<div class="phx-topic abstract-wrapper">International shipping movements on the Mekong River in Southeast Asia have restarted under armed escort after the killing of 12 Chinese sailors in early October spurred the shutdown of the waterway.</div>

International shipping movements on the Mekong River in Southeast Asia have restarted under armed escort after the killing of 12 Chinese sailors in early October spurred the shutdown of the waterway.

<div>International shipping movements on the Mekong River in Southeast Asia have restarted under armed escort after the killing of 12 Chinese sailors in early October spurred the shutdown of the waterway. Two hundred Chinese border police and 100 policemen from Myanmar, Laos and Thailand on Saturday <a>escorted a convoy</a> of 10 Chinese cargo ships departing Guanlei. The river is a major trading route linking China&amp;rsquo;s southwestern province of Yunnan to the South China Sea via Myanmar, Laos, Thailand, Cambodia and Vietnam.Some analysts see the joint security action as the latest sign of China using its military might to influence neighboring...

International shipping movements on the Mekong River in Southeast Asia have restarted under armed escort after the killing of 12 Chinese sailors in early October spurred the shutdown of the waterway. Two hundred Chinese border police and 100 policemen from Myanmar, Laos and Thailand on Saturday escorted a convoy of 10 Chinese cargo ships departing Guanlei. The river is a major trading route linking China&rsquo;s southwestern province of Yunnan to the South China Sea via Myanmar, Laos, Thailand, Cambodia and Vietnam. Some analysts see the joint security action as the latest sign of China using its military might to influence neighboring economies. Two Chinese cargo vessels and their crew of a dozen were attacked Oct. 5 on a section of the river south of China&rsquo;s border in Thailand. The region, known as the Golden Triangle , is notorious for opium production and smuggling. Nine Thai soldiers suspected of links to a Myanmar drugs baron have been arrested and accused of committing the murders. -- Contact Mike King at michael@borderline.eu.com

Maritime

Forwarding

Armed Guards Reopen Trade on Southeast Asian River

<div class="phx-topic abstract-wrapper">The agency said there needs to be additional information submitted concerning the environmental impact of the merger. </div>

The agency said there needs to be additional information submitted concerning the environmental impact of the merger.

