<div class="phx-topic abstract-wrapper">Bold plans to boost coal exports to Asia through Northwest ports will likely slow intermodal and grain shipments, resulting in higher freight rates and equipment costs, according to a new study commis</div>

Bold plans to boost coal exports to Asia through Northwest ports will likely slow intermodal and grain shipments, resulting in higher freight rates and equipment costs, according to a new study commis

<div>Bold plans to boost coal exports to Asia through Northwest ports will likely slow intermodal and grain shipments, resulting in higher freight rates and equipment costs, according to a new study commissioned by a conservation group.Proposed port terminals in Washington and Oregon that would help support rail shipments of roughly 75 million tons of coal by 2017 and 170 million tons by 2022 face fierce criticism from environmentalists. They argue the creation of harmful emissions through the burning of coal would simply be shifted elsewhere, as <a>tighter U.S. federal regulation and cheaper natural gas push utilities to burn less of...

Bold plans to boost coal exports to Asia through Northwest ports will likely slow intermodal and grain shipments, resulting in higher freight rates and equipment costs, according to a new study commissioned by a conservation group. Proposed port terminals in Washington and Oregon that would help support rail shipments of roughly 75 million tons of coal by 2017 and 170 million tons by 2022 face fierce criticism from environmentalists. They argue the creation of harmful emissions through the burning of coal would simply be shifted elsewhere, as tighter U.S. federal regulation and cheaper natural gas push utilities to burn less of the major fuel source . Proposals to build export terminals at Cherry Point and Longview, Wash., and St. Helen&rsquo;s and Port of Morrow, Ore., come as U.S. railroad coal volume is down 10.7 percent so far this year compared to 2011. Export coal shipments to Asia and Europe have helped offset the weakness in the railroads' top business commodity. The Western Organization of Resource Councils study, conducted by transportation experts Terry Whiteside and G.W. Fauth, warns the flood of export coal shipments could worsen choke points , particularly those in Wyoming, Montana and Washington. State and local transportation agencies would be on the hook for the majority of the billions of dollars in investment needed to handle the increased traffic, the report stated. &ldquo;Existing rail traffic, such as export grain traffic and import and export intermodal container traffic, will likely experience a deterioration of rail service, such as higher transit and cycle times, and will likely incur higher costs in the form of higher freight rates and equipment costs,&rdquo; according to the report. BNSF Railway will likely be able to provide lower rates for export coal shipments and capture the majority of volume, because the railroad&rsquo;s routes are &ldquo;significantly shorter&rdquo; than the connections of rival Union Pacific Railroad. The authors suggest inviting the Surface Transportation Board, the railroad regulatory agency, to conduct an environmental review of the impacts of export coal via Northwest ports. The introduction of legislation that would require STB approval for volume increases and major capacity improvements is another potential approach. Contact Mark Szakonyi at mszakonyi@joc.com . Follow him on Twitter @szakonyi_joc .

Forwarding

North-American rail

Intermodal providers

Report: Northwest Export Coal Boom Could Raise Intermodal Rates

<div class="phx-topic abstract-wrapper">Collaboration with global forwarders is allowing the carrier and its customers to significantly reduce carbon footprints in the difficult-to-monitor area of Scope 3 emissions.</div>

Collaboration with global forwarders is allowing the carrier and its customers to significantly reduce carbon footprints in the difficult-to-monitor area of Scope 3 emissions.

