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<div>Copyright 2004, Traffic World, Inc.Freight is different. You probably already knew that but it appears that government regulators are getting the message.On opposite corners of the globe last month, the freight and logistics business pulled just a bit away from the more pedestrian side of the transport world. Of course, passenger travel is the foundation of much of the transportation infrastructure but the intertwining regulation of the movement of goods and of people also is the source of nasty friction and too often an impediment to improving the efficient flow of commerce.Too often, we believe, the related regulations and interests...

Copyright 2004, Traffic World, Inc. Freight is different. You probably already knew that but it appears that government regulators are getting the message. On opposite corners of the globe last month, the freight and logistics business pulled just a bit away from the more pedestrian side of the transport world. Of course, passenger travel is the foundation of much of the transportation infrastructure but the intertwining regulation of the movement of goods and of people also is the source of nasty friction and too often an impediment to improving the efficient flow of commerce. Too often, we believe, the related regulations and interests breed competition between logistics-related transport and the high-key politics of passenger-related travel, whether in the air or on roads and rails. It''s one reason - one of many, we admit - that U.S. transportation policy as it''s practiced is fractured along modal lines. It''s one reason freight railroads have a testy relationship with the national passenger rail system, piggybacking on Amtrak''s political support for infrastructure improvements while jockeying for position on crowded corridors . The tension is evident in the air, where freighters that fulfill the goals of international trade find themselves with little room to fly while governments jockey for positions for their proud if tattered national flag airlines. It may be most evident on the highway, where the separate worlds of automobiles and truck transport meet in an often tense and too-often fatal standoff. The goods news for truckers - and car drivers, for that matter - is that the authors of the U.S. House version of the highway bill are seriously considering a test of truck-only lanes on certain high-traffic corridors. For truckers and shippers, that''s a high-stakes program, a chance to step forward and prove that they really will pay the freight to operate in a dedicated system largely independent of automobile needs. In Singapore last month, Peter Ong, permanent secretary of the Singapore Ministry of Transport, opened the recent Air Freight Expo and Conference 2004 by announcing the signing of a multilateral "open skies" air services treaty on all-cargo services between Singapore, Thailand and Brunei. The pact allows unlimited all-cargo services between the countries, as well as through and beyond to any third country. And the treaty launched what Singapore calls its "two-plus-X" strategy on trade agreements with fellow members of the Association of South East Asian Nations. "The idea here is that any other country that wishes can sign onto this agreement and get the full benefits," Ong said. "We think this is the better way to go, especially for cargo, which has its own concerns which are separate from passengers." The deal may have an immediate impact on anyone shipping to and from the Far East. The United States has full open skies agreements with Singapore, Brunei and New Zealand and all-cargo open skies pacts with Australia and Thailand, giving American air cargo operators important freedoms to operate across the Pacific and then within the Asia-Pacific region. Michael Reynolds, deputy assistant secretary for aviation and international affairs at the U.S. Department of Transportation, told the same air freight meeting: "The development of extensive all-cargo airline networks ... the creation of cargo hubs and sorting centers in strategic locations around the globe and the creation of highly integrated partnerships between and among cargo air carriers are some of the significant changes (in) the international air cargo industry since liberalization began to take root across the globe." In other words, freight is different.

Vive La Difference

<div class="phx-topic abstract-wrapper">The move effectively allows both sides to avoid having to agree to a deal brokered by Ottawa, as had been ordered by the country’s labor minister. </div>

The move effectively allows both sides to avoid having to agree to a deal brokered by Ottawa, as had been ordered by the country’s labor minister.

