<div class="phx-topic abstract-wrapper">The network wars continue to heat up. International Business Machines Corp. has fired the la</div>

The network wars continue to heat up. International Business Machines Corp. has fired the la

<div>The network wars continue to heat up.International Business Machines Corp. has fired the latest salvos in the increasingly heated combat between the companies that are in the business of acting as electronic post offices, as they translate, transport and store electronic data interchange messages.IBM is repackaging and pricing some of its offerings and adding several more products. The company is marketing its new offerings under the name of the IBM expEDIte DataInterchange Series.Though a giant in the computer manufacturing business, IBM is a relative newcomer to the world of EDI networks. Its competitors claimed they were not concerned about the...

The network wars continue to heat up. International Business Machines Corp. has fired the latest salvos in the increasingly heated combat between the companies that are in the business of acting as electronic post offices, as they translate, transport and store electronic data interchange messages.IBM is repackaging and pricing some of its offerings and adding several more products. The company is marketing its new offerings under the name of the IBM expEDIte DataInterchange Series. Though a giant in the computer manufacturing business, IBM is a relative newcomer to the world of EDI networks. Its competitors claimed they were not concerned about the big company's plans. "It looks like catch up," said David Dodge, director of network sales, Ordernet Services, a subsidiary of Sterling Software, Columbus, Ohio. More than anything else, the move is a vote of confidence in the technology of EDI, Mr. Dodge said. "IBM's announcement merely confirms everybody's belief that EDI is a good business opportunity," he said. Nor was IBM's move unexpected by its competitors. "It was just a matter of time (before IBM would do this)," agreed Jim Bert, vice president of sales and marketing, ACS Network Systems, Concord, Calif., a maker of translation software for IBM computers. With its new product introduction, IBM has made a full-scale entry into the business of translating electronic data interchange messages from one standard to another. EDI is a technology where strictly standardized messages replace paper documents. Typical EDI documents are purchase orders, invoices and order acknowledgements. Many software vendors specialize in specific types of computers: mini, personal computer or mainframe. IBM's offerings will cover the full spectrum of machines. Sales of translation software and services is one of the most important profit-making areas in EDI. An increasing number of companies are in the business. Much software already is offered for IBM-brand and compatible computers. These translators convert an electronic document created on a company's computer into standard EDI data formats. Currently, IBM's only available translator package is its mainframe version. It costs from $14,750 to $38,000, with a $2,050 to $5,200 annual license fee. Packages for its minicomputer products - the system 400, 36 and 38 - will be available in the third quarter. Prices will range from $6,600 to $18,000. A package for the IBM Personal Series 2 personal computer won't be ready until next year. It will cost $4,000. The IBM expEDIte DataInterchange products support American National Standards Institute X.12 standards for use in the United States. They also support United Nations Edifact standards for international use. IBM also said that Uniform Communications Standards and Transportation Data Coordinating Committee standards for domestic use are supported in its minicomputer translators. It intends to support these latter standards in its personal computer and mainframe versions in the future. IBM runs a telecommunications network for EDI transmissions called IBM Information Network. Along with the software products, the company has announced consulting and educational services for companies implementing EDI. Mr. Bert said he saw no big competitive threat from the move by the larger company. "We won't see a big impact," he said.

IBM INTRODUCES SOFTWARE PACKAGE FOR EDI TRANSLATION

<div class="phx-topic abstract-wrapper">GenLogs, founded by an ex-counterterrorism expert, is offering shippers and brokers a way to track lost trailers and trucks as cargo theft in the US booms. </div>

GenLogs, founded by an ex-counterterrorism expert, is offering shippers and brokers a way to track lost trailers and trucks as cargo theft in the US booms.

