<div>In 2007, the last year before the financial crisis, the container industry was at the end of a spectacular multiyear growth spurt. China was at the height of its dominance of manufacturing, container volumes were swelling worldwide, and the system was feeling the pressure of rapid growth in demand. Carriers increasingly complained about port congestion and its impact on productivity at the berth: They needed their ships worked and sent on their way as quickly as possible so they could fetch more Asian cargo for eager consumers.One of the problems with the productivity discussion, however, was its anecdotal nature. Although...

In 2007, the last year before the financial crisis, the container industry was at the end of a spectacular multiyear growth spurt. China was at the height of its dominance of manufacturing, container volumes were swelling worldwide, and the system was feeling the pressure of rapid growth in demand. Carriers increasingly complained about port congestion and its impact on productivity at the berth: They needed their ships worked and sent on their way as quickly as possible so they could fetch more Asian cargo for eager consumers. One of the problems with the productivity discussion, however, was its anecdotal nature. Although carriers and others regularly cited numbers for crane moves per hour and berth productivity at various ports and terminals, there was no independent verification of the data. It was “common knowledge” that U.S. port productivity lagged that of Asia, but no one really knew by how much outside of the occasional one-time academic study or news report. Terminals, meanwhile, were starting to self-declare productivity records — claiming to have handled a “record” number of moves per hour on a particular ship, with no third party to verify the accuracy. Part of the reason for the absence of independent productivity data was the approach. Those seeking such data in the past invariably approached ports and terminals, which, for obvious reasons, were reluctant to divulge such data. The carriers, after all, are their customers. As a result, port productivity studies were few and far between with no consistency that would allow productivity trends to be tracked over time. But facts remained: Despite the lack of a single database, the metrics used by the industry were uniform and apples-to-apples globally. Carriers increasingly viewed productivity in terms of total berth moves per hour, with the higher the number equating to the faster the ship would be on its way to the next port. As fuel prices skyrocketed and slow-steaming became the industry norm, the attention on berth productivity only grew, and so did the need for the data to be collected and presented on a global basis. “There are good statistics available on vessel schedule reliability, and we are seeing a trend toward the same on vessels’ environmental efficiency, both of which are elements that factor into the selection process of our customers and that serve the purpose of improving awareness and competition. The same needs to happen on terminal productivity,” said Tommy Nilsson, head of terminal procurement and strategy at Maersk Line. That’s a challenge we at the JOC took on nearly five years ago. Instead of approaching ports and terminals, we went to those most motivated to see productivity levels rise because of the need to cut fuel costs: the carriers. We approached carriers one by one, asking them to share with us their operating data — the time their ships arrived and departed and the number of moves achieved during that time at the terminals they call globally, down to the individual vessel call. The assurance to the carrier was confidentiality; an exercise of this type wouldn’t be possible if the carriers’ names were made public. But what would come out would be groundbreaking: a continuously updated database of berth productivity — the total moves per hour achieved — broken down by terminal, port, region, ship size and call size. Although carriers don’t know which other carriers are participating, the data is revealing; it shows them if their productivity differs from that of their peers. If it is measurably lower at a specific terminal, the carrier can delve deeper into its operations to figure out why. Maybe it’s holding its ships for valued customers’ cargo, arriving late at the terminal or loading too much breakbulk cargo. Perhaps the terminal isn’t working the ship as fast as it could. Either way, the data illustrates the existence of a problem in need of a solution. The data has other uses as well: Terminals will know productivity levels at other terminals only if they are within the same operating group; if not, until now they have been at the mercy of carriers or the trade press to know how they themselves measure up against their peers. To date, 17 carriers representing a significant majority of the world’s deployed capacity are contributing data to this project. The database contains hundreds of thousands of port calls, covering more than 400 ports and 650 terminals worldwide. This week’s JOC Cover package, and a presentation on productivity to be given at the TPM Conference in March by Ocean Shipping Consultants’ Director Andrew Penfold, is the first public use of the data. We believe the benefits of this data will be enormous. Higher productivity levels mean greater utilization of berth capacity. Faster ship turnarounds mean cost savings through slow-steaming and lower carbon dioxide emissions. Shippers benefit from their cargo moving faster through the system overall. We look forward to sharing more of this data. You can check out where we’re headed at www.joc.com/port_productivity . Peter Tirschwell is senior vice president of strategy at UBM Global Trade. Contact him at ptirschwell@joc.com and follow him at twitter.com/PeterTirschwell .

