<div class="phx-topic abstract-wrapper">The plan for a new bridge between Detroit and Windsor, Ont., was dealt a severe blow Thursday after the Michigan Senate rejected a bill critical to funding the proposed $5.3 billion project.
</div>

The plan for a new bridge between Detroit and Windsor, Ont., was dealt a severe blow Thursday after the Michigan Senate rejected a bill critical to funding the proposed $5.3 billion project.

<div>The plan for a new bridge between Detroit and Windsor, Ont., was dealt a severe blow Thursday after the Michigan Senate rejected a bill critical to funding the proposed $5.3 billion project.Passage of the bill would have allowed the state to accept $550 million from the Canadian government to fund the country&amp;rsquo;s share of the <a>New International Trade Crossing</a>. Proponents say the proposed bridge over the Detroit River two miles downstream of the 80-year-old Ambassador Bridge, the busiest crossing on the U.S.-Canada border, would boost trade between the countries. NITC has wide support among Michigan businesses, local governments and international...

The plan for a new bridge between Detroit and Windsor, Ont., was dealt a severe blow Thursday after the Michigan Senate rejected a bill critical to funding the proposed $5.3 billion project. Passage of the bill would have allowed the state to accept $550 million from the Canadian government to fund the country&rsquo;s share of the New International Trade Crossing . Proponents say the proposed bridge over the Detroit River two miles downstream of the 80-year-old Ambassador Bridge, the busiest crossing on the U.S.-Canada border, would boost trade between the countries. NITC has wide support among Michigan businesses, local governments and international trade groups. Republican Gov. Rick Snyder surprised fellow party members last January by making it a priority of his new administration. The main opposition to the NITC comes from the Ambassador Bridge&rsquo;s owner, billionaire transportation executive Manuel &ldquo;Matty&rdquo; Moroun. He is reported to have made lavish campaign contributions to Republican members of the state legislature, and underwrote a statewide television campaign against the NITC. Contact R.G. Edmonson at bedmonson@joc.com . Follow him on Twitter @BobinWash .

Trucking News

Transport, Trade and Regulation News

Plan for Detroit-Windsor, Ont., Bridge Dealt Blow

<div class="phx-topic abstract-wrapper">Canada’s Labor Minister requires management and unions to submit to binding arbitration and orders that ports reopen after a series of strikes and lockouts effectively halted container operations across the country. </div>

Canada’s Labor Minister requires management and unions to submit to binding arbitration and orders that ports reopen after a series of strikes and lockouts effectively halted container operations across the country.