Feature image

<div class="phx-topic">Hapag-Lloyd has been rapidly scaling up the use of second-generation biofuel across its fleet, adding three global forwarders to its book-and-claim emissions-cutting product this year. Kuehne + Nagel, DSV, and Scan Global Logistics have signed up for the carrier’s Scope 3 emissions-reducing Ship Green biofuel service, joining DHL Global Forwarding, which inked a three-year framework agreement last year with Hapag-Lloyd. “Over 1,500 customers have reduced CO2e emissions with us since the introduction of biofuels in the Hapag-Lloyd fleet,” a spokesperson for the carrier told the Journal of Commerce. “The product now serves more than 750 customers globally, with verified emission reductions allocated via a book-and-claim chain of custody, generated through second-generation biofuel use across our fleet,” they added. At a time when the shipping industry is <a href="https://www.joc.com/article/shipping-decarbonization-will-work-best-with-global-rules-msc-ceo-6221271">struggling to push forward global regulations</a> to accelerate investment in alternative fuel technology and scale up infrastructure and production, solutions such as sustainably sourced biofuel that can be easily implemented are playing a crucial role. Hapag-Lloyd has reported rapidly rising demand. It transported 380,000 TEUs last year under its Ship Green biofuel service, up 90% year over year and 2.8% of the total 13.5 million TEUs the carrier handled in 2025. In 2024, 200,000 TEUs were transported under Ship Green, 1.6% of its annual volume. The collaboration with global forwarders is allowing Hapag-Lloyd, its customers and their customers to significantly reduce carbon footprints in the difficult-to-monitor Scope 3 emissions area. Scope 3 emissions are indirect emissions produced within a company’s supply chain. “Our customers are asking for real emission reductions, not promises for 2030 or 2050, but solutions they can use straight away,” Martin Andersen, global head of sustainability and ESG at Scan Global Logistics, said in a statement Wednesday. “By working with Hapag-Lloyd and investing in biofuel, we can reduce emissions from ocean freight right now, without changing how our customers operate.” <h3>Reducing carbon footprints </h3>Scan Global and Hapag-Lloyd will avoid more than 8,500 tons of CO2e emissions on global shipments on a well-to-wake basis, offering a practical and scalable way to reduce emissions without requiring changes to existing logistics operations. Earlier this month, Kuehne + Nagel signed an agreement with Hapag-Lloyd to use the Ship Green product to reduce the carbon footprint of its ocean freight shipments. From April to December, about 3,300 TEUs on the East Asia to North Europe trade lane will be covered under the agreement that is expected to avoid around 2,979 tons of CO2 emissions. “Decarbonizing shipping requires transparency, collaboration and commercially viable solutions,” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, said. “By having strong partnerships, making emissions data transparent, and enabling Scope 3 reductions, we help customers navigate in a credible, market-based way, designed to accelerate the uptake of alternative fuels.” DSV in February <a href="https://www.joc.com/article/hapag-lloyd-inks-new-sustainable-biofuel-deal-with-dsv-6175204">signed a two-year Ship Green framework agreement</a> with Hapag-Lloyd that follows an earlier sustainable fuel collaboration in 2022. Under the new agreement, DSV has contracted a total of 18,000 tons of CO2e emission reductions on a well-to-wake basis. CMA CGM <a href="https://www.joc.com/article/dhl-cma-cgm-unveil-emissions-cutting-biofuel-collaboration-6139423">last year signed a deal with DHL</a> for the joint use of 8,990 mt of recycled waste cooking oil that was expected to cut 25,000 mt of CO2e emissions. The application of the book-and-claim chain of custody mechanism enables customers to claim Scope 3 emission reductions for their transport separately from the physical use of the fuel. It is driving early action in the shipping industry, particularly given that the supply of sustainable marine fuels is currently limited globally and of higher cost. But as demand for the biofuel products increases, so, too, has criticism from environmental campaigners that have expressed concern over the absence of regulatory safeguards and careful management of the full value chain impacts. