<div class="phx-topic abstract-wrapper">At a time when the U.S. housing market is in its worst condition since home ownership began to boom after World War II, railroads are hauling more lumber in 2011 than they did last year.
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At a time when the U.S. housing market is in its worst condition since home ownership began to boom after World War II, railroads are hauling more lumber in 2011 than they did last year.

<div>At a time when the U.S. housing market is in its worst condition since home ownership began to boom after World War II, railroads are hauling more lumber in 2011 than they did last year.Major railroads across North America loaded 194,513 carloads of lumber and other wood products for the 37 weeks through Sept. 17, up 8.6 percent from the 2010 pace.In fact, lumber shipments have been getting stronger as this year continues. Although both single-family home sales and new starts of individual homes weakened in August, and September has seen a huge selloff in financial markets amid new blows...

At a time when the U.S. housing market is in its worst condition since home ownership began to boom after World War II, railroads are hauling more lumber in 2011 than they did last year. Major railroads across North America loaded 194,513 carloads of lumber and other wood products for the 37 weeks through Sept. 17, up 8.6 percent from the 2010 pace. In fact, lumber shipments have been getting stronger as this year continues. Although both single-family home sales and new starts of individual homes weakened in August, and September has seen a huge selloff in financial markets amid new blows to confidence, lumber volume in recent weeks has at times run 20 percent ahead of the same weeks last year. To understand what’s supporting the sawmill market, “forget about single-family housing starts,” said Gary Vitale, president of the North American Wholesale Lumber Association. The growth in lumber production is not mainly driven by home remodeling or exports or infrastructure projects, he said, although all have helped parts of the sawmill market. Instead, the biggest driver is a surge in apartment buildings. “There is a significant increase in multi-family housing construction,” Vitale said, that is pulling most of the demand for lumber. There is also solid growth in demand for wood to make pallets and crates, as manufacturers of heavy equipment or other crated goods get their products ready to ship abroad or to other parts of North America. “They are seeing a bit more of a recovery than those in our industry who are more dependent on the housing market,” Vitale said. What’s going on with lumber is another example of how rail freight shipments show a surprising resilience in underlying economic activity, so far at least, to counter the dire warnings that a new recession could be setting in. Total railcar loadings of non-intermodal cargoes, at Class I and large regional railroads across North America, are up 2 percent so far this year. Lumber volume is more than four times that strong. Lumber has a wide range of uses, from framing in residential buildings to concrete forming in big construction projects, plus the crates to carry factory goods. By early September, U.S. lumber production was up 7.7 percent from 2010, and Canadian output was up 3 percent. That comes at a time when big parts of the giant U.S. housing market appear nearly strangled. Residential builders in August were starting new ones at an annual rate of 571,000 units. At the peak of home building in 2005 and early 2006, about 2 million residential units were being erected, with 1.7 to 1.8 million of them single-family homes. The plunge after that, and even more dramatically once the 2008 financial crisis killed off mortgage lending for a while, hit all parts of the industry hard. But owners of rental units have been able to recover faster as many would-be home buyers stayed put, while an overhang of foreclosed or distressed-sale houses and still-tight credit terms have kept single-family housing in the dumps. [Editorial note: image removed/no longer available] The result: For the first eight months of 2011, the Census Bureau said new U.S. starts of single-family homes totaled 291,400 units, down 13.4 percent from the same point in 2010. But construction of buildings that had five or more family residences – rentals and condominiums – was up 44 percent to 100,300 units. There are signs housing could be stabilizing. The National Association of Realtors said sales of existing single homes, townhouses, condos and co-ops rose 7.7 percent in August from July and was up 18.6 percent from a year earlier. NAR Chief Economist Lawrence Yun said the rise came as “investors were more active” in buying foreclosures at a bargain, but some of the gain also reflects “favorable affordability conditions and rising rents” driving buyers into the market. Sales of new single homes fell in August, the government reported, but were 6 percent higher than in August 2010. Sawmills have been scrambling to keep markets or carve out new ones for their lumber. Mills in western Canada and the U.S. Northwest have increased their exports to China, which needs concrete forming lumber. Northern hardwood shippers sent wood around the continent for floor remodeling. Railroad tie production helped keep some mills alive. But those are smaller factors than the surge from U.S. industrial crating and especially from construction of multi-family buildings. Last month, U.S. single-family starts were down to 23 percent of their boom-time peak from January 2006. They have shed some share of the market in recent years but are still 73 percent of new starts. Multi-family starts in August were 35 percent of their peak volume. And they now make up 26 percent of total new starts, compared with 19 percent back then. NAWLA’s Vitale said while new construction of apartment-type buildings is starting from a low base, “it’s still a significant number, and it really does have an impact on the amount of lumber being shipped.” Contact John D. Boyd at jboyd@joc.com .

Rail News

What's Propping Up Rail Lumber?

<div class="phx-topic abstract-wrapper">While acknowledging a “volatile geopolitical landscape,” the carrier nonetheless says its forecast for the year assumes “operational conditions will stabilize to pre-conflict levels by summer.”</div>

While acknowledging a “volatile geopolitical landscape,” the carrier nonetheless says its forecast for the year assumes “operational conditions will stabilize to pre-conflict levels by summer.”

