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<div class="phx-topic abstract-wrapper">The Port Authority of New York and New Jersey is looking for additional land well ahead of dredging that would bring larger ships and double the freight coming into the busiest US East Coast port over the coming two decades.</div>

The Port Authority of New York and New Jersey is looking for additional land well ahead of dredging that would bring larger ships and double the freight coming into the busiest US East Coast port over the coming two decades.

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<div>Marine terminal operators in the Port of New York and New Jersey are planning new capacity for ultra-large container ships once new dredging is approved that would make New York-New Jersey one of the deepest seaports on the US East Coast. But landside capacity remains tight as shippers tie up existing terminal space with long-dwelling imports and new yard space means reclaiming brownfield sites, including an old Ivory Soap plant, that are part of the industrial legacy surrounding the port. The US Army Corps of Engineers is seeking authorization from the US Congress for dredging the port’s waterways down to...

Marine terminal operators in the Port of New York and New Jersey are planning new capacity for ultra-large container ships once new dredging is approved that would make New York-New Jersey one of the deepest seaports on the US East Coast. But landside capacity remains tight as shippers tie up existing terminal space with long-dwelling imports and new yard space means reclaiming brownfield sites, including an old Ivory Soap plant, that are part of the industrial legacy surrounding the port. The US Army Corps of Engineers is seeking authorization from the US Congress for dredging the port’s waterways down to 55 feet, down from their current 50 feet depth, Bethann Rooney, port director for the Port Authority of New York and New Jersey (PANYNJ), said at Baruch College's World Trade Week NYC event held in Manhattan in early May. Rooney said at the time it could be released within a month or so. If approved, the dredging would make it possible for “super” post-Panamax ships of 20,000 TEU to call New York-New Jersey. So far, the largest ship that called the US East Coast was the 16,000 TEU CMA CGM Marco Polo. “Ocean carriers are asking us today about an 18,000 and a 21,000 TEU ship coming in,” Rooney said. “Hopefully, we will have the authorization shortly to deepen the channels even further to 55 feet to handle the current and future generation of ships.” There is no timeline on when the dredging would be complete. Rooney said, though, it took two decades to dredge 38 miles of New York-New Jersey waterways to the current 50-foot depth, which started when the largest ships to call New York-New Jersey was 6,500-TEU. But once the dredging was done, the largest ship on the water was 14,000-TEU, Rooney said. “As soon as we were done dredging, even before they were done, they were too shallow,” she added. Other ports up and down the East Coast are also planning for the arrival of super-post-Panamax ships. The Port of Charleston is expected to finish dredging its inner harbor to 52 feet and its outer channel to 54 feet this year. Last year, the Port of Virginia received a down payment from Congress on its dredging project that could bring its depth to 55 feet by 2024 . Terminals to add berths, cranes Along with the dredging, Rooney said the port’s marine terminal operators are investing in new cranes and other projects that will be needed for larger ships. Maher Terminals applied to the New Jersey Department of Environmental Protection in March 2022 for a permit to install new cranes at Berth 82 on the terminal’s eastern edge along Newark Bay. Maher will install three cranes capable of handling ships up to 20,000 TEU, an October 2021 press release from industrial manufacturer Liebherr said. A NJDEP spokesperson said approval of the permit is still pending. GCT Bayonne, which started dredging in October 2021 for a new berth that can handle 18,000-TEU ships , also plans to redevelop an existing 70-acre container storage yard, according to its application with the NJDEP. After completing a capacity expansion in 2020, Port Newark Container Terminal received a permit last year from PANYNJ for accessing one of the port’s public berths, which has no container cranes, for studying a future capacity increase. Long-dwelling imports take up port space Container yard space at New York-New Jersey is another challenge ahead of handling large ships. Port wide, imports have been dwelling about 10 to 14 days on average, which is double the typical dwell time seen last year. Those imports tie up valuable space at marine terminals and result in berth delays for arriving vessels. A maritime industry rule of thumb is that each additional day of dwell translates approximately into the need for 25 percent more space for containers. Rooney said spiraling warehousing costs in the region mean some large shippers would rather pay demurrage for keeping their goods at the port. “Containers are cheap warehousing,” Rooney said. “It’s not unusual to see thousands of containers sitting more than a month.” As a short-term solution for long-dwelling imports, eight acres of additional space split between an off-dock container yard and chassis depot were made available in May to shippers that want to move containers out of the marine terminals, according to a statement from the Association of Bi-State Motor Carriers. Likewise, PANYNJ sought interest in redeveloping a 4.4-acre, unpaved gravel site along the north side of the Port Newark terminal for the storage of containers, according to a notice soliciting bids for the site. The port authority’s notice said that the site is part of a “BP-Marine spill petroleum clean-up … arising from historic operations.” In addition to fencing and lighting, the site will require that any paving plans accord with the NJDEP’s plan for site remediation. Port Ivory offers large, undeveloped space PANYNJ hopes to open another 66 acres for terminal space at the Port Ivory site on Staten Island, so called because it is part of a former Procter & Gamble property where Ivory Soap and other products were made until the company abandoned the property in 1991. The port authority took over the land in 2000. The New York State Department of Environmental Conservation (NYSDEC) certified in 2002 that the site did not contain “a consequential amount of hazardous waste,” according to an engineering report on the site. However, the “presence of contaminants at concentrations in excess of current NYSDEC guidelines” required a voluntary clean-up program and ongoing monitoring, the report said. Port Ivory consists of two parts known as Parcel B and Parcel C. The 27-acre Parcel B didn’t require further remediation after the NYSDEC certified it as contaminant free in 2017. But the site requires extensive redevelopment, including demolishing two abandoned warehouses and repaving, before it can handle container truck traffic. Following a solicitation of interest issued last year for Parcel B, PANYNJ expected to receive proposed bids for the site in January 2022. The port authority declined to comment on whether it received any bidders or proposals for redeveloping Parcel B, which abuts the western edge of the GCT New York container terminal. Parcel C, which is close to 39 acres, encompasses a dirt field and tidal marshland along the Arthur Kill waterway that separates Staten Island from New Jersey, along the northern side of CGT New York. The site, which includes a groundwater monitoring well, is under a management plan from the NYSDEC that requires the agency’s approval before any further development takes place. In November 2021, PANYNJ applied to the NYSDEC for a change-in-use permit for Parcel C, which an NYSDEC spokesperson said is being reviewed. Although specific plans for the site were not listed in the application, Port Ivory is currently storing a limited number of empty containers, according to one source. Rooney didn't address any specific projects during her address in May, but she noted that the port expects to see annual volumes rise to 17 million TEU by 2050, almost double its throughput in 2021, necessitating to start projects that will provide the capacity needed for those volumes. “We are preparing for that and ... have to plan for that because infrastructure doesn’t get built overnight,” she said. Contact Michael Angell at michael.angell@ihsmarkit.com and follow him on Twitter: @michael_angell . 