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<div class="phx-topic">Maritime employers at the Port of Montreal will try yet again to reach a deal with dockworkers on a new contract with a mediator’s help, heading off a government-brokered deal that aims to end the coast-to-coast strife hitting Canada’s major ports. The Maritime Employers Association (MEA) said in a statement Monday that it and the Canadian Union of Public Employees (CUPE) Local 375 mutually agreed to engage in a 90-day mediation process in a bid to come to terms on <a href="https://www.joc.com/article/canadian-shippers-urge-ottawa-to-act-as-montreal-port-talks-hit-impasse-5241393">a new collective bargaining agreement covering 1,300 longshore workers at the port</a>. The MEA said the process will be led by Gilles Charland, “an experienced mediator with a good knowledge of the industry.” The decision to engage with a mediator comes after <a href="">Labor Minister Steve MacKinnon ordered the MEA to end a lockout of Local 375</a> stemming from <a href="https://www.joc.com/article/bc-montreal-ports-set-to-reopen-under-orders-from-canadas-labor-chief-5792214">its ongoing work stoppages</a>. The mediation process means both sides won’t have to submit to a government-appointed arbitrator, also ordered by MacKinnon. Whether mediation succeeds is far from certain, however. The MEA said last month that it has engaged in 35 mediation meetings with Local 375 since mid-2023, with no resolution Montreal’s port effectively reopened on Nov. 16 following MacKinnon’s back-to-work order. MacKinnon’s order also covered the ports in British Columbia where longshore foremen have been in protracted contract talks with maritime employers over a new contract and work rules following a semi-automation project at a Vancouver-area marine terminal. Local 514 of the International Longshore and Warehouse Union, the foremen’s union, said <a href="https://www.joc.com/article/bc-ports-to-reopen-but-longshore-union-plans-challenge-to-back-to-work-order-5810473">it plans to challenge the constitutionality of MacKinnon’s request</a>. Yet its members also followed the return-to-work order, allowing the ports of Vancouver and Prince Rupert to reopen. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Maritime employers at the Port of Montreal will try yet again to reach a deal with dockworkers on a new contract with a mediator’s help, heading off a government-brokered deal that aims to end the coast-to-coast strife hitting Canada’s major ports. The Maritime Employers Association (MEA) said in a statement Monday that it and the Canadian Union of Public Employees (CUPE) Local 375 mutually agreed to engage in a 90-day mediation process in a bid to come to terms on a new collective bargaining agreement covering 1,300 longshore workers at the port . The MEA said the process will be led by Gilles Charland, “an experienced mediator with a good knowledge of the industry.” The decision to engage with a mediator comes after Labor Minister Steve MacKinnon ordered the MEA to end a lockout of Local 375 stemming from its ongoing work stoppages . The mediation process means both sides won’t have to submit to a government-appointed arbitrator, also ordered by MacKinnon. Whether mediation succeeds is far from certain, however. The MEA said last month that it has engaged in 35 mediation meetings with Local 375 since mid-2023, with no resolution Montreal’s port effectively reopened on Nov. 16 following MacKinnon’s back-to-work order. MacKinnon’s order also covered the ports in British Columbia where longshore foremen have been in protracted contract talks with maritime employers over a new contract and work rules following a semi-automation project at a Vancouver-area marine terminal. Local 514 of the International Longshore and Warehouse Union, the foremen’s union, said it plans to challenge the constitutionality of MacKinnon’s request . Yet its members also followed the return-to-work order, allowing the ports of Vancouver and Prince Rupert to reopen. Contact Michael Angell at michael.angell@spglobal.com

Montreal port employers, union agree to mediation in talks for new contract

<div class="phx-topic abstract-wrapper">The use cases for sensor-enabled container fleets could expand if shipping lines see such hardware as a legitimate tool to combat the threat of illicit goods movement. </div>

The use cases for sensor-enabled container fleets could expand if shipping lines see such hardware as a legitimate tool to combat the threat of illicit goods movement.

