<div class="phx-topic abstract-wrapper">Qatar Airways will launch a new freighter service between Milan and Chicago in July, doubling the Middle Eastern carrier’s cargo capacity out of the U.S.</div>

Qatar Airways will launch a new freighter service between Milan and Chicago in July, doubling the Middle Eastern carrier’s cargo capacity out of the U.S.

<div>Qatar Airways will launch a new freighter service between Milan and Chicago in July, doubling the Middle Eastern carrier’s cargo capacity out of the U.S.The twice-weekly service, operated by Boeing 777 freighters, will start on July 3.The new service will add about 200 tons of additional weekly capacity to the carrier’s current uplift from Chicago.“Along with our recently introduced thrice-weekly passenger service between our Doha hub and Chicago which will step up to daily flights from June 15, these new dedicated freighter services will solidify Qatar Airways’ position in the United States as a leader in freighter and passenger services,”...

Qatar Airways will launch a new freighter service between Milan and Chicago in July, doubling the Middle Eastern carrier’s cargo capacity out of the U.S. The twice-weekly service, operated by Boeing 777 freighters, will start on July 3. The new service will add about 200 tons of additional weekly capacity to the carrier’s current uplift from Chicago. “Along with our recently introduced thrice-weekly passenger service between our Doha hub and Chicago which will step up to daily flights from June 15, these new dedicated freighter services will solidify Qatar Airways’ position in the United States as a leader in freighter and passenger services,” said Qatar Airways’ CEO Akbar Al Baker. The Milan-Chicago route is one of the world’s busiest freighter routes, with more than 16,500 tons of cargo shipped annually, the airline said.

Air Cargo Carriers News

Qatar Airways to Start Milan-Chicago Freighter Service

<div class="phx-topic abstract-wrapper">Last month’s deal between the agency running Canada’s largest container port and the terminal operator tenant ends a years-long legal battle over development of the Robert Banks Terminal 2 and GCT’s separate plan to build a fourth berth at its Deltaport facility. </div>

Last month’s deal between the agency running Canada’s largest container port and the terminal operator tenant ends a years-long legal battle over development of the Robert Banks Terminal 2 and GCT’s separate plan to build a fourth berth at its Deltaport facility.

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<div class="phx-topic">The recent decision by Global Container Terminals and the Vancouver Fraser Port Authority to jointly study development of the port’s proposed mega-terminal squashes the duo’s long-running dispute, positions GCT to run the terminal, and inches the long-planned facility closer to realization. The <a href="https://www.joc.com/article/gct-vancouver-port-to-jointly-study-roberts-bank-terminal-project-6207642">truce between the agency running Canada’s largest container port and the terminal operator tenant</a> ends a years-long <a href="https://www.joc.com/article/vancouver-capacity-needs-spark-conflict-among-port-tenant-5223507">legal battle tied</a> to the port trying to develop the Robert Banks Terminal 2 and GCT’s separate plan to build a fourth berth at its Deltaport facility. The RB2 project is expected to cost more than C$3 billion ($2.17 billion). <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6227603_0.1.jpg"></img></div>The memorandum of understanding announced in April gives the two sides a year to determine how GCT could offer unique efficiencies by operating the planned RBT2 terminal given that its existing Deltaport would share a causeway with the new project. The port authority tentatively gains a terminal operator in GCT in exchange for the latter scrapping its plan to build another berth. Canadian Prime Minister Mark Carney’s Major Project Office is involved in driving the deal between the port authority and tenant. In the fall of 2024, Peter Xotta, CEO of the Vancouver Fraser Port Authority, told local media the port authority would allow GCT to take part in the selection process for an operator of RBT2. Under previous leadership, the port authority had argued a third-party operator was needed to keep the terminal competitive, ruling out GCT, which also operates the downtown Vanterm terminal. “Given the reality of where we're at geopolitically and the risk associated with a project of this order of magnitude, it seemed prudent to me and to our board that we didn't want to exclude anybody from bringing solutions forward that would help Canada,” Xotta told the Journal of Commerce last week. “It’s up to (GCT) to put their best foot forward to the landlord about the merits of them as the operator.” The sharing of administrative and maintenance facilities with GCT are some of the possible ways to mitigate the rising price tag of the RBT2 terminal, Xotta said. Potentially, both terminals could share a truck gate and the existing rail terminal at Deltaport. Separately, the port authority has shortlisted three consortia interested in building the landmass that would support the terminal. Vancouver sought terminal operators to build and operate RBT2 in 2002 and again in 2008 amid the global financial crisis, but there were no willing takers. On why another request for proposals wasn’t floated again, Xotta said terminal operator selection is “always bespoke,” but would be consistent with Canadian law and would be done in partnership with the federal government’s Office of Major Projects. “The port bellied up to the bar twice on this and without being able to get it across the line,” he said. “I’m determined this won’t happen a third time.” The shift in approach to seeking a partnership with an existing tenant rather than opening the project to bid again raised questions whether Canadian shippers would get the most competitive terminal, according to a source close to the RBT2 development. Roberts Bank 2 would provide an additional 2.4 million TEUs of capacity to Vancouver, which, by some estimates, would near its existing full capacity by the 2030s. The port now has nominal capacity of 5 million TEUs. The current timeline, which has been delayed by lengthy environmental reviews, is for the new terminal to open in the early 2030s. The project received environmental approval in 2023. <h3>Next steps </h3>Xotta, who is cautiously optimistic that the agreement will end with GCT as operator of RBT2, said future milestones for the proposed terminal would be receiving funding from Canada’s Infrastructure Bank and getting regulatory approvals fast-tracked by being added to the country’s major projects list. Meanwhile, on Canada’s eastern coast, the Port of Montreal’s <a href="https://www.joc.com/article/canada-looks-for-new-container-gateways-for-decoupling-from-us-6122714">own stalled mega-terminal project</a>, known as Contrecoeur, got a recent jolt back to life thanks to a C$1.16 million loan from the Infrastructure Bank, while Carney tapped it as one of five national infrastructure projects being fast-tracked. DP World and the port authority are developing the C$1.6 million terminal which would have an annual throughput of 1.15 million TEUs. In a May 20 interview at the Greater Vancouver Board of Trade, the prime minister said there is similar urgency to add port capacity in Western Canada. “We’re going to run out of capacity at the Port of Vancouver over the next, well, decade in effect,” he said. “We would likely run out of capacity sooner than that, because we would like to be growing our exports faster than that which means we act now” in terms of building more port capacity for container and bulk exports. Carney aims to double Canada’s non-US exports in a decade to diversify away from US trade. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

