Embracing Volatility – How Data Is Revolutionising Freight Procurement

Market volatility has flipped the logistics script. Shippers have been forced to rethink how they procure ocean and air freight, moving towards greater flexibility, resilience, and—most importantly—data-driven decision-making. This isn’t just a tweak to existing strategies; it’s a full-blown reimagining of freight procurement in an era of disruption.

Let’s face it: we’re navigating uncharted waters. Rate fluctuations, capacity squeezes, and ever-shifting demand patterns mean business-as-usual is no longer an option. Real-time freight intelligence is the superpower shippers—and their Logistics Service Providers (LSPs)—need to thrive, not just survive. It’s not just about rates and spreadsheets; it’s about building resilient supply chains that can weather any storm while maximising ROI.

1. Negotiating with Precision: Smarter, Data-Driven Decisions

ROI Impact: Competitive rates. No overpayments.

Real-time freight intelligence keeps you informed about rate trends, capacity, and carrier pricing tactics. Armed with data, shippers can challenge inflated premiums and negotiate from a position of strength. The result? Big savings and smarter partnerships, with cost reductions of up to 30% reported in certain cases, equating to millions saved annually on key shipping lanes.

2. Forecasting: Protecting Your Budget (and Your Sanity)

ROI Impact: 50% better budget accuracy, as reported by a Fortune 500 company.

Cost forecasting isn’t glamorous, but it’s critical. Freight data gives you visibility into surcharges, spot rates, long-term agreements, and market trends, helping you plan with laser-sharp accuracy. This isn’t just saving pennies—it’s about sidestepping financial landmines that blow up your P&L.

3. Benchmarking: The Confidence to Demand Better

ROI Impact: Better service. Better terms.

Comparing your performance and costs against market benchmarks ensures you’re not leaving money on the table or settling for subpar service. Tools that aggregate hundreds of millions of rates empower shippers and LSPs to push for better service guarantees, lower surcharges, or contractual improvements. With this collective intelligence, negotiation is no longer a guessing game; it’s a precise, data-driven process.

4. Reacting in Real Time: Stay Agile in Chaos

ROI Impact: Losses minimised, decisions aligned.

In logistics, chaos is inevitable. But reacting to it doesn’t have to be. When capacity dries up or rates spike, real-time intelligence lets you pivot on a dime—securing alternative carriers or adjusting strategies while keeping costs in check.

This level of visibility aligns teams across finance, operations, and procurement, ensuring everyone is on the same page when the heat’s on. Quick decisions, fewer silos, smoother operations.

5. Better Relationships: Collaboration That Works

ROI Impact: Long-term savings, future-proof supply chains.

Freight procurement is still a relationship game, but volatility strains even the strongest ties. Real-time data can shift the dynamic by providing transparency, neutrality, and shared insights. This fosters trust, enabling innovative collaborations like capacity-sharing agreements, dynamic pricing, or joint sustainability initiatives.

Instead of fighting over margins, shippers and LSPs can work together to tackle the big stuff—like reducing emissions or designing supply chains that can withstand future shocks.

Why Real-Time Freight Intelligence Is Non-Negotiable

For most shippers, data has historically been a pre-tender tool. But in today’s climate, relying on static benchmarks is like navigating a storm with last week’s weather report. From 2019 to 2024, we’ve seen how rapidly markets can shift. Waiting until the next contract cycle to adjust is a recipe for disaster.

Data is the compass shippers and LSPs need—not just during tender negotiations, but as a constant tool for building resilient, sustainable supply chains. It’s time to integrate real-time freight intelligence into every aspect of your strategy. With dynamic insights, you can outmanoeuvre uncertainty, build flexibility, and create lasting value for your business.

E-commerce Drives Two-Thirds of Airfreight from China as Rates Surge Amid Capacity Crunch

Ecommerce is reshaping the air cargo landscape, now accounting for an estimated two-thirds of airfreight originating from China. As demand soars, freighter operators are leveraging the momentum to increase contract rates for 2024, making this peak season pivotal for the logistics industry.

