<div class="phx-topic abstract-wrapper">The House of Representatives has approved a bill to allow construction of the Keystone XL pipeline, which would transport about 830,000 barrels of oil per day from North American oil supplies to U.S. refineries.</div>

The House of Representatives has approved a bill to allow construction of the Keystone XL pipeline, which would transport about 830,000 barrels of oil per day from North American oil supplies to U.S. refineries.

<div>The House of Representatives <a>has approved</a> a bill to allow construction of the Keystone XL pipeline, which would transport about 830,000 barrels of oil per day from North American oil supplies to U.S. refineries.H.R. 3, the Northern Route Approval Act, was passed “as expected,” specifically declaring that a presidential permit was not needed to approve the Canada-to-Nebraska leg of the pipeline, a move that would take the decision on the project away from the Obama administration, <a>Reuters reports</a>. TransCanada’s pipeline would link Alberta’s oil sands production with refineries along the U.S. Gulf Coast.The legislation now moves to the Senate, where...

The House of Representatives has approved a bill to allow construction of the Keystone XL pipeline, which would transport about 830,000 barrels of oil per day from North American oil supplies to U.S. refineries. H.R. 3, the Northern Route Approval Act, was passed “as expected,” specifically declaring that a presidential permit was not needed to approve the Canada-to-Nebraska leg of the pipeline, a move that would take the decision on the project away from the Obama administration, Reuters reports . TransCanada’s pipeline would link Alberta’s oil sands production with refineries along the U.S. Gulf Coast. The legislation now moves to the Senate, where it has to have enough votes to overcome a promised veto from President Obama. The pipeline section from Alberta to Nebraska needs presidential approval because it crosses a national border. The pipeline’s southern leg, for Texas to Oklahoma, is more than halfway built. Reps. Bill Shuster, R-Pa.., chairman of the Committee on Transportation and Infrastructure, and Jeff Denham, R-Calif., chairman of the Subcommittee on Railroads, Pipelines and Hazardous Materials, co-sponsored the bill. “Construction of the Keystone XL pipeline continues to be delayed by the president after more than 1,700 days,” Shuster said. According to the State Department, “non-OPEC Canadian crude oil supplies advance the energy security of the United States, given Canada’s close proximity, our free trade agreements and our close bilateral relationship with this stable democracy.” The bill is also supported by many unions because it would provide thousands of construction jobs. However, environmentalists have shown strong opposition to it, saying it would raise greenhouse gas levels and lock the U.S. into long-term dependence on fossil fuels.

Transport, Trade and Regulation News

US House Approves Keystone XL Pipeline

<div class="phx-topic abstract-wrapper">The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.</div>

The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.

