<div class="phx-topic abstract-wrapper">One of the hallmarks of an importer&amp;rsquo;s relationship with Customs and Border Protection is reasonable care.</div>

One of the hallmarks of an importer&rsquo;s relationship with Customs and Border Protection is reasonable care.

<div>One of the hallmarks of an importer&amp;rsquo;s relationship with Customs and Border Protection is reasonable care. In its simplest terms, this means the importer has taken all reasonable steps to ensure the classification and value of his goods are stated accurately at time of entry, and to the extent those goods are subject to any admissibility requirements, they are met. For example, if you import food, you meet the Food and Drug Administration requirements, and if you import toys, any Consumer Product Safety Commission requirements are satisfied prior to entry. Country of origin applies to all goods. The typical relationship...

One of the hallmarks of an importer&rsquo;s relationship with Customs and Border Protection is reasonable care. In its simplest terms, this means the importer has taken all reasonable steps to ensure the classification and value of his goods are stated accurately at time of entry, and to the extent those goods are subject to any admissibility requirements, they are met. For example, if you import food, you meet the Food and Drug Administration requirements, and if you import toys, any Consumer Product Safety Commission requirements are satisfied prior to entry. Country of origin applies to all goods. The typical relationship between importer and customs broker consists of the importer relying on the broker to guide him or her through the process. A notice of noncompliance comes as a major shock to most importers. Unless an importer has a written agreement in which the broker agrees to shoulder legal compliances, a valid defense does not include the statement, &ldquo;My broker did it!&rdquo; The corresponding requirement placed on customs brokers is responsible supervision and control. The legal definition can be found at 19 C.F.R. 111.1. While the legal obligation of the importer carries with it a short definition, the legal obligation of the broker is far less concise. But it&rsquo;s clear that simply taking a classification from an importer and using it, without checking further, does not meet the standard. Similarly, allowing untrained clerks to guess at classification, not auditing files to ensure compliance, failing to advise importers about shortcomings with their documents, and so on, also fall below the expected standard of care. Why raise this now? In the last two months, we have seen significant penalties issued to importers who naively relied on their customs brokers to classify their goods correctly, only to find out how wrong they were. The corporate entities involved &mdash; two quite different but prominent brokerage operations &mdash; had no controls in place to make sure staff was making entry properly. In one case, during the course of the events about which Customs complained, the broker had three license holders, not one of whom picked up on how inept the clerk was, even after CBP Forms 28 and 29 were issued. The importers share some of the blame because they often neglect their homework and instead assume the broker must know what it&rsquo;s doing. Nothing could be further from the truth. Similarly, exporters, often small and medium-sized companies, rely on their forwarders to be familiar with the rules and guide them through the process. The Bureau of Industry and Security&rsquo;s guidance for compliance and enforcement related to freight forwarders states: &ldquo;Agents are responsible for the representations they make in filing export data. Moreover, no person, including an agent, may proceed with any transaction knowing that a violation of the EAR (Export Administration Regulations) has, is about to, or is intended to occur. It is the agent&rsquo;s responsibility to understand its obligations.&rdquo; The State Department pretty much ignores forwarders until something goes wrong, and then views them suspiciously. The bottom line: It&rsquo;s not a valid excuse to say &ldquo;my forwarder didn&rsquo;t do his job&rdquo; if a license was required and you failed to get one, for the same reasons an importer can&rsquo;t shield himself from liability if his broker messes up. From the forwarding side, interestingly, other than with a routed transaction, the exporter remains liable in all circumstances. Whether an exporter dealing with a forwarder or an importer dealing with a customs broker, it&rsquo;s important for international traders to do their homework. In the regulators&rsquo; view, importers and exporters are the principals and are responsible if their agents mess up. Consider the ramifications when you have a multimillion-dollar penalty in your hands, rail against your service provider only to discover you agreed to terms and conditions of service that severely limit what you can recover. Worse, those terms and conditions vary by circumstance. For example, if your service provider also acts as an air forwarder, for the most part, your recovery will be limited to $9.07 per kilo or $20 per pound under the Warsaw Convention, which governs carriage of goods by air. On the ocean, the operative agreement is the Carriage of Goods by the Sea Act, which limits liability to $500 per package, although that could change if the Rotterdam Rules are ever adopted. Sure, you might say the forwarder also prepared the documents and that&rsquo;s where he messed up. That may be true, but from a legal perspective, it could be argued he was preparing those documents as part of his transportation-related services. And even if his argument fails, be careful: Most forwarders and customs brokers have separate terms and conditions of service with limits of $50 or $100 per shipment. If you&rsquo;re a halfway experienced international trader, at this point, you&rsquo;re noting those terms and conditions are in fine print on the back of the document. Again, you&rsquo;d be correct, but that doesn&rsquo;t make them any less binding. It&rsquo;s common practice, after all, for the backs of transportation-related documents to be used to convey terms and conditions, even if the fine print is really small. Have you read an ocean bill of lading lately? The export enforcers also are vigilant about you not being able to &ldquo;self-blind.&rdquo; That is, if you&rsquo;re in a transaction that has red flags, you can&rsquo;t ignore them. In the context of the relationship with a service provider, frankly that philosophy doesn&rsquo;t go far enough. Here&rsquo;s the truth: You can no longer decide who your business partners are based strictly on cost. You must look at the big picture and do your due diligence to discover whether the service provider is blowing smoke or really knows what he or she is doing. This applies to your suppliers and customers as well. Business has gotten much more complicated, whether from the regulatory or commercial perspective. Thorough homework is a must, and by all means keep your records on what you&rsquo;ve done. It could save your company lots of money in the end. Susan Kohn Ross is an international trade attorney with Mitchell Silberberg & Knupp in Los Angeles. Contact her at skr@msk.com .