<div class="phx-topic">Providers of hardware and software that allow shipping lines to equip dry containers with sensor technology have partnered in a new alliance to combat drug smugglers using container shipping to transport cocaine from South America to Europe and North America. The alliance includes providers Traxens, Nexxiot, Hoopo, Orbcomm and GlobeTracker, all of whom already supply shipping lines with internet of things (IoT) devices installed on dry or reefer containers. “This alliance aims to ensure interoperability of our solutions, enabling stakeholders such as customs, [beneficial cargo owners], and shipping lines to deploy tools immediately in the fight against smuggling and container contamination,” Traxens CEO Cedric Rosemont told the Journal of Commerce. Sensors from Nexxiot and Orbcomm are being implemented in Hapag-Lloyd’s entire dry container fleet, while Zim Integrated Shipping Services has committed to a similar initiative with Hoopo. GlobeTracker has a number of shipping line customers for its reefer tracking hardware and Traxens provides the devices that underpin Mediterranean Shipping Co.’s on-demand service for shippers. The alliance has built upon MSC’s deployment of Traxens’ products to combat illicit trade, Rosemont said. Interoperability between smart container device providers has been a key initiative, especially as different shipping lines partner with various device makers. Another provider, Sony, was chosen by Ocean Network Express (ONE) to equip its entire dry box fleet. In a white paper released this month, the alliance described how containers are increasingly being used to transport cocaine from ports in Colombia, Ecuador, Peru, Chile, Brazil and Panama through key gateways in Europe, often via transshipment in West Africa. The paper also highlighted the different methods and legitimate trades used to hide illegal drugs in containers. The banana trade, for instance, is often used as a vehicle for such illicit shipments. “The goods affected by the contamination are usually the top exports from the relevant countries,” the white paper said. “For example, Ecuador ships 338,000 containers of bananas each year. In 2022, 60% of the seizures made in Ecuadorian ports were made in banana shipments, and 70% of the banana shipments inspected contained cocaine.” The most popular technique, the white paper said, involves traffickers opening a stuffed container by breaking the container seal, throwing bags of cocaine inside and putting a replica seal in place, with port workers often bribed or forced to participate while the container is waiting to be loaded. <h3>‘Full fleet’ coverage </h3>The discussion around more container lines equipping their dry box fleets has largely been centered around the impact of carriers better managing their assets or of serving the needs of shippers with high-value goods. But additional reasons for doing so involve existing security concerns such as smuggling or the threat of future regulations, according to a November report on smart container adoption by the consultant Roland Berger “Certain carriers have invested in a fleet of smart containers to combat drug trafficking, achieving notable success,” the report said. “As governments intensify efforts to combat smuggling and terrorism, it is likely that future regulations, especially in regions with heightened security concerns, will mandate the use of smart containers to ensure the safety and security of goods in transit.” Key to the progression of smart container adoption is a shift that the Berger report described as going from an “equipment-on-demand” model to a “full fleet coverage” model. When the industry reaches a critical mass around dry boxes is a source of debate. The Digital Container Shipping Association (DCSA), a nonprofit consortium founded by shipping lines to develop industry standards, has issued guidelines for interoperable smart container tracking that shipping lines can adopt. The DCSA has also worked with many of the smart container device makers to ensure shippers and forwarders can use their products in an interoperable manner. According to shipping consultant Drewry, almost 5 million dry units will be equipped with telematics by 2028, up from approximately 2 million by the end of 2024. “A single large carrier changing its smart container strategy could significantly impact the numbers,” Ferenc Pasztor, head of ports and specialized shipping research at Drewry, said in the Berger report. “The same is true regarding the physical constraints of installing devices in such high numbers." Rosemont said smart containers have already proved their efficacy in highlighting smuggling rings. “Since 2022, smart containers have been instrumental in seizing over 30 tons of illicit drugs,” he said. “With expanded deployments and increased collaboration across the industry, these results could grow exponentially.