The recent decision by Global Container Terminals and the Vancouver Fraser Port Authority to jointly study development of the port’s proposed mega-terminal squashes the duo’s long-running dispute, positions GCT to run the terminal, and inches the long-planned facility closer to realization. The truce between the agency running Canada’s largest container port and the terminal operator tenant ends a years-long legal battle tied to the port trying to develop the Robert Banks Terminal 2 and GCT’s separate plan to build a fourth berth at its Deltaport facility. The RB2 project is expected to cost more than C$3 billion ($2.17 billion). The memorandum of understanding announced in April gives the two sides a year to determine how GCT could offer unique efficiencies by operating the planned RBT2 terminal given that its existing Deltaport would share a causeway with the new project. The port authority tentatively gains a terminal operator in GCT in exchange for the latter scrapping its plan to build another berth. Canadian Prime Minister Mark Carney’s Major Project Office is involved in driving the deal between the port authority and tenant. In the fall of 2024, Peter Xotta, CEO of the Vancouver Fraser Port Authority, told local media the port authority would allow GCT to take part in the selection process for an operator of RBT2. Under previous leadership, the port authority had argued a third-party operator was needed to keep the terminal competitive, ruling out GCT, which also operates the downtown Vanterm terminal. “Given the reality of where we're at geopolitically and the risk associated with a project of this order of magnitude, it seemed prudent to me and to our board that we didn't want to exclude anybody from bringing solutions forward that would help Canada,” Xotta told the Journal of Commerce last week. “It’s up to (GCT) to put their best foot forward to the landlord about the merits of them as the operator.” The sharing of administrative and maintenance facilities with GCT are some of the possible ways to mitigate the rising price tag of the RBT2 terminal, Xotta said. Potentially, both terminals could share a truck gate and the existing rail terminal at Deltaport. Separately, the port authority has shortlisted three consortia interested in building the landmass that would support the terminal. Vancouver sought terminal operators to build and operate RBT2 in 2002 and again in 2008 amid the global financial crisis, but there were no willing takers. On why another request for proposals wasn’t floated again, Xotta said terminal operator selection is “always bespoke,” but would be consistent with Canadian law and would be done in partnership with the federal government’s Office of Major Projects. “The port bellied up to the bar twice on this and without being able to get it across the line,” he said. “I’m determined this won’t happen a third time.” The shift in approach to seeking a partnership with an existing tenant rather than opening the project to bid again raised questions whether Canadian shippers would get the most competitive terminal, according to a source close to the RBT2 development. Roberts Bank 2 would provide an additional 2.4 million TEUs of capacity to Vancouver, which, by some estimates, would near its existing full capacity by the 2030s. The port now has nominal capacity of 5 million TEUs. The current timeline, which has been delayed by lengthy environmental reviews, is for the new terminal to open in the early 2030s. The project received environmental approval in 2023. Next steps Xotta, who is cautiously optimistic that the agreement will end with GCT as operator of RBT2, said future milestones for the proposed terminal would be receiving funding from Canada’s Infrastructure Bank and getting regulatory approvals fast-tracked by being added to the country’s major projects list. Meanwhile, on Canada’s eastern coast, the Port of Montreal’s own stalled mega-terminal project , known as Contrecoeur, got a recent jolt back to life thanks to a C$1.16 million loan from the Infrastructure Bank, while Carney tapped it as one of five national infrastructure projects being fast-tracked. DP World and the port authority are developing the C$1.6 million terminal which would have an annual throughput of 1.15 million TEUs. In a May 20 interview at the Greater Vancouver Board of Trade, the prime minister said there is similar urgency to add port capacity in Western Canada. “We’re going to run out of capacity at the Port of Vancouver over the next, well, decade in effect,” he said. “We would likely run out of capacity sooner than that, because we would like to be growing our exports faster than that which means we act now” in terms of building more port capacity for container and bulk exports. Carney aims to double Canada’s non-US exports in a decade to diversify away from US trade. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Port News

