That goal was clear in recent remarks by current Acting Assistant Attorney General Richard Powers. In discussing the Division’s criminal enforcement trends, Powers noted that last fiscal year saw the most corporate fines and penalties of the past five years and the most open grand jury investigations in the last decade, and that the Division’s current number of indicted cases (17) across 14 different investigations is the most in modern history, and reaffirmed the Division’s ongoing objective to hold individual executives accountable for antitrust crimes.[2]

Now more than ever, companies must be vigilant in ensuring compliance with competition laws. While the new executive order focuses on industry consolidation amongst the largest carriers and alliances that may hinder competition and increase prices, historically, the Division has repeatedly pursued conduct cases against firms suspected of cartel activity such as price fixing, market allocation, and bid rigging conspiracies, and clients should expect that enforcement focus to continue.

The Division has an array of tools at its disposal for uncovering anticompetitive conduct. It relies heavily on its leniency program to encourage self-reporting of antitrust violations by providing strong incentives to cooperators,[3] but also employs traditional investigative resources such as the grand jury, search warrants and subpoenas, consensual monitoring such as audio or video tape recordings, wiretaps, and the like. The Division also coordinates with other federal agencies and its international counterparts in monitoring, investigating, and prosecuting cartel activity. Cooperation with international antitrust enforcers—most of which have leniency programs of their own—includes tactics such as coordinated searches or dawn raids, information and evidence sharing, and extradition agreements, as well as broader coordination of international enforcement strategy through organizations like the International Competition Network. As such, firms with global operations must ensure compliance with the antitrust regimes of multiple jurisdictions.

In the United States, antitrust violations carry the threat of substantial corporate criminal fines—sometimes running into the hundreds of millions of dollars—as well as prison sentences for individual executives and employees, and this extends to foreign corporations and foreign nationals.[4] Firms also can face enormous private civil class action litigation exposure, as such cases typically follow announcement of criminal antitrust investigations within days, even without guilty pleas or convictions. Mere allegations of a possible antitrust violation can be enough to spur costly litigation. Thus, implementation of a robust, effective corporate antitrust compliance program is critical to educate employees and avoid problems before they arise.[5]

This article provides a brief overview of recent criminal antitrust enforcement in the transportation sector, focusing on international air and ocean shipping, to exemplify likely areas of scrutiny and potential consequences of misconduct.

Air transportation
President Biden’s recent executive order directs the Department of Justice (DOJ) and the Department of Transportation to coordinate on competition issues in air transportation, with particular attention to anticompetitive practices impacting passenger travel, but also more broadly to ensure improved competition with respect to market entry and improved service and capacity. Historically, the industry has been monitored closely by global antitrust enforcers and has been the subject of numerous investigations, and that level of attention is expected to continue.

In 2006, the Division commenced an international investigation of the air carrier industry in coordination with European authorities.[6] Leniency was granted to Lufthansa and Virgin Atlantic in exchange for their cooperation, revealing far-reaching conspiracies to fix fuel surcharges for cargo shipments and for passenger tickets.[7] The conspiracy was carried out through meetings and other communications in which the participants discussed and agreed to fix certain rates and surcharges, as well as to monitor and enforce them after implementation. British Airways and Korean Air Lines soon pleaded guilty to price fixing of the surcharges on both cargo and passenger flights, each paying $300 million in criminal fines, and also agreed to cooperate in the investigation. In all, 22 airlines and 21 executives have been charged in the DOJ investigation, more than $1.8 billion in criminal fines have been imposed, and eight executives have been sentenced to prison. Just last year, the DOJ obtained extradition of an air cargo executive, a Dutch national, who had been apprehended in Italy after nearly 10 years as a fugitive. She pleaded guilty and was sentenced to 14 months in prison (with credit for time held by the Italian government pending extradition) and ordered to pay a $20,000 criminal fine.