Feature image

<div class="phx-topic">CMA CGM is launching a standalone direct service between India and the US West Coast in another apparent revamp of its Asian networks after just <a href="https://www.joc.com/article/cma-cgm-to-launch-standalone-japan-europe-express-service-in-april-6177297">announcing a new Japan-Europe express service</a> to start in early April. As market updates suggest, the Marseille-based carrier has extended the port rotation of its Pearl River Express service between South China and the USWC to the Indian subcontinent, using about 13 vessels with capacities of 10,000 to 13,000 TEUs. The extended weekly loop includes four ports of call across the subcontinent: Nhava Sheva and Mundra in West India, Karachi in Pakistan, and Colombo in Sri Lanka. The relaunched Pearl’s full eastbound rotation will be Nhava Sheva, Mundra, Karachi, Colombo, Singapore, Haiphong, Xiamen, Nansha, Yantian and Los Angeles. On the westbound leg, vessels will call Los Angeles, Gwangyang, Qingdao, Shanghai, Ningbo, Shekou, Singapore, Nhava Sheva, Mundra and Karachi, according to a CMA CGM India advisory. The rotation structure seems to be in sync with ongoing Indian port restrictions for Pakistan transit cargo. CMA-CGM said the service upgrade seeks to enhance connectivity and coverage for Indian trades to the USWC. “The Pearl service will now offer an exclusive and direct connection from West India, Pakistan and Sri Lanka ports to Los Angeles,” the carrier said. The service is due to begin with the 10,000-TEU APL Qingdao departing Nhava Sheva March 30, offering a declared transit time of 47 days to Los Angeles. The restructured Pearl will compete with Ocean Network Express’ Pacific South 3 service, currently the only direct connection on the trade lane, which offers a faster 36-day transit from Nhava Sheva to Los Angeles. CMA CGM has typically relied on transshipment over Asian ports for coverage of trades between India and the USWC, mainly feeding via its Asia-Subcontinent Express (AS1) service with calls at Nhava Sheva and Mundra, according to industry sources. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1cf22f06-bc03-4442-9050-628846faea40"></dynamic-object></div>New direct links between India and the US come amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations. Industry data also points to an upward move in Nhava Sheva–Los Angeles spot rates, pegged at $2,500 per FEU for late-March sailings, compared with the current $1,500 per FEU, sources said. Indian exports to the West Coast have shown some strength of late, hitting 19,117 TEUs in January, highest since September, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM is launching a standalone direct service between India and the US West Coast in another apparent revamp of its Asian networks after just announcing a new Japan-Europe express service to start in early April. As market updates suggest, the Marseille-based carrier has extended the port rotation of its Pearl River Express service between South China and the USWC to the Indian subcontinent, using about 13 vessels with capacities of 10,000 to 13,000 TEUs. The extended weekly loop includes four ports of call across the subcontinent: Nhava Sheva and Mundra in West India, Karachi in Pakistan, and Colombo in Sri Lanka. The relaunched Pearl’s full eastbound rotation will be Nhava Sheva, Mundra, Karachi, Colombo, Singapore, Haiphong, Xiamen, Nansha, Yantian and Los Angeles. On the westbound leg, vessels will call Los Angeles, Gwangyang, Qingdao, Shanghai, Ningbo, Shekou, Singapore, Nhava Sheva, Mundra and Karachi, according to a CMA CGM India advisory. The rotation structure seems to be in sync with ongoing Indian port restrictions for Pakistan transit cargo. CMA-CGM said the service upgrade seeks to enhance connectivity and coverage for Indian trades to the USWC. “The Pearl service will now offer an exclusive and direct connection from West India, Pakistan and Sri Lanka ports to Los Angeles,” the carrier said. The service is due to begin with the 10,000-TEU APL Qingdao departing Nhava Sheva March 30, offering a declared transit time of 47 days to Los Angeles. The restructured Pearl will compete with Ocean Network Express’ Pacific South 3 service, currently the only direct connection on the trade lane, which offers a faster 36-day transit from Nhava Sheva to Los Angeles. CMA CGM has typically relied on transshipment over Asian ports for coverage of trades between India and the USWC, mainly feeding via its Asia-Subcontinent Express (AS1) service with calls at Nhava Sheva and Mundra, according to industry sources. New direct links between India and the US come amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations. Industry data also points to an upward move in Nhava Sheva–Los Angeles spot rates, pegged at $2,500 per FEU for late-March sailings, compared with the current $1,500 per FEU, sources said. Indian exports to the West Coast have shown some strength of late, hitting 19,117 TEUs in January, highest since September, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

Asia-Europe

Container Shipping News

Maritime

CMA CGM adds direct India-USWC string as part of Asia network overhaul

<div class="phx-topic abstract-wrapper">The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility and disruption in the market.</div>

The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility and disruption in the market.