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<div class="phx-topic">Ocean Network Express (ONE) is forecasting an 11% drop in net profit for the coming year, to $300 million, due to the impact of the war in the Middle East, carrier said Thursday after unveiling results for its 2025 fiscal year. The carrier said it expects to report a $50 million net loss for the first half of its fiscal year between April and October, followed by a $350 million net profit for its fiscal second half that ends in March 2027. ”The FY2026 forecast reflects the continued impact of the Middle East conflict and assumes that operational conditions will stabilize to pre-conflict levels by summer,” the carrier said in its earnings statement. ONE, however, cautioned that “forecasting for FY2026 remains challenging due to the volatile geopolitical landscape, particularly in the Middle East.” The Iran war also meant “the prospect of resuming passage through the Red Sea–Suez Canal route has become even more uncertain, and vessels continue to reroute via the Cape of Good Hope,” it added. <h3>Declines in net profit, revenue </h3>The cautionary outlook came as ONE reported net profit of $338 million for its fiscal year ended March 31. While that was down 92% from the $4.2 billion recorded for fiscal 2024, it was higher than the $310 million ONE forecast last November. Revenue was down 14% to $16.6 billion due to lower freight rates for much of the fiscal year, while liftings were 1% higher at 12.9 million TEUs. The second half of ONE’s fiscal year was buoyed by a rebound in freight rates between January and March and increased demand on the Asia-Europe trade ahead of the Lunar New Year that resulted in a fourth-quarter profit of $55 million. The healthy Asia-Europe demand helped offset a weaker-than-expected pre-Lunar New Year cargo rush on the eastbound trans-Pacific. "Despite heightened volatility in the fourth quarter of FY2025, our disciplined cost control and operational efficiency enabled us to deliver a profitable full-year result,” ONE CEO Jeremy Nixon said in the earnings statement. “We continue to navigate a complex and volatile global environment as we enter the new fiscal year, and the safety of our people as well as the security of our operations and customers’ cargo remain our top priorities.” Nixon <a href="https://www.joc.com/article/jeremy-nixon-to-step-down-as-one-ceo-after-eight-years-at-the-helm-6175802">will step down from the CEO role on July 1</a>after more than eight years at the helm, and be replaced by Till Ole Barrelet from Emirates Shipping Line. Nixon will remain with ONE as senior advisor. <a href="mailto:keithwallis@hotmail.com">Contact Keith Wallis at keithwallis@hotmail.com.</a></div>

Ocean Network Express (ONE) is forecasting an 11% drop in net profit for the coming year, to $300 million, due to the impact of the war in the Middle East, carrier said Thursday after unveiling results for its 2025 fiscal year. The carrier said it expects to report a $50 million net loss for the first half of its fiscal year between April and October, followed by a $350 million net profit for its fiscal second half that ends in March 2027. ”The FY2026 forecast reflects the continued impact of the Middle East conflict and assumes that operational conditions will stabilize to pre-conflict levels by summer,” the carrier said in its earnings statement. ONE, however, cautioned that “forecasting for FY2026 remains challenging due to the volatile geopolitical landscape, particularly in the Middle East.” The Iran war also meant “the prospect of resuming passage through the Red Sea–Suez Canal route has become even more uncertain, and vessels continue to reroute via the Cape of Good Hope,” it added. Declines in net profit, revenue The cautionary outlook came as ONE reported net profit of $338 million for its fiscal year ended March 31. While that was down 92% from the $4.2 billion recorded for fiscal 2024, it was higher than the $310 million ONE forecast last November. Revenue was down 14% to $16.6 billion due to lower freight rates for much of the fiscal year, while liftings were 1% higher at 12.9 million TEUs. The second half of ONE’s fiscal year was buoyed by a rebound in freight rates between January and March and increased demand on the Asia-Europe trade ahead of the Lunar New Year that resulted in a fourth-quarter profit of $55 million. The healthy Asia-Europe demand helped offset a weaker-than-expected pre-Lunar New Year cargo rush on the eastbound trans-Pacific. "Despite heightened volatility in the fourth quarter of FY2025, our disciplined cost control and operational efficiency enabled us to deliver a profitable full-year result,” ONE CEO Jeremy Nixon said in the earnings statement. “We continue to navigate a complex and volatile global environment as we enter the new fiscal year, and the safety of our people as well as the security of our operations and customers’ cargo remain our top priorities.” Nixon will step down from the CEO role on July 1 after more than eight years at the helm, and be replaced by Till Ole Barrelet from Emirates Shipping Line. Nixon will remain with ONE as senior advisor. Contact Keith Wallis at keithwallis@hotmail.com.

Container lines

Asia-Europe

Trans-Pacific

Container Shipping News

Maritime

ONE expects 11% decline in FY26 net profit due to war in Middle East

<div class="phx-topic abstract-wrapper">Mid-size importers are generally satisfied with the base rates contained in their 2026-27 service contracts, but many are at the mercy of ocean carriers as to how emergency fuel surcharges are being handled.</div>

Mid-size importers are generally satisfied with the base rates contained in their 2026-27 service contracts, but many are at the mercy of ocean carriers as to how emergency fuel surcharges are being handled.

