<div class="phx-topic abstract-wrapper">Sea Star Line&amp;rsquo;s guilty plea to price-fixing and the indictment of its former president add to questions swirling around the future of the Puerto Rico trade and the U.S.-flag carriers that serve it.</div>

Sea Star Line&rsquo;s guilty plea to price-fixing and the indictment of its former president add to questions swirling around the future of the Puerto Rico trade and the U.S.-flag carriers that serve it.

<div>Sea Star Line&amp;rsquo;s guilty plea to <a>price-fixing</a> and the indictment of its former president add to questions swirling around the future of the Puerto Rico trade and the U.S.-flag carriers that serve it.For years the trade&amp;rsquo;s four carriers have been locked in a game of &amp;ldquo;Survivor,&amp;rdquo; hoping to outlast each other in a chronically depressed market that probably isn&amp;rsquo;t big enough to support four competing lines.The market&amp;rsquo;s future will be influenced by fallout from the antitrust investigation that became public when <a>federal agents raided the headquarters</a> of Sea Star, Horizon Lines and Crowley Maritime on April 17, 2008.The antitrust case...

Sea Star Line&rsquo;s guilty plea to price-fixing and the indictment of its former president add to questions swirling around the future of the Puerto Rico trade and the U.S.-flag carriers that serve it. For years the trade&rsquo;s four carriers have been locked in a game of &ldquo;Survivor,&rdquo; hoping to outlast each other in a chronically depressed market that probably isn&rsquo;t big enough to support four competing lines. The market&rsquo;s future will be influenced by fallout from the antitrust investigation that became public when federal agents raided the headquarters of Sea Star, Horizon Lines and Crowley Maritime on April 17, 2008. The antitrust case has proved costly to all of the carriers, some of which weren&rsquo;t in robust health to begin with. Sea Star will pay a $14.2 million criminal fine as a result of its guilty plea. Last March Horizon pleaded guilty to similar charges and accepted a $45 million fine that was cut to $15 million after the Justice Department said the higher penalty threatened to bankrupt the company. Separately, the carriers were hit with class-action civil antitrust lawsuits filed on behalf of shippers and shippers&rsquo; customers. Horizon, Sea Star and Crowley agreed to pay a total of $52.75 million to settle the shipper lawsuits, plus $5 million for the indirect customers&rsquo; lawsuits. Despite those settlements, the civil litigation isn&rsquo;t over. Carrier lawyers are still trying to settle individual claims by numerous shippers that opted out of the class-action settlement. For Horizon, which had been bought and sold by two private-equity groups in the last decade, the antitrust cases worsened the company&rsquo;s financial strains and threatened to put the company in default on its debt. Horizon escaped bankruptcy through deft financial footwork that produced a $652 million refinancing but eventually must figure out how to replace a fleet whose average age exceeds 30 years. Sea Star also has an old fleet. Its three container/roll-on, roll-off ships were updated in the 1990s but were launched in the mid-1970s. As a privately owned company, Sea Star doesn&rsquo;t disclose its financial results but has the backing of Seattle-based Saltchuk Resources, which also owns PNW-Alaska carrier TOTE. Trailer Bridge, the trade&rsquo;s smallest carrier, wasn&rsquo;t involved in the price fixing and escaped criminal charges or civil liability, but filed for Chapter 11 bankruptcy reorganization this week after failing to refinance $82.5 million in senior notes that came due Nov. 15. The company hopes to file a reorganization plan by March but could be a candidate for merger or acquisition. The trade&rsquo;s best-positioned carrier may be Crowley. The company paid $13.75 million to settle its part of the civil antitrust class action but denied any wrongdoing, and neither Crowley nor its executives have faced criminal charges. Crowley has an extensive network of maritime operations and its Puerto Rico container-barges would seem a good fit with Trailer Bridge&rsquo;s if the smaller company ends up being sold. The turmoil in the trade hasn&rsquo;t gone unnoticed in Puerto Rico. The Jones Act, which restricts U.S. domestic waterborne commerce to U.S.-flag ships owned, built and crewed by Americans, is a sensitive subject on the island. The Government Accountability Office, the investigative arm of Congress, recently agreed to a request by Puerto Rico&rsquo;s Resident Commissioner Pedro Pierluisi to analyze the impact of the law on Puerto Rico&rsquo;s commerce. This story is a long way from finished. -- Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney .

