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October 1 2018

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6 The Journal of Commerce | October 1 2018 www.joc.com Spotlight Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, chris.brooks@ihsmarkit.com Executive Editor, The Journal of Commerce and JOC.com: Mark Szakonyi 202 872 1234, mark.szakonyi@ihsmarkit.com Managing Editor: Barbara Wyker 908 507 4802, barbara.wyker@ihsmarkit.com Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, bill.cassidy@ihsmarkit.com Bill Mongelluzzo West Coast 562 428 5999, bill.mongelluzzo@ihsmarkit.com Hugh Morley Northeast, Mexico 646 679 3475, hugh.morley@ihsmarkit.com Eric Johnson Technology 213 444 9326, eric.johnson@ihsmarkit.com Janet Nodar Breakbulk and Heavy Li 251 473 2742, janet.nodar@ihsmarkit.com Greg Knowler Europe +44 7976798770, greg.knowler@ihsmarkit.com Turloch Mooney Global Ports +852 9011 9109, turloch.mooney@ihsmarkit.com Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, ari.ashe@ihsmarkit.com Web Editor: Joseph Lazzaro 917 309 0148, joseph.lazzaro@ihsmarkit.com Data Analyst: Dustin Braden 646 679 3450, dustin.braden@ihsmarkit.com Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 alessandra.barrett@ihsmarkit.com Senior Designer: Sue Abt, 862 371 3534, sue.abt@ihsmarkit.com Designer: Bryan Boyd, 908 910 7849, bryan.boyd@ihsmarkit.com Publisher: Tony Stein, 770 295 8809, tony.stein@ihsmarkit.com Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: www.joc.com/help 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Executive Director, Editorial Content, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, www.joc.com. The Journal of Commerce ILWU Canada contract talks continue An averted strike threat in early September at the port of Vancouver, British Columbia, has refocused shippers' attention to separate negotiations between the International Longshore and Warehouse Union (ILWU) Canada and waterfront employers in the province involving longshore and foreman locals. The British Columbia Maritime Employers Association (BCMEA) and the ILWU Canada locals have been negotiating since February on a new agreement to replace the eight-year contract that was set to expire on March 31. Negotiations have not affected cargo handling at British Columbia ports, including Vancouver and Prince Rupert. "It's business as usual," BCMEA spokesperson Lauren Chan said. "Both sides continue working toward an agreement," she said. Maersk integrator evolution progresses Maersk is splitting its freight forwarding and supply chain services subsidiary Damco into two entities; folding two regional carriers into another, SeaLand; and decentralizing regional decision- making. The announcement, made Sept. 19, is the latest phase in the largest global container line's effort to reinvent itself as an integrated container transport and logistics provider. Through the restructuring, Damco's supply chain services — in essence, those targeting its origin-destination cargo customers — will be rolled into the Maersk brand and integrated with its Maersk Line ocean product. The integrated business will be headed by Maersk Chief Commercial Officer Vincent Clerc. "The integrated commercial organization will operate with one management team, one sales force, a strong product organization and one customer experience organization," Maersk said. Damco's freight forwarding business, meanwhile, will continue to operate as an independent brand focusing on customers that need "air freight or multicarrier options in ocean freight." The Damco business will be headed by Saskia Groen In't Woud, currently the forwarder's chief operating officer. As part of the reorganization of Damco, Maersk told The Journal of Commerce that it is also undergoing a decentralization of regional decision-making, including solutions development, product bundling, and pricing. Each regional entity will have its own profit and loss responsibility. That's a move away from the company's existing centralized pricing strategy. Business models are blurring the lines between carriers and freight forwarders, Ulrik Sanders, senior partner and managing director at The Boston Consulting Group, said in a keynote address at JOC's Container Trade Europe 2018 conference in Hamburg in September. "Lines are sick and tired of being stuck with heavy assets and not being accretive on non-asset services," he said. "The lines are not making money. If you look at return on sales and return on assets, historically, they are horrible. Shipping lines are being forceful, they're thinking differently. They've been trying to shave cost out, and that doesn't work over time. They need to rethink how they come at the value chain to get what I'd call decently average returns." Damco

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