<div class="phx-topic">Mid-size US retailers and direct importers of Asia-sourced goods are finalizing 2026-27 service contracts with ocean carriers at base rates roughly comparable to last year — but with hundreds of dollars of additional bunker fuel surcharges baked in amid the war-driven jump in global oil prices. Container lines, despite facing a year of flat or negative volume growth and mounting global overcapacity, have generally been able to hold the line on trans-Pacific base rates while negotiating with cargo owners over how the higher fuel prices will be billed. Mid-size importers — those moving roughly 20,000 to 100,000 TEUs annually — have secured contracts in the range of $1,650 to $1,950 per FEU to the West Coast, with East Coast business about $1,000 per FEU higher, according to multiple industry sources. Those levels are comparable to the base rates in the expiring 2025-26 service contracts. However, with crude oil trading over $100 per barrel <a href="https://www.joc.com/article/hapag-lloyd-imposes-emergency-fuel-surcharges-on-third-party-feeder-cargo-6207629">due to the war in the Middle East</a> and closure of the Strait of Hormuz, carriers are approaching customers in the final stages of their 2026-27 service contract negotiations with bunker surcharges of as much as $400 per FEU, which would push the all-in freight rates to the US West Coast above $2,000 per FEU. That’s noticeably higher than last year when bunker fuel prices were stable. Most annual service contracts begin May 1 and run through April 30 of the following year. The Journal of Commerce spoke to seven ocean carriers, five forwarders, and three industry consultants for this story. “A lot of time customers push back on the surcharges, but the market is going to dictate what they are,” one carrier executive said. “Perhaps some carriers are more rigid than others as to how they apply additional surcharges, but I think that’s a matter of discussion.” Direct importers and forwarders are objecting to what they say are unilateral decisions by some carriers to change the standard bunker adjustment factor (BAF) in service contracts from a quarterly review to a monthly reset. Customers are also challenging carriers that are charging <a href="https://www.joc.com/article/carriers-handling-of-fuel-surcharges-agitates-small-midsize-trans-pac-shippers-6208047">emergency bunker surcharges (EBSs) that do not contain a clause</a> that would shift the EBS lower as oil prices drop. A second carrier executive said that given the current uncertainties due to the war in the Middle East, customers are asking shipping lines to offer guarantees and specify timelines around the bunker surcharges that are impossible to give. “If you ask a shipping line today, ‘Can you put an expiration date on the EBS, they cannot,’” the source said. A third carrier executive noted that fuel surcharges will vary noticeably based on the size of the customer and also the business relationship each carrier has with its customers. A large customer with a history of meeting the minimum quantity commitments (MQCs) in its annual contracts may be able to limit its fuel surcharge to as little as $100 per container, whereas smaller customers who have not booked frequently with the carrier may be offered a take-it-or-leave-it EBS of $400 per container, the carrier source explained. An industry consultant who has negotiated service contracts for big-box retailers said in order to finalize their negotiations, mid-size retailers and importers should shift their focus to fuel surcharges. “The key for shippers is don’t focus on just the base rate,” the consultant said. “Also understand what the floating bunker (charge) looks like and the emergency bunker surcharge, which at some point will go away.” The source added it is a fact that carriers are getting hit hard right now by higher fuel costs, with bunker fuel prices at major hubs, especially in Asia, essentially doubling after the war began. “It has to be passed down,” the source said. “They can’t just absorb those kinds of costs.” Carriers are including BAFs and emergency bunker surcharges in their service contract negotiations not only because they are being hit with higher bunker costs, but also because they are paying railroads and truckers more due to increased costs in those sectors, said Jason Cook, CEO of the forwarder Ardent Global Logistics. “They’re definitely standing firm on fuel surcharges,” Cook said of ocean carriers. “All costs are going up.” <h3>Contract extensions not a big issue </h3>In mid-April, two weeks before the May 1 start date of 2026-27 contracts, BCOs expressed concern that, facing a backlog of unsigned contracts, carriers would not be able to finalize all of the outstanding deals on time. Customers feared they would have no choice but to pay much higher spot rates until their new contracts were finalized. Spot rates from Asia to the US West Coast as of Wednesday were $2,767 per FEU to the West Coast and $3,767 to the East Coast, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Drewry pegged spot rates as of April 23 at $2,934 per FEU to the West Coast and $3,562 per FEU to the East Coast. In the case of both indexes, West Coast spot/freight-all-kinds rates have been above $2,000 per FEU for all of April. In their expiring 2025-26 service contracts, mid-size BCOs are paying in the range of $1,700 to $1,850 per FEU to the West Coast, so shipping under spot rates would add hundreds of dollars per container to the all-in rate. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7f641553-97ec-4014-8e54-fef6408538d9"></dynamic-object></div>But most carriers this week are agreeing to give their customers an extension of their 2025-26 service contracts until mid- to late-May while new deals are finalized, sources say, thus sparing customers from the more expensive spot market. “They’re extending the contracts now,” Jon Monroe, who serves as an adviser to forwarders, said of ocean carriers. Bob Fredman, an industry consultant who for many years managed logistics for national retailers, said he encountered similar situations in years when there was a backlog of contracts waiting to be processed. The delays were often needed to wrap up the language in new contracts that went down to the wire. “I don’t think it’s something that’s going to be a deal-breaker for anyone,” Fredman said. <h3>Carriers limiting fixed-account bookings for NVOs </h3>As is customary, carriers have waited until the final week or so before the May 1 deadline to finalize contracts with most of the non-vessel-operating common carriers (NVOs) that book with them. That is once again the case this year, forwarders say. Some carriers are being especially restrictive as to how many containers their NVO customers can ship under their named account (NAC) rates, several forwarders said. NAC rates are fixed for the duration of the contract. Many carriers right now are requiring that NVOs book as many as four containers under higher FAK rates for each fixed-account booking. Named account rates are likely to settle in below $2,000 per FEU to the West Coast, so that means forwarders will be shipping about 80% of their containers under the higher FAK rates, the forwarders said. However, requiring that ratio is not a new strategy, especially when FAK rates are noticeably higher than the fixed rates at the time the contracts are being signed, one forwarder said. “We don’t see this as being any more prevalent than in the past,” said the source. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Mark Szakonyi contributed to this report.</div>

