty lawsuit for cargo damage when the loss co</div>

No test, it seems, can predict the outcome of an admiralty lawsuit for cargo damage when the loss co

<div>No test, it seems, can predict the outcome of an admiralty lawsuit for cargo damage when the loss could have been caused by the carelessness of either the shipowner or the cargo owner.More than 50 years ago, the 2nd Circuit Court of Appeals in the Silver Sandals case (110 F.2d 60) made the following observation on the subject:"On the one hand, there are very few goods, cased or not cased, that some degree of care will not protect from the perils of a sea voyage; and on the other, there are few that cannot be packed or cased so that...

No test, it seems, can predict the outcome of an admiralty lawsuit for cargo damage when the loss could have been caused by the carelessness of either the shipowner or the cargo owner. More than 50 years ago, the 2nd Circuit Court of Appeals in the Silver Sandals case (110 F.2d 60) made the following observation on the subject:"On the one hand, there are very few goods, cased or not cased, that some degree of care will not protect from the perils of a sea voyage; and on the other, there are few that cannot be packed or cased so that they will survive the roughest handling . . . The greater part of the law is made up of the compromise of such conflicts of interest. "In the carriage of goods, the trade must always come to some accommodation between ideal perfection of stowage and entire disregard of the safety of the goods." Under the Carriage of Goods by Sea Act, known as Cogsa, the ocean carrier has an absolute duty to properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried. This duty cannot be avoided by obtaining the cargo owner's approval of the stow or the condition of the vessel. Cogsa also provides that the ocean carrier is bound before the commencement of the voyage to exercise due diligence to make the ship seaworthy and the cargo holds fit for the reception, carriage and preservation of the cargo. This is a non-delegable duty. But to complicate matters, Cogsa exempts the carrier from liability for damage arising from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy. The test for seaworthiness is whether the ship is reasonably fit to carry the specific goods. There is, however, no obligation to furnish an accident- free vessel. An ocean carrier's duty to properly care for the cargo must be delicately balanced with the cargo owner's duty to properly package the goods for the ordinary hazards of ocean transit. Cogsa provides "neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from insufficiency of packaging." The recent Nosira Sharon case (1992 WL 202180) in the New York federal district court demonstrates the delicate balancing test that must be applied when determining whether packaging was designed to endure the ordinary hazards of a voyage or whether the shipowner failed to satisfy its duty to properly care for the cargo. The cargo owner alleged that bags of sugar were contaminated by debris in the ship's holds. The shipowner raised the insufficiency of packaging defense, claiming the outer bags of the sugar were open and allowed debris to enter the bags' liners. Rejecting the shipowner's argument, the court concluded that the bags were reasonably "suited to protect their contents, and in fact did so. But for the carrier's negligence in preparing the vessel's holds, the harm could have been totally avoided." (However, the bag contents were damaged.) As the Nosira Sharon case illustrates, even when parties to ocean contracts of carriage strive to perform their respective duties with regard to packaging and caring for cargo, they still remain subject to the uncertainties associated with litigation in this compromising area of the law.

Maritime

UNCERTAINTIES OF LITIGATION MAKE CASES ON CARGO CARE VIRTUALLY UNPREDICTABLE

<div class="phx-topic abstract-wrapper">Carriers in the specialized cargo sector are designing contracts that would shift the cost of the US’ possible tax on Chinese tonnage to heavy-lift and project cargo shippers. </div>

Carriers in the specialized cargo sector are designing contracts that would shift the cost of the US’ possible tax on Chinese tonnage to heavy-lift and project cargo shippers.

