<div class="phx-topic abstract-wrapper">The fire-damaged container ship MSC Flaminia and its accompanying tugs have been moved to a position more than 400 nautical miles west of the English Channel to avoid rough weather, the ship&amp;rsquo;s o</div>

The fire-damaged container ship MSC Flaminia and its accompanying tugs have been moved to a position more than 400 nautical miles west of the English Channel to avoid rough weather, the ship&rsquo;s o

<div>The fire-damaged container ship MSC Flaminia and its accompanying tugs have been moved to a position more than 400 nautical miles west of the English Channel to avoid rough weather, the ship&amp;rsquo;s owner said.Owner Reederei NSB said it and Smit Salvage are still trying to obtain permission to tow the ship to a sheltered area or port.The vessel&amp;rsquo;s owner said weather conditions were expected to deteriorate in the next few days, so the ship and its tugs set a northwesterly course at 4.5 knots to an area where less wave swell was expected.&amp;ldquo;A significant impairment of the stability of MSC...

The fire-damaged container ship MSC Flaminia and its accompanying tugs have been moved to a position more than 400 nautical miles west of the English Channel to avoid rough weather, the ship&rsquo;s owner said. Owner Reederei NSB said it and Smit Salvage are still trying to obtain permission to tow the ship to a sheltered area or port. The vessel&rsquo;s owner said weather conditions were expected to deteriorate in the next few days, so the ship and its tugs set a northwesterly course at 4.5 knots to an area where less wave swell was expected. &ldquo;A significant impairment of the stability of MSC Flaminia due the expected wave height cannot be excluded and is observed apprehensively,&rdquo; Reederei NSB said in an update on its Web site. Reederei NSB has declared general average for the ship, meaning losses will be apportioned among all parties with cargo on the ship. The MSC Flaminia, which has capacity of 6,732 20-foot-equivalent units, is chartered to Mediterranean Shipping Co. The ship caught fire July 14 en route from Charleston to Antwerp and was abandoned in the mid-Atlantic. Two crewmembers died, and three were injured. Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter at @JosephBonney.

Container lines

MSC Flaminia Towed Away From Storm

<div class="phx-topic abstract-wrapper">The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line.</div>

The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line.

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<div class="phx-topic">Taiwan's Evergreen Marine is continuing to lock in new tonnage after approving a pair of shipbuilding orders with two Chinese shipyards worth up to almost $1.5 billion for 23 vessels. Both contracts were approved by Evergreen directors at a meeting Tuesday. The larger of the two deals was placed with CSSC Huangpu Wenchong Shipbuilding for 16 3,100-TEU container ships. Evergreen said the order is worth between $736 million and $896 million. The second contract, valued at between $469 million and $574 million, is for seven 5,900-TEU ships that will be constructed by Jiangsu New Yangzi Shipbuilding. Evergreen did not specify the fuel type the ships would use, when they would be delivered or where they would be deployed. Shipbrokers, though, said the ships are likely to join the Evergreen fleet in 2028 and 2029. The carrier <a href="https://www.joc.com/article/evergreen-to-expand-latin-america-middle-east-services-6087379">said in September</a> that it would deploy 3,000-TEU capacity ships on Caribbean services by 2030. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b329b55b-f24b-4c28-90ae-63ad99a09181"></dynamic-object></div>The new deals approved Tuesday follow contracts <a href="https://www.joc.com/article/evergreen-says-will-spend-almost-3-billion-on-14-new-lng-fueled-ships-6114739">Evergreen inked in November</a> worth almost $3 billion for 14 14,000-TEU LNG-powered container ships. The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line, according to data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Evergreen is still some way behind fourth-placed Cosco Shipping Holdings, which has a total capacity comprising ships in service and on order by Cosco Shipping and its Hong Kong affiliate OOCL of 4.2 million TEUs. The latest Evergreen orders also boost the total container ship orderbook to 1,275 ships totaling 11.5 million TEUs, equivalent to more than 34% of the existing fleet, to be delivered between 2026 and 2030, according to the latest data from British shipbroker Clarksons. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Taiwan's Evergreen Marine is continuing to lock in new tonnage after approving a pair of shipbuilding orders with two Chinese shipyards worth up to almost $1.5 billion for 23 vessels. Both contracts were approved by Evergreen directors at a meeting Tuesday. The larger of the two deals was placed with CSSC Huangpu Wenchong Shipbuilding for 16 3,100-TEU container ships. Evergreen said the order is worth between $736 million and $896 million. The second contract, valued at between $469 million and $574 million, is for seven 5,900-TEU ships that will be constructed by Jiangsu New Yangzi Shipbuilding. Evergreen did not specify the fuel type the ships would use, when they would be delivered or where they would be deployed. Shipbrokers, though, said the ships are likely to join the Evergreen fleet in 2028 and 2029. The carrier said in September that it would deploy 3,000-TEU capacity ships on Caribbean services by 2030. The new deals approved Tuesday follow contracts Evergreen inked in November worth almost $3 billion for 14 14,000-TEU LNG-powered container ships. The latest orders increase Evergreen’s capacity backlog to 926,000 TEUs, boosting the carrier’s total capacity on the water and on order to almost 2.85 million TEUs and making it the world’s fifth-largest container line, according to data from Sea-web, a sister company of the Journal of Commerce within S&P Global. Evergreen is still some way behind fourth-placed Cosco Shipping Holdings, which has a total capacity comprising ships in service and on order by Cosco Shipping and its Hong Kong affiliate OOCL of 4.2 million TEUs. The latest Evergreen orders also boost the total container ship orderbook to 1,275 ships totaling 11.5 million TEUs, equivalent to more than 34% of the existing fleet, to be delivered between 2026 and 2030, according to the latest data from British shipbroker Clarksons. Contact Keith Wallis at keithwallis@hotmail.com.