Feature image

<div class="phx-topic">A software vendor in the US truckload industry that provides sales and compliance products to freight brokers and carriers on Wednesday said it is offering a free tracking service to combat cargo theft. The company, Virginia-based GenLogs, said shippers, brokers and carriers can use GenLogs’ growing network of roadside cameras to help locate a missing asset. The company’s core product is designed to help carriers and freight brokers improve their ability to source capacity, find shipper business and vet carriers. As part of the vetting process, the company helps customers manage carrier compliance. GenLogs CEO Ryan Joyce told the Journal of Commerce that the company is currently helping its customers recover roughly 25 assets per week. Those assets include trailers, flatbeds and even entire trucks. “It’s a low lift for us to add a new asset on our alert system,” he said of the new free service for non-customers. North American cargo theft rose nearly 50% year over year in the first half of 2024, according to Overhaul, a global supply chain risk management and intelligence firm. Shippers, carriers or brokers can access the service by sending an identifier – such as a trailer number – by email to GenLogs’ investigation team (investigations@genlogs.io) or through the company’s “Find My Asset” page on its website. GenLogs will investigate its last known location and set an alert to track it, Joyce said. ”Our goal is to remove the bad actors from the industry so that all the good guys can flourish,” Joyce said. GenLogs operates a nationwide network of roadside sensors that passively collect data on every passing truck and equipment pairing. The static sensors, on the sides of interstates, filter out private vehicles and only collect data on vehicles, not drivers, Joyce added. He said the company plans to have its sensors established every one hundred miles on every interstate nationwide in 2025 so that every long-haul shipment is visible at least twice along its journey. Joyce, who had a career in government counterintelligence before founding GenLogs, said the company is taking a similar approach to root out cargo theft. “Our goal is not to merely disrupt criminal networks, but rather completely dismantle them,” he said. Contact Eric Johnson at eric.johnson@spglobal.com. </div>

A software vendor in the US truckload industry that provides sales and compliance products to freight brokers and carriers on Wednesday said it is offering a free tracking service to combat cargo theft. The company, Virginia-based GenLogs, said shippers, brokers and carriers can use GenLogs’ growing network of roadside cameras to help locate a missing asset. The company’s core product is designed to help carriers and freight brokers improve their ability to source capacity, find shipper business and vet carriers. As part of the vetting process, the company helps customers manage carrier compliance. GenLogs CEO Ryan Joyce told the Journal of Commerce that the company is currently helping its customers recover roughly 25 assets per week. Those assets include trailers, flatbeds and even entire trucks. “It’s a low lift for us to add a new asset on our alert system,” he said of the new free service for non-customers. North American cargo theft rose nearly 50% year over year in the first half of 2024, according to Overhaul, a global supply chain risk management and intelligence firm. Shippers, carriers or brokers can access the service by sending an identifier – such as a trailer number – by email to GenLogs’ investigation team (investigations@genlogs.io) or through the company’s “Find My Asset” page on its website. GenLogs will investigate its last known location and set an alert to track it, Joyce said. ”Our goal is to remove the bad actors from the industry so that all the good guys can flourish,” Joyce said. GenLogs operates a nationwide network of roadside sensors that passively collect data on every passing truck and equipment pairing. The static sensors, on the sides of interstates, filter out private vehicles and only collect data on vehicles, not drivers, Joyce added. He said the company plans to have its sensors established every one hundred miles on every interstate nationwide in 2025 so that every long-haul shipment is visible at least twice along its journey. Joyce, who had a career in government counterintelligence before founding GenLogs, said the company is taking a similar approach to root out cargo theft. “Our goal is not to merely disrupt criminal networks, but rather completely dismantle them,” he said. Contact Eric Johnson at eric.johnson@spglobal.com.

Logistics Technology News

Truck brokers

Truckload

Startup technology vendor takes aim at cargo theft with free tracking service

<div class="phx-topic abstract-wrapper">The company has the largest ground transportation fleet in Asia, with more than 86,000 trucks and 100,000 first- and last-mile delivery vehicles. </div>

The company has the largest ground transportation fleet in Asia, with more than 86,000 trucks and 100,000 first- and last-mile delivery vehicles.

<div class="phx-topic">SF Holdings, China's largest express and integrated logistics company, launched an initial public offering in Hong Kong Tuesday that seeks to raise up to $793 million to finance organic growth and third-party investment. Fund manager Oaktree Capital Management, merchant bank Morgan Stanley International and smart phone maker Xiaomi are among the 10 cornerstone investors that have signed up to $200 million worth of shares. SF Holdings, seen as China's equivalent of FedEx, has earmarked about 45%, or $357 million, of the net proceeds for international growth. That includes $290 million for expansion in Southeast Asia and investment activities including buyouts and joint ventures, plus $36 million to enlarge its airfreight network and upgrade warehouse and logistics facilities in North America and Europe. A further $255 million will be used to strengthen and optimize its logistics network in China. That comes as SF is keen to build on the regional footprint it gained in Asia when it <a href="https://www.joc.com/article/sf-holdings-extends-trans-pacific-reach-with-kerry-logistics-stake-5250759">acquired a majority stake in Hong Kong’s Kerry Logistics in 2021</a>. SF, which is already listed in Shenzhen, has a fleet of 99 cargo aircraft that accounted for 32% of China’s air cargo capacity in the first half of this year, according to US consulting firm Frost &amp; Sullivan. It also has the largest ground transportation fleet in Asia with more than 86,000 trucks and 100,000 first- and last-mile delivery vehicles. The company reported a 15% increase in net profit, to $665 million, in the first six months of the year. The public share offer closes on Nov. 22, with trading in the shares expected on Nov. 27. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