<div class="phx-topic">Intercontinental Exchange (ICE) on Friday said it intends to launch four container freight futures contracts next month covering shipping routes linking Asia, Europe and the US. Subject to regulatory approval, the contracts will begin trading on ICE, owner of the New York Stock Exchange, on April 7, ICE said in a statement. The contracts, which ICE said “are designed to help the market manage container freight (price) risk,” will be indexed to the New York Shipping Exchange’s (NYSHEX) Freight Indices price assessments, <a href="https://www.joc.com/article/nyshex-enters-container-index-fray-targeting-floating-rate-contract-adoption-5996516">which were unveiled last May.</a>The four futures contracts, which will be US-denominated and cash-settled, will cover Asia to the US West Coast, Asia to the US East Coast, Asia to North Europe, and North Europe to the US East Coast. The ICE futures do not represent physical slots on container ships; they are a financial instrument that allows investors to hedge against future spot rate movements. The push to launch futures contracts for container shipping <a href="https://www.joc.com/article/near-constant-disruption-giving-new-momentum-to-freight-futures-5979859">has gained momentum in recent years</a> given the seemingly never-ending volatility in the market — from the supply chain disruption caused by the COVID-19 pandemic, the lengthy and costly vessel diversions around southern Africa to avoid the Red Sea and Suez Canal, and now with up to 10% of global capacity tied up due to the war in the Middle East. One big question about container shipping futures has been the potential liquidity of the market, meaning whether the contacts could gain enough traction and eventually become heavily traded. Previous attempts at launching similar container rate futures markets have struggled to generate demand. ICE sought to ease those doubts by pointing out the four contracts “will be supported by (its) network of extremely liquid energy markets.” Open interest, or the number of actively traded contracts, for ICE’s total oil market was at a record 18.7 million contracts as of Feb. 23, it said. “The container shipping industry is massive and critical for global trade, yet it is incredibly volatile,” Gordon Downes, CEO and co-founder of NYSHEX, said in the statement. “With the launch of ICE’s new freight futures, the market participants can far more easily hedge against unexpected swings in the market price.” Contact Kevin Saville at <a href="mailto:kevin.saville2@spglobal.com">kevin.saville2@spglobal.com.</a></div>

Intercontinental Exchange (ICE) on Friday said it intends to launch four container freight futures contracts next month covering shipping routes linking Asia, Europe and the US. Subject to regulatory approval, the contracts will begin trading on ICE, owner of the New York Stock Exchange, on April 7, ICE said in a statement. The contracts, which ICE said “are designed to help the market manage container freight (price) risk,” will be indexed to the New York Shipping Exchange’s (NYSHEX) Freight Indices price assessments, which were unveiled last May. The four futures contracts, which will be US-denominated and cash-settled, will cover Asia to the US West Coast, Asia to the US East Coast, Asia to North Europe, and North Europe to the US East Coast. The ICE futures do not represent physical slots on container ships; they are a financial instrument that allows investors to hedge against future spot rate movements. The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility in the market — from the supply chain disruption caused by the COVID-19 pandemic, the lengthy and costly vessel diversions around southern Africa to avoid the Red Sea and Suez Canal, and now with up to 10% of global capacity tied up due to the war in the Middle East. One big question about container shipping futures has been the potential liquidity of the market, meaning whether the contacts could gain enough traction and eventually become heavily traded. Previous attempts at launching similar container rate futures markets have struggled to generate demand. ICE sought to ease those doubts by pointing out the four contracts “will be supported by (its) network of extremely liquid energy markets.” Open interest, or the number of actively traded contracts, for ICE’s total oil market was at a record 18.7 million contracts as of Feb. 23, it said. “The container shipping industry is massive and critical for global trade, yet it is incredibly volatile,” Gordon Downes, CEO and co-founder of NYSHEX, said in the statement. “With the launch of ICE’s new freight futures, the market participants can far more easily hedge against unexpected swings in the market price.” Contact Kevin Saville at kevin.saville2@spglobal.com.

Trans-Atlantic

Trans-Pacific

Intercontinental Exchange to launch container freight futures in April

<div class="phx-topic abstract-wrapper">While of concern to shippers and ocean carriers, the global impact of the war in the Middle East on container flows will be less severe than COVID-19 disruptions and Red Sea diversions, Lars Jensen told TPM26.</div>

While of concern to shippers and ocean carriers, the global impact of the war in the Middle East on container flows will be less severe than COVID-19 disruptions and Red Sea diversions, Lars Jensen told TPM26.