Mid-size US retailers and direct importers of Asia-sourced goods are finalizing 2026-27 service contracts with ocean carriers at base rates roughly comparable to last year — but with hundreds of dollars of additional bunker fuel surcharges baked in amid the war-driven jump in global oil prices. Container lines, despite facing a year of flat or negative volume growth and mounting global overcapacity, have generally been able to hold the line on trans-Pacific base rates while negotiating with cargo owners over how the higher fuel prices will be billed. Mid-size importers — those moving roughly 20,000 to 100,000 TEUs annually — have secured contracts in the range of $1,650 to $1,950 per FEU to the West Coast, with East Coast business about $1,000 per FEU higher, according to multiple industry sources. Those levels are comparable to the base rates in the expiring 2025-26 service contracts. However, with crude oil trading over $100 per barrel due to the war in the Middle East and closure of the Strait of Hormuz, carriers are approaching customers in the final stages of their 2026-27 service contract negotiations with bunker surcharges of as much as $400 per FEU, which would push the all-in freight rates to the US West Coast above $2,000 per FEU. That’s noticeably higher than last year when bunker fuel prices were stable. Most annual service contracts begin May 1 and run through April 30 of the following year. The Journal of Commerce spoke to seven ocean carriers, five forwarders, and three industry consultants for this story. “A lot of time customers push back on the surcharges, but the market is going to dictate what they are,” one carrier executive said. “Perhaps some carriers are more rigid than others as to how they apply additional surcharges, but I think that’s a matter of discussion.” Direct importers and forwarders are objecting to what they say are unilateral decisions by some carriers to change the standard bunker adjustment factor (BAF) in service contracts from a quarterly review to a monthly reset. Customers are also challenging carriers that are charging emergency bunker surcharges (EBSs) that do not contain a clause that would shift the EBS lower as oil prices drop. A second carrier executive said that given the current uncertainties due to the war in the Middle East, customers are asking shipping lines to offer guarantees and specify timelines around the bunker surcharges that are impossible to give. “If you ask a shipping line today, ‘Can you put an expiration date on the EBS, they cannot,’” the source said. A third carrier executive noted that fuel surcharges will vary noticeably based on the size of the customer and also the business relationship each carrier has with its customers. A large customer with a history of meeting the minimum quantity commitments (MQCs) in its annual contracts may be able to limit its fuel surcharge to as little as $100 per container, whereas smaller customers who have not booked frequently with the carrier may be offered a take-it-or-leave-it EBS of $400 per container, the carrier source explained. An industry consultant who has negotiated service contracts for big-box retailers said in order to finalize their negotiations, mid-size retailers and importers should shift their focus to fuel surcharges. “The key for shippers is don’t focus on just the base rate,” the consultant said. “Also understand what the floating bunker (charge) looks like and the emergency bunker surcharge, which at some point will go away.” The source added it is a fact that carriers are getting hit hard right now by higher fuel costs, with bunker fuel prices at major hubs, especially in Asia, essentially doubling after the war began. “It has to be passed down,” the source said. “They can’t just absorb those kinds of costs.” Carriers are including BAFs and emergency bunker surcharges in their service contract negotiations not only because they are being hit with higher bunker costs, but also because they are paying railroads and truckers more due to increased costs in those sectors, said Jason Cook, CEO of the forwarder Ardent Global Logistics. “They’re definitely standing firm on fuel surcharges,” Cook said of ocean carriers. “All costs are going up.” Contract extensions not a big issue In mid-April, two weeks before the May 1 start date of 2026-27 contracts, BCOs expressed concern that, facing a backlog of unsigned contracts, carriers would not be able to finalize all of the outstanding deals on time. Customers feared they would have no choice but to pay much higher spot rates until their new contracts were finalized. Spot rates from Asia to the US West Coast as of Wednesday were $2,767 per FEU to the West Coast and $3,767 to the East Coast, according to Platts, a sister company of the Journal of Commerce within S&P Global. Drewry pegged spot rates as of April 23 at $2,934 per FEU to the West Coast and $3,562 per FEU to the East Coast. In the case of both indexes, West Coast spot/freight-all-kinds rates have been above $2,000 per FEU for all of April. In their expiring 2025-26 service contracts, mid-size BCOs are paying in the range of $1,700 to $1,850 per FEU to the West Coast, so shipping under spot rates would add hundreds of dollars per container to the all-in rate. But most carriers this week are agreeing to give their customers an extension of their 2025-26 service contracts until mid- to late-May while new deals are finalized, sources say, thus sparing customers from the more expensive spot market. “They’re extending the contracts now,” Jon Monroe, who serves as an adviser to forwarders, said of ocean carriers. Bob Fredman, an industry consultant who for many years managed logistics for national retailers, said he encountered similar situations in years when there was a backlog of contracts waiting to be processed. The delays were often needed to wrap up the language in new contracts that went down to the wire. “I don’t think it’s something that’s going to be a deal-breaker for anyone,” Fredman said. Carriers limiting fixed-account bookings for NVOs As is customary, carriers have waited until the final week or so before the May 1 deadline to finalize contracts with most of the non-vessel-operating common carriers (NVOs) that book with them. That is once again the case this year, forwarders say. Some carriers are being especially restrictive as to how many containers their NVO customers can ship under their named account (NAC) rates, several forwarders said. NAC rates are fixed for the duration of the contract. Many carriers right now are requiring that NVOs book as many as four containers under higher FAK rates for each fixed-account booking. Named account rates are likely to settle in below $2,000 per FEU to the West Coast, so that means forwarders will be shipping about 80% of their containers under the higher FAK rates, the forwarders said. However, requiring that ratio is not a new strategy, especially when FAK rates are noticeably higher than the fixed rates at the time the contracts are being signed, one forwarder said. “We don’t see this as being any more prevalent than in the past,” said the source. Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com . Mark Szakonyi contributed to this report.