A Shanghai-based logistics provider remarked:

“The rates this week to Europe and the US exceed the highest recorded last year. Ecommerce is the key driver, with volumes making up a significant portion of overall cargo.”

Rates on the Rise: A Data-Driven Snapshot

According to WorldACD, global air cargo rates rose by 2% week-on-week, hitting $2.84 per kg as of 1 December—the highest this year. Spot rates saw a 3% increase, driven by a 4% jump from Asia Pacific and a 3% rise from North America. The statistics tell a compelling story:

  • China: $5.10 per kg (+7%)
  • Hong Kong: $6.25 (+9%)
  • Japan: $4.97 (+6%)
  • South Korea: $5.49 (+6%)
  • Taiwan: $4.07 (+5%)
  • Vietnam: $4.88 (+3%)

Year-on-year, rates surged over 30% from Japan and Vietnam, and 46% from Taiwan, underlining the immense growth in demand from these markets.

Ecommerce, Congestion, and a Growing Need for Data Visibility

While ecommerce is driving demand, capacity constraints and airport congestion remain pressing challenges. The seasonal peak is expected to ease temporarily during Christmas but will ramp up again ahead of Chinese New Year on 28 January. The situation is further compounded by a pre-tariff rush ahead of potential US import tariffs in early 2025, prompting businesses to stockpile goods.

Freighter operators are already responding with record-high proposed rates for 2024, with increases of over £1.10 per kgto Europe, compared to the prior year. This trend emphasises the growing complexity of managing supply chains amid volatile market conditions.

As demand continues to outpace supply, the industry faces mounting pressure to adopt advanced supply chain visibility and climate impact software. These tools can provide real-time data insights, empowering BCOs and Logistics Service Providers (LSPs) to make data-driven decisions and counteract supply chain disruptions effectively. Such visibility is no longer optional—it’s critical for navigating the complexities of modern logistics.

Industry Insights: A Maturing Air Cargo Market

Despite these challenges, experts note that the industry is demonstrating newfound maturity. Niall van de Wouw, Chief Airfreight Officer at Xeneta, stated:

“We’re witnessing a more grown-up air cargo market, with better resource allocation and improved terms for all parties involved. The industry is firing on all cylinders, but it’s under control—unlike the chaos of prior peaks.”

This level-headed approach is key to maintaining stability as markets evolve. However, with shifting trade routes driven by the relocation of manufacturing to Southeast Asia, businesses must adapt their strategies to remain competitive.

Looking Ahead

The air cargo market is evolving rapidly, driven by ecommerce demand, trade policy shifts, and capacity challenges. To stay ahead, LSPs and BCOs must adopt real-time supply chain visibility solutions. These tools will empower them to make informed, critical decisions, ensuring they remain resilient in a dynamic global market.

Asia’s Rising Stars: Vietnam, Thailand, and South Korea Ride the Wave of US Trade Policy Shifts

The planned tariffs on Chinese products by US president-elect Donald Trump are reshaping global trade flows, boosting containerised imports from Vietnam, Thailand, and South Korea. These nations have experienced remarkable growth in exports to the US since 2017, presenting both opportunities and challenges for supply chain resilience and climate-conscious operations.

According to a Linerlytica report, Vietnam’s container exports to the US exceeded 2 million TEU in the first 10 months of 2024, more than double the volumes of 2017. Notably, Q2 2024 saw a 41% year-on-year increase in exports, primarily manufactured goods, as businesses continued to diversify supply chains away from China. Vietnam’s appeal lies in its educated workforce, low operational costs, and improving US diplomatic relations.

