<div class="phx-topic abstract-wrapper">Noel Hacegaba made the announcement about the possible 1.8 million-TEU terminal during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero.</div>

Noel Hacegaba made the announcement about the possible 1.8 million-TEU terminal during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero.

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<div class="phx-topic">The Port of Long Beach is exploring the possibility of developing what its new CEO said Thursday would be the “first conventional, zero-emissions container terminal in the world.” Noel Hacegaba made the announcement during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero. Hacegaba said Long Beach has inked an exclusive agreement with Brookfield Infrastructure Group for the potential development of a 1.8 million-TEU terminal designed for express vessels of up to 9,000-TEU capacity. The facility, being called the Metro Express Terminal, would be built on Long Beach’s Pier S and use zero-emission, human-operated equipment, container peel-off operations, 24/7 gate access, free-flow cargo stacks and zero-emission trucks, he said. If it comes to fruition, Brookfield would partner with Nautilus International on the project, further details of which were not disclosed in Hacegaba’s presentation. That presentation made clear that the Port of Long Beach will leverage marine terminal expansion, massive investment in intermodal rail connectivity and the creation of a supply chain information highway to handle a projected doubling of container volume by 2050. That comes after the port handled a record 9.9 million laden and empty TEUs in 2025, according to data from the port. “According to our latest cargo forecast, 2050 is the year our container volumes will reach 20 million TEUs,” Hacegaba said. Long Beach forecasts it will handle about 9 million TEUs this year, which although down from 2025, will still rank among its top five years, he said. Long Beach faces an immediate challenge in adjusting to diminishing imports from China due to the Trump administration’s tariffs, and fewer exports to China because of that country’s counter tariffs. “Six years ago, about 70% of all our cargo — imports and exports — was tied to China,” Hacegaba said. “Today that’s down to 60%.” While the tariffs have fostered a shifting of US trade to Vietnam and other countries in Southeast Asia, it has also highlighted the importance of adding “speed, precision and reliability” to the Long Beach supply chain as it competes for cargo with other US ports, he said. <h3>Emphasis on on-dock rail connectivity </h3>Long Beach is investing $1.8 billion in its <a href="https://www.joc.com/article/inland-rail-connectivity-key-to-port-of-long-beach-growth-new-ceo-6133971">on-dock rail support facility at Pier B</a>, which is scheduled for completion in 2032. By assembling longer intermodal trains on dock rather than at near-dock sites that require a move by truck, the transfer of containers from vessel to train, which now takes slightly less than four days, will be reduced to 24 hours, Hacegaba said. “Our terminals are driving the movement of rail to inland points,” he said. “TTI (Total Terminals International) is already moving more than 50% of its containers by rail.” The <a href="https://www.joc.com/article/up-ns-deal-could-benefit-some-shippers-while-others-face-longer-transits-6143225">proposed merger of Union Pacific and Norfolk Southern</a>, which would create the nation’s first transcontinental railroad, holds the potential for faster, more efficient intermodal service to rail hubs in the eastern half of the country. Also, the announcement in November by BNSF Railway and CSX that they will <a href="https://www.joc.com/article/intermodal-cooperation-on-rails-has-declined-amid-cost-pressures-6152067">expand their intermodal partnership for service connecting Long Beach with rail terminals in the Ohio Valley and the Northeast</a> will cut transit times by as much as two days, Hacegaba said. Five of Long Beach’s six container terminals last year handled more than 1 million TEUs, with two of those facilities handling more than 2 million TEUs. International Transportation Service and Macquarie Asset Management in July broke ground on a project that will fill in a 19-acre slip at Pier G that will enhance operational efficiency and build a single, continuous wharf measuring 3,400 feet that will accommodate the berthing of two super-post Panamax ships at the same time, Hacegaba said. <h3>Data sharing within the supply chain </h3>Hacegaba also announced that development is beginning on Long Beach’s CargoNav digital platform that will navigate the supply chain one container at a time, from arrival on the dock to shipment to its final destination. Further information will be released in the coming months. Emphasizing the importance of data sharing among carriers, terminal operators, truckers, railroads and shippers, Long Beach several years ago unveiled its supply chain information highway through its community portal. “The goal was simple, end-to-end visibility via coast-to-coast connectivity,” Hacegaba said. Long Beach in the coming weeks will also launch a universal trucking appointment system that members of the Harbor Trucking Association asked for several years ago, he said. Projects that improve operational efficiency will be another priority, Hacegaba said, particularly those that continue to reduce harmful emissions from vessels, cargo-handling equipment, tugboats, trucks, and trains. “As we continue our quest to zero emissions, we remain laser-focused on our core mission — moving more cargo more quickly, safely, efficiently, and sustainably,” he said Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a></div>

The Port of Long Beach is exploring the possibility of developing what its new CEO said Thursday would be the “first conventional, zero-emissions container terminal in the world.” Noel Hacegaba made the announcement during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero. Hacegaba said Long Beach has inked an exclusive agreement with Brookfield Infrastructure Group for the potential development of a 1.8 million-TEU terminal designed for express vessels of up to 9,000-TEU capacity. The facility, being called the Metro Express Terminal, would be built on Long Beach’s Pier S and use zero-emission, human-operated equipment, container peel-off operations, 24/7 gate access, free-flow cargo stacks and zero-emission trucks, he said. If it comes to fruition, Brookfield would partner with Nautilus International on the project, further details of which were not disclosed in Hacegaba’s presentation. That presentation made clear that the Port of Long Beach will leverage marine terminal expansion, massive investment in intermodal rail connectivity and the creation of a supply chain information highway to handle a projected doubling of container volume by 2050. That comes after the port handled a record 9.9 million laden and empty TEUs in 2025, according to data from the port. “According to our latest cargo forecast, 2050 is the year our container volumes will reach 20 million TEUs,” Hacegaba said. Long Beach forecasts it will handle about 9 million TEUs this year, which although down from 2025, will still rank among its top five years, he said. Long Beach faces an immediate challenge in adjusting to diminishing imports from China due to the Trump administration’s tariffs, and fewer exports to China because of that country’s counter tariffs. “Six years ago, about 70% of all our cargo — imports and exports — was tied to China,” Hacegaba said. “Today that’s down to 60%.” While the tariffs have fostered a shifting of US trade to Vietnam and other countries in Southeast Asia, it has also highlighted the importance of adding “speed, precision and reliability” to the Long Beach supply chain as it competes for cargo with other US ports, he said. Emphasis on on-dock rail connectivity Long Beach is investing $1.8 billion in its on-dock rail support facility at Pier B , which is scheduled for completion in 2032. By assembling longer intermodal trains on dock rather than at near-dock sites that require a move by truck, the transfer of containers from vessel to train, which now takes slightly less than four days, will be reduced to 24 hours, Hacegaba said. “Our terminals are driving the movement of rail to inland points,” he said. “TTI (Total Terminals International) is already moving more than 50% of its containers by rail.” The proposed merger of Union Pacific and Norfolk Southern , which would create the nation’s first transcontinental railroad, holds the potential for faster, more efficient intermodal service to rail hubs in the eastern half of the country. Also, the announcement in November by BNSF Railway and CSX that they will expand their intermodal partnership for service connecting Long Beach with rail terminals in the Ohio Valley and the Northeast will cut transit times by as much as two days, Hacegaba said. Five of Long Beach’s six container terminals last year handled more than 1 million TEUs, with two of those facilities handling more than 2 million TEUs. International Transportation Service and Macquarie Asset Management in July broke ground on a project that will fill in a 19-acre slip at Pier G that will enhance operational efficiency and build a single, continuous wharf measuring 3,400 feet that will accommodate the berthing of two super-post Panamax ships at the same time, Hacegaba said. Data sharing within the supply chain Hacegaba also announced that development is beginning on Long Beach’s CargoNav digital platform that will navigate the supply chain one container at a time, from arrival on the dock to shipment to its final destination. Further information will be released in the coming months. Emphasizing the importance of data sharing among carriers, terminal operators, truckers, railroads and shippers, Long Beach several years ago unveiled its supply chain information highway through its community portal. “The goal was simple, end-to-end visibility via coast-to-coast connectivity,” Hacegaba said. Long Beach in the coming weeks will also launch a universal trucking appointment system that members of the Harbor Trucking Association asked for several years ago, he said. Projects that improve operational efficiency will be another priority, Hacegaba said, particularly those that continue to reduce harmful emissions from vessels, cargo-handling equipment, tugboats, trucks, and trains. “As we continue our quest to zero emissions, we remain laser-focused on our core mission — moving more cargo more quickly, safely, efficiently, and sustainably,” he said Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com

Port News

Container lines

Trans-Pacific

North American ports

Marine terminals

Container Shipping News

Maritime

Long Beach considering development of ‘conventional, zero-emissions' terminal: CEO

<div class="phx-topic abstract-wrapper">The terminal, developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports, aims to capture increasing east-west trade and is integrated with Egypt’s expanding transport network.</div>

The terminal, developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports, aims to capture increasing east-west trade and is integrated with Egypt’s expanding transport network.