NY-NJ port lays groundwork for larger ships ahead of dredging

<div class="phx-topic abstract-wrapper">Vancouver, Canada’s busiest container port, faces the possibility of a shutdown unless maritime employers and longshore foremen reach a new contract before a Monday deadline. </div>

Vancouver, Canada’s busiest container port, faces the possibility of a shutdown unless maritime employers and longshore foremen reach a new contract before a Monday deadline.

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<div class="phx-topic">British Columbia’s maritime employers said Friday they are prepared to lock out longshore foremen by Monday after their union provided a notice to strike, a move that would shut down container operations at Canada’s busiest port The British Columbia Maritime Employers Association (BCMEA) said in a statement it had received a 72-hour notice of a strike from the International Longshore and Warehouse Union 514, representing about 730 longshore foremen throughout the province. In response, the BCMEA said it would “take defensive action in the form of a coastwide lockout” of Local 514 members. “This coastwide lockout will shut down all cargo operations of BCMEA member companies across the province,” the statement said, adding that cruise and grain vessels will still be worked. “We did not arrive at this decision lightly,” BCMEA said. “This regretful action follows thorough consideration of ILWU Local 514’s continued intransigence and their provocative decision to proceed with another strike notice, despite being found to have been bargaining in bad faith on three occasions.” Weekend talks to avert a strike have not been scheduled. The potential for the Port of Vancouver, Canada’s largest container port, to shut down comes as the country already faces container capacity constraints on its East Coast. Longshoremen have <a href="https://www.joc.com/article/montreal-warns-of-vessel-diversions-as-strike-against-msc-terminals-begins-5783311">stopped working at two container terminals at the Port of Montreal</a>, knocking about half of the capacity offline at Canada’s second-busiest container gateway. The Canada Industrial Relations Board (CIRB) last week ruled that <a href="https://www.joc.com/article/bc-longshore-foremen-bargained-in-bad-faith-canada-labor-board-5773465">Local 514 bargained in bad faith when it held a strike vote targeting just Vancouver’s DP World Centerm facility</a>. Union foremen have been upset about the potential for <a href="https://www.joc.com/article/dp-worlds-centerm-project-heart-employer-union-dispute-vancouver_20240517.html">staffing changes due to the introduction of semi-automated cranes at the facility</a>. A coastwide lockout or strike would also shut down DP World’s Fairview container terminal in Prince Rupert and the GCT Deltaport and Vanterm terminals in Vancouver, effectively shuttering 5 million TEUs of terminal capacity along North America’s West Coast. Four container ships are scheduled to arrive at the Port of Vancouver during the coming week, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. Another three are scheduled to call Prince Rupert. Should a lockout or strike occur at Vancouver and Prince Rupert, it could put more pressure on the ports of Seattle and Tacoma, which have been <a href="https://www.joc.com/article/pnw-ports-say-ready-for-strike-linked-cargo-diversions-from-east-gulf-coasts-5736661">digging out from higher-than-anticipated volumes from cargo diversions linked to the brief longshore strike along the US East and Gulf coasts</a>. Local 514 has been working without a collective bargaining agreement since March 2023. The BCMEA said it met this week with Local 514 for talks overseen by government mediators. The employer’s group said that its “balanced and competitive final offer” to longshore foremen of a 19.2% raise over four years would bring median wages to C$293,617 per year. “It will provide all forepersons with significant gains in wages and benefits without concession requests from employers,” the BCMEA said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