Maritime

Container lines

Forwarding

What's Next in Puerto Rico?

<div class="phx-topic abstract-wrapper">Data generated within logistics software vendors is part of a web of information that helps shippers weigh service levels and inventory carrying costs against rate levels. </div>

Data generated within logistics software vendors is part of a web of information that helps shippers weigh service levels and inventory carrying costs against rate levels.

Feature image

<div class="phx-topic">Importers beset by the imposition of now-overturned US tariffs are being asked by their companies to deliver supply chain cost savings that might offset the burden of those tariffs, and technology providers are lining up to help. That help can come in many forms, but principally in helping shippers benchmark ocean freight rate savings versus performance, weighing rate levels versus inventory carrying costs, and in helping establish capacity for new sourcing regions. Fabio Brocca, chief product officer at freight rate benchmarking analytics provider Xeneta, noted that the difference in transit time between the fastest and slowest carriers moving from China to the US West Coast is 13 days, but the price difference between the highest and lowest cost carrier is 10%. “So is 10% of your cost worth 13 days of transit time?,” Brocca said at the Journal of Commerce’s TPM26 conference in Long Beach last week. “That’s a decision for you to make. It’s impossible to predict what will happen next. The bigger problem is lack of transparency in data. You make procurement decisions that cost you millions of dollars.” Speaking during a conference session about how technology and data can facilitate cost cuts in international transportation, Brocca said shippers need tools that help them understand what a good short-term and long-term rate is, and what service levels align to those rates across hundreds of lanes, and often with carriers they’ve never worked with before. “We’ve seen shippers use our platform by picking up a phone and renegotiating a lane where [their price is outside the market rate],” he said. “But they also use it to see what the difference is between service level and cost.” <h3>Increased volatility </h3>The impetus for incorporating technology – whether rate benchmarking, visibility, or route planning and execution – has increased after years of intense volatility that have now become the norm, said Vizion CEO Kyle Henderson. “You have little gray swanlets popping up every day,” Henderson said during the TPM26 session, noting that highly regional or local impacts to supply chains are intermingled with large-scale events that impact all or most supply chains. “You can see them now because you have visibility and data, but there are more fires to deal with because you can see them, and they are all of different size and intensity,” he said. “It’s changed the mindset of our customers who need to be designing not only with reliability in mind but also with operations that can be responsive and with data backing up what they decided to do.” Henderson asserted that volatility is increasing exponentially, beyond just a function of more freight volume being moved, and that shippers who focus solely on reducing transportation costs are doomed to fall victim to an environment that is getting “more complex and less secure.” “We’ve all been living in a predictability bubble,” he said. “We’ve all been focused on reducing costs, but if you had to make a bet, would you choose the world is going to get less complex and more safe?” As example, Henderson noted the case of an apparel customer of Vizion, which provides visibility and business intelligence to shippers and third-party logistics providers, The apparel shipper wanted to do a performance evaluation of carriers it currently works with alongside those it hasn’t used before. The company ended up choosing a carrier that cut out two weeks in its total delivery time. “For this shipper, the rate wasn’t really the key consideration, because it was a comparable rate, but the inventory carrying cost was far more important,” Henderson said. He added that it can be tough for people in operational or procurement roles at importers to see the bigger picture of their cost structure “where they’re saving on their individual line item, but that might spike someone else’s line item.” <h3>Holistic view </h3>Martin Hubert, CEO of multimodal execution and planning software FreightGate, said companies with a formal head of supply chain are often better at weighing the various costs of transportation and sourcing than those where operations and procurement report into a finance department. Hubert said importers need to think holistically about the challenges they are currently facing, connecting routing decisions to sourcing decisions to figure out total landed cost but retaining flexibility after initial plans have been made. “What would happen if I source from this country or this country and then reevaluate it right before you make the booking, so you don’t get blindsided by some recent event or new tariff somebody invented,” he told TPM26. “The ability to have desk-level people being able to evaluate routing decisions is very important to not leaving money on the table.” While solutions providers are understandably focused on where artificial intelligence fits into the cost saving equation, Brocca said it has to be used in tandem with people and the knowledge they have that can’t be accessed by an AI model. “Our job as solutions providers is to simplify our customers’ lives,” he said. “AI is great at helping you prioritize certain initiatives and quantify this thing here versus this thing here. But the person ultimately needs to be making the decision.