Feature image

<div class="phx-topic">Heavy-lift and project cargo shippers could end up paying 25% more in transportation costs if carriers and shipowners enact contract clauses meant to recoup possible US port fees associated with Chinese-owned, operated and built ships. As the United States Trade Representative (USTR) considers fees that would rattle the breakbulk market, vessel owners see opportunities to get ahead of the possible disruption by including clauses that address the fees. “Many carriers are working on finding solutions for the additional port dues for operators of Chinese-built ships,” Yorck Niclas Prehm, head of research with shipbroker Toepfer Transport, told the Journal of Commerce. “A significant number of these carriers have already incorporated clauses in their offers and booking notes that enable them to pass on the potential additional costs to the shippers.” One carrier source estimated that project cargo transportation costs could increase by 25% and expects the charges — if implemented — to be accepted with relatively little pushback as carriers appear united in their plans to pass down the cost. Still, carriers and ship owners stressed the potential implications of the fees, which are astronomically higher than other port fees normally addressed in contractual clauses. “Through the existing contractual framework, we are actually able to contract our way out of it,” said Thomas Damsgaard, head of Americas at BIMCO. BIMCO is one of the largest international shipping associations representing ship owners. And while contracts in some sectors of the shipping industry are less iron clad, the heavy-lift and project cargo market is small enough that contractual obligations are more durable. <h3>Port diversions possible </h3>Damsgaard said the structural context for port fees in general is already in most contracts and only needs to be revised to protect vessel owners from bearing the costs of the USTR proposal. Carriers and ship owners agreed, though, that the size of the proposed USTR fees adds another layer of complexity to passing costs down to the shipper. Some breakbulk carriers are also pursuing uniformity in addressing solutions to avoid bearing the cost that might be associated with Chinese vessels, such as inserting a clause in their contracts that allows for diversions to non-US ports. Such a clause might resemble a voyage charter war risk clause in that it allows carriers to cancel the contract before loading if they believe the threat of port fees is likely. And if cargo is already loaded when the threat is realized, then the cargo can be delivered to an alternate port. Ultimately, the contract clause would allow for any port costs to be passed on to the charterer. Still, the ongoing uncertainty remains the driving factor between settling contracts and planning projects. “At the moment the main word for me [with projects] is uncertainty,” Peter Molloy, senior associate of breakbulk and heavy-lift for maritime research company Drewry, told the Journal of Commerce. “What is coming out of the US regarding trade wars...is not the immediate problem. It is the uncertainty it brings.” Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">Laura.Robb@spglobal.com</a>. </div>

Heavy-lift and project cargo shippers could end up paying 25% more in transportation costs if carriers and shipowners enact contract clauses meant to recoup possible US port fees associated with Chinese-owned, operated and built ships. As the United States Trade Representative (USTR) considers fees that would rattle the breakbulk market, vessel owners see opportunities to get ahead of the possible disruption by including clauses that address the fees. “Many carriers are working on finding solutions for the additional port dues for operators of Chinese-built ships,” Yorck Niclas Prehm, head of research with shipbroker Toepfer Transport, told the Journal of Commerce. “A significant number of these carriers have already incorporated clauses in their offers and booking notes that enable them to pass on the potential additional costs to the shippers.” One carrier source estimated that project cargo transportation costs could increase by 25% and expects the charges — if implemented — to be accepted with relatively little pushback as carriers appear united in their plans to pass down the cost. Still, carriers and ship owners stressed the potential implications of the fees, which are astronomically higher than other port fees normally addressed in contractual clauses. “Through the existing contractual framework, we are actually able to contract our way out of it,” said Thomas Damsgaard, head of Americas at BIMCO. BIMCO is one of the largest international shipping associations representing ship owners. And while contracts in some sectors of the shipping industry are less iron clad, the heavy-lift and project cargo market is small enough that contractual obligations are more durable. Port diversions possible Damsgaard said the structural context for port fees in general is already in most contracts and only needs to be revised to protect vessel owners from bearing the costs of the USTR proposal. Carriers and ship owners agreed, though, that the size of the proposed USTR fees adds another layer of complexity to passing costs down to the shipper. Some breakbulk carriers are also pursuing uniformity in addressing solutions to avoid bearing the cost that might be associated with Chinese vessels, such as inserting a clause in their contracts that allows for diversions to non-US ports. Such a clause might resemble a voyage charter war risk clause in that it allows carriers to cancel the contract before loading if they believe the threat of port fees is likely. And if cargo is already loaded when the threat is realized, then the cargo can be delivered to an alternate port. Ultimately, the contract clause would allow for any port costs to be passed on to the charterer. Still, the ongoing uncertainty remains the driving factor between settling contracts and planning projects. “At the moment the main word for me [with projects] is uncertainty,” Peter Molloy, senior associate of breakbulk and heavy-lift for maritime research company Drewry, told the Journal of Commerce. “What is coming out of the US regarding trade wars...is not the immediate problem. It is the uncertainty it brings.” Contact Laura Robb at Laura.Robb@spglobal.com .

Port News

Transport, Trade and Regulation News

Breakbulk carriers

Heavy-haul transport

Project cargo

North American ports

Breakbulk News

Project cargo carriers move to shield themselves from US port fee proposal

<div class="phx-topic abstract-wrapper">Multiple sources who spoke with the Journal of Commerce say Chinese exporters facing demand headwinds in the US due to soaring tariffs will likely attempt to dump inventory stocks in other markets, with India widely viewed as a key target.</div>

Multiple sources who spoke with the Journal of Commerce say Chinese exporters facing demand headwinds in the US due to soaring tariffs will likely attempt to dump inventory stocks in other markets, with India widely viewed as a key target.