SF Holdings, China's largest express and integrated logistics company, launched an initial public offering in Hong Kong Tuesday that seeks to raise up to $793 million to finance organic growth and third-party investment. Fund manager Oaktree Capital Management, merchant bank Morgan Stanley International and smart phone maker Xiaomi are among the 10 cornerstone investors that have signed up to $200 million worth of shares. SF Holdings, seen as China's equivalent of FedEx, has earmarked about 45%, or $357 million, of the net proceeds for international growth. That includes $290 million for expansion in Southeast Asia and investment activities including buyouts and joint ventures, plus $36 million to enlarge its airfreight network and upgrade warehouse and logistics facilities in North America and Europe. A further $255 million will be used to strengthen and optimize its logistics network in China. That comes as SF is keen to build on the regional footprint it gained in Asia when it acquired a majority stake in Hong Kong’s Kerry Logistics in 2021 . SF, which is already listed in Shenzhen, has a fleet of 99 cargo aircraft that accounted for 32% of China’s air cargo capacity in the first half of this year, according to US consulting firm Frost & Sullivan. It also has the largest ground transportation fleet in Asia with more than 86,000 trucks and 100,000 first- and last-mile delivery vehicles. The company reported a 15% increase in net profit, to $665 million, in the first six months of the year. The public share offer closes on Nov. 22, with trading in the shares expected on Nov. 27. Contact Keith Wallis at keithwallis@hotmail.com .

Surface

Air Cargo

Supply chain

China logistics giant SF Holding launches $793 million Hong Kong IPO

<div class="phx-topic abstract-wrapper">Sean Duffy is the incoming administration’s pick for transportation secretary, with much of his prior legislative focus on issues related to trucking. </div>

Sean Duffy is the incoming administration’s pick for transportation secretary, with much of his prior legislative focus on issues related to trucking.

<div class="phx-topic">The incoming Trump administration has announced former congressman and television host Sean Duffy as its pick for Secretary of Transportation. Duffy, during his nine years in Congress, showed an interest in issues affecting the trucking industry while taking aim at traffic delays caused by railroads. President-elect Donald Trump revealed the nomination late Monday, saying that Duffy, 53, “will prioritize excellence, competence, competitiveness and beauty when rebuilding America’s highways, tunnels, bridges and airports.” “He will ensure our ports and dams serve our economy without compromising our national security,” Trump added in a statement. Duffy represented Wisconsin in Congress from 2011 to 2019. After he resigned, he worked as a host on Fox Business. Duffy introduced two bills directly related to transportation in 2015, neither of which advanced. One bill aimed to reduce Department of Transportation (DOT) highway limitations on logging trucks. Another bill would have allowed the DOT to levy a $10,000 per hour civil penalty on railroad carriers when a shift change blocks traffic at a vehicle crossing. He also co-sponsored legislation that would have waived hours-of-service requirements for railroad workers when they have to clear trains blocking traffic. Duffy co-sponsored legislation that would have set up apprentice programs for truck drivers under age 21 and supported a bill that would have delayed the 2018 implementation of electronic logging devices across the trucking industry as well as another that would have given motor carriers more leeway in drug testing for drivers. Duffy also supported the FAST Act, which then-President Barack Obama signed into law in 2016. It reauthorized a gasoline tax and added other user fees to pay for maintenance on the nation’s roads. The American Trucking Associations said in a statement Monday that Duffy “was focused on issues facing our industry and supported pro-trucking policies to strengthen the supply and our ability to keep the nation’s goods moving safely and efficiently.” On the maritime front, Duffy co-sponsored bills that would have required the Harbor Maintenance Trust Fund, which provides funds for maintenance dredging at ports, to spend the entirety of its tax receipts in each fiscal year. He also supported the Maritime Border Security Review Act, which would require the Department of Homeland Security to report on what measures ports need to undertake to reduce flows of illegal drugs and other criminal activity. In his final term in Congress, Duffy also sponsored legislation that would have given then-President Trump more power to impose reciprocal tariffs on international trading partners. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>.</div>

