Many companies that source products internationally and rely on ocean transportation to the U.S. do not have an established strategy for obtaining optimal rates and service. While some organizations have an established international logistics group, others view international shipping more as a task—or as a type of “utility cost”—where ocean transportation is treated simply as a spot-market expense. However, establishing a structured and strategic approach to managing inbound ocean shipments can yield significant benefits in cost control, service performance, and inventory management. In fact, a well-designed ocean transportation strategy provides the framework to shift from reactive to proactive logistics planning. Now, let’s consider some of the key factors. 1. Volume projections The very first agenda item is to forecast shipping volumes. Interestingly, knowing exactly where suppliers’ shipping locations are located is not always apparent to companies. However, it’s necessary to identify origin and destination locations, the total number of twenty-foot equivalent units (TEUs), and any shipment seasonality. This information is vital when sharing projections with carriers to negotiate volume commitments and rates. 2. Contracting vs. spot market strategy Some companies ship exclusively via the spot market, meaning these rates are determined by the supply and demand for sailing slots at a specific time. While this strategy might work for companies that ship a limited number of ocean containers, it’s generally not effective for companies that move higher volumes of shipments and TEUs. Spot ocean container rates can fluctuate significantly. For example, when companies attempted to beat tariff implementations applied to imports, spot container rates skyrocketed. However, once the tariffs were implemented, spot rates dropped drastically. Fixed annual contracts provide more stable rates and are less sensitive to market swings, allowing for more accurate management of an ocean transportation budget. 3. Ocean carrier selection and diversification Ocean carriers manage their own operations, including vessel scheduling, maintenance, and cargo handling. It’s essential to conduct thorough research to establish clear criteria for carrier selection. Key factors to evaluate include cost, transit time, service reliability, geographic coverage, and port accessibility. To mitigate risk and ensure service continuity, companies should avoid over-reliance on a single carrier and instead pursue a diversified carrier strategy. 4. Freight forwarder and NVOCC relationships Freight forwarders act as intermediaries, coordinating multiple aspects of the international shipping process on behalf of the shipper. Their services typically include arranging transportation, preparing documentation, and providing additional support such as customs brokerage. When evaluating freight forwarders, it’s critical to consider more than just cost—factors such as customer service quality, shipment visibility tools, and issue resolution capabilities are equally important. Non-Vessel Operating Common Carriers (NVOCCs) function similarly to ocean carriers, despite not owning or operating their own vessels. They issue their own bills of lading and assume responsibility for managing shipments from origin to destination. As with freight forwarders, selecting the right NVOCC requires evaluating service reliability, global coverage, and their ability to manage logistics across complex trade lanes. 5. Lane and port strategy Once supplier and customer locations have been defined and projected shipment volumes are estimated, it becomes essential to optimize origin and destination ports to balance both cost and service. Developing a port strategy should include primary and alternate ports to account for potential disruptions such as congestion, labor disputes, or seasonal delays. Port decisions must align closely with inventory management and purchasing strategies. For instance, a shipment originating in Asia may be routed through West Coast ports, followed by inland transportation via rail or drayage to the final destination. Alternatively, the same shipment could be routed through East Coast ports. While this typically involves longer transit times, it may offer cost or service advantages depending on market conditions and the location of the final delivery point. Route selection should consider transit time, rate variability, and network efficiency to ensure optimal supply chain performance. 6. Performance metrics and KPIs As previously noted, a freight forwarder that provides visibility into shipments is important. Companies should use the technology available to develop meaningful key performance indicators (KPIs). Monitoring shipment service levels and carrier performance is vital to holding partners accountable. Common KPIs include on-time delivery, dwell time, container utilization, cost per unit, and container detention and demurrage charges. 7. Risk management and contingency planning Proactive risk management is essential to maintaining a resilient supply chain. Disruptions such as labor strikes, severe weather, geopolitical instability, or unexpected market shifts can significantly impact ocean transportation. To mitigate these risks, organizations should develop comprehensive contingency plans that include alternative ports of entry, backup carriers, and flexible routing options. In some cases, it may be necessary to expedite shipments or delay them strategically to ensure alignment with inventory and purchasing strategies. A well-prepared contingency plan should account for a wide range of potential disruptions—including geopolitical events, pandemics, carrier alliance shifts, and port closures. Having predefined protocols in place allows for faster decision-making and minimizes the impact of unforeseen events on cost, service, and overall supply chain performance Developing and implementing a structured ocean freight strategy enables organizations to transition from a reactive approach to a proactive, strategic model for managing international logistics. This shift enhances financial control, improves service reliability, and strengthens resilience against disruptions. In today’s increasingly complex and dynamic global trade environment, a well-executed ocean transportation strategy is essential for achieving long-term supply chain efficiency and customer satisfaction. Tom Schaefges is a senior project manager with St. Onge Company and has more than 25 years of experience in supply chain and logistics across both corporate and consulting roles. His industry experience includes work in food service, retail, heavy manufacturing, transportation, food production, and third-party logistics. He can be reached at [email protected]

USTR expands investigation to dozens more economies

The Office of the United States Trade Representative (USTR) announced it has added 60 additional countries to its ongoing Section 301 investigations under the Trade Act of 1974. The move follows an earlier round of probes launched this week and extends the review into a much broader set of trading partners.

Markets included in the initial probe

The first tranche of investigations focused on a number of major manufacturing and trading jurisdictions. That initial list included:

• China
• European Union
• Singapore
• Switzerland
• Norway
• Indonesia
• Malaysia
• Cambodia
• Thailand
• South Korea
• Vietnam
• Taiwan
• Bangladesh
• Mexico
• Japan
• India

Reason for the expanded inquiries

USTR said the broader review aims to determine whether each country’s actions, policies or practices — particularly failures to impose and enforce bans on imports made with forced labor — are unreasonable or discriminatory and whether they burden or restrict U.S. commerce.