Antitrust authorities’ attention to the air transport industry extends beyond large carriers alone. The market for air freight forwarding services also has been the subject of international enforcement activity. Between 2010 and 2013, the Division charged 16 freight forwarders with multiple conspiracies to fix and to impose on shippers certain freight forwarding service fees, including fuel surcharges and various security fees, for services provided in connection with international air freight forwarding during 2002–2007. The companies either pleaded or agreed to plead guilty and paid criminal fines totaling more than $120 million.[8]

Ocean shipping
With respect to the market for maritime transport, the Division shares enforcement duties with the Federal Maritime Commission (FMC). The FMC monitors the effects of ocean carrier alliances on competition and can bring civil actions in court to enjoin agreements if they are likely, by a reduction in competition, to result in unreasonable price increases or service reductions, or to substantially lessen competition in purchasing covered services.[9] The FMC Bureau of Enforcement investigates potential violations and can negotiate settlements and informal compromises of civil penalties, or may engage in formal FMC proceedings. The Biden Executive Order encourages the FMC to cooperate with DOJ on enforcement efforts—focusing on the significant fees imposed on U.S. exporters by increasingly consolidated foreign shipping conglomerates—pursuant to which the agencies signed a Memorandum of Understanding in July 2021 to enable regular collaboration and review of shipping industry competition issues. It thus seems likely that market participants can expect increased attention to the pricing practices of alliances of large ocean carriers.

Most recently, ocean carriers engaged in transportation of “roll-on/roll-off”[10] cargo to and from the U.S. and elsewhere have been the target of a major international criminal investigation into a worldwide conspiracy from as early as 2006 through 2012, affecting hundreds of millions of dollars in commerce. Beginning in 2014, DOJ has brought charges in Maryland federal court—the most recent filed in 2018—against five carriers based in Japan, Norway, and Chile, plus 13 individual employees, for price fixing, bid rigging, and allocation of customers and routes. The court has ordered the carriers to pay a total of more than $255 million in criminal fines. To date, four individuals of those charged have pleaded guilty and been sentenced to prison terms ranging from 14 to 18 months plus a $20,000 fine. Others remain fugitives.[11]

The deep-sea container shipping industry has been the subject of investigation as well. As a recent example, the Division raided the biannual “Box Club” meeting in 2017, serving subpoenas on CEOs of the major lines concerning potential price fixing. According to several carriers, the investigation concluded in 2019 without any charges or fines. This followed an earlier investigation by the European Commission’s Directorate-General for Competition (DG Comp), which opened formal proceedings in 2013 against several container shipping companies, concerned that their practice of publicly announcing intended price increases allowed them to exchange information on future pricing intentions. In 2016 the Commission accepted, and made legally binding, commitments by the companies to alter their pricing announcements to ensure transparency to customers and avoid competition concerns.

As was the case in the air cargo industry, freight forwarding services for ocean shipping have been the subject of investigation as well. The Division recently investigated and charged a nationwide conspiracy to fix prices for international ocean freight forwarding services during 2010–2015, resulting in guilty pleas in 2018 and 2019.

The Division also pursued a domestic shipping conspiracy to allocate customers, rig bids, and fix rates and surcharges levied on purchasers of coastal water transportation of freight (e.g., heavy equipment, perishable food items, medicine, and consumer goods) between the continental United States and Puerto Rico during the period 2002–2008, leading to charges against three companies and seven individuals. Between 2008 and 2013, the companies received fines ranging from $14–17 million each, and executives received prison sentences ranging from 7–60 months plus fines of $20,000 each.

Importantly, on top of the criminal fines and prison sentences, each of the antitrust investigations in the air and ocean transportation markets that resulted in criminal penalties quickly spawned private plaintiff class action lawsuits seeking treble damages, costing the companies involved millions of dollars in defense and settlement costs.

The best defense, as noted above, is for companies to educate their executives and employees about common antitrust traps and competitor interactions to avoid through implementation of a well-crafted, comprehensive, and effective antitrust compliance program. In the current antitrust enforcement climate, transportation industry clients can expect increased scrutiny of shipping rates, fees, and surcharges, as well as any action or conduct that may result in reduced competition among carriers. Companies are strongly encouraged to consult with experienced antitrust counsel before pursuing any strategy or course of action that could raise a red flag.

The authors
William E. Lawler III is a Partner, White Collar Defense & Investigations at Blank Rome.

Kierstan L. Carlson is a Partner, Maritime at Blank Rome.