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Importers beset by the imposition of now-overturned US tariffs are being asked by their companies to deliver supply chain cost savings that might offset the burden of those tariffs, and technology providers are lining up to help. That help can come in many forms, but principally in helping shippers benchmark ocean freight rate savings versus performance, weighing rate levels versus inventory carrying costs, and in helping establish capacity for new sourcing regions. Fabio Brocca, chief product officer at freight rate benchmarking analytics provider Xeneta, noted that the difference in transit time between the fastest and slowest carriers moving from China to the US West Coast is 13 days, but the price difference between the highest and lowest cost carrier is 10%. “So is 10% of your cost worth 13 days of transit time?,” Brocca said at the Journal of Commerce’s TPM26 conference in Long Beach last week. “That’s a decision for you to make. It’s impossible to predict what will happen next. The bigger problem is lack of transparency in data. You make procurement decisions that cost you millions of dollars.” Speaking during a conference session about how technology and data can facilitate cost cuts in international transportation, Brocca said shippers need tools that help them understand what a good short-term and long-term rate is, and what service levels align to those rates across hundreds of lanes, and often with carriers they’ve never worked with before. “We’ve seen shippers use our platform by picking up a phone and renegotiating a lane where [their price is outside the market rate],” he said. “But they also use it to see what the difference is between service level and cost.” Increased volatility The impetus for incorporating technology – whether rate benchmarking, visibility, or route planning and execution – has increased after years of intense volatility that have now become the norm, said Vizion CEO Kyle Henderson. “You have little gray swanlets popping up every day,” Henderson said during the TPM26 session, noting that highly regional or local impacts to supply chains are intermingled with large-scale events that impact all or most supply chains. “You can see them now because you have visibility and data, but there are more fires to deal with because you can see them, and they are all of different size and intensity,” he said. “It’s changed the mindset of our customers who need to be designing not only with reliability in mind but also with operations that can be responsive and with data backing up what they decided to do.” Henderson asserted that volatility is increasing exponentially, beyond just a function of more freight volume being moved, and that shippers who focus solely on reducing transportation costs are doomed to fall victim to an environment that is getting “more complex and less secure.” “We’ve all been living in a predictability bubble,” he said. “We’ve all been focused on reducing costs, but if you had to make a bet, would you choose the world is going to get less complex and more safe?” As example, Henderson noted the case of an apparel customer of Vizion, which provides visibility and business intelligence to shippers and third-party logistics providers, The apparel shipper wanted to do a performance evaluation of carriers it currently works with alongside those it hasn’t used before. The company ended up choosing a carrier that cut out two weeks in its total delivery time. “For this shipper, the rate wasn’t really the key consideration, because it was a comparable rate, but the inventory carrying cost was far more important,” Henderson said. He added that it can be tough for people in operational or procurement roles at importers to see the bigger picture of their cost structure “where they’re saving on their individual line item, but that might spike someone else’s line item.” Holistic view Martin Hubert, CEO of multimodal execution and planning software FreightGate, said companies with a formal head of supply chain are often better at weighing the various costs of transportation and sourcing than those where operations and procurement report into a finance department. Hubert said importers need to think holistically about the challenges they are currently facing, connecting routing decisions to sourcing decisions to figure out total landed cost but retaining flexibility after initial plans have been made. “What would happen if I source from this country or this country and then reevaluate it right before you make the booking, so you don’t get blindsided by some recent event or new tariff somebody invented,” he told TPM26. “The ability to have desk-level people being able to evaluate routing decisions is very important to not leaving money on the table.” While solutions providers are understandably focused on where artificial intelligence fits into the cost saving equation, Brocca said it has to be used in tandem with people and the knowledge they have that can’t be accessed by an AI model. “Our job as solutions providers is to simplify our customers’ lives,” he said. “AI is great at helping you prioritize certain initiatives and quantify this thing here versus this thing here. But the person ultimately needs to be making the decision.” Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Supply chain