Feature image

<div class="phx-topic">The US Surface Transportation Board Thursday unanimously voted to accept the Union Pacific Railroad’s revised application to acquire Norfolk Southern Railway but held off from giving a final blessing. Instead, the STB put a final decision in abeyance, because the agency said there needs to be additional information submitted concerning the environmental impact of the merger. The STB gave Union Pacific until July 26 to submit that material. The decision allows the process to go forward, but it is potentially another delay in the regulatory review of the proposed $85 billion transaction. The decision does not kill the deal but signals that regulators still do not believe the companies have provided enough information to allow a formal review of the proposed merger to begin, <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">much like they wrote in January</a>. “Today, the Board finds that Applicants have provided sufficient information to satisfy the completeness requirements for a major merger application.  Given the fairly narrow procedural question of completeness, issues raised by commenters do not warrant rejecting the revised application,” the STB wrote in its decision. Still, the STB’s decision might end the proposed marriage due to the costs associated with the deal. Previously, UP and NS disclosed that each was spending between $40 million and $60 million per quarter on merger-related expenses; eventually, shareholders might decide the costs are too much to continue. “However, the Board finds that there are several aspects of the revised application that are unclear or underdeveloped and require supplementation at this stage of the proceeding so that the Board may have the information necessary to thoroughly evaluate—and the public has an adequate opportunity to comment on—whether the transaction is in the public interest.” While not a rejection, the ruling is a setback because UP and NS thought the revised application fixed everything that was deemed deficient in January. The revised filing updated truck-to-rail conversions and attempted to address concerns over two entities — Kansas City Terminal Railway and the Terminal Railroad Association of St. Louis — which control switching and operations across those cities. Both groups are jointly owned by Class I railroads. It also disclosed Schedule 5.8 of the merger agreement, the document that defines which regulatory conditions would be onerous enough for the companies to walk away from the deal. Nevertheless, regulators effectively sided with opponents who argued the revised application remained too vague on market concentration, traffic diversions and control of jointly owned rail assets. UP and NS said <a href="https://www.joc.com/article/ups-revised-filing-for-ns-merger-boosts-number-of-freight-conversions-6212318">the merger would shift 2.1 million truckloads from highways to rail each year</a> and save shippers an estimated $3.5 billion annually. UP and NS also say the combined railroad would create 88,000 new county-to-county lanes for single-line rail service and convert 10,000 existing interline lanes into single-line routes.  Opponents argued that those figures are too optimistic and not sufficiently supported. Their central claim is that UP and NS are overstating how much freight would move from truck to rail while understating how much traffic would simply be diverted from rival railroads. In its statement announcing the decision, the STB indicated it may be losing patience with Union Pacific, but it appears willing to give the parties 60 days to resolve the questions. Both railroads said the agency’s decision gives them a path forward to an eventual approval and merger. <h3>Decision time for UP, NS </h3>In a May 22 filing to the STB, state attorneys general from Florida, Iowa, Kansas, Montana, North Dakota and South Dakota argued that the application still failed to address how the combined UP and NS would control about half of US Class I freight rail traffic. The attorneys general also said the companies had not adequately analyzed whether the deal could trigger another round of Class I consolidation or provided enough detail on Kansas City, St. Louis, or a joint equipment pool of intermodal railcars called TTX. For UP and NS, the ruling turns what had been expected to be a procedural move into another test of the merger’s viability. The two railroads must now decide whether to submit additional information, providing more detail on the competitive and operational issues opponents have raised. Or they can decide to walk away from the deal. The calendar may also become a factor. As it stands, a decision from the STB was not likely until late 2027, but an additional delay would likely push attempts to rescue the deal into 2028, an election year. Democrats on Capitol Hill have already voiced their opposition to the merger because they believe it would create a virtual monopoly and harm union labor. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. Special Correspondent Dan Ronan contributed to this report. </div>

The US Surface Transportation Board Thursday unanimously voted to accept the Union Pacific Railroad’s revised application to acquire Norfolk Southern Railway but held off from giving a final blessing. Instead, the STB put a final decision in abeyance, because the agency said there needs to be additional information submitted concerning the environmental impact of the merger. The STB gave Union Pacific until July 26 to submit that material. The decision allows the process to go forward, but it is potentially another delay in the regulatory review of the proposed $85 billion transaction. The decision does not kill the deal but signals that regulators still do not believe the companies have provided enough information to allow a formal review of the proposed merger to begin, much like they wrote in January . “Today, the Board finds that Applicants have provided sufficient information to satisfy the completeness requirements for a major merger application.  Given the fairly narrow procedural question of completeness, issues raised by commenters do not warrant rejecting the revised application,” the STB wrote in its decision. Still, the STB’s decision might end the proposed marriage due to the costs associated with the deal. Previously, UP and NS disclosed that each was spending between $40 million and $60 million per quarter on merger-related expenses; eventually, shareholders might decide the costs are too much to continue. “However, the Board finds that there are several aspects of the revised application that are unclear or underdeveloped and require supplementation at this stage of the proceeding so that the Board may have the information necessary to thoroughly evaluate—and the public has an adequate opportunity to comment on—whether the transaction is in the public interest.” While not a rejection, the ruling is a setback because UP and NS thought the revised application fixed everything that was deemed deficient in January. The revised filing updated truck-to-rail conversions and attempted to address concerns over two entities — Kansas City Terminal Railway and the Terminal Railroad Association of St. Louis — which control switching and operations across those cities. Both groups are jointly owned by Class I railroads. It also disclosed Schedule 5.8 of the merger agreement, the document that defines which regulatory conditions would be onerous enough for the companies to walk away from the deal. Nevertheless, regulators effectively sided with opponents who argued the revised application remained too vague on market concentration, traffic diversions and control of jointly owned rail assets. UP and NS said the merger would shift 2.1 million truckloads from highways to rail each year and save shippers an estimated $3.5 billion annually. UP and NS also say the combined railroad would create 88,000 new county-to-county lanes for single-line rail service and convert 10,000 existing interline lanes into single-line routes.  Opponents argued that those figures are too optimistic and not sufficiently supported. Their central claim is that UP and NS are overstating how much freight would move from truck to rail while understating how much traffic would simply be diverted from rival railroads. In its statement announcing the decision, the STB indicated it may be losing patience with Union Pacific, but it appears willing to give the parties 60 days to resolve the questions. Both railroads said the agency’s decision gives them a path forward to an eventual approval and merger. Decision time for UP, NS In a May 22 filing to the STB, state attorneys general from Florida, Iowa, Kansas, Montana, North Dakota and South Dakota argued that the application still failed to address how the combined UP and NS would control about half of US Class I freight rail traffic. The attorneys general also said the companies had not adequately analyzed whether the deal could trigger another round of Class I consolidation or provided enough detail on Kansas City, St. Louis, or a joint equipment pool of intermodal railcars called TTX. For UP and NS, the ruling turns what had been expected to be a procedural move into another test of the merger’s viability. The two railroads must now decide whether to submit additional information, providing more detail on the competitive and operational issues opponents have raised. Or they can decide to walk away from the deal. The calendar may also become a factor. As it stands, a decision from the STB was not likely until late 2027, but an additional delay would likely push attempts to rescue the deal into 2028, an election year. Democrats on Capitol Hill have already voiced their opposition to the merger because they believe it would create a virtual monopoly and harm union labor. Contact Ari Ashe at ari.ashe@spglobal.com . Special Correspondent Dan Ronan contributed to this report.