<div class="phx-topic">Red Sea Container Terminals (RSCT) opened Egypt’s first semiautomated facility Thursday at Sokhna Port near the southern entrance to the Suez Canal. The new terminal was developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports and backed by a 30-year concession agreement with the Egyptian government. “With an investment exceeding $1.8 billion in the country, we recognize Egypt as a pivotal market at the intersection of key global trade routes,” Clemence Cheng, managing director for Europe at Hutchison Ports, said in a statement. The new terminal is coming online as major carriers begin to switch scheduled services from routes around the Cape of Good Hope to the Suez Canal and Red Sea. A <a href="https://www.joc.com/article/gemini-india-med-service-the-next-to-plan-return-to-red-seasuez-passage-6152941">Gemini Cooperation service on the India-Middle East-Mediterranean trade</a> is poised to <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">join Maersk’s MECL service</a> and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal. Situated a few kilometers south of the southern Suez Canal entrance and within the world’s deepest man-made port basin, RSCT’s Phase I includes a 1,200-meter berth, a water depth of 18 meters and an initial handling capacity of 1.7 million TEUs. Plans are in place to expand that to 3.5 million TEUs across 2.6 kilometers of quay. RSCT is integrated with Egypt’s expanding transport network, including direct highway and railway connections to major industrial zones, thus shortening transit times for imports, exports and transshipment. Major liners have mostly avoided the Red Sea/Suez route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. A Red Sea diversion tracker launched Wednesday by maritime consultancy Drewry found that in the week ended Jan. 11, 26 container ships — the highest number in five weeks — sailed through the Suez Canal.   Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.</div>

Red Sea Container Terminals (RSCT) opened Egypt’s first semiautomated facility Thursday at Sokhna Port near the southern entrance to the Suez Canal.  The new terminal was developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports and backed by a 30-year concession agreement with the Egyptian government.  “With an investment exceeding $1.8 billion in the country, we recognize Egypt as a pivotal market at the intersection of key global trade routes,” Clemence Cheng, managing director for Europe at Hutchison Ports, said in a statement.  The new terminal is coming online as major carriers begin to switch scheduled services from routes around the Cape of Good Hope to the Suez Canal and Red Sea. A  Gemini Cooperation service on the India-Middle East-Mediterranean trade  is poised to  join Maersk’s MECL service  and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal.  Situated a few kilometers south of the southern Suez Canal entrance and within the world’s deepest man-made port basin, RSCT’s Phase I includes a 1,200-meter berth, a water depth of 18 meters and an initial handling capacity of 1.7 million TEUs. Plans are in place to expand that to 3.5 million TEUs across 2.6 kilometers of quay.  RSCT is integrated with Egypt’s expanding transport network, including direct highway and railway connections to major industrial zones, thus shortening transit times for imports, exports and transshipment.  Major liners have mostly avoided the Red Sea/Suez route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa.  A Red Sea diversion tracker launched Wednesday by maritime consultancy Drewry found that in the week ended Jan. 11, 26 container ships — the highest number in five weeks — sailed through the Suez Canal.    Contact Greg Knowler at  greg.knowler@spglobal.com .

Asia-Europe

Egypt opens new semiautomated Red Sea terminal as Suez traffic grows

<div class="phx-topic abstract-wrapper">Data center construction in the US has more than doubled since 2023, helping to counterbalance slower construction of warehouses, notes Jason Miller.</div>

Data center construction in the US has more than doubled since 2023, helping to counterbalance slower construction of warehouses, notes Jason Miller.

<div class="phx-topic">The 2025 US freight market, especially the domestic truckload sector, underperformed expectations held at this time last year. The US Bureau of Labor Statistics’ (BLS) truckload producer price index (PPI), an estimate of the prices long-haul general freight carriers receive for trucking services, was down 1.8% year over year as of September, despite diesel prices rising 5.4% in the same period. This raises the question: Why did the market underperform expectations, including my own prediction that the truckload PPI would climb between 6% and 10% year over year by late 2025? <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6152975_0.1.jpg"></img></div>The strongest culprit for the underperformance was the Trump administration’s tariffs, and more specifically, the uncertainty created by their inconsistent implementation, with expansions and rollbacks often coming at a moment’s notice. Such uncertainty causes companies to postpone difficult-to-reverse investments, such as hiring new workers and expanding operations. Consistent with this, hiring by private employers reported by the BLS’s Job Openings and Labor Turnover Survey program has fallen to levels not seen since 2010, and manufacturing survey data on capital investment intentions aggregated across five regional Federal Reserve banks fell sharply in February after rising strongly in December 2024 and January 2025. With this in mind, I expect demand for trucking services to show limited growth in the first half of 2026, with the potential to improve in the second half. Seasonally adjusted single-family housing starts have consistently been down 7% to 11% year over year from March through August, the most recent data available, except for July. Improved housing activity has the potential to be the greatest catalyst for improved freight demand. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="37cf2651-a5fa-4c43-acf0-90fbc3d3695e"></dynamic-object></div>While cuts to the federal funds rate will make the financing of construction projects more affordable, uncertainty about raw material prices and labor availability — due in part to immigration crackdowns — may keep activity from rebounding as strongly as we would expect under conditions where the Federal Open Market Committee is loosening monetary policy. Manufacturing demand likewise remains muted, with seasonally adjusted new orders aggregated across five Federal Reserve banks falling back into contraction in November. Historically, multiple months of new orders exceeding a value of 7.5 on this index have preceded turns in truckload pricing dynamics in carriers’ favor within a few months. In contrast, sharp falls in this index have accurately predicted weakening market conditions. <h3>Economic uncertainty could dull impact of rate cuts </h3>Interest rate cuts should spur demand for manufactured goods, but elevated economic policy uncertainty can mute the demand-generating impact of interest rate cuts. Likewise, the Institute for Supply Management’s separate <a href="https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/pmi/november/">manufacturing survey</a> continues to suggest weak conditions at US plants. One sector likely to see continued strong demand through 2026 is the construction of data centers. Data center construction has more than doubled since 2023 and has helped counterbalance slower construction of warehouses. The need to equip data centers is further spurring demand for imported computers and electrical goods. Given weakness in other manufacturing sectors, such as paper — which generates more ton-miles of freight than transportation equipment plants — it is imperative carriers closely monitor for any signs of slowing data center construction activity. Regarding supply-side dynamics, while much has been written about heightened enforcement of English-language proficiency requirements, non-domiciled commercial drivers’ licenses and immigration enforcement of carriers in California, I remain skeptical that supply-side reductions alone will shift pricing dynamics in carriers’ favor. DAT’s most recent spot market pricing data showed that spot rates, adjusted for fuel prices, underperformed in November relative to October across dry-van, refrigerated and flatbed sectors compared with the same months in prior years. This is why demand factors will be front and center in 2026. Jason Miller is an associate professor of logistics at Michigan State University. Contact him at <a href="mailto:mill2831@broad.msu.edu">mill2831@broad.msu.edu.</a></div>

The 2025 US freight market, especially the domestic truckload sector, underperformed expectations held at this time last year. The US Bureau of Labor Statistics’ (BLS) truckload producer price index (PPI), an estimate of the prices long-haul general freight carriers receive for trucking services, was down 1.8% year over year as of September, despite diesel prices rising 5.4% in the same period. This raises the question: Why did the market underperform expectations, including my own prediction that the truckload PPI would climb between 6% and 10% year over year by late 2025? The strongest culprit for the underperformance was the Trump administration’s tariffs, and more specifically, the uncertainty created by their inconsistent implementation, with expansions and rollbacks often coming at a moment’s notice. Such uncertainty causes companies to postpone difficult-to-reverse investments, such as hiring new workers and expanding operations. Consistent with this, hiring by private employers reported by the BLS’s Job Openings and Labor Turnover Survey program has fallen to levels not seen since 2010, and manufacturing survey data on capital investment intentions aggregated across five regional Federal Reserve banks fell sharply in February after rising strongly in December 2024 and January 2025. With this in mind, I expect demand for trucking services to show limited growth in the first half of 2026, with the potential to improve in the second half. Seasonally adjusted single-family housing starts have consistently been down 7% to 11% year over year from March through August, the most recent data available, except for July. Improved housing activity has the potential to be the greatest catalyst for improved freight demand. While cuts to the federal funds rate will make the financing of construction projects more affordable, uncertainty about raw material prices and labor availability — due in part to immigration crackdowns — may keep activity from rebounding as strongly as we would expect under conditions where the Federal Open Market Committee is loosening monetary policy. Manufacturing demand likewise remains muted, with seasonally adjusted new orders aggregated across five Federal Reserve banks falling back into contraction in November. Historically, multiple months of new orders exceeding a value of 7.5 on this index have preceded turns in truckload pricing dynamics in carriers’ favor within a few months. In contrast, sharp falls in this index have accurately predicted weakening market conditions. Economic uncertainty could dull impact of rate cuts Interest rate cuts should spur demand for manufactured goods, but elevated economic policy uncertainty can mute the demand-generating impact of interest rate cuts. Likewise, the Institute for Supply Management’s separate manufacturing survey continues to suggest weak conditions at US plants. One sector likely to see continued strong demand through 2026 is the construction of data centers. Data center construction has more than doubled since 2023 and has helped counterbalance slower construction of warehouses. The need to equip data centers is further spurring demand for imported computers and electrical goods. Given weakness in other manufacturing sectors, such as paper — which generates more ton-miles of freight than transportation equipment plants — it is imperative carriers closely monitor for any signs of slowing data center construction activity. Regarding supply-side dynamics, while much has been written about heightened enforcement of English-language proficiency requirements, non-domiciled commercial drivers’ licenses and immigration enforcement of carriers in California, I remain skeptical that supply-side reductions alone will shift pricing dynamics in carriers’ favor. DAT’s most recent spot market pricing data showed that spot rates, adjusted for fuel prices, underperformed in November relative to October across dry-van, refrigerated and flatbed sectors compared with the same months in prior years. This is why demand factors will be front and center in 2026. Jason Miller is an associate professor of logistics at Michigan State University. Contact him at mill2831@broad.msu.edu.