Forwarding

Fuel charges complicate rush to ink new trans-Pacific service contracts

<div class="phx-topic abstract-wrapper">The terminal, jointly owned by Ports America and MSC’s Terminal Investment Limited, unveiled new container handling equipment as part of a growth drive to increase capacity by 40%.</div>

The terminal, jointly owned by Ports America and MSC’s Terminal Investment Limited, unveiled new container handling equipment as part of a growth drive to increase capacity by 40%.

<div class="phx-topic">Newark — The Port of New York and New Jersey’s third-busiest marine terminal on Wednesday unveiled $100 million in new container handling equipment and related facilities, the first step in a $1 billion plan to add a new berth and more rail capacity for its main customer, Mediterranean Shipping Co. Port Newark Container Terminal (PNCT) held a ribbon-cutting ceremony at a new maintenance shop designed for the terminal’s new, larger straddle carriers, which can span four-high container stacks. Along with the new shop, PNCT took delivery of the first 15 of the straddle carriers, with another 20 set for delivery by early 2027. The new yard equipment and shop are the first phase of PNCT’s plan to increase container volumes by 40% over the next three years, its Chief Executive Jim Pellicio told the Journal of Commerce. PNCT, jointly owned by Ports America and MSC’s Terminal Investment Limited (TiL), eventually plans to replace its entire fleet with 150 of the new straddle carriers, effectively increasing yard capacity by nearly a third through higher stacks. The new fleet will also be entirely diesel-electric hybrid as PNCT switches an increasing amount of its energy use to renewables. Over the past decade, PNCT has installed a solar array over its truck lanes and parking lot that takes up the equivalent of 12 acres of land, Pellicio said, generating half of the terminal’s energy. “This $100 million is a down payment on where PNCT has to go next,” Pellicio said. “The maintenance facility is built to support a much larger terminal than what we have today.” PNCT’s last upgrade cycle started in 2014, with a <a href="https://www.joc.com/article/upgrade-boosts-nynjs-pnct-terminal-capacity-5224445">$600 million investment</a> that included adding about 17 acres of terminal space, strengthening its three berths for larger ships, and <a href="https://www.joc.com/article/new-cranes-put-ny-nj-port-on-track-to-handle-more-ultra-large-ships-by-2025-5226275">adding two ultra-large ship cranes</a>. By 2020, that project had increased PNCT’s nominal capacity to about 2 million TEUs, up from 1.4 million TEUs. The next investment cycle will bring PNCT’s capacity to about 2.8 million TEUs, Pellicio said, adding that the terminal could add another 150 longshore jobs by 2029 due to the expansion. A big part of that upgrade will be an additional 68 acres on the terminal’s eastern end. The new space will come from <a href="https://www.joc.com/article/newark-port-project-to-give-mscs-terminal-more-room-to-grow-5703152">the Port Authority of New York and New Jersey’s $198 million rehabilitation</a> of a general cargo berth on the Newark peninsula’s southeastern end, along with the relocation of other port tenant properties to make way for container operations. The rehabilitation of Newark’s southeastern portion will provide PNCT another 400 feet of berth space on its eastern end by 2028. PNCT is also renovating another 700 feet of berth space on its western end, which will turn it into a four-berth facility. Pellicio said the additional space would allow PNCT to handle two 18,000-TEU ships simultaneously, along with a 9,000-TEU ship. Currently, its three berths can handle two 9,000-TEU ships and one 18,000-TEU ship. Although ships of that size will also require further dredging of the NY-NJ port to a 55-foot depth, Pellicio said it’s important to have PNCT ready for that next step. “There are no ships that need a 55-foot depth today, but you better build it today because they won’t come otherwise,” he said. <h3>Will add on-dock rail yard </h3>Along with the new equipment and berth, PNCT plans to add an on-dock rail yard at its eastern end, which should allow containers to move more easily to railcars. PNCT currently relies on yard hostlers to ferry containers over a flyover bridge to its rail yard adjacent to the New Jersey Turnpike. PNCT already leads the port in terms of inland cargo moves, with about 24% of its containers moving out on rail compared with a port-wide average of about 15%. Pellicio said the terminal needs more intermodal capacity because “MSC has a significant amount of rail containers.” “The shipping company might say ‘just take my New York boxes and leave the rail boxes for Savannah or Baltimore,’” Pellicio said. “I’m saying to them with this investment, take all the boxes off at PNCT. We will have the berths to do it and the rail to do it.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Newark — The Port of New York and New Jersey’s third-busiest marine terminal on Wednesday unveiled $100 million in new container handling equipment and related facilities, the first step in a $1 billion plan to add a new berth and more rail capacity for its main customer, Mediterranean Shipping Co. Port Newark Container Terminal (PNCT) held a ribbon-cutting ceremony at a new maintenance shop designed for the terminal’s new, larger straddle carriers, which can span four-high container stacks. Along with the new shop, PNCT took delivery of the first 15 of the straddle carriers, with another 20 set for delivery by early 2027. The new yard equipment and shop are the first phase of PNCT’s plan to increase container volumes by 40% over the next three years, its Chief Executive Jim Pellicio told the Journal of Commerce. PNCT, jointly owned by Ports America and MSC’s Terminal Investment Limited (TiL), eventually plans to replace its entire fleet with 150 of the new straddle carriers, effectively increasing yard capacity by nearly a third through higher stacks. The new fleet will also be entirely diesel-electric hybrid as PNCT switches an increasing amount of its energy use to renewables. Over the past decade, PNCT has installed a solar array over its truck lanes and parking lot that takes up the equivalent of 12 acres of land, Pellicio said, generating half of the terminal’s energy. “This $100 million is a down payment on where PNCT has to go next,” Pellicio said. “The maintenance facility is built to support a much larger terminal than what we have today.” PNCT’s last upgrade cycle started in 2014, with a $600 million investment that included adding about 17 acres of terminal space, strengthening its three berths for larger ships, and adding two ultra-large ship cranes . By 2020, that project had increased PNCT’s nominal capacity to about 2 million TEUs, up from 1.4 million TEUs. The next investment cycle will bring PNCT’s capacity to about 2.8 million TEUs, Pellicio said, adding that the terminal could add another 150 longshore jobs by 2029 due to the expansion. A big part of that upgrade will be an additional 68 acres on the terminal’s eastern end. The new space will come from the Port Authority of New York and New Jersey’s $198 million rehabilitation of a general cargo berth on the Newark peninsula’s southeastern end, along with the relocation of other port tenant properties to make way for container operations. The rehabilitation of Newark’s southeastern portion will provide PNCT another 400 feet of berth space on its eastern end by 2028. PNCT is also renovating another 700 feet of berth space on its western end, which will turn it into a four-berth facility. Pellicio said the additional space would allow PNCT to handle two 18,000-TEU ships simultaneously, along with a 9,000-TEU ship. Currently, its three berths can handle two 9,000-TEU ships and one 18,000-TEU ship. Although ships of that size will also require further dredging of the NY-NJ port to a 55-foot depth, Pellicio said it’s important to have PNCT ready for that next step. “There are no ships that need a 55-foot depth today, but you better build it today because they won’t come otherwise,” he said. Will add on-dock rail yard Along with the new equipment and berth, PNCT plans to add an on-dock rail yard at its eastern end, which should allow containers to move more easily to railcars. PNCT currently relies on yard hostlers to ferry containers over a flyover bridge to its rail yard adjacent to the New Jersey Turnpike. PNCT already leads the port in terms of inland cargo moves, with about 24% of its containers moving out on rail compared with a port-wide average of about 15%. Pellicio said the terminal needs more intermodal capacity because “MSC has a significant amount of rail containers.” “The shipping company might say ‘just take my New York boxes and leave the rail boxes for Savannah or Baltimore,’” Pellicio said. “I’m saying to them with this investment, take all the boxes off at PNCT. We will have the berths to do it and the rail to do it.” Contact Michael Angell at michael.angell@spglobal.com .