British Columbia’s maritime employers said Friday they are prepared to lock out longshore foremen by Monday after their union provided a notice to strike, a move that would shut down container operations at Canada’s busiest port The British Columbia Maritime Employers Association (BCMEA) said in a statement it had received a 72-hour notice of a strike from the International Longshore and Warehouse Union 514, representing about 730 longshore foremen throughout the province. In response, the BCMEA said it would “take defensive action in the form of a coastwide lockout” of Local 514 members. “This coastwide lockout will shut down all cargo operations of BCMEA member companies across the province,” the statement said, adding that cruise and grain vessels will still be worked. “We did not arrive at this decision lightly,” BCMEA said. “This regretful action follows thorough consideration of ILWU Local 514’s continued intransigence and their provocative decision to proceed with another strike notice, despite being found to have been bargaining in bad faith on three occasions.” Weekend talks to avert a strike have not been scheduled. The potential for the Port of Vancouver, Canada’s largest container port, to shut down comes as the country already faces container capacity constraints on its East Coast. Longshoremen have stopped working at two container terminals at the Port of Montreal , knocking about half of the capacity offline at Canada’s second-busiest container gateway. The Canada Industrial Relations Board (CIRB) last week ruled that Local 514 bargained in bad faith when it held a strike vote targeting just Vancouver’s DP World Centerm facility . Union foremen have been upset about the potential for staffing changes due to the introduction of semi-automated cranes at the facility . A coastwide lockout or strike would also shut down DP World’s Fairview container terminal in Prince Rupert and the GCT Deltaport and Vanterm terminals in Vancouver, effectively shuttering 5 million TEUs of terminal capacity along North America’s West Coast. Four container ships are scheduled to arrive at the Port of Vancouver during the coming week, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. Another three are scheduled to call Prince Rupert. Should a lockout or strike occur at Vancouver and Prince Rupert, it could put more pressure on the ports of Seattle and Tacoma, which have been digging out from higher-than-anticipated volumes from cargo diversions linked to the brief longshore strike along the US East and Gulf coasts . Local 514 has been working without a collective bargaining agreement since March 2023. The BCMEA said it met this week with Local 514 for talks overseen by government mediators. The employer’s group said that its “balanced and competitive final offer” to longshore foremen of a 19.2% raise over four years would bring median wages to C$293,617 per year. “It will provide all forepersons with significant gains in wages and benefits without concession requests from employers,” the BCMEA said. Contact Michael Angell at michael.angell@spglobal.com .

BC container ports ready to lock out longshore foremen after strike vote

<div class="phx-topic abstract-wrapper">Asian exports and growth in construction and mining demand are expected to prop up ro/ro volumes, two major vessel operators say.</div>

Asian exports and growth in construction and mining demand are expected to prop up ro/ro volumes, two major vessel operators say.