Surface

Supply chain

‘Imperative’ that truckload carriers watch for any slowing in data center activity

<div class="phx-topic abstract-wrapper">The weekly loop, known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd, would join Maersk’s MECL service and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez.</div>

The weekly loop, known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd, would join Maersk’s MECL service and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez.

<div class="phx-topic">A Gemini Cooperation service on the India-Middle East-Mediterranean trade is poised to return to the shorter Red Sea/Suez Canal route “shortly,” a source at Gemini partner Maersk told the Journal of Commerce. The weekly loop — known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd — calls Jebel Ali (Dubai), Mundra and Nhava Sheva (India), Salalah (Oman), Port Tangier (Morocco), Valencia (Spain) and Port Said (Egypt). “Schedule readjustments are being worked out with Hapag-Lloyd to resume Red Sea transits,” said a Maersk executive with knowledge of the matter who did not want to be identified. “The service will shortly switch over.” Officially, the Danish carrier declined to provide any details of upcoming Gemini schedule changes when contacted by the Journal of Commerce. “Currently, we cannot comment on any future sailings,” Maersk said in an email response. The Gemini loop would <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">join Maersk’s MECL service</a> and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal. Major liners have mostly avoided the route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. <h3>Gemini has three India services </h3>The ME11/IMX schedule development should be viewed in the context of Gemini's operational fleet structure. For the India/Mediterranean trade coverage, Maersk has the flexibility to implement Red Sea/Suez transits because it is the sole tonnage provider, with space allotted to its partner, unlike the West India-North Europe string, which has a Hapag-Lloyd capacity sway. Overall, the Gemini framework has three services out of India: two serving northwestern markets via the ports of Nhava Sheva and Mundra and one linking the southeastern region via Ennore, near Chennai. Capacity utilization out of Ennore is facing pressure due to the general slowdown in Indian exports, with Gemini scaling down space allocations for 2026, forwarder sources in Chennai said. The India-Mediterranean trade is now a crowded field for mainline carriers, driven by the entry of several regional carriers, including Turkish participants, and non-vessel-operating common carriers trying to cash in on the Red Sea disruption with direct services. CMA CGM is <a href="https://www.joc.com/article/cma-cgm-reworks-india-med-loop-rotation-to-streamline-red-sea-operations-6142192">already operating its “Medex” service on the trade lane via the Red Sea/Suez route</a>, with the shift implemented in June 2025. Forwarder sources have put current average booking rates from Nhava Sheva to Port Said at between $1,400 and $1,500 per FEU, down about $200 over the past month despite sporadic sailing cuts on mainline services. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

A Gemini Cooperation service on the India-Middle East-Mediterranean trade is poised to return to the shorter Red Sea/Suez Canal route “shortly,” a source at Gemini partner Maersk told the Journal of Commerce. The weekly loop — known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd — calls Jebel Ali (Dubai), Mundra and Nhava Sheva (India), Salalah (Oman), Port Tangier (Morocco), Valencia (Spain) and Port Said (Egypt). “Schedule readjustments are being worked out with Hapag-Lloyd to resume Red Sea transits,” said a Maersk executive with knowledge of the matter who did not want to be identified. “The service will shortly switch over.” Officially, the Danish carrier declined to provide any details of upcoming Gemini schedule changes when contacted by the Journal of Commerce. “Currently, we cannot comment on any future sailings,” Maersk said in an email response. The Gemini loop would join Maersk’s MECL service and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal. Major liners have mostly avoided the route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. Gemini has three India services The ME11/IMX schedule development should be viewed in the context of Gemini's operational fleet structure. For the India/Mediterranean trade coverage, Maersk has the flexibility to implement Red Sea/Suez transits because it is the sole tonnage provider, with space allotted to its partner, unlike the West India-North Europe string, which has a Hapag-Lloyd capacity sway. Overall, the Gemini framework has three services out of India: two serving northwestern markets via the ports of Nhava Sheva and Mundra and one linking the southeastern region via Ennore, near Chennai. Capacity utilization out of Ennore is facing pressure due to the general slowdown in Indian exports, with Gemini scaling down space allocations for 2026, forwarder sources in Chennai said. The India-Mediterranean trade is now a crowded field for mainline carriers, driven by the entry of several regional carriers, including Turkish participants, and non-vessel-operating common carriers trying to cash in on the Red Sea disruption with direct services. CMA CGM is already operating its “Medex” service on the trade lane via the Red Sea/Suez route , with the shift implemented in June 2025. Forwarder sources have put current average booking rates from Nhava Sheva to Port Said at between $1,400 and $1,500 per FEU, down about $200 over the past month despite sporadic sailing cuts on mainline services. Contact Bency Mathew at bencyvmathew@gmail.com.

International ports

Gemini India-Med service the next to plan return to Red Sea/Suez passage

<div class="phx-topic abstract-wrapper">Tailwind Shipping, which emerged during the pandemic as a vessel operating arm of retailer Lidl, has enabled booking and shipment management tools within CargoWise, the widely used forwarding software platform.</div>

Tailwind Shipping, which emerged during the pandemic as a vessel operating arm of retailer Lidl, has enabled booking and shipment management tools within CargoWise, the widely used forwarding software platform.

<div class="phx-topic">Tailwind Shipping Lines, the vessel operating arm of supermarket retailer Lidl, said Wednesday it has integrated with CargoWise, the widely used forwarding software platform owned by WiseTech Global. The move links CargoWise to a key customer segment that WiseTech has recently chased since acquiring software provider E2open in May 2025. The integration with Tailwind enables forwarders to access within CargoWise the ocean booking, confirmation and management features for shipments moving on Tailwind vessels. That includes access to Tailwind’s schedules, dynamic rates and capacity, as well as the ability to digitally modify bookings without leaving CargoWise. “The direct integration with CargoWise removes manual steps from the process and ensures data consistency from start to finish,” Nico Peters, vice president of commercial management at Tailwind, said in a statement. “It is a smarter, more digital shipping experience built around speed and accuracy, which exactly mirrors Tailwind’s key characteristics.” Lidl launched Tailwind in 2022 amid global capacity constraints stemming from pandemic-induced container demand. The subsidiary has remained in business even as demand has normalized and now sells capacity to forwarders. It primarily handles the containerized transport of non-food goods, originally exclusively for Lidl, but now also for other customers. Tailwind operates three liner services: the Panda Express Service (PAX) between China and the Mediterranean; the Tiger Express Service (TEX) between Bangladesh, Malaysia, Vietnam, and Sri Lanka; and the European short-sea operator Dolphin Express Service (DEX), which transports goods between Barcelona in Spain and Moerdijk in the Netherlands. Those services are built around schedule reliability by focusing on minimal port calls at smaller ports. <h3>May extend to rail, inland services </h3>While Tailwind is a container line, its affiliation with one of Europe’s largest retailers is notable, given WiseTech’s $2.1 billion acquisition of E2open in 2022. E2open’s customer base is largely shippers, and analysts have speculated since the transaction that WiseTech would target shippers more directly in the years ahead, given it already has the vast majority of the world’s forwarders as customers for its transportation management, customs compliance and accounting tools. “More than 99% of the world’s ocean freight managed through CargoWise can be electronically booked directly with shipping lines and [non-vessel-operating common carriers],” Bjorn Schwarz, WiseTech’s integration and transformation manager, said in the statement. “Transparent real-time data sharing enables Tailwind to optimize their planning and capacity management and quickly act on market changes.” Schwarz said Tailwind customers using CargoWise benefit from a simplified booking experience that removes double data entry, eliminates unnecessary emails, reduces human errors, and enhances visibility and productivity. The companies said the plan is to extend the integration to eventually cover Tailwind’s rail and inland transport services. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Tailwind Shipping Lines, the vessel operating arm of supermarket retailer Lidl, said Wednesday it has integrated with CargoWise, the widely used forwarding software platform owned by WiseTech Global.  The move links CargoWise to a key customer segment that WiseTech has recently chased since acquiring software provider E2open in May 2025.  The integration with Tailwind enables forwarders to access within CargoWise the ocean booking, confirmation and management features for shipments moving on Tailwind vessels. That includes access to Tailwind’s schedules, dynamic rates and capacity, as well as the ability to digitally modify bookings without leaving CargoWise.  “The direct integration with CargoWise removes manual steps from the process and ensures data consistency from start to finish,” Nico Peters, vice president of commercial management at Tailwind, said in a statement. “It is a smarter, more digital shipping experience built around speed and accuracy, which exactly mirrors Tailwind’s key characteristics.”  Lidl launched Tailwind in 2022 amid global capacity constraints stemming from pandemic-induced container demand. The subsidiary has remained in business even as demand has normalized and now sells capacity to forwarders. It primarily handles the containerized transport of non-food goods, originally exclusively for Lidl, but now also for other customers.  Tailwind operates three liner services: the Panda Express Service (PAX) between China and the Mediterranean; the Tiger Express Service (TEX) between Bangladesh, Malaysia, Vietnam, and Sri Lanka; and the European short-sea operator Dolphin Express Service (DEX), which transports goods between Barcelona in Spain and Moerdijk in the Netherlands. Those services are built around schedule reliability by focusing on minimal port calls at smaller ports.  May extend to rail, inland services  While Tailwind is a container line, its affiliation with one of Europe’s largest retailers is notable, given WiseTech’s $2.1 billion acquisition of E2open in 2022. E2open’s customer base is largely shippers, and analysts have speculated since the transaction that WiseTech would target shippers more directly in the years ahead, given it already has the vast majority of the world’s forwarders as customers for its transportation management, customs compliance and accounting tools.  “More than 99% of the world’s ocean freight managed through CargoWise can be electronically booked directly with shipping lines and [non-vessel-operating common carriers],” Bjorn Schwarz, WiseTech’s integration and transformation manager, said in the statement. “Transparent real-time data sharing enables Tailwind to optimize their planning and capacity management and quickly act on market changes.”  Schwarz said Tailwind customers using CargoWise benefit from a simplified booking experience that removes double data entry, eliminates unnecessary emails, reduces human errors, and enhances visibility and productivity.  The companies said the plan is to extend the integration to eventually cover Tailwind’s rail and inland transport services.  Contact Eric Johnson at  eric.johnson@spglobal.com .