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd has been rapidly scaling up the use of second-generation biofuel across its fleet, adding three global forwarders to its book-and-claim emissions-cutting product this year. Kuehne + Nagel, DSV, and Scan Global Logistics have signed up for the carrier’s Scope 3 emissions-reducing Ship Green biofuel service, joining DHL Global Forwarding, which inked a three-year framework agreement last year with Hapag-Lloyd. “Over 1,500 customers have reduced CO2e emissions with us since the introduction of biofuels in the Hapag-Lloyd fleet,” a spokesperson for the carrier told the Journal of Commerce. “The product now serves more than 750 customers globally, with verified emission reductions allocated via a book-and-claim chain of custody, generated through second-generation biofuel use across our fleet,” they added. At a time when the shipping industry is struggling to push forward global regulations to accelerate investment in alternative fuel technology and scale up infrastructure and production, solutions such as sustainably sourced biofuel that can be easily implemented are playing a crucial role. Hapag-Lloyd has reported rapidly rising demand. It transported 380,000 TEUs last year under its Ship Green biofuel service, up 90% year over year and 2.8% of the total 13.5 million TEUs the carrier handled in 2025. In 2024, 200,000 TEUs were transported under Ship Green, 1.6% of its annual volume. The collaboration with global forwarders is allowing Hapag-Lloyd, its customers and their customers to significantly reduce carbon footprints in the difficult-to-monitor Scope 3 emissions area. Scope 3 emissions are indirect emissions produced within a company’s supply chain. “Our customers are asking for real emission reductions, not promises for 2030 or 2050, but solutions they can use straight away,” Martin Andersen, global head of sustainability and ESG at Scan Global Logistics, said in a statement Wednesday. “By working with Hapag-Lloyd and investing in biofuel, we can reduce emissions from ocean freight right now, without changing how our customers operate.” Reducing carbon footprints Scan Global and Hapag-Lloyd will avoid more than 8,500 tons of CO2e emissions on global shipments on a well-to-wake basis, offering a practical and scalable way to reduce emissions without requiring changes to existing logistics operations. Earlier this month, Kuehne + Nagel signed an agreement with Hapag-Lloyd to use the Ship Green product to reduce the carbon footprint of its ocean freight shipments. From April to December, about 3,300 TEUs on the East Asia to North Europe trade lane will be covered under the agreement that is expected to avoid around 2,979 tons of CO2 emissions. “Decarbonizing shipping requires transparency, collaboration and commercially viable solutions,” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, said. “By having strong partnerships, making emissions data transparent, and enabling Scope 3 reductions, we help customers navigate in a credible, market-based way, designed to accelerate the uptake of alternative fuels.” DSV in February signed a two-year Ship Green framework agreement with Hapag-Lloyd that follows an earlier sustainable fuel collaboration in 2022. Under the new agreement, DSV has contracted a total of 18,000 tons of CO2e emission reductions on a well-to-wake basis. CMA CGM last year signed a deal with DHL for the joint use of 8,990 mt of recycled waste cooking oil that was expected to cut 25,000 mt of CO2e emissions. The application of the book-and-claim chain of custody mechanism enables customers to claim Scope 3 emission reductions for their transport separately from the physical use of the fuel. It is driving early action in the shipping industry, particularly given that the supply of sustainable marine fuels is currently limited globally and of higher cost. But as demand for the biofuel products increases, so, too, has criticism from environmental campaigners that have expressed concern over the absence of regulatory safeguards and careful management of the full value chain impacts. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Container Shipping News