Marine terminals

Introducing JOC Port Productivity

<div class="phx-topic abstract-wrapper">The closure of the Strait of Hormuz has cut off a major source of global resin supply, teeing up US production to fill in some of the gap.</div>

The closure of the Strait of Hormuz has cut off a major source of global resin supply, teeing up US production to fill in some of the gap.

Feature image

<div class="phx-topic">US resin exports have ticked higher as the war in the Middle East shuts off the largest source of global plastics supply. The sustainability of the export demand, though, hinges largely on the war’s duration and the capacity of North American producers to make more resin.Export container bookings for resins hit 6,191 on March 16, according to maritime visibility provider Vizion. That compares to the roughly 3,500 to 4,500 daily bookings typically made throughout all of 2026 . The first week of March saw the highest number of export resin bookings, 22,653, since the last week of January. Most bookings occur during weekdays.The bookings come as Iran’s attacks on commercial shipping through the Strait of Hormuz have cut off the Middle East’s resin producers from world markets. The Middle East accounts for 15% of global polyethylene supply, the most widely traded type of resin, according to S&amp;P Global Market Intelligence. The disruption in the Gulf has already sent US polyethylene prices higher. Platts, a sister company of the Journal of Commerce within S&amp;P Global, said Thursday that US prices have tripled since Feb. 25, now hovering between $1,268 and $1,290 per metric ton, depending on the grade. “The sharp price increases reflected a fundamental shift in global supply dynamics, as the US emerged as the primary supplier of polyethylene...following the closure of the Strait of Hormuz,” Platts said. Asia and Europe are the most affected by the disruption in Middle East resin exports, Shruthi Vangipuram, an analyst with Wood Mackenzie, told the Journal of Commerce. While both regions have their own resin production, they depend on crude oil feedstocks that have also become more expensive. “Southeast Asia, Japan, South Korea and Taiwan have been impacted the most,” she said. “Producers in the region are struggling to secure feedstock and operating rates in these countries have been severely curtailed.” Vangipuram estimates that resin plants in Asia and Europe are running at only about 70% of their production capacity due to higher prices for feedstock crude oil. In contrast, US producers are running at about 90% utilization. She said US producers can delay maintenance to keep production levels high through the second quarter, but that would still not fill the gap in global demand. “We can flex to 95%, 98% utilization, but it depends on which markets it makes sense to sell to,” Vangipuram said. <h3>Pricing arbitrage favors trans-Atlantic</h3>Export capacity from the US to Asia is ample, according to an executive of a third-party logistics provider, who estimated that backhaul utilization for most ocean carriers hovers around 50%. Spot rates for dry freight to Asia from the US Gulf, which dominates resin exports, are currently running between $500 to $700 for a standard-sized container, while shipping a 20-foot container used primarily for resins runs about 80% of that rate. Trans-Atlantic rates have also been stable, hovering around $1,100 for a 20-foot container from the US Gulf to Northern Europe, according to Xeneta. The rate for shipping a 20-foot container out of the Southeast Atlantic ports has moved higher since the start of the year, going from just over $700 to $757 this week, Xeneta said. <a href="https://www.joc.com/article/ocean-alliance-one-rework-trans-atlantic-services-remove-ships-6169751">Carriers are removing ships and port calls from trans-Atlantic services</a>, tightening up some of the capacity in that market. Outbound US cargo does not face any significant delays with bookings available about two weeks out. The real risk for shippers will be in fuel surcharges that are being applied on global trades due to the Middle East war, as well as a potential general rate increase (GRI) in April. Outside of freight rates and vessel space, Vangipuram said the real driver for US exports will be the direction of local pricing. Asian prices will still need to move higher to attract more US imports. With a four- to six-week lead time for imports, Asian buyers will need to see the conflict drag out before buying from the US. Europe, which is the second-biggest market for US resins after South America, has seen its benchmark polyethylene prices rise by one-third since the end of February. Vangipuram said Europe would likely be the first market to see additional US imports thanks to the much shorter voyage time and the sharper price move. “The arbitrage works out better in the Atlantic than to Asia because of freight rates and shorter shipping times,” Vangipuram said. “We may not see the volume from the US make it into those markets that would appear to need it most.” Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