Thailand has also emerged as a significant player, tripling its exports to the US since 2017. The first 10 months of 2024 recorded approximately 900,000 TEU, with October alone showing a 25% year-on-year increase. Driven by farm and food products, Thailand’s trade policies have further cemented its position as a key exporter, with domestic partnerships benefitting US firms operating in the country.

South Korea’s containerised exports to the US exceeded 1 million TEU between January and October 2024, compared to around 600,000 TEU in 2017. Electrical appliances, machinery, and equipment drove this growth, according to analyst Tan Hua Joo.

Meanwhile, China’s share of US imports from Asia has dropped from 70.4% in 2017 to 58.9% in 2024, reflecting a significant shift. Yet, China remains the largest origin country for containerised imports, even as Vietnam, South Korea, and Thailand take the lead in volume and market share gains.

The Role of Visibility in Supply Chain Management

This rapid shift in trade dynamics underscores the growing need for supply chain visibility and climate impact software. As Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) navigate complex, shifting trade patterns, real-time data insights are becoming indispensable. These tools enable stakeholders to make business-critical decisions, mitigating risks such as tariff impositions and environmental impacts, while optimising the supply chain for efficiency and sustainability.

For instance, Vietnam’s efforts to avoid trade sanctions, such as importing US soybeans and aircraft, highlight how trade policy volatility can impact supply chains. With visibility tools, LSPs can respond to such challenges by forecasting disruptions and adapting their logistics strategies.

Linerlytica notes that while the proposed 10% tariff on Chinese goods is less severe than the 60% initially suggested, the policy still has cascading effects. Vietnam, South Korea, and Thailand, as the fastest-growing exporters, stand to gain. However, the unpredictability of these trade measures emphasises the importance of advanced analytics to support resilient, climate-conscious supply chains.

Hapag-Lloyd Doubles Down on Green Methanol for a Decarbonised Future

German shipping giant Hapag-Lloyd has signed a ground-breaking agreement with China’s Goldwind to secure 250,000 tonnes of green methanol annually, adding a significant boost to the 500,000-tonne Maersk agreement made in late 2023. This commitment reinforces Hapag-Lloyd’s position at the forefront of sustainable shipping and builds momentum for decarbonisation efforts across the maritime industry.

The agreement, spanning more than a decade, will see supplies of green methanol begin in 2026. The initiative forms part of Hapag-Lloyd’s Strategy 2030, a comprehensive plan to meet the Paris Agreement’s 1.5-degree climate target. CEO Rolf Habben Jansen emphasised the company’s commitment to sustainable investments, stating:

“With the agreement, we are securing a significant proportion of our requirements for green fuels. This is a critical step toward our ultimate goal of achieving net-zero fleet operations by 2045.”

Hapag-Lloyd’s strategy includes retrofitting methanol dual-fuel capabilities to five vessels, funded by green-insetting premiums paid by environmentally-conscious customers. This move not only aligns with global decarbonisation goals but also positions Hapag-Lloyd to adapt to future EU renewable fuel quotas, known as RFNBO obligations, under the FuelEU Maritime framework.

A Balancing Act in Maritime Fuels

While LNG continues to gain traction among top competitors like Maersk and CMA CGM, Hapag-Lloyd’s pivot to green methanol signals a calculated hedging strategy. The flexibility to retrofit LNG-fuelled vessels to methanol provides a future-proof option should market dynamics or regulatory landscapes shift.

The challenges of retrofitting were exemplified by Maersk’s Halifax project, which took eight months of off-hire time and a dramatic 15-metre vessel extension. Despite these complexities, methanol retrofits could offer smoother transitions compared to conventional ships.

Hapag-Lloyd’s investments come amid concerns about green methanol’s long-term scalability due to limited biogenic CO2 feedstocks. However, these constraints are dwarfed by the immediate issue of securing start-up capital to scale production capacity.