1. See Briefing Room, The White House, Executive Order on Promoting Competition in the American Economy (July 9, 2021), whitehouse.gov/
briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/.
2. See U.S. Dep’t of Just., Antitrust Div., Remarks by Richard A. Powers, Criminal Antitrust Enforcement: Individualized Justice in Theory and
Practice (July 21, 2021), justice.gov/opa/speech/acting-assistant-attorney-general-richard-powers-delivers-remarks-symposium-corporate.
3. Among these incentives are that the first company to come forward and admit involvement in an antitrust conspiracy, if granted amnesty,
is given full immunity from criminal prosecution in exchange for its cooperation in the investigation (and this immunity extends to covered
cooperating executives and employees), and will be individually liable for only actual, not treble, damages in any related civil litigation in which
it cooperates. See Leniency Program Page, U.S. Dep’t of Just., Antitrust Div., justice.gov/atr/leniency-program. Even if a company is not the first
in the door, it may still benefit in other ways from admitting involvement and providing cooperation, such as through a deferred prosecution
agreement.
4. To date, non-U.S. corporations have accounted for more than 80% of criminal fines of $10 million or more obtained by the Antitrust Division.
See U.S. Dep’t of Just., Antitrust Div., Sherman Act Violations Resulting in Criminal Fines & Penalties of $10 Million or More,
justice.gov/atr/sherman-act-violations-yielding-corporate-fine-10-million-or-more (updated July 16, 2021).
5. Indeed, the Antitrust Division now evaluates and may credit well-designed, comprehensive, and effective compliance programs carried out in
good faith at both the charging and sentencing stages of an investigation. See Press Release, U.S. Dep’t of Just., Antitrust Division Announces
New Policy to Incentivize Corporate Compliance (July 11, 2019), justice.gov/opa/pr/antitrust-division-announces-new-policy-incentivizecorporate-
compliance; U.S. Dep’t of Just., Antitrust Div., Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations (July
2019), justice.gov/atr/page/file/1182001/download.
6. The European Commission’s Directorate-General for Competition (DG Comp) opened its air cargo investigation following Lufthansa’s
application for leniency in December 2005. It found that the carriers coordinated pricing for airfreight services from, to, and in some cases
within, the European Economic Area, with respect to fuel and security surcharges, and refused to pay commission to freight forwarders on
surcharges, between 1999–2006. The Commission imposed fines totaling nearly 800 million Euro on 12 carriers in 2010 (Lufthansa received full
immunity, and most other carriers received reduced fines for cooperation). Related enforcement actions by competition authorities around the
world, including Japan, Korea, Canada, and Australia, have led to imposition of additional fines.
7. Other ancillary air passenger fees, such as those for baggage, changes, or cancellations, are a focus of attention in the recent Biden Executive
Order.
8. The Japan Fair Trade Commission (JFTC) had in 2009 imposed cease and desist orders and surcharge payment orders totaling over
nine billion yen on 12 freight forwarders, and found two additional companies to have committed violations. DG Comp also investigated after
Deutsche Post first reported the cartel, and in 2012 fined 14 corporate groups a total of 169 million Euro for their participation (Deutsche Post,
including subsidiaries DHL and Exel, were granted full immunity).
9. Large international ocean carriers generally belong to alliances, of which three major ones currently exist and together account for more
than 80% of the global container shipping trade. These alliances—themselves cooperative agreements among competitors—historically have
enjoyed a limited antitrust exemption for certain maritime shipping agreements filed with the FMC, but that limited exemption does not
preclude enforcement actions against unreasonable competitive restraints or criminal cartel conduct. Moreover, the Antitrust Division has
repeatedly taken the position that the exemption is no longer justified. See, e.g., U.S. Dep’t of Just., Antitrust Div., Comments on The Alliance
Agreement, FMC Agreement No. 012439 (Nov. 22, 2016), justice.gov/atr/page/file/913521/download; U.S. Dep’t of Just., Antitrust Div.,
Comments on the OCEAN Alliance Agreement, FMC Agreement No. 012426 (Sept. 19, 2016), justice.gov/atr/file/909131/download. The similar
maritime exemption from EU competition law was repealed in 2008, except for shipping consortia falling below a designated market share
threshold.
10. “Roll-on/roll-off” refers to non-containerized cargo that literally rolls on wheels onto or off of the shipping vessel—generally, cars, trucks, and
construction or agricultural equipment.
11. DG Comp concluded its ocean vehicle carriage inquiry in 2018 with a decision imposing fines totaling nearly 400 million Euro on four carriers,
with a fifth receiving immunity for its initial report of the conspiracy in 2012. The Commission found that, during 2006–2012, the carriers
engaged in meetings and/or other communications through which they agreed to coordinate pricing, allocate customers, and/or reduce
capacity through coordinated scrapping of vessels, and followed a “rule of respect” whereby carriers would refuse to bid or bid high such that
certain business would remain with an incumbent carrier. Numerous other international enforcers

Source: www.marinelink.com

Image: www.pixabay.com

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The latest market forecast from consultant Transport Intelligence (Ti) shows that the forwarding market (in total value terms) is expected to improve by 12% in 2021 compared with last year.