Feature image

<div class="phx-topic">Canada’s Labor Minister on Tuesday took direct action to end coast-to-coast port closures by ordering binding arbitration in contract disputes between maritime employers and longshore workers, forcing ports to reopen. Steve MacKinnon said in a statement that he has invoked authority under Canada’s labor code that will force longshore unions in British Columbia and Montreal and their respective employer groups to come to terms on new collective bargaining agreements with the aid of a government arbitrator. In advance of the arbitration proceedings, MacKinnon also said <a href="https://www.joc.com/article/port-lockouts-extend-from-bc-ports-to-montreal-5790073">his agency will order the reopening of ports in those jurisdictions</a>, with previously expired longshore contracts being extended in the interim. “I have directed the Canada Industrial Relations Board (CIRB) to order the resumption of all operations and functions at the ports, and to assist the parties by imposing final and binding arbitration,” MacKinnon said. “I have also directed the board to extend the term of the existing collective agreements until new ones are reached.” MacKinnon’s move will end a nearly two-week work stoppage at the ports of Vancouver and Prince Rupert after <a href="https://www.joc.com/article/bc-container-ports-set-for-shutdown-after-foremen-begin-strike-5785499">the British Columbia Maritime Employers Association (BCMEA) locked out members of the International Longshore and Warehouse Union Local 514 after its vote for a strike</a>. The BCMEA tried to end the lockout this weekend through direct talks with Local 514 overseen by government mediators, but those talks did not result in a deal. Maritime employers there have offered Local 514 a 19.2% wage increase over four years, along with a one-time lump sum payment of C$21,000 and a boost to other existing benefits. The BCMEA said in a statement Tuesday that it “intends to follow direction received from the CIRB and will inform member employers of operational updates as soon as possible.”    “We look forward to safely resuming operations across Canada’s West Coast ports,” the group said. The coast-to-coast port closures have delayed the discharge and loading of ocean freight and forced Canada’s two main railroads to halt intermodal operations at the affected ports. But there does not appear to be any major disruptions in terms of a high number of anchored ships or severe backlogs at the ports. <h3>‘Corroded’ relations at Montreal </h3>MacKinnon’s move also signals the end of <a href="https://www.joc.com/article/montreal-dockworkers-target-mscs-terminals-for-strike-this-week-5781453">a series of limited strikes</a> and <a href="https://www.joc.com/article/montreal-says-congestion-risk-grows-as-dockworkers-refuse-overtime-5751118">work stoppages</a> at the Port of Montreal by the Canadian Union of Public Employees Local 375 since the start of October. In response to those actions, Montreal’s Maritime Employers Association (MEA) began its own port-wide lockout of longshore workers this week. MacKinnon said the situation at Montreal has become particularly acute due to the length of the standoff between the MEA and Local 375, <a href="https://www.joc.com/article/port-of-montreal-labor-talks-head-to-mediation-at-longshore-unions-request-5220571">with government-mediated contract negotiations between the two having begun back in October 2023</a>. Montreal terminal operators started using replacement workers at the port in response to the lockout, “so the relationship between the parties and industrial peace is further corroded with each passing day,” he said. The MEA began its lockout on Sunday evening after Local 375 rejected the employers’ last offer that included a 20.5% wage increase over six years, plus maintaining other benefits including a pension and income guarantees. The MEA said in a statement Tuesday that it welcomed MacKinnon’s help in resolving the “total impasse” with Local 375 over a new contract that would cover about 1,300 dockworkers. While it did not say when the port will reopen, the MEA said it “will take the necessary steps to ensure that activities resume as quickly as possible at the Port of Montreal.” <a href="https://www.joc.com/article/ships-waiting-out-bc-port-closures-in-hopes-of-quick-deal-with-longshore-union-5786677">Ocean carriers have been holding fire on major operational changes due to the port closures</a>. Carriers still accepted bookings for Canada-bound freight and container ships have mostly been idling outside the ports awaiting a resolution. Maersk said last week that vessels in its TP1 service to Canada’s West Coast have remained at berth in Vancouver and Prince Rupert with other scheduled vessels still en route for both ports. It said that vessels in the carrier’s Canada Express Service, which is jointly operated with CMA CGM, also remain en route to Montreal. Hapag-Lloyd said in an advisory Tuesday that it has three ships at berth in Montreal currently, with two idling at anchorage in