Real-Time Insights for Smarter Supply Chains

The shift towards alternative fuels highlights an emerging need: real-time visibility into supply chain emissions and climate impacts. As companies like Hapag-Lloyd blaze trails in decarbonisation, Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) must adapt quickly. Visibility software can empower stakeholders with real-time data insights to make critical decisions, from route optimisation to fuel choice, mitigating disruptions and aligning supply chain operations with sustainability targets.

Hapag-Lloyd’s dual-fuel strategy is not just about compliance; it represents a blueprint for how liner shipping can transform through technology and collaboration. The adoption of visibility tools will ensure that as fuel technologies evolve, supply chains remain resilient, transparent, and aligned with global decarbonisation goals.

Rolf Habben Jansen summed it up best:

“It is and remains our ambition to play a leading role in the transformation of the liner shipping industry.”

Evergreen’s Ambitious Growth: Expanding Capacity and Embracing Innovation

Taiwanese shipping giant Evergreen has made waves in the logistics industry by announcing a massive order for 60,500 new containers, valued at nearly $187 million. The latest filings to the Taiwan Stock Exchange detail that 23,000 containers will be produced by CXIC Group, 21,000 by Guangdong Fuwa Equipment Manufacturing, and 16,500 by Dong Fang International, a subsidiary of Cosco Shipping Development.

This marks Evergreen’s second major capital investment of the year, building on its $348 million order in June for six 2,400 TEU methanol dual-fuelled ships from CSSC Huangpu Wenchong Shipbuilding and 50,000 containers from top Chinese manufacturers, including Dong Fang and China International Marine Containers, at a cost of $162 million.

Adding to its forward momentum, Evergreen recently sought quotes from major shipbuilders for 11 methanol dual-fuelled 24,000 TEU ultra-large container vessels, demonstrating its commitment to sustainable shipping solutions.

Responding to Challenges: Growth Amid a Supply Chain Crisis

The timing of these investments is critical. Evergreen has linked its increasing container inventory to its expanding fleet. With the Red Sea crisis disrupting equipment supply chains and driving container freight rates to record highs, container manufacturers—primarily in China—are operating at full capacity, with many booked out until year-end. This highlights the urgent need for resilience in global shipping operations.

Evergreen’s financial results reflect its ability to thrive amidst these challenges. In the first nine months of 2024, the company reported net profits tripling year-over-year to $3.5 billion, driven by 68% revenue growth to $11 billion.

A Technological Leap Forward

On Friday, Evergreen chairman Chang Yen-I, alongside Taiwan’s transport minister and Kaohsiung officials, officially inaugurated Kaohsiung port’s Terminal 7, Taiwan’s first fully automated container terminal. Built over four years at a cost of $1 billion (with the government investing $642 million), the terminal spans 149 hectares along 2.4km of coastline and features five deepwater berths capable of accommodating four 24,000 TEU vessels simultaneously. With an annual processing capacity of 4.5 million TEU, this state-of-the-art facility will serve as Evergreen’s strategic home base in Kaohsiung.

A Call for Greater Supply Chain Visibility

As Evergreen scales its operations and invests in sustainability, the global shipping industry faces growing complexities. The Red Sea crisis and fluctuating freight rates underline the need for real-time supply chain visibility. Implementing advanced software solutions can provide Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) with critical data insights, enabling them to make informed decisions that mitigate risks, optimise operations, and adapt to market disruptions.

The integration of such technologies is no longer optional—it’s essential for building resilient and sustainable supply chains. With climate impacts and market volatility reshaping global trade, real-time visibility empowers stakeholders to address both environmental challenges and operational inefficiencies effectively.

Evergreen’s strategic investments signal an exciting future for shipping, but they also highlight the industry’s pressing need for innovation—not just in fleet and terminal upgrades but also in how we manage and monitor the flow of goods across the globe.

UK Leads Europe with Record 1.29 Billion Parcel Deliveries This Peak Season

A new study commissioned by FedEx has revealed a staggering forecast for the 2024 peak season: UK parcel carriers are expected to distribute 1.29 billion shipments between October and December. This marks a 10.9% increase compared to 2023’s figures, representing the largest projected growth in Europe. With the UK accounting for 21% of Europe’s total deliveries during this period, the nation is leading the pack in logistics demand.

