Breakbulk pop up 640x340 1.png

Event Pop Up

Events

Maritime

Surface

Air Cargo

Magazine

Supply chain

Resources

Gateway

Breakbulk News

Container Shipping News

Port News

Trucking News

Rail News

Air Cargo Forwarder News

Air Cargo Carriers News

Transport, Trade and Regulation News

Logistics Technology News

Cool Cargo News

Last Mile News

Industrial Real Estate News

Newsletters

Multimedia

White Papers

Special Reports

Press Releases

Media Kit

Other

Breakbulk carriers

Ro/ro cargo

Energy projects

Heavy-haul transport

Project cargo

Container lines

Trans-Atlantic

Forwarding

Asia-Europe

Trans-Pacific

Drayage

Port infrastructure

Breakbulk ports

North American ports

Marine terminals

International ports

Longshore labor

Truckload

Truck brokers

Flatbed

Trucking labor

North-American rail

International rail

Intermodal providers

Commentary

Podcasts

Webcasts

Videos

Annual Review and Outlook

Top Rankings

Quarterly Intelligence Report

Intermodal Savings Index

Domestic Intermodal Service Scorecard

Breakbulk Quarterly Intelligence

Platts Containers Update

Top 100 US Exporters

Top 100 US Importers

Top 25 LTL Trucking Companies

Top 25 North American Ports

Top 25 Truckload Companies

Top 40 Container Carriers

Top 50 3PLs

Top 50 Global Container Ports

Top 50 Global Transportation Providers

Top 50 Trucking Companies

<div class="phx-topic abstract-wrapper">The vessels, priced at $125 million each, are scheduled for delivery in 2018 and 2019.</div>

The vessels, priced at $125 million each, are scheduled for delivery in 2018 and 2019.

<div><a>Yang Ming</a> Marine Wednesday ordered five 14,000 twenty-foot-equivalent unit ships at Imabari Shipbuilding, reflecting the Taiwanese carrier and fellow <a>CKYHE Alliance</a> members’ reluctance to jump <a>into the frenzy</a> of ordering ships with capacities greater than 18,000 TEUs.The vessels, priced at $125 million each, are scheduled for delivery in 2018 and 2019, and will be chartered to Shoei Kisen Kaisha and will grow Yang Ming's 14,000 TEU ship fleet to 20 vessels.“Interestingly, only two of the CKYHE Alliance partners have committed to so-called mega-boxships of more than 18,000 TEUs so far,” said IHS Maritime shipbuilding analyst Robert Willmington.<a>Cosco</a> and <a>Evergreen Line</a>...

Yang Ming Marine Wednesday ordered five 14,000 twenty-foot-equivalent unit ships at Imabari Shipbuilding, reflecting the Taiwanese carrier and fellow CKYHE Alliance members’ reluctance to jump into the frenzy of ordering ships with capacities greater than 18,000 TEUs. The vessels, priced at $125 million each, are scheduled for delivery in 2018 and 2019, and will be chartered to Shoei Kisen Kaisha and will grow Yang Ming's 14,000 TEU ship fleet to 20 vessels. “Interestingly, only two of the CKYHE Alliance partners have committed to so-called mega-boxships of more than 18,000 TEUs so far,” said IHS Maritime shipbuilding analyst Robert Willmington. Cosco and Evergreen Line are the only members of the alliance with confirmed orders for ships of that size, with nine and 11, respectively, according to the IHS orderbook. “This latest order by Yang Ming suggests a certain reluctance to order relatively inflexible mega containerships at a time when the Asia-Europe trade is showing a worrying reduction in trade growth ,” Wilmington said. “Furthermore, the company has reduced its own risk by operating this latest newbuilding order off-balance sheet by entering into a long-term charter with non-operating owner Shoei Kisen.” Most recent ship orders have been contracted by the liner-operators themselves, he said. Yang Ming in July ordered five 14,000 TEU vessels, with options for another five, at Imabari Shipbuilding, and they will also be chartered by Shoei Kisen Kaisha upon delivery in 2018. The carrier's revenue in August was up 9 percent on a year-over-year basis to $346 million, but its revenue for the first eight months this year declined 0.24 percent year-over-year to $2.7 billion. Yang Ming chairman Frank Lu said the container shipping sector will perform better in the fourth quarter of 2015 as the global economy recovers. A version of this story originally appeared on IHS Maritime 360, a sister product of JOC.com within IHS. Contact Angela Yu at Angela.Yu@ihs.com .