US resin exports have ticked higher as the war in the Middle East shuts off the largest source of global plastics supply. The sustainability of the export demand, though, hinges largely on the war’s duration and the capacity of North American producers to make more resin. Export container bookings for resins hit 6,191 on March 16, according to maritime visibility provider Vizion. That compares to the roughly 3,500 to 4,500 daily bookings typically made throughout all of 2026 . The first week of March saw the highest number of export resin bookings, 22,653, since the last week of January. Most bookings occur during weekdays. The bookings come as Iran’s attacks on commercial shipping through the Strait of Hormuz have cut off the Middle East’s resin producers from world markets. The Middle East accounts for 15% of global polyethylene supply, the most widely traded type of resin, according to S&P Global Market Intelligence. The disruption in the Gulf has already sent US polyethylene prices higher. Platts, a sister company of the Journal of Commerce within S&P Global, said Thursday that US prices have tripled since Feb. 25, now hovering between $1,268 and $1,290 per metric ton, depending on the grade. “The sharp price increases reflected a fundamental shift in global supply dynamics, as the US emerged as the primary supplier of polyethylene...following the closure of the Strait of Hormuz,” Platts said. Asia and Europe are the most affected by the disruption in Middle East resin exports, Shruthi Vangipuram, an analyst with Wood Mackenzie, told the Journal of Commerce. While both regions have their own resin production, they depend on crude oil feedstocks that have also become more expensive. “Southeast Asia, Japan, South Korea and Taiwan have been impacted the most,” she said. “Producers in the region are struggling to secure feedstock and operating rates in these countries have been severely curtailed.” Vangipuram estimates that resin plants in Asia and Europe are running at only about 70% of their production capacity due to higher prices for feedstock crude oil. In contrast, US producers are running at about 90% utilization. She said US producers can delay maintenance to keep production levels high through the second quarter, but that would still not fill the gap in global demand. “We can flex to 95%, 98% utilization, but it depends on which markets it makes sense to sell to,” Vangipuram said. Pricing arbitrage favors trans-Atlantic Export capacity from the US to Asia is ample, according to an executive of a third-party logistics provider, who estimated that backhaul utilization for most ocean carriers hovers around 50%. Spot rates for dry freight to Asia from the US Gulf, which dominates resin exports, are currently running between $500 to $700 for a standard-sized container, while shipping a 20-foot container used primarily for resins runs about 80% of that rate. Trans-Atlantic rates have also been stable, hovering around $1,100 for a 20-foot container from the US Gulf to Northern Europe, according to Xeneta. The rate for shipping a 20-foot container out of the Southeast Atlantic ports has moved higher since the start of the year, going from just over $700 to $757 this week, Xeneta said. Carriers are removing ships and port calls from trans-Atlantic services , tightening up some of the capacity in that market. Outbound US cargo does not face any significant delays with bookings available about two weeks out. The real risk for shippers will be in fuel surcharges that are being applied on global trades due to the Middle East war, as well as a potential general rate increase (GRI) in April. Outside of freight rates and vessel space, Vangipuram said the real driver for US exports will be the direction of local pricing. Asian prices will still need to move higher to attract more US imports. With a four- to six-week lead time for imports, Asian buyers will need to see the conflict drag out before buying from the US. Europe, which is the second-biggest market for US resins after South America, has seen its benchmark polyethylene prices rise by one-third since the end of February. Vangipuram said Europe would likely be the first market to see additional US imports thanks to the much shorter voyage time and the sharper price move. “The arbitrage works out better in the Atlantic than to Asia because of freight rates and shorter shipping times,” Vangipuram said. “We may not see the volume from the US make it into those markets that would appear to need it most.” Contact Michael Angell at michael.angell@spglobal.com

Trans-Atlantic

Container lines

US resin shippers look to tap new customers amid Iran war

<div class="phx-topic abstract-wrapper">The latest quarterly results show that FedEx’s less-than-truckload division is struggling with lackluster industrial demand, but a change in strategy after a planned June spinoff could provide different results.</div>

The latest quarterly results show that FedEx’s less-than-truckload division is struggling with lackluster industrial demand, but a change in strategy after a planned June spinoff could provide different results.