North American ports

Maritime

Vancouver truce opens door for GCT as mega-terminal operator

<div class="phx-topic abstract-wrapper">Strong regional cargo demand, buoyant market sentiment and higher bunker costs signal continued upward movement on intra-Asia rates, executives and analysts warn.</div>

Strong regional cargo demand, buoyant market sentiment and higher bunker costs signal continued upward movement on intra-Asia rates, executives and analysts warn.

<div class="phx-topic">The unseasonally high container spot rates on intra-Asia trades — up double-digit year over year — show no signs of slowing, thanks to strong regional cargo demand, buoyant market sentiment and higher bunker costs, according to freight executives and analysts. The upbeat conditions have led some carriers including Orient Overseas Container Line to push general rate increases (GRI) although others have so far left June rates unchanged. “The overall rate development is quite dynamic,” a FIBS Logistics spokesperson told the Journal of Commerce. OOCL has implemented a GRI of between $25 and $100 per TEU depending on the trade, said the spokesperson, adding that Maersk, Ocean Network Express and Hapag-Lloyd are maintaining the same rate for June. “We see increases in both rates and volumes in the intra-Asia market,” the head of an Asia-headquartered container line told the Journal of Commerce, adding that “It’s not very common at this time of the year so we hope it lasts as long as possible.” Wider trade dislocations caused by the Middle East war which have tightened capacity, put upward pressure on rates on long-haul East-West trades, said Peter Sand, chief analyst at benchmarking platform Xeneta. The container spot rates from Shanghai to Singapore have soared 56% since Feb. 28, the start of the Iran war, Sand noted, while rates from Shanghai to Vietnam have risen 40% and Shanghai-Bangkok, 15%. They now stand at $1,489 per FEU from Shanghai to Singapore, the highest since Jan. 14, 2025, $1,648 per FEU for Shanghai to Bangkok and $1,287 per FEU from Shanghai to Vietnam, which are both the highest since Dec. 31, 2025.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="435f0ad1-f797-4f48-8a29-74f1f3c33961"></dynamic-object></div>Shanghai Shipping Exchange rate data reflected the Xeneta statistics, with SSE also reporting rates from Shanghai to Japan at around $333 per TEU, the highest since early August 2023, according to its data carried on the Journal of Commerce’s Gateway platform. Drewry said its intra-Asia container index, a weighted average of weekly spot rates on 18 regional trades, reached a record $959 per FEU on May 22, the highest since it was launched on Oct. 31, 2025, partly due to higher longer haul Shanghai-Dubai rates. <h3>Peak season comes early </h3>Other executives said the healthy increases in cargo volumes are due to generally upbeat consumer demand in Asia with growth rates this year varying between 3% in China, 4% in Singapore and Malaysia and 10% in Vietnam, plus a likely early peak season in Europe and North America. This is driving shipments of semi-manufactured goods and components within Asia, especially between China and Southeast Asia, the Asia container line head said. UPS estimated that up to 80% of intra-Asia container volumes comprise raw materials, goods, parts, and semi-manufactured products transported between multiple Asian countries for processing and assembly before final export. “The uncertainty and prospect of further cost increases and perhaps operational disruptions is causing Western BCO’s to call forward their Christmas goods earlier, which, as a knock-on, is lifting the volumes of raw and intermediate materials on the intra-Asian trades sooner than usual,” Stijn Rubens, senior consultant, Drewry Supply Chain Advisors, told the Journal of Commerce. “Manufacturing shifts and stronger regional trade ties are what’s boosting intra-Asia trade and container flows,” the FIBS Logistics spokesperson said. Highlighting the growth in volumes, Hong Kong-listed intra-Asia carrier SITC said first quarter liftings climbed 8% to 855,795 TEU, Cosco Shipping Holdings saw a 6% rise in intra-Asia volumes to 2.3 million TEU, while Hong Kong’s TS Lines recorded a 3% increase to 396,935 TEU. Executives said higher fuel prices have also likely contributed to the increase in freight rates, which are paid by shippers to carriers through bunker adjustment factor surcharges. The cost of high-sulfur fuel in Singapore has risen 15% from an average of $579 per metric ton this year to $665 per mt on May 22, while the price of low sulfur diesel has increased 22% from an average of $684 per mt this year to $834 per mt on May 22. ”Fuel surcharges hit shippers unevenly. As some are capable of pushing back, while others don’t or can’t. Fuel surcharges don’t hit all trades in the same way,” Xeneta’s Sand said. He also thought port congestion may being playing a mild role in supporting intra-Asia freight rates by reducing available capacity. Sand said Singapore especially has “been challenged — not to the point of consistent peak trouble, but it continues to be under pressure as the world’s more important transshipment hub”. Carriers have highlighted congestion in Singapore, Shanghai and Osaka, Nagoya and Tokyo in Japan as reasons for vessel delays deployed in intra-Asia services. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