The growth will also make the forwarding market 2.3% larger than the pre-pandemic year of 2019 and was driven by a strong first half, which improved by 19%.

During the first six months of the year, the airfreight forwarding market grew by 26%, a “much faster pace” than seafreight which grew by a “still strong” 10.3%.

“Strong recovery in the forwarding market has been built on a base of fiscal support packages implemented throughout 2020 and the reopening of economies which boosted consumer demand in H1 2021,” Ti said.

“Rapidly recovering consumer demand promoted a surge in global trade, resulting in very low inventory levels which shippers have been working to replenish amid a market with severe capacity constraints.

“This has led to high demand for air freight services throughout 2021 and especially in the first half of the year.”

The airfreight market also continues to benefit from improved cost-competitiveness relative to seafreight, despite historically high airfreight rates, Ti said.

IATA figures show that the the average price to move air cargo was 12.5 times more expensive than sea shipping before the Covid crisis, whereas in September 2021 it was only three times more expensive.

However, Ti said that the forwarding market has of late been facing headwinds with bottlenecks and supply chain disruptions weighing on global economic activity.

“Advanced economies have been experiencing supply disruptions throughout the year, which are likely to continue in the short-term, whereas low-income developing countries have been faced with worsening pandemic dynamics.

“These headwinds are reflected in the slowing pace of growth through the second half of 2021.”

The consultant also provided a market growth forecast running to 2025.

Ti expects the freight forwarding market to grow at a compound annual growth rate (CAGR) of 5.1% between 2020 and 2025.

“The growth forecast is driven in large part by Asia Pacific and North America expansions over the period which have CAGRs of 6% and 4.9% respectively, serving to highlight the importance of those regions to the global market.

“The air forwarding market is forecast to have slightly faster growth, expanding at a 5.6% CAGR over the period, while the sea forwarding market is expected to grow slightly less quickly at a 4.5% CAGR out to 2025.”

Ti added that it expects the capacity constraints and supply chain bottlenecks that have been a feature of the global logistics market in 2021 to dissipate.

“This will result from both the above-mentioned return of demand and trade levels to historical averages, as well as a normalisation of the capacity situation on air and seafreight markets.”

Source: www.aircargonews.net

Images: www.pexels.com

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Creating a level playing field

To improve multimodal traffic, in addition to technical innovation and addressing the challenges of competitiveness, it is necessary to fully internalize external costs for all modes of transport in order to create a level playing field. It also means taking serious steps to maintain and restore Europe’s separate wagonload system, to connect strategic infrastructure (such as ports) to rail solutions, to invest in industrial access roads and to involve large logistics companies in the modal reorientation of their flows.

Efficient and continuous multimodal freight flows

Attention must also be paid to other problems associated with multimodal transport (excluding the additional costs of transshipment and additional transaction costs), such as long delivery times, complexity, higher risk and less reliability, which make it difficult to deploy multimodality. Measures are therefore needed to make multimodal freight transport competitive and to create efficient and uninterrupted multimodal freight flows that cost as much as one mode of transport.

Adequate infrastructure

There is also a need to encourage the railway sector to better adapt to the open market and to address the lack of punctuality, reliability, predictability and flexibility that negatively affect multimodal solutions involving rail transport, while inland waterway transport needs to improve cross-border transport capacity. Adequate terminal infrastructure is essential for the future of the transport and logistics sector to be truly rooted and successful.

Smart digital solutions

For multimodal transport to be successful, it is essential to ensure that regulations governing, for example, the transshipment of dangerous goods between different modes of transport are harmonized and that other regulatory and practical issues that may hinder the interoperability of different modes of transport or transport between countries are addressed. A number of barriers to intermodal transport could be addressed through smart digital solutions, such as tracking and tracing capabilities and other digital solutions that facilitate the efficient management of multimodal transport flows.