<div class="phx-topic">Revenue and shipments in FedEx’s less-than-truckload (LTL) division fell during its fiscal third quarter amid the ongoing sluggish US industrial economy as the parent company prepares for a planned spinoff in June of the LTL business. Revenue for FedEx Freight dropped 5% year over year to $1.99 billion between December and February, the company’s fiscal third quarter, while shipments were down 6%. Revenue per shipment, however, increased 1% year over year. “It’s a broader LTL market that we’re in, and there’s nothing necessarily unique about our volumes,” Marshall Witt, CFO of FedEx Freight, said on an earnings call late Thursday. “We need to continue to improve our yield growth...we will expect to continue to improve our customer experience…we expect to continue to be disciplined in our pricing contract renewals.” Fourth-quarter and full fiscal year revenue for LTL will likely be down by low-single percentages year over year, according to the company. More attention on the call, however, was paid to the FedEx Freight spinoff and an investor day on April 8 during which the company will outline a new strategy for LTL focused on yield over volume. As a standalone company, FedEx Freight might reject low-margin or unprofitable freight from shippers who previously used LTL as part of a larger commercial relationship with FedEx’s parcel, logistics, and airfreight divisions. The freight division has hired its sales and operation teams, created new computer systems, and secured a $3.7 billion debt offering in January. “We look at those as good cost incurrences primarily because they’re related to building our IT infrastructure,” Witt said. “Also building out our talent, and that represents both folks that are coming on board externally and folks that are transitioning over from FedEx Corporation. Having those folks and platforms being built now and being ready to address the spin off and the standalone of FedEx Freight is a positive outcome for us.” FedEx also pointed to the possibility that the growth in data centers will generate freight volumes. “We know that as data centers expand, that yes, there will be some LTL business for my friends over at [FedEx] Freight, but in addition, there is going to be some parcel business,” Brie Carere, FedEx’s chief commercial officer, said on Thursday’s call. <h3>Small encouraging signs </h3>There are some small encouraging signs for the less-than-truckload industry overall. The Institute for Supply Chain Management reports that the Purchasing Managers Index for manufacturing was in expansion territory in February, at 52.4, for a second consecutive month after spending most of 2025 in contraction territory. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ccfbe9dd-30e0-4ab0-b6bd-a4eed3591ca5"></dynamic-object></div>In an intra-quarter update, ArcBest, parent of LTL provider ABF Freight System, reported that revenue per day was up 1% and shipments up 2% year over year in January and February combined. XPO reported shipments per day grew 3% year over year in February, although it did not disclose revenue. But Old Dominion Freight Lines reported revenue per day declined 3.3% and shipments fell 7% in February. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

Revenue and shipments in FedEx’s less-than-truckload (LTL) division fell during its fiscal third quarter amid the ongoing sluggish US industrial economy as the parent company prepares for a planned spinoff in June of the LTL business. Revenue for FedEx Freight dropped 5% year over year to $1.99 billion between December and February, the company’s fiscal third quarter, while shipments were down 6%. Revenue per shipment, however, increased 1% year over year. “It’s a broader LTL market that we’re in, and there’s nothing necessarily unique about our volumes,” Marshall Witt, CFO of FedEx Freight, said on an earnings call late Thursday. “We need to continue to improve our yield growth...we will expect to continue to improve our customer experience…we expect to continue to be disciplined in our pricing contract renewals.” Fourth-quarter and full fiscal year revenue for LTL will likely be down by low-single percentages year over year, according to the company. More attention on the call, however, was paid to the FedEx Freight spinoff and an investor day on April 8 during which the company will outline a new strategy for LTL focused on yield over volume. As a standalone company, FedEx Freight might reject low-margin or unprofitable freight from shippers who previously used LTL as part of a larger commercial relationship with FedEx’s parcel, logistics, and airfreight divisions. The freight division has hired its sales and operation teams, created new computer systems, and secured a $3.7 billion debt offering in January. “We look at those as good cost incurrences primarily because they’re related to building our IT infrastructure,” Witt said. “Also building out our talent, and that represents both folks that are coming on board externally and folks that are transitioning over from FedEx Corporation. Having those folks and platforms being built now and being ready to address the spin off and the standalone of FedEx Freight is a positive outcome for us.” FedEx also pointed to the possibility that the growth in data centers will generate freight volumes. “We know that as data centers expand, that yes, there will be some LTL business for my friends over at [FedEx] Freight, but in addition, there is going to be some parcel business,” Brie Carere, FedEx’s chief commercial officer, said on Thursday’s call. Small encouraging signs There are some small encouraging signs for the less-than-truckload industry overall. The Institute for Supply Chain Management reports that the Purchasing Managers Index for manufacturing was in expansion territory in February, at 52.4, for a second consecutive month after spending most of 2025 in contraction territory. In an intra-quarter update, ArcBest, parent of LTL provider ABF Freight System, reported that revenue per day was up 1% and shipments up 2% year over year in January and February combined. XPO reported shipments per day grew 3% year over year in February, although it did not disclose revenue. But Old Dominion Freight Lines reported revenue per day declined 3.3% and shipments fell 7% in February. Contact Ari Ashe at ari.ashe@spglobal.com