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Providers of hardware and software that allow shipping lines to equip dry containers with sensor technology have partnered in a new alliance to combat drug smugglers using container shipping to transport cocaine from South America to Europe and North America. The alliance includes providers Traxens, Nexxiot, Hoopo, Orbcomm and GlobeTracker, all of whom already supply shipping lines with internet of things (IoT) devices installed on dry or reefer containers. “This alliance aims to ensure interoperability of our solutions, enabling stakeholders such as customs, [beneficial cargo owners], and shipping lines to deploy tools immediately in the fight against smuggling and container contamination,” Traxens CEO Cedric Rosemont told the Journal of Commerce. Sensors from Nexxiot and Orbcomm are being implemented in Hapag-Lloyd’s entire dry container fleet, while Zim Integrated Shipping Services has committed to a similar initiative with Hoopo. GlobeTracker has a number of shipping line customers for its reefer tracking hardware and Traxens provides the devices that underpin Mediterranean Shipping Co.’s on-demand service for shippers. The alliance has built upon MSC’s deployment of Traxens’ products to combat illicit trade, Rosemont said. Interoperability between smart container device providers has been a key initiative, especially as different shipping lines partner with various device makers. Another provider, Sony, was chosen by Ocean Network Express (ONE) to equip its entire dry box fleet. In a white paper released this month, the alliance described how containers are increasingly being used to transport cocaine from ports in Colombia, Ecuador, Peru, Chile, Brazil and Panama through key gateways in Europe, often via transshipment in West Africa. The paper also highlighted the different methods and legitimate trades used to hide illegal drugs in containers. The banana trade, for instance, is often used as a vehicle for such illicit shipments. “The goods affected by the contamination are usually the top exports from the relevant countries,” the white paper said. “For example, Ecuador ships 338,000 containers of bananas each year. In 2022, 60% of the seizures made in Ecuadorian ports were made in banana shipments, and 70% of the banana shipments inspected contained cocaine.” The most popular technique, the white paper said, involves traffickers opening a stuffed container by breaking the container seal, throwing bags of cocaine inside and putting a replica seal in place, with port workers often bribed or forced to participate while the container is waiting to be loaded. ‘Full fleet’ coverage The discussion around more container lines equipping their dry box fleets has largely been centered around the impact of carriers better managing their assets or of serving the needs of shippers with high-value goods. But additional reasons for doing so involve existing security concerns such as smuggling or the threat of future regulations, according to a November report on smart container adoption by the consultant Roland Berger “Certain carriers have invested in a fleet of smart containers to combat drug trafficking, achieving notable success,” the report said. “As governments intensify efforts to combat smuggling and terrorism, it is likely that future regulations, especially in regions with heightened security concerns, will mandate the use of smart containers to ensure the safety and security of goods in transit.” Key to the progression of smart container adoption is a shift that the Berger report described as going from an “equipment-on-demand” model to a “full fleet coverage” model. When the industry reaches a critical mass around dry boxes is a source of debate. The Digital Container Shipping Association (DCSA), a nonprofit consortium founded by shipping lines to develop industry standards, has issued guidelines for interoperable smart container tracking that shipping lines can adopt. The DCSA has also worked with many of the smart container device makers to ensure shippers and forwarders can use their products in an interoperable manner. According to shipping consultant Drewry, almost 5 million dry units will be equipped with telematics by 2028, up from approximately 2 million by the end of 2024. “A single large carrier changing its smart container strategy could significantly impact the numbers,” Ferenc Pasztor, head of ports and specialized shipping research at Drewry, said in the Berger report. “The same is true regarding the physical constraints of installing devices in such high numbers." Rosemont said smart containers have already proved their efficacy in highlighting smuggling rings. “Since 2022, smart containers have been instrumental in seizing over 30 tons of illicit drugs,” he said. “With expanded deployments and increased collaboration across the industry, these results could grow exponentially.” Contact Eric Johnson at eric.johnson@spglobal.com .

