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April 2 2018

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6 The Journal of Commerce | April 2 2018 Spotlight Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Barbara Wyker 908 777 3217, Senior Editors: Joseph Bonney Breakbulk/Project Cargo, Gulf Coast 973 508 2417, William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo West Coast 562 428 5999, Hugh Morley Northeast, Mexico 646 679 3475, Greg Knowler Europe Editor, Maritime & Trade, IHS Markit +44 7976798770, Turloch Mooney Global Ports, Maritime & Trade, IHS Markit +852 9011 9109, Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, Web Editor: Joseph Lazzaro 917 309 0148, Data Analyst: Dustin Braden 646 679 3450, Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 Senior Designer: Sue Abt, 862 371 3534, Designer: Bryan Boyd, 908 910 7849, Publisher: Tony Stein, 770 295 8809, 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: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Managing Director, Media and Events, Maritime & Trade, IHS Markit, Rhiannon James Senior Director, Content, Maritime & Trade, IHS Markit, Peter Tirschwell Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Marketing Programs Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, Tight truck capacity squeezes European shippers European trucking is on a roll, with freight rates at a decade high and set to climb higher in the coming months as the $240 billion industry profits from a shortage of drivers that is cutting capacity against a backdrop of rising demand as economic growth gathers pace across the continent. But even as trucking dominates the transportation market, it's facing a further flurry of attempts by the European Union, its member governments, and shippers and ports to force or lure traffic to rival modes, particularly rail. For now, however, the business is basking in a bull market, with freight rates jumping 14 percent year over year in the fourth quarter of 2017 to the highest level in a decade, according to the latest Transport Market Monitor from Capgemini Consultancy and Transporeon, a Dutch logistics software company. "Transport companies managed to get good prices for their services in 2017, but (the fourth quarter) is really unique," said Erik van Dort, Capgemini's supply chain director. "In the 11 years that we've tracked transport prices, we never recorded such high prices." This was in sharp contrast to the first quarter of 2017, Ocean carriers try to recoup higher US surface costs US beneficial cargo owners (BCOs) scrambling to manage their supply chains amid intermodal rail delays and rising truck prices are paying an extra $300 per container under existing contracts, with some ocean carriers seeking to recoup their higher costs in the tight surface transport market. The truck capacity pressure, exacerbated by the federal electronic logging device (ELD) mandate, is trickling down to all modes of inland cargo transportation: railroad, drayage, and transloading and long-haul truckload. Ocean carriers are responding with a mixture of actions consisting of emergency surcharges, raising tariffs, and suspending or restricting store-door deliveries in the US. Higher surface transportation costs also are factoring into BCO and carrier negotiations of service contracts, which generally run from May to late April. Some carriers are working to reduce their exposure to store-door contracts where they have responsibility for inland moves to and from the port. Cosco Shipping, for example, told The Journal of Commerce that hopefully "a lot of this can be addressed in one- on-one negotiations with our (customer) accounts" rather than a widespread action. Trucking costs are expected to rise aer April 1 when law enforcement will place drivers out of service for failure to oper- ate a working ELD or for violating hours-of-service regulations. Daily truck productivity also is expected to drop with ELDs, and when coupled with rail ramp delays, ocean carriers are worried the speed in turning around chassis will slow, increasing rental charges. The Journal of Commerce

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