<div class="phx-topic">Roll-on/roll-off (ro/ro) vessel operators are expecting a rebound in “high-and-heavy” cargo volumes next year on stronger exports from China and rising global demand in the construction and mining industries, shipping executives say.Moderating interest rates, a $1.6 trillion stimulus package in China and a new US administration will support growth in high-and-heavy volumes, ro/ro operator Wallenius Wilhelmsen said this week.Speaking during a third-quarter results briefing, Wallenius CEO Lasse Kristoffersen said discussions with its high-and-heavy customers underscored confidence that volumes will grow in 2025 and 2026.Kristoffersen said Oslo, Norway-listed Wilhelmsen would release a separate statement about its 2025 ro/ro outlook in mid-December.The carrier on Oct. 28 announced a $766 million five-year high-and-heavy shipping and logistics agreement with “a leading agriculture, forestry and roadbuilding equipment manufacturer” that will start on Dec. 1. The carrier said the agreement was with an existing high-and-heavy customer it did not identify who had agreed to pay for the phase-in of green and renewable fuels.Höegh Autoliners echoed Wilhelmsen’s views predicting strong construction growth in 2025 in the Middle East and Asia-Pacific markets and a rebound in shipments of construction equipment from Asia, driven by Chinese manufacturers.“We believe we are back on a growth track … with stable volumes out of Japan and South Korea and strong growth out of China,” Höegh Autoliners CEO Andreas Enger said during an Oct. 24 results briefing.Höegh Autoliners said the US construction market had already seen robust growth under the Biden administration, mainly due to the inflow of funding toward manufacturing and mega projects under the US Infrastructure Investment and Jobs Act and Inflation Reduction Act. This is expected to keep infrastructure construction growth above average through 2026, Höegh Autoliners said.Global high-and-heavy sales are set to grow to $230 billion next year and $240 billion in 2026 after falling to $219 billion this year, according to the October edition of the S&amp;P Mobility Global Trade Atlas. S&amp;P Global is the parent company of the Journal of Commerce.<h3>Auto demand offsets high-and-heavy slide </h3>Wallenius Wilhelmsen and Höegh Autoliners have both experienced a languid high-and-heavy market this year with lower shipment volumes of equipment, including agricultural machines and excavators. High-and-heavy volumes as a percentage of total cargo volumes have also slipped, although that has been offset by increased volumes of cars and other light vehicles, mainly from Asia. Highlighting the downturn, Wilhelmsen’s Kristoffersen said its high-and-heavy volumes dropped 28% in the third quarter year over year, to 3.3 million cubic meters. Kristoffersen added that third-quarter volumes were also the lowest since the second quarter of 2020.“It’s not a worry for us because we’re filling vessels with well-paying cars,” he said.Kristoffersen added that high-and-heavy shipments had been replaced by an increase in breakbulk cargo volumes in the third quarter due to tight capacity and elevated freight rates in the container sector.High-and-heavy shipments accounted for 23% of Wilhelmsen’s cargo mix in the third quarter, down from 25% in the second quarter and 27% in the third quarter of 2023. Höegh Autoliners’ share of high-and-heavy and breakbulk cargoes dropped to 25% of its total volumes in the third quarter, from 26% in the same period last year.Wilhelmsen’s logistics division has benefited from sluggish high-and-heavy equipment sales. Kristoffersen said this had increased inventory levels, leading to longer dwell times and higher storage revenues at its terminals and processing centers.Both carriers forecast strong growth in vehicle exports, especially out of Asia, despite the imposition by the European Union on Wednesday of tariffs of up to 45.3% on Chinese made electric vehicles (EVs). The EU accounts for about 30% of China’s EV exports with more than 60% exported to Asia, South America and Africa, according to Chinese customs figures.Even with the expected downturn in EV exports to Europe from China, Wilhelmsen and Höegh Autoliners are forecasting growth of between 2% and 4% for deep-sea vehicle shipments, to about 14 million to 16 million units next year. By comparison, shortsea vehicle volumes are set to grow nearly 2% per year until 2026, according to S&amp;P Global forecasts.Meanwhile, optimism about future growth coupled with a continuing push to decarbonize led United European Car Carriers (UECC), jointly owned by Japan’s NYK and Sweden’s Wallenius Lines, to confirm a contract Wednesday for up to four multi-fuel battery hybrid pure car and truck carriers (PCTCs). The deal for the 4,500-car equivalent-unit vessels, to be built by China Merchants Jinling Shipyard in Nanjing, comprises a firm order for two ships scheduled for delivery in 2028, plus options for two more vessels.Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Roll-on/roll-off (ro/ro) vessel operators are expecting a rebound in “high-and-heavy” cargo volumes next year on stronger exports from China and rising global demand in the construction and mining industries, shipping executives say. Moderating interest rates, a $1.6 trillion stimulus package in China and a new US administration will support growth in high-and-heavy volumes, ro/ro operator Wallenius Wilhelmsen said this week. Speaking during a third-quarter results briefing, Wallenius CEO Lasse Kristoffersen said discussions with its high-and-heavy customers underscored confidence that volumes will grow in 2025 and 2026. Kristoffersen said Oslo, Norway-listed Wilhelmsen would release a separate statement about its 2025 ro/ro outlook in mid-December. The carrier on Oct. 28 announced a $766 million five-year high-and-heavy shipping and logistics agreement with “a leading agriculture, forestry and roadbuilding equipment manufacturer” that will start on Dec. 1. The carrier said the agreement was with an existing high-and-heavy customer it did not identify who had agreed to pay for the phase-in of green and renewable fuels. Höegh Autoliners echoed Wilhelmsen’s views predicting strong construction growth in 2025 in the Middle East and Asia-Pacific markets and a rebound in shipments of construction equipment from Asia, driven by Chinese manufacturers. “We believe we are back on a growth track … with stable volumes out of Japan and South Korea and strong growth out of China,” Höegh Autoliners CEO Andreas Enger said during an Oct. 24 results briefing. Höegh Autoliners said the US construction market had already seen robust growth under the Biden administration, mainly due to the inflow of funding toward manufacturing and mega projects under the US Infrastructure Investment and Jobs Act and Inflation Reduction Act. This is expected to keep infrastructure construction growth above average through 2026, Höegh Autoliners said. Global high-and-heavy sales are set to grow to $230 billion next year and $240 billion in 2026 after falling to $219 billion this year, according to the October edition of the S&P Mobility Global Trade Atlas. S&P Global is the parent company of the Journal of Commerce. Auto demand offsets high-and-heavy slide Wallenius Wilhelmsen and Höegh Autoliners have both experienced a languid high-and-heavy market this year with lower shipment volumes of equipment, including agricultural machines and excavators. High-and-heavy volumes as a percentage of total cargo volumes have also slipped, although that has been offset by increased volumes of cars and other light vehicles, mainly from Asia. Highlighting the downturn, Wilhelmsen’s Kristoffersen said its high-and-heavy volumes dropped 28% in the third quarter year over year, to 3.3 million cubic meters. Kristoffersen added that third-quarter volumes were also the lowest since the second quarter of 2020. “It’s not a worry for us because we’re filling vessels with well-paying cars,” he said. Kristoffersen added that high-and-heavy shipments had been replaced by an increase in breakbulk cargo volumes in the third quarter due to tight capacity and elevated freight rates in the container sector. High-and-heavy shipments accounted for 23% of Wilhelmsen’s cargo mix in the third quarter, down from 25% in the second quarter and 27% in the third quarter of 2023. Höegh Autoliners’ share of high-and-heavy and breakbulk cargoes dropped to 25% of its total volumes in the third quarter, from 26% in the same period last year. Wilhelmsen’s logistics division has benefited from sluggish high-and-heavy equipment sales. Kristoffersen said this had increased inventory levels, leading to longer dwell times and higher storage revenues at its terminals and processing centers. Both carriers forecast strong growth in vehicle exports, especially out of Asia, despite the imposition by the European Union on Wednesday of tariffs of up to 45.3% on Chinese made electric vehicles (EVs). The EU accounts for about 30% of China’s EV exports with more than 60% exported to Asia, South America and Africa, according to Chinese customs figures. Even with the expected downturn in EV exports to Europe from China, Wilhelmsen and Höegh Autoliners are forecasting growth of between 2% and 4% for deep-sea vehicle shipments, to about 14 million to 16 million units next year. By comparison, shortsea vehicle volumes are set to grow nearly 2% per year until 2026, according to S&P Global forecasts. Meanwhile, optimism about future growth coupled with a continuing push to decarbonize led United European Car Carriers (UECC), jointly owned by Japan’s NYK and Sweden’s Wallenius Lines, to confirm a contract Wednesday for up to four multi-fuel battery hybrid pure car and truck carriers (PCTCs). The deal for the 4,500-car equivalent-unit vessels, to be built by China Merchants Jinling Shipyard in Nanjing, comprises a firm order for two ships scheduled for delivery in 2028, plus options for two more vessels. Contact Keith Wallis at keithwallis@hotmail.com .

Ro/ro operators bank on recovery in ‘high-and-heavy’ market

<div class="phx-topic abstract-wrapper">If the question is solely on the risk related to being delayed in each port, the Gemini network ought to, statistically, have a slightly higher core reliability than Mediterranean Shipping Co. when the need for shuttles is taken into account, writes analyst Lars Jensen.</div>

If the question is solely on the risk related to being delayed in each port, the Gemini network ought to, statistically, have a slightly higher core reliability than Mediterranean Shipping Co. when the need for shuttles is taken into account, writes analyst Lars Jensen.