Tech vendors ready themselves to help importers wage cost reduction war

<div class="phx-topic abstract-wrapper">The Israel-based carrier said the volume declines were led by its cross-Suez and trans-Atlantic services, which dropped 13% and 10%, respectively, from 2024.</div>

The Israel-based carrier said the volume declines were led by its cross-Suez and trans-Atlantic services, which dropped 13% and 10%, respectively, from 2024.

<div class="phx-topic">Zim Integrated Shipping Services saw its container volumes in 2025 drop for the first time in two years, but managed to beat Wall Street estimates for its fourth quarter earnings. The Israel-based ocean carrier said Monday it ended 2025 handling total volumes of 3.6 million TEUs, a 2.3% year-on-year drop and its first full-year decline since 2023. The declines were largely led by Zim’s cross-Suez and trans-Atlantic services, which dropped 13% and 10%, respectively, from 2024. Trans-Pacific business, which accounts for 43% of Zim’s volumes, fell 1.6%. The company’s intra-Asia and Latin America business were the standouts in 2025, posting gains of 4% and 2%, respectively. The average freight rate Zim saw during the fourth quarter was $1,333 per FEU, down 29% from a year earlier. Despite the drop, Zim reported fourth-quarter earnings of 32 cents per share, well above the consensus analyst estimate of a 52 cents per share loss, according to S&amp;P Capital IQ, a sister company of the Journal of Commerce. Fourth-quarter revenue of $1.48 billion came in about $50 million below analysts’ estimates. Zim, <a href="https://www.joc.com/article/hapag-lloyd-bolsters-fleet-with-42-billion-deal-to-acquire-zim-6170540">which is being acquired by Hapag-Lloyd</a>, said it would not provide guidance for 2026 nor host a conference call due to the pending acquisition. But Chief Executive Eli Glickman said in the carrier’s earnings statement that Zim expects “continued pressure on freight rates.” During 2025, Zim signed long-term charter agreements for 36 newbuild container ships with capacities between 3,000 TEUs and 12,000 TEUs. The newbuilds will provide a total of 250,000 TEUs in additional capacity, with the first deliveries expected in the second half of 2026. The carrier said it ended 2025 with a total of 115 container ships of 707,000 TEUs in total capacity. It expects 13 of those ships to roll off their charters this year, and another 17 in 2027. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Zim Integrated Shipping Services saw its container volumes in 2025 drop for the first time in two years, but managed to beat Wall Street estimates for its fourth quarter earnings. The Israel-based ocean carrier said Monday it ended 2025 handling total volumes of 3.6 million TEUs, a 2.3% year-on-year drop and its first full-year decline since 2023. The declines were largely led by Zim’s cross-Suez and trans-Atlantic services, which dropped 13% and 10%, respectively, from 2024. Trans-Pacific business, which accounts for 43% of Zim’s volumes, fell 1.6%. The company’s intra-Asia and Latin America business were the standouts in 2025, posting gains of 4% and 2%, respectively. The average freight rate Zim saw during the fourth quarter was $1,333 per FEU, down 29% from a year earlier. Despite the drop, Zim reported fourth-quarter earnings of 32 cents per share, well above the consensus analyst estimate of a 52 cents per share loss, according to S&P Capital IQ, a sister company of the Journal of Commerce. Fourth-quarter revenue of $1.48 billion came in about $50 million below analysts’ estimates. Zim, which is being acquired by Hapag-Lloyd , said it would not provide guidance for 2026 nor host a conference call due to the pending acquisition. But Chief Executive Eli Glickman said in the carrier’s earnings statement that Zim expects “continued pressure on freight rates.” During 2025, Zim signed long-term charter agreements for 36 newbuild container ships with capacities between 3,000 TEUs and 12,000 TEUs. The newbuilds will provide a total of 250,000 TEUs in additional capacity, with the first deliveries expected in the second half of 2026. The carrier said it ended 2025 with a total of 115 container ships of 707,000 TEUs in total capacity. It expects 13 of those ships to roll off their charters this year, and another 17 in 2027. Contact Michael Angell at michael.angell@spglobal.com .