Reduce the predominance of road freight

Multimodal transport would also to some extent facilitate the interaction of environmentally optimal modes of transport, including reducing the dominance of road freight transport. Multimodal logistics, including in cities, would facilitate more efficient planning and avoid empty journeys, and the need to include freight transport in urban mobility planning.
It is equally important to avoid complex rules defining combined or multimodal transport, which would ensure that the providers of these transport services are entitled to financial support and special market access rules.

Author: Roland Peterson, logistics expert

Image: pexels.com

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Staff shortages and congestion

Rapid changes in consumer behavior hit retailers unprepared, and when the economy stalled in the first half of 2020, retail sales fell, and inventories rose. Ocean carriers shipped more and more ships from China to the ports of Los Angeles / Long Beach, and incoming volumes have been huge. The situation was further complicated by the fact that a significant number of truck drivers were infected with Covid-19 and had to go into isolation, slowing down the movement of the containers and leaving them overcrowded. For example, since November 2020, between 20 and 40 container vessels have been continuously anchored near the ports of the Gulf of San Pedro, waiting up to 10 days to call at the port. The lack of staff only makes the situation worse.

The influence of the “Chinese factor”

Several studies suggest that the “China factor” should also be taken into account: production activity in China began to decline in the first quarter of 2020 due to the pandemic, and there were many cancellations of container vessels due to a lack of products from closed factories. The shortage of Chinese-produced raw materials, which is critical to production processes in the US, Japan and Korea, has had a negative impact on the global supply chain as a whole.

The demand of the importers

Already in the fourth quarter of 2020, Chinese production capacity reached its highest level in five years, but there is still an insufficient number of orders. US production capacity has still not recovered from pre-pandemic levels due to difficulties in attracting labor and a lack of various imported components. U.S. retailers are trying to meet demand and rebuild inventory. Ocean carriers have begun shifting more ships to alternative US ports, such as Auckland, Seattle-Tacoma, Savannah and Charleston. They have increased shipping rates in terms of spare capacity, but this has not deterred importers who are desperate to meet demand.

Historically the highest point for rail carriers

Experts estimate that the demand for more expensive air transport could increase, as transport trends have exacerbated the problem of container congestion in ports. The increase in the volume of ports in the second half of 2020 is also reflected in the volume of railways. Railway traffic exceeded the level of 2019 and reached a historically high level. Since August 2020, some railway lines have applied surcharges, sometimes as much as 100% of the base rate.

Inability to react to sharp fluctuations

The pandemic has forced the global transport sector to cope with highly volatile trade flows. Ocean carriers shall take all practicable steps to improve the speed and efficiency of cargo traffic, including the use of the capacity of all available vessels. When demand fell by around 20% to 30% in the second quarter of 2020, carriers restricted services and a number of ships were idle. However, as cargo volumes increased, carriers were unable to adapt quickly enough.

Author: Roland Peterson, logistics expert

Image: www.pexels.com

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This new offer will combine both sea and rail service departing from China, Korea and Japan to Europe, via Vladivostok and Vostochniy with further feeder connections from St Petersburg.

From St. Petersburg, cargoes can be shipped directly to some of the major European hubs such as Antwerp, Bremerhaven, Rotterdam and Le Havre through our European feeder network offering an extensive coverage of ports and inland connections in the continent.

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Image source: MSC

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The combined network’s new single-line offerings will deliver dramatically expanded market reach for customers served by CP and KCS, provide new competitive transportation service options, and support North American economic growth. The transaction is also expected to create jobs across the combined network. Additionally, efficiency and service improvements are expected to achieve meaningful environmental benefits.

While remaining the smallest of six U.S. Class 1 railroads by revenue, the combined company will be a much larger and more competitive network, operating approximately 20,000 miles of rail, employing close to 20,000 people and generating total revenues of approximately $8.7 billion based on 2020 actual revenues.

“This transaction will be transformative for North America, providing significant positive impacts for our respective employees, customers, communities, and shareholders,” said CP President and Chief Executive Officer Keith Creel. “This will create the first U.S.-Mexico-Canada railroad, bringing together two railroads that have been keenly focused on providing quality service to their customers to unlock the full potential of their networks. CP and KCS have been the two best performing Class 1 railroads for the past three years on a revenue growth basis.