Yang Ming opts for five 14,000 TEUs vessels instead of mega-ships

<div class="phx-topic abstract-wrapper">While cargo volume is expected to grow 5.8% next year, the airline association is warning that aircraft supply chain issues will raise costs, possibly limiting that growth.</div>

While cargo volume is expected to grow 5.8% next year, the airline association is warning that aircraft supply chain issues will raise costs, possibly limiting that growth.

Feature image

<div class="phx-topic">The sustained demand that has kept air cargo in peak season mode all year is heading into a difficult 2025 with the capacity outlook clouded by aging aircraft, delivery delays of new planes and a backlog of orders, according to the International Air Transport Association (IATA). Cargo volumes are expected to reach 72.5 million tonnes next year, a 5.8% increase from 2024, IATA noted in its annual industry review this week. But aircraft supply chain issues will raise costs and could limit market growth, warned IATA Director-General Willie Walsh. “Supply chain issues are frustrating every airline with a triple whammy on revenues, costs and environmental performance,” Walsh said. “Load factors are at record highs and there is no doubt that if we had more aircraft they could be profitably deployed, so our revenues are being compromised.” New aircraft are urgently needed to both cater to growing cargo and passenger markets and to replace aging fleets. IATA data shows the average age of the global fleet now stands at a record 14.8 years, up from the 13.6-year average over the past 24 years. Yet aircraft deliveries have fallen sharply from the peak of 1,813 aircraft in 2018. IATA is expecting 1,254 aircraft to have been delivered this year, a 30% shortfall on what was predicted going into 2024. Deliveries in 2025 are forecast to rise to 1,802 planes, well below expectations for 2,293 deliveries, and further downward revisions deliveries for next year are widely expected. On top of the delivery delays, the backlog of unfulfilled orders for new aircraft has reached 17,000 planes, a record high, and IATA said at present delivery rates, that would take 14 years to fulfill -- double the six-year average backlog for the 2013-2019 period. “The aging fleet that airlines are using has higher maintenance costs, burns more fuel, and takes more capital to keep it flying,” Walsh said. “And, on top of this, leasing rates have risen more than interest rates as competition among airlines intensified the scramble to find every way possible to expand capacity. “This is a time when airlines need to be fixing their battered post-pandemic balance sheets, but progress is effectively capped by supply chain issues that manufacturers need to resolve,” he added. <h3>Capacity remains in short supply </h3>Sustained demand out of Asia, driven in part by the robust e-commerce volume on the trans-Pacific and Asia-Europe corridors, is keeping capacity tight and rates at highly elevated levels. The average Shanghai to North Europe spot rate of $5.07 per kilogram this week was the highest in almost two years, while the Shanghai-North America rate of $6.61/kg is the highest so far this year, according to the Baltic Air Index (BAI). Rate benchmarking platform Xeneta shows global air freight volume in November recorded its 13th consecutive month of double-digit growth as load factors hit their highest level since April 2022. In the 11 months through November, demand has increased by more than 12% while available capacity has grown just 4.8% To serve the high demand out of Asia, airlines are repositioning freighters from other trade lanes <a href="https://www.joc.com/article/trans-atlantic-air-cargo-rates-take-off-as-capacity-shifts-to-asia-5904256">such as the trans-Atlantic</a>, where rates are soaring as demand outstrips available capacity. Managing the air cargo capacity shortage on key trade lanes is also a challenge for forwarders that are keeping up with demand by chartering freighters. “We have proactively secured extra capacity on charters and partial charters, mainly for e-commerce shipments to Europe and the Middle East,” Loïc Gay, deputy COO at CEVA Logistics, told the Journal of Commerce Friday. “During peak season in October and November, we also arranged ad-hoc charters from China to the US and Europe to accommodate the increased demand,” he added. “We plan to do the same again in January before the Chinese New Year.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