The unseasonally high container spot rates on intra-Asia trades — up double-digit year over year — show no signs of slowing, thanks to strong regional cargo demand, buoyant market sentiment and higher bunker costs, according to freight executives and analysts. The upbeat conditions have led some carriers including Orient Overseas Container Line to push general rate increases (GRI) although others have so far left June rates unchanged. “The overall rate development is quite dynamic,” a FIBS Logistics spokesperson told the Journal of Commerce. OOCL has implemented a GRI of between $25 and $100 per TEU depending on the trade, said the spokesperson, adding that Maersk, Ocean Network Express and Hapag-Lloyd are maintaining the same rate for June. “We see increases in both rates and volumes in the intra-Asia market,” the head of an Asia-headquartered container line told the Journal of Commerce, adding that “It’s not very common at this time of the year so we hope it lasts as long as possible.” Wider trade dislocations caused by the Middle East war which have tightened capacity, put upward pressure on rates on long-haul East-West trades, said Peter Sand, chief analyst at benchmarking platform Xeneta. The container spot rates from Shanghai to Singapore have soared 56% since Feb. 28, the start of the Iran war, Sand noted, while rates from Shanghai to Vietnam have risen 40% and Shanghai-Bangkok, 15%. They now stand at $1,489 per FEU from Shanghai to Singapore, the highest since Jan. 14, 2025, $1,648 per FEU for Shanghai to Bangkok and $1,287 per FEU from Shanghai to Vietnam, which are both the highest since Dec. 31, 2025. Shanghai Shipping Exchange rate data reflected the Xeneta statistics, with SSE also reporting rates from Shanghai to Japan at around $333 per TEU, the highest since early August 2023, according to its data carried on the Journal of Commerce’s Gateway platform. Drewry said its intra-Asia container index, a weighted average of weekly spot rates on 18 regional trades, reached a record $959 per FEU on May 22, the highest since it was launched on Oct. 31, 2025, partly due to higher longer haul Shanghai-Dubai rates. Peak season comes early Other executives said the healthy increases in cargo volumes are due to generally upbeat consumer demand in Asia with growth rates this year varying between 3% in China, 4% in Singapore and Malaysia and 10% in Vietnam, plus a likely early peak season in Europe and North America. This is driving shipments of semi-manufactured goods and components within Asia, especially between China and Southeast Asia, the Asia container line head said. UPS estimated that up to 80% of intra-Asia container volumes comprise raw materials, goods, parts, and semi-manufactured products transported between multiple Asian countries for processing and assembly before final export. “The uncertainty and prospect of further cost increases and perhaps operational disruptions is causing Western BCO’s to call forward their Christmas goods earlier, which, as a knock-on, is lifting the volumes of raw and intermediate materials on the intra-Asian trades sooner than usual,” Stijn Rubens, senior consultant, Drewry Supply Chain Advisors, told the Journal of Commerce. “Manufacturing shifts and stronger regional trade ties are what’s boosting intra-Asia trade and container flows,” the FIBS Logistics spokesperson said. Highlighting the growth in volumes, Hong Kong-listed intra-Asia carrier SITC said first quarter liftings climbed 8% to 855,795 TEU, Cosco Shipping Holdings saw a 6% rise in intra-Asia volumes to 2.3 million TEU, while Hong Kong’s TS Lines recorded a 3% increase to 396,935 TEU. Executives said higher fuel prices have also likely contributed to the increase in freight rates, which are paid by shippers to carriers through bunker adjustment factor surcharges. The cost of high-sulfur fuel in Singapore has risen 15% from an average of $579 per metric ton this year to $665 per mt on May 22, while the price of low sulfur diesel has increased 22% from an average of $684 per mt this year to $834 per mt on May 22. ”Fuel surcharges hit shippers unevenly. As some are capable of pushing back, while others don’t or can’t. Fuel surcharges don’t hit all trades in the same way,” Xeneta’s Sand said. He also thought port congestion may being playing a mild role in supporting intra-Asia freight rates by reducing available capacity. Sand said Singapore especially has “been challenged — not to the point of consistent peak trouble, but it continues to be under pressure as the world’s more important transshipment hub”. Carriers have highlighted congestion in Singapore, Shanghai and Osaka, Nagoya and Tokyo in Japan as reasons for vessel delays deployed in intra-Asia services. Contact Keith Wallis at keithwallis@hotmail.com .

Container lines

Container Shipping News

Double-digit rate increases whip up intra-Asia trades

<div class="phx-topic abstract-wrapper">Caterpillar and Deere are key global manufacturers of high-and-heavy cargo and considered bellwether companies for the ro/ro breakbulk shipping segment.</div>

Caterpillar and Deere are key global manufacturers of high-and-heavy cargo and considered bellwether companies for the ro/ro breakbulk shipping segment.