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Which countries export the best train technologies?

Although Great Britain and US dominated in the market of train technologies for many decades, their prestige decreases now. At the same time, China is, perhaps, not the best exporter of railway technologies; however, it is certainly the largest market player, particularly – in the field of high-speed trains. Most of the Western countries would have to learn many things from Chinese high-speed railway network, which is one of the most efficient in the world, and its value during the last decade had been around 34 billion euro thanks to enormous investments, the purpose of which had been to improve the condition of railway tracks and to build new rolling stock.

If China is the largest exporter of railway technologies in the world, then its neighbouring country Japan certainly is technologically the most advanced manufacturer in the market. At present Japan has corrected the length of its manufactured bullet train, because its aim was to reach the markets of Taiwan and Texas. Probably, there is no surprise that in the global railway efficiency study 2019 two best places were taken by Japan and Hong Kong.

India also continues to make progress. There the passenger transportation by railway during two decades has increased by almost 200% and the cargo transportation – by 150%.

Meanwhile, Germany has become the leader of European and international railway markets. One of the most efficient railway companies in the world is situated in Germany (company – Deutsche Bahn). Besides, Germany has manufactured the world’s first hydrogen-powered train, thus striving to reduce the use of diesel for the operation of railway system.

Although Germany was the first country to introduce hydrogen-powered trains on its train paths, the manufacturer supporting this idea comes from France. France is also considered to be one of the heavyweight representatives and one of the main railway machinery exporter in the world with different projects in Africa, Europe, US and outside it.

Italy also is considered to be one of the most important railway exporters. And it is the first European country that introduced high-speed cargo transportation by railway. Using the high-speed railroad, the private trains or “railway Ferrari” linked capital Rome and Napoli within a bit more than an hour.

One more unique specificity of French network is the tunnel between France and Great Britain focusing enormous cargo flow from all Europe and encouraging private and national railway companies to establish and develop really gigantic network in order to access to the main railway linking the continental part – Europe and Great Britain.

Electrification of Trains within the Future Scenarios

The transport industry is responsible for a half of world’s oil demand and for approximately one fourth of world’s CO2 emissions caused as a result of the combustion of fuels. Therefore changes in transport are essential in order to achieve the energy transition all over the world.

Although railway is one of the most energy efficient types of cargo and passenger transportation, during the public discussions it is often neglected. The railway industry transports 8% of world’s passengers and 7% of world’s cargo, and it is only 2% of the total demand of transport energy.

Nowadays cargo transportation by railway is concentrated in China and US – the cargo transportation in each of these countries constitutes about one fourth of the world’s cargo transportation by railway, and in Russia, where it constitutes one fifth. Minerals, coal and agricultural products constitute the largest portion of cargo transportation by railway.

Regions, where the activity of electric trains is the highest, are Europe, Japan and Russia, whereas North America and South America still rely mostly on diesel. The passenger railway transport is almost more electrified in all regions than rail freight. In conformity with the basic scenario, the railway transport in almost all countries and regions becomes completely electrified. An exception is North America, where it is forecasted that cargo transportation will be still implemented using diesel.

Railway transport is still the most efficient and almost the cheapest way to transport passengers and cargos for long distances. And its cost efficiency becomes even more noticeable, when the volume of cargo increases, and it should be transported for a longer distance. Besides, it should be pointed out that the future of the railway will be determined by the fact, how it will react to both the increasing transport demand and to the increasing pressure caused by competing types of transport.

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Today, in this advanced world, we cannot imagine our life without different types of global cargo transportation that ensure us with the food, clothes and everyday things we choose for ourselves. It is related also to the export and import of the cargo type that warms the economy of countries.

Toys, TV sets, clothes, computers, meat, even face masks in this time – things that are better transported in containers. If goods are loaded efficiently, they may be transported in bulks. In a twenty feet long container it is possible to load 300 go-carts or one million pencils.

Crude oil, petrol, black fuel oil, vegetable oil, wine and even disinfectants – these liquid products are often transported in large tankers or by pipelines to the next destination. Many of these products reach the next destination as liquid bulk cargo. People at Brussels airport heat their buildings using black fuel oil or use kerosene from the Antwerp port for planes.