Maritime

Hapag-Lloyd scales up biofuel transport services with forwarder partners

<div class="phx-topic abstract-wrapper">Port and terminal operators are looking to spend $6.7 billion over the next five years to install cranes and other equipment, an industry survey shows, as Washington is asked to help reshore manufacturing.</div>

Port and terminal operators are looking to spend $6.7 billion over the next five years to install cranes and other equipment, an industry survey shows, as Washington is asked to help reshore manufacturing.

<div class="phx-topic">US ports face an almost $7 billion price tag for ship-to-shore cranes and other container-handling equipment over the next five years, according to the National Association of Waterfront Employers (NAWE). But the spending is hamstrung amid an unclear tariff on Chinese cranes and halting efforts to reshore crane manufacturing to the US. In a survey of 25 port and terminal executives published Tuesday, NAWE said US ports and marine terminals will need more than 100 ship-to-shore (STS) cranes through 2031 to replace aging assets or provide new crane capacity. In total, NAWE expects US ports to need $6.7 billion in equipment over the next five years. “These findings underscore the scale and urgency of the investment challenge facing US ports,” NAWE President Carl Bentzel said in a statement accompanying the survey. “Modern cargo-handling equipment is essential to ensuring terminal productivity, supply chain resilience, and the ability of US ports to compete with international gateways.” New and replacement cranes, along with other cargo-handling equipment, account for $5.1 billion of NAWE’s estimate. In addition, US ports are looking to spend $917 million on rail-mounted stacking cranes and another $790 million for repairing existing STS cranes and equipment. Along with the equipment bill, Bentzel told the Journal of Commerce that equipment is just the “tip of the iceberg” as US ports need to spend many billions more to improve underlying infrastructure including road, rail and maritime access. NAWE released the survey as Congress takes up other infrastructure-related legislation, including the five-year surface transportation reauthorization, which provides federal support for roads and bridges. Bentzel said NAWE is looking to get the attention of both Congress and the White House about how they can help expedite and support those equipment purchases. NAWE members face uncertainty from Washington’s dual mandates of <a href="https://www.joc.com/article/ports-look-to-delay-proposed-us-tariffs-on-chinese-made-cranes-6007628">penalizing China’s maritime industry</a> and <a href="https://www.joc.com/article/congress-eyes-a-tax-credit-for-reshoring-port-crane-manufacturing-6053124">how to reshore critical industries such as crane manufacturing</a>. US ports faced an array of Trump’s tariffs that added <a href="https://www.joc.com/article/ports-america-to-pay-30-tariff-on-china-made-ship-to-shore-crane-6080582">30% to the cost of Chinese-made cranes</a>. In addition, the United States Trade Representative (USTR) levied a 25% penalty on Chinese-made ship-to-shore cranes under a 2024 investigation begun during the Biden administration. Under the Trump administration, the USTR intended to stack another 100% penalty on Chinese STS cranes as of last November. The Supreme Court has knocked down almost all of Trump’s reciprocal tariffs against China, <a href="https://www.joc.com/article/us-china-suspend-reciprocal-port-fees-as-part-of-wider-trade-deal-6105849">while the USTR put a one-year pause on its 100% penalty</a>. Even so, Bentzel said it is unclear what the current tariff regime is for Chinese-made cranes, or if the Trump administration is even enforcing the Biden-era tariffs on cranes. NAWE called on the USTR to clarify the current state of penalties and tariffs on Chinese cranes. “The challenge is we don’t know what is happening with the United States Trade Representative,” Bentzel said. “There’s going to be a short-term need to continue using Chinese manufacturers. But no one in the industry can arrange for the construction and delivery of cranes with a one-year suspension.” <h3>Crane makers eye US yards </h3>In the long-term, Bentzel said critical industries such as crane and yard equipment need to be reshored so US ports will not be reliant on Chinese manufacturers. He said the White House and Congress need to begin the process now for reshoring crane manufacturing as it will take two years or more for a domestic manufacturer to start making cranes. NAWE recently added new members including European crane manufacturers Liebherr and Konecranes, along with Japan’s Paceco-Mitsui, as part of its outreach to reshore crane manufacturing, Bentzel said. Germany’s Kunz and Phoenix-based Stafford Port Cranes are also looking to join NAWE, he added. Sources have told the Journal of Commerce that Liebherr has inquired about laydown yard space on or near US ports to use for assembling and distributing cranes. Liebherr could not be reached for comment. Bentzel said the companies are only making soft inquiries now as they await clarity about long-term US trade policy on STS cranes. <a href="https://www.joc.com/article/white-house-counters-risk-of-chinese-port-cranes-with-20-billion-for-us-sourcing-5200230">The Biden administration made $20 billion in infrastructure funding available</a> for STS crane makers to set up US operations. At the time, Paceco said it would invest in a new US facility, but it never went forward due to market uncertainty, Bentzel said. “NAWE’s members are supporting the onshoring of port cranes,” he said. “Those companies are doing a lot of assessing and waiting because the penalties on Chinese-made cranes aren’t clear.” With the Trump administration <a href="https://www.joc.com/article/trump-signs-order-for-us-shipbuilding-but-stays-mute-on-port-fees-5980539">looking to revive</a> <a href="https://www.joc.com/article/trump-administration-unveils-us-maritime-revitalization-action-plan-6169752">the US maritime industry</a>, Bentzel said now is the time to support US-made cranes. NAWE’s capital spending survey also sets the table for these companies on their addressable US market, he added. NAWE plans to lobby Congress to have funding made available to domestic crane manufacturers under the Defense Production Act, which supports industries critical to national security, or the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America (SHIPS) Act, Congress’ broad bill to incentivize the reshoring of ship building and crane-making. “Our argument is that if we don’t have this equipment and don’t create this domestic market, this will impact the nation’s fortunes in the long-term,” Bentzel said. “We believe without some level of assistance and direction, it will take us two years to get any domestic production going.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