Conducted by Effigy Consulting, the study analysed over 500,000 data points across 300 carriers in 41 countries, painting a detailed picture of the challenges and opportunities ahead. Alun Cornish, Operations Managing Director at FedEx, emphasised the critical nature of peak season for UK businesses: “Online shopping, e-commerce, and a shift towards deferred services are reshaping demand. FedEx’s networks will scale to meet this increase, using predictive technologies to navigate potential disruptions.”

A Peak Like No Other

The UK is forecast to handle nearly 1.3 billion parcels this year during peak season, far outpacing Germany’s projected 1.1 billion deliveries and France’s 524.7 million. Cornish noted that the UK’s return to pre-pandemic levels signals renewed confidence in both British businesses and consumers, underscoring the critical role logistics and transportation play in supporting economic recovery.

But this surge doesn’t come without its challenges. Retailers must contend with three distinct peaks within the peak: Singles’ Day, Black Friday and Cyber Monday, and the lead-up to Christmas. Each period demands specific strategies to address the surge in volume, with some businesses experiencing as much as a 30% increase in trading during this time.

The Role of Technology in Managing the Surge

To meet this rising demand, logistics companies are leveraging cutting-edge technology. FedEx has introduced AI-driven tools like Surround, which uses weather data to reroute packages and avoid delays, and SenseAware, which provides real-time package location updates using RFID technology. These innovations ensure smoother operations and help logistics service providers (LSPs) manage their supply chains with precision.

Visibility software plays an increasingly pivotal role here. By providing real-time data insights, businesses can make informed decisions that mitigate disruptions. For Beneficial Cargo Owners (BCOs) and LSPs, such tools are indispensable for navigating the high-stakes “golden quarter,” where timing is everything.

Sustainability and Visibility: The Future of Logistics

With the surge in parcel volumes comes the urgent need to address environmental impacts. Technologies that enhance supply chain visibility not only improve operational efficiency but also allow businesses to track and reduce carbon footprints. As the logistics sector balances growth with sustainability, real-time data insights become critical in enabling eco-conscious decision-making.

The UK’s leadership in parcel logistics is a testament to its resilience and adaptability. However, to maintain this position, businesses must embrace the dual goals of operational excellence and environmental stewardship. For BCOs and LSPs, this means leveraging visibility software to make data-driven decisions that enhance both performance and sustainability.

US East Coast Port Negotiations Stalled Again Over Automation, Raising Concerns for Supply Chain Stability

East Coast Port Contract Talks Stalled Amid Automation Debate

Negotiations over a new master contract between US East Coast port employers and the International Longshoremen’s Association (ILA) appear to have stalled yet again, as disputes over the future of automation threaten to delay a final agreement. The employer association US Maritime Alliance (USMX) issued a statement indicating that, while there was “positive progress on a number of issues,” talks had broken down over the implementation of port automation technologies, which have been in place in some US ports for almost two decades.

As the extended deadline for the new contract looms just over two months away, on 15 January, USMX confirmed that the current round of negotiations had ended inconclusively. The statement expressed a desire to resume discussions but underscored the sticking point: USMX wants to modernise port operations using technology to improve safety, efficiency, and supply chain capacity—without eliminating jobs. However, the ILA remains adamant that an agreement supporting automation would threaten jobs and reduce union influence over time.

A Complex Issue with Wide-Ranging Implications

Automation has become a vital tool for ports worldwide, not only to improve efficiency and safety but also to address pressing environmental concerns by reducing emissions and energy consumption. In today’s global landscape, where climate impacts are increasingly monitored, the inability to modernise ports could lead to severe bottlenecks, impacting everything from business profitability to carbon footprint management.