The sustained demand that has kept air cargo in peak season mode all year is heading into a difficult 2025 with the capacity outlook clouded by aging aircraft, delivery delays of new planes and a backlog of orders, according to the International Air Transport Association (IATA). Cargo volumes are expected to reach 72.5 million tonnes next year, a 5.8% increase from 2024, IATA noted in its annual industry review this week. But aircraft supply chain issues will raise costs and could limit market growth, warned IATA Director-General Willie Walsh. “Supply chain issues are frustrating every airline with a triple whammy on revenues, costs and environmental performance,” Walsh said. “Load factors are at record highs and there is no doubt that if we had more aircraft they could be profitably deployed, so our revenues are being compromised.” New aircraft are urgently needed to both cater to growing cargo and passenger markets and to replace aging fleets. IATA data shows the average age of the global fleet now stands at a record 14.8 years, up from the 13.6-year average over the past 24 years. Yet aircraft deliveries have fallen sharply from the peak of 1,813 aircraft in 2018. IATA is expecting 1,254 aircraft to have been delivered this year, a 30% shortfall on what was predicted going into 2024. Deliveries in 2025 are forecast to rise to 1,802 planes, well below expectations for 2,293 deliveries, and further downward revisions deliveries for next year are widely expected. On top of the delivery delays, the backlog of unfulfilled orders for new aircraft has reached 17,000 planes, a record high, and IATA said at present delivery rates, that would take 14 years to fulfill -- double the six-year average backlog for the 2013-2019 period. “The aging fleet that airlines are using has higher maintenance costs, burns more fuel, and takes more capital to keep it flying,” Walsh said. “And, on top of this, leasing rates have risen more than interest rates as competition among airlines intensified the scramble to find every way possible to expand capacity. “This is a time when airlines need to be fixing their battered post-pandemic balance sheets, but progress is effectively capped by supply chain issues that manufacturers need to resolve,” he added. Capacity remains in short supply Sustained demand out of Asia, driven in part by the robust e-commerce volume on the trans-Pacific and Asia-Europe corridors, is keeping capacity tight and rates at highly elevated levels. The average Shanghai to North Europe spot rate of $5.07 per kilogram this week was the highest in almost two years, while the Shanghai-North America rate of $6.61/kg is the highest so far this year, according to the Baltic Air Index (BAI). Rate benchmarking platform Xeneta shows global air freight volume in November recorded its 13th consecutive month of double-digit growth as load factors hit their highest level since April 2022. In the 11 months through November, demand has increased by more than 12% while available capacity has grown just 4.8% To serve the high demand out of Asia, airlines are repositioning freighters from other trade lanes such as the trans-Atlantic , where rates are soaring as demand outstrips available capacity. Managing the air cargo capacity shortage on key trade lanes is also a challenge for forwarders that are keeping up with demand by chartering freighters. “We have proactively secured extra capacity on charters and partial charters, mainly for e-commerce shipments to Europe and the Middle East,” Loïc Gay, deputy COO at CEVA Logistics, told the Journal of Commerce Friday. “During peak season in October and November, we also arranged ad-hoc charters from China to the US and Europe to accommodate the increased demand,” he added. “We plan to do the same again in January before the Chinese New Year.” Contact Greg Knowler at greg.knowler@spglobal.com.

Capacity shortage, aging fleet to clip air cargo wings in 2025: IATA

<div class="phx-topic abstract-wrapper">A partnership between C.H. Robinson Worldwide and Highway seeks to push carrier ID systems deeper into truck brokerage networks as shippers demand action to prevent cargo theft by fraudsters.</div>

A partnership between C.H. Robinson Worldwide and Highway seeks to push carrier ID systems deeper into truck brokerage networks as shippers demand action to prevent cargo theft by fraudsters.

<div class="phx-topic">US shippers losing freight to rising cargo theft and fraud are pushing freight brokers to ensure they work only with legitimate motor carriers, and brokers are responding. C.H. Robinson Worldwide, the largest truck freight broker in North America, is partnering with technology firm Highway to raise its security standards and improve processes it has built to verify a carrier’s identity and prevent fraud during the onboarding of new carriers. The partnership, announced Thursday, comes as a growing number of shippers express concern about <a href="https://www.joc.com/article/north-american-cargo-crime-takes-big-jump-as-thieves-get-more-organized-5710505">rising levels of freight fraud</a> accomplished using false motor carrier and broker identification — often employing both together in <a href="https://www.joc.com/article/us-shippers-urged-to-use-technology-to-fight-cargo-crime-fraud-5219760">complicated schemes</a>. For instance, criminal gangs increasingly use fake carrier IDs to get loads from legitimate brokers and then use fake broker IDs to re-broker loads to legitimate carriers. Loads are then redirected to new locations, according to Traveler’s Insurance. ”This partnership reaffirms our commitment to keeping our carriers and customers safe from fraud,” Cody Griggs, C.H. Robinson’s vice president of digital brokerage, said in a statement. Highway is part of an expanding marketplace that includes companies such as FreightGuard, MyCarrier Portal and CarrierAssure, among others. Highway has announced partnerships with other brokers, including NFI Industries and Taylor Logistics. Shippers are increasingly asking their brokers to adopt carrier verification technology, with some pushing for the use of systems such as Highway in contract talks. Some shippers have told the Journal of Commerce they are reducing their use of brokers to avoid fraud. C.H. Robinson said it will integrate Highway’s real-time carrier identity engine with detailed operational data for individual carriers, including lane preferences and equipment types. The goal is to first ensure motor carriers are who they claim to be, and then to connect shippers with carriers that match their needs quickly and safely, Minnesota-based C.H. Robinson said. The partnership is a sign that even the biggest brokers and third-party logistics providers are turning to outside tools and partnerships to prove to shipper customers they are tightening security practices and vetting carriers more effectively. With cargo theft increasingly tied to identity fraud rather than direct “smash-and-grab” crime at truck stops, shippers are increasingly pressing their broker partners to get better at verifying carriers are who they claim to be. That can be a daunting, multi-layered task. The number of tools and cargo security-focused firms is proliferating alongside cargo theft, which has grown by double-digits since the COVID-19 pandemic, led by an increase in fraudulent pickups at shipper docks. Verisk security subsidiary CargoNet recorded 776 cargo theft events across the US and Canada in the third quarter, a 14% increase from the 2023 third quarter. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.Senior Editor for Technology Eric Johnson also contributed to this report.</div>