Customs Update: How to Avoid Agents of Misfortune

<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.

Feature image

<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

Maritime

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

North-American rail

Intermodal providers

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 .

Container lines

Forwarding

Container Shipping News

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

<div class="phx-topic abstract-wrapper">Yet liner executives insist that much of the surplus tonnage can be absorbed by a combination of vessel management, trade imbalances, increased scrapping and the ongoing effects of geopolitical disruptions.</div>

Yet liner executives insist that much of the surplus tonnage can be absorbed by a combination of vessel management, trade imbalances, increased scrapping and the ongoing effects of geopolitical disruptions.

<div class="phx-topic">The profitability-sapping effects of vessel overcapacity from an order book closing in on 40% of the in-service fleet were on display in the first quarter when volume gains by some ocean carriers were not enough to prevent a steep drop in earnings. Declining average rates dragged down the <a href="https://www.joc.com/article/maersk-passing-500-million-monthly-fuel-bill-to-customers-in-full-ceo-6216319">first-quarter results of Maersk and HMM</a>, despite solid volume increases; HMM reported a 14% increase in first-quarter volume, while Maersk reported “above market growth” of 9%. And despite stable volumes from other carriers such as <a href="https://www.joc.com/article/hapag-lloyd-posts-q1-net-loss-in-unsatisfactory-start-to-2026-6219964">Hapag-Lloyd</a>, <a href="https://www.joc.com/article/one-expects-11-decline-in-fy26-net-profit-due-to-war-in-middle-east-6212215">Ocean Network Express</a>, <a href="https://www.joc.com/article/lower-freight-rates-hit-q1-revenues-for-taiwans-big-three-carriers-6204140">Evergreen, Yang Ming and OOCL</a>, their revenues were significantly eroded by weaker rates; Hapag even posted a loss in the first quarter. Yet carrier executives insist that the excess supply can be mitigated and the surplus tonnage absorbed — this year at least — by a combination of vessel management, trade imbalances, the ongoing effects of geopolitical disruption, and an increase in scrapping. Some heavy lifting will be required. Maersk CEO Vincent Clerc put the current excess supply in the market at 1 million to 1.5 million TEUs, with the longer routes around southern Africa absorbing another 2 million TEUs. “So, it’s about 3.5 million TEUs overall that is the total capacity overhang to normalized trade routes today,” Clerc said during Maersk’s recent first-quarter earnings call with analysts. But he believes excess capacity can be managed by carriers showing discipline in how they deploy capacity, a rise in scrapping and by a new wave of slow steaming that will be triggered by high energy costs. “The deliveries are okay this year, but they are picking up significantly next year, and that’s going to put further pressure on the overhang,” he added. Despite the significant capacity overhang, Clerc believes high energy costs, driven by the effective closure of the Strait of Hormuz amid the ongoing war in the Middle East, will soon trigger a wave of slow steaming that could absorb up to an additional 1.5 million TEUs of capacity. “We’re looking at it ourselves, and the cost benefit is quite compelling,” he said. “But if we don’t pick up scrapping and actually retire some of the ships that have not been retired over the last seven years, this is going to be extremely bumpy.” <h3>Swelling order book </h3>The global order book continues to swell, with total capacity on order currently at 12.3 million TEUs, 37% of the in-service fleet, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Sea-web data shows just over 1 million TEUs of capacity via ships over 10,000 TEUs is scheduled to be delivered this year, contributing to capacity growth of 4% amid market predictions for demand growth of 2% to 3% this year. About 2.3 million TEUs of capacity are due for delivery in 2027 and 3.4 million TEUs in 2028. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4c149ebf-df6c-4535-a9b2-7d12091e03d8"></dynamic-object></div>Rolf Habben Jansen, CEO of Maersk’s Gemini Cooperation partner Hapag-Lloyd, also pointed to vessel management levers such as slow steaming and blank sailings, as well as increased scrapping, to limit the effects of excess tonnage. But he noted that another capacity-absorbing factor was emerging in the form of an imbalance between the dominant trade lanes of head-haul corridors and non-dominant lanes. Habben Jansen said growth on the dominant legs of a trade lane is what drives capacity needs, not the overall market growth, noting that strong growth on dominant trade lanes — 10% in 2024 and 8% in 2025 — was helping to offset the impact of new supply on rate levels. “In 2026, the growth on the dominant legs will be higher than the additional supply that comes into the market, acting as a mitigating factor against overcapacity,” he said during Hapag’s earnings call last week. <h3>Supply management to be tested </h3>How demand and rates shape up through the second quarter and peak season will put the capacity-mitigating confidence of carrier executives to the test, particularly on the trans-Pacific. US imports from Asia have fallen 4.6% this year through April, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. Despite the weak demand, carriers on the trans-Pacific are having some success with rate increases amid an environment of sharply higher fuel costs. Platts, a sister company of the Journal of Commerce, believes rates are being supported by blank sailings, smaller vessel deployments and tighter space allocations. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9c18268a-1028-4fd5-916a-6a7afa16d7ec"></dynamic-object></div>Spot rates for Asia to the US West Coast were at $3,200 per FEU as of May 18 — up 84% in two months, according to Platts. East Coast rates were at $4,200/FEU. A series of general rate increases (GRIs) was issued in mid-May, with carriers announcing another set from June 1 as high as $3,000 per FEU, combined with a wave of fuel‑linked surcharge adjustments ranging from $200/FEU to $500/FEU. Asia-Europe volume from Container Trades Statistics is only available for the first quarter but shows a 13% increase year over year, continuing the strong demand recorded last year when the trade lane grew volume by 8%. Rates have been rising; on Asia-North Europe they are up 17% week over week at $2,800/FEU, with Asia-Mediterranean rates climbing 8% to $4,000/FEU, Platts data shows. The gains appear to be driven by demand and not carrier capacity management, with a significant increase in deployed capacity on Asia-North Europe and a cut in blank sailings. Data from eeSea, part of rate benchmarking platform Xeneta, shows capacity on Asia-North Europe in May will be up 16% from April at 1.2 million TEUs, with blank sailings down 5%. In June, planned capacity will fall to 1.1 million TEUs while planned blank sailings will be halved. It is a more dramatic picture on the trans-Pacific. Asia-US will see 1.96 million TEUs deployed in May, up 4% from April, with blank sailings falling 36%. Planned capacity in June will increase to 2.1 million TEUs while blank sailings will drop by almost 40%. The demand picture for the rest of the year remains unclear. Mediterranean Shipping Co. CEO Soren Toft told the Journal of Commerce in London last week that consumer behavior in both the US and Europe was difficult to predict in the current global economic climate. <h3>Rising energy prices to dampen demand </h3>The International Monetary Fund has revised its economic growth forecast downward from 3.3% to 2.8% with the expectation that rising energy prices will dampen demand. At the same time, the war in the Middle East is fueling inflation fears, product shortages and aggressive stockpiling by manufacturers worldwide, according to the GEP Global Supply Chain Volatility Index compiled by S&amp;P Global and released May 12. Businesses globally have ramped up safety stockpiling of goods and raw materials at the fastest rate in three years as they seek to secure supply ahead of further price increases and disruption, the GEP survey found. European manufacturers reported the most aggressive inventory building, signaling heightened concern over supply availability and costs. “Even if tensions in the Middle East ease quickly, global supply chains are unlikely to normalize for another six to 12 months,” John Piatek, vice president of consulting at GEP, said in his analysis of the survey results. “What stands out in April’s data is how broadly the disruption is spreading,” he added. “Shortages worsened across every major region, signaling this is no longer an isolated transport shock. Companies worldwide are now scrambling