The demand for automation is also being driven by unprecedented supply chain pressures that surfaced in recent years, revealing significant inefficiencies in ports still reliant on manual processes. With major freight forwarders and logistics service providers (LSPs) now dependent on real-time data to mitigate disruptions, the stakes for a digitally integrated supply chain have never been higher.

USMX has emphasised that it seeks a balance, arguing that technological upgrades in East Coast ports are not about eliminating jobs but about evolving to meet current and future demands. “What we need is continued modernisation that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses and workers alike,” the statement said.

Visibility Software: A Critical Tool for Navigating Disruptions

As uncertainty mounts, LSPs and Beneficial Cargo Owners (BCOs) are increasingly concerned about the risk of a second port stoppage, which could severely disrupt US supply chains. Many LSPs have already pointed out the critical need for supply chain visibility software that provides real-time data insights. This technology allows businesses to make informed, business-critical decisions that counteract potential supply chain disruptions, particularly if negotiations continue to falter.

Such visibility is becoming indispensable in a climate where organisations must consider both supply chain efficiency and environmental impact. By leveraging real-time data insights, LSPs and BCOs can proactively manage climate impacts, mitigate delays, and optimise routes to reduce emissions.

Team Worldwide’s SVP International, Bob Imbrani, weighed in on the ILA’s stance, noting that “for the union, automation is an existential issue, as a reduction of its numbers over time would diminish its standing.” With automation posing both a potential risk and an opportunity, the importance of an innovative, tech-driven solution is evident as companies prepare to navigate the uncertain waters of 2024.

As the East Coast port negotiations continue, the US shipping industry stands at a crossroads. Whether the outcome of these talks leans toward innovation or tradition, one thing is clear: real-time supply chain and climate impact visibility will be crucial tools for LSPs, BCOs, and businesses alike to weather the challenges ahead and optimise their operations in an evolving global landscape.

Shanghai’s Bold Green Shipping Goal: Transforming the World’s Busiest Port

Shanghai, China’s largest metropolis and home to the world’s busiest port, has set an ambitious course to become a global centre for green shipping. As climate pressures intensify, Shanghai plans to build its capacity for low-carbon bunkering, preparing for anticipated emissions mandates from the International Maritime Organization (IMO). The city aims to supply over 1 million tons of low-carbon fuel annually by 2030, laying the groundwork for what could be a major shift in Asia’s maritime fuel market.

Rising to the Challenge of Decarbonisation

China’s green pivot comes amid growing competition with Singapore, Asia’s current bunkering hub, which also has a target of 1 million tons of low-carbon methanol by 2030. Singapore remains the world’s leading supplier of bunker fuel, providing over 50 million tons last year alone, compared to China’s 20 million tons in 2023. While the transition to alternative, hydrogen-based propellants such as methanol and ammonia is expected to take years, Shanghai’s focus on renewable energy-powered solutions may give it a strategic edge.

Building a Greener Maritime Supply Chain

China’s robust investments in solar and wind power position it strongly to lead in hydrogen-based fuels. Industry giants are mobilising: Longi Green Energy Technology Co., a top solar panel producer, has partnered with A.P. Moller-Maersk A/S to supply bio-methanol, while wind turbine manufacturer Goldwind Science & Technology Co. has launched projects for green ammonia and methanol valued at 200 billion yuan ($28 billion). The China Classification Society, a key maritime standards authority, projects that China will be able to supply 161 million tons of green ammonia and 143 million tons of green methanol by 2050—an impressive leap from current capacities.

This shift is crucial not only for emissions reduction but also for global supply chains navigating decarbonisation. With this rapid transition, Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) will face increasing challenges. As China builds this green energy capacity, real-time visibility solutions that monitor fuel sources, emissions, and climate impact across supply chains will be critical. Access to data insights can empower BCOs and LSPs to make informed decisions, mitigating potential disruptions and enabling strategic adjustments as mandates evolve.