Smart container vendors create alliance to tackle drug smuggling threat

<div class="phx-topic abstract-wrapper">The $390 million deal for Cowan will boost Schneider’s dedicated trucking segment to 8,400 tractors, representing 70% of its total fleet.</div>

The $390 million deal for Cowan will boost Schneider’s dedicated trucking segment to 8,400 tractors, representing 70% of its total fleet.

<div class="phx-topic">Schneider National said Monday it will acquire Cowan Systems for $390 million in cash, cementing its foothold among shippers with distribution centers along the Interstate 95 corridor on the US East Coast. It’s Schneider’s third deal since 2022 to bolster its dedicated truckload business. Wisconsin-based Schneider will now own 8,400 tractors in dedicated trucking, representing 70% of the company’s total fleet. “This acquisition aligns with Schneider’s long-term vision to have customer-centric dedicated solutions as the cornerstone of its truckload segment,” CEO Mark Rourke said in a statement. “By complementing our organic dedicated growth success with transactions like this, we are broadening our presence to provide greater value to our customers.” The deal catapults Schneider closer to the largest dedicated carriers in the US, consisting of J.B. Hunt Transport Systems, Knight-Swift Transportation Holdings, Landstar System, Ryder Supply Chain, Penske Logistics and Werner Enterprises. Schneider has made other transactions to bolster its dedicated division, acquiring <a href="https://www.joc.com/article/acquisition-expands-schneiders-dedicated-truck-capacity-5196056">Midwest Logistics in 2022</a> and <a href="https://www.joc.com/article/schneider-goes-deeper-into-dedicated-trucking-with-mm-acquisition-5234490">M&amp;M Transport in 2023</a>. <h3>Lure of dedicated trucking </h3>Many trucking companies believe <a href="https://www.joc.com/article/us-truckload-carriers-see-upside-in-sharpened-focus-on-dedicated-shippers-5214830">dedicated trucking is attractive</a> because it can grow quickly when shippers struggle to book for-hire trucking, providing a safety net to guarantee a truck and a driver. Dedicated truckload contracts also tend to be at least three-year deals, getting carriers and shippers out of the arduous process of launching, responding and administering annual bids. There is also lower turnover in dedicated trucking because a driver tends to cover the same route week after week while serving the same shipper over and over, bringing familiarity at the dock. Schneider said Cowan will retain its name and operate as a wholly owned subsidiary. Cowan’s dedicated trucking business will likely be integrated into the Schneider Dedicated unit, while Cowan Logistics will likely integrate with Schneider Logistics. Cowan also has a port drayage division consisting mainly of agents and owner-operators serving the Port of Baltimore and the Port of New York and New Jersey. That business will likely integrate with Schneider’s port drayage services division. Schneider said the deal is expected to close before the end of the year and immediately contribute to its quarterly profits. The Cowan name is familiar to many shippers on the East Coast. Located near Baltimore, the company was founded in 1924 by William T. Cowan, hauling less-than truckload (LTL) freight in the Mid-Atlantic region. His son, Joe Cowan, rebranded the company from W.T. Cowan to Cowan Systems in 1994. Since then, it has grown to be one of the largest freight transportation and logistics companies on the East Coast. Cowan’s dedicated division serves industrial and retail shippers in major Northeast distribution markets such as the Lehigh Valley in Pennsylvania and the I-95 corridor in New Jersey. Schneider was also family-owned, founded by the late Al and Don Schneider in 1935 before becoming a publicly traded company in 2017. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

Schneider National said Monday it will acquire Cowan Systems for $390 million in cash, cementing its foothold among shippers with distribution centers along the Interstate 95 corridor on the US East Coast. It’s Schneider’s third deal since 2022 to bolster its dedicated truckload business. Wisconsin-based Schneider will now own 8,400 tractors in dedicated trucking, representing 70% of the company’s total fleet. “This acquisition aligns with Schneider’s long-term vision to have customer-centric dedicated solutions as the cornerstone of its truckload segment,” CEO Mark Rourke said in a statement. “By complementing our organic dedicated growth success with transactions like this, we are broadening our presence to provide greater value to our customers.” The deal catapults Schneider closer to the largest dedicated carriers in the US, consisting of J.B. Hunt Transport Systems, Knight-Swift Transportation Holdings, Landstar System, Ryder Supply Chain, Penske Logistics and Werner Enterprises. Schneider has made other transactions to bolster its dedicated division, acquiring Midwest Logistics in 2022 and M&M Transport in 2023 . Lure of dedicated trucking Many trucking companies believe dedicated trucking is attractive because it can grow quickly when shippers struggle to book for-hire trucking, providing a safety net to guarantee a truck and a driver. Dedicated truckload contracts also tend to be at least three-year deals, getting carriers and shippers out of the arduous process of launching, responding and administering annual bids. There is also lower turnover in dedicated trucking because a driver tends to cover the same route week after week while serving the same shipper over and over, bringing familiarity at the dock. Schneider said Cowan will retain its name and operate as a wholly owned subsidiary. Cowan’s dedicated trucking business will likely be integrated into the Schneider Dedicated unit, while Cowan Logistics will likely integrate with Schneider Logistics. Cowan also has a port drayage division consisting mainly of agents and owner-operators serving the Port of Baltimore and the Port of New York and New Jersey. That business will likely integrate with Schneider’s port drayage services division. Schneider said the deal is expected to close before the end of the year and immediately contribute to its quarterly profits. The Cowan name is familiar to many shippers on the East Coast. Located near Baltimore, the company was founded in 1924 by William T. Cowan, hauling less-than truckload (LTL) freight in the Mid-Atlantic region. His son, Joe Cowan, rebranded the company from W.T. Cowan to Cowan Systems in 1994. Since then, it has grown to be one of the largest freight transportation and logistics companies on the East Coast. Cowan’s dedicated division serves industrial and retail shippers in major Northeast distribution markets such as the Lehigh Valley in Pennsylvania and the I-95 corridor in New Jersey. Schneider was also family-owned, founded by the late Al and Don Schneider in 1935 before becoming a publicly traded company in 2017. Contact Ari Ashe at ari.ashe@spglobal.com