<div class="phx-topic">The escalating trade conflict between the US and China has the potential to redefine supply chain dynamics in Asia as regional manufacturers search for new growth markets, industry sources in India believe. Multiple sources who spoke with the Journal of Commerce noted that Chinese exporters facing demand headwinds in the US due to soaring tariffs will likely attempt to dump inventory stocks in other markets, with India widely viewed as a key target. That’s because India depends heavily on imports of both finished and unfinished goods from Asia to support burgeoning consumer demand and industrial verticals slowly gathering pace. Historically, India has a gaping trade deficit with China, which stood close to $100 billion in fiscal year 2024-25, new data shows. New Delhi has, undeniably, demonstrated a stronger intent in recent years to emerge as an alternative production hub in Asia, but that push has seen its input sourcing accelerate out of China. “Nearshoring could gain momentum in a near- to medium-term trend of China-origin goods increasingly flowing regionally,” a Mumbai-based carrier executive who did not want to be identified told the Journal of Commerce. “A lot also will depend on India’s anti-dumping policies.” Sunil Vaswani, executive director of the Container Shipping Lines Association (India), believes China will undoubtedly explore greater business opportunities with India amid the “tariff brouhaha.” “While it’s a win-win proposition for both sides, India needs to keep a vigil on any dumping of goods by Chinese suppliers as that probability could harm domestic interests around the ‘Make-in-India' strategy,” Vaswani said. “There are indications that Chinese companies are now more willing to accept Indian regulatory conditions, including minority ownership for foreign direct investment.” Vaswani also noted that India needs to upgrade its supply chain ecosystem to better compete with Vietnam, another key production source Asia A Mumbai-based logistics head at a diversified conglomerate echoed that premise. “There is a fair chance China will use other Asian markets that it believes the US will favor sourcing from, and this could spell a new trade pattern,” the source said. <h3>‘Chasing cargo’ </h3>Targeting the trade diversification, predominant intra-Asia liners have already substantially enhanced coverage out of India with China or Vietnam the focal cargo point. And sources anticipate another wave of network expansions in the days ahead as inbound trade prospects for Indian ports brighten. Some signals are already emerging – a new 2,200-TEU “Southeast Asia-East India” network led by Wan Hai Lines, Evergreen, RCL Feeder and Bengal Tiger is due to begin next month, while Singapore’s Pacific International Lines is reportedly in talks with RCL and Sinokor Merchant Marine to open a China-Malaysia-Singapore-India loop in June. Several mainliners, particularly Maersk and CMA CGM, are also considering entering the intra-Asia market in a bigger way, industry insiders say. “We are in the business of chasing cargo,” a mainliner source said. “Intra-Asia trades remain vital to container inventory management.” Indian freight forwarders are already fielding more inquiries from local importers regarding rate indications for services out of China, sources told the Journal of Commerce. Indian import rates on the intra-Asia trade lane have been mostly steady over the past year, with the current trendline in the range of $900 per TEU and $1,000 per FEU for loads from Shanghai or Ningbo to Nhava Sheva, data reveals. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