to secure supply and protect themselves against further inflation and disruption.” A softening of Asian exports because of the stockpiling will likely result in oversupplied carriers rapidly scaling up blank sailings to support rate levels. Maersk and Hapag-Lloyd in March amended their Gemini Cooperation agreement across all global service loops to modify the timing of discussions regarding potential seasonal blank sailings. Under previous terms, the carriers were authorized to blank sailings only during Chinese New Year or Chinese Golden Week, provided such agreement was reached no later than 12 weeks prior to the scheduled date of the sailing. The new agreement allows the carriers to announce blanks six to eight weeks before sailings. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The profitability-sapping effects of vessel overcapacity from an order book closing in on 40% of the in-service fleet were on display in the first quarter when volume gains by some ocean carriers were not enough to prevent a steep drop in earnings. Declining average rates dragged down the first-quarter results of Maersk and HMM , despite solid volume increases; HMM reported a 14% increase in first-quarter volume, while Maersk reported “above market growth” of 9%. And despite stable volumes from other carriers such as Hapag-Lloyd , Ocean Network Express , Evergreen, Yang Ming and OOCL , their revenues were significantly eroded by weaker rates; Hapag even posted a loss in the first quarter. Yet carrier executives insist that the excess supply can be mitigated and the surplus tonnage absorbed — this year at least — by a combination of vessel management, trade imbalances, the ongoing effects of geopolitical disruption, and an increase in scrapping. Some heavy lifting will be required. Maersk CEO Vincent Clerc put the current excess supply in the market at 1 million to 1.5 million TEUs, with the longer routes around southern Africa absorbing another 2 million TEUs. “So, it’s about 3.5 million TEUs overall that is the total capacity overhang to normalized trade routes today,” Clerc said during Maersk’s recent first-quarter earnings call with analysts. But he believes excess capacity can be managed by carriers showing discipline in how they deploy capacity, a rise in scrapping and by a new wave of slow steaming that will be triggered by high energy costs. “The deliveries are okay this year, but they are picking up significantly next year, and that’s going to put further pressure on the overhang,” he added. Despite the significant capacity overhang, Clerc believes high energy costs, driven by the effective closure of the Strait of Hormuz amid the ongoing war in the Middle East, will soon trigger a wave of slow steaming that could absorb up to an additional 1.5 million TEUs of capacity. “We’re looking at it ourselves, and the cost benefit is quite compelling,” he said. “But if we don’t pick up scrapping and actually retire some of the ships that have not been retired over the last seven years, this is going to be extremely bumpy.” Swelling order book The global order book continues to swell, with total capacity on order currently at 12.3 million TEUs, 37% of the in-service fleet, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. Sea-web data shows just over 1 million TEUs of capacity via ships over 10,000 TEUs is scheduled to be delivered this year, contributing to capacity growth of 4% amid market predictions for demand growth of 2% to 3% this year. About 2.3 million TEUs of capacity are due for delivery in 2027 and 3.4 million TEUs in 2028. Rolf Habben Jansen, CEO of Maersk’s Gemini Cooperation partner Hapag-Lloyd, also pointed to vessel management levers such as slow steaming and blank sailings, as well as increased scrapping, to limit the effects of excess tonnage. But he noted that another capacity-absorbing factor was emerging in the form of an imbalance between the dominant trade lanes of head-haul corridors and non-dominant lanes. Habben Jansen said growth on the dominant legs of a trade lane is what drives capacity needs, not the overall market growth, noting that strong growth on dominant trade lanes — 10% in 2024 and 8% in 2025 — was helping to offset the impact of new supply on rate levels. “In 2026, the growth on the dominant legs will be higher than the additional supply that comes into the market, acting as a mitigating factor against overcapacity,” he said during Hapag’s earnings call last week. Supply management to be