Trucking News

Surface

FedEx Freight battles weak US industrial sector ahead of spinoff

<div class="phx-topic abstract-wrapper">The move comes just days after a joint venture between the two companies was selected as the preferred bidder to develop a $1.8 billion container terminal in Da Nang.</div>

The move comes just days after a joint venture between the two companies was selected as the preferred bidder to develop a $1.8 billion container terminal in Da Nang.

<div class="phx-topic">APM Terminals has taken a 49% stake in Hateco Haiphong International Container Terminal (HHIT) in northern Vietnam, Maersk's port affiliate said Friday, cementing its partnership with Vietnam's Hateco Group after helping to develop the $450 million facility. Financial terms were not disclosed. The move comes <a href="https://www.joc.com/article/apm-terminals-to-build-18-billion-terminal-in-da-nang-6187751">days after a joint venture between the two companies was selected</a> as the preferred bidder to develop a $1.8 billion container terminal in Da Nang, about 350 miles south of Haiphong, and 13 months after the 2.2 million-TEU capacity HHIT became operational. HHIT said the two-berth facility, covering berths 5 and 6 at Haiphong’s Lach Huyen port, has already exceeded initial throughput targets after handling 808,000 TEUs in the 11 months after it became operational last year. APM Terminals said its involvement in developing HHIT included shared best practices on safety, port automation, the use of artificial intelligence and process optimization, and decarbonization. That has helped the terminal achieve an average of 30 container moves per hour and cut truck turnaround times to 16 minutes compared with a market average of 35 minutes, HHIT said. "Since we started operating, we can already see that we are delivering on the highest berth productivities in the Port of Haiphong and have set new records for the automated gate operations as well," Hateco Group Chairman Tran Van Ky said in a statement announcing APM Terminals’ minority stake. “We are looking forward to working closely with APM Terminals in the years to come to further optimize the terminal operations to the benefit of our customers.” Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

APM Terminals has taken a 49% stake in Hateco Haiphong International Container Terminal (HHIT) in northern Vietnam, Maersk's port affiliate said Friday, cementing its partnership with Vietnam's Hateco Group after helping to develop the $450 million facility. Financial terms were not disclosed. The move comes days after a joint venture between the two companies was selected as the preferred bidder to develop a $1.8 billion container terminal in Da Nang, about 350 miles south of Haiphong, and 13 months after the 2.2 million-TEU capacity HHIT became operational. HHIT said the two-berth facility, covering berths 5 and 6 at Haiphong’s Lach Huyen port, has already exceeded initial throughput targets after handling 808,000 TEUs in the 11 months after it became operational last year. APM Terminals said its involvement in developing HHIT included shared best practices on safety, port automation, the use of artificial intelligence and process optimization, and decarbonization. That has helped the terminal achieve an average of 30 container moves per hour and cut truck turnaround times to 16 minutes compared with a market average of 35 minutes, HHIT said. "Since we started operating, we can already see that we are delivering on the highest berth productivities in the Port of Haiphong and have set new records for the automated gate operations as well," Hateco Group Chairman Tran Van Ky said in a statement announcing APM Terminals’ minority stake. “We are looking forward to working closely with APM Terminals in the years to come to further optimize the terminal operations to the benefit of our customers.” Contact Keith Wallis at keithwallis@hotmail.com.

Port News

International ports

Container Shipping News

Maritime

APMT takes 49% stake in Haiphong's HHIT terminal in northern Vietnam

<div class="phx-topic abstract-wrapper">Market sources say an estimated 40,000 to 50,000 TEUs have landed at Indian ports thus far, with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges.</div>

Market sources say an estimated 40,000 to 50,000 TEUs have landed at Indian ports thus far, with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges.