Forwarding

Logistics Technology News

Shipper-turned-carrier integrates with CargoWise to target forwarder business

<div class="phx-topic abstract-wrapper">Canada’s eastern-most port has completed the final phase of a project that has added a new berth and increased track capacity for handling intermodal rail. </div>

Canada’s eastern-most port has completed the final phase of a project that has added a new berth and increased track capacity for handling intermodal rail.

<div class="phx-topic">Canada’s Port of Saint John has completed a four-year project to upgrade its marine terminal that will quadruple its container handling capability; allow it to handle large, post-Panamax ships; and provide more intermodal rail capacity. The Port of Saint John said Tuesday that the C$247 million project at DP World’s Westside terminal was completed in December. The two-phase project — <a href="https://www.joc.com/article/saint-john-attracts-42-million-to-increase-port-capacity-5224858">funded primarily by the port along with the province of New Brunswick and Canada’s Transport Ministry</a> — has brought Saint John’s nominal capacity to 800,000 TEUs, up from 150,000 TEUs in 2021. The main feature of the work, part of the project’s first phase, is an additional 1,131-foot berth with a 56-foot depth alongside, allowing Saint John to handle vessels of 10,000 TEUs or larger. The largest ship that currently calls Saint John is approximately 7,000 TEUs. Saint John said it also increased laydown and yard space at the terminal. The terminal will also have expanded track capacity for building longer intermodal train blocks, making it capable of building blocks of roughly 8,000 feet, up from the original 3,000-foot length. The Port of Saint John is served primarily by Canadian Pacific Kansas City (CPKC), which has the shortest track distance between the port and eastern Canada’s major cities. But it also has service from Canadian National, as well as southbound connections into the US via CSX Transportation. The port said completion of the first phase of the project has already resulted in a 400% year-over-year increase in its container throughput, to 240,000 TEUs in 2025. Aligns with federal investment plan Although planned years ahead of time, Saint John’s terminal upgrades <a href="https://www.joc.com/article/canada-looks-for-new-container-gateways-for-decoupling-from-us-6122714">are aligned with the Canadian government’s goal announced in November</a> of investing C$5 billion in trade infrastructure, the port’s statement said. The investments in new trade infrastructure stem from Canada’s move to lessen its trade reliance on the US. Saint John “is a national asset that will help move more Canadian goods to global markets, more efficiently and reliably,” Canada’s Minister of Transport Steve MacKinnon said in the statement. Saint John primarily serves Canada’s trans-Atlantic trade, with vessel transits from European ports making up the majority of its vessel calls, according to data from Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. The port also serves as a gateway for eastern Canada’s north-south trades with South America and the Caribbean. Saint John is also boosting its cold-chain capacity, <a href="https://www.joc.com/article/americold-adding-port-saint-john-warehouse-as-part-of-cpkc-alliance-5933184">with Americold building a refrigerated warehouse</a> just outside the port that will connect to CPKC’s network. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Canada’s Port of Saint John has completed a four-year project to upgrade its marine terminal that will quadruple its container handling capability; allow it to handle large, post-Panamax ships; and provide more intermodal rail capacity. The Port of Saint John said Tuesday that the C$247 million project at DP World’s Westside terminal was completed in December. The two-phase project — funded primarily by the port along with the province of New Brunswick and Canada’s Transport Ministry — has brought Saint John’s nominal capacity to 800,000 TEUs, up from 150,000 TEUs in 2021. The main feature of the work, part of the project’s first phase, is an additional 1,131-foot berth with a 56-foot depth alongside, allowing Saint John to handle vessels of 10,000 TEUs or larger. The largest ship that currently calls Saint John is approximately 7,000 TEUs. Saint John said it also increased laydown and yard space at the terminal. The terminal will also have expanded track capacity for building longer intermodal train blocks, making it capable of building blocks of roughly 8,000 feet, up from the original 3,000-foot length. The Port of Saint John is served primarily by Canadian Pacific Kansas City (CPKC), which has the shortest track distance between the port and eastern Canada’s major cities. But it also has service from Canadian National, as well as southbound connections into the US via CSX Transportation. The port said completion of the first phase of the project has already resulted in a 400% year-over-year increase in its container throughput, to 240,000 TEUs in 2025. Aligns with federal investment plan Although planned years ahead of time, Saint John’s terminal upgrades are aligned with the Canadian government’s goal announced in November of investing C$5 billion in trade infrastructure, the port’s statement said. The investments in new trade infrastructure stem from Canada’s move to lessen its trade reliance on the US. Saint John “is a national asset that will help move more Canadian goods to global markets, more efficiently and reliably,” Canada’s Minister of Transport Steve MacKinnon said in the statement. Saint John primarily serves Canada’s trans-Atlantic trade, with vessel transits from European ports making up the majority of its vessel calls, according to data from Sea-web, a sister product of the Journal of Commerce within S&P Global. The port also serves as a gateway for eastern Canada’s north-south trades with South America and the Caribbean. Saint John is also boosting its cold-chain capacity, with Americold building a refrigerated warehouse just outside the port that will connect to CPKC’s network. Contact Michael Angell at michael.angell@spglobal.com .

Canada’s Port of Saint John ready for larger ships, more containers

<div class="phx-topic abstract-wrapper">As AI becomes embedded across global trade workflows, the companies that stand apart will be the ones that treat identity, consent and authorization as core infrastructure.</div>

As AI becomes embedded across global trade workflows, the companies that stand apart will be the ones that treat identity, consent and authorization as core infrastructure.

<div class="phx-topic">Global trade runs on trust, long before it runs on technology. Every day, cargo, data and cash move across borders through a complex network of shippers, forwarders, airlines, ground handlers, customs authorities, banks and regulators. While technology supports these flows, accountability for them still concentrates in one place: the forwarder. Forwarders sit at the intersection of commercial commitment and regulatory responsibility. They carry the risk when descriptions are wrong, classifications are incomplete, tariffs are misapplied or known shipper requirements are not met. Whether it is EU tariff enforcement, customs declarations, security filings or payment settlement, errors propagate outward but consequences flow back. Despite decades of digitization efforts, much of global trade still operates on email, spreadsheets, PDFs and human judgment. That reality is not accidental. It reflects the need to verify who is acting, on whose authority and with what accountability. Artificial intelligence is now changing this environment in subtle but important ways. When automation blurs authorization I was recently pitched on a marketing service that promised to improve outbound engagement using AI. The model was straightforward: automated emails sent on behalf of a company, written in its voice, referencing its brand and measured through open and click rates. The reported results were better than industry benchmarks. By traditional marketing standards, it looked successful. The concern was not performance, but authorization. When asked who had granted permission to use the company’s identity to communicate externally, the answer was implicit rather than explicit. The system was optimized for activity, not accountability. This approach is not new. Variations of it have existed for decades. What has changed is scale. Large language models make it easy to generate convincing, personalized communication that appears legitimate, authorized and informed, even when it is not. To the recipient, such outreach is indistinguishable from spam. But to the represented company, it quietly introduces reputational and security risk. Why this matters more in air cargo In air freight and global trade, identity is not cosmetic; it is operational. Forwarders do not simply coordinate movement; they certify information. They stand behind documentation. They are relied upon by regulators, airlines and customers to ensure that what is declared matches what moves. As AI-generated communication becomes more prevalent, the industry faces a growing gap between who appears to be speaking and who is accountable if something goes wrong. This gap is especially dangerous in an environment where compliance requirements are tightening. From tariff enforcement to known shipper programs to data accuracy mandates, regulators are not reducing expectations; they are increasing them. Yet many commercial practices, particularly around outreach and representation, are evolving without similar discipline. Reframing security in global trade Much of the AI discussion in logistics focuses on data security. That focus is necessary but incomplete. Equally important is identity security: Who is authorized to represent a company, under what conditions, with what auditability, and how does the counterparty know? Other industries have addressed similar risks through Know Your Customer (KYC) and Know Your Business (KYB) standards. Logistics already applies analogous rigor to cargo movement. The same rigor should apply to how companies represent themselves digitally. The lesson here is not that forwarders need more tools to know what moved, where it went or when it arrived. Most already have that visibility. What they need is confidence that the information entering the system is authorized, intentional and accountable. As AI becomes embedded across global trade workflows, the companies that stand apart will not be the loudest or the most automated. They will be the ones that treat identity, consent and authorization as core infrastructure. Efficiency gained at the expense of trust is not progress. In global trade, it is deferred risk, and that risk more often than not lands squarely on the forwarder. Chris Condon is CEO of Aircon and can be reached at <a href="mailto:ccondon@aircon.ai">ccondon@aircon.ai.</a></div>