Rail News

North-American rail

Intermodal providers

Surface

STB accepts UP/NS paperwork, buts holds on merger decision

<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.

<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

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. Firm container growth on the intra-Asia trades is reflected in the latest figures from Container Trade Statistics which show total regional volumes climbed 7% in the first quarter to 11.9 million TEU, from 11.1 million TEU a year earlier which came after a 5% increase to 50 million TEU for the whole of 2025.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. Firm container growth on the intra-Asia trades is reflected in the latest figures from Container Trade Statistics which show total regional volumes climbed 7% in the first quarter to 11.9 million TEU, from 11.1 million TEU a year earlier which came after a 5% increase to 50 million TEU for the whole of 2025. 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

Use code GTT26W at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code MDFTW30 at checkout to save 30% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

MEMORIAL DAY SALE

Use code MDGW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

Use code MDW30 at checkout and save 30% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code MDFTGW895 at checkout to save $600 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Use code MDGW895 at checkout and save $600 on a Gold annual subscription!

Subscribe Now - Anonymous to Gold - Wide Box

MEMORIAL DAY SALE: Use code MDFTW30 to save 30% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

MEMORIAL DAY SALE: Use code MDW30 at checkout and save 30% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

UPGRADE TO GOLD AND SAVE: Use code GTT26W at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

MEMORIAL DAY SALE: Use code MDGW895 at checkout and save $600 on a Gold annual subscription!

Subscribe Now - Anonymous to Gold - Offer Box

MEMORIAL DAY SALE: Use code MDGW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

MEMORIAL DAY SALE: Use code MDFTGW895 and save $600 on the first year of a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland26

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

The latest container shipping news and analysis of ocean container shipping, logistics, supply chains, technology solutions and end-to-end connectivity. Coverage includes the movement of containerized cargo handled by marine terminals and container ports, depots, container lines, drayage, consignees, importers and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers. The Journal of Commerce's container shipping news includes news from the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South America trades, and intra-Asia trades.

Asia-Europe

Trans-Pacific

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

STB accepts UP/NS paperwork, buts holds on merger decision

Vancouver truce opens door for GCT as mega-terminal operator

Double-digit rate increases whip up intra-Asia trades