Schneider bolsters US East Coast business by acquiring Cowan Systems

<div class="phx-topic abstract-wrapper">A decline in sales of high-and-heavy equipment for the bellwether roll-on/roll-off cargo providers will reduce demand for breakbulk carriers.</div>

A decline in sales of high-and-heavy equipment for the bellwether roll-on/roll-off cargo providers will reduce demand for breakbulk carriers.

<div class="phx-topic">Rough market conditions are grinding down the performance of heavy equipment manufacturers Deere and Caterpillar, with Deere announcing plans to pull back its production in North America for the first quarter of 2025. Considered bellwether roll-on/roll-off (ro/ro) cargo providers and breakbulk shippers, both of the high-and-heavy manufacturers posted lagging results in their latest quarterly earnings amid a convergence of challenging market conditions. Illinois-based Deere &amp; Company, which produces heavy machinery for farming and construction, reported a decline in sales for all its equipment types. “Lingering headwinds include depressed yields from unfavorable weather, reduced regional commodity prices, and persistently elevated input costs,” investor communications manager Josh Rohleder said during the company’s Nov. 21 earnings call. “The confluence of these issues, coupled with high interest rates, are expected to keep industry equipment demand at low levels throughout 2025.” Citing the softening demand for equipment, Deere investor relations director Josh Beal said the company will shut down earthmoving production lines at its North American factories for about half of total production days in the first quarter of 2025. The move comes after the company in the fourth quarter pulled back production and shipping at its factories worldwide. Year-over-year fiscal fourth-quarter net income for Deere fell 47% to $1.2 billion. For the full fiscal year, net income declined 30% to $7.1 billion. Deere is forecasting further declines for the coming year, projecting $5 billion to $5.5 billion in net income in 2025. <h3>Energy props up Caterpillar </h3>Equipment orders to support the energy sector helped offset lower demand for construction machinery for Texas-based Caterpillar, according to the company’s latest quarterly report. Caterpillar’s third-quarter order backlog increased 2% to $28.7 billion year over year, driven by what CEO Jim Umpleby described as a “quite robust” increase in the company’s energy and transportation sector, offsetting a decrease in the backlog for construction machinery. For the second consecutive quarter, Caterpillar adjusted its full-year outlook to be “slightly lower” than its 2023 sales and revenues of $67.1 billion. The adjustment came as Caterpillar reported a 4% decline in its overall Q3 sales, while revenues fell to $16.1 billion because of lower demand for construction and mining equipment, which accounts for over half of the company’s business. Energy and transportation equipment needs helped offset those declines, specifically because of orders for solar turbines for oil and gas reciprocating engines, as well as for power generation equipment for the burgeoning data center market. Caterpillar’s decline in construction equipment business comes three years after President Joe Biden’s 2021 Infrastructure Investment and Jobs Act (IIJA) took effect and helped fuel demand for construction equipment right as pandemic-stalled projects were resuming. Umpleby pointed out in the earnings call that about half of the IIJA funds remain uncommitted. “So, there’s a lot of infrastructure activity out there that our dealers are working with their customers to help support,” he said. Although the election of Donald Trump has introduced some uncertainty to federal infrastructure spending, Trump’s incoming administration is expected to lift Biden’s pause on permits for US liquefied natural gas (LNG) projects that rely on heavy equipment from companies such as Caterpillar. “If that permitting process starts again, I would think certainly medium, long-term that would be a positive for us,” Umpleby said. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