US ports face an almost $7 billion price tag for ship-to-shore cranes and other container-handling equipment over the next five years, according to the National Association of Waterfront Employers (NAWE). But the spending is hamstrung amid an unclear tariff on Chinese cranes and halting efforts to reshore crane manufacturing to the US. In a survey of 25 port and terminal executives published Tuesday, NAWE said US ports and marine terminals will need more than 100 ship-to-shore (STS) cranes through 2031 to replace aging assets or provide new crane capacity. In total, NAWE expects US ports to need $6.7 billion in equipment over the next five years. “These findings underscore the scale and urgency of the investment challenge facing US ports,” NAWE President Carl Bentzel said in a statement accompanying the survey. “Modern cargo-handling equipment is essential to ensuring terminal productivity, supply chain resilience, and the ability of US ports to compete with international gateways.” New and replacement cranes, along with other cargo-handling equipment, account for $5.1 billion of NAWE’s estimate. In addition, US ports are looking to spend $917 million on rail-mounted stacking cranes and another $790 million for repairing existing STS cranes and equipment. Along with the equipment bill, Bentzel told the Journal of Commerce that equipment is just the “tip of the iceberg” as US ports need to spend many billions more to improve underlying infrastructure including road, rail and maritime access. NAWE released the survey as Congress takes up other infrastructure-related legislation, including the five-year surface transportation reauthorization, which provides federal support for roads and bridges. Bentzel said NAWE is looking to get the attention of both Congress and the White House about how they can help expedite and support those equipment purchases. NAWE members face uncertainty from Washington’s dual mandates of penalizing China’s maritime industry and how to reshore critical industries such as crane manufacturing . US ports faced an array of Trump’s tariffs that added 30% to the cost of Chinese-made cranes . In addition, the United States Trade Representative (USTR) levied a 25% penalty on Chinese-made ship-to-shore cranes under a 2024 investigation begun during the Biden administration. Under the Trump administration, the USTR intended to stack another 100% penalty on Chinese STS cranes as of last November. The Supreme Court has knocked down almost all of Trump’s reciprocal tariffs against China, while the USTR put a one-year pause on its 100% penalty . Even so, Bentzel said it is unclear what the current tariff regime is for Chinese-made cranes, or if the Trump administration is even enforcing the Biden-era tariffs on cranes. NAWE called on the USTR to clarify the current state of penalties and tariffs on Chinese cranes. “The challenge is we don’t know what is happening with the United States Trade Representative,” Bentzel said. “There’s going to be a short-term need to continue using Chinese manufacturers. But no one in the industry can arrange for the construction and delivery of cranes with a one-year suspension.” Crane makers eye US yards In the long-term, Bentzel said critical industries such as crane and yard equipment need to be reshored so US ports will not be reliant on Chinese manufacturers. He said the White House and Congress need to begin the process now for reshoring crane manufacturing as it will take two years or more for a domestic manufacturer to start making cranes. NAWE recently added new members including European crane manufacturers Liebherr and Konecranes, along with Japan’s Paceco-Mitsui, as part of its outreach to reshore crane manufacturing, Bentzel said. Germany’s Kunz and Phoenix-based Stafford Port Cranes are also looking to join NAWE, he added. Sources have told the Journal of Commerce that Liebherr has inquired about laydown yard space on or near US ports to use for assembling and distributing cranes. Liebherr could not be reached for comment. Bentzel said the companies are only making soft inquiries now as they await clarity about long-term US trade policy on STS cranes. The Biden administration made $20 billion in infrastructure funding available for STS crane makers to set up US operations. At the time, Paceco said it would invest in a new US facility, but it never went forward due to market uncertainty, Bentzel said. “NAWE’s members are supporting the onshoring of port cranes,” he said. “Those companies are doing a lot of assessing and waiting because the penalties on Chinese-made cranes aren’t clear.” With the Trump administration looking to revive the US maritime industry , Bentzel said now is the time to support US-made cranes. NAWE’s capital spending survey also sets the table for these companies on their addressable US market, he added. NAWE plans to lobby Congress to have funding made available to domestic crane manufacturers under the Defense Production Act, which supports industries critical to national security, or the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America (SHIPS) Act, Congress’ broad bill to incentivize the reshoring of ship building and crane-making. “Our argument is that if we don’t have this equipment and don’t create this domestic market, this will impact the nation’s fortunes in the long-term,” Bentzel said. “We believe without some level of assistance and direction, it will take us two years to get any domestic production going.” Contact Michael Angell at michael.angell@spglobal.com .

Port News

Transport, Trade and Regulation News

Port infrastructure

North American ports

US ports outline spending goals in push to reshore crane making

<div class="phx-topic abstract-wrapper">But court filings show that even after restructuring, the company is likely to operate with thin margins and a relatively modest cash cushion. </div>

But court filings show that even after restructuring, the company is likely to operate with thin margins and a relatively modest cash cushion.