Container Shipping News

Maritime

Evergreen adds to order backlog with deals for 23 ships worth up to almost $1.5 billion

<div class="phx-topic abstract-wrapper">The logistics payments vendor has partnered with fellow software provider Gnosis Freight to enable payments at other stages of a containerized shipment lifecycle.</div>

The logistics payments vendor has partnered with fellow software provider Gnosis Freight to enable payments at other stages of a containerized shipment lifecycle.

<div class="phx-topic">Logistics payment software vendor PayCargo on Wednesday said it is broadening its reach to underpin a wider range of international transportation transactions. The company has traditionally focused on facilitating payments tied to cargo release from third-party logistics companies to ocean carriers, first as a pure payments transaction portal and then by established direct feeds with customers and shipping lines. The expansion announced Wednesday will see PayCargo enable payments in adjacent transactions, particularly around storage fees that accrue at various points in the lifecycle of a containerized shipment. PayCargo CEO Eduardo Del Riego told the Journal of Commerce the new capability has been co-developed with fellow software vendor Gnosis Freight, whose container lifecycle management product is primarily aimed at beneficial cargo owners (BCOs). The two companies had worked in partnership over the last year in co-developing a payment portal for Hapag-Lloyd that the shipping line’s customers could use to pay invoices. The two will now co-sell the ability to use PayCargo’s extended payment capabilities to their respective customer bases: PayCargo to the 40,000 regular logistics service provider users of its platform, and Gnosis to its BCO customers. “It’s an opportunity for us to execute additional payments,” Del Riego said. <h3>Goal is to ‘go global’ </h3>The extended product also introduces accounts payable automation designed to let PayCargo’s customers manage more payments without increasing headcount. The automation pulls accrued amounts from the payer’s systems and matches it with the prospective invoiced amount from the shipping line or other payee, with the intent to eliminate errors before an invoice is issued. The AP automation was built as PayCargo realized it “had to bring something other than payment” to scale the business, Del Riego said. “The goal is broader relationships with existing customers and to go global.” He said 90% of PayCargo’s business is North America-based, but the company has designs on growing in Europe and Asia, with a 30-member team based out of Madrid to provide 24-hour customer service. The Hapag-Lloyd portal, meanwhile, is being rolled out globally, and Del Riego said “the goal is to have more customers like that. We follow where our customers want us to be.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com.</a></div>