Container Shipping News

Zim’s fourth-quarter earnings beat estimates despite drop in rates, volume

<div class="phx-topic abstract-wrapper">Hutchison-owned Panama Ports Company had its 28-year concession to manage and operate the Balboa and Cristóbal terminals nullified by Panama’s Supreme Court on Jan 29. </div>

Hutchison-owned Panama Ports Company had its 28-year concession to manage and operate the Balboa and Cristóbal terminals nullified by Panama’s Supreme Court on Jan 29.

<div class="phx-topic">Panama Ports Company is seeking more than $2 billion in damages in its international arbitration claim against Panama after the government canceled its long-held operating concession and seized control of the Balboa and Cristóbal marine terminals last month. PPC, a subsidiary of Hong Kong-headquartered conglomerate CK Hutchison Holdings, said it is also taking legal action to recover property, equipment and documents removed when <a href="https://www.joc.com/article/maersk-msc-units-begin-interim-management-of-panama-canal-terminals-6175167">the government took control of the terminals on Feb. 23</a>. Action is being taken against both the Panamanian government and the Panama Maritime Authority (PMA). The details of the arbitration claim were announced in a PPC statement Friday relayed by Hutchison, which has a 90% stake in PPC. The Panama company had its 28-year concession to manage and operate the Balboa and Cristóbal terminals nullified by Panama’s Supreme Court on Jan 29. <h3>Operations returning to normal </h3>Separately, the PMA confirmed operations at the terminals are returning to normal after Maersk’s APM Terminals and Mediterranean Shipping Co.’s Terminal Investments Limited (TiL) were appointed temporary operators of Balboa and Cristóbal, respectively. Both assignments are due to last 18 months. Minister for Canal Affairs José Ramón Icaza said new operating systems were online and being tested, while Balboa is accepting export cargo, empty containers and rolling stock. Icaza said about 526 former PPC staff out of a total workforce of 1,200 at both terminals had been replaced, over 200 at Balboa and 326 at Cristóbal. The government had also reached new agreements with two out of four labor unions at the ports. Hutchison’s operation of the two ports through PPC had been the focus of a highly charged geopolitical spat between the Trump administration and China for more than a year. That was highlighted again during President Donald Trump’s Shield of Americas summit on Saturday in Miami with 12 Latin American leaders, including Panama President Jose Raul Mulino. Trump said the US would “not allow hostile foreign influence to establish itself in this hemisphere, and that includes the Panama Canal.” Closer commercial relationships with US companies were highlighted in a separate meeting Saturday between Mulino and US Secretary of State Marco Rubio. “US companies will begin to have greater participation in bidding processes in Panama in this new era of relations with the United States,” Rubio said, without specifically mentioning the awarding of new terminal concessions for Balboa and Cristóbal. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Panama Ports Company is seeking more than $2 billion in damages in its international arbitration claim against Panama after the government canceled its long-held operating concession and seized control of the Balboa and Cristóbal marine terminals last month. PPC, a subsidiary of Hong Kong-headquartered conglomerate CK Hutchison Holdings, said it is also taking legal action to recover property, equipment and documents removed when the government took control of the terminals on Feb. 23 . Action is being taken against both the Panamanian government and the Panama Maritime Authority (PMA). The details of the arbitration claim were announced in a PPC statement Friday relayed by Hutchison, which has a 90% stake in PPC. The Panama company had its 28-year concession to manage and operate the Balboa and Cristóbal terminals nullified by Panama’s Supreme Court on Jan 29. Operations returning to normal Separately, the PMA confirmed operations at the terminals are returning to normal after Maersk’s APM Terminals and Mediterranean Shipping Co.’s Terminal Investments Limited (TiL) were appointed temporary operators of Balboa and Cristóbal, respectively. Both assignments are due to last 18 months. Minister for Canal Affairs José Ramón Icaza said new operating systems were online and being tested, while Balboa is accepting export cargo, empty containers and rolling stock. Icaza said about 526 former PPC staff out of a total workforce of 1,200 at both terminals had been replaced, over 200 at Balboa and 326 at Cristóbal. The government had also reached new agreements with two out of four labor unions at the ports. Hutchison’s operation of the two ports through PPC had been the focus of a highly charged geopolitical spat between the Trump administration and China for more than a year. That was highlighted again during President Donald Trump’s Shield of Americas summit on Saturday in Miami with 12 Latin American leaders, including Panama President Jose Raul Mulino. Trump said the US would “not allow hostile foreign influence to establish itself in this hemisphere, and that includes the Panama Canal.” Closer commercial relationships with US companies were highlighted in a separate meeting Saturday between Mulino and US Secretary of State Marco Rubio. “US companies will begin to have greater participation in bidding processes in Panama in this new era of relations with the United States,” Rubio said, without specifically mentioning the awarding of new terminal concessions for Balboa and Cristóbal. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