tested How demand and rates shape up through the second quarter and peak season will put the capacity-mitigating confidence of carrier executives to the test, particularly on the trans-Pacific. US imports from Asia have fallen 4.6% this year through April, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Despite the weak demand, carriers on the trans-Pacific are having some success with rate increases amid an environment of sharply higher fuel costs. Platts, a sister company of the Journal of Commerce, believes rates are being supported by blank sailings, smaller vessel deployments and tighter space allocations. Spot rates for Asia to the US West Coast were at $3,200 per FEU as of May 18 — up 84% in two months, according to Platts. East Coast rates were at $4,200/FEU. A series of general rate increases (GRIs) was issued in mid-May, with carriers announcing another set from June 1 as high as $3,000 per FEU, combined with a wave of fuel‑linked surcharge adjustments ranging from $200/FEU to $500/FEU. Asia-Europe volume from Container Trades Statistics is only available for the first quarter but shows a 13% increase year over year, continuing the strong demand recorded last year when the trade lane grew volume by 8%. Rates have been rising; on Asia-North Europe they are up 17% week over week at $2,800/FEU, with Asia-Mediterranean rates climbing 8% to $4,000/FEU, Platts data shows. The gains appear to be driven by demand and not carrier capacity management, with a significant increase in deployed capacity on Asia-North Europe and a cut in blank sailings. Data from eeSea, part of rate benchmarking platform Xeneta, shows capacity on Asia-North Europe in May will be up 16% from April at 1.2 million TEUs, with blank sailings down 5%. In June, planned capacity will fall to 1.1 million TEUs while planned blank sailings will be halved. It is a more dramatic picture on the trans-Pacific. Asia-US will see 1.96 million TEUs deployed in May, up 4% from April, with blank sailings falling 36%. Planned capacity in June will increase to 2.1 million TEUs while blank sailings will drop by almost 40%. The demand picture for the rest of the year remains unclear. Mediterranean Shipping Co. CEO Soren Toft told the Journal of Commerce in London last week that consumer behavior in both the US and Europe was difficult to predict in the current global economic climate. Rising energy prices to dampen demand The International Monetary Fund has revised its economic growth forecast downward from 3.3% to 2.8% with the expectation that rising energy prices will dampen demand. At the same time, the war in the Middle East is fueling inflation fears, product shortages and aggressive stockpiling by manufacturers worldwide, according to the GEP Global Supply Chain Volatility Index compiled by S&P Global and released May 12. Businesses globally have ramped up safety stockpiling of goods and raw materials at the fastest rate in three years as they seek to secure supply ahead of further price increases and disruption, the GEP survey found. European manufacturers reported the most aggressive inventory building, signaling heightened concern over supply availability and costs. “Even if tensions in the Middle East ease quickly, global supply chains are unlikely to normalize for another six to 12 months,” John Piatek, vice president of consulting at GEP, said in his analysis of the survey results. “What stands out in April’s data is how broadly the disruption is spreading,” he added. “Shortages worsened across every major region, signaling this is no longer an isolated transport shock. Companies worldwide are now scrambling to secure supply and protect themselves against further inflation and disruption.” A softening of Asian exports because of the stockpiling will likely result in oversupplied carriers rapidly scaling up blank sailings to support rate levels. Maersk and Hapag-Lloyd in March amended their Gemini Cooperation agreement across all global service loops to modify the timing of discussions regarding potential seasonal blank sailings. Under previous terms, the carriers were authorized to blank sailings only during Chinese New Year or Chinese Golden Week, provided such agreement was reached no later than 12 weeks prior to the scheduled date of the sailing. The new agreement allows the carriers to announce blanks six to eight weeks before sailings. Contact Greg Knowler at greg.knowler@spglobal.com .

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