Logistics payment software vendor PayCargo on Wednesday said it is broadening its reach to underpin a wider range of international transportation transactions. The company has traditionally focused on facilitating payments tied to cargo release from third-party logistics companies to ocean carriers, first as a pure payments transaction portal and then by established direct feeds with customers and shipping lines. The expansion announced Wednesday will see PayCargo enable payments in adjacent transactions, particularly around storage fees that accrue at various points in the lifecycle of a containerized shipment. PayCargo CEO Eduardo Del Riego told the Journal of Commerce the new capability has been co-developed with fellow software vendor Gnosis Freight, whose container lifecycle management product is primarily aimed at beneficial cargo owners (BCOs). The two companies had worked in partnership over the last year in co-developing a payment portal for Hapag-Lloyd that the shipping line’s customers could use to pay invoices. The two will now co-sell the ability to use PayCargo’s extended payment capabilities to their respective customer bases: PayCargo to the 40,000 regular logistics service provider users of its platform, and Gnosis to its BCO customers. “It’s an opportunity for us to execute additional payments,” Del Riego said. Goal is to ‘go global’ The extended product also introduces accounts payable automation designed to let PayCargo’s customers manage more payments without increasing headcount. The automation pulls accrued amounts from the payer’s systems and matches it with the prospective invoiced amount from the shipping line or other payee, with the intent to eliminate errors before an invoice is issued. The AP automation was built as PayCargo realized it “had to bring something other than payment” to scale the business, Del Riego said. “The goal is broader relationships with existing customers and to go global.” He said 90% of PayCargo’s business is North America-based, but the company has designs on growing in Europe and Asia, with a 30-member team based out of Madrid to provide 24-hour customer service. The Hapag-Lloyd portal, meanwhile, is being rolled out globally, and Del Riego said “the goal is to have more customers like that. We follow where our customers want us to be.” Contact Eric Johnson at eric.johnson@spglobal.com.

Logistics Technology News

Supply chain

PayCargo expanding footprint beyond ocean freight cargo release

<div class="phx-topic abstract-wrapper">The Metro Express Terminal at Pier S will serve smaller, independent container lines on the trans-Pacific that carry e-commerce merchandise requiring rapid movement once onshore.</div>

The Metro Express Terminal at Pier S will serve smaller, independent container lines on the trans-Pacific that carry e-commerce merchandise requiring rapid movement once onshore.