the Saint Lawrence River awaiting the port’s reopening. On the West Coast, one ship in THE Alliance’s PN3 service remains at berth at Vancouver with vessels in other services awaiting a berth. Another vessel in THE Alliance’s PN4 service is waiting outside of Prince Rupert for an available berth, the carrier said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Canada’s Labor Minister on Tuesday took direct action to end coast-to-coast port closures by ordering binding arbitration in contract disputes between maritime employers and longshore workers, forcing ports to reopen. Steve MacKinnon said in a statement that he has invoked authority under Canada’s labor code that will force longshore unions in British Columbia and Montreal and their respective employer groups to come to terms on new collective bargaining agreements with the aid of a government arbitrator. In advance of the arbitration proceedings, MacKinnon also said his agency will order the reopening of ports in those jurisdictions , with previously expired longshore contracts being extended in the interim. “I have directed the Canada Industrial Relations Board (CIRB) to order the resumption of all operations and functions at the ports, and to assist the parties by imposing final and binding arbitration,” MacKinnon said. “I have also directed the board to extend the term of the existing collective agreements until new ones are reached.” MacKinnon’s move will end a nearly two-week work stoppage at the ports of Vancouver and Prince Rupert after the British Columbia Maritime Employers Association (BCMEA) locked out members of the International Longshore and Warehouse Union Local 514 after its vote for a strike . The BCMEA tried to end the lockout this weekend through direct talks with Local 514 overseen by government mediators, but those talks did not result in a deal. Maritime employers there have offered Local 514 a 19.2% wage increase over four years, along with a one-time lump sum payment of C$21,000 and a boost to other existing benefits. The BCMEA said in a statement Tuesday that it “intends to follow direction received from the CIRB and will inform member employers of operational updates as soon as possible.”    “We look forward to safely resuming operations across Canada’s West Coast ports,” the group said. The coast-to-coast port closures have delayed the discharge and loading of ocean freight and forced Canada’s two main railroads to halt intermodal operations at the affected ports. But there does not appear to be any major disruptions in terms of a high number of anchored ships or severe backlogs at the ports. ‘Corroded’ relations at Montreal MacKinnon’s move also signals the end of a series of limited strikes and work stoppages at the Port of Montreal by the Canadian Union of Public Employees Local 375 since the start of October. In response to those actions, Montreal’s Maritime Employers Association (MEA) began its own port-wide lockout of longshore workers this week. MacKinnon said the situation at Montreal has become particularly acute due to the length of the standoff between the MEA and Local 375, with government-mediated contract negotiations between the two having begun back in October 2023 . Montreal terminal operators started using replacement workers at the port in response to the lockout, “so the relationship between the parties and industrial peace is further corroded with each passing day,” he said. The MEA began its lockout on Sunday evening after Local 375 rejected the employers’ last offer that included a 20.5% wage increase over six years, plus maintaining other benefits including a pension and income guarantees. The MEA said in a statement Tuesday that it welcomed MacKinnon’s help in resolving the “total impasse” with Local 375 over a new contract that would cover about 1,300 dockworkers. While it did not say when the port will reopen, the MEA said it “will take the necessary steps to ensure that activities resume as quickly as possible at the Port of Montreal.” Ocean carriers have been holding fire on major operational changes due to the port closures . Carriers still accepted bookings for Canada-bound freight and container ships have mostly been idling outside the ports awaiting a resolution. Maersk said last week that vessels in its TP1 service to Canada’s West Coast have remained at berth in Vancouver and Prince Rupert with other scheduled vessels still en route for both ports. It said that vessels in the carrier’s Canada Express Service, which is jointly operated with CMA CGM, also remain en route to Montreal. Hapag-Lloyd said in an advisory Tuesday that it has three ships at berth in Montreal currently, with two idling at anchorage in the Saint Lawrence River awaiting the port’s reopening. On the West Coast, one ship in THE Alliance’s PN3 service remains at berth at Vancouver with vessels in other services awaiting a berth. Another vessel in THE Alliance’s PN4 service is waiting outside of Prince Rupert for an available berth, the carrier said. Contact Michael Angell at michael.angell@spglobal.com