International ports

Hutchison seeks $2 billion in damages from Panama after terminal deal canceled

<div class="phx-topic abstract-wrapper">The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol over the weekend as part of an alternative fuel partnership with the world’s largest container port.</div>

The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol over the weekend as part of an alternative fuel partnership with the world’s largest container port.

<div class="phx-topic">CMA CGM completed its first ever biomethanol bunkering operation over the weekend at Shanghai’s Yangshan terminal, setting a record for the largest biomethanol bunkering move at a Chinese port. The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol from supplier Shanghai Electric Group, CMA CGM said in a statement Monday. “The completion of China’s largest single biomethanol bunkering operation with CMA CGM marks a significant leap in Shanghai Port’s biomethanol bunkering capacity,” Luo Wenbin, managing director of SIPG Energy, part of the Shanghai International Port Group (SIPG), said in the statement. The Marseilles-based carrier is preparing to operate about 200 dual-fuel container vessels by 2031, all capable of running on low-carbon energy such as bio- and e-liquified natural gas as well as bio- and e-methanol. Farid Trad, vice president of group energy transition at CMA CGM, said the bunkering of Osmium marked “a defining moment in [the carrier’s] decarbonization journey.” “Together with SIPG Energy, we are demonstrating that cleaner, low-carbon shipping is no longer an aspiration, but a reality,” Trad said in the statement. Shanghai Port is developing its position as a global sustainable energy bunkering hub, and CMA CGM’s long-standing collaboration with partners SIPG Energy and Shanghai Electric Group include a long-term LNG bunkering partnership with SIPG and the framework agreement on long-term biomethanol supply. Biomethanol is a low-carbon fuel produced from renewable or waste-based biomass that can offer lifecycle greenhouse gas emission reductions of more than 65% compared with conventional marine fuels. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="2251ddd4-2c3e-4c58-a3f0-f1cd0ba3b088"></dynamic-object></div>Despite uncertainties caused by the International Maritime Organization’s decision last October <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">to delay the adoption of its net-zero framework</a> for a year, the container shipping industry has continued to invest heavily in dual-fuel vessels and bunkering infrastructure. Data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that 6.44 million TEUs of capacity for LNG dual-fuel ships are currently on order, compared with 1.6 million TEUs of methanol-capable vessels. Industry coalition SEA-LNG estimated in a recent report that investment in LNG dual-fuel vessels and associated fuel supply chains over the past 10 years has amounted to more than $150 billion. A large portion of that is going into the supply side, with fuel availability at scale crucial for the global shipping industry. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