The escalating trade conflict between the US and China has the potential to redefine supply chain dynamics in Asia as regional manufacturers search for new growth markets, industry sources in India believe. Multiple sources who spoke with the Journal of Commerce noted that Chinese exporters facing demand headwinds in the US due to soaring tariffs will likely attempt to dump inventory stocks in other markets, with India widely viewed as a key target. That’s because India depends heavily on imports of both finished and unfinished goods from Asia to support burgeoning consumer demand and industrial verticals slowly gathering pace. Historically, India has a gaping trade deficit with China, which stood close to $100 billion in fiscal year 2024-25, new data shows. New Delhi has, undeniably, demonstrated a stronger intent in recent years to emerge as an alternative production hub in Asia, but that push has seen its input sourcing accelerate out of China. “Nearshoring could gain momentum in a near- to medium-term trend of China-origin goods increasingly flowing regionally,” a Mumbai-based carrier executive who did not want to be identified told the Journal of Commerce. “A lot also will depend on India’s anti-dumping policies.” Sunil Vaswani, executive director of the Container Shipping Lines Association (India), believes China will undoubtedly explore greater business opportunities with India amid the “tariff brouhaha.” “While it’s a win-win proposition for both sides, India needs to keep a vigil on any dumping of goods by Chinese suppliers as that probability could harm domestic interests around the ‘Make-in-India' strategy,” Vaswani said. “There are indications that Chinese companies are now more willing to accept Indian regulatory conditions, including minority ownership for foreign direct investment.” Vaswani also noted that India needs to upgrade its supply chain ecosystem to better compete with Vietnam, another key production source Asia A Mumbai-based logistics head at a diversified conglomerate echoed that premise. “There is a fair chance China will use other Asian markets that it believes the US will favor sourcing from, and this could spell a new trade pattern,” the source said. ‘Chasing cargo’ Targeting the trade diversification, predominant intra-Asia liners have already substantially enhanced coverage out of India with China or Vietnam the focal cargo point. And sources anticipate another wave of network expansions in the days ahead as inbound trade prospects for Indian ports brighten. Some signals are already emerging – a new 2,200-TEU “Southeast Asia-East India” network led by Wan Hai Lines, Evergreen, RCL Feeder and Bengal Tiger is due to begin next month, while Singapore’s Pacific International Lines is reportedly in talks with RCL and Sinokor Merchant Marine to open a China-Malaysia-Singapore-India loop in June. Several mainliners, particularly Maersk and CMA CGM, are also considering entering the intra-Asia market in a bigger way, industry insiders say. “We are in the business of chasing cargo,” a mainliner source said. “Intra-Asia trades remain vital to container inventory management.” Indian freight forwarders are already fielding more inquiries from local importers regarding rate indications for services out of China, sources told the Journal of Commerce. Indian import rates on the intra-Asia trade lane have been mostly steady over the past year, with the current trendline in the range of $900 per TEU and $1,000 per FEU for loads from Shanghai or Ningbo to Nhava Sheva, data reveals. Contact Bency Mathew at bencyvmathew@gmail.com.

Container Shipping News

Container lines

International ports

US-China trade standoff could mean intra-Asia capacity boost for Indian market

<div class="phx-topic abstract-wrapper">While no surge in volume has been reported on the trade lane, capacity deployment data shows ocean carriers are expecting an increase in demand over the coming weeks as shippers use the 90-day tariff pause to advance US orders.</div>

While no surge in volume has been reported on the trade lane, capacity deployment data shows ocean carriers are expecting an increase in demand over the coming weeks as shippers use the 90-day tariff pause to advance US orders.