The incoming Trump administration has announced former congressman and television host Sean Duffy as its pick for Secretary of Transportation. Duffy, during his nine years in Congress, showed an interest in issues affecting the trucking industry while taking aim at traffic delays caused by railroads. President-elect Donald Trump revealed the nomination late Monday, saying that Duffy, 53, “will prioritize excellence, competence, competitiveness and beauty when rebuilding America’s highways, tunnels, bridges and airports.” “He will ensure our ports and dams serve our economy without compromising our national security,” Trump added in a statement. Duffy represented Wisconsin in Congress from 2011 to 2019. After he resigned, he worked as a host on Fox Business. Duffy introduced two bills directly related to transportation in 2015, neither of which advanced. One bill aimed to reduce Department of Transportation (DOT) highway limitations on logging trucks. Another bill would have allowed the DOT to levy a $10,000 per hour civil penalty on railroad carriers when a shift change blocks traffic at a vehicle crossing. He also co-sponsored legislation that would have waived hours-of-service requirements for railroad workers when they have to clear trains blocking traffic. Duffy co-sponsored legislation that would have set up apprentice programs for truck drivers under age 21 and supported a bill that would have delayed the 2018 implementation of electronic logging devices across the trucking industry as well as another that would have given motor carriers more leeway in drug testing for drivers. Duffy also supported the FAST Act, which then-President Barack Obama signed into law in 2016. It reauthorized a gasoline tax and added other user fees to pay for maintenance on the nation’s roads. The American Trucking Associations said in a statement Monday that Duffy “was focused on issues facing our industry and supported pro-trucking policies to strengthen the supply and our ability to keep the nation’s goods moving safely and efficiently.” On the maritime front, Duffy co-sponsored bills that would have required the Harbor Maintenance Trust Fund, which provides funds for maintenance dredging at ports, to spend the entirety of its tax receipts in each fiscal year. He also supported the Maritime Border Security Review Act, which would require the Department of Homeland Security to report on what measures ports need to undertake to reduce flows of illegal drugs and other criminal activity. In his final term in Congress, Duffy also sponsored legislation that would have given then-President Trump more power to impose reciprocal tariffs on international trading partners. Contact Michael Angell at michael.angell@spglobal.com .

Trucking News

Transport, Trade and Regulation News

Former congressman, TV host gets Trump’s nod to lead DOT

<div class="phx-topic abstract-wrapper">The new charges apply to both spot market business originating in Southern California and to contractual agreements when weekly limits are surpassed by shippers using rail-owned containers.</div>

The new charges apply to both spot market business originating in Southern California and to contractual agreements when weekly limits are surpassed by shippers using rail-owned containers.