Global trade runs on trust, long before it runs on technology. Every day, cargo, data and cash move across borders through a complex network of shippers, forwarders, airlines, ground handlers, customs authorities, banks and regulators. While technology supports these flows, accountability for them still concentrates in one place: the forwarder. Forwarders sit at the intersection of commercial commitment and regulatory responsibility. They carry the risk when descriptions are wrong, classifications are incomplete, tariffs are misapplied or known shipper requirements are not met. Whether it is EU tariff enforcement, customs declarations, security filings or payment settlement, errors propagate outward but consequences flow back. Despite decades of digitization efforts, much of global trade still operates on email, spreadsheets, PDFs and human judgment. That reality is not accidental. It reflects the need to verify who is acting, on whose authority and with what accountability. Artificial intelligence is now changing this environment in subtle but important ways. When automation blurs authorization I was recently pitched on a marketing service that promised to improve outbound engagement using AI. The model was straightforward: automated emails sent on behalf of a company, written in its voice, referencing its brand and measured through open and click rates. The reported results were better than industry benchmarks. By traditional marketing standards, it looked successful. The concern was not performance, but authorization. When asked who had granted permission to use the company’s identity to communicate externally, the answer was implicit rather than explicit. The system was optimized for activity, not accountability. This approach is not new. Variations of it have existed for decades. What has changed is scale. Large language models make it easy to generate convincing, personalized communication that appears legitimate, authorized and informed, even when it is not. To the recipient, such outreach is indistinguishable from spam. But to the represented company, it quietly introduces reputational and security risk. Why this matters more in air cargo In air freight and global trade, identity is not cosmetic; it is operational. Forwarders do not simply coordinate movement; they certify information. They stand behind documentation. They are relied upon by regulators, airlines and customers to ensure that what is declared matches what moves. As AI-generated communication becomes more prevalent, the industry faces a growing gap between who appears to be speaking and who is accountable if something goes wrong. This gap is especially dangerous in an environment where compliance requirements are tightening. From tariff enforcement to known shipper programs to data accuracy mandates, regulators are not reducing expectations; they are increasing them. Yet many commercial practices, particularly around outreach and representation, are evolving without similar discipline. Reframing security in global trade Much of the AI discussion in logistics focuses on data security. That focus is necessary but incomplete. Equally important is identity security: Who is authorized to represent a company, under what conditions, with what auditability, and how does the counterparty know? Other industries have addressed similar risks through Know Your Customer (KYC) and Know Your Business (KYB) standards. Logistics already applies analogous rigor to cargo movement. The same rigor should apply to how companies represent themselves digitally. The lesson here is not that forwarders need more tools to know what moved, where it went or when it arrived. Most already have that visibility. What they need is confidence that the information entering the system is authorized, intentional and accountable. As AI becomes embedded across global trade workflows, the companies that stand apart will not be the loudest or the most automated. They will be the ones that treat identity, consent and authorization as core infrastructure. Efficiency gained at the expense of trust is not progress. In global trade, it is deferred risk, and that risk more often than not lands squarely on the forwarder. Chris Condon is CEO of Aircon and can be reached at ccondon@aircon.ai.

In an AI-driven trade system, identity matters as much as capacity

<div class="phx-topic abstract-wrapper">The future of LTL classification will be shaped by systems that function in real operations, standards that scale and modernization grounded in how freight actually moves. </div>

The future of LTL classification will be shaped by systems that function in real operations, standards that scale and modernization grounded in how freight actually moves.

<div class="phx-topic">“Classification Reimagined” is an industry-driven initiative and has accomplished all its objectives, and then some. Less-than-truckload (LTL) freight is complex and is not parcel by nature for carriers, shippers and brokers. But the National Motor Freight Traffic Association (NMFTA) simplified it. Shipments differ widely in density, handling, stowability, liability and damage risk. That complexity is exactly why the National Motor Freight Classification (NMFC) exists. A shared, standardized way to describe freight is not optional in LTL; it is foundational. Modernizing the widely used system matters because the freight it describes has not become simpler. A <a href="https://www.joc.com/article/nmfta-can-still-achieve-its-goals-on-pricing-model-then-disband-6148914">recent Journal of Commerce commentary</a> argues that LTL freight classification is obsolete and proposes replacing it with a parcel-style pricing model based only on dimensions and weight. It also claims that NMFTA’s modernization effort, Classification Reimagined, is too incremental to succeed. That argument ignores what has already been implemented, why the work was intentionally phased, and how extensively the industry has shaped the changes. <h3>Classification Reimagined is active and market-driven </h3>Classification Reimagined was not conceived in isolation. It was driven by repeated, concrete feedback from carriers, shippers, brokers and technology providers who cited inconsistent application of the NMFC, unnecessary complexity and barriers to automation. The objective has been clear from the start: improve consistency, support digital workflows, implement AI and modernize classification without destabilizing pricing, contracts or operations, and embrace the shift toward density for many items. <h3>What has already changed </h3>Density is now a primary driver for many commodities, aligning class determination with how freight actually consumes space and affects network efficiency. The expansion to 13-sub density scale provides more precision while remaining usable in real-world operations. Changes are being implemented in phases by design. Classification affects rating engines, contracts, billing, procurement, audits and software. Industry participants explicitly asked for a measured rollout to avoid operational disruption. NMFTA has delivered digital-first tools, including ClassIT+ and application programming interfaces, that support automation and reduce manual interpretation. These tools are already in use. These are not theoretical improvements. They are live, operational changes adopted at the industry’s request and average 40,000 searches per day. <h3>Why the ‘pricing failure’ argument falls short </h3>The prior commentary argues that classification is irrelevant because carriers can price however they choose. That shows a lack of LTL understanding. Pricing flexibility does not eliminate the need for standardized freight descriptions. The NMFC underpins billing accuracy, dispute resolution, audit consistency and transparency across the shipment lifecycle. Even in a contract-driven market, LTL depends on a common language. The commentary also criticizes modernization for being incomplete. That criticism ignores reality and an understanding of what the industry really asked for. A rapid, wholesale rewrite of classification would create confusion, system failures and contract disputes. Industry stakeholders made it clear that success required a phased approach they could absorb. Incremental implementation is not hesitation — it is how change actually works in LTL. Notably, the commentary was written without engagement in the Classification Reimagined process. The author did not participate in working sessions or discussions with NMFTA, although had the opportunity on several occasions. Criticism is welcome, but it is most credible when grounded in the facts of the program being criticized. <h3>Industry engagement has been extensive </h3>For more than a year, NMFTA has actively engaged carriers, shippers, brokers, logistics providers and technology companies. The feedback has been consistent. Users report clearer rules, better alignment with actual freight characteristics, reduced ambiguity and improved opportunities for automation. The pace of change has allowed organizations to adapt without disruption. That outcome reflects intent, not accident. <h3>LTL is not parcel </h3>The commentary assumes LTL could operate like parcel if pricing were based solely on cube and weight. That assumption ignores core LTL realities. Dimensional data alone does not capture handling complexity, stowability constraints, liability exposure, hazardous materials or damage risk. Parcel networks work because the freight is relatively uniform. LTL freight is not. Classification exists because those differences materially affect cost and operations. <h3>Modernizing classification does not mean eliminating NMFTA </h3>The commentary also questions the value of NMFTA itself. That reflects a narrow view of NMFTA’s role. In addition to stewarding the NMFC, NMFTA provides essential industry infrastructure, including the Standard Carrier Alpha Code, digital data standards through the Digital Standards Development Council, cybersecurity initiatives and neutral technical forums the industry relies on to solve shared problems. <h3>A practical path forward </h3>The future of LTL classification will be shaped by systems that function in real operations, standards that scale and modernization grounded in how freight actually moves. Classification Reimagined is already delivering measurable improvements. Progress will continue deliberately, informed by industry participation — not abstract theory. Contact Debbie Sparks at <a href="mailto:Debbie.Sparks@nmfta.org">Debbie.Sparks@nmfta.org.</a></div>