<div class="phx-topic">As Middle East-bound containers sourced from Asia continue to make their way into Indian ports for temporary shelter, container lines are concurrently trying to evacuate them on available shuttle capacity for the final leg of their connection. But carriers are being hobbled by multiple operational and systematic challenges at alternative Persian Gulf gateways, according to industry insights. Market sources say an estimated 40,000 to 50,000 TEUs <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fcarriers-seek-to-offload-stranded-asia-middle-east-containers-at-indian-ports-6185263&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C972081c3ba2f499979eb08de8671235c%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639096017679329220%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=YDeZjDrpaLFB3%2Fkl5wZnogGsDaNv7ZkjIuMMmkD74Pk%3D&amp;reserved=0">have landed at Indian ports thus far</a>, with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges. Sohar in Oman and Fujairah and Khor Fakkan in the United Arab Emirates have become the contingency lifeline for supply chain stakeholders following <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fcarriers-pause-india-middle-east-cargo-bookings-amid-persian-gulf-port-chaos-6179223&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C972081c3ba2f499979eb08de8671235c%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639096017679373330%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=Tmtv68DMGAWGS5a2%2BTCY46RYQCq7O%2F3%2FryQQLFbWW1k%3D&amp;reserved=0">widespread port suspensions and disruptions</a> across the Middle East in the aftermath of hostilities between the US/Israel and Iran. A five million-TEU capacity terminal makes Gulftainer's Khor Fakkan facility the favorite carrier transit option, but limited availability of reefer handling capacity across all the three alternative ports, particularly Fujairah, is a major concern for carriers. “There are only about 120 reefer plug points at Fujairah,” a carrier executive who didn’t want to be identified told the Journal of Commerce. “This severely constrains perishable cargo movements.” Compounding the pain, UAE authorities have directed ocean carriers seeking access at Khor Fakkan to keep the scale of cargo loads meant for cross-border transits significantly low as onward road dispatches massively struggle. According to industry sources, the Khor Fakkan port authority has either turned away some vessels carrying large transshipment volumes or declined offloading permission for those containers. Given that context, vessel operators out of India are understood to have generally been advised to plan or manifest no more than 30% of loads for transshipment discharges. Khor Fakkan is facing severe port congestion and berthing delays, with several vessels forced to wait more than a week — up to 12 days in some cases — to secure discharge windows. Some ad-hoc callers have finally diverted away with waits extending indefinitely, sources said. Additionally, consignees have been given a firm two-day window to clear goods from the UAE docks amid the import rush, with cargo interests facing the risk of hefty port charges on overstaying boxes. Another concern reported by carrier sources is the scramble at terminal gates when importers not holding pre-customs registration status show up to receive goods at the alternative ports. “Unregistered customers turning up for cargo pickups is adding to the chaos,” said another carrier executive. <h3>CMA CGM ‘inland’ fuel fee </h3>CMA CGM is said to have finalized plans to operate three Middle East shuttle sailings out of West India (Nhava Sheva/Mundra) to call at Sohar and Fujairah over the next week in order to clear up its rerouted containers. To that end, JNPA officials at a stakeholder review meeting Thursday reiterated that the port is working proactively with stakeholders to support unexpected transshipment volumes. JNPA officials said the port currently has adequate storage capacity available, with only around 50% of its container holding space presently occupied. At the same time, some congestion signals are emerging. Container truckers serving Nhava Sheva’s PSA terminal (BMCT) on Friday complained to authorities about vehicles experiencing lengthening turn times over the past week, making drivers refuse trips for BMCT, which has handled most of the vessels rerouted to the port. Sunil Vaswani, executive director at the Container Shipping Lines’ Association (India), told the Journal of Commerce carriers are now deploying capacity over the Red Sea in a contingency approach to handle import deliveries into the Middle East, with multimodal solutions for onward movements. That effort is also triggering more cost add-ons for shippers. After raising emergency fuel surcharges previously rolled into the ocean freight side, CMA CGM has announced an “inland” emergency fuel fee for the Middle East beginning March 23, without specifying the amount. “These (fuel cost) increases are impacting not only sea transportation but also inland operations across all modes, affecting the overall cost of moving containers throughout the supply chain,” the Marseille-based liner noted. Meanwhile, Hapag-Lloyd CEO Rolf Habben Jansen, speaking to media in Mumbai this week, said the Middle East crisis has left six Hapag-Lloyd container ships stranded and about 25,000 shipments impacted. He also noted that the carrier continues a pause on acceptance of bookings to and from the Middle East as it remains wary of landside pressures in a war zone. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