<div class="phx-topic">Union Pacific Railroad (UP) has again increased surcharges on shippers exceeding their weekly allotments in Southern California as domestic intermodal volumes show no signs of the seasonal slowdown typically seen by mid-November. Low-volume shippers will now face a surcharge of $850 per container above their peak season allotment, up from $750, UP said Monday. High-volume shippers will see their surcharges double to $600 per container. It’s the third time UP has increased surcharges on small shippers since August and the second boost for large shippers. The new charges apply both to spot market business originating in Southern California and to contractual agreements when weekly limits are surpassed on rail-owned containers. UP partners Hub Group, Schneider National, STG Logistics and Swift Intermodal control pricing on their privately-owned boxes. Raising surcharges is meant to discourage one-off business from occupying containers that otherwise would be used by long-term customers, notably parcel giant UPS with the holiday shopping season about to ramp up. Class I railroads are facing the challenge of an <a href="https://www.joc.com/article/strong-imports-low-blanks-extend-peak-season-on-eastbound-trans-pacific-5782101">elongated peak season</a> for ocean and domestic freight, which has put significant pressure on North American intermodal networks. Intermodal marketing companies (IMCs) are experiencing difficulties in getting containers into terminals, onto trains, and to inland destinations with consistent transit times. Volume has been a factor in the service disruptions in international and domestic rail, including higher dwell times, more railcars idling and additional trains being held up compared with a year ago. “Union Pacific’s strategic intermodal investments are enabling us to capture the largest peak season volume increase in five years while maintaining fluidity across the network,” UP said in a statement to the Journal of Commerce. “Los Angeles to Chicago domestic intermodal is experiencing double-digit growth, including setting a volume record last week.” UP and competitor BNSF Railway hauled 1.5 million domestic containers out of the Southwest US between January and October, according to the Intermodal Association of North America (IANA), up 8.4% compared with a year ago and a new record high for the period. The Southwest region includes the ports of Los Angeles and Long Beach, the busiest US gateway. October also set monthly volume records for Southwest originations to the Midwest, Southeast and south-central US, according to IANA. Rails hauled 82,381 domestic containers from the Southwest to Midwest, the first ever monthly total exceeding 80,000, putting pressure on service from Los Angeles to Chicago, Cincinnati, Cleveland and Columbus. The Journal of Commerce estimates that rails hauled nearly 50,000 domestic containers from Los Angeles to Chicago in October, up more than 20% compared with a year ago. UP reported that international intermodal volume in Southern California jumped 30% year over year in the third quarter, further challenging network fluidity in Los Angeles and Long Beach. <h3>Service metrics show worst is over </h3>Despite recent improvement, UP and BNSF service was inconsistent between September and mid-October. After UP reported that an average of 58 loaded intermodal railcars idled for more than 48 hours per week between January and August, that rose to 139 railcars in September and then jumped to 231.5 in the first half of October, surpassing levels seen during the pandemic surge. However, in the past four weeks, UP’s average has dropped to 131.3 railcars per week, according to data from the US Surface Transportation Board. BNSF reported a similar trend. Both western US railroads also reported slower train speeds and an increase in the number of delayed intermodal trains during September and early October before the metrics improved in the last four weeks. Despite those service gains, some IMC partners remain concerned. Two IMC executives who did not want to be identified said ongoing service issues on UP’s network are a threat to the ability of their companies to retain current customers and attract new ones. “It’s better than it was a month ago, but service is still not where it needs to be, and with UPS ramping up holiday shipments, that’s not helping things,” said one executive. “The problem is inside the terminals. They’ve got terminal issues in Los Angeles, in Houston, in Memphis. I understand service challenges arise with record volumes. But two-week transit times from Los Angeles to Houston, or San Antonio? How do I explain that to our customers?” A second IMC executive shared similar frustrations, especially when attempting to convert truckload freight to rail in Southern California. “When we have that opportunity in hand for a truck conversion, we can save the shipper money, and we’ve finally convinced the shipper to try the intermodal product, it’s disheartening when it’s not a positive experience, leaving a poor first impression,” the source said. “I recently explained to a new customer that shipping early in the week was the best way to get cargo onto the train. But if you think about it, they could just say, ‘Well, I’m just going to put it on a truck, and I don’t have to worry about anything.’” UP, for its part, acknowledges that there have been “episodic” events that have caused service disruptions in recent weeks, but says it’s the result of IMCs winning new business and taking market share off the highways, thus showing the strength of intermodal. With fluidity returning to its network, UP also said it believes shippers moving freight off the highways will have a better experience going forward. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Union Pacific Railroad (UP) has again increased surcharges on shippers exceeding their weekly allotments in Southern California as domestic intermodal volumes show no signs of the seasonal slowdown typically seen by mid-November. Low-volume shippers will now face a surcharge of $850 per container above their peak season allotment, up from $750, UP said Monday. High-volume shippers will see their surcharges double to $600 per container. It’s the third time UP has increased surcharges on small shippers since August and the second boost for large shippers. The new charges apply both to spot market business originating in Southern California and to contractual agreements when weekly limits are surpassed on rail-owned containers. UP partners Hub Group, Schneider National, STG Logistics and Swift Intermodal control pricing on their privately-owned boxes. Raising surcharges is meant to discourage one-off business from occupying containers that otherwise would be used by long-term customers, notably parcel giant UPS with the holiday shopping season about to ramp up. Class I railroads are facing the challenge of an elongated peak season for ocean and domestic freight, which has put significant pressure on North American intermodal networks. Intermodal marketing companies (IMCs) are experiencing difficulties in getting containers into terminals, onto trains, and to inland destinations with consistent transit times. Volume has been a factor in the service disruptions in international and domestic rail, including higher dwell times, more railcars idling and additional trains being held up compared with a year ago. “Union Pacific’s strategic intermodal investments are enabling us to capture the largest peak season volume increase in five years while maintaining fluidity across the network,” UP said in a statement to the Journal of Commerce. “Los Angeles to Chicago domestic intermodal is experiencing double-digit growth, including setting a volume record last week.” UP and competitor BNSF Railway hauled 1.5 million domestic containers out of the Southwest US between January and October, according to the Intermodal Association of North America (IANA), up 8.4% compared with a year ago and a new record high for the period. The Southwest region includes the ports of Los Angeles and Long Beach, the busiest US gateway. October also set monthly volume records for Southwest originations to the Midwest, Southeast and south-central US, according to IANA. Rails hauled 82,381 domestic containers from the Southwest to Midwest, the first ever monthly total exceeding 80,000, putting pressure on service from Los Angeles to Chicago, Cincinnati, Cleveland and Columbus. The Journal of Commerce estimates that rails hauled nearly 50,000 domestic containers from Los Angeles to Chicago in October, up more than 20% compared with a year ago. UP reported that international intermodal volume in Southern California jumped 30% year over year in the third quarter, further challenging network fluidity in Los Angeles and Long Beach. Service metrics show worst is over Despite recent improvement, UP and BNSF service was inconsistent between September and mid-October. After UP reported that an average of 58 loaded intermodal railcars idled for more than 48 hours per week between January and August, that rose to 139 railcars in September and then jumped to 231.5 in the first half of October, surpassing levels seen during the pandemic surge. However, in the past four weeks, UP’s average has dropped to 131.3 railcars per week, according to data from the US Surface Transportation Board. BNSF reported a similar trend. Both western US railroads also reported slower train speeds and an increase in the number of delayed intermodal trains during September and early October before the metrics improved in the last four weeks. Despite those service gains, some IMC partners remain concerned. Two IMC executives who did not want to be identified said ongoing service issues on UP’s network are a threat to the ability of their companies to retain current customers and attract new ones. “It’s better than it was a month ago, but service is still not where it needs to be, and with UPS ramping up holiday shipments, that’s not helping things,” said one executive. “The problem is inside the terminals. They’ve got terminal issues in Los Angeles, in Houston, in Memphis. I understand service challenges arise with record volumes. But two-week transit times from Los Angeles to Houston, or San Antonio? How do I explain that to our customers?” A second IMC executive shared similar frustrations, especially when attempting to convert truckload freight to rail in Southern California. “When we have that opportunity in hand for a truck conversion, we can save the shipper money, and we’ve finally convinced the shipper to try the intermodal product, it’s disheartening when it’s not a positive experience, leaving a poor first impression,” the source said. “I recently explained to a new customer that shipping early in the week was the best way to get cargo onto the train. But if you think about it, they could just say, ‘Well, I’m just going to put it on a truck, and I don’t have to worry about anything.’” UP, for its part, acknowledges that there have been “episodic” events that have caused service disruptions in recent weeks, but says it’s the result of IMCs winning new business and taking market share off the highways, thus showing the strength of intermodal. With fluidity returning to its network, UP also said it believes shippers moving freight off the highways will have a better experience going forward. Contact Ari Ashe at ari.ashe@spglobal.com .