<div class="phx-topic">Long Beach, California — The war in the Middle East that has effectively shut the Persian Gulf and Strait of Hormuz is a problem for container shipping, but not on the scale of other recent disruptions the sector has faced. That was the closing message of the Journal of Commerce’s TPM 26 conference, delivered by industry analyst and CEO of Vespucci Maritime Lars Jensen. “This is going to sound weird. Globally, strictly on container shipping, it’s a problem, but it’s not a major problem,” Jensen told conference attendees. “It’s definitely not pandemic-scale.” <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177005_0.1.jpg"></img></div>When Houthi militants in Yemen began <a href="https://www.joc.com/article/red-sea-diversions-could-last-for-months-until-attack-risk-ends-drewry-5225718">their attacks on shipping in the Red Sea two years ago</a>, container ships serving the Asia-Europe, Asia-Mediterranean and Asia-US East Coast trade lanes were forced to make lengthy and costly diversions around the southern tip of Africa. The current danger zone in the Middle East is much more limited. “In this case, it is ... ‘only’ the cargo in the Gulf. So from a global perspective, yes there will be an impact,” Jensen said. “It will contract capacity some, but it’s not a major disaster for the countries in the Gulf.” Looking at the volume of containers destined for the Strait of Hormuz, either on board vessels already or at least booked within the next 90 days to head toward the Gulf, approximately 2 million TEUs will be impacted, he said. A significant portion of that total will be offloaded at ports around the Strait of Hormuz. The war, meanwhile, has put to rest the assumption importers had entering 2026 that container traffic from Asia bound for Europe and the US East Coast would return to the Suez Canal in the second half of this year, thereby reducing carriers’ leverage in pricing. “The baseline outlook for 2026 now has to include the assumption that the deviations around Africa will continue this year, and therefore materially strengthen the supply and demand balance,” Jensen said. As for when container ships will contemplate returning to the Suez Canal, he said that discussion has been kicked down the road for at least another six months. “So realistically, we are probably looking at least six months into the future before anybody is going to start contemplating doing this again, and that is if we stop the war basically today,” Jensen said. Major container lines have mostly avoided the Red Sea/Suez route since late 2023, when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing the diversions around southern Africa. Those attacks stopped last October after the ceasefire agreement between Israel and Hamas, prompting some major carriers to resume transits through the volatile area on a small scale in recent months. <h3>Rising oil prices, congestion are a concern </h3>In the short term, oil prices, and therefore bunker fuel prices, will increase, which will impact container shipping costs. And that means ocean carriers will respond with increased fuel surcharges. “On account of the Middle East, the carriers will go gangbusters in terms of implementing as many and as high surcharges as humanly possible, and not just on trades to and from the Gulf, [but] everywhere,” Jensen said. “They will be called emergency fuel surcharges, emergency conflict surcharges, and whatever nice names, but they will be a reality. The only question is, how high will it go and how long will it last.” Even cargo owners who are shipping only from Asia to the US West Coast will feel an impact from events in the Middle East in terms of surcharges and disrupted operations in the form of knock-on congestion. “You’re going to get all of these congestion effects in Asia that [are] going to impact everything and everyone, so you’re going to see these surcharges also on the Pacific,” Jensen said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Long Beach, California — The war in the Middle East that has effectively shut the Persian Gulf and Strait of Hormuz is a problem for container shipping, but not on the scale of other recent disruptions the sector has faced. That was the closing message of the Journal of Commerce’s TPM 26 conference, delivered by industry analyst and CEO of Vespucci Maritime Lars Jensen. “This is going to sound weird. Globally, strictly on container shipping, it’s a problem, but it’s not a major problem,” Jensen told conference attendees. “It’s definitely not pandemic-scale.” When Houthi militants in Yemen began their attacks on shipping in the Red Sea two years ago , container ships serving the Asia-Europe, Asia-Mediterranean and Asia-US East Coast trade lanes were forced to make lengthy and costly diversions around the southern tip of Africa. The current danger zone in the Middle East is much more limited. “In this case, it is ... ‘only’ the cargo in the Gulf. So from a global perspective, yes there will be an impact,” Jensen said. “It will contract capacity some, but it’s not a major disaster for the countries in the Gulf.” Looking at the volume of containers destined for the Strait of Hormuz, either on board vessels already or at least booked within the next 90 days to head toward the Gulf, approximately 2 million TEUs will be impacted, he said. A significant portion of that total will be offloaded at ports around the Strait of Hormuz. The war, meanwhile, has put to rest the assumption importers had entering 2026 that container traffic from Asia bound for Europe and the US East Coast would return to the Suez Canal in the second half of this year, thereby reducing carriers’ leverage in pricing. “The baseline outlook for 2026 now has to include the assumption that the deviations around Africa will continue this year, and therefore materially strengthen the supply and demand balance,” Jensen said. As for when container ships will contemplate returning to the Suez Canal, he said that discussion has been kicked down the road for at least another six months. “So realistically, we are probably looking at least six months into the future before anybody is going to start contemplating doing this again, and that is if we stop the war basically today,” Jensen said. Major container lines have mostly avoided the Red Sea/Suez route since late 2023, when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing the diversions around southern Africa. Those attacks stopped last October after the ceasefire agreement between Israel and Hamas, prompting some major carriers to resume transits through the volatile area on a small scale in recent months. Rising oil prices, congestion are a concern In the short term, oil prices, and therefore bunker fuel prices, will increase, which will impact container shipping costs. And that means ocean carriers will respond with increased fuel surcharges. “On account of the Middle East, the carriers will go gangbusters in terms of implementing as many and as high surcharges as humanly possible, and not just on trades to and from the Gulf, [but] everywhere,” Jensen said. “They will be called emergency fuel surcharges, emergency conflict surcharges, and whatever nice names, but they will be a reality. The only question is, how high will it go and how long will it last.” Even cargo owners who are shipping only from Asia to the US West Coast will feel an impact from events in the Middle East in terms of surcharges and disrupted operations in the form of knock-on congestion. “You’re going to get all of these congestion effects in Asia that [are] going to impact everything and everyone, so you’re going to see these surcharges also on the Pacific,” Jensen said. Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com .