As Middle East-bound containers sourced from Asia continue to make their way into Indian ports for temporary shelter, container lines are concurrently trying to evacuate them on available shuttle capacity for the final leg of their connection. But carriers are being hobbled by multiple operational and systematic challenges at alternative Persian Gulf gateways, according to industry insights. Market sources say an estimated 40,000 to 50,000 TEUs have landed at Indian ports thus far , with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges. Sohar in Oman and Fujairah and Khor Fakkan in the United Arab Emirates have become the contingency lifeline for supply chain stakeholders following widespread port suspensions and disruptions across the Middle East in the aftermath of hostilities between the US/Israel and Iran. A five million-TEU capacity terminal makes Gulftainer's Khor Fakkan facility the favorite carrier transit option, but limited availability of reefer handling capacity across all the three alternative ports, particularly Fujairah, is a major concern for carriers. “There are only about 120 reefer plug points at Fujairah,” a carrier executive who didn’t want to be identified told the Journal of Commerce. “This severely constrains perishable cargo movements.” Compounding the pain, UAE authorities have directed ocean carriers seeking access at Khor Fakkan to keep the scale of cargo loads meant for cross-border transits significantly low as onward road dispatches massively struggle. According to industry sources, the Khor Fakkan port authority has either turned away some vessels carrying large transshipment volumes or declined offloading permission for those containers. Given that context, vessel operators out of India are understood to have generally been advised to plan or manifest no more than 30% of loads for transshipment discharges. Khor Fakkan is facing severe port congestion and berthing delays, with several vessels forced to wait more than a week — up to 12 days in some cases — to secure discharge windows. Some ad-hoc callers have finally diverted away with waits extending indefinitely, sources said. Additionally, consignees have been given a firm two-day window to clear goods from the UAE docks amid the import rush, with cargo interests facing the risk of hefty port charges on overstaying boxes. Another concern reported by carrier sources is the scramble at terminal gates when importers not holding pre-customs registration status show up to receive goods at the alternative ports. “Unregistered customers turning up for cargo pickups is adding to the chaos,” said another carrier executive. CMA CGM ‘inland’ fuel fee CMA CGM is said to have finalized plans to operate three Middle East shuttle sailings out of West India (Nhava Sheva/Mundra) to call at Sohar and Fujairah over the next week in order to clear up its rerouted containers. To that end, JNPA officials at a stakeholder review meeting Thursday reiterated that the port is working proactively with stakeholders to support unexpected transshipment volumes. JNPA officials said the port currently has adequate storage capacity available, with only around 50% of its container holding space presently occupied. At the same time, some congestion signals are emerging. Container truckers serving Nhava Sheva’s PSA terminal (BMCT) on Friday complained to authorities about vehicles experiencing lengthening turn times over the past week, making drivers refuse trips for BMCT, which has handled most of the vessels rerouted to the port. Sunil Vaswani, executive director at the Container Shipping Lines’ Association (India), told the Journal of Commerce carriers are now deploying capacity over the Red Sea in a contingency approach to handle import deliveries into the Middle East, with multimodal solutions for onward movements. That effort is also triggering more cost add-ons for shippers. After raising emergency fuel surcharges previously rolled into the ocean freight side, CMA CGM has announced an “inland” emergency fuel fee for the Middle East beginning March 23, without specifying the amount. “These (fuel cost) increases are impacting not only sea transportation but also inland operations across all modes, affecting the overall cost of moving containers throughout the supply chain,” the Marseille-based liner noted. Meanwhile, Hapag-Lloyd CEO Rolf Habben Jansen, speaking to media in Mumbai this week, said the Middle East crisis has left six Hapag-Lloyd container ships stranded and about 25,000 shipments impacted. He also noted that the carrier continues a pause on acceptance of bookings to and from the Middle East as it remains wary of landside pressures in a war zone. Contact Bency Mathew at bencyvmathew@gmail.com.

Hurdles in Persian Gulf test carriers moving stranded Asian cargo from India

<div class="phx-topic abstract-wrapper">China’s largest shipping company commented on current geopolitical events as it released its 2025 financial results, which saw net profits plummet 38%.</div>

China’s largest shipping company commented on current geopolitical events as it released its 2025 financial results, which saw net profits plummet 38%.