<div class="phx-topic">STG Logistics has won court approval to emerge from Chapter 11 bankruptcy in the coming weeks, clearing the way for a reorganization that will eliminate more than $1 billion in debt and close the legal battle that has hung over the transloading, drayage and intermodal provider since January. The plan, approved Monday by the US Bankruptcy Court for the District of New Jersey, also releases the final $25 million of a previously committed $150 million capital infusion. Ownership of the reorganized company will go to a lender group led by affiliates of Fortress Investment Group, Fidelity Management &amp; Research Company, and Invesco Senior Secured Management. “[This] puts our company on a clear path to emerge from Chapter 11 with a strong financial foundation and significantly deleveraged capital structure,” STG’s CEO Geoff Anderman said in a statement. The company has benefited from a rebound in domestic rail volumes after nearly four years of weak demand, which will stabilize the business after financial pressures pushed it into bankruptcy earlier this year. That rebound included an <a href="https://www.joc.com/article/soaring-truck-rates-power-major-rebound-in-domestic-intermodal-volume-6208736">unusually strong March</a> in which railroads hauled the third-most domestic containers ever, according to the Intermodal Association of North America. STG has been able to grow its business out of Southern California on a year-over-year basis, according to visibility provider RailState, although the exact figures are estimates. For intermodal, the biggest operating detail is the container fleet. STG reached an agreement to restructure leases on 11,500 of its 15,000 containers, allowing it to avoid selling equipment as part of the bankruptcy process. <h3>Revenue projected to rise at 6.9% CAGR through 2030 </h3>Court filings show that even after restructuring, STG is likely to operate with thin margins and a relatively modest cash cushion. The company expects revenue to rise at a 6.9% compound annual growth rate through 2030, according to a filing with the bankruptcy court. Even so, it projects earnings before interest, taxes, depreciation and amortization (EBITA) of only about 4% of revenue, a relatively thin margin. By comparison, J.B. Hunt Transport Services and Schneider National, who also handle intermodal, transloading and drayage, posted companywide first-quarter EBITDA margins of approximately 10% to 13%. STG’s projected cash balance is stronger than in January but remains tight. The company had about $37 million in cash when it filed for Chapter 11 in January, below the nearly $50 million threshold its advisers said was needed to cover about two weeks of operations. That threshold came from STG’s old debt agreements and will no longer apply after bankruptcy. Even so, projected cash on hand of $66 million in 2026, rising to an expected $85 million by 2030, suggests the company will still have a limited cushion. That will still leave STG exposed to swings in freight demand, insurance claims, and service disruptions in a highly cyclical businesses. Schneider, by comparison, ended the first quarter of 2026 with $227.8 million in cash on hand. For now, STG has bought itself time, a cleaner balance sheet and the backing of large financial institutions. Whether that amounts to a permanent resurgence rather than a temporary reprieve will depend on how much demand there is for intermodal, transloading, warehousing and drayage in the coming years. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

STG Logistics has won court approval to emerge from Chapter 11 bankruptcy in the coming weeks, clearing the way for a reorganization that will eliminate more than $1 billion in debt and close the legal battle that has hung over the transloading, drayage and intermodal provider since January. The plan, approved Monday by the US Bankruptcy Court for the District of New Jersey, also releases the final $25 million of a previously committed $150 million capital infusion. Ownership of the reorganized company will go to a lender group led by affiliates of Fortress Investment Group, Fidelity Management & Research Company, and Invesco Senior Secured Management. “[This] puts our company on a clear path to emerge from Chapter 11 with a strong financial foundation and significantly deleveraged capital structure,” STG’s CEO Geoff Anderman said in a statement. The company has benefited from a rebound in domestic rail volumes after nearly four years of weak demand, which will stabilize the business after financial pressures pushed it into bankruptcy earlier this year. That rebound included an unusually strong March in which railroads hauled the third-most domestic containers ever, according to the Intermodal Association of North America. STG has been able to grow its business out of Southern California on a year-over-year basis, according to visibility provider RailState, although the exact figures are estimates. For intermodal, the biggest operating detail is the container fleet. STG reached an agreement to restructure leases on 11,500 of its 15,000 containers, allowing it to avoid selling equipment as part of the bankruptcy process. Revenue projected to rise at 6.9% CAGR through 2030 Court filings show that even after restructuring, STG is likely to operate with thin margins and a relatively modest cash cushion. The company expects revenue to rise at a 6.9% compound annual growth rate through 2030, according to a filing with the bankruptcy court. Even so, it projects earnings before interest, taxes, depreciation and amortization (EBITA) of only about 4% of revenue, a relatively thin margin. By comparison, J.B. Hunt Transport Services and Schneider National, who also handle intermodal, transloading and drayage, posted companywide first-quarter EBITDA margins of approximately 10% to 13%. STG’s projected cash balance is stronger than in January but remains tight. The company had about $37 million in cash when it filed for Chapter 11 in January, below the nearly $50 million threshold its advisers said was needed to cover about two weeks of operations. That threshold came from STG’s old debt agreements and will no longer apply after bankruptcy. Even so, projected cash on hand of $66 million in 2026, rising to an expected $85 million by 2030, suggests the company will still have a limited cushion. That will still leave STG exposed to swings in freight demand, insurance claims, and service disruptions in a highly cyclical businesses. Schneider, by comparison, ended the first quarter of 2026 with $227.8 million in cash on hand. For now, STG has bought itself time, a cleaner balance sheet and the backing of large financial institutions. Whether that amounts to a permanent resurgence rather than a temporary reprieve will depend on how much demand there is for intermodal, transloading, warehousing and drayage in the coming years. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Surface