<div class="phx-topic">As we enter the final months of 2024, there is increased focus on the question of whether the Gemini Cooperation alliance of Maersk and Hapag-Lloyd — launching in February — can deliver <a href="https://www.joc.com/article/gemini-faces-13-week-phase-in-before-90-reliability-promise-is-tested-clerc-5783839">on its promise of 90% reliability</a>.And running slightly below the surface is the question of whether Mediterranean Shipping Co. will be in a better place to deliver reliability given its much larger array of direct services in contrast to Gemini’s hub-centric network. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5783795_0.1.jpg"></img></div>Ocean Alliance and Premier Alliance are somewhere in between the two outer positions of MSC and Gemini. Of course, time will tell, but what can we foretell from an analytical perspective? To do that, it is instructive to focus on the two extremes represented by MSC and Gemini. The simplest approach is to look at past performance. The problematic issue, obviously, is that the three carriers involved have not operated in these new constellations. However, we can look at the existing 2M Alliance consisting of Maersk and MSC. Across all their alliance services, they had an average on-time performance of 84% in 2019, which was the last “normal” year before the major disruptions presented by the pandemic and Red Sea diversions. Breaking it down to a trade lane level, 2M was 73% on time on the Pacific headhaul, 92% on Asia to Europe and 74% on the Atlantic westbound trade. 2M was the best-performing alliance on all headhaul trades, with the only exception being the Atlantic, where THE Alliance performed better. Hence, at least on Asia-Europe, we have indeed seen 90% performance previously, meaning that a 90% target is not out of reach for carriers intending to do this. Then we come to the core question: Will the hub-focused product of Gemini be more or less prone to delays than MSC’s direct product? First, some simple mathematics. Take a service calling just two ports — one in Asia and one in Europe. Assume the carrier runs a tight ship (pun intended) and there is only a 2% risk of the vessel getting delayed due to external circumstances such as bad weather. In this case, there is a 2% chance of getting delayed prior to loading in Asia and a 2% chance of getting delayed prior to arriving in Europe, leading to an average reliability of 96% by the time the vessel arrives in Europe. But what if we had two ports in Asia and two ports in Europe? Then the reliability in the last port in Europe would be 92%. With a total of five ports in the rotation, reliability would be 90%. Of course, this is a theoretical approach and does not include the option of a carrier speeding up to get back on schedule or having a buffer of time to use. If we look at the Asia-to-Europe service, Gemini has six ports on all services, except a single service with nine ports. Using the hypothetical 2% risk of delays, this would lead to a Gemini reliability of 89%, except for the one service with many port calls that would be at 83%. For MSC, all but two of their Asia-to-Europe services have 10 to 12 port calls. In the hypothetical of 2% delay risk per port, this would imply a service reliability of 78% to 82%. Hence, from the perspective that each port call is itself a risk factor that can reduce reliability, it is clear that Gemini has a better chance of staying on time throughout the full rotation than MSC. <h3>Direct calls vs. shuttles </h3>Then there is the question of reliability for ports served directly by MSC but via shuttle by Gemini. In this case, there is an added risk that if the Gemini shuttle is not timely, for whichever reason, it further degrades the reliability. Typically, the shuttles call one to two outports apart from the central transshipment hubs. This means an additional one to four ports in the rotation depending on whether a shuttle is needed in both ends or just in a single end. This would bring the port calls for the Maersk network up to seven to 10, implying a reliability of 82% to 87%. This means that if the focus is solely on the risk related to being delayed in each port, the Gemini network ought to, statistically, have a slightly higher core reliability than MSC when the need for shuttles is taken into account. But it also shows that for Gemini to deliver on the promised 90% reliability, the risk of being late in each port — when also taking the shuttles into account — must be less than 2%. In this hypothetical scenario, it would require the Gemini network to operate with only a 1% risk of a vessel getting delayed in each port. But, of course, there are two additional tools that can also be used: having larger buffers to absorb smaller delays and speeding vessels up when necessary. Contact Lars Jensen at <a href="mailto:lars.jensen@vespucci-maritime.com">lars.jensen@vespucci-maritime.com</a>.  </div>

As we enter the final months of 2024, there is increased focus on the question of whether the Gemini Cooperation alliance of Maersk and Hapag-Lloyd — launching in February — can deliver on its promise of 90% reliability . And running slightly below the surface is the question of whether Mediterranean Shipping Co. will be in a better place to deliver reliability given its much larger array of direct services in contrast to Gemini’s hub-centric network. Ocean Alliance and Premier Alliance are somewhere in between the two outer positions of MSC and Gemini. Of course, time will tell, but what can we foretell from an analytical perspective? To do that, it is instructive to focus on the two extremes represented by MSC and Gemini. The simplest approach is to look at past performance. The problematic issue, obviously, is that the three carriers involved have not operated in these new constellations. However, we can look at the existing 2M Alliance consisting of Maersk and MSC. Across all their alliance services, they had an average on-time performance of 84% in 2019, which was the last “normal” year before the major disruptions presented by the pandemic and Red Sea diversions. Breaking it down to a trade lane level, 2M was 73% on time on the Pacific headhaul, 92% on Asia to Europe and 74% on the Atlantic westbound trade. 2M was the best-performing alliance on all headhaul trades, with the only exception being the Atlantic, where THE Alliance performed better. Hence, at least on Asia-Europe, we have indeed seen 90% performance previously, meaning that a 90% target is not out of reach for carriers intending to do this. Then we come to the core question: Will the hub-focused product of Gemini be more or less prone to delays than MSC’s direct product? First, some simple mathematics. Take a service calling just two ports — one in Asia and one in Europe. Assume the carrier runs a tight ship (pun intended) and there is only a 2% risk of the vessel getting delayed due to external circumstances such as bad weather. In this case, there is a 2% chance of getting delayed prior to loading in Asia and a 2% chance of getting delayed prior to arriving in Europe, leading to an average reliability of 96% by the time the vessel arrives in Europe. But what if we had two ports in Asia and two ports in Europe? Then the reliability in the last port in Europe would be 92%. With a total of five ports in the rotation, reliability would be 90%. Of course, this is a theoretical approach and does not include the option of a carrier speeding up to get back on schedule or having a buffer of time to use. If we look at the Asia-to-Europe service, Gemini has six ports on all services, except a single service with nine ports. Using the hypothetical 2% risk of delays, this would lead to a Gemini reliability of 89%, except for the one service with many port calls that would be at 83%. For MSC, all but two of their Asia-to-Europe services have 10 to 12 port calls. In the hypothetical of 2% delay risk per port, this would imply a service reliability of 78% to 82%. Hence, from the perspective that each port call is itself a risk factor that can reduce reliability, it is clear that Gemini has a better chance of staying on time throughout the full rotation than MSC. Direct calls vs. shuttles Then there is the question of reliability for ports served directly by MSC but via shuttle by Gemini. In this case, there is an added risk that if the Gemini shuttle is not timely, for whichever reason, it further degrades the reliability. Typically, the shuttles call one to two outports apart from the central transshipment hubs. This means an additional one to four ports in the rotation depending on whether a shuttle is needed in both ends or just in a single end. This would bring the port calls for the Maersk network up to seven to 10, implying a reliability of 82% to 87%. This means that if the focus is solely on the risk related to being delayed in each port, the Gemini network ought to, statistically, have a slightly higher core reliability than MSC when the need for shuttles is taken into account. But it also shows that for Gemini to deliver on the promised 90% reliability, the risk of being late in each port — when also taking the shuttles into account — must be less than 2%. In this hypothetical scenario, it would require the Gemini network to operate with only a 1% risk of a vessel getting delayed in each port. But, of course, there are two additional tools that can also be used: having larger buffers to absorb smaller delays and speeding vessels up when necessary. Contact Lars Jensen at lars.jensen@vespucci-maritime.com . 