Bulk cargo is related also to grain, coal, iron ore, cement, sugar, salt and sand. These goods are not packed separately, but they are transported in bulk in the load compartment of a ship, a wagon or a truck. For example, lost of yeast is brought to Antwerp to be used for making whisky.

Paper, wood, cocoa bags, steel rolls – these are products that might be transported in a container on pallets, in the boxes or on the racks.

Thus, when planning shipment process, the important consideration is a type of transport. When identifying the type of transport, in addition to costs it is necessary to evaluate also the urgency of shipment, the value of shipped goods, as well as the size and weight of goods. There are different online tools for more optimal calculation of the type of cargo transportation, like there are different online calculators.

Of course, in many places, closed borders make transportation more difficult, or directed by different routes, sometimes even longer ones, which makes the total cost of export more expensive.

Yet Maritime Trade – 90% of the World Trade Amount 

One of the largest cargo operations in the world comprises the use of cargo ships. These cargo ships every day carry millions of tons of cargo, crossing oceans and seas in order to reach the destination. It is also one the most cost-effective transportation methods in case of bulk goods and deliveries in different regions and countries. Yet the volume of maritime trade constitutes around 90% of world trade volume. The transportation of cargos by sea is cheaper shipment of goods; however, certain disadvantage is a longer period of transit.

Cargo transportation by sea is also the best type of transportation in case of large size and heavy cargos, for example, minerals, metals, ore, steel windings etc., which could not possible to transport by air transport. Besides, companies emphasize the impact of shipping on environment. The air transport emits more pollutant gases in comparison to sea transport, which is considered to be “a greener transport” with more carrying capacity.

Our Holding, same as BIMCO (BIMCO is the largest of the international shipping associations representing shipowners), conducts regular market and risk analysis based on the most recent data available. We regularly analyse the latest information related to shipping companies, for example, on the shipping market, contract issues, maritime safety, etc.

Air Freight – the Fastest and the Most Expensive Type of Cargo Transportation 

Air fright is the fastest cargo transportation service. Air transport can deliver goods faster than ships and trains, performing non-stop flights for thousands of miles. Although this might be one of the most expensive possibilities, it enables to save a lot of time and to deliver everything in time. However, the cause of worry may be the limit of the weight of some objects, because the planes carrying cargos may transport only certain amount of materials.

The main air freight advantages are speed, less handling of cargo, less documentation, increased safety level of cargo.

Railway – “for those caring about Nature”

Transportation of cargo by railway is one of the most efficient overland transport types that enables to transport cargos at a long distance and using widespread railway networks. Most of the countries have their own railway network. The trains use less fuel per mile than road transport and a train with more than 100 wagons needs only one engine-driver. In one train it is possible to carry more than in 400 trucks. However, you should take into account the additional cargo transportation costs or handling the cargo at the destination.

It is conventional that railway has considerable safety level. If planned efficiently, the railway is relatively fast type of transport, which, for example, will take to the distant regions like China in only 20 days. Besides, transportation of cargo by railway has also some advantages – all containers are delivered to the same place simultaneously and the transportation is environment-friendly, because a train emits considerably less CO2 than a plane.

Delivery by Road – Only at a Short Distance in Provinces and Cities

Transportation of cargo by road usually is the destination of many deliveries. Although the consumption of time sometimes is considerable, it is the most widespread type of cargo transportation, particularly in provinces and cities.

Cargo transportation by road provides several advantages in comparison to other types of transport, for example, cost-efficiency, fast delivery at a short distance, flexible service, tracking down of cargo and the transport carrying the cargo, complete door-to-door service, and it is one of the most economic types of transportation. However, the transportation by road might be limited by size and weight of vehicle, this type of transportation is also influenced by weather, road quality and traffic, as well as borders closed due to various situations.

Optimal Efficiency with Multimodal solutions

One more possibility is the multimodal solutions – the use of several types of transport, for example, the combination of railway, road transport and sea transport for the transportation of cargo. It enables the client to manage the shipment in a cost effective way from the beginning to the end, ensuring optimal efficiency in every stage of the way.

Transportation of goods has many opportunities, and your transport needs might have more than one solution. Every type of transport has its advantages and disadvantages. When planning shipment and choosing the best type of transport, it is important to identify priorities for your needs, to understand the shipment and to compare costs. Of course, all this applies to situations where there are no global transportation restrictions when it comes to the normal-time cargo transportation market.

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