<div class="phx-topic">Geopolitical tensions, heightened by war in the Middle East, will accelerate the pace of regionalization in global trade and nearshoring this year while “amplifying the volatility of global supply chains,” Cosco Shipping said Thursday. Momentum for global economic growth is weak, and the external environment for the container shipping industry remains severe, the liner shipping and terminals group said in its 2025 results statement filed with the Shanghai stock exchange. “Looking ahead to 2026, the complexity and uncertainty of the container shipping market will further intensify,” Cosco said. More favorably for global trade, Cosco said emerging economies are showing strong growth potential, cooperation among developing countries is warming and tariff uncertainties have temporarily eased. Cosco specifically highlighted Southeast Asia and Latin America, where demand is strengthening, buoyed by the widening implementation of free trade agreements such as the Regional Comprehensive Economic Partnership in Asia. China’s biggest shipping company said the imbalance between cargo demand and fleet growth will also ease this year, with cargo volumes rising by a “low to moderate 2.5%” compared with 3.8% fleet growth, “the lowest in the past three years.” While this increase in capacity is likely to put downward pressure on freight rates, the impact could be mitigated by port congestion caused by the realignment of carrier alliance networks and the war in the Middle East, the carrier said. <h3>Net profit down 38% in 2025 </h3>Cosco saw mixed results last year, largely reflected by volatile US tariff policy, the deteriorating global economy and the crash in freight rates in the fourth quarter. Overall, net profit fell 38% to $4.3 billion last year while operating revenues slipped 6% to $30.7 billion. Cosco said net profit in the fourth quarter was the lowest of all four quarters, falling 60% to $532 million. The carrier said the worst-performing trades last year were the Asia-Europe and Mediterranean services, which saw an 18% decline in total revenues to $5.3 billion. Revenue from trans-Pacific services fell 17% to $7.7 billion, while revenue from intra-Asia routes was unchanged at $7.6 billion. Cosco saw a better performance from its terminals business, with revenue climbing 11% to $1.7 billion last year, supported by a 6% increase in total throughput to 153 million TEUs. Cosco said it would focus the development of its terminal business on emerging markets and trade lanes to reflect the growing trade between Southeast Asia and Latin America and the increasing importance of ports in areas such as North Africa and India. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Geopolitical tensions, heightened by war in the Middle East, will accelerate the pace of regionalization in global trade and nearshoring this year while “amplifying the volatility of global supply chains,” Cosco Shipping said Thursday. Momentum for global economic growth is weak, and the external environment for the container shipping industry remains severe, the liner shipping and terminals group said in its 2025 results statement filed with the Shanghai stock exchange. “Looking ahead to 2026, the complexity and uncertainty of the container shipping market will further intensify,” Cosco said. More favorably for global trade, Cosco said emerging economies are showing strong growth potential, cooperation among developing countries is warming and tariff uncertainties have temporarily eased. Cosco specifically highlighted Southeast Asia and Latin America, where demand is strengthening, buoyed by the widening implementation of free trade agreements such as the Regional Comprehensive Economic Partnership in Asia. China’s biggest shipping company said the imbalance between cargo demand and fleet growth will also ease this year, with cargo volumes rising by a “low to moderate 2.5%” compared with 3.8% fleet growth, “the lowest in the past three years.” While this increase in capacity is likely to put downward pressure on freight rates, the impact could be mitigated by port congestion caused by the realignment of carrier alliance networks and the war in the Middle East, the carrier said. Net profit down 38% in 2025 Cosco saw mixed results last year, largely reflected by volatile US tariff policy, the deteriorating global economy and the crash in freight rates in the fourth quarter. Overall, net profit fell 38% to $4.3 billion last year while operating revenues slipped 6% to $30.7 billion. Cosco said net profit in the fourth quarter was the lowest of all four quarters, falling 60% to $532 million. The carrier said the worst-performing trades last year were the Asia-Europe and Mediterranean services, which saw an 18% decline in total revenues to $5.3 billion. Revenue from trans-Pacific services fell 17% to $7.7 billion, while revenue from intra-Asia routes was unchanged at $7.6 billion. Cosco saw a better performance from its terminals business, with revenue climbing 11% to $1.7 billion last year, supported by a 6% increase in total throughput to 153 million TEUs. Cosco said it would focus the development of its terminal business on emerging markets and trade lanes to reflect the growing trade between Southeast Asia and Latin America and the increasing importance of ports in areas such as North Africa and India. Contact Keith Wallis at keithwallis@hotmail.com .

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Middle East war will ‘amplify’ volatility in global supply chains: Cosco

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