Network realignment shines light on hub-focused product vs. direct calls

<div class="phx-topic abstract-wrapper">Those companies are combining to get the terminals, talent and technology they need to compete as larger carriers increasingly seek business in their markets. </div>

Those companies are combining to get the terminals, talent and technology they need to compete as larger carriers increasingly seek business in their markets.

<div class="phx-topic">Merger and acquisition activity in the already highly-consolidated US less-than-truckload (LTL) market is picking up speed — not from the top down, but from the bottom up. That could mean new options for shippers trying to find the right home for their LTL freight in a market that has been in flux since <a href="https://www.joc.com/article/us-ltl-sector-growth-efficiencies-still-fueled-by-loss-of-yellow-5715785">Yellow collapsed in July 2023</a>. While large companies such as TFI International and Knight-Swift Transportation Holdings are <a href="https://www.joc.com/article/interest-in-us-ltl-ma-activity-seen-rising-as-2025-approaches-5772881">talking about LTL acquisitions</a>, small carriers are expanding by acquisition, too. “I think if you’re not growing, you’re sinking,” Mike Moran, president of Moran Transportation, told the Journal of Commerce this week. “If you don’t maintain a certain size and a certain growth rate, you’ll have a hard time competing in this market.” Chicago-based Moran Transportation on Tuesday said it was buying RMX Freight Systems, another small LTL provider, expanding its coverage area, terminals and workforce. Terms of the deal were not disclosed, but it adds three states to Moran’s service map, bringing its total number of terminals to 12 and its truck fleet to 675 vehicles. Moran will now have coverage from points in the Dakotas and Missouri in the West to Ohio and points in Kentucky and West Virginia in the East. The Moran-RMX combination is the latest in a string of acquisitions quietly reshaping the lower tier of LTL providers as defined by revenue, further consolidating the sector. Smaller carriers were among the fastest-growing LTL companies in 2023, and acquisitions propelled that growth. CrossCountry Freight Solutions, for example, was ranked 40th among US LTL carriers in 2020, but in <a href="https://www.joc.com/article/journal-of-commerce-rankings-ltl-sector-revenue-drops-despite-yellow-distortion-5199865">2024 rose to 25th place</a> in the Journal of Commerce/SJ Consulting Group rankings thanks to several acquisitions. More recently, DC Logistics acquired the US freight business of GLS, the Netherlands-based parcel carrier, including its LTL assets known as <a href="https://gls-group.com/GROUP/en/GLS-Group-Announces-Strategic-Sale-of-US-Freight-Division-to-DC-Logistics/">Mountain Valley Express</a>. Jack Cooper has expressed interest in purchasing LTL provider <a href="https://www.joc.com/article/standard-forwarding-deal-would-speed-consolidation-among-small-ltl-carriers-5719767">Standard Forwarding</a> from DHL. These companies are combining to get the terminals, talent and technology they need to compete as larger carriers increasingly seek business in regional markets, said Satish Jindel, president of transportation research firm SJ Consulting Group. “As a small carrier, it’s increasingly difficult to have all of the ‘three Ts’ — terminals, talent and technology,” Jindel said. “There are more of these small acquisitions coming.” <h3>Shrinking LTL pool for shippers </h3>Moran believes smaller carriers are part of a value proposition for shippers that is increasingly under threat. “The largest LTL carriers command a sizable chunk of the market,” he said. “I tell my customers that when the big carriers are the last ones left standing, you will pay whatever they want.” And large carriers are <a href="https://www.joc.com/article/us-ltl-carriers-raising-rates-as-shippers-keep-wary-eye-on-2025-5782152">pressing for rate hikes</a> in 2025. The 40 largest LTL carriers account for 91.8% of total LTL sector revenue of $56.6 billion, according to the Journal of Commerce/SJ Consulting Group rankings. Already, pressure is growing on the smallest LTL carriers to “join or die,” according to Jindel. “Shippers are reducing the number of carriers they work with, and if you have only three or four states in your service area, it’s going to be harder to compete,” he said. Still, that doesn’t mean smaller carriers are the cheaper alternative. “We target customers who demand high-quality service in our market, but we won’t haul for free,” Moran said. “There’s definitely a market for commoditized carriers, but that’s not our world.” With about $50 million in annual revenue this year, Moran Transportation is too small to be ranked among the Journal of Commerce/SJ Consulting Group list of Top 40 LTL carriers, but the company may get there. Moran said he had looked at six to eight potential acquisitions before deciding on RMX. “We’re in acquisition mode,” Moran said. “We’re looking and talking and trying to find the next acquisition to build density in our network and to grow where we want to grow.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Merger and acquisition activity in the already highly-consolidated US less-than-truckload (LTL) market is picking up speed — not from the top down, but from the bottom up. That could mean new options for shippers trying to find the right home for their LTL freight in a market that has been in flux since Yellow collapsed in July 2023 . While large companies such as TFI International and Knight-Swift Transportation Holdings are talking about LTL acquisitions , small carriers are expanding by acquisition, too. “I think if you’re not growing, you’re sinking,” Mike Moran, president of Moran Transportation, told the Journal of Commerce this week. “If you don’t maintain a certain size and a certain growth rate, you’ll have a hard time competing in this market.” Chicago-based Moran Transportation on Tuesday said it was buying RMX Freight Systems, another small LTL provider, expanding its coverage area, terminals and workforce. Terms of the deal were not disclosed, but it adds three states to Moran’s service map, bringing its total number of terminals to 12 and its truck fleet to 675 vehicles. Moran will now have coverage from points in the Dakotas and Missouri in the West to Ohio and points in Kentucky and West Virginia in the East. The Moran-RMX combination is the latest in a string of acquisitions quietly reshaping the lower tier of LTL providers as defined by revenue, further consolidating the sector. Smaller carriers were among the fastest-growing LTL companies in 2023, and acquisitions propelled that growth. CrossCountry Freight Solutions, for example, was ranked 40th among US LTL carriers in 2020, but in 2024 rose to 25th place in the Journal of Commerce/SJ Consulting Group rankings thanks to several acquisitions. More recently, DC Logistics acquired the US freight business of GLS, the Netherlands-based parcel carrier, including its LTL assets known as Mountain Valley Express . Jack Cooper has expressed interest in purchasing LTL provider Standard Forwarding from DHL. These companies are combining to get the terminals, talent and technology they need to compete as larger carriers increasingly seek business in regional markets, said Satish Jindel, president of transportation research firm SJ Consulting Group. “As a small carrier, it’s increasingly difficult to have all of the ‘three Ts’ — terminals, talent and technology,” Jindel said. “There are more of these small acquisitions coming.” Shrinking LTL pool for shippers Moran believes smaller carriers are part of a value proposition for shippers that is increasingly under threat. “The largest LTL carriers command a sizable chunk of the market,” he said. “I tell my customers that when the big carriers are the last ones left standing, you will pay whatever they want.” And large carriers are pressing for rate hikes in 2025. The 40 largest LTL carriers account for 91.8% of total LTL sector revenue of $56.6 billion, according to the Journal of Commerce/SJ Consulting Group rankings. Already, pressure is growing on the smallest LTL carriers to “join or die,” according to Jindel. “Shippers are reducing the number of carriers they work with, and if you have only three or four states in your service area, it’s going to be harder to compete,” he said. Still, that doesn’t mean smaller carriers are the cheaper alternative. “We target customers who demand high-quality service in our market, but we won’t haul for free,” Moran said. “There’s definitely a market for commoditized carriers, but that’s not our world.” With about $50 million in annual revenue this year, Moran Transportation is too small to be ranked among the Journal of Commerce/SJ Consulting Group list of Top 40 LTL carriers, but the company may get there. Moran said he had looked at six to eight potential acquisitions before deciding on RMX. “We’re in acquisition mode,” Moran said. “We’re looking and talking and trying to find the next acquisition to build density in our network and to grow where we want to grow.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Smaller US LTL carriers increasingly merging in ‘sink or swim’ market

<div class="phx-topic abstract-wrapper">The new network will have a grace period for about three months as the first full port rotations are completed but must then quickly prove it can raise on-time performance to the promised levels, says Maersk’s CEO.</div>

The new network will have a grace period for about three months as the first full port rotations are completed but must then quickly prove it can raise on-time performance to the promised levels, says Maersk’s CEO.