Bankruptcy court approves STG Logistics’ exit from Chapter 11

<div class="phx-topic abstract-wrapper">The largest forwarding software provider globally adds heft to DCSA’s push to drive electronic standards in the ocean freight industry.</div>

The largest forwarding software provider globally adds heft to DCSA’s push to drive electronic standards in the ocean freight industry.

<div class="phx-topic">WiseTech Global is joining the Digital Container Shipping Association’s (DCSA’s) partnership program to help drive adoption of digital standards in the ocean freight industry, the two announced Tuesday. WiseTech, provider of the industry’s most widely used forwarding software, becomes the most prominent name in a growing list of technology vendors, consultants, third-party logistics providers (3PLs), and implementation specialists that are partners with DCSA under its DCSA+ program. “WiseTech has been among the earliest and most active implementers of DCSA standards since 2019, growing into one of the largest users of DCSA-specification carrier [application program interfaces] in the industry,” DCSA said in a statement. DSCA represents most of the world’s top container shipping companies as they collectively push for digital standards to become more engrained in the industry. Its ocean carrier members are Mediterranean Shipping Co., Hapag-Lloyd, Maersk, CMA CGM, Evergreen, HMM, Yang Ming, Zim Integrated Shipping Services, and PIL. More than 90% of the world’s top 3PLs use WiseTech for freight management, accounting, visibility, or customs compliance. The company <a href="https://www.joc.com/article/wisetech-notches-biggest-acquisition-with-21-billion-deal-for-e2open-6011581">acquired E2open</a>, a platform that provides planning and transportation management software to global shippers, in May 2025, meaning it has connectivity to shipper, ocean carrier and forwarder systems and the data that passes between those entities. “Standardized integrations help our customers and their carrier partners to achieve their goals faster and more effectively by removing friction at critical data handover points,” Ashley Skaanild, WiseTech’s principal advisor for carrier integration and transformation, said in the joint statement. The DCSA+ program has seen a number of members join over the past six months, including IKEA, the program’s first shipper, and Unifeeder, bringing the total number of members to 20. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

WiseTech Global is joining the Digital Container Shipping Association’s (DCSA’s) partnership program to help drive adoption of digital standards in the ocean freight industry, the two announced Tuesday. WiseTech, provider of the industry’s most widely used forwarding software, becomes the most prominent name in a growing list of technology vendors, consultants, third-party logistics providers (3PLs), and implementation specialists that are partners with DCSA under its DCSA+ program. “WiseTech has been among the earliest and most active implementers of DCSA standards since 2019, growing into one of the largest users of DCSA-specification carrier [application program interfaces] in the industry,” DCSA said in a statement. DSCA represents most of the world’s top container shipping companies as they collectively push for digital standards to become more engrained in the industry. Its ocean carrier members are Mediterranean Shipping Co., Hapag-Lloyd, Maersk, CMA CGM, Evergreen, HMM, Yang Ming, Zim Integrated Shipping Services, and PIL. More than 90% of the world’s top 3PLs use WiseTech for freight management, accounting, visibility, or customs compliance. The company acquired E2open , a platform that provides planning and transportation management software to global shippers, in May 2025, meaning it has connectivity to shipper, ocean carrier and forwarder systems and the data that passes between those entities. “Standardized integrations help our customers and their carrier partners to achieve their goals faster and more effectively by removing friction at critical data handover points,” Ashley Skaanild, WiseTech’s principal advisor for carrier integration and transformation, said in the joint statement. The DCSA+ program has seen a number of members join over the past six months, including IKEA, the program’s first shipper, and Unifeeder, bringing the total number of members to 20. Contact Eric Johnson at eric.johnson@spglobal.com .