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NY-NJ’s Port Newark terminal takes first steps in next big expansion

<div class="phx-topic abstract-wrapper">The company is one of several LTL carriers reporting growing volumes, although its daily shipments are still down year over year.</div>

The company is one of several LTL carriers reporting growing volumes, although its daily shipments are still down year over year.

<div class="phx-topic">After three years of depressed demand, freight is returning to US less-than-truckload (LTL) networks, with daily volumes climbing month to month from January through April at several large LTL carriers. Those trucking companies haven’t entirely escaped the freight trough, but they’re getting closer to its edge as demand continues to accelerate. “While our first quarter revenue declined on a year-over-year basis, demand for our service improved as the quarter progressed,” Kevin “Marty” Freeman, president and CEO of Old Dominion Freight Line, said Wednesday during a first-quarter earnings call. Stronger demand contributed to sequential tonnage growth in February and March at the second-largest US LTL provider, Freeman said. ODFL’s daily volume dropped 7.9% year over year in the first quarter to 41,037 shipments per day, while tonnage per day fell 7.7%. But tonnage increased month by month, CFO Adam Satterfield told Wall Street analysts during the call. In January, tonnage dropped 3.4% from December, but it rose 4.9% in February from January, he said. The trend continued in March, when tonnage climbed 4.6% from February, said Satterfield. “Our volumes are still down on a year-over-year basis,” he said, but he expects that to flip as sequential month-to-month increases continue. The freight market “definitely feels like it’s continued to improve” in the early second quarter, Satterfield said. <h3>Truckload reversal </h3>Some of the general increase in tonnage and shipments may be attributable to freight shift rather than fresh demand, with truckload freight being redirected to LTL trailers. As truckload rates hit lows over the past few years, some shippers consolidated LTL freight and shifted it to truckload carriers to take advantage of lower pricing. “That trend has reversed,” Satterfield said. Freight optimization tools are making it easier for shippers and third-party logistics providers (3PLs) to shift freight among modes, he said. <a href="https://www.joc.com/article/soaring-truck-rates-power-major-rebound-in-domestic-intermodal-volume-6208736">Intermodal rail providers</a> are benefiting from freight shifts as well. To date in 2026, much of the improvement in volume at ODFL has come from retail customers, not traditional industrial shippers, Satterfield said. “Most of our positive performance over the past five months has been in that retail side of our business,” he said, which does not represent the majority of their freight. “We’re starting to see some early indications of industrial starting to turn the corner as well,” Satterfield said, with the Institute for Supply Management (ISM) Purchasing Managers’ Index (PMI) in expansion territory for three consecutive months as of March. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="16105334-c54a-4d51-9403-6d5bac8369c4"></dynamic-object></div>As the ISM PMI rises, “We expect to see the weight per shipment continuing to tack higher,” he said. “Right now, we’re at about 1,490 pounds per shipment. In really strong markets, we’ve been more like 1,600 pounds per shipment.” In terms of daily shipment count, “we need to get our numbers back to neutral year over year, and start getting back to what we do best, which is growth,” he said. <h3>‘Constructive’ conditions </h3>The improvement ODFL sees in the market is visible in other LTL carrier earnings. TFI International, the parent of national US LTL carrier TForce Freight, saw LTL daily volume drop 10% year over year in January and then go flat in February before rising 8% year over year in March, company executives said during a first-quarter earnings call this week. “We saw notable improvement during the quarter as weather improved, with shipments per day in March considerably stronger than January and February, and this trend continued into April,” TFI CEO Alain Bédard told analysts. “We’re starting to see a little bit of light at the end of the tunnel in terms of the demand.” Transportation and logistics provider ArcBest on Tuesday said daily shipment counts at LTL provider ABF Freight System rose 1.8% in the first quarter from a year ago. Tonnage per day rose 6.5% year over year in the quarter, indicating ABF is capturing heavier freight. “While the timing and pace of a broader recovery remains difficult to predict, conditions are becoming more constructive,” said Seth K. Runser, who succeeded Judy McReynolds as CEO of ArcBest in January. “Leading indicators of manufacturing activity have moved into expansion, which is supportive of future freight demand,” Runser told analysts on the company’s earnings call. Privately owned regional carrier Pitt Ohio sees <a href="https://www.joc.com/article/freight-returning-to-us-ltl-market-as-pricing-fuel-costs-climb-higher-6207125">daily shipment counts rising</a> as well. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