USTR’s message on forced labor and competitive fairness

USTR Ambassador Jamieson Greer framed the investigations as an effort to confront unfair competitive advantages tied to forced labor. He said:

“Despite the international consensus against forced labor, governments have failed to impose and effectively enforce measures banning goods produced with forced labor from entering their markets. For too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labor. These investigations will determine whether foreign governments have taken sufficient steps to prohibit the importation of goods produced with forced labor and how the failure to eradicate these abhorrent practices impacts U.S. workers and businesses.”

Legal and tariff context surrounding the probes

Last month the U.S. Supreme Court ruled against the legality of the Trump administration’s use of tariffs under the International Emergency Economic Powers Act (IEEPA). In response, the White House adopted a 10% tariff under Section 122 for a 150-day period, a measure set to expire in late July. The administration cited reasons including a serious international payments imbalance, a widening U.S. balance-of-payments deficit, a push to increase domestic manufacturing, and efforts to curb fentanyl flows across the northern and southern borders.

Industry views on legal challenges and enforcement

Pete Mento, Director of Global Trade Management Services at Baker Tilly, told LM that Section 301 tariffs—aimed at addressing unfair trade practices—are particularly difficult for companies to overturn in court and that the full force of these tariffs has not yet been seen by industry stakeholders.

Mento noted the data gathered in Section 301 probes can strengthen the government’s case on issues such as forced labor, unfair trade practices, currency manipulation and intellectual property concerns. In a LinkedIn post he added that if the USTR finds a country’s industrial policies unreasonable or distortive, the United States could respond with tariffs.

1. Investigation
2. Public comments
3. Hearings
4. Findings
5. Imposition of new duties (tariffs)

Procedural timeline and opportunities for comment

The USTR has scheduled a public hearing on these investigations for April 28. Written comments are due by April 15, providing stakeholders an opportunity to submit views before the hearing.

Analysts’ take on broader economic impacts

Chris Rogers, Head of Supply Chain Research at S&P Global Market Intelligence, wrote that the overall economic effects of recent trade policy moves may be limited. He argued that duty rates tied to IEEPA are likely to be replaced by other programs with similar effective rates, and that the global economy has so far shown resilience to tariffs. Rogers also pointed out that larger near-term risks include uncertainty from conflict in the Middle East and attendant effects on oil prices.

Overview of February results for the two Southern California ports

The Port of Los Angeles and the Port of Long Beach each released February cargo data showing mostly positive movement in container volumes, with differences in monthly and year-to-date trends across import, export and empty container categories.

Port of Los Angeles February totals and historical context

The Port of Los Angeles recorded total February volume of 824,323 TEU (Twenty‑Foot Equivalent Units), a 3% increase from the same month a year earlier and 11% above the port’s five‑year February average. That total represents the second‑largest February throughput in the port’s history, exceeded only by the pandemic‑era surge in February 2022.

Port of Los Angeles cargo mix and year‑to‑date figure

POLA’s February breakdown and year‑to‑date figure were reported as follows:

• Imports: 433,812 TEU, up 5% year‑over‑year
• Exports: 116,633 TEU, up 7% year‑over‑year
• Empty containers: 273,878 TEU, down 2% year‑over‑year
• Through the first two months of 2026, total POLA volume: 1,636,324 TEU, reported as up 5% year‑to‑date

POLA executive commentary on flows and seasonal effects

POLA Executive Director Gene Seroka attributed part of February’s import strength to the annual pull‑forward before the Lunar New Year factory shutdowns in Asia, when importers bring in extra cargo. He described the export figure as an improvement from recent lows, while noting substantial work remains to rebuild U.S. agricultural and manufacturing exports.

Seroka also said February’s level of empty boxes matches current demand patterns as carriers reposition equipment back to Asia during the traditional slack season. On a recent POLA media call he summarized the opening two months of the year by saying the port had handled about 1.6 million TEU and described cargo movement as steady.

He further characterized that performance in two ways: while the port is slightly ahead of its five‑year average, he said the start of this year was 5% lower than last year’s elevated beginning, which was driven by pre‑tariff shipments. Looking ahead, he said he expects a March dip in volumes followed by a stronger April as retailers begin replenishment and spring/summer fashion shipments return to the docks. Seroka also noted that despite trade policy shifts and events in the Middle East, the first two months have been relatively predictable and the port is positioned with efficient operations, ample capacity and a capable workforce.

Port of Long Beach February totals and year‑to‑date update

The Port of Long Beach reported total February volume of 767,525 TEU, a 0.3% increase over February of the prior year. On a year‑to‑date basis through February, POLB’s total volume was 1,615,290 TEU, a 6% decrease compared with the same period last year.

Port of Long Beach cargo composition for February

POLB’s February category results were detailed as follows:

• Imports: 368,060 TEU, down 0.2% year‑over‑year
• Exports: 97,422 TEU, up 8.2% year‑over‑year
• Empty containers: 302,044 TEU, down 0.15% year‑over‑year

POLB leadership perspective on operations amid uncertainty

Port of Long Beach CEO Dr. Noel Hacegaba said cargo volumes remained positive in February despite growing uncertainty tied to the conflict in the Middle East. He told reporters that shipments continue to move smoothly, planned sailings remain on schedule, and the port has acted as a reliable harbor amid trade and geopolitical uncertainty.

Hacegaba added that the conflict has injected additional uncertainty into global trade and has prompted broad market reactions across the supply chain, but emphasized that cargo movement at Long Beach remains fluid.