US shippers losing freight to rising cargo theft and fraud are pushing freight brokers to ensure they work only with legitimate motor carriers, and brokers are responding. C.H. Robinson Worldwide, the largest truck freight broker in North America, is partnering with technology firm Highway to raise its security standards and improve processes it has built to verify a carrier’s identity and prevent fraud during the onboarding of new carriers. The partnership, announced Thursday, comes as a growing number of shippers express concern about rising levels of freight fraud accomplished using false motor carrier and broker identification — often employing both together in complicated schemes . For instance, criminal gangs increasingly use fake carrier IDs to get loads from legitimate brokers and then use fake broker IDs to re-broker loads to legitimate carriers. Loads are then redirected to new locations, according to Traveler’s Insurance. ”This partnership reaffirms our commitment to keeping our carriers and customers safe from fraud,” Cody Griggs, C.H. Robinson’s vice president of digital brokerage, said in a statement. Highway is part of an expanding marketplace that includes companies such as FreightGuard, MyCarrier Portal and CarrierAssure, among others. Highway has announced partnerships with other brokers, including NFI Industries and Taylor Logistics. Shippers are increasingly asking their brokers to adopt carrier verification technology, with some pushing for the use of systems such as Highway in contract talks. Some shippers have told the Journal of Commerce they are reducing their use of brokers to avoid fraud. C.H. Robinson said it will integrate Highway’s real-time carrier identity engine with detailed operational data for individual carriers, including lane preferences and equipment types. The goal is to first ensure motor carriers are who they claim to be, and then to connect shippers with carriers that match their needs quickly and safely, Minnesota-based C.H. Robinson said. The partnership is a sign that even the biggest brokers and third-party logistics providers are turning to outside tools and partnerships to prove to shipper customers they are tightening security practices and vetting carriers more effectively. With cargo theft increasingly tied to identity fraud rather than direct “smash-and-grab” crime at truck stops, shippers are increasingly pressing their broker partners to get better at verifying carriers are who they claim to be. That can be a daunting, multi-layered task. The number of tools and cargo security-focused firms is proliferating alongside cargo theft, which has grown by double-digits since the COVID-19 pandemic, led by an increase in fraudulent pickups at shipper docks. Verisk security subsidiary CargoNet recorded 776 cargo theft events across the US and Canada in the third quarter, a 14% increase from the 2023 third quarter. Contact William B. Cassidy at bill.cassidy@spglobal.com . Senior Editor for Technology Eric Johnson also contributed to this report.

Broker, tech firm partner to root out fake motor carriers, fight fraud

<div class="phx-topic abstract-wrapper">Rail-mounted gantry cranes can reduce labor requirements and significantly increase the throughput of marine terminals, but those gains still come at a steep cost, listeners of the Journal of Commerce’s Port Performance North America webcast heard.</div>

Rail-mounted gantry cranes can reduce labor requirements and significantly increase the throughput of marine terminals, but those gains still come at a steep cost, listeners of the Journal of Commerce’s Port Performance North America webcast heard.