After three years of depressed demand, freight is returning to US less-than-truckload (LTL) networks, with daily volumes climbing month to month from January through April at several large LTL carriers. Those trucking companies haven’t entirely escaped the freight trough, but they’re getting closer to its edge as demand continues to accelerate. “While our first quarter revenue declined on a year-over-year basis, demand for our service improved as the quarter progressed,” Kevin “Marty” Freeman, president and CEO of Old Dominion Freight Line, said Wednesday during a first-quarter earnings call. Stronger demand contributed to sequential tonnage growth in February and March at the second-largest US LTL provider, Freeman said. ODFL’s daily volume dropped 7.9% year over year in the first quarter to 41,037 shipments per day, while tonnage per day fell 7.7%. But tonnage increased month by month, CFO Adam Satterfield told Wall Street analysts during the call. In January, tonnage dropped 3.4% from December, but it rose 4.9% in February from January, he said. The trend continued in March, when tonnage climbed 4.6% from February, said Satterfield. “Our volumes are still down on a year-over-year basis,” he said, but he expects that to flip as sequential month-to-month increases continue. The freight market “definitely feels like it’s continued to improve” in the early second quarter, Satterfield said. Truckload reversal Some of the general increase in tonnage and shipments may be attributable to freight shift rather than fresh demand, with truckload freight being redirected to LTL trailers. As truckload rates hit lows over the past few years, some shippers consolidated LTL freight and shifted it to truckload carriers to take advantage of lower pricing. “That trend has reversed,” Satterfield said. Freight optimization tools are making it easier for shippers and third-party logistics providers (3PLs) to shift freight among modes, he said. Intermodal rail providers are benefiting from freight shifts as well. To date in 2026, much of the improvement in volume at ODFL has come from retail customers, not traditional industrial shippers, Satterfield said. “Most of our positive performance over the past five months has been in that retail side of our business,” he said, which does not represent the majority of their freight. “We’re starting to see some early indications of industrial starting to turn the corner as well,” Satterfield said, with the Institute for Supply Management (ISM) Purchasing Managers’ Index (PMI) in expansion territory for three consecutive months as of March. As the ISM PMI rises, “We expect to see the weight per shipment continuing to tack higher,” he said. “Right now, we’re at about 1,490 pounds per shipment. In really strong markets, we’ve been more like 1,600 pounds per shipment.” In terms of daily shipment count, “we need to get our numbers back to neutral year over year, and start getting back to what we do best, which is growth,” he said. ‘Constructive’ conditions The improvement ODFL sees in the market is visible in other LTL carrier earnings. TFI International, the parent of national US LTL carrier TForce Freight, saw LTL daily volume drop 10% year over year in January and then go flat in February before rising 8% year over year in March, company executives said during a first-quarter earnings call this week. “We saw notable improvement during the quarter as weather improved, with shipments per day in March considerably stronger than January and February, and this trend continued into April,” TFI CEO Alain Bédard told analysts. “We’re starting to see a little bit of light at the end of the tunnel in terms of the demand.” Transportation and logistics provider ArcBest on Tuesday said daily shipment counts at LTL provider ABF Freight System rose 1.8% in the first quarter from a year ago. Tonnage per day rose 6.5% year over year in the quarter, indicating ABF is capturing heavier freight. “While the timing and pace of a broader recovery remains difficult to predict, conditions are becoming more constructive,” said Seth K. Runser, who succeeded Judy McReynolds as CEO of ArcBest in January. “Leading indicators of manufacturing activity have moved into expansion, which is supportive of future freight demand,” Runser told analysts on the company’s earnings call. Privately owned regional carrier Pitt Ohio sees daily shipment counts rising as well. Contact William B. Cassidy at bill.cassidy@spglobal.com .