Intermodal providers

North-American rail

UP hikes LA-LB surcharges again as volumes remain elevated

<div class="phx-topic abstract-wrapper">The New York Shipping Exchange’s plan to introduce indexes to support long-term contracts adds to an already crowded field of providers. </div>

The New York Shipping Exchange’s plan to introduce indexes to support long-term contracts adds to an already crowded field of providers.

<div class="phx-topic">The New York Shipping Exchange (NYSHEX) on Tuesday said it will launch a series of free ocean freight rate indexes in 2025 designed to underpin index-linked contracts. The indexes will be developed in conjunction with the Intercontinental Exchange (ICE), which has also invested in NYSHEX as part of a new tranche of funding it received Tuesday from a range of investors. The new indexes are “based on actual cargo moving rates, which will be transparently governed by industry representatives, and will be freely available for all carriers, shippers and [non-vessel-operating common carriers (NVOs)] to use for their index-linked contracts,” NYSHEX CEO Gordon Downes said in a statement. The introduction of NYSHEX’s indexes adds depth to an already crowded field of container freight rate index providers. Xeneta, Freightos, Drewry, the Shanghai Containerized Freight Index and Platts, a sister company of the Journal of Commerce within S&amp;P Global, all currently provide ocean freight indexes, with various methodologies. “The container shipping industry is vital for global trade, yet it remains an inefficient and volatile market,” Stuart Williams, COO of ICE, said in the statement. “We recently launched ICE Digital Trade (IDT) to support the global shipping industry, and our partnership with NYSHEX is a further step in that direction.” Pandemic-era constraints on ocean freight capacity led shippers to tie up index-linked, multi-year contracts with ocean carriers at higher-than-historical rates, but the use of those contracts tapered off as rates declined and capacity opened up over the last few years. Still, advocates of index-linked contracts say it is the only mechanism to alleviate the volatility that can define the ocean freight market. Long-term contracts allow shippers to operate with transportation cost certainty, while allowing vessel operators to plan their capacity networks more effectively. NYSHEX didn’t specify how the indexes will be deployed, in terms of trade lanes or port pairs. Most existing indexes focus on spot rates and tend to delineate by region or trade lane. NYSHEX was founded in 2014 to build a technology-backed mechanism for shippers, NVOs and shipping lines to construct ocean freight contracts that were mutually binding. Container lines Mediterranean Shipping Co., Maersk, CMA CGM and Hapag-Lloyd are users of the platform. Meanwhile, the new funding round, the size of which was not disclosed, also saw participation from NYSHEX’s existing investors Goldman Sachs Alternatives, NewRoad Capital and Blumberg Capital. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

The New York Shipping Exchange (NYSHEX) on Tuesday said it will launch a series of free ocean freight rate indexes in 2025 designed to underpin index-linked contracts. The indexes will be developed in conjunction with the Intercontinental Exchange (ICE), which has also invested in NYSHEX as part of a new tranche of funding it received Tuesday from a range of investors. The new indexes are “based on actual cargo moving rates, which will be transparently governed by industry representatives, and will be freely available for all carriers, shippers and [non-vessel-operating common carriers (NVOs)] to use for their index-linked contracts,” NYSHEX CEO Gordon Downes said in a statement. The introduction of NYSHEX’s indexes adds depth to an already crowded field of container freight rate index providers. Xeneta, Freightos, Drewry, the Shanghai Containerized Freight Index and Platts, a sister company of the Journal of Commerce within S&P Global, all currently provide ocean freight indexes, with various methodologies. “The container shipping industry is vital for global trade, yet it remains an inefficient and volatile market,” Stuart Williams, COO of ICE, said in the statement. “We recently launched ICE Digital Trade (IDT) to support the global shipping industry, and our partnership with NYSHEX is a further step in that direction.” Pandemic-era constraints on ocean freight capacity led shippers to tie up index-linked, multi-year contracts with ocean carriers at higher-than-historical rates, but the use of those contracts tapered off as rates declined and capacity opened up over the last few years. Still, advocates of index-linked contracts say it is the only mechanism to alleviate the volatility that can define the ocean freight market. Long-term contracts allow shippers to operate with transportation cost certainty, while allowing vessel operators to plan their capacity networks more effectively. NYSHEX didn’t specify how the indexes will be deployed, in terms of trade lanes or port pairs. Most existing indexes focus on spot rates and tend to delineate by region or trade lane. NYSHEX was founded in 2014 to build a technology-backed mechanism for shippers, NVOs and shipping lines to construct ocean freight contracts that were mutually binding. Container lines Mediterranean Shipping Co., Maersk, CMA CGM and Hapag-Lloyd are users of the platform. Meanwhile, the new funding round, the size of which was not disclosed, also saw participation from NYSHEX’s existing investors Goldman Sachs Alternatives, NewRoad Capital and Blumberg Capital. Contact Eric Johnson at eric.johnson@spglobal.com .

Container lines

Trans-Atlantic

Forwarding

Asia-Europe

Trans-Pacific

Container Shipping News

NYSHEX says will launch ocean freight rate indexes next year

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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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