<div class="phx-topic">Rail-mounted gantry cranes — the sticking point in stalled contract negotiations between the International Longshoremen’s Association (ILA) and maritime employers at US East and Gulf coast ports — can cut a terminal’s labor requirements by half, according to a port planner. But the downside, says Mark Sisson, senior port planner/analyst at the infrastructure consulting firm AECOM, is that the installation of RMGs requires the costly revamping of a terminal’s footprint, in addition to the invariable opposition from labor unions. “There is labor resistance, even when allowed by contract,” Sisson told the Journal of Commerce’s Port Performance North America webcast Wednesday. RMGs, two of which will straddle a long row of stacked containers, move boxes forward and backward between the berth and truck lanes. As truckers enter the terminal, the RMG picks out the box from each stack and delivers it to the front of the row for mounting on chassis, or in reverse for loading operations. RMGs are deployed at two semi-automated container terminals in Virginia and one in New Jersey, and at two fully automated terminals in Los Angeles-Long Beach. The ILA has declared that the spread of RMGs to other terminals on the East and Gulf coasts <a href="https://www.joc.com/article/ila-targets-rail-mounted-gantry-cranes-amid-impasse-in-port-labor-talks-5874742">is the line in the sand in their contentious contract negotiations with employers</a> as the Jan. 15 deadline for an agreement approaches. In a statement last week, ILA Executive Vice President Dennis Daggett said the union broke off talks with the US Maritime Alliance (USMX) for a new master contract over what he said was USMX’s push for “semi-automation” language in the new contract. “The ILA is not against progress, innovation or modernization, but we cannot support technology that jeopardizes jobs, threatens national security and puts the future of the workforce at risk,” Daggett said. <h3>Increased terminal throughput, reduced labor costs </h3>Sisson told the Port Performance webcast that RMGs, which run on tracks and replace the less-efficient rubber-tire gantry cranes (RTGs) that are used at manually operated terminals, result in lower labor costs, more predictable operations and increased safety, and allow for more effective truck appointment systems and faster truck turn times. Converting a conventional terminal to an RMG operation can be an important tool for high-volume, space-constrained terminals that want to significantly increase container throughput on the existing footprint, Sisson said. RMGs operate around the clock, “grooming” the yard at night by moving containers that will be picked up by truckers the next day to the front of the stack, he said. In order to convert an existing terminal to an automated or semi-automated one, the terminal must be completely revamped, with the foundation dug up and the RMG tracks installed and positioned perpendicular between the vessel and the truck gates to facilitate rapid movement of trucks into and out of the facility. In a traditional operation with RTGs, the container stacks are positioned horizontally between the vessel and the gates. That requires each truck to be driven deep into the terminal in search of the container it was dispatched to retrieve. Long Beach Container Terminal (LBCT) in 2021 completed construction of its $1.4 billion fully automated facility, doubling its annual throughput capacity to 3 million TEUs. In 2014, Global Container Terminals (GCT) invested $325 million to expand its Bayonne facility in New Jersey by 70 acres and install 20 RMGs, more than doubling its effective capacity to 1.1 million TEUs. Sisson noted that even space-constrained terminals can increase their capacity with truck-served near-dock yards for temporary storage of inbound containers, as has been done in Southern California, and through off-dock rail-served facilities, as the Virginia and Georgia port authorities have done. BNSF Railway intends to develop a rail-served transload facility in Barstow, California, about 100 miles from the ports of Los Angeles and Long Beach, he said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Rail-mounted gantry cranes — the sticking point in stalled contract negotiations between the International Longshoremen’s Association (ILA) and maritime employers at US East and Gulf coast ports — can cut a terminal’s labor requirements by half, according to a port planner. But the downside, says Mark Sisson, senior port planner/analyst at the infrastructure consulting firm AECOM, is that the installation of RMGs requires the costly revamping of a terminal’s footprint, in addition to the invariable opposition from labor unions. “There is labor resistance, even when allowed by contract,” Sisson told the Journal of Commerce’s Port Performance North America webcast Wednesday. RMGs, two of which will straddle a long row of stacked containers, move boxes forward and backward between the berth and truck lanes. As truckers enter the terminal, the RMG picks out the box from each stack and delivers it to the front of the row for mounting on chassis, or in reverse for loading operations. RMGs are deployed at two semi-automated container terminals in Virginia and one in New Jersey, and at two fully automated terminals in Los Angeles-Long Beach. The ILA has declared that the spread of RMGs to other terminals on the East and Gulf coasts is the line in the sand in their contentious contract negotiations with employers as the Jan. 15 deadline for an agreement approaches. In a statement last week, ILA Executive Vice President Dennis Daggett said the union broke off talks with the US Maritime Alliance (USMX) for a new master contract over what he said was USMX’s push for “semi-automation” language in the new contract. “The ILA is not against progress, innovation or modernization, but we cannot support technology that jeopardizes jobs, threatens national security and puts the future of the workforce at risk,” Daggett said. Increased terminal throughput, reduced labor costs Sisson told the Port Performance webcast that RMGs, which run on tracks and replace the less-efficient rubber-tire gantry cranes (RTGs) that are used at manually operated terminals, result in lower labor costs, more predictable operations and increased safety, and allow for more effective truck appointment systems and faster truck turn times. Converting a conventional terminal to an RMG operation can be an important tool for high-volume, space-constrained terminals that want to significantly increase container throughput on the existing footprint, Sisson said. RMGs operate around the clock, “grooming” the yard at night by moving containers that will be picked up by truckers the next day to the front of the stack, he said. In order to convert an existing terminal to an automated or semi-automated one, the terminal must be completely revamped, with the foundation dug up and the RMG tracks installed and positioned perpendicular between the vessel and the truck gates to facilitate rapid movement of trucks into and out of the facility. In a traditional operation with RTGs, the container stacks are positioned horizontally between the vessel and the gates. That requires each truck to be driven deep into the terminal in search of the container it was dispatched to retrieve. Long Beach Container Terminal (LBCT) in 2021 completed construction of its $1.4 billion fully automated facility, doubling its annual throughput capacity to 3 million TEUs. In 2014, Global Container Terminals (GCT) invested $325 million to expand its Bayonne facility in New Jersey by 70 acres and install 20 RMGs, more than doubling its effective capacity to 1.1 million TEUs. Sisson noted that even space-constrained terminals can increase their capacity with truck-served near-dock yards for temporary storage of inbound containers, as has been done in Southern California, and through off-dock rail-served facilities, as the Virginia and Georgia port authorities have done. BNSF Railway intends to develop a rail-served transload facility in Barstow, California, about 100 miles from the ports of Los Angeles and Long Beach, he said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Significant advantages offered by RMGs come with costly challenges