<div class="phx-topic">The new zero-emission container terminal planned for Pier S at the Port of Long Beach will be built to attract independent carriers operating express services geared for the trans-Pacific e-commerce market, according to developers of the project. <a href="https://www.joc.com/article/long-beach-considering-development-of-conventional-zero-emissions-terminal-ceo-6153068">The Metro Express Terminal at Pier S</a> is likely to pull in smaller container lines that operate vessels of 9,000-TEU capacity or less making faster turn-times than the mainline trans-Pacific carriers operating vessels of 15,000-TEU-plus capacity, said Peter Stone, senior vice president/strategic projects at Brookfield Properties. Express services carrying e-commerce merchandise require rapid movement of containers through marine terminals once they are discharged from vessels. “The nature of express services is not that the ships go faster. It’s that they get in and out of the terminal faster,” Stone told the Journal of Commerce Monday. The Pier S terminal will be designed for “regular” e-commerce merchandise that is sold online and shipped by retailers. The e-commerce market that will be served by Pier S is shipped in ocean containers under a speed-to-market model. “The carriers and [third-party logistics] companies we talked to are asking for this type of product,” Stone said. “They want a fast transfer from ship to warehouse.” Metro Express will not be adversely affected by the US eliminating the de minimis exemption on low-value and e-commerce imports, Stone said, because the goods that enjoyed the duty-free exemption — those valued at under $800 — were never shipped in ocean containers. All efforts now by the port and its partners in the Pier S project are geared toward finalizing the business deal and getting the necessary environmental approvals, said Noel Hacegaba, CEO of the Port of Long Beach. “Our next steps include finalizing the negotiation of the preferred assignment agreement, along with design, environmental review and outreach to our many stakeholders, including labor, community members and industry partners,” Hacegaba told the Journal of Commerce. <h3>Short timeline anticipated </h3>Stone said he does not have an answer yet as to how long it will take to finalize the business deals and secure the necessary environmental approvals, but he anticipates it will be rather seamless. The partners will build a conventional marine terminal, ship-to-shore cranes will be electric, and cargo-handling equipment will be zero-emission and manually operated by longshoremen. “This terminal is a very straightforward project and ready for construction,” he said. Hacegaba said Pier S is used now by other terminals for container peel-offs and temporary container storage. “No structures will need to be removed prior to construction,” he said. Given those conditions, once construction begins on the Metro Express Terminal, it should only take three to five years to complete, Stone said. Pier S will utilize about 105 acres of the 160-acre site, and the terminal will have an annual capacity of 1.8 million TEUs, he said. The eventual price tag, Stone added, will be known after the business negotiations are completed. There will be no need for on-dock rail on the terminal because containers will be moved by truck to local warehouses or off-dock transload facilities, said Bob Owens, CEO of Nautilus International Holding Corp., which is partnering with Brookfield on the project. Nautilus provides business administration, management, and strategic oversight for marine transportation companies. Plans are to operate Pier S around the clock in order to better utilize the International Longshore and Warehouse Union (ILWU) workforce. That will reduce container dwell times on the terminal, which in turn will enable the workforce to achieve container crane productivity that rivals terminals along the US Southeast coast, Owens said, adding it all fits in with what the e-commerce business model is built on. “The market is already there,” he said. “We’re just looking to serve that market.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The new zero-emission container terminal planned for Pier S at the Port of Long Beach will be built to attract independent carriers operating express services geared for the trans-Pacific e-commerce market, according to developers of the project. The Metro Express Terminal at Pier S is likely to pull in smaller container lines that operate vessels of 9,000-TEU capacity or less making faster turn-times than the mainline trans-Pacific carriers operating vessels of 15,000-TEU-plus capacity, said Peter Stone, senior vice president/strategic projects at Brookfield Properties. Express services carrying e-commerce merchandise require rapid movement of containers through marine terminals once they are discharged from vessels. “The nature of express services is not that the ships go faster. It’s that they get in and out of the terminal faster,” Stone told the Journal of Commerce Monday. The Pier S terminal will be designed for “regular” e-commerce merchandise that is sold online and shipped by retailers. The e-commerce market that will be served by Pier S is shipped in ocean containers under a speed-to-market model. “The carriers and [third-party logistics] companies we talked to are asking for this type of product,” Stone said. “They want a fast transfer from ship to warehouse.” Metro Express will not be adversely affected by the US eliminating the de minimis exemption on low-value and e-commerce imports, Stone said, because the goods that enjoyed the duty-free exemption — those valued at under $800 — were never shipped in ocean containers. All efforts now by the port and its partners in the Pier S project are geared toward finalizing the business deal and getting the necessary environmental approvals, said Noel Hacegaba, CEO of the Port of Long Beach. “Our next steps include finalizing the negotiation of the preferred assignment agreement, along with design, environmental review and outreach to our many stakeholders, including labor, community members and industry partners,” Hacegaba told the Journal of Commerce. Short timeline anticipated Stone said he does not have an answer yet as to how long it will take to finalize the business deals and secure the necessary environmental approvals, but he anticipates it will be rather seamless. The partners will build a conventional marine terminal, ship-to-shore cranes will be electric, and cargo-handling equipment will be zero-emission and manually operated by longshoremen. “This terminal is a very straightforward project and ready for construction,” he said. Hacegaba said Pier S is used now by other terminals for container peel-offs and temporary container storage. “No structures will need to be removed prior to construction,” he said. Given those conditions, once construction begins on the Metro Express Terminal, it should only take three to five years to complete, Stone said. Pier S will utilize about 105 acres of the 160-acre site, and the terminal will have an annual capacity of 1.8 million TEUs, he said. The eventual price tag, Stone added, will be known after the business negotiations are completed. There will be no need for on-dock rail on the terminal because containers will be moved by truck to local warehouses or off-dock transload facilities, said Bob Owens, CEO of Nautilus International Holding Corp., which is partnering with Brookfield on the project. Nautilus provides business administration, management, and strategic oversight for marine transportation companies. Plans are to operate Pier S around the clock in order to better utilize the International Longshore and Warehouse Union (ILWU) workforce. That will reduce container dwell times on the terminal, which in turn will enable the workforce to achieve container crane productivity that rivals terminals along the US Southeast coast, Owens said, adding it all fits in with what the e-commerce business model is built on. “The market is already there,” he said. “We’re just looking to serve that market.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

Trans-Pacific

North American ports

Marine terminals

New terminal planned for Long Beach designed to attract e-commerce business

<div class="phx-topic abstract-wrapper">The port’s CEO said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput.</div>

The port’s CEO said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput.