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Surface

ODFL sees signs of growing LTL demand in sequential volume gain

<div class="phx-topic abstract-wrapper">DSV CEO Jens Lund, speaking during the company’s first-quarter earnings call Wednesday, said the integration of Schenker has been completed in more than 50 countries, with full integration still on tap by the end of this year.</div>

DSV CEO Jens Lund, speaking during the company’s first-quarter earnings call Wednesday, said the integration of Schenker has been completed in more than 50 countries, with full integration still on tap by the end of this year.

<div class="phx-topic">Some 7,000 full-time employees have been laid off amid the ongoing integration of DB Schenker into forwarding giant DSV, with another 1,000 expected to lose their jobs in the second quarter, DSV CEO Jens Lund said Wednesday. Lund, speaking during DSV’s first-quarter earnings call, said integration of the two companies has been completed in more than 50 countries. Full integration should be completed by the end of this year, he reiterated. Integration will create $1.5 billion in synergies next year, while integration costs are still estimated at $1.7 billion, Lund said. DSV CFO Michael Ebbe, meanwhile, said further acquisitions are likely in the future, but he ruled out any immediate deals while the company continued to digest the Schenker acquisition. “Consolidation is here to stay, and I’m confident we’ll be part of that going forward,” Ebbe told the Journal of Commerce in an interview Wednesday ahead of the results briefing. Ebbe said while DSV is “not looking at anything else,” expansion could come from the acquisition of a large regional player or a large forwarder specializing in specific logistics markets. <h3>Q1 net profit down sharply </h3>DSV’s net profit dropped 42% to $256 million in the first quarter, while revenue climbed 69% to $11 billion. The company didn’t say explicitly why profit fell, but it took a very big hit on costs — direct costs were up to $8 billion from $4.6 billion, staff costs increased to $1.4 billion from $688 million, and other external costs doubled to $382 million. DSV’s air and ocean segment posted a 20% year-over-year increase in gross profit to $1.2 billion, while revenue surged 43% to $5.7 billion. Highlighting the Schenker effect, DSV saw airfreight volumes surge 55% to 518,000 metric tons in the first quarter, while ocean freight volumes increased 50% to 976,000 metric tons. Lund said sea freight volumes last year were buoyed by the frontloading of cargo ahead of the introduction of US tariffs last April. Overall, DSV expected the global air and sea freight markets to grow between 2% and 3% this year, in line or slightly below global GDP forecasts. The Schenker merger also drove a 128% rise in revenue at road logistics to $3.6 billion and a 107% increase in contract logistics revenue to $2 billion. DSV did not give tonnage figures for either division. Meanwhile, inflation and elevated interest rates are dampening the demand outlook for the global logistics sector, while tariff policies and geopolitical uncertainty are also providing headwinds, Lund said. “It’s a volatile environment we’re looking at,” he said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Some 7,000 full-time employees have been laid off amid the ongoing integration of DB Schenker into forwarding giant DSV, with another 1,000 expected to lose their jobs in the second quarter, DSV CEO Jens Lund said Wednesday. Lund, speaking during DSV’s first-quarter earnings call, said integration of the two companies has been completed in more than 50 countries. Full integration should be completed by the end of this year, he reiterated. Integration will create $1.5 billion in synergies next year, while integration costs are still estimated at $1.7 billion, Lund said. DSV CFO Michael Ebbe, meanwhile, said further acquisitions are likely in the future, but he ruled out any immediate deals while the company continued to digest the Schenker acquisition. “Consolidation is here to stay, and I’m confident we’ll be part of that going forward,” Ebbe told the Journal of Commerce in an interview Wednesday ahead of the results briefing. Ebbe said while DSV is “not looking at anything else,” expansion could come from the acquisition of a large regional player or a large forwarder specializing in specific logistics markets. Q1 net profit down sharply DSV’s net profit dropped 42% to $256 million in the first quarter, while revenue climbed 69% to $11 billion. The company didn’t say explicitly why profit fell, but it took a very big hit on costs — direct costs were up to $8 billion from $4.6 billion, staff costs increased to $1.4 billion from $688 million, and other external costs doubled to $382 million. DSV’s air and ocean segment posted a 20% year-over-year increase in gross profit to $1.2 billion, while revenue surged 43% to $5.7 billion. Highlighting the Schenker effect, DSV saw airfreight volumes surge 55% to 518,000 metric tons in the first quarter, while ocean freight volumes increased 50% to 976,000 metric tons. Lund said sea freight volumes last year were buoyed by the frontloading of cargo ahead of the introduction of US tariffs last April. Overall, DSV expected the global air and sea freight markets to grow between 2% and 3% this year, in line or slightly below global GDP forecasts. The Schenker merger also drove a 128% rise in revenue at road logistics to $3.6 billion and a 107% increase in contract logistics revenue to $2 billion. DSV did not give tonnage figures for either division. Meanwhile, inflation and elevated interest rates are dampening the demand outlook for the global logistics sector, while tariff policies and geopolitical uncertainty are also providing headwinds, Lund said. “It’s a volatile environment we’re looking at,” he said. Contact Keith Wallis at keithwallis@hotmail.com .

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More job cuts in the works for Q2 as DSV-Schenker integration continues: Lund

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