WiseTech joins partner program of container shipping digital standards group

<div class="phx-topic abstract-wrapper">Richard Kloster joins the STB at an important time for the agency as it reviews the proposed $85 billion merger of Union Pacific and Norfolk Southern, which would be the largest US rail transaction in nearly three decades. </div>

Richard Kloster joins the STB at an important time for the agency as it reviews the proposed $85 billion merger of Union Pacific and Norfolk Southern, which would be the largest US rail transaction in nearly three decades.

<div class="phx-topic">The US Senate has confirmed the appointment of Richard Kloster to the Surface Transportation Board (STB), adding a third Republican to the regulatory body as it moves toward a pivotal early decision in Union Pacific Railroad’s (UP’s) proposed $85 billion acquisition of Norfolk Southern Railway (NS). Kloster was approved Monday as part of a broader package of federal nominees that passed by a 46-43 party line vote. He fills the seat vacated by former STB Chairman Martin Oberman, who retired in May 2024. Kloster’s term runs through Dec. 31, 2028. Kloster has extensive experience as a consultant and board member on several transportation groups, including the National Industrial Transportation League and Railway Supply Institute. His confirmation gives Republicans a 3-1 edge on STB. Kloster joins Chairman Patrick Fuchs and Michelle Schultz, both Republicans, and Democrat Karen Hedlund. One seat remains vacant, but the board does not need all five seats filled to conduct business. Kloster joins STB at an important time for the agency as it reviews what would be the largest US rail transaction in nearly three decades. The regulatory body can rule as soon as May 29 on whether UP has submitted a “complete” application for its proposed merger with NS. The board previously <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">ruled in January</a> that an initial application was “incomplete” and outlined several deficiencies that had to be rectified. UP filed a revised application on April 30. UP and NS argue that their revised application satisfies the STB’s requirements and that the review process should be allowed to continue. But rival railroads BNSF Railway, Canadian Pacific Kansas City, and CSX Transportation have urged the STB to reject the filing again, arguing the second version of the application remains structurally deficient. If the STB deems the second application complete, then the merger proposal can move into a formal review process that would include environmental analysis, public hearings, and broader shipper input. Kloster’s path to the STB was delayed after his nomination failed to reach the Senate floor during the body’s prior session. He was re-nominated in January and advanced to the Senate floor in March on a party line vote. Kloster offered few insights on the UP-NS transaction during his Senate confirmation hearing last fall, saying only he would review the application thoroughly and not take his seat on the STB with a predetermined decision on the proposed merger. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

The US Senate has confirmed the appointment of Richard Kloster to the Surface Transportation Board (STB), adding a third Republican to the regulatory body as it moves toward a pivotal early decision in Union Pacific Railroad’s (UP’s) proposed $85 billion acquisition of Norfolk Southern Railway (NS). Kloster was approved Monday as part of a broader package of federal nominees that passed by a 46-43 party line vote. He fills the seat vacated by former STB Chairman Martin Oberman, who retired in May 2024. Kloster’s term runs through Dec. 31, 2028. Kloster has extensive experience as a consultant and board member on several transportation groups, including the National Industrial Transportation League and Railway Supply Institute. His confirmation gives Republicans a 3-1 edge on STB. Kloster joins Chairman Patrick Fuchs and Michelle Schultz, both Republicans, and Democrat Karen Hedlund. One seat remains vacant, but the board does not need all five seats filled to conduct business. Kloster joins STB at an important time for the agency as it reviews what would be the largest US rail transaction in nearly three decades. The regulatory body can rule as soon as May 29 on whether UP has submitted a “complete” application for its proposed merger with NS. The board previously ruled in January that an initial application was “incomplete” and outlined several deficiencies that had to be rectified. UP filed a revised application on April 30. UP and NS argue that their revised application satisfies the STB’s requirements and that the review process should be allowed to continue. But rival railroads BNSF Railway, Canadian Pacific Kansas City, and CSX Transportation have urged the STB to reject the filing again, arguing the second version of the application remains structurally deficient. If the STB deems the second application complete, then the merger proposal can move into a formal review process that would include environmental analysis, public hearings, and broader shipper input. Kloster’s path to the STB was delayed after his nomination failed to reach the Senate floor during the body’s prior session. He was re-nominated in January and advanced to the Senate floor in March on a party line vote. Kloster offered few insights on the UP-NS transaction during his Senate confirmation hearing last fall, saying only he would review the application thoroughly and not take his seat on the STB with a predetermined decision on the proposed merger. Contact Ari Ashe at ari.ashe@spglobal.com .

Senate approves Kloster for seat on Surface Transportation Board

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