Container Shipping News

Marine terminals

Longshore labor

North American ports

BC, Montreal ports set to reopen under orders from Canada’s labor chief

<div class="phx-topic abstract-wrapper">Both carriers generated more in net income between July and September than the first two quarters combined, filings to the Taiwan stock exchange showed.</div>

Both carriers generated more in net income between July and September than the first two quarters combined, filings to the Taiwan stock exchange showed.

<div class="phx-topic">Two of Taiwan’s largest carriers — Yang Ming Marine Transport and Wan Hai Lines — saw net profit surge in the third quarter, outpacing their first-half results, on the back of stronger demand and higher freight rates. Both companies generated more in net income between July and September than the first two quarters combined, filings to the Taiwan stock exchange on Monday showed. Yang Ming, ranked by Alphaliner as the 10th-largest carrier globally in terms of capacity, saw net profit jump to $870 million in the third quarter, compared with $730 million for the entire first half. The third-quarter result was almost nine times higher than the $91 million in net profit reported in the third quarter of last year. Operating revenues climbed to $2.2 billion in the third quarter against $1.2 billion in the prior-year period. Yang Ming said it started to see strong demand and higher freight rates in the first half, trends that continued in the third quarter as shippers consigned cargo early ahead of possible US port disruption and vessels diverting around southern Africa. Nearly 40% of operating revenues came from its services to the Americas, while the biggest volume gains were on trans-Pacific and longer-haul intra-Asia services to the Middle East and South Asia, the carrier said. While container freight rates steadily declined in the third quarter from early July, when the benchmark Shanghai Container Freight Index (SCFI) peaked at 3,650, the SCFI was still 140% higher in the third quarter than the same period last year. Wan Hai, meanwhile, generated $600 million in net profit in the third quarter, up from the $499 million recorded in the first half and a $56 million net loss in the third quarter of 2023. Operating revenues surged to $1.7 billion between July and September against $771 million in the year-ago quarter. Wan Hai has seen a steady increase in the percentage of revenue from long-haul Americas and Middle East and India services this year compared with 2023, while its traditional Far East-derived revenues have shrunk. The Americas now account for almost 50% of the carrier’s total revenues, with the Middle East and India around 25% combined. Maritime consultancy Drewry estimates container shipping will report a profit of $50 billion this year, up from $28 billion in 2023. And while it is a fraction of the $298 billion recorded in pandemic-fueled 2022, the carriers will enter an uncertain 2025 in robust financial health. Contact Keith Wallis at <a href="keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Two of Taiwan’s largest carriers — Yang Ming Marine Transport and Wan Hai Lines — saw net profit surge in the third quarter, outpacing their first-half results, on the back of stronger demand and higher freight rates. Both companies generated more in net income between July and September than the first two quarters combined, filings to the Taiwan stock exchange on Monday showed. Yang Ming, ranked by Alphaliner as the 10th-largest carrier globally in terms of capacity, saw net profit jump to $870 million in the third quarter, compared with $730 million for the entire first half. The third-quarter result was almost nine times higher than the $91 million in net profit reported in the third quarter of last year. Operating revenues climbed to $2.2 billion in the third quarter against $1.2 billion in the prior-year period. Yang Ming said it started to see strong demand and higher freight rates in the first half, trends that continued in the third quarter as shippers consigned cargo early ahead of possible US port disruption and vessels diverting around southern Africa. Nearly 40% of operating revenues came from its services to the Americas, while the biggest volume gains were on trans-Pacific and longer-haul intra-Asia services to the Middle East and South Asia, the carrier said. While container freight rates steadily declined in the third quarter from early July, when the benchmark Shanghai Container Freight Index (SCFI) peaked at 3,650, the SCFI was still 140% higher in the third quarter than the same period last year. Wan Hai, meanwhile, generated $600 million in net profit in the third quarter, up from the $499 million recorded in the first half and a $56 million net loss in the third quarter of 2023. Operating revenues surged to $1.7 billion between July and September against $771 million in the year-ago quarter. Wan Hai has seen a steady increase in the percentage of revenue from long-haul Americas and Middle East and India services this year compared with 2023, while its traditional Far East-derived revenues have shrunk. The Americas now account for almost 50% of the carrier’s total revenues, with the Middle East and India around 25% combined. Maritime consultancy Drewry estimates container shipping will report a profit of $50 billion this year, up from $28 billion in 2023. And while it is a fraction of the $298 billion recorded in pandemic-fueled 2022, the carriers will enter an uncertain 2025 in robust financial health. Contact Keith Wallis at keithwallis@hotmail.com .

Container lines

Maritime

Yang Ming, Wan Hai see Q3 net profit outpace first half on demand, higher rates

<div class="phx-topic abstract-wrapper">While there was no official word as to what caused the flip-flop on the part of the carrier, sources believe the security situation in the Red Sea remains too volatile for carriers to consider returning to the Suez route.</div>

While there was no official word as to what caused the flip-flop on the part of the carrier, sources believe the security situation in the Red Sea remains too volatile for carriers to consider returning to the Suez route.

<div class="phx-topic">Just days after announcing it would send its key India-US Indamex service back through the Suez Canal, CMA CGM has reversed course and instead will maintain the longer route around the Cape of Good Hope in southern Africa. While there was no official word as to what caused the flip-flop on the part of the carrier, sources believe the security situation in the Red Sea remains too volatile for carriers to consider returning to the Suez route, which was largely abandoned by commercial shipping almost a year ago amid attacks by Houthi militants operating from southern Yemen. ”CMA CGM has decided to continue the Indamex service via (the) Cape of Good Hope routing with the same service schedule,” the carrier said in a customer advisory Tuesday. “This is applicable for the current vessel CMA CGM Pelleas.”A return to the shorter Suez route for the Indamex service <a href="https://www.joc.com/article/cma-cgm-reinstates-suez-transits-on-india-us-route-5789989">was to begin with the CMA Pelleas departing from Pakistan’s Port Qasim on Nov. 13</a>. The revamped service was to offer transit times of 31 days from Nhava Sheva in India to New York, down from between 35 and 40 days with the current longer rotation.  Indamex is arguably the most sought-after network by exporters on the India-US trade lane. The Gemini Cooperation of Maersk and Hapag-Lloyd in early October announced it had <a href="https://www.joc.com/article/maersk-rules-out-suez-canal-routings-for-gemini-launch-5746470">ruled out Suez sailings</a> for its network that will launch next February. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="893ffa5c-0a69-45c7-a555-425e44318711"></dynamic-object></div>Meanwhile, CMA CGM has issued a trade advisory announcing a peak season surcharge of $1,500 per container for Indian loads to the US East and Gulf coasts from Dec.5. The planned hike comes as rates on the trade lane continue to drop week on week, with forwarder sources now reporting quotes of $1,900 per FEU from some of the carriers, particularly Ocean Network Express, amid the demand downturn. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged India-USEC spot rates at $2,400 per FEU as of Nov. 11, down 2% on the week. Contact Bency Mathew at <a href="bencymathew@gmail.com">bencymathew@gmail.com</a>. </div>