<div class="phx-topic">Demand for equipment to support the buildout of data centers is driving production for high-and-heavy equipment makers Caterpillar and Deere, helping offset tariff costs and — for Deere — declines stemming from geopolitical uncertainty. Caterpillar and Deere are key global manufacturers of high-and-heavy cargo and considered bellwether companies for the roll-on/roll-off (ro/ro) breakbulk shipping segment. Both US-based companies import some materials and parts, even though much of their equipment comes from domestic production and sourcing. Farming industry pressures are taking a toll on agriculture equipment sales for Illinois-based Deere &amp; Company, but data centers, oil and gas expansions, and infrastructure projects are pushing up orders for heavy construction equipment. Deere is projecting a 15% to 20% decline for farming equipment sales in the US and Canada, driven by higher manufacturing expenses and ongoing global market uncertainty, including the war in Iran and surging farming expenses stemming from the conflict, according to the company’s latest quarterly earnings report. Year-over-year sales for large agricultural equipment fell 14% to $4.5 billion in its fiscal second quarter ending May 3. “Our baseline view remains that 2026 will represent the bottom of the ag cycle,” Brent Norwood, Deere’s senior vice president and CFO, said during the company’s May 21 earnings call. Deere saw some cost relief in the fiscal second quarter in the form of a $272 million refund on US import tariffs following the Supreme Court’s ruling in February invalidating billions of dollars in tariffs. Factoring in the refund and the ruling, Deere’s tariff cost projections for 2026 remain unchanged at $1.2 billion, although the refund brings those costs down to about $900 million. As part of its long-term plan to get a handle on production expenses, Deere is pouring $20 billion into US manufacturing facilities over the next 10 years. This quarter, the company started building Deere-designed excavators in North Carolina, following a $70 million investment to bring US-designed and -manufactured excavators to the market. Approximately 80% of Deere’s US equipment is produced at domestic manufacturing facilities, and about 75% of those components are sourced from US suppliers. Construction, meanwhile, is propping up Deere, with the company projecting an increase of approximately 5% for equipment sales in the sector. Year-over-year construction equipment sales rose 29% to $3.8 billion in its second quarter. Deere is riding the wave of a surge in construction projects, supported by the data center boom, expansions in the oil and gas sector, federal infrastructure investment, road projects, and warehouse construction. “Reflecting that strength, we’ve increased our year-over-year net sales guide to up about 20%,” Norwood said. In the US and Canada, Deere’s construction equipment orders have risen by over 60% since November, reaching their highest level since April 2024; over 80% of production slots are filled for the year, Norwood said. Data center construction is expected to top $100 billion in 2026, with additional double-digit growth into 2027, Norwood said. “This is great for our customers in both large-scale site prep, but also water and utility contractors who also support these projects,” he said. <h3>Order backlog surges for CAT </h3>The rise of generative AI and cloud computing is generating growth for heavy equipment maker Caterpillar, as the Illinois-based company is seeing greater demand for its equipment to support data center construction. Along with construction and mining equipment, Caterpillar manufactures engines and turbines needed to provide backup power to data centers, as well as the electrical infrastructure that supports these facilities. “Our largest customers and the broader data center industry have significantly increased their expectations for capital spending. That has translated to accelerated order rates for us,” Alex Kapper, Caterpillar’s vice president for investor relations, said during the company’s first-quarter earnings call April 30. Kapper said customers are committing to longer-term orders, including some well into 2028. In part because of that demand, Caterpillar is projecting low double-digit sales growth for 2026, according to the company’s first-quarter earnings report. Deere also lowered its tariff cost estimate for the year to $2.2 billion from $2.4 billion, down from the company’s previous estimate of $2.6 billion. With growth across its primary business segments, Caterpillar’s order backlog surged to $63 billion in the first quarter, up 79% year over year. Construction equipment sales saw the sharpest increase in the quarter, up 38% to $7.2 billion year over year, while power and energy sales rose 22% to $7 billion. Caterpillar’s resource industries business, which includes mining equipment, grew 4% to $3.8 billion in the first quarter. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