<div class="phx-topic abstract-wrapper">The two companies, already building a temperature-controlled warehouse at the site of CPKC’s intermodal terminal in Kansas City, Missouri, are looking to replicate that business model south of the border. </div>

The two companies, already building a temperature-controlled warehouse at the site of CPKC’s intermodal terminal in Kansas City, Missouri, are looking to replicate that business model south of the border.

<div class="phx-topic">Canadian Pacific Kansas City (CPKC) and warehousing provider Americold said Thursday they are looking for ways to expand their existing partnership into Mexico, a move that would provide an alternative to trucks for shippers moving temperature-controlled freight between Mexico and the US.“We are excited to build on our successful strategic collaboration with Americold with new facilities in Mexico as we leverage the ... reach of our North American network to support the cold storage supply chain,” CPKC CEO Keith Creel said in a statement.No details of any potential developments in Mexico were disclosed.CPKC and Americold in February announced they would partner on a $127 million, 335,000-square-foot temperature-controlled facility in Kansas City, Missouri, adjacent to the Class I railroad’s intermodal terminal there. The facility is due to open in mid-2025, supporting importers and exporters of temperature-sensitive food shipped between Mexico and the US.Now the two companies are looking to replicate that model south of the border, where CPKC operates terminals in Monterrey, San Luis Potosi, and Toluca.“Exploring opportunities in Mexico is a natural continuation of this collaboration as we look at ways we can attack inefficiencies in the current cold chain,” Americold CEO George Chappelle said in the statement.Co-locating a temperature-controlled facility at the site of an existing intermodal terminal provides a few distinct advantages that might be attractive to shippers. Given the truck weight limits in the US and Mexico, an average temperature-controlled truck can handle about 40,000-45,000 lbs. of cargo, while a container using the CPKC-Americold option can handle between 50,000 and 60,000 lbs. of cargo, according to Ted Prince, CEO of Tri-Cities Intermodal, a reefer intermodal provider.With a greater payload fitting inside the container, CPKC will be able to haul the same amount of cargo as trucking using fewer containers, thus potentially lowering costs for a shipper.The potential new facilities in Mexico come after CPKC last year expanded its cold chain equipment assets by adding 1,000 new 53-foot refrigerated intermodal containers to its network. The equipment will increase business on <a href="https://www.joc.com/article/cpkc-adds-new-reefer-containers-to-mexico-us-service-5216882">CPKC’s Mexico Midwest Express (MMX) intermodal service</a> — North America’s first single-line rail service for cold chain cargo between Mexico and Chicago, which stops in Kansas City. Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>. Senior Editor Ari Ashe contributed to this report.</div>