TPM26: War a problem for container shipping, but not ‘pandemic-scale’: analyst

<div class="phx-topic abstract-wrapper">A sharp increase in imports from Asia, declining back-haul volume, and congestion delaying the return of empties are slowing down the repatriation of equipment back to Asia. </div>

A sharp increase in imports from Asia, declining back-haul volume, and congestion delaying the return of empties are slowing down the repatriation of equipment back to Asia.

<div class="phx-topic">Long Beach, California — The equipment imbalance on the Asia-Europe trade lane and repositioning empty containers is fast becoming a structural challenge for the region’s maxed-out ports, industry leaders said this week. While volume on the main Asia-Europe westbound lane increased 9.1% in 2025 against a capacity increase of 8.3% over the past two years, the backhaul trade volume was down 5.7% while capacity rose 11.5%, according to Nigel Pusey, CEO of Container Trades Statistics. “The container imbalance is the fundamental challenge of this trade, and how those boxes will continue to be fed in as the ability to recycle containers becomes more and more difficult,” Pusey told the Journal of Commerce’s TPM26 conference. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177005_0.1.jpg"></img></div>“Only 37% of the slots going between Europe and the Far East were actually carrying commercial cargo,” he added. Hanna Stelzel, director of containers at the Port of Rotterdam, said empty repositioning was becoming a structural challenge for ports in Europe that are all operating at high utilization levels. “We had approximately 10% growth on Asia-Europe in 2025, but the growth was mainly coming from imports,” she told the conference. “China into Rotterdam grew 40% compared to 2024. We have declining exports, and Rotterdam is often the first and last port of call, and that is causing enormous challenges in empty repositioning.” Stelzel explained that empties took up room in container yards and require extra moves as the containers are repositioned from one terminal to another. “We are already operating at maximum capacity in Rotterdam and all those extra moves, especially of empty containers, are something we would like to avoid to keep the port more fluid and more efficient, and that’s not possible if you have those extreme numbers of equipment that needs to be repositioned,” she added. <h3>Second-half surge in Rotterdam volume </h3>Total <a href="https://www.joc.com/article/rotterdam-congestion-limits-benefit-of-second-half-surge-in-imports-6176418">container volume at the Port of Rotterdam grew 3.1% in 2025</a>, driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. The container imbalance and <a href="https://www.joc.com/article/tpm26-europes-persistent-port-congestion-wont-be-remedied-by-short-term-fixes-6180335">persistent port congestion in Europe</a> were also extending the life of the boxes, Pusey said. Instead of a container on the trade lane revolving three or four times a year, the increase in imports meant it was taking longer for carriers to discharge the containers, and the boxes were taking longer to be emptied and returned from inland locations. “That means you’ve actually got more boxes in the system and are having to find places to store them,” Pusey said. He warned that the war in the Middle East that has <a href="https://www.joc.com/article/carriers-pause-india-middle-east-cargo-bookings-amid-persian-gulf-port-chaos-6179223">halted shipping in the Persian Gulf</a> will worsen the current equipment imbalance. “The Middle East and India are interwoven into many schedules of many carriers, so there is going to be a massive impact,” Pusey said. “It’s probably far too early to say what’s going to happen, but the imbalance is going to get far worse.” Jakob Jeppesen, CEO of air and sea for Asia-Pacific at forwarder DSV, said Asia will continue to be a growth market for Europe as Asian brands expand their international presence. “When Asian brands go international, they look towards Europe,” Jeppesen told TPM26. “They will ship more than they need to build inventory to make sure that they have a resilient supply chain. We are seeing brands from India and from China. They used to be [original equipment] manufacturing, but now they want their own brands in retail stores, not only in e-commerce.