Demand for equipment to support the buildout of data centers is driving production for high-and-heavy equipment makers Caterpillar and Deere, helping offset tariff costs and — for Deere — declines stemming from geopolitical uncertainty. Caterpillar and Deere are key global manufacturers of high-and-heavy cargo and considered bellwether companies for the roll-on/roll-off (ro/ro) breakbulk shipping segment. Both US-based companies import some materials and parts, even though much of their equipment comes from domestic production and sourcing. Farming industry pressures are taking a toll on agriculture equipment sales for Illinois-based Deere & Company, but data centers, oil and gas expansions, and infrastructure projects are pushing up orders for heavy construction equipment. Deere is projecting a 15% to 20% decline for farming equipment sales in the US and Canada, driven by higher manufacturing expenses and ongoing global market uncertainty, including the war in Iran and surging farming expenses stemming from the conflict, according to the company’s latest quarterly earnings report. Year-over-year sales for large agricultural equipment fell 14% to $4.5 billion in its fiscal second quarter ending May 3. “Our baseline view remains that 2026 will represent the bottom of the ag cycle,” Brent Norwood, Deere’s senior vice president and CFO, said during the company’s May 21 earnings call. Deere saw some cost relief in the fiscal second quarter in the form of a $272 million refund on US import tariffs following the Supreme Court’s ruling in February invalidating billions of dollars in tariffs. Factoring in the refund and the ruling, Deere’s tariff cost projections for 2026 remain unchanged at $1.2 billion, although the refund brings those costs down to about $900 million. As part of its long-term plan to get a handle on production expenses, Deere is pouring $20 billion into US manufacturing facilities over the next 10 years. This quarter, the company started building Deere-designed excavators in North Carolina, following a $70 million investment to bring US-designed and -manufactured excavators to the market. Approximately 80% of Deere’s US equipment is produced at domestic manufacturing facilities, and about 75% of those components are sourced from US suppliers. Construction, meanwhile, is propping up Deere, with the company projecting an increase of approximately 5% for equipment sales in the sector. Year-over-year construction equipment sales rose 29% to $3.8 billion in its second quarter. Deere is riding the wave of a surge in construction projects, supported by the data center boom, expansions in the oil and gas sector, federal infrastructure investment, road projects, and warehouse construction. “Reflecting that strength, we’ve increased our year-over-year net sales guide to up about 20%,” Norwood said. In the US and Canada, Deere’s construction equipment orders have risen by over 60% since November, reaching their highest level since April 2024; over 80% of production slots are filled for the year, Norwood said. Data center construction is expected to top $100 billion in 2026, with additional double-digit growth into 2027, Norwood said. “This is great for our customers in both large-scale site prep, but also water and utility contractors who also support these projects,” he said. Order backlog surges for CAT The rise of generative AI and cloud computing is generating growth for heavy equipment maker Caterpillar, as the Illinois-based company is seeing greater demand for its equipment to support data center construction. Along with construction and mining equipment, Caterpillar manufactures engines and turbines needed to provide backup power to data centers, as well as the electrical infrastructure that supports these facilities. “Our largest customers and the broader data center industry have significantly increased their expectations for capital spending. That has translated to accelerated order rates for us,” Alex Kapper, Caterpillar’s vice president for investor relations, said during the company’s first-quarter earnings call April 30. Kapper said customers are committing to longer-term orders, including some well into 2028. In part because of that demand, Caterpillar is projecting low double-digit sales growth for 2026, according to the company’s first-quarter earnings report. Deere also lowered its tariff cost estimate for the year to $2.2 billion from $2.4 billion, down from the company’s previous estimate of $2.6 billion. With growth across its primary business segments, Caterpillar’s order backlog surged to $63 billion in the first quarter, up 79% year over year. Construction equipment sales saw the sharpest increase in the quarter, up 38% to $7.2 billion year over year, while power and energy sales rose 22% to $7 billion. Caterpillar’s resource industries business, which includes mining equipment, grew 4% to $3.8 billion in the first quarter. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Ro/ro cargo

Breakbulk News

High-and-heavy equipment makers tap into data centers for growth

<div class="phx-topic abstract-wrapper">Spot rates on the corridor hit their highest level of the year in the first half of May, but there are mixed views on whether demand will continue into the summer. </div>

Spot rates on the corridor hit their highest level of the year in the first half of May, but there are mixed views on whether demand will continue into the summer.