<div class="phx-topic">The 90-day pause in US tariffs on its non-China trading partners is not yet causing a significant increase in frontloading on the trans-Atlantic, but there are signs of rising demand on the westbound trade lane. For a start, there have been limited blank sailings announced on the trans-Atlantic in the coming weeks, with just 7,124 TEUs to be withdrawn from North Europe to the US East and Gulf coasts in May, according to ocean visibility provider eeSea. ”It seems as if carriers are pushing up capacity to cater for whatever frontloading may be needed by European exporters,” Peter Sand, chief analyst at rate benchmarking platform Xeneta, told the Journal of Commerce. “By reducing the number of blank sailings, the offered capacity is close to an all-time-high, which is indicative of fairly strong demand right now as spot rates go up,” Sand added. “The 90-day pause in tariffs-on/tariffs-off is seen by some shippers as an opportunity to fill inventories while hoping for a more permanent situation without flip-flopping political proposals.” Data from eeSea shows capacity of 340,616 TEUs will be deployed in May on the westbound trans-Atlantic, a 1.4% increase compared to April. But the blanked capacity in May is significantly less than the 17,256 TEUs withdrawn in April <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="dfd67cef-2540-4a5a-8d1a-6185d4324049"></dynamic-object></div>Another potential sign of shippers advancing orders is an increase in rates. After months of decline, the spot market on the North Europe-US East Coast trade is up almost 4% since late March, reversing the downward trend following <a href="https://www.joc.com/article/ila-usmx-agree-on-new-wage-offer-and-contract-extension-that-reopens-ports-5741882">the brief strike at ports along the East and Gulf coasts</a> last October. Spot rates are currently at $2,162 per FEU, according to Xeneta. The third sign of an expected surge in trans-Atlantic demand are the peak season surcharges (PSS) being levied by some carriers. Mediterranean Shipping Co. (MSC), one of the most active carriers on the trade lane, has announced a $1,000 per FEU PSS to take effect on May 13 from North Europe to the US, Canada and Mexico. Peak season surcharges are also planned for the Mediterranean to North America trade lane from May 3. Hapag-Lloyd will add $750/FEU while MSC and CMA CGM will implement a $1,000/FEU PSS. <h3>European ports monitoring for volume shifts </h3>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. Those target industrial and agricultural products from the US, including steel and aluminum, textiles, leather goods, household appliances, tools, plastics, wood products, and foodstuffs such as poultry, beef, seafood, nuts, dairy, sugar and vegetables. With the 90-day window open to shippers, Europe’s port of Antwerp-Bruges is watching closely for changes in trade flows with the US, the Belgian hub’s second-largest trading partner. In 2024, exports to the US totaled 613,437 TEUs, consisting mainly of auto and machinery parts from Germany, chemicals, vehicles, food, plastics and pharmaceuticals. Imports from the US included plastics, polymers, chemicals, rubber, vehicles, food and pharmaceuticals. “So far, there have been no significant traffic shifts directly linked to the recent measures,” the port of Antwerp-Bruges said in a statement Wednesday. “While some companies are acting in anticipation, a marked increase in exports to the US has not materialized.” While the direct impact of US tariffs was limited “for now,” Antwerp-Bruges warned that could change quickly amid geopolitical tensions and further development in trade tariffs. Meanwhile, Maersk has issued a customer advisory warning of increasing congestion levels and operational disruptions at several ports across Northern Europe, specifically Antwerp and Bremerhaven, adding delays to ships on both Asia-Europe and trans-Atlantic trades. “This is a result of multiple factors affecting the ports, such as strike actions, phase-in and phase-out plans of ocean networks across the industry, low water levels on continental hinterland arteries and the lower than usual labor availability ahead of the Easter holidays,” the carrier advised. “The combination of these factors is leading to additional yard density and increased container dwelling above the ports’ operational capacity,” Maersk added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The 90-day pause in US tariffs on its non-China trading partners is not yet causing a significant increase in frontloading on the trans-Atlantic, but there are signs of rising demand on the westbound trade lane. For a start, there have been limited blank sailings announced on the trans-Atlantic in the coming weeks, with just 7,124 TEUs to be withdrawn from North Europe to the US East and Gulf coasts in May, according to ocean visibility provider eeSea. ”It seems as if carriers are pushing up capacity to cater for whatever frontloading may be needed by European exporters,” Peter Sand, chief analyst at rate benchmarking platform Xeneta, told the Journal of Commerce. “By reducing the number of blank sailings, the offered capacity is close to an all-time-high, which is indicative of fairly strong demand right now as spot rates go up,” Sand added. “The 90-day pause in tariffs-on/tariffs-off is seen by some shippers as an opportunity to fill inventories while hoping for a more permanent situation without flip-flopping political proposals.” Data from eeSea shows capacity of 340,616 TEUs will be deployed in May on the westbound trans-Atlantic, a 1.4% increase compared to April. But the blanked capacity in May is significantly less than the 17,256 TEUs withdrawn in April Another potential sign of shippers advancing orders is an increase in rates. After months of decline, the spot market on the North Europe-US East Coast trade is up almost 4% since late March, reversing the downward trend following the brief strike at ports along the East and Gulf coasts last October. Spot rates are currently at $2,162 per FEU, according to Xeneta. The third sign of an expected surge in trans-Atlantic demand are the peak season surcharges (PSS) being levied by some carriers. Mediterranean Shipping Co. (MSC), one of the most active carriers on the trade lane, has announced a $1,000 per FEU PSS to take effect on May 13 from North Europe to the US, Canada and Mexico. Peak season surcharges are also planned for the Mediterranean to North America trade lane from May 3. Hapag-Lloyd will add $750/FEU while MSC and CMA CGM will implement a $1,000/FEU PSS. European ports monitoring for volume shifts 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. Those target industrial and agricultural products from the US, including steel and aluminum, textiles, leather goods, household appliances, tools, plastics, wood products, and foodstuffs such as poultry, beef, seafood, nuts, dairy, sugar and vegetables. With the 90-day window open to shippers, Europe’s port of Antwerp-Bruges is watching closely for changes in trade flows with the US, the Belgian hub’s second-largest trading partner. In 2024, exports to the US totaled 613,437 TEUs, consisting mainly of auto and machinery parts from Germany, chemicals, vehicles, food, plastics and pharmaceuticals. Imports from the US included plastics, polymers, chemicals, rubber, vehicles, food and pharmaceuticals. “So far, there have been no significant traffic shifts directly linked to the recent measures,” the port of Antwerp-Bruges said in a statement Wednesday. “While some companies are acting in anticipation, a marked increase in exports to the US has not materialized.” While the direct impact of US tariffs was limited “for now,” Antwerp-Bruges warned that could change quickly amid geopolitical tensions and further development in trade tariffs. Meanwhile, Maersk has issued a customer advisory warning of increasing congestion levels and operational disruptions at several ports across Northern Europe, specifically Antwerp and Bremerhaven, adding delays to ships on both Asia-Europe and trans-Atlantic trades. “This is a result of multiple factors affecting the ports, such as strike actions, phase-in and phase-out plans of ocean networks across the industry, low water levels on continental hinterland arteries and the lower than usual labor availability ahead of the Easter holidays,” the carrier advised. “The combination of these factors is leading to additional yard density and increased container dwelling above the ports’ operational capacity,” Maersk added. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Early signs of rising tariff-driven demand emerge on the trans-Atlantic