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Long Beach, California — The equipment imbalance on the Asia-Europe trade lane and repositioning empty containers is fast becoming a structural challenge for the region’s maxed-out ports, industry leaders said this week. While volume on the main Asia-Europe westbound lane increased 9.1% in 2025 against a capacity increase of 8.3% over the past two years, the backhaul trade volume was down 5.7% while capacity rose 11.5%, according to Nigel Pusey, CEO of Container Trades Statistics. “The container imbalance is the fundamental challenge of this trade, and how those boxes will continue to be fed in as the ability to recycle containers becomes more and more difficult,” Pusey told the Journal of Commerce’s TPM26 conference. “Only 37% of the slots going between Europe and the Far East were actually carrying commercial cargo,” he added. Hanna Stelzel, director of containers at the Port of Rotterdam, said empty repositioning was becoming a structural challenge for ports in Europe that are all operating at high utilization levels. “We had approximately 10% growth on Asia-Europe in 2025, but the growth was mainly coming from imports,” she told the conference. “China into Rotterdam grew 40% compared to 2024. We have declining exports, and Rotterdam is often the first and last port of call, and that is causing enormous challenges in empty repositioning.” Stelzel explained that empties took up room in container yards and require extra moves as the containers are repositioned from one terminal to another. “We are already operating at maximum capacity in Rotterdam and all those extra moves, especially of empty containers, are something we would like to avoid to keep the port more fluid and more efficient, and that’s not possible if you have those extreme numbers of equipment that needs to be repositioned,” she added. Second-half surge in Rotterdam volume Total container volume at the Port of Rotterdam grew 3.1% in 2025 , driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. The container imbalance and persistent port congestion in Europe were also extending the life of the boxes, Pusey said. Instead of a container on the trade lane revolving three or four times a year, the increase in imports meant it was taking longer for carriers to discharge the containers, and the boxes were taking longer to be emptied and returned from inland locations. “That means you’ve actually got more boxes in the system and are having to find places to store them,” Pusey said. He warned that the war in the Middle East that has halted shipping in the Persian Gulf will worsen the current equipment imbalance. “The Middle East and India are interwoven into many schedules of many carriers, so there is going to be a massive impact,” Pusey said. “It’s probably far too early to say what’s going to happen, but the imbalance is going to get far worse.” Jakob Jeppesen, CEO of air and sea for Asia-Pacific at forwarder DSV, said Asia will continue to be a growth market for Europe as Asian brands expand their international presence. “When Asian brands go international, they look towards Europe,” Jeppesen told TPM26. “They will ship more than they need to build inventory to make sure that they have a resilient supply chain. We are seeing brands from India and from China. They used to be [original equipment] manufacturing, but now they want their own brands in retail stores, not only in e-commerce.” Contact Greg Knowler at greg.knowler@spglobal.com .

Port News

International ports

TPM26: Empty boxes pose structural challenge for Europe’s busy ports

<div class="phx-topic abstract-wrapper">While the White House has signaled support and Republicans hold a majority on the US Surface Transportation Board, opposition has surfaced that has many believing the $85 billion merger is not necessarily a done deal. </div>

While the White House has signaled support and Republicans hold a majority on the US Surface Transportation Board, opposition has surfaced that has many believing the $85 billion merger is not necessarily a done deal.