Rough market conditions are grinding down the performance of heavy equipment manufacturers Deere and Caterpillar, with Deere announcing plans to pull back its production in North America for the first quarter of 2025. Considered bellwether roll-on/roll-off (ro/ro) cargo providers and breakbulk shippers, both of the high-and-heavy manufacturers posted lagging results in their latest quarterly earnings amid a convergence of challenging market conditions. Illinois-based Deere & Company, which produces heavy machinery for farming and construction, reported a decline in sales for all its equipment types. “Lingering headwinds include depressed yields from unfavorable weather, reduced regional commodity prices, and persistently elevated input costs,” investor communications manager Josh Rohleder said during the company’s Nov. 21 earnings call. “The confluence of these issues, coupled with high interest rates, are expected to keep industry equipment demand at low levels throughout 2025.” Citing the softening demand for equipment, Deere investor relations director Josh Beal said the company will shut down earthmoving production lines at its North American factories for about half of total production days in the first quarter of 2025. The move comes after the company in the fourth quarter pulled back production and shipping at its factories worldwide. Year-over-year fiscal fourth-quarter net income for Deere fell 47% to $1.2 billion. For the full fiscal year, net income declined 30% to $7.1 billion. Deere is forecasting further declines for the coming year, projecting $5 billion to $5.5 billion in net income in 2025. Energy props up Caterpillar Equipment orders to support the energy sector helped offset lower demand for construction machinery for Texas-based Caterpillar, according to the company’s latest quarterly report. Caterpillar’s third-quarter order backlog increased 2% to $28.7 billion year over year, driven by what CEO Jim Umpleby described as a “quite robust” increase in the company’s energy and transportation sector, offsetting a decrease in the backlog for construction machinery. For the second consecutive quarter, Caterpillar adjusted its full-year outlook to be “slightly lower” than its 2023 sales and revenues of $67.1 billion. The adjustment came as Caterpillar reported a 4% decline in its overall Q3 sales, while revenues fell to $16.1 billion because of lower demand for construction and mining equipment, which accounts for over half of the company’s business. Energy and transportation equipment needs helped offset those declines, specifically because of orders for solar turbines for oil and gas reciprocating engines, as well as for power generation equipment for the burgeoning data center market. Caterpillar’s decline in construction equipment business comes three years after President Joe Biden’s 2021 Infrastructure Investment and Jobs Act (IIJA) took effect and helped fuel demand for construction equipment right as pandemic-stalled projects were resuming. Umpleby pointed out in the earnings call that about half of the IIJA funds remain uncommitted. “So, there’s a lot of infrastructure activity out there that our dealers are working with their customers to help support,” he said. Although the election of Donald Trump has introduced some uncertainty to federal infrastructure spending, Trump’s incoming administration is expected to lift Biden’s pause on permits for US liquefied natural gas (LNG) projects that rely on heavy equipment from companies such as Caterpillar. “If that permitting process starts again, I would think certainly medium, long-term that would be a positive for us,” Umpleby said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Heavy equipment production slowdown to hit ro/ro trade as demand softens

<div class="phx-topic abstract-wrapper">The acquisition of a majority stake in Roadrunner by an investment group sets the stage for further growth at the carrier as the LTL sector readies for expansion in 2025. </div>

The acquisition of a majority stake in Roadrunner by an investment group sets the stage for further growth at the carrier as the LTL sector readies for expansion in 2025.