<div class="phx-topic">A demand recovery on the trans-Atlantic westbound trade that followed a lackluster first quarter has begun to slow, with the sharply higher rates flattening over the past two weeks. But the supply-demand picture is confusing. From a capacity perspective, expectations of a weakening market were not reflected in June’s vessel deployment plans by ocean carriers. Data from Xeneta’s eeSea shows planned capacity on the North Europe-US East Coast westbound trade in June will be 327,860 TEUs, up 10,000 TEUs from May. Yet US imports in April, the latest available data from PIERS, a sister company of the Journal of Commerce within S&amp;P Global, show volume declining 11% year over year at 185,960 TEUs following a 2.8% drop in March. Spot rates on the corridor reached their highest level of the year in the first half of May, but there has been little upward movement since then, according to most rate indexes. North Europe to USEC spot rates have been stuck at $2,100 per FEU since the first week of May, although that rate is up 60% from late March, according to Platts, a sister company of the Journal of Commerce. Drewry’s World Container Index this week was at $2,453/FEU for the trade lane, up 65% compared with the last week of March. There are mixed industry views on what to expect from US import demand in June, although Hapag-Lloyd holds a positive view of the market heading into summer. “The projection for June is pretty good ... it’s coming from all different industries, excluding forestry,” a spokesperson for the carrier told the Journal of Commerce Wednesday. “Since May last year rates have been going down and a recovery was urgently needed,” the spokesperson added. “We saw a good March and a good April with strong volume growth, and the second half of May was a bit softer.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a18ac559-edc2-4292-b7d8-5dca37d16335"></dynamic-object></div>Philip Damas, managing director and head of Drewry Supply Chain Advisors, said the latest data reflected a moderating market. “We are not aware of strong demand flows on this route now; June is not typically a strong month for trans-Atlantic traffic,” Damas said. “We forecast a reduction in spot rates from Northern Europe to the US East Coast in June, ending the latest upswing period for spot rates.” <h3>Westbound vessels ‘getting lighter’ </h3>Peter Sand, chief analyst at rate benchmarking platform Xeneta, also highlighted a weakening trans-Atlantic market. “The carriers pulled capacity in January and convinced shippers that the market was tight,” he said. “[Capacity] is mostly back now and weak demand means there is no tight market on the trans-Atlantic.” An ocean freight executive at a global forwarder agreed that the market was softening after a strong couple of months. “We already see that vessels are getting lighter again and expect a calm summer,” the source told the Journal of Commerce. The executive said several of the forwarder’s customers had shipped higher volumes than usual over the past two months “for different reasons.” “Some customers said it was because of uncertainty over future Donald Trump and US Federal Reserve decisions,” he said. “Others said demand was returning to more normal in US markets and some people even talked about a shipment run due to the soccer World Cup.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8d2a87d6-d5a7-4df4-b8b7-7cb4a299dcc1"></dynamic-object></div>Damas said the strong spot rate increases on the trans-Atlantic that extended into May were mostly due to capacity reductions by the Ocean Alliance and higher bunker fuel charges. Meanwhile, very low-sulfur fuel oil (VLSFO) bunker prices in Rotterdam are currently trading at $725/metric ton, a 48% premium compared with the Feb. 27 price just before the war in the Middle East began, according to data from Ship &amp; Bunker. At the other end of the trans-Atlantic trade lane, VLSFO in New York is trading at $794/metric ton after hitting a record high of $862/metric ton on May 5. The current price is 50% higher since the start of the war, Ship &amp; Bunker data shows. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A demand recovery on the trans-Atlantic westbound trade that followed a lackluster first quarter has begun to slow, with the sharply higher rates flattening over the past two weeks. But the supply-demand picture is confusing. From a capacity perspective, expectations of a weakening market were not reflected in June’s vessel deployment plans by ocean carriers. Data from Xeneta’s eeSea shows planned capacity on the North Europe-US East Coast westbound trade in June will be 327,860 TEUs, up 10,000 TEUs from May. Yet US imports in April, the latest available data from PIERS, a sister company of the Journal of Commerce within S&P Global, show volume declining 11% year over year at 185,960 TEUs following a 2.8% drop in March. Spot rates on the corridor reached their highest level of the year in the first half of May, but there has been little upward movement since then, according to most rate indexes. North Europe to USEC spot rates have been stuck at $2,100 per FEU since the first week of May, although that rate is up 60% from late March, according to Platts, a sister company of the Journal of Commerce. Drewry’s World Container Index this week was at $2,453/FEU for the trade lane, up 65% compared with the last week of March. There are mixed industry views on what to expect from US import demand in June, although Hapag-Lloyd holds a positive view of the market heading into summer. “The projection for June is pretty good ... it’s coming from all different industries, excluding forestry,” a spokesperson for the carrier told the Journal of Commerce Wednesday. “Since May last year rates have been going down and a recovery was urgently needed,” the spokesperson added. “We saw a good March and a good April with strong volume growth, and the second half of May was a bit softer.” Philip Damas, managing director and head of Drewry Supply Chain Advisors, said the latest data reflected a moderating market. “We are not aware of strong demand flows on this route now; June is not typically a strong month for trans-Atlantic traffic,” Damas said. “We forecast a reduction in spot rates from Northern Europe to the US East Coast in June, ending the latest upswing period for spot rates.” Westbound vessels ‘getting lighter’ Peter Sand, chief analyst at rate benchmarking platform Xeneta, also highlighted a weakening trans-Atlantic market. “The carriers pulled capacity in January and convinced shippers that the market was tight,” he said. “[Capacity] is mostly back now and weak demand means there is no tight market on the trans-Atlantic.” An ocean freight executive at a global forwarder agreed that the market was softening after a strong couple of months. “We already see that vessels are getting lighter again and expect a calm summer,” the source told the Journal of Commerce. The executive said several of the forwarder’s customers had shipped higher volumes than usual over the past two months “for different reasons.” “Some customers said it was because of uncertainty over future Donald Trump and US Federal Reserve decisions,” he said. “Others said demand was returning to more normal in US markets and some people even talked about a shipment run due to the soccer World Cup.” Damas said the strong spot rate increases on the trans-Atlantic that extended into May were mostly due to capacity reductions by the Ocean Alliance and higher bunker fuel charges. Meanwhile, very low-sulfur fuel oil (VLSFO) bunker prices in Rotterdam are currently trading at $725/metric ton, a 48% premium compared with the Feb. 27 price just before the war in the Middle East began, according to data from Ship & Bunker. At the other end of the trans-Atlantic trade lane, VLSFO in New York is trading at $794/metric ton after hitting a record high of $862/metric ton on May 5. The current price is 50% higher since the start of the war, Ship & Bunker data shows. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Higher trans-Atlantic ocean rates plateau as demand rally slows

<div class="phx-topic abstract-wrapper">Industry sources say operations have been affected by yard congestion and associated delays in inter-terminal transfer activity, which is an integral part of transshipment operations.</div>

Industry sources say operations have been affected by yard congestion and associated delays in inter-terminal transfer activity, which is an integral part of transshipment operations.