Canadian Pacific Kansas City (CPKC) and warehousing provider Americold said Thursday they are looking for ways to expand their existing partnership into Mexico, a move that would provide an alternative to trucks for shippers moving temperature-controlled freight between Mexico and the US. “We are excited to build on our successful strategic collaboration with Americold with new facilities in Mexico as we leverage the ... reach of our North American network to support the cold storage supply chain,” CPKC CEO Keith Creel said in a statement. No details of any potential developments in Mexico were disclosed. CPKC and Americold in February announced they would partner on a $127 million, 335,000-square-foot temperature-controlled facility in Kansas City, Missouri, adjacent to the Class I railroad’s intermodal terminal there. The facility is due to open in mid-2025, supporting importers and exporters of temperature-sensitive food shipped between Mexico and the US. Now the two companies are looking to replicate that model south of the border, where CPKC operates terminals in Monterrey, San Luis Potosi, and Toluca. “Exploring opportunities in Mexico is a natural continuation of this collaboration as we look at ways we can attack inefficiencies in the current cold chain,” Americold CEO George Chappelle said in the statement. Co-locating a temperature-controlled facility at the site of an existing intermodal terminal provides a few distinct advantages that might be attractive to shippers. Given the truck weight limits in the US and Mexico, an average temperature-controlled truck can handle about 40,000-45,000 lbs. of cargo, while a container using the CPKC-Americold option can handle between 50,000 and 60,000 lbs. of cargo, according to Ted Prince, CEO of Tri-Cities Intermodal, a reefer intermodal provider. With a greater payload fitting inside the container, CPKC will be able to haul the same amount of cargo as trucking using fewer containers, thus potentially lowering costs for a shipper. The potential new facilities in Mexico come after CPKC last year expanded its cold chain equipment assets by adding 1,000 new 53-foot refrigerated intermodal containers to its network. The equipment will increase business on CPKC’s Mexico Midwest Express (MMX) intermodal service — North America’s first single-line rail service for cold chain cargo between Mexico and Chicago, which stops in Kansas City. Contact Laura Robb at laura.robb@spglobal.com . Senior Editor Ari Ashe contributed to this report.

CPKC, Americold say to expand cold chain partnership into Mexico

<div class="phx-topic abstract-wrapper">Airlines repositioning freighter aircraft from the trans-Atlantic to the more profitable Asia market combined with a seasonal decline in belly cargo on the Europe-US route have pushed rates on the trade lane near a two-year high.</div>

Airlines repositioning freighter aircraft from the trans-Atlantic to the more profitable Asia market combined with a seasonal decline in belly cargo on the Europe-US route have pushed rates on the trade lane near a two-year high.