“Classification Reimagined” is an industry-driven initiative and has accomplished all its objectives, and then some. Less-than-truckload (LTL) freight is complex and is not parcel by nature for carriers, shippers and brokers. But the National Motor Freight Traffic Association (NMFTA) simplified it. Shipments differ widely in density, handling, stowability, liability and damage risk. That complexity is exactly why the National Motor Freight Classification (NMFC) exists. A shared, standardized way to describe freight is not optional in LTL; it is foundational. Modernizing the widely used system matters because the freight it describes has not become simpler. A recent Journal of Commerce commentary argues that LTL freight classification is obsolete and proposes replacing it with a parcel-style pricing model based only on dimensions and weight. It also claims that NMFTA’s modernization effort, Classification Reimagined, is too incremental to succeed. That argument ignores what has already been implemented, why the work was intentionally phased, and how extensively the industry has shaped the changes. Classification Reimagined is active and market-driven Classification Reimagined was not conceived in isolation. It was driven by repeated, concrete feedback from carriers, shippers, brokers and technology providers who cited inconsistent application of the NMFC, unnecessary complexity and barriers to automation. The objective has been clear from the start: improve consistency, support digital workflows, implement AI and modernize classification without destabilizing pricing, contracts or operations, and embrace the shift toward density for many items. What has already changed Density is now a primary driver for many commodities, aligning class determination with how freight actually consumes space and affects network efficiency. The expansion to 13-sub density scale provides more precision while remaining usable in real-world operations. Changes are being implemented in phases by design. Classification affects rating engines, contracts, billing, procurement, audits and software. Industry participants explicitly asked for a measured rollout to avoid operational disruption. NMFTA has delivered digital-first tools, including ClassIT+ and application programming interfaces, that support automation and reduce manual interpretation. These tools are already in use. These are not theoretical improvements. They are live, operational changes adopted at the industry’s request and average 40,000 searches per day. Why the ‘pricing failure’ argument falls short The prior commentary argues that classification is irrelevant because carriers can price however they choose. That shows a lack of LTL understanding. Pricing flexibility does not eliminate the need for standardized freight descriptions. The NMFC underpins billing accuracy, dispute resolution, audit consistency and transparency across the shipment lifecycle. Even in a contract-driven market, LTL depends on a common language. The commentary also criticizes modernization for being incomplete. That criticism ignores reality and an understanding of what the industry really asked for. A rapid, wholesale rewrite of classification would create confusion, system failures and contract disputes. Industry stakeholders made it clear that success required a phased approach they could absorb. Incremental implementation is not hesitation — it is how change actually works in LTL. Notably, the commentary was written without engagement in the Classification Reimagined process. The author did not participate in working sessions or discussions with NMFTA, although had the opportunity on several occasions. Criticism is welcome, but it is most credible when grounded in the facts of the program being criticized. Industry engagement has been extensive For more than a year, NMFTA has actively engaged carriers, shippers, brokers, logistics providers and technology companies. The feedback has been consistent. Users report clearer rules, better alignment with actual freight characteristics, reduced ambiguity and improved opportunities for automation. The pace of change has allowed organizations to adapt without disruption. That outcome reflects intent, not accident. LTL is not parcel The commentary assumes LTL could operate like parcel if pricing were based solely on cube and weight. That assumption ignores core LTL realities. Dimensional data alone does not capture handling complexity, stowability constraints, liability exposure, hazardous materials or damage risk. Parcel networks work because the freight is relatively uniform. LTL freight is not. Classification exists because those differences materially affect cost and operations. Modernizing classification does not mean eliminating NMFTA The commentary also questions the value of NMFTA itself. That reflects a narrow view of NMFTA’s role. In addition to stewarding the NMFC, NMFTA provides essential industry infrastructure, including the Standard Carrier Alpha Code, digital data standards through the Digital Standards Development Council, cybersecurity initiatives and neutral technical forums the industry relies on to solve shared problems. A practical path forward The future of LTL classification will be shaped by systems that function in real operations, standards that scale and modernization grounded in how freight actually moves. Classification Reimagined is already delivering measurable improvements. Progress will continue deliberately, informed by industry participation — not abstract theory. Contact Debbie Sparks at Debbie.Sparks@nmfta.org.

‘Classification Reimagined’ is improving LTL — and the industry asked for it

West

East

Gulf

PIERS containerized US import and export volumes is the transportation industry’s largest US waterborne trade data set, covering all US ports. Every day, the PIERS team processes an average of about 60,000 bills of lading filed with US Customs and Border Protection (CBP) and integrates this transactional trade data with standardized company details. PIERS contains US trade data going back to 2003. [PIERS](https://www.spglobal.com/marketintelligence/en/mi/products/piers.html)

Asia to US West, East and Gulf Coast YTD container volume market share (PIERS)

PIERS TEU market share US coastal imports from Asia (YTD) Gateway

<div class="phx-topic abstract-wrapper">Operating conditions could also turn expected losses in 2026 into profits despite little clarity over the timing of a widespread return to Red Sea transits, according to the consultancy.</div>

Operating conditions could also turn expected losses in 2026 into profits despite little clarity over the timing of a widespread return to Red Sea transits, according to the consultancy.

<div class="phx-topic">Ocean carriers are expected to report better-than-expected full-year 2025 results over the next few weeks due to higher profit margins through the third quarter and slowing fleet growth, according to maritime consultancy Drewry. Although rates softened and volume slowed on the major east-west trade lanes through the fourth quarter, Drewry is also revising its prior loss-making forecast for 2026. The consultancy now expects the industry to turn a profit despite little clarity over the timing of a widespread return to Red Sea transits that would release 8% of global capacity back into an already oversupplied market. Simon Heaney, senior manager for container research at Drewry, said the container shipping sector’s earnings before interest and taxes (EBIT) margins fell to 12.3% in the third quarter of 2025, well below the 34.5% margin recorded in third-quarter 2024 but still a significant rate-supported improvement on the 7.9% margin in the 2025 second quarter. “This was an unexpected change of direction as we had anticipated that margins would shrink further in 3Q 2025,” Heaney told the Journal of Commerce Tuesday.  The “better-than-expected results” has prompted Drewry to upgrade the financial year 2025 profit forecast from $20 billion to $32 billion and raise the outlook for 2026 from a $10 billion loss to a $1 billion profit, he noted. HSBC Global Investment Research highlighted the narrowing supply-demand gap in a market update that pointed to data showing container fleet growth slowing to 4% in 2026 from 7% in 2025, with demand growth this year slowing to 2.5% compared to 4% in 2025. The report said, “... we think the gap is manageable before worsening in 2027 when [vessel] deliveries surge to all-time highs.” “Demand is holding up despite US container imports declining in the past few months and the National Retail Federation expecting weakness until April, albeit milder than previous forecasts,” HSBC noted.  On the Asia-Europe trade, the latest data from Container Trades Statistics (CTS) shows a 15.5% year-over-year increase in volume in November, which HSBC said indicated <a href="https://www.joc.com/article/asia-europe-ocean-carriers-add-capacity-as-trade-enters-peak-shipping-period-6145059">a pre-Lunar New Year peak season rush</a>. Still no clarity over return to Red Sea A return of container shipping to the Red Sea hangs over the 2026 outlook, with the timing of such a return likely to have a material influence on carrier earnings. Analysts remain divided over when a widescale return will happen. Carriers have mostly avoided the Red Sea and Suez Canal since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza. “We see no immediate resolution to the Red Sea disruptions, which alongside ongoing port congestion in Europe should keep capacity tight and prevent freight rates from capitulating,” HSBC said. J.P. Morgan had a more positive view, noting that a 20% increase in Suez transits in December compared to the previous month has created growing interest around shipping’s return to the far-quicker route. “We expect this to happen post-Lunar New Year on Feb. 17, and we see limited disruption risk of congestion in Europe materially impacting short-term rates should the timing coincide with the seasonal trough,” the investment bank noted. Peter Sand, chief analyst for rate benchmarking platform Xeneta, said it was “highly unlikely” carriers would present extensive guidance on a Red Sea return in their 2026 outlooks. He expected carriers to maintain Cape of Good Hope transits around southern Africa while planning for a gradual shift to the Suez route. Another Maersk vessel transits Suez Following the successful transit of the Maersk Sebarok through the Suez and Red Sea in December, the carrier sent the Maersk Denver through the waterway this week; both vessels are part of the MECL service linking India to the US East Coast. However, in a customer advisory Tuesday, Maersk was quick to reiterate its position that the safety of crew, vessels and cargo remained “of utmost importance,” noting the necessary safety measures were applied during the transit of the Maersk Denver.  “Customers with cargo on this vessel are being informed directly,” the carrier said. “Assuming that security thresholds continue to be met, we will continue our stepwise approach towards gradually resuming navigation along the east-west corridor via the Suez Canal and the Red Sea. There are no additional sailings to announce at this time.”  While the ceasefire between Israel and Hamas that was agreed to in October is holding, rapidly unfolding geopolitical events in the region are again raising red flags, according to Jack Kennedy, head of Middle East and North Africa country risk at S&amp;P Global Market Intelligence. “If Israel gets involved in [new] strikes on Iran, there is a higher likelihood that the Houthi will resume some kind of direct attacks on Israel from Yemen, and that might extend to US shipping with acknowledgment that this increases risk from targeting issues,” Kennedy said. "If the regime in Tehran perceives a genuine existential risk, they will probably try to escalate across the region to create an intervention reassessment from the US,” he added.  S&amp;P Global is the parent company of the Journal of Commerce. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Ocean carriers are expected to report better-than-expected full-year 2025 results over the next few weeks due to higher profit margins through the third quarter and slowing fleet growth, according to maritime consultancy Drewry.  Although rates softened and volume slowed on the major east-west trade lanes through the fourth quarter, Drewry is also revising its prior loss-making forecast for 2026. The consultancy now expects the industry to turn a profit despite little clarity over the timing of a widespread return to Red Sea transits that would release 8% of global capacity back into an already oversupplied market.  Simon Heaney, senior manager for container research at Drewry, said the container shipping sector’s earnings before interest and taxes (EBIT) margins fell to 12.3% in the third quarter of 2025, well below the 34.5% margin recorded in third-quarter 2024 but still a significant rate-supported improvement on the 7.9% margin in the 2025 second quarter.  “This was an unexpected change of direction as we had anticipated that margins would shrink further in 3Q 2025,” Heaney told the Journal of Commerce Tuesday.   The “better-than-expected results” has prompted Drewry to upgrade the financial year 2025 profit forecast from $20 billion to $32 billion and raise the outlook for 2026 from a $10 billion loss to a $1 billion profit, he noted.  HSBC Global Investment Research highlighted the narrowing supply-demand gap in a market update that pointed to data showing container fleet growth slowing to 4% in 2026 from 7% in 2025, with demand growth this year slowing to 2.5% compared to 4% in 2025.  The report said, “... we think the gap is manageable before worsening in 2027 when [vessel] deliveries surge to all-time highs.”  “Demand is holding up despite US container imports declining in the past few months and the National Retail Federation expecting weakness until April, albeit milder than previous forecasts,” HSBC noted.   On the Asia-Europe trade, the latest data from Container Trades Statistics (CTS) shows a 15.5% year-over-year increase in volume in November, which HSBC said indicated  a pre-Lunar New Year peak season rush .  Still no clarity over return to Red Sea  A return of container shipping to the Red Sea hangs over the 2026 outlook, with the timing of such a return likely to have a material influence on carrier earnings. Analysts remain divided over when a widescale return will happen. Carriers have mostly avoided the Red Sea and Suez Canal since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza.  “We see no immediate resolution to the Red Sea disruptions, which alongside ongoing port congestion in Europe should keep capacity tight and prevent freight rates from capitulating,” HSBC said.  J.P. Morgan had a more positive view, noting that a 20% increase in Suez transits in December compared to the previous month has created growing interest around shipping’s return to the far-quicker route.  “We expect this to happen post-Lunar New Year on Feb. 17, and we see limited disruption risk of congestion in Europe materially impacting short-term rates should the timing coincide with the seasonal trough,” the investment bank noted.  Peter Sand, chief analyst for rate benchmarking platform Xeneta, said it was “highly unlikely” carriers would present extensive guidance on a Red Sea return in their 2026 outlooks. He expected carriers to maintain Cape of Good Hope transits around southern Africa while planning for a gradual shift to the Suez route.  Another Maersk vessel transits Suez  Following the successful transit of the Maersk Sebarok through the Suez and Red Sea in December, the carrier sent the Maersk Denver through the waterway this week; both vessels are part of the MECL service linking India to the US East Coast.  However, in a customer advisory Tuesday, Maersk was quick to reiterate its position that the safety of crew, vessels and cargo remained “of utmost importance,” noting the necessary safety measures were applied during the transit of the Maersk Denver.   “Customers with cargo on this vessel are being informed directly,” the carrier said. “Assuming that security thresholds continue to be met, we will continue our stepwise approach towards gradually resuming navigation along the east-west corridor via the Suez Canal and the Red Sea. There are no additional sailings to announce at this time.”   While the ceasefire between Israel and Hamas that was agreed to in October is holding, rapidly unfolding geopolitical events in the region are again raising red flags, according to Jack Kennedy, head of Middle East and North Africa country risk at S&P Global Market Intelligence.  “If Israel gets involved in [new] strikes on Iran, there is a higher likelihood that the Houthi will resume some kind of direct attacks on Israel from Yemen, and that might extend to US shipping with acknowledgment that this increases risk from targeting issues,” Kennedy said.  "If the regime in Tehran perceives a genuine existential risk, they will probably try to escalate across the region to create an intervention reassessment from the US,” he added.   S&P Global is the parent company of the Journal of Commerce.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