<div class="phx-topic abstract-wrapper">A lawsuit filed this month by the port authority claims the council’s recent rezoning of industrial land could eventually lead to the development of residential units and an increase in vehicular traffic in the harbor area.</div>

A lawsuit filed this month by the port authority claims the council’s recent rezoning of industrial land could eventually lead to the development of residential units and an increase in vehicular traffic in the harbor area.

<div class="phx-topic">The Port of Seattle is suing the Seattle City Council in a bid to halt a possible major housing development that port stakeholders say would interfere with truck traffic in the harbor area. A lawsuit the port authority filed on April 7 in King County Superior Court claims that the council’s recent rezoning of a “small, three-block area of industrial land” could eventually lead to the development of 990 residential units and an increase in vehicular traffic near the port, close to where two sports stadiums are already located. The city council in March approved the rezoning ordinance for property the city had previously protected from “inconsistent and incompatible uses in the port’s vicinity,” according to the lawsuit. In a statement last month, the port said the rezoning effort was supported by an “out-of-state billionaire developer” who owns the property. The developer has been identified in Seattle media as Chris Hansen, a Seattle native and hedge fund manager. The port wants implementation of the ordinance to be blocked and to be found in violation of state land use policies. “The port feels we must take these actions to defend industrially zoned lands critical to our economic development and job creation mission,” Port of Seattle Executive Director Steve Metruck said in a statement. “The harmful impact to maritime and industrial operations caused by the spot rezone were not dutifully considered and there are many inconsistencies with state, county and local land use regulations.” Port stakeholders, including the International Longshore and Warehouse Union (ILWU) and the Pacific Merchant Shipping Association (PMSA), which represents shipping lines and terminal operators on the West Coast, have publicly opposed the rezoning and potential development project. “PMSA is very involved, along with the ILWU,” Jordan Royer, PMSA’s vice president for external affairs, told the Journal of Commerce. Royer said port-adjacent land on the West Coast has long been a magnet for developers interested in building non-industrial projects such as sports stadiums and housing close to the waterfront. Port of Oakland stakeholders, including PMSA, fought for more than five years to block plans by a developer to build a professional baseball stadium, 3,000 residential units, shops and a hotel on the defunct Howard Terminal. <a href="https://www.joc.com/article/oaklands-howard-terminal-eyes-redevelopment-after-ballpark-proposal-strikes-out-5234580">The developer pulled out in 2023</a> and announced he would build the stadium in Las Vegas instead. Sara Nelson, the city council president who has pushed for the rezoning and housing development, was not immediately available for comment. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The Port of Seattle is suing the Seattle City Council in a bid to halt a possible major housing development that port stakeholders say would interfere with truck traffic in the harbor area. A lawsuit the port authority filed on April 7 in King County Superior Court claims that the council’s recent rezoning of a “small, three-block area of industrial land” could eventually lead to the development of 990 residential units and an increase in vehicular traffic near the port, close to where two sports stadiums are already located. The city council in March approved the rezoning ordinance for property the city had previously protected from “inconsistent and incompatible uses in the port’s vicinity,” according to the lawsuit. In a statement last month, the port said the rezoning effort was supported by an “out-of-state billionaire developer” who owns the property. The developer has been identified in Seattle media as Chris Hansen, a Seattle native and hedge fund manager. The port wants implementation of the ordinance to be blocked and to be found in violation of state land use policies. “The port feels we must take these actions to defend industrially zoned lands critical to our economic development and job creation mission,” Port of Seattle Executive Director Steve Metruck said in a statement. “The harmful impact to maritime and industrial operations caused by the spot rezone were not dutifully considered and there are many inconsistencies with state, county and local land use regulations.” Port stakeholders, including the International Longshore and Warehouse Union (ILWU) and the Pacific Merchant Shipping Association (PMSA), which represents shipping lines and terminal operators on the West Coast, have publicly opposed the rezoning and potential development project. “PMSA is very involved, along with the ILWU,” Jordan Royer, PMSA’s vice president for external affairs, told the Journal of Commerce. Royer said port-adjacent land on the West Coast has long been a magnet for developers interested in building non-industrial projects such as sports stadiums and housing close to the waterfront. Port of Oakland stakeholders, including PMSA, fought for more than five years to block plans by a developer to build a professional baseball stadium, 3,000 residential units, shops and a hotel on the defunct Howard Terminal. The developer pulled out in 2023 and announced he would build the stadium in Las Vegas instead. Sara Nelson, the city council president who has pushed for the rezoning and housing development, was not immediately available for comment. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port of Seattle sues city council to halt possible development project