<div class="phx-topic">Westbound trans-Atlantic air cargo rates are rocketing higher as airlines move large amounts of capacity from the North Europe-US corridor to capitalize on the more lucrative export lanes out of Asia. The removal and redeployment of freighter capacity from the trans-Atlantic follows a seasonal decline in belly cargo space on passenger planes as airlines pared down winter flight schedules, sending spot rates to levels not seen in almost two years. Average spot rates from the North Europe hub of Frankfurt to North America hit $3.36 per kilogram this week, up 27% from last week and 55% higher than two weeks ago, according to the Baltic Air Index (BAI). The last time rates were this high was March 13, 2023, at $3.53/kg. Rob Bonk, director of air freight at C.H. Robinson, said the spike in rates was coming on top of already high market prices, with demand on the westbound trade lane filling all available space. “The elevated demand and rates are due to several factors, including a seasonal decline in passenger air travel, the rerouting of freighter aircraft to support routes out of Asia and shippers frontloading and converting ocean cargo to air freight in anticipation of a potential US port strike in January,” Bonk told the Journal of Commerce. “The lack of direct flights into other regions is also driving demand on the trans-Atlantic,” he added. “For example, with aircraft moved to support Asian exports, there are fewer planes flying directly between Europe and South America. Consequently, more cargo from Europe is forced to move via the US, further increasing demand on that trade.” Christian Nielitz, vice president of global air services at Crane Worldwide Logistics, put a figure to the capacity shift of freighters that are being withdrawn from the trans-Atlantic and redeployed in Asia. “It is estimated that these shifts have resulted in approximately 1.5 million kilograms of capacity being removed from the market,” he told the Journal of Commerce Wednesday. Another trend was highlighted by Nielitz, who said some US-bound air freight from Asia was being routed through Europe because rates via the westbound route were currently more competitive than the direct trans-Pacific alternative. <h3>Decline in belly space </h3>Ryan Keyrouse, CEO of air cargo consultancy Rotate, said the reduction in trans-Atlantic capacity as freighters shift planes to Asia to take advantage of stronger yields and route profitability was being exacerbated by the decline in available belly space. “Passenger airlines reduced trans-Atlantic belly capacity by 13% in Week 44 [the end of October], driven by reductions from the UK, Germany, France, Netherlands, Ireland and Switzerland,” he noted. Glyn Hughes, director general of The International Air Cargo Association (Tiaca), said the repositioned freighters were to satisfy strong demand on the trans-Pacific and Asia-Europe corridors, much of which is driven by e-commerce. “This has resulted in some trans-Atlantic freighter operations being stopped,” Hughes said, although he added that if the high rates from Europe to the US were maintained, it could result in a return of some of the repositioned capacity. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Westbound trans-Atlantic air cargo rates are rocketing higher as airlines move large amounts of capacity from the North Europe-US corridor to capitalize on the more lucrative export lanes out of Asia. The removal and redeployment of freighter capacity from the trans-Atlantic follows a seasonal decline in belly cargo space on passenger planes as airlines pared down winter flight schedules, sending spot rates to levels not seen in almost two years. Average spot rates from the North Europe hub of Frankfurt to North America hit $3.36 per kilogram this week, up 27% from last week and 55% higher than two weeks ago, according to the Baltic Air Index (BAI). The last time rates were this high was March 13, 2023, at $3.53/kg. Rob Bonk, director of air freight at C.H. Robinson, said the spike in rates was coming on top of already high market prices, with demand on the westbound trade lane filling all available space. “The elevated demand and rates are due to several factors, including a seasonal decline in passenger air travel, the rerouting of freighter aircraft to support routes out of Asia and shippers frontloading and converting ocean cargo to air freight in anticipation of a potential US port strike in January,” Bonk told the Journal of Commerce. “The lack of direct flights into other regions is also driving demand on the trans-Atlantic,” he added. “For example, with aircraft moved to support Asian exports, there are fewer planes flying directly between Europe and South America. Consequently, more cargo from Europe is forced to move via the US, further increasing demand on that trade.” Christian Nielitz, vice president of global air services at Crane Worldwide Logistics, put a figure to the capacity shift of freighters that are being withdrawn from the trans-Atlantic and redeployed in Asia. “It is estimated that these shifts have resulted in approximately 1.5 million kilograms of capacity being removed from the market,” he told the Journal of Commerce Wednesday. Another trend was highlighted by Nielitz, who said some US-bound air freight from Asia was being routed through Europe because rates via the westbound route were currently more competitive than the direct trans-Pacific alternative. Decline in belly space Ryan Keyrouse, CEO of air cargo consultancy Rotate, said the reduction in trans-Atlantic capacity as freighters shift planes to Asia to take advantage of stronger yields and route profitability was being exacerbated by the decline in available belly space. “Passenger airlines reduced trans-Atlantic belly capacity by 13% in Week 44 [the end of October], driven by reductions from the UK, Germany, France, Netherlands, Ireland and Switzerland,” he noted. Glyn Hughes, director general of The International Air Cargo Association (Tiaca), said the repositioned freighters were to satisfy strong demand on the trans-Pacific and Asia-Europe corridors, much of which is driven by e-commerce. “This has resulted in some trans-Atlantic freighter operations being stopped,” Hughes said, although he added that if the high rates from Europe to the US were maintained, it could result in a return of some of the repositioned capacity. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic air cargo rates take off as capacity shifts to Asia

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Choose a subscription plan that works best for you

Subscribe Now - Anonymous - Wide Box

SUBSCRIBE TODAY

Use code STSW20 at checkout and save 20% on first year of any annual subscription plan

Subscribe Now - Free Trials - Wide Box

SUBSCRIBE AND SAVE 20%

Use code CM24W695 at checkout and upgrade to Gold for just $695! Valid for first year of subscription. Offer ends December 8.

Upgrade Subscription - Wide Box

CYBER MONDAY SALE EXTENDED

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

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

SMC3rates_shutterstock_5247046 (1).jpg

Filling the Supply Chain Education Gap with LTL Education Courses

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

Subscribe Now - Anonymous - Offer Box

Subscribe Today

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

TPM Discount - Gold 

20% OFF ON TPM25

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


Subscribe Now - Free Trials - Offer Box

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

Free Trial - Offer Box

Free Trial

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

Upgrade Subscription - Offer Box

Upgrade Subscription

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

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

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

Breakbulk Conference - Rectangle Box

Attend Breakbulk25

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

TPM Conference - Rectangle Box

Attend TPM25

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

Gateway - Rectangle Box

The latest container shipping news and analysis of ocean container shipping, logistics, supply chains, technology solutions and end-to-end connectivity. Coverage includes the movement of containerized cargo handled by marine terminals and container ports, depots, container lines, drayage, consignees, importers and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers. The Journal of Commerce's container shipping news includes news from the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South America trades, and intra-Asia trades.

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

Container Shipping News | Journal of Commerce

Breakbulk News shipping | Journal of Commerce

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

Port News | Journal of Commerce

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

Latest News

More News & Analysis

Capacity shortage, aging fleet to clip air cargo wings in 2025: IATA

Broker, tech firm partner to root out fake motor carriers, fight fraud

Significant advantages offered by RMGs come with costly challenges