Just days after announcing it would send its key India-US Indamex service back through the Suez Canal, CMA CGM has reversed course and instead will maintain the longer route around the Cape of Good Hope in southern Africa. While there was no official word as to what caused the flip-flop on the part of the carrier, sources believe the security situation in the Red Sea remains too volatile for carriers to consider returning to the Suez route, which was largely abandoned by commercial shipping almost a year ago amid attacks by Houthi militants operating from southern Yemen. ”CMA CGM has decided to continue the Indamex service via (the) Cape of Good Hope routing with the same service schedule,” the carrier said in a customer advisory Tuesday. “This is applicable for the current vessel CMA CGM Pelleas.” A return to the shorter Suez route for the Indamex service was to begin with the CMA Pelleas departing from Pakistan’s Port Qasim on Nov. 13 . The revamped service was to offer transit times of 31 days from Nhava Sheva in India to New York, down from between 35 and 40 days with the current longer rotation.  Indamex is arguably the most sought-after network by exporters on the India-US trade lane. The Gemini Cooperation of Maersk and Hapag-Lloyd in early October announced it had ruled out Suez sailings for its network that will launch next February. Meanwhile, CMA CGM has issued a trade advisory announcing a peak season surcharge of $1,500 per container for Indian loads to the US East and Gulf coasts from Dec.5. The planned hike comes as rates on the trade lane continue to drop week on week, with forwarder sources now reporting quotes of $1,900 per FEU from some of the carriers, particularly Ocean Network Express, amid the demand downturn. Platts, a sister company of the Journal of Commerce within S&P Global, pegged India-USEC spot rates at $2,400 per FEU as of Nov. 11, down 2% on the week. Contact Bency Mathew at bencymathew@gmail.com .

CMA CGM does U-turn on Suez Canal resumption for Indamex service

<div class="phx-topic abstract-wrapper">A second intermodal option is coming for shippers moving cargo between Mexico and the Southeast US beginning in December.</div>

A second intermodal option is coming for shippers moving cargo between Mexico and the Southeast US beginning in December.

<div class="phx-topic">Canadian Pacific Kansas City (CPKC) and CSX Transportation will launch a new cross-border rail service on Dec. 1, connecting Mexico to the US Southeast and carrying Schneider National intermodal freight alongside automotive and other mixed cargo, the companies said in a joint statement Monday. The announcement comes three weeks after the US Surface Transportation Board approved a <a href="https://www.joc.com/article/stb-approves-cpkc-csx-acquisitions-of-regional-rail-line-in-southern-us-5751176">series of transactions</a> necessary for the service to commence. The daily train will originate in San Luis Potosí, stop in Monterrey, Laredo and Jackson, Mississippi, before interchanging with CSX in Myrtlewood, Alabama, before heading to Atlanta. Shippers in Florida and Georgia will be able to receive direct service through CSX. The route is expected to take seven days, compared with three to four days by truck. “It will be especially useful for shippers looking to diversify their transportation solutions and support and fortify nearshoring strategies,” Jim Filter, executive vice president of Schneider National, said a statement. The CPKC-CSX service will compete with a <a href="https://www.joc.com/article/union-pacific-launches-mexico-southeast-service-to-meet-growing-demand-5234451">similar Mexico-Southeast intermodal option</a> launched in October 2023 by Ferromex and Union Pacific. That service moves freight from Mexico to Memphis, where it is transferred by truck to CSX or Norfolk Southern Railway for delivery to Atlanta; Charlotte, North Carolina; and Jacksonville, Florida. The Ferromex-UP option takes about 10 days. According to the Journal of Commerce Intermodal Savings Index, truckload rates between Atlanta, Jacksonville and Texas are often equal to or lower than intermodal rail prices, while providing faster and more consistent service. Convincing shippers to opt for slower rail service without cost savings has historically been difficult. CPKC and CSX expect that infrastructure improvements in Mississippi and Alabama scheduled for completion in early 2025 will reduce transit times.Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Canadian Pacific Kansas City (CPKC) and CSX Transportation will launch a new cross-border rail service on Dec. 1, connecting Mexico to the US Southeast and carrying Schneider National intermodal freight alongside automotive and other mixed cargo, the companies said in a joint statement Monday. The announcement comes three weeks after the US Surface Transportation Board approved a series of transactions necessary for the service to commence. The daily train will originate in San Luis Potosí, stop in Monterrey, Laredo and Jackson, Mississippi, before interchanging with CSX in Myrtlewood, Alabama, before heading to Atlanta. Shippers in Florida and Georgia will be able to receive direct service through CSX. The route is expected to take seven days, compared with three to four days by truck. “It will be especially useful for shippers looking to diversify their transportation solutions and support and fortify nearshoring strategies,” Jim Filter, executive vice president of Schneider National, said a statement. The CPKC-CSX service will compete with a similar Mexico-Southeast intermodal option launched in October 2023 by Ferromex and Union Pacific. That service moves freight from Mexico to Memphis, where it is transferred by truck to CSX or Norfolk Southern Railway for delivery to Atlanta; Charlotte, North Carolina; and Jacksonville, Florida. The Ferromex-UP option takes about 10 days. According to the Journal of Commerce Intermodal Savings Index, truckload rates between Atlanta, Jacksonville and Texas are often equal to or lower than intermodal rail prices, while providing faster and more consistent service. Convincing shippers to opt for slower rail service without cost savings has historically been difficult. CPKC and CSX expect that infrastructure improvements in Mississippi and Alabama scheduled for completion in early 2025 will reduce transit times. Contact Ari Ashe at ari.ashe@spglobal.com .