<div class="phx-topic">Labor woes and congestion in 2025 cost the Port of Antwerp-Bruges both cargo volumes and market share, the head of the Belgian port complex said Tuesday. Port CEO Jacques Vandermeiren said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput, as carriers switched to alternative ports. That left container throughput for the year virtually flat, growing just 0.7% to 13.6 million TEUs. Vandermeiren pointed out that delays on the inland transport network, especially rail, were even longer, without giving a figure. “Carriers prefer to go to other ports instead of waiting,” Vandermeiren said during an online results briefing, adding he was unsure if the loss of services and port calls is permanent or temporary. “Twenty-five days is a lot. In my opinion, [a] once in a lifetime [event]. But not a second time.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="737395cc-597a-42a5-b9e6-29ec807687cf"></dynamic-object></div>Container traffic remained the biggest contributor in tonnage terms, accounting for 150 million metric tons of the 267 million metric tons Antwerp-Bruges handled last year. But overall cargo volumes, including dry and liquid cargoes, were down 4% year over year. The switch in services due to labor unrest and congestion led Antwerp-Bruges to lose market share to other north European ports in the Hamburg-Le Havre region, Vandermeiren added. He said the port’s market share slipped 1.2 percentage points to 29.3%. Cargo disruption caused by vessel diversions around southern Africa, unpredictable US tariff policies and shifts in carrier alliance memberships, especially the launch of the Maersk/Hapag-Lloyd Gemini Cooperation, also added extra pressure to the logistics chain. The total number of vessels waiting to berth in Antwerp during the fourth quarter was about 35% higher than the fourth quarter of 2024, according to data from Portcast. <h3>China business picks up amid US tariffs </h3>Vandermeiren pointed out that US tariffs on China caused a 3.8% increase in container imports from China to Antwerp, although containerized exports to China fell 3.3%. He was hopeful though that stability within the alliances, coupled with the more efficient handling of goods in the port, meant congestion would not be an issue this year. Vandermeiren was also optimistic that labor relations would improve, especially among the marine pilots who are discussing a new organization. “The discussions are evolving well in a constructive atmosphere,” he said.” So hopefully we will not have those 25 days [of disruption] again.” Vandermeiren said last year’s congestion problems increased the urgency for $6 billion worth of projects on the board, including Antwerp’s extra container capacity initiative that aims to add an extra 7.1 million TEUs of capacity. This will be achieved through the construction of additional dock space, including the expansion of the North Sea terminal. The regional Flemish government has already approved part of the work. Vandermeiren expects construction will start on all the projects this year and in 2027, with completion by 2032–33. “Without additional capacity, there is a risk that a large part of container traffic will shift to foreign ports,” a port spokesperson said. Contact Keith Wallis at <a href="https://www.joc.com/article/keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Labor woes and congestion in 2025 cost the Port of Antwerp-Bruges both cargo volumes and market share, the head of the Belgian port complex said Tuesday. Port CEO Jacques Vandermeiren said Antwerp experienced about 25 days of industrial action last year that resulted in the loss of 2.4 million metric tons of cargo, equivalent to 1% of its annual throughput, as carriers switched to alternative ports. That left container throughput for the year virtually flat, growing just 0.7% to 13.6 million TEUs. Vandermeiren pointed out that delays on the inland transport network, especially rail, were even longer, without giving a figure. “Carriers prefer to go to other ports instead of waiting,” Vandermeiren said during an online results briefing, adding he was unsure if the loss of services and port calls is permanent or temporary. “Twenty-five days is a lot. In my opinion, [a] once in a lifetime [event]. But not a second time.” Container traffic remained the biggest contributor in tonnage terms, accounting for 150 million metric tons of the 267 million metric tons Antwerp-Bruges handled last year. But overall cargo volumes, including dry and liquid cargoes, were down 4% year over year. The switch in services due to labor unrest and congestion led Antwerp-Bruges to lose market share to other north European ports in the Hamburg-Le Havre region, Vandermeiren added. He said the port’s market share slipped 1.2 percentage points to 29.3%. Cargo disruption caused by vessel diversions around southern Africa, unpredictable US tariff policies and shifts in carrier alliance memberships, especially the launch of the Maersk/Hapag-Lloyd Gemini Cooperation, also added extra pressure to the logistics chain. The total number of vessels waiting to berth in Antwerp during the fourth quarter was about 35% higher than the fourth quarter of 2024, according to data from Portcast. China business picks up amid US tariffs Vandermeiren pointed out that US tariffs on China caused a 3.8% increase in container imports from China to Antwerp, although containerized exports to China fell 3.3%. He was hopeful though that stability within the alliances, coupled with the more efficient handling of goods in the port, meant congestion would not be an issue this year. Vandermeiren was also optimistic that labor relations would improve, especially among the marine pilots who are discussing a new organization. “The discussions are evolving well in a constructive atmosphere,” he said.” So hopefully we will not have those 25 days [of disruption] again.” Vandermeiren said last year’s congestion problems increased the urgency for $6 billion worth of projects on the board, including Antwerp’s extra container capacity initiative that aims to add an extra 7.1 million TEUs of capacity. This will be achieved through the construction of additional dock space, including the expansion of the North Sea terminal. The regional Flemish government has already approved part of the work. Vandermeiren expects construction will start on all the projects this year and in 2027, with completion by 2032–33. “Without additional capacity, there is a risk that a large part of container traffic will shift to foreign ports,” a port spokesperson said. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