The Long Game: Why Visibility Software Matters Now

With Shanghai’s green ambitions, the need for visibility software becomes evident. Real-time climate impact and supply chain data will empower stakeholders to adapt to this shift, manage costs effectively, and align with stricter global standards. As Shanghai steps into a pioneering role in green shipping, it presents a compelling case for embracing digital solutions that provide transparency and enable proactive, data-driven decisions in the journey towards a cleaner maritime industry.

Maersk Halifax Sets Sail for Green Shipping – First Large Containership Converted to Methanol Fuel

In a significant milestone for sustainable shipping, Maersk has completed the conversion of its Maersk Halifax to run on dual-fuel methanol, marking it as the first large, in-service vessel to undergo such a transformation. Celebrated in a ceremony in China on 29 October, this achievement signals a new chapter in green shipping as carriers strive to reduce their carbon footprints and meet rising environmental regulations.

The Maersk Halifax, built in 2017 and measuring 1,158 feet (352 metres) with a capacity of 15,226 TEU, is now a striking 1,204 feet (367 metres) long and boasts a nominal capacity of 15,262 TEU. This complex retrofit took place at Zhoushan Yatai Ship Engineering and Repair Co., where the shipyard’s prefabricated approach helped complete the project within 236 days, significantly accelerating the transition. Maersk’s conversion project included a main engine upgrade, installation of dedicated methanol fuel tanks, and integration of a dual-fuel line. Alfa Laval supplied the fuel system, and a specialised zinc coating was applied to protect the new methanol tanks by Chengxi Walxin Special Coatings Co., covering 2,800 square metres.

Klaus Rasmussen, Head of Projects and PVU Sales at MAN PrimeServ, explained the conversion’s feasibility, noting that “retrofitting a MAN B&W engine to dual-fuel running is straightforward as our standard, electronically-controlled ME-C diesel engines are constructed as ‘dual-fuel ready’ and therefore readily retrofittable.”

The Maersk Halifax began sea trials on 16 October and completed them within four days. According to Maersk’s systems, the vessel departed Shanghai on 5 November and is set to make stops in China and South Korea before arriving at APM Terminals Lazaro Cardenas in Mexico. Maersk has confirmed that similar methanol conversions are planned for sister ships, with the next retrofit scheduled for 2027.

A Wave of Methanol Conversions Sweeps the Industry

Maersk’s pioneering effort underscores a broader trend across major shipping lines, as competitors COSCO, CMA CGM, and Seaspan (in partnership with Hapag-Lloyd) are actively planning their own methanol conversions. Recently, work began on a 20,000 TEU COSCO containership at Shanghai COSCO Shipping Heavy Industry, which will also be outfitted to run on methanol using both the MAN S90 main engine and the Wärtsilä W32 auxiliary engine.

This wave of conversions marks a fundamental shift in how the shipping industry approaches fuel efficiency and emissions, setting new standards for sustainability in global logistics. However, as companies increasingly adopt methanol and other alternative fuels, the need for visibility and real-time data becomes essential. Effective supply chain management is no longer just about moving goods—it’s about understanding the environmental impact and enabling Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make informed decisions that drive sustainability and efficiency.

The Role of Real-Time Data in Green Shipping

As these advancements accelerate, implementing supply chain and climate-impact visibility software will be critical. Real-time data insights empower BCOs and LSPs to track vessel fuel efficiency, route emissions, and potential disruptions, equipping them to make timely, business-critical decisions. By monitoring environmental impact in real time, stakeholders can optimise their supply chain operations, adapt routes as needed, and achieve greater transparency in their climate commitments. This digital shift is essential for mitigating the environmental impacts of global shipping and ensuring that supply chains are not only efficient but also sustainable.

In embracing methanol and technology-forward solutions, Maersk and other leading shipping companies are forging a path toward a greener future, and robust data-driven tools will be instrumental in helping them reach that goal.