<div class="phx-topic abstract-wrapper">The export decline is already showing up in some data, with bookings for US exports to China for the week of April 8–15 down 5.4% from the prior week.</div>

The export decline is already showing up in some data, with bookings for US exports to China for the week of April 8–15 down 5.4% from the prior week.

<div class="phx-topic">Chinese buyers have begun to cancel orders of goods and commodities from US exporters amid the escalating trade conflict between the two nations, and stakeholders expect the cancellations to continue until the battle over tariffs is resolved.Exporters also expect they will need redirect their cargo to other Asian countries to make up for the diminished Chinese market. M. Can Fidan, vice president of business development at New York-based MTS Logistics, told the Journal of Commerce he’s already seen the cancellation of 250 polymers containers and another customer’s entire fertilizer order. “If these tariffs stay, there is no way China will keep buying these products from us,” said Fidan.The export decline is already showing up in data. Bookings for US exports to China for the week of April 8–15 were down 5.4% from the prior week at 17,220 TEUs, according to maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. Two exporters, five forwarders and the head of a shipping group who spoke to the Journal of Commerce said a further drop in China-bound volumes is inevitable if tariffs on China persist, mirroring <a href="https://www.joc.com/article/trans-pacific-blank-sailings-set-to-rise-after-china-bookings-drop-sharply-5984166">the market shift already observed with imports</a>.“If they had contracts to [export containers to China], my assumption would be that a lot of them would likely be canceled,” one exporter said.Another non-vessel-operating common carrier source said they are seeing cancellations on many China-bound exports, especially goods with lower margins where the buyers cannot afford the additional cost. At the same time, the source is seeing sellers of more valuable commodities attempt to pass down the cost to their customers.Meanwhile, several forwarders said demand is strong from other countries that have had their reciprocal US import tariffs paused for 90 days. Shippers and forwarders are forecasting a pickup in export cargo volumes bound for other Southeast Asia countries.“In [the] short term, I think we’re going to see a lot of agriculture sourcing shift [from China] to other countries,” said Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC). Friedmann said he is also seeing canceled China-bound shipments in the agriculture sector. Shippers agreed that US exporters — and farmers in particular — are especially vulnerable to the new tariffs and reciprocal responses from China, adding that the impacts from tariffs implemented during President Donald Trump’s first term can still be felt in many markets. “We’re obviously really concerned,” said Mike Steenhoek, executive director of the Soybean Transportation Coalition. “People have been debating about the impact of these tariffs, [and] some people will say [that we’re speculating] ... It’s not speculation. It’s recollection. When we look at what happened in 2018 and 2019, we still haven’t recovered.”<h3>Cold chain stability, for now</h3>Despite the tariff-related hurdles for many US exporters, there are still calm spots, for now. A forwarding source in refrigerated exports said the cold chain market has been largely stable thus far.“We haven’t really seen such a change when it comes to the tariffs because these are planned so far ahead, and production is scheduled around them,” said the forwarder, who added that impacts to even their China-bound shipments were minimal.Friedmann agreed that many time-sensitive agriculture exports are less flexible, so many shipments are still moving forward. But they are being met with the potential for schedule reliability hurdles. “A lot of the steamship lines are canceling, blanking, delaying, [and] changing routes,” he said. “So, we are not going to have the same ocean transportation options we’re used to. Even if [customers] want to buy it, we’re still going to have increased difficulty delivering it.”Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>. </div>