International ports

Labor action, congestion cost Antwerp-Bruges cargo volumes, market share in 2025

<div class="phx-topic abstract-wrapper">Union Pacific Railroad called the decision by federal regulators to rule its filing as “incomplete” a minor setback that won’t significantly change the timeline for its hoped-for acquisition of NS.</div>

Union Pacific Railroad called the decision by federal regulators to rule its filing as “incomplete” a minor setback that won’t significantly change the timeline for its hoped-for acquisition of NS.

<div class="phx-topic">Union Pacific Railroad (UP) said Tuesday it is moving quickly to address deficiencies that led federal regulators to deem its application to acquire Norfolk Southern Railway (NS) “incomplete,” and expects to refile an updated application within “weeks.” Once UP resubmits its application, the regulatory process will restart with a fresh 30-day review period during which the US Surface Transportation Board (STB) will determine whether the new filing is complete. Interested parties may file comments during that period, and UP and NS can respond. “We are disappointed that the STB determined we needed to provide more information after providing close to 7,000 pages,” UP CEO Jim Vena said during the railroad’s fourth-quarter earnings call Tuesday. “Our response will take a few weeks to prepare and then we will refile our application as soon as possible.  “We view this as a short-term blip and do not expect a significant change to the timeline as we are still targeting closing in the first half of 2027,” he added. Although UP did not provide a specific refiling date, Vena said the company would announce the timing in a subsequent public statement and that a revised application could be sent to the STB in March. The <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">STB determined that UP failed to provide</a> sufficient information on future growth, citing inconsistencies in baseline assumptions across different sections of its application. Opponents of the $85 billion deal have also argued that Union Pacific’s projections, including removing 2 million truckloads from highways in large part through 1.17 million truckload-to-intermodal conversions within three years, are overly optimistic. Vena said long-haul intermodal routes exceeding 2,000 miles historically have lower rail market share because shippers are reluctant to accept handoffs between railroads in hubs such as Chicago. Under a combined Union Pacific–Norfolk Southern network, he said, market share would more closely resemble that of 1,000- to 1,500-mile lanes, where rail penetration is higher because a single railroad handles the entire move. Other railroads have argued that handling that volume would require UP to operate as many as 15 additional trains per day, potentially congesting the network. UP said it would not degrade overall service. “This morning, we have over 2,000 movements, foreign railroads, and local trains running on our network,” Vena said on the earnings call. “If we add 10 or 15 more trains a day, it's a pretty small rounding error on the impact for the network.”  UP also addressed the STB’s objection to the railroad’s failure to disclose a document known as Schedule 5.6, which outlines conditions under which the company could walk away from the transaction.  “I don’t like it because I don’t think it adds to the merits, but guess what? I wish Jim Vena had a totalitarian system that I could get every decision that I want, but I don’t even get it at home with my wife and kids, let alone with the regulator,” Vena said. <h3>Not banking on economic turnaround this year </h3>While there were few non-merger-related questions on Tuesday’s call, Union Pacific did offer a cautious economic outlook for 2026, acknowledging that pricing gains across its businesses will be difficult to achieve.  “S&amp;P Global’s 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated,” said Jennifer Hanneman, UP’s chief financial officer. “In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in 2026. Our commitment to yielding price dollars that exceed inflation dollars has not changed, but price may not be a driver of our improving margins in 2026.” S&amp;P Global is the parent company of the Journal of Commerce. UP said 2026 is likely to be challenging for international intermodal traffic, with port volumes expected to decline year over year through at least the first half. The railroad said it remains bullish on domestic intermodal, which set volume records in 2025, although it did not provide a specific forecast.  