<div class="phx-topic">An investor group led by CEO Chris Jamroz is acquiring a majority stake in less-than-truckload (LTL) carrier Roadrunner. The deal, announced Friday, sets the stage for further organic growth and acquisitions by the direct point-to-point LTL trucking company at a time when the US LTL sector is preparing for expansion, building out networks <a href="https://www.joc.com/article/us-ltl-carriers-laying-groundwork-for-higher-pricing-in-2025-5822094">and raising rates</a>. The deal between Prospero Staff Capital, owned by Jamroz and partner Ted Kellner, a long-time investor in Roadrunner, leaves Elliott Investment Management with a minority stake in the Illinois-based company. Terms of the transaction were not disclosed. “After comprehensively unwinding the prior management’s roll-up strategy to get to a pure-play LTL network, Roadrunner now stands as a premium long-haul carrier,” Jamroz said in a statement. “Today marks the beginning of our growth phase, driven by new capital, strategic investments and acquisitions.” Activist investor Elliott acquired a majority stake in Roadrunner through a <a href="https://www.joc.com/article/roadrunner-gets-540-million-infusion-new-leadership-5195821">$540 million investment</a> in 2017. Jamroz joined the company in 2019; Prospero is part of his investment company, LyonIX Holdings. Roadrunner is the 20th-largest LTL provider in the US and Canada, with about $410 million in revenue in 2023, according to SJ Consulting Group data. Merger activity is picking up speed <a href="https://www.joc.com/article/smaller-us-ltl-carriers-increasingly-merging-in-sink-or-swim-market-5783875">among smaller LTL carriers</a>, which could provide several targets for Roadrunner in markets where it wants to grow. The US LTL sector as a whole is in the midst of a growth phase kicked off by the exit of Yellow, then the third-largest LTL provider, from the market in July 2023. That sharply reduced LTL capacity, which enabled carriers to raise pricing despite tepid freight demand. Yellow’s collapse also launched an ongoing land rush as LTL carriers battle for terminals. Yellow is <a href="https://www.joc.com/article/yellow-puts-remaining-112-ltl-terminals-on-the-block-5737425">preparing to sell</a> its remaining 112 terminals, including some of its largest sites, in a move that will release pent-up LTL capacity. Roadrunner played a small part in that land rush, rebuilding a terminal formerly leased by Yellow in Atlanta as a new regional hub. Roadrunner has put more focus on reducing transit times in hundreds of lanes to meet shipper demand for faster service. In October, the company accelerated shipments in more than 200 lanes and opened more than 40 new lanes. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

An investor group led by CEO Chris Jamroz is acquiring a majority stake in less-than-truckload (LTL) carrier Roadrunner. The deal, announced Friday, sets the stage for further organic growth and acquisitions by the direct point-to-point LTL trucking company at a time when the US LTL sector is preparing for expansion, building out networks and raising rates . The deal between Prospero Staff Capital, owned by Jamroz and partner Ted Kellner, a long-time investor in Roadrunner, leaves Elliott Investment Management with a minority stake in the Illinois-based company. Terms of the transaction were not disclosed. “After comprehensively unwinding the prior management’s roll-up strategy to get to a pure-play LTL network, Roadrunner now stands as a premium long-haul carrier,” Jamroz said in a statement. “Today marks the beginning of our growth phase, driven by new capital, strategic investments and acquisitions.” Activist investor Elliott acquired a majority stake in Roadrunner through a $540 million investment in 2017. Jamroz joined the company in 2019; Prospero is part of his investment company, LyonIX Holdings. Roadrunner is the 20th-largest LTL provider in the US and Canada, with about $410 million in revenue in 2023, according to SJ Consulting Group data. Merger activity is picking up speed among smaller LTL carriers , which could provide several targets for Roadrunner in markets where it wants to grow. The US LTL sector as a whole is in the midst of a growth phase kicked off by the exit of Yellow, then the third-largest LTL provider, from the market in July 2023. That sharply reduced LTL capacity, which enabled carriers to raise pricing despite tepid freight demand. Yellow’s collapse also launched an ongoing land rush as LTL carriers battle for terminals. Yellow is preparing to sell its remaining 112 terminals, including some of its largest sites, in a move that will release pent-up LTL capacity. Roadrunner played a small part in that land rush, rebuilding a terminal formerly leased by Yellow in Atlanta as a new regional hub. Roadrunner has put more focus on reducing transit times in hundreds of lanes to meet shipper demand for faster service. In October, the company accelerated shipments in more than 200 lanes and opened more than 40 new lanes. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Investors plan to expand US LTL carrier Roadrunner after takeover

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

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Shippers save money, time with automated transportation bidding tools

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

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SSA Marine Mexico Modernizes Facilities with $15 Million Investment 

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

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