<div class="phx-topic">Sri Lanka’s Colombo Port has become another Asian container hub facing the pressure of supply chains squeezed by rerouted Middle East-bound containers. Industry sources in Colombo who spoke with the Journal of Commerce said terminal operations have been affected by yard congestion and associated delays in inter-terminal transfer (ITT) activity, which is an integral part of transshipment operations. Colombo is a key intermediate port in South Asia, especially for Indian East Coast shippers historically relying on transshipment connections. “Vessels are experiencing an average berthing delay of two to three days,” said an executive at a European liner who didn’t want to be identified. “Longer waits have a significant negative impact on our overall vessel operating costs.” Additionally, seasonal weather patterns along the Sri Lankan coast are posing operational challenges for carriers striving to keep their Colombo sailings on schedule. The bottlenecks have left some carriers announcing last-minute terminal changes for their regular service calls in Colombo. For example, the Gemini Cooperation has declared that its current week westbound and eastbound calls on the South India-Europe service known as the ME2 for Maersk and the IEX for Hapag-Lloyd will call Colombo’s South Asia Gateway Terminal (SAGT) instead of using the fixed-day berthing windows at the Colombo West International Terminal (CWIT). Adani Ports-managed CWIT opened to business in April 2025 with an ad-hoc Gemini network call. <h3>Colombo volumes up 20% since war began </h3>Maersk declined to comment on the vessel flow disruption at Colombo, which has seen volume gains of 20% since the Middle East war began on Feb. 28, rising from 636,084 TEUs in February to 736,094 TEUs in March and 761,096 TEUs in April, according to available data. The disruptive impact of unexpected transshipment volumes on port flows is widespread in the region as carriers diverted vessels away from the war zone. India’s busiest container hubs of <a href="https://www.joc.com/article/rising-container-dwells-hobble-vessel-flows-at-indias-nhava-sheva-mundra-ports-6220540">Nhava Sheva and Mundra have been plagued by clogged yards and considerable gate activity slowdowns</a> over the past month, an issue that continues to raise alarm bells through supply chain stakeholders and government circles. Responding to fresh government directives, Nhava Sheva is now pushing rail evacuations and green channel operations to ease freight delays, while the Indian Ports Association (IPA) is set to conduct an audit to measure the scale of yard congestion at the port. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Sri Lanka’s Colombo Port has become another Asian container hub facing the pressure of supply chains squeezed by rerouted Middle East-bound containers. Industry sources in Colombo who spoke with the Journal of Commerce said terminal operations have been affected by yard congestion and associated delays in inter-terminal transfer (ITT) activity, which is an integral part of transshipment operations. Colombo is a key intermediate port in South Asia, especially for Indian East Coast shippers historically relying on transshipment connections. “Vessels are experiencing an average berthing delay of two to three days,” said an executive at a European liner who didn’t want to be identified. “Longer waits have a significant negative impact on our overall vessel operating costs.” Additionally, seasonal weather patterns along the Sri Lankan coast are posing operational challenges for carriers striving to keep their Colombo sailings on schedule. The bottlenecks have left some carriers announcing last-minute terminal changes for their regular service calls in Colombo. For example, the Gemini Cooperation has declared that its current week westbound and eastbound calls on the South India-Europe service known as the ME2 for Maersk and the IEX for Hapag-Lloyd will call Colombo’s South Asia Gateway Terminal (SAGT) instead of using the fixed-day berthing windows at the Colombo West International Terminal (CWIT). Adani Ports-managed CWIT opened to business in April 2025 with an ad-hoc Gemini network call. Colombo volumes up 20% since war began Maersk declined to comment on the vessel flow disruption at Colombo, which has seen volume gains of 20% since the Middle East war began on Feb. 28, rising from 636,084 TEUs in February to 736,094 TEUs in March and 761,096 TEUs in April, according to available data. The disruptive impact of unexpected transshipment volumes on port flows is widespread in the region as carriers diverted vessels away from the war zone. India’s busiest container hubs of Nhava Sheva and Mundra have been plagued by clogged yards and considerable gate activity slowdowns over the past month, an issue that continues to raise alarm bells through supply chain stakeholders and government circles. Responding to fresh government directives, Nhava Sheva is now pushing rail evacuations and green channel operations to ease freight delays, while the Indian Ports Association (IPA) is set to conduct an audit to measure the scale of yard congestion at the port. Contact Bency Mathew at bencyvmathew@gmail.com .

International ports

Choked container yards strain terminal operations at Sri Lanka’s Colombo Port

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