Biden’s $3 Billion Clean Ports Initiative to Revolutionise U.S. Port Infrastructure and Tackle Climate Impact

Today, at the Port of Baltimore, President Joe Biden announced the U.S. Environmental Protection Agency’s (EPA) selection of 55 projects across 27 states and territories, set to receive a transformative $3 billion investment under the Clean Ports Program. This initiative is part of the administration’s broader strategy to modernise infrastructure while addressing urgent climate goals, a vital step towards creating resilient, low-emission supply chains in America’s logistics hubs.

The Clean Ports Program, an essential element of Biden’s infrastructure plan, focuses on deploying zero-emission equipment, converting traditional energy sources to shore power, and advancing cleaner technologies across America’s ports. According to EPA Administrator Michael S. Regan, “Our nation’s ports are critical to creating opportunity here in America, offering good-paying jobs, moving goods, and powering our economy. Today’s historic $3 billion investment builds on President Biden’s vision of growing our economy while ensuring America leads in globally competitive solutions of the future.”

These efforts to “green” ports couldn’t be more necessary. Port and freight equipment—ranging from trucks and marine vessels to cargo-handling machinery—are known contributors to diesel pollution, which impacts communities around port areas and accelerates carbon emissions. The EPA’s analysis indicates the Clean Ports Program’s investment will cut over 3 million metric tonnes of carbon emissions, equivalent to the energy usage of 391,220 homes for one year.

Among the ports receiving significant funding are:

  • Port Authority of New York and New Jersey: £344 million
  • Port of Oakland, California: £322 million
  • Maryland Port Administration: £147 million
  • Philadelphia Regional Port Authority: £77.7 million
  • Georgia Ports Authority: £49 million
  • Port of Detroit, Michigan: £21.9 million
  • Port of Houston Authority: £3 million
  • Northwest Seaport Alliance (Washington): £3 million
  • Puerto Rico Ports Authority: £1.8 million

This funding is set to be transformational, enabling these ports to deploy a range of clean technologies, including over 1,500 units of cargo-handling equipment, 1,000 zero-emission drayage trucks, 10 electric locomotives, and 20 green-energy vessels. Additional investments will go towards shore power systems, solar energy, and both battery-electric and hydrogen charging infrastructure.

Real-Time Data: The Missing Link in a Climate-Resilient Supply Chain

As port operations and technology rapidly evolve, so too does the need for data-driven insights to ensure resilience in an increasingly complex logistics environment. Real-time supply chain visibility software, designed to track climate impact and operational efficiency, is essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) in order to make informed, timely decisions. By integrating this technology, LSPs can identify and counteract disruptions—whether from equipment delays, port congestion, or climate-related events—before they impact the broader supply chain.

The need for visibility and adaptability is further underscored by the unprecedented interest in clean technology funding: in early 2024, the EPA reported over £8 billion in grant requests from ports nationwide. Following a rigorous review process, 55 top applications were chosen, each designed to address critical issues in emissions and infrastructure sustainability. For example, the Port Authority of New York and New Jersey will deploy electric cargo-handling equipment and drayage trucks, phase out parts of its legacy fleet, and install shore power systems. Meanwhile, the Port of Oakland will install electric and hydrogen-based cargo equipment, a charging system, and a battery energy storage solution.

Supported by the Inflation Reduction Act of 2022, this landmark funding sets the stage for the adoption of real-time climate and supply chain visibility software. As U.S. ports increasingly integrate zero-emission technologies, the capacity to monitor these investments in real-time will prove invaluable. With climate and supply chain impacts now inextricably linked, the capability to provide immediate data insights will enable LSPs and BCOs to make business-critical adjustments—aligning with evolving environmental standards and market demands.

The Clean Ports Program promises a greener, data-driven future, ultimately setting a new standard for sustainable logistics across U.S. ports and opening the door for broader application of visibility technologies.