Intermodal providers

North-American rail

CPKC, CSX to launch joint Mexico-Southeast US service Dec. 1

<div class="phx-topic abstract-wrapper">Minimal movements in industry indexes underline a constant demand for MPVs with capacity artificially reduced by Red Sea diversions.</div>

Minimal movements in industry indexes underline a constant demand for MPVs with capacity artificially reduced by Red Sea diversions.

<div class="phx-topic">Steady breakbulk and project cargo demand and a lack of specialized multipurpose vessel (MPV) capacity are keeping MPV charter rates steady at levels well above those seen prior to the COVID-19 pandemic market, and vessel operators are optimistic this will continue through the next quarter, according to two closely watched industry indexes.According to the latest Toepfer Multipurpose Index (TMI) forecast, average daily MPV charter rates will remain firm in November, slipping to $13,157 per day from $13,160 per day in October. At the same time, the One World Shipbrokers’ Market Sentiment Index (MSI) rose to a reading of 54.6 in October from 54.3 in August, signaling ongoing — and increasing — optimism from the MPV owners and operators surveyed for the index.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="12458372-727c-44f7-abb6-92d738a305d9"></dynamic-object></div>“There is steady demand from various cargo segments, which is just enough to sustain the current rate levels and as long as there is no significant change in demand in any of these segments, the outlook remains unchanged,” shipbroker Toepfer Transport said in its Nov. 7 TMI report.Toepfer noted, however, that the impact of President-elect Donald Trump’s second term is still unclear. “[W]e are sure that we are in for some exciting weeks,” the report said.But with piecemeal demand coming from multiple cargo segments, rather than a single booming cargo stream, that stability is tenuous, Yorck Niclas Prehm, head of research with Hamburg-based Toepfer Transport, told the Journal of Commerce.“We believe this situation will not change prior to Q2 of 2025, when more demand, especially from the energy sector will come in and decisions which have been postponed due to the US elections will be made.”<h3>An east-west ‘bulkhead’</h3>MPV owners and operators polled for the latest MSI remained sanguine about the medium-term forecast, acknowledging that tight vessel availability is keeping freight rates steady. Justin Archard, a sale and purchase shipbroker at Netherlands-based Friday &amp; Co. and developer of the MSI in his previous position at One World, told the Journal of Commerce that the lack of MPVs transiting through the Suez Canal is a “market shifter.””It seems right now that there is a sort of line straight down the middle from Greenwich, London, all the way down through to Cape Town, South Africa, and that’s forming a kind of bulkhead between East and West,” Archard said.Asia has been connected to Europe by the Suez Canal since 1869, bar two closures for eight years in 1967–75 and for five months in 1956–57. Trade between the two continents was mature, well-defined and taken for granted until the Houthis began attacking ships in the Red Sea in November 2023. Suez Canal vessel transits that began plummeting in December 2023 averaged just 33 per day in mid-October, down 55% from the previous year, according to United Nations Trade and Development (UNCTAD).“And now, we’re starting to see the lagging effects of the Suez Canal problem and that bulkhead [increasing] between East and West,” Archard said.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="996ede0f-a2bb-4947-8fa5-b7e91bd57171"></dynamic-object></div>Underscoring this regional dichotomy, carriers report to the MSI that Asia remains strong with vessels leaving full, while a patchier European market is creating a de facto “captive” fleet west of the Suez Canal because carriers are struggling to find sufficient backhaul cargoes to get them back to Asia. This is leading to capacity imbalances in the MPV market, Archard said.Carriers “leave Asia and they just don’t come back quickly enough,” he said. “Now, add that to all the other issues we’ve been having: delays [to projects] because of inflation, because of interest rates, because of the US election. We are always caught in the crosshairs of extraneous events.” As a result, the MPV market struggles to be “the master of its own destiny,” Archard said, adding that those dynamics make it difficult for MPV operators to plan for the coming months.“There isn’t a clear pathway forward,” he said. “Everybody seems to be being buffeted by the winds of geopolitical events.”Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500 deadweight ton (dwt) “F-Type” vessels with safe working loads of 240-360 metric tons, as reported to Toepfer by owners and operators. Toepfer addresses the short sea market, as well as other markets, in separate reports.The MSI averages the responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism.Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com.</a></div>