CMA CGM completed its first ever biomethanol bunkering operation over the weekend at Shanghai’s Yangshan terminal, setting a record for the largest biomethanol bunkering move at a Chinese port. The newly delivered 13,000-TEU CMA CGM Osmium was refueled with 3,643 tons of biomethanol from supplier Shanghai Electric Group, CMA CGM said in a statement Monday. “The completion of China’s largest single biomethanol bunkering operation with CMA CGM marks a significant leap in Shanghai Port’s biomethanol bunkering capacity,” Luo Wenbin, managing director of SIPG Energy, part of the Shanghai International Port Group (SIPG), said in the statement. The Marseilles-based carrier is preparing to operate about 200 dual-fuel container vessels by 2031, all capable of running on low-carbon energy such as bio- and e-liquified natural gas as well as bio- and e-methanol. Farid Trad, vice president of group energy transition at CMA CGM, said the bunkering of Osmium marked “a defining moment in [the carrier’s] decarbonization journey.” “Together with SIPG Energy, we are demonstrating that cleaner, low-carbon shipping is no longer an aspiration, but a reality,” Trad said in the statement. Shanghai Port is developing its position as a global sustainable energy bunkering hub, and CMA CGM’s long-standing collaboration with partners SIPG Energy and Shanghai Electric Group include a long-term LNG bunkering partnership with SIPG and the framework agreement on long-term biomethanol supply. Biomethanol is a low-carbon fuel produced from renewable or waste-based biomass that can offer lifecycle greenhouse gas emission reductions of more than 65% compared with conventional marine fuels. Despite uncertainties caused by the International Maritime Organization’s decision last October to delay the adoption of its net-zero framework for a year, the container shipping industry has continued to invest heavily in dual-fuel vessels and bunkering infrastructure. Data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that 6.44 million TEUs of capacity for LNG dual-fuel ships are currently on order, compared with 1.6 million TEUs of methanol-capable vessels. Industry coalition SEA-LNG estimated in a recent report that investment in LNG dual-fuel vessels and associated fuel supply chains over the past 10 years has amounted to more than $150 billion. A large portion of that is going into the supply side, with fuel availability at scale crucial for the global shipping industry. Contact Greg Knowler at greg.knowler@spglobal.com .

CMA CGM sets Chinese volume record with Shanghai biomethanol bunkering

<div class="phx-topic abstract-wrapper">The carrier said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook this year.</div>

The carrier said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook this year.