‘Unexpected’ margin boost in Q3 2025 to lift ocean carriers’ full-year results – Drewry 

<div class="phx-topic abstract-wrapper">STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected.</div>

STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected.

<div class="phx-topic">STG Logistics, the US’s fourth-largest asset-based intermodal marketing company, filed for Chapter 11 bankruptcy protection in New Jersey Monday, entering a court-supervised restructuring that the company said will reduce its debt while keeping freight moving without disruption. STG will reduce funded debt by approximately $952 million, a deleveraging of about 91%, while securing commitments for up to $150 million of new capital, according to the agreement included in the bankruptcy filing. STG, which maintains a large drayage presence in the Port of New York and New Jersey, among other East Coast ports, expects to emerge from Chapter 11 in about five months. The new financing will be structured as debtor-in-possession financing, a form of court-approved bankruptcy that provides cash while STG continues day-to-day operations. The restructuring will change after STG exits bankruptcy. The financing is known as a debt-for-equity swap, under which the participating lender group will trade its debt claims for ownership of the business upon exiting bankruptcy. The new ownership group will be private equity firms Antares Capital, Fortress Investment Group and Invesco, which were part of a controversial 2024 financing transaction that triggered litigation by STG’s minority lenders. Ohio-based STG owns approximately 15,000 domestic containers, behind J.B. Hunt Transport Services, Hub Group and Schneider National. STG also operates a joint service with CSX Transportation called RailPlus, a door-to-door domestic intermodal product covering nearly 350 lanes across the US. STG owns 32 warehouses across North America and offers transloading operations for international shippers. The company runs agency-based ocean drayage operations in US ports and inland rail ramps. STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected. Employees and drivers will continue to be paid, as will key vendors, including rail partners such as CSX and Union Pacific Railroad. STG’s bankruptcy was anticipated as the company faces multiple lawsuits and lacks the financial resiliency of larger intermodal competitors to navigate a freight recession approaching its fourth year. S&amp;P Global, the parent company of the Journal of Commerce, lowered STG’s credit rating in July to CCC, warning that free cash flow would end 2025 at $110 million in the red and that STG could run out of money early this year. A CCC rating is considered speculative-grade credit with a high risk of default. STG hired Kirkland &amp; Ellis and PJT Partners, firms known for bankruptcy filings, credit analysts at Octus reported last month. <h3>Lawsuits affected </h3>STG’s bankruptcy will impact two legal disputes involving the company. New Jersey Attorney General Matthew Platkin sued STG Logistics in December 2023 for worker misclassification, seeking back wages and penalties for more than 300 drivers. The lawsuit centers on the rules governing who qualifies as an employee versus an independent contractor. Like California’s AB5, New Jersey applies an “ABC test” that presumes employee status unless a company can satisfy three “prongs,” a high bar in drayage and trucking models. Those prongs are that the worker is free from the control of the hiring entity, that the work is performed outside the usual course of company business and that the worker is engaged in an independently established trade or occupation. The New Jersey case would be frozen and transferred to the bankruptcy court. The bankruptcy filing comes a week after a New York state judge allowed another lawsuit by minority lenders Axos Financial and Siemens Financial Services to move forward, according to The Wall Street Journal. Axos and Siemens were lenders in STG’s 2022 financing to acquire the intermodal division of XPO Logistics. In October 2024, STG announced a $300 million financing package, but Axos and Siemens later sued, alleging the deal also functioned as a liability-management transaction that shifted collateral and other protections toward new lenders, leaving them with weaker claims in bankruptcy. The October 2024 transaction included Antares, Fortress and Invesco, according to the Journal. The New York judge described the Axos and Siemens allegations as “lender bullying,” the Journal reported. Axos and Siemens were not parties to the agreement filed with the court. The filing triggers an automatic stay to the New York case, pausing litigation against the debtor as the restructuring proceeds. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

STG Logistics, the US’s fourth-largest asset-based intermodal marketing company, filed for Chapter 11 bankruptcy protection in New Jersey Monday, entering a court-supervised restructuring that the company said will reduce its debt while keeping freight moving without disruption. STG will reduce funded debt by approximately $952 million, a deleveraging of about 91%, while securing commitments for up to $150 million of new capital, according to the agreement included in the bankruptcy filing. STG, which maintains a large drayage presence in the Port of New York and New Jersey, among other East Coast ports, expects to emerge from Chapter 11 in about five months. The new financing will be structured as debtor-in-possession financing, a form of court-approved bankruptcy that provides cash while STG continues day-to-day operations. The restructuring will change after STG exits bankruptcy. The financing is known as a debt-for-equity swap, under which the participating lender group will trade its debt claims for ownership of the business upon exiting bankruptcy. The new ownership group will be private equity firms Antares Capital, Fortress Investment Group and Invesco, which were part of a controversial 2024 financing transaction that triggered litigation by STG’s minority lenders. Ohio-based STG owns approximately 15,000 domestic containers, behind J.B. Hunt Transport Services, Hub Group and Schneider National. STG also operates a joint service with CSX Transportation called RailPlus, a door-to-door domestic intermodal product covering nearly 350 lanes across the US. STG owns 32 warehouses across North America and offers transloading operations for international shippers. The company runs agency-based ocean drayage operations in US ports and inland rail ramps. STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected. Employees and drivers will continue to be paid, as will key vendors, including rail partners such as CSX and Union Pacific Railroad. STG’s bankruptcy was anticipated as the company faces multiple lawsuits and lacks the financial resiliency of larger intermodal competitors to navigate a freight recession approaching its fourth year. S&P Global, the parent company of the Journal of Commerce, lowered STG’s credit rating in July to CCC, warning that free cash flow would end 2025 at $110 million in the red and that STG could run out of money early this year. A CCC rating is considered speculative-grade credit with a high risk of default. STG hired Kirkland & Ellis and PJT Partners, firms known for bankruptcy filings, credit analysts at Octus reported last month. Lawsuits affected STG’s bankruptcy will impact two legal disputes involving the company. New Jersey Attorney General Matthew Platkin sued STG Logistics in December 2023 for worker misclassification, seeking back wages and penalties for more than 300 drivers. The lawsuit centers on the rules governing who qualifies as an employee versus an independent contractor. Like California’s AB5, New Jersey applies an “ABC test” that presumes employee status unless a company can satisfy three “prongs,” a high bar in drayage and trucking models. Those prongs are that the worker is free from the control of the hiring entity, that the work is performed outside the usual course of company business and that the worker is engaged in an independently established trade or occupation. The New Jersey case would be frozen and transferred to the bankruptcy court. The bankruptcy filing comes a week after a New York state judge allowed another lawsuit by minority lenders Axos Financial and Siemens Financial Services to move forward, according to The Wall Street Journal. Axos and Siemens were lenders in STG’s 2022 financing to acquire the intermodal division of XPO Logistics. In October 2024, STG announced a $300 million financing package, but Axos and Siemens later sued, alleging the deal also functioned as a liability-management transaction that shifted collateral and other protections toward new lenders, leaving them with weaker claims in bankruptcy. The October 2024 transaction included Antares, Fortress and Invesco, according to the Journal. The New York judge described the Axos and Siemens allegations as “lender bullying,” the Journal reported. Axos and Siemens were not parties to the agreement filed with the court. The filing triggers an automatic stay to the New York case, pausing litigation against the debtor as the restructuring proceeds. Contact Ari Ashe at ari.ashe@spglobal.com .