Union Pacific took market share from rival BNSF Railway in California during the second half of last year, according to data visibility platform RailState, while also winning freight from the truckload market. “We’ve had over-the-road wins with Uber Freight, over-the-road wins in Phoenix, wins in Kansas City,” Kenny Rocker, UP’s executive vice president of sales and marketing, said on the call. “So we’re coming from a position of strength and we’re excited about it.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Union Pacific Railroad (UP) said Tuesday it is moving quickly to address deficiencies that led federal regulators to deem its application to acquire Norfolk Southern Railway (NS) “incomplete,” and expects to refile an updated application within “weeks.”  Once UP resubmits its application, the regulatory process will restart with a fresh 30-day review period during which the US Surface Transportation Board (STB) will determine whether the new filing is complete. Interested parties may file comments during that period, and UP and NS can respond. “We are disappointed that the STB determined we needed to provide more information after providing close to 7,000 pages,” UP CEO Jim Vena said during the railroad’s fourth-quarter earnings call Tuesday. “Our response will take a few weeks to prepare and then we will refile our application as soon as possible.   “We view this as a short-term blip and do not expect a significant change to the timeline as we are still targeting closing in the first half of 2027,” he added.  Although UP did not provide a specific refiling date, Vena said the company would announce the timing in a subsequent public statement and that a revised application could be sent to the STB in March.  The  STB determined that UP failed to provide  sufficient information on future growth, citing inconsistencies in baseline assumptions across different sections of its application. Opponents of the $85 billion deal have also argued that Union Pacific’s projections, including removing 2 million truckloads from highways in large part through 1.17 million truckload-to-intermodal conversions within three years, are overly optimistic.  Vena said long-haul intermodal routes exceeding 2,000 miles historically have lower rail market share because shippers are reluctant to accept handoffs between railroads in hubs such as Chicago. Under a combined Union Pacific–Norfolk Southern network, he said, market share would more closely resemble that of 1,000- to 1,500-mile lanes, where rail penetration is higher because a single railroad handles the entire move.  Other railroads have argued that handling that volume would require UP to operate as many as 15 additional trains per day, potentially congesting the network. UP said it would not degrade overall service.  “This morning, we have over 2,000 movements, foreign railroads, and local trains running on our network,” Vena said on the earnings call. “If we add 10 or 15 more trains a day, it's a pretty small rounding error on the impact for the network.”   UP also addressed the STB’s objection to the railroad’s failure to disclose a document known as Schedule 5.6, which outlines conditions under which the company could walk away from the transaction.   “I don’t like it because I don’t think it adds to the merits, but guess what? I wish Jim Vena had a totalitarian system that I could get every decision that I want, but I don’t even get it at home with my wife and kids, let alone with the regulator,” Vena said.  Not banking on economic turnaround this year  While there were few non-merger-related questions on Tuesday’s call, Union Pacific did offer a cautious economic outlook for 2026, acknowledging that pricing gains across its businesses will be difficult to achieve.   “S&P Global’s 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated,” said Jennifer Hanneman, UP’s chief financial officer. “In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in 2026. Our commitment to yielding price dollars that exceed inflation dollars has not changed, but price may not be a driver of our improving margins in 2026.”  S&P Global is the parent company of the Journal of Commerce.  UP said 2026 is likely to be challenging for international intermodal traffic, with port volumes expected to decline year over year through at least the first half. The railroad said it remains bullish on domestic intermodal, which set volume records in 2025, although it did not provide a specific forecast.   Union Pacific took market share from rival BNSF Railway in California during the second half of last year, according to data visibility platform RailState, while also winning freight from the truckload market. “We’ve had over-the-road wins with Uber Freight, over-the-road wins in Phoenix, wins in Kansas City,” Kenny Rocker, UP’s executive vice president of sales and marketing, said on the call. “So we’re coming from a position of strength and we’re excited about it.”  Contact Ari Ashe at  ari.ashe@spglobal.com . 

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