Steady breakbulk and project cargo demand and a lack of specialized multipurpose vessel (MPV) capacity are keeping MPV charter rates steady at levels well above those seen prior to the COVID-19 pandemic market, and vessel operators are optimistic this will continue through the next quarter, according to two closely watched industry indexes. According to the latest Toepfer Multipurpose Index (TMI) forecast, average daily MPV charter rates will remain firm in November, slipping to $13,157 per day from $13,160 per day in October. At the same time, the One World Shipbrokers’ Market Sentiment Index (MSI) rose to a reading of 54.6 in October from 54.3 in August, signaling ongoing — and increasing — optimism from the MPV owners and operators surveyed for the index. “There is steady demand from various cargo segments, which is just enough to sustain the current rate levels and as long as there is no significant change in demand in any of these segments, the outlook remains unchanged,” shipbroker Toepfer Transport said in its Nov. 7 TMI report. Toepfer noted, however, that the impact of President-elect Donald Trump’s second term is still unclear. “[W]e are sure that we are in for some exciting weeks,” the report said. But with piecemeal demand coming from multiple cargo segments, rather than a single booming cargo stream, that stability is tenuous, Yorck Niclas Prehm, head of research with Hamburg-based Toepfer Transport, told the Journal of Commerce. “We believe this situation will not change prior to Q2 of 2025, when more demand, especially from the energy sector will come in and decisions which have been postponed due to the US elections will be made.” An east-west ‘bulkhead’ MPV owners and operators polled for the latest MSI remained sanguine about the medium-term forecast, acknowledging that tight vessel availability is keeping freight rates steady. Justin Archard, a sale and purchase shipbroker at Netherlands-based Friday & Co. and developer of the MSI in his previous position at One World, told the Journal of Commerce that the lack of MPVs transiting through the Suez Canal is a “market shifter.” ”It seems right now that there is a sort of line straight down the middle from Greenwich, London, all the way down through to Cape Town, South Africa, and that’s forming a kind of bulkhead between East and West,” Archard said. Asia has been connected to Europe by the Suez Canal since 1869, bar two closures for eight years in 1967–75 and for five months in 1956–57. Trade between the two continents was mature, well-defined and taken for granted until the Houthis began attacking ships in the Red Sea in November 2023. Suez Canal vessel transits that began plummeting in December 2023 averaged just 33 per day in mid-October, down 55% from the previous year, according to United Nations Trade and Development (UNCTAD). “And now, we’re starting to see the lagging effects of the Suez Canal problem and that bulkhead [increasing] between East and West,” Archard said. Underscoring this regional dichotomy, carriers report to the MSI that Asia remains strong with vessels leaving full, while a patchier European market is creating a de facto “captive” fleet west of the Suez Canal because carriers are struggling to find sufficient backhaul cargoes to get them back to Asia. This is leading to capacity imbalances in the MPV market, Archard said. Carriers “leave Asia and they just don’t come back quickly enough,” he said. “Now, add that to all the other issues we’ve been having: delays [to projects] because of inflation, because of interest rates, because of the US election. We are always caught in the crosshairs of extraneous events.” As a result, the MPV market struggles to be “the master of its own destiny,” Archard said, adding that those dynamics make it difficult for MPV operators to plan for the coming months. “There isn’t a clear pathway forward,” he said. “Everybody seems to be being buffeted by the winds of geopolitical events.” Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500 deadweight ton (dwt) “F-Type” vessels with safe working loads of 240-360 metric tons, as reported to Toepfer by owners and operators. Toepfer addresses the short sea market, as well as other markets, in separate reports. The MSI averages the responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism. Contact Carly Fields at carly.fields@spglobal.com.