<div class="phx-topic">Gemini Cooperation will have a 13-week window from Feb. 1 to get the new network up and running before partners Maersk and Hapag-Lloyd come under pressure to prove they can deliver on the promised 90% schedule reliability, according to Maersk CEO Vincent Clerc. Clerc told analysts during <a href="https://www.joc.com/article/maersks-existing-fleet-size-sufficient-to-handle-short-term-demand-growth-ceo-5782669">Maersk’s third-quarter earnings</a> call Thursday he was expecting “an orderly transition” as the carrier moves over to Gemini from the 2M Alliance with Mediterranean Shipping Co. and as Hapag-Lloyd exits THE Alliance. But it will take about three months for the new network to stabilize, the CEO noted. “The longest service we have is a 13-week rotation, so it will take about 13 weeks until the last ship and the full cycle of the service is working on the same network, so from February for three months we will live in a hybrid world,” he said. Once the network is stabilized, Clerc said Gemini will need to quickly demonstrate that it is capable of dramatically improving reliability across its network. “The focus is on quality and the common agreement [with partner Hapag-Lloyd] is that doing it right the first time with high quality is going to be cheaper than operating a network with 50% reliability,” he said. “Our first target is to deliver the proof points to customers. Initially we need to have a successful transition into Gemini. We need to deliver the quality in terms of production cost and production quality that we have promised,” Clerc added. “At some point we will see how much value that creates for customers and how we can participate in that.” <h3>No need to discount or price aggressively </h3>During the startup period, Clerc acknowledged that customers signing with Gemini would not accept higher rate levels based simply on a promise of 90% reliability. But he insisted that the carrier would not have to offer discounts to attract customers to the new network. ”In a market that is as volatile as it is today, with the many disruptions that there are, I don’t think that customers will be willing to pay more for higher reliability without having seen what they’re getting,” Clerc said. ”But I see no reason why, when we’re selling a higher quality and higher reliability, we would have to discount or price more aggressively in order to sign up customers,” he added. February will also see the launch of the Premier Alliance, formerly known as THE Alliance, and <a href="https://www.joc.com/article/mscs-global-scale-enables-standalone-network-coverage-5726563">MSC striking off on its own</a> when the 2M Alliance ends. While MSC and the other alliances will focus on providing direct port-to-port services, Gemini will structure its port calls around <a href="https://www.joc.com/article/lofty-reliability-goals-for-gemini-alliance-hang-on-key-service-assumptions-5214653">a “hub-and-spoke” network</a> where Maersk and Hapag-Lloyd control the terminals and the shuttles that will provide onward transport to destination. It is this large transshipment element within the Gemini network that has raised shipper skepticism over the promise of 90% on-time performance, because it typically adds transit time and delays and because, historically, the on-time performance of carriers has been far below that level. Global schedule reliability from January to September this year has been stuck between 50% and 55%, with the average delays for vessels at 5.37 days, according to Sea-Intelligence Maritime Analysis. Maersk’s schedule reliability in September, the most recent data available, was at 55.5% while Hapag-Lloyd had 48.7%. Clerc said teams from Maersk and Hapag-Lloyd conducted exhaustive tests over the past couple of years to determine the efficiency of a hub-and-spoke network before arriving at the 90% reliability figure. “We did not go out with that number lightly,” he said. “The core issue now is to scale this up and then we’ll have to see if there is anything that has not been tested ... but we feel confident we have tested all we could think of in terms of resilience of the product.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Gemini Cooperation will have a 13-week window from Feb. 1 to get the new network up and running before partners Maersk and Hapag-Lloyd come under pressure to prove they can deliver on the promised 90% schedule reliability, according to Maersk CEO Vincent Clerc. Clerc told analysts during Maersk’s third-quarter earnings call Thursday he was expecting “an orderly transition” as the carrier moves over to Gemini from the 2M Alliance with Mediterranean Shipping Co. and as Hapag-Lloyd exits THE Alliance. But it will take about three months for the new network to stabilize, the CEO noted. “The longest service we have is a 13-week rotation, so it will take about 13 weeks until the last ship and the full cycle of the service is working on the same network, so from February for three months we will live in a hybrid world,” he said. Once the network is stabilized, Clerc said Gemini will need to quickly demonstrate that it is capable of dramatically improving reliability across its network. “The focus is on quality and the common agreement [with partner Hapag-Lloyd] is that doing it right the first time with high quality is going to be cheaper than operating a network with 50% reliability,” he said. “Our first target is to deliver the proof points to customers. Initially we need to have a successful transition into Gemini. We need to deliver the quality in terms of production cost and production quality that we have promised,” Clerc added. “At some point we will see how much value that creates for customers and how we can participate in that.” No need to discount or price aggressively During the startup period, Clerc acknowledged that customers signing with Gemini would not accept higher rate levels based simply on a promise of 90% reliability. But he insisted that the carrier would not have to offer discounts to attract customers to the new network. ”In a market that is as volatile as it is today, with the many disruptions that there are, I don’t think that customers will be willing to pay more for higher reliability without having seen what they’re getting,” Clerc said. ”But I see no reason why, when we’re selling a higher quality and higher reliability, we would have to discount or price more aggressively in order to sign up customers,” he added. February will also see the launch of the Premier Alliance, formerly known as THE Alliance, and MSC striking off on its own when the 2M Alliance ends. While MSC and the other alliances will focus on providing direct port-to-port services, Gemini will structure its port calls around a “hub-and-spoke” network where Maersk and Hapag-Lloyd control the terminals and the shuttles that will provide onward transport to destination. It is this large transshipment element within the Gemini network that has raised shipper skepticism over the promise of 90% on-time performance, because it typically adds transit time and delays and because, historically, the on-time performance of carriers has been far below that level. Global schedule reliability from January to September this year has been stuck between 50% and 55%, with the average delays for vessels at 5.37 days, according to Sea-Intelligence Maritime Analysis. Maersk’s schedule reliability in September, the most recent data available, was at 55.5% while Hapag-Lloyd had 48.7%. Clerc said teams from Maersk and Hapag-Lloyd conducted exhaustive tests over the past couple of years to determine the efficiency of a hub-and-spoke network before arriving at the 90% reliability figure. “We did not go out with that number lightly,” he said. “The core issue now is to scale this up and then we’ll have to see if there is anything that has not been tested ... but we feel confident we have tested all we could think of in terms of resilience of the product.” Contact Greg Knowler at greg.knowler@spglobal.com .

Gemini faces 13-week phase-in before 90% reliability promise is tested: Clerc

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

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Shippers save money, time with automated transportation bidding tools

SSA Marine Mexico has made significant strides in modernizing its infrastructure at the Port of Manzanillo, investing $15 million to enhance operational efficiency and sustainability at its facilities. This move is part of the company's broader strategy to remain at the forefront of the shipping and logistics industry. •	Strengthening Sustainability with Advanced Technology <figure class="joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left"><img src="/content-assets/1730488295264_Cranes arrival to TEC I.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 terminal.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: https://www.ssamarine.mx/ssa-ing/index

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SSA Marine Mexico Modernizes Facilities with $15 Million Investment 

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

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