<div class="phx-topic">Most railroad industry stakeholders, including Union Pacific (UP) itself, reject the idea that federal regulators will “rubber stamp” the proposed $85 billion merger of UP with Norfolk Southern Railway, acknowledging the railroad will have to show that the deal enhances competition for it to be approved. Speculation about whether approval of the deal was a foregone conclusion began last September when President Donald Trump met with UP CEO Jim Vena at the White House, then posted a message on Truth Social expressing support for the transaction. There were other “positive” signs for UP as well. Trump last August fired Robert Primus from the regulatory body that will have final say on the deal — the US Surface Transportation Board (STB), saying Primus did not align with his “America First” agenda. Trump also nominated a third Republican to the STB, tilting the agency toward pro-business conservatives. And UP donated to the fund financing Trump’s efforts to build a White House ballroom. Despite those signals, most industry observers do not believe it makes approval of the deal a foregone conclusion. “People who are not in DC immediately took to heart when President Trump said, ‘Oh, that’s a good idea. Let’s have a merger,’ and thought it was a done deal. Those of us in DC knew that wasn’t the case,” Peter Friedmann, executive director of the Washington-based Agriculture Transportation Coalition (AgTC), said at the Journal of Commerce’s TPM26 conference this week. “You’ve got a railroad [BNSF Railway] that’s opposing it, and the chairman of the Senate Commerce Committee, Ted Cruz of Texas [who’s also opposed],” Friedmann added. Prior comments from Union Pacific executives have indicated the company doesn’t expect automatic approval merely because its CEO had a photo with the president. This week, the railroad simply said in a statement to the Journal of Commerce that it is “confident the Surface Transportation Board will conduct a rigorous review of our application to create a coast-to-coast railroad.” <h3>Ex-chairman says STB will act independently </h3>Martin Oberman, a former chairman of the STB, insists regulators will not decide the fate of the deal based on orders from Trump. Oberman was on the STB between 2019 and 2024 and served alongside current members Patrick Fuchs, Michelle Schultz, and Karen Hedlund. “Occasionally, one of us would say to the other, ‘I was confirmed by the Senate for the purpose of using my independent judgment. That’s what I do. That’s why I'm here,’" Oberman told the Journal of Commerce. “They’re all very conscious of that and treasure it, so they would be loath to, in reality or in perception, to be viewed as doing somebody’s political work." Oberman singled out Fuchs, the current STB chairman, as someone who is an independent thinker. “Patrick will rule based on the merits,” Oberman said. “Now, that is not to say that, on the merits, he and others may come to the conclusion that the merger should be approved, but it absolutely won’t be for political reasons.” Perhaps the best evidence approval won’t be a foregone conclusion, Oberman noted, is that <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">UP’s initial application was deemed “incomplete” in January</a>, requiring the railroad to make the appropriate changes and resubmit the application. UP plans to refile by April 30, which will kickstart another 30-day review. If deemed “complete” on the second attempt, then an exhaustive regulatory process would commence, including an environmental review and public hearings that will go into 2027. <h3>Republicans don’t universally support the deal </h3>Even with Trump’s support, Republicans aren’t universally supportive of the UP-NS deal. Nearly 50 Republicans in Congress wrote a letter to the STB in early February expressing concerns about the transaction. “Some of us are already hearing initial concerns about the UP-NS application and its lack of serious and meaningful commitments to enhance competition and protect against service meltdowns,” the letter read. “In light of this, the Board must consider with extreme care the potential risks posed by this transaction to determine whether it meets the public interest test.” A week later, seven Republican state attorneys general wrote a letter to the Department of Justice. “We believe that this merger is unnecessary,” the attorneys general wrote. “We cannot afford a merger that stalls America’s industrial momentum and respectfully ask the DOJ to utilize its unique expertise to scrutinize, and, if appropriate, oppose the deal.” Jon Gabriel, group vice president of consumer products for BNSF, said broad opposition to the deal proves the outcome is not pre-determined. “There are many lawmakers that have sent letters to the administration voicing concern or opposition; most of them are Republicans. So clearly, the fix is not in,” Gabriel said at TPM26. Still, there are plenty of stakeholders supporting the deal. Union Pacific’s initial application included more than 2,000 letters of support, including from more than 500 customers and 800 public officials and community leaders. Among the supporters are the Port of Los Angeles, ocean carriers Ocean Network Express and SM Lines, and domestic intermodal partners Hub Group and Knight Swift Transportation. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Most railroad industry stakeholders, including Union Pacific (UP) itself, reject the idea that federal regulators will “rubber stamp” the proposed $85 billion merger of UP with Norfolk Southern Railway, acknowledging the railroad will have to show that the deal enhances competition for it to be approved. Speculation about whether approval of the deal was a foregone conclusion began last September when President Donald Trump met with UP CEO Jim Vena at the White House, then posted a message on Truth Social expressing support for the transaction. There were other “positive” signs for UP as well. Trump last August fired Robert Primus from the regulatory body that will have final say on the deal — the US Surface Transportation Board (STB), saying Primus did not align with his “America First” agenda. Trump also nominated a third Republican to the STB, tilting the agency toward pro-business conservatives. And UP donated to the fund financing Trump’s efforts to build a White House ballroom. Despite those signals, most industry observers do not believe it makes approval of the deal a foregone conclusion. “People who are not in DC immediately took to heart when President Trump said, ‘Oh, that’s a good idea. Let’s have a merger,’ and thought it was a done deal. Those of us in DC knew that wasn’t the case,” Peter Friedmann, executive director of the Washington-based Agriculture Transportation Coalition (AgTC), said at the Journal of Commerce’s TPM26 conference this week. “You’ve got a railroad [BNSF Railway] that’s opposing it, and the chairman of the Senate Commerce Committee, Ted Cruz of Texas [who’s also opposed],” Friedmann added. Prior comments from Union Pacific executives have indicated the company doesn’t expect automatic approval merely because its CEO had a photo with the president. This week, the railroad simply said in a statement to the Journal of Commerce that it is “confident the Surface Transportation Board will conduct a rigorous review of our application to create a coast-to-coast railroad.” Ex-chairman says STB will act independently Martin Oberman, a former chairman of the STB, insists regulators will not decide the fate of the deal based on orders from Trump. Oberman was on the STB between 2019 and 2024 and served alongside current members Patrick Fuchs, Michelle Schultz, and Karen Hedlund. “Occasionally, one of us would say to the other, ‘I was confirmed by the Senate for the purpose of using my independent judgment. That’s what I do. That’s why I'm here,’" Oberman told the Journal of Commerce. “They’re all very conscious of that and treasure it, so they would be loath to, in reality or in perception, to be viewed as doing somebody’s political work." Oberman singled out Fuchs, the current STB chairman, as someone who is an independent thinker. “Patrick will rule based on the merits,” Oberman said. “Now, that is not to say that, on the merits, he and others may come to the conclusion that the merger should be approved, but it absolutely won’t be for political reasons.” Perhaps the best evidence approval won’t be a foregone conclusion, Oberman noted, is that UP’s initial application was deemed “incomplete” in January , requiring the railroad to make the appropriate changes and resubmit the application. UP plans to refile by April 30, which will kickstart another 30-day review. If deemed “complete” on the second attempt, then an exhaustive regulatory process would commence, including an environmental review and public hearings that will go into 2027. Republicans don’t universally support the deal Even with Trump’s support, Republicans aren’t universally supportive of the UP-NS deal. Nearly 50 Republicans in Congress wrote a letter to the STB in early February expressing concerns about the transaction. “Some of us are already hearing initial concerns about the UP-NS application and its lack of serious and meaningful commitments to enhance competition and protect against service meltdowns,” the letter read. “In light of this, the Board must consider with extreme care the potential risks posed by this transaction to determine whether it meets the public interest test.” A week later, seven Republican state attorneys general wrote a letter to the Department of Justice. “We believe that this merger is unnecessary,” the attorneys general wrote. “We cannot afford a merger that stalls America’s industrial momentum and respectfully ask the DOJ to utilize its unique expertise to scrutinize, and, if appropriate, oppose the deal.” Jon Gabriel, group vice president of consumer products for BNSF, said broad opposition to the deal proves the outcome is not pre-determined. “There are many lawmakers that have sent letters to the administration voicing concern or opposition; most of them are Republicans. So clearly, the fix is not in,” Gabriel said at TPM26. Still, there are plenty of stakeholders supporting the deal. Union Pacific’s initial application included more than 2,000 letters of support, including from more than 500 customers and 800 public officials and community leaders. Among the supporters are the Port of Los Angeles, ocean carriers Ocean Network Express and SM Lines, and domestic intermodal partners Hub Group and Knight Swift Transportation. Contact Ari Ashe at ari.ashe@spglobal.com .

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Industry stakeholders don’t see regulators rubber-stamping UP-NS deal

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