Chinese buyers have begun to cancel orders of goods and commodities from US exporters amid the escalating trade conflict between the two nations, and stakeholders expect the cancellations to continue until the battle over tariffs is resolved. Exporters also expect they will need redirect their cargo to other Asian countries to make up for the diminished Chinese market. M. Can Fidan, vice president of business development at New York-based MTS Logistics, told the Journal of Commerce he’s already seen the cancellation of 250 polymers containers and another customer’s entire fertilizer order. “If these tariffs stay, there is no way China will keep buying these products from us,” said Fidan. The export decline is already showing up in data. Bookings for US exports to China for the week of April 8–15 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. Two exporters, five forwarders and the head of a shipping group who spoke to the Journal of Commerce said a further drop in China-bound volumes is inevitable if tariffs on China persist, mirroring the market shift already observed with imports . “If they had contracts to [export containers to China], my assumption would be that a lot of them would likely be canceled,” one exporter said. Another non-vessel-operating common carrier source said they are seeing cancellations on many China-bound exports, especially goods with lower margins where the buyers cannot afford the additional cost. At the same time, the source is seeing sellers of more valuable commodities attempt to pass down the cost to their customers. Meanwhile, several forwarders said demand is strong from other countries that have had their reciprocal US import tariffs paused for 90 days. Shippers and forwarders are forecasting a pickup in export cargo volumes bound for other Southeast Asia countries. “In [the] short term, I think we’re going to see a lot of agriculture sourcing shift [from China] to other countries,” said Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC). Friedmann said he is also seeing canceled China-bound shipments in the agriculture sector. Shippers agreed that US exporters — and farmers in particular — are especially vulnerable to the new tariffs and reciprocal responses from China, adding that the impacts from tariffs implemented during President Donald Trump’s first term can still be felt in many markets. “We’re obviously really concerned,” said Mike Steenhoek, executive director of the Soybean Transportation Coalition. “People have been debating about the impact of these tariffs, [and] some people will say [that we’re speculating] ... It’s not speculation. It’s recollection. When we look at what happened in 2018 and 2019, we still haven’t recovered.” Cold chain stability, for now Despite the tariff-related hurdles for many US exporters, there are still calm spots, for now. A forwarding source in refrigerated exports said the cold chain market has been largely stable thus far. “We haven’t really seen such a change when it comes to the tariffs because these are planned so far ahead, and production is scheduled around them,” said the forwarder, who added that impacts to even their China-bound shipments were minimal. Friedmann agreed that many time-sensitive agriculture exports are less flexible, so many shipments are still moving forward. But they are being met with the potential for schedule reliability hurdles. “A lot of the steamship lines are canceling, blanking, delaying, [and] changing routes,” he said. “So, we are not going to have the same ocean transportation options we’re used to. Even if [customers] want to buy it, we’re still going to have increased difficulty delivering it.” Contact Laura Robb at laura.robb@spglobal.com .

Forwarding

Trans-Pacific

US exporters see rise in canceled orders from Chinese buyers amid trade war

Use code GTW695 at checkout and save $800 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code STSW20 at checkout to save 20% on the first year of any annual subscription! 

Subscribe Now - Free Trials - Wide Box

SUBSCRIBE AND SAVE

Use code GUW795 at checkout and save $700 on first year of a Gold subscription!

Upgrade Subscription - Wide Box

UPGRADE AND SAVE

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Choose a subscription plan that works best for you!

Subscribe Now - Anonymous - Wide Box

SUBSCRIBE TODAY

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

SMC3rates_shutterstock_5247046.jpg

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>

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

SUBSCRIBE TODAY: Choose a subscription plan that works best for you!

Subscribe Now - Anonymous - Offer Box

Subscribe Today

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

SUBSCRIBE AND SAVE: Use code STSW20 at checkout to save 20% on first year of any subscription plan!


Subscribe Now - Free Trials - Offer Box

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

UPGRADE TO GOLD AND SAVE: Use code GTW695 at checkout and save $800 on first year of a Gold subscription!

Upgrade Subscription

UPGRADE AND SAVE: Use code GUW795 at checkout and save $700 on first year of a Gold subscription! 

Upgrade Subscription - Offer Box

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland25

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

Breakbulk News shipping | Journal of Commerce

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

Project cargo carriers move to shield themselves from US port fee proposal

US-China trade standoff could mean intra-Asia capacity boost for Indian market

Early signs of rising tariff-driven demand emerge on the trans-Atlantic