Breakbulk carriers

Project cargo

Breakbulk News

MPV stability underscored by steady cargo demand

Subscribe today and save 20%
Use code STSW20 at checkout
Valid for first year of subscription

Subscribe Now - Free Trials - Wide Box

SUBSCRIBE AND SAVE

Subscribe Now - Anonymous - Wide Box

SUBSCRIBE TODAY

Access Journal of Commerce content for 30 days.

Free Trial - Wide Box

START A FREE TRIAL TODAY

Upgrade to Gold today for just $795
Use code GUW695 at checkout
Valid for first year of subscription

Upgrade Subscription - Wide Box

UPGRADE TODAY AND SAVE

Register today to redeem your Gold subscriber discount!

TPM Discount - Gold

Save 20% on TPM25

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

SMC3rates_shutterstock_5247046.jpg

Shippers save money, time with automated transportation bidding tools

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>

Cranes arrival to TEC I.png

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>

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

SUBSCRIBE TODAY: Choose a plan that fits your needs

Subscribe Now - Anonymous - Offer Box

Subscribe Today

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

Free Trial - Offer Box

Free Trial

SUBSCRIBE AND SAVE: Use code STSW20 and save 25% on annual subscription!


Subscribe Now - Free Trials - Offer Box

UPGRADE TODAY AND SAVE: Use code GUW795 and upgrade to a Gold subscription today for just $795!

Upgrade Subscription - Offer Box

Upgrade Subscription

20% OFF ON TPM25: Register today and redeem your Gold subscriber discount!

TPM Discount - Gold 

20% OFF ON TPM25

The premier conference for the global container shipping and supply chain community

TPM Conference - Rectangle Box

Attend TPM25

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

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

ISI Report - Rectangle Box

Intermodal Savings Index

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

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

Gateway - Rectangle Box

Gateway

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk25

Discover the news and analysis of supply chain strategies, sourcing and trends covered by the Journal of Commerce. Comprehensive coverage includes customs, trade news, transport news and the latest information about trade regulations.

Stay informed with the latest regulation news and trade updates. Explore comprehensive transportation news and trade regulations today.

Transport, Trade and Regulation News | Journal of Commerce

The Journal of Commerce’s supply chain news and analysis impacting the management of end-to-end supply chains reports on supply chain strategies, cargo visibility, inventory trends, sourcing, customs certification and contract logistics. Supply chain news coverage also delves into refrigerated shipping advancements and management of inventory status, regulatory updates and government funding projects.

Our logistics technology news include logistics technology startups, solutions, and the impact of technology on logistics and supply chain management.

Logistics Technology News | Journal of Commerce

Logistics Technology News

A thorough cool cargoes news by Journal of Commerce. Learn about the latest trends in refrigerated cargo transportation, weight capacity, technology, and more.

Cool Cargoes News | Journal of Commerce

Cool Cargo News

Journal of Commerce keeps you informed on the latest last mile news with comprehensive coverage of carriers, logistics, and last mile transportation solutions.

Last Mile News | Journal of Commerce

Last Mile News

Discover the latest industrial real estate news and trends. Covering projects, real estate supply chain, logistics, pricing, cross dock facilities, and more.

Industrial Real Estate News | Journal of Commerce

Industrial Real Estate News

Stay updated on supply chain strategies, cargo visibility, inventory trends and more with our comprehensive supply chain news and analysis.

Latest News

More News & Analysis

BC, Montreal ports set to reopen under orders from Canada’s labor chief

Yang Ming, Wan Hai see Q3 net profit outpace first half on demand, higher rates

CMA CGM does U-turn on Suez Canal resumption for Indamex service