<div class="phx-topic">Container shipping is expected to see moderate growth this year, although developments in the Middle East will be a key factor impacting the market and freight rates, CMA CGM said Friday. The carrier, in a statement announcing its fourth-quarter and full-year 2025 results, said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook. “In 2026, in a context of heightened tensions, particularly in the Middle East, our priority is clear: protecting our teams and adapting our operations to ensure our customers continue to receive a reliable and high-quality service,” Rodolphe Saadé, CMA CGM chairman and CEO, said in the statement. “At the same time, we are pursuing our development, continuing to invest in our industrial assets and to strengthen our global network.” While CMA CGM saw container volumes climb in the fourth quarter and for the year, revenues and profitability at the group and shipping division level were hit by the drop in freight rates. The Middle East conflict and the ensuing disruption could prove a tailwind for stronger container shipping pricing globally in 2026. The company said group net profit dropped 58% to $2.3 billion last year from $5.7 billion in the prior year. Revenue slipped 2% to $54 billion. Revenue at its shipping division fell 6% to $34.3 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 30% to $7.9 billion last year. The drop in profitability was even more marked in the fourth quarter after EBITDA slumped 48% to $1.5 billion. That came even though CMA CGM said it “outperformed” the wider market with a 5.3% increase in container volumes in the fourth quarter, to 6.3 million TEUs. Volumes rose 3% to 24.2 million TEUs for the full year, though average revenue per TEU fell 9% to $1,414. CMA CGM’s results showed the 2025 financial damage accelerated in the fourth quarter, similar to the <a href="https://www.joc.com/article/gemini-benefits-face-looming-challenge-from-oversupplied-market-maersk-ceo-6164887">full-year earnings of Maersk</a> and the <a href="https://www.joc.com/article/frontloading-drags-one-to-a-loss-in-its-fiscal-third-quarter-6161263">fiscal third-quarter results of Ocean Network Express</a>. Still, Maritime consultant Drewry has upgraded its financial year 2025 profit forecast from $20 billion to $32 billion following “better-than-expected” third-quarter results from carriers and raised the outlook for 2026 from a $10 billion loss to a $1 billion profit. <h3>Air freight, terminals business show strength </h3>CMA CGM’s logistics division, which includes CEVA Logistics, saw revenues largely unchanged on a quarterly basis and over the full year at about $5 billion and $18 billion, respectively. Full year EBITDA was also stable at $1.7 billion, although it fell 11% to $440 million in the fourth quarter, which the carrier said was due to a volatile market and “challenges affecting the automotive sector.” Air cargo and the carrier’s terminals businesses were the star performers last year, helping CMA CGM’s other activities to post a 48% increase in revenue to $4.3 billion last year. On a quarterly basis, revenue rose 39% to $1.3 billion. EBITDA soared 115% to $958 million in the full year and jumped 74% in the fourth quarter to $278 million. The terminals operation expanded with the acquisition of a 51% stake in Santos Brasil last April. CMA CGM said the air freight business was buoyed with the acquisition last year of freighter airline Air Belgium and the addition of a fifth Boeing 777 freighter deployed on trans-Pacific services. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Container shipping is expected to see moderate growth this year, although developments in the Middle East will be a key factor impacting the market and freight rates, CMA CGM said Friday. The carrier, in a statement announcing its fourth-quarter and full-year 2025 results, said it would rely on the diversification of its activities, network flexibility and financial strength to weather the uncertain outlook. “In 2026, in a context of heightened tensions, particularly in the Middle East, our priority is clear: protecting our teams and adapting our operations to ensure our customers continue to receive a reliable and high-quality service,” Rodolphe Saadé, CMA CGM chairman and CEO, said in the statement. “At the same time, we are pursuing our development, continuing to invest in our industrial assets and to strengthen our global network.” While CMA CGM saw container volumes climb in the fourth quarter and for the year, revenues and profitability at the group and shipping division level were hit by the drop in freight rates. The Middle East conflict and the ensuing disruption could prove a tailwind for stronger container shipping pricing globally in 2026. The company said group net profit dropped 58% to $2.3 billion last year from $5.7 billion in the prior year. Revenue slipped 2% to $54 billion. Revenue at its shipping division fell 6% to $34.3 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 30% to $7.9 billion last year. The drop in profitability was even more marked in the fourth quarter after EBITDA slumped 48% to $1.5 billion. That came even though CMA CGM said it “outperformed” the wider market with a 5.3% increase in container volumes in the fourth quarter, to 6.3 million TEUs. Volumes rose 3% to 24.2 million TEUs for the full year, though average revenue per TEU fell 9% to $1,414. CMA CGM’s results showed the 2025 financial damage accelerated in the fourth quarter, similar to the full-year earnings of Maersk and the fiscal third-quarter results of Ocean Network Express . Still, Maritime consultant Drewry has upgraded its financial year 2025 profit forecast from $20 billion to $32 billion following “better-than-expected” third-quarter results from carriers and raised the outlook for 2026 from a $10 billion loss to a $1 billion profit. Air freight, terminals business show strength CMA CGM’s logistics division, which includes CEVA Logistics, saw revenues largely unchanged on a quarterly basis and over the full year at about $5 billion and $18 billion, respectively. Full year EBITDA was also stable at $1.7 billion, although it fell 11% to $440 million in the fourth quarter, which the carrier said was due to a volatile market and “challenges affecting the automotive sector.” Air cargo and the carrier’s terminals businesses were the star performers last year, helping CMA CGM’s other activities to post a 48% increase in revenue to $4.3 billion last year. On a quarterly basis, revenue rose 39% to $1.3 billion. EBITDA soared 115% to $958 million in the full year and jumped 74% in the fourth quarter to $278 million. The terminals operation expanded with the acquisition of a 51% stake in Santos Brasil last April. CMA CGM said the air freight business was buoyed with the acquisition last year of freighter airline Air Belgium and the addition of a fifth Boeing 777 freighter deployed on trans-Pacific services. Contact Keith Wallis at keithwallis@hotmail.com .

CMA CGM expects moderate growth after 2025 revenue, profit decline

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