Intermodal providers

STG files Ch. 11 bankruptcy, but intermodal operations remain intact

<div class="phx-topic abstract-wrapper">Most major carriers have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite a lack of global regulatory support.</div>

Most major carriers have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite a lack of global regulatory support.

<div class="phx-topic">Dual-fuel vessels capable of running on liquefied natural gas (LNG) continue to dominate the container shipping order book despite ongoing uncertainty around global emissions-cutting regulations.  While the overall newbuilding market across all shipping segments fell to 2,403 orders, down from 4,405 in 2024, new orders in container shipping rose from 447 in 2024 to 547 in 2025, accounting for 49% of all gross tonnage and 68% of alternative-fuel new orders, according to classification society DNV. “The resilience of the alternative fuels order book in 2025 is mainly driven by cargo owners who have set their own emissions reduction goals despite [the] market slowdown and regulatory uncertainty,” Jason Stefanatos, global decarbonization director at DNV, said in a market update Monday. "We see [ocean carriers] prioritizing investments where there is a strong alignment between fuel infrastructure, regulatory certainty and commercial viability, particularly in container shipping, where LNG and methanol are supported by established supply chains and customer demand,” he added. The chance for shipping to become the first global industry to implement emissions-reducing regulations was lost in October when <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">US-led opposition derailed the International Maritime Organization (IMO) net-zero framework</a> at a pivotal Marine Environmental Protection Committee (MEPC) meeting in London. The net-zero framework was postponed for at least a year and possibly longer if the US continues to lobby against it. At issue is the price differential between conventional bunker fuels and greener fuels. A global price on emissions is key to narrowing the price gap, spurring demand and giving green fuel producers an incentive to invest in production. The MEPC will meet again this coming October, and although the delay may hurt the broader case for investment in the development of alternative fuels and related infrastructure, container carriers and shipowners remain firmly focused on LNG as the top green fuel of choice in newbuild vessel orders. Net-zero targets set by carriers Most of the major carriers in container shipping have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite the regulatory uncertainty.  Data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that just over 4 million TEUs of capacity for LNG dual-fuel ships was on order in 2025, compared to 2 million TEUs of methanol-capable vessels. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8be4ac1-33cb-4758-93c4-1d0f92f52e7d"></dynamic-object></div>LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress toward decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it <a href="https://www.joc.com/article/maersks-lng-order-hedges-bet-on-green-fuel-technology-ceo-5703200">pivoted from methanol to LNG in late 2024</a> for its next round of 50-60 vessels. DNV said in its market update that investment in fuel infrastructure was continuing at pace, with 22 LNG bunker vessels added to the orderbook alongside new bunkering vessels capable of supplying methanol and biofuel. These developments signal growing confidence in LNG supply chains and emerging multifuel capabilities, reducing operational risk and supporting the economics of alternative fuel adoption. With the IMO delay in adopting global decarbonization measures throwing interim greenhouse gas emissions targets into doubt, improving the fuel efficiency of vessels has attained even greater importance, particularly in Europe. The EU Emissions Trading System (ETS) carbon tax and maritime fuel intensity regulations will come into full effect this year, and cutting vessel emissions will directly impact a carrier’s operating costs. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Dual-fuel vessels capable of running on liquefied natural gas (LNG) continue to dominate the container shipping order book despite ongoing uncertainty around global emissions-cutting regulations.   While the overall newbuilding market across all shipping segments fell to 2,403 orders, down from 4,405 in 2024, new orders in container shipping rose from 447 in 2024 to 547 in 2025, accounting for 49% of all gross tonnage and 68% of alternative-fuel new orders, according to classification society DNV.  “The resilience of the alternative fuels order book in 2025 is mainly driven by cargo owners who have set their own emissions reduction goals despite [the] market slowdown and regulatory uncertainty,” Jason Stefanatos, global decarbonization director at DNV, said in a market update Monday.  "We see [ocean carriers] prioritizing investments where there is a strong alignment between fuel infrastructure, regulatory certainty and commercial viability, particularly in container shipping, where LNG and methanol are supported by established supply chains and customer demand,” he added.  The chance for shipping to become the first global industry to implement emissions-reducing regulations was lost in October when  US-led opposition derailed the International Maritime Organization (IMO) net-zero framework  at a pivotal Marine Environmental Protection Committee (MEPC) meeting in London. The net-zero framework was postponed for at least a year and possibly longer if the US continues to lobby against it.  At issue is the price differential between conventional bunker fuels and greener fuels. A global price on emissions is key to narrowing the price gap, spurring demand and giving green fuel producers an incentive to invest in production.  The MEPC will meet again this coming October, and although the delay may hurt the broader case for investment in the development of alternative fuels and related infrastructure, container carriers and shipowners remain firmly focused on LNG as the top green fuel of choice in newbuild vessel orders.  Net-zero targets set by carriers  Most of the major carriers in container shipping have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite the regulatory uncertainty.   Data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that just over 4 million TEUs of capacity for LNG dual-fuel ships was on order in 2025, compared to 2 million TEUs of methanol-capable vessels.  LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress toward decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it  pivoted from methanol to LNG in late 2024  for its next round of 50-60 vessels.  DNV said in its market update that investment in fuel infrastructure was continuing at pace, with 22 LNG bunker vessels added to the orderbook alongside new bunkering vessels capable of supplying methanol and biofuel. These developments signal growing confidence in LNG supply chains and emerging multifuel capabilities, reducing operational risk and supporting the economics of alternative fuel adoption.  With the IMO delay in adopting global decarbonization measures throwing interim greenhouse gas emissions targets into doubt, improving the fuel efficiency of vessels has attained even greater importance, particularly in Europe. The EU Emissions Trading System (ETS) carbon tax and maritime fuel intensity regulations will come into full effect this year, and cutting vessel emissions will directly impact a carrier’s operating costs.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

Transport, Trade and Regulation News

Solid growth evident in LNG order book despite regulatory uncertainty 

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Electronic Data Interchange (EDI) has long been the backbone of global commerce, quietly facilitating trillions in transactions. Yet, despite its critical role, traditional EDI has remained notoriously complex, labor-intensive, viewed as antique, and costly. Companies have historically grappled with cumbersome mapping processes, intricate partner-specific logic, and extended onboarding timelines. Now, as industries increasingly adopt agile digital frameworks, the limitations of conventional EDI solutions have become glaringly apparent. Enter Mosaic, an innovative solution unveiled by Orderful, which promises to radically streamline and modernize EDI integration through artificial intelligence. Orderful, already recognized for simplifying supply chain data exchanges, has now introduced Mosaic as the first AI-enriched EDI integration product that completely removes traditional mapping processes. At its core, Mosaic represents a fundamental shift from legacy EDI protocols, replacing archaic, code-heavy formats such as X12 and EDIFACT with modern, easy to use JSON inputs oriented around system-of-record concepts. This alone significantly lowers the barrier to integration, allowing teams accustomed to modern SaaS API development to seamlessly adopt EDI workflows. Mosaic's AI-powered engine ingests and interprets trading partner requirements as well as millions of actual transactions to build reliable, reuseable, self-healing integration which translating data into partner-specific formats without manual intervention. Such automated adaptability is unprecedented in the EDI landscape and promises a marked reduction in implementation timelines, from what once took months or even years, down to mere weeks. Erik Kiser, founder and CEO of Orderful, understands firsthand the pain points of traditional EDI. Having built integrations himself early in his career, Kiser founded Orderful specifically to address the persistent challenges that frustrate businesses across the supply chain. "Nobody has been more frustrated by EDI than I have," Kiser notes candidly. "Those experiences are precisely why Orderful and now Mosaic exist." Mosaic further distinguishes itself by embedding real-time validation and debugging, streamlining error resolution from lengthy processes into rapid, straightforward fixes. Developers, traditionally burdened by the complexities of partner-specific requirements and intricate coding standards, now gain an intuitive, self-service environment. This reduction in complexity not only accelerates implementation but also reduces operational overhead, offering critical advantages in today’s fast-paced business environment. Brian Roberts, general partner at Andreessen Horowitz and Orderful board member, underscores Mosaic's industry impact: "Mosaic has taken one of the most entrenched bottlenecks in enterprise technology, EDI mapping, and replaced it with an AI-native product that adapts automatically. It’s exactly the type of innovation the industry has been missing." While Mosaic initially supports the complete Order-to-Cash lifecycle, covering purchase orders, acknowledgments, shipping notices, and invoices, the platform is designed for continuous growth and expansion. Orderful sees Mosaic not merely as a product but as a foundational architecture poised to support a broader range of data flows and integrations, aligning perfectly with the scalable requirements of global businesses. “The underlying unified data model not only lets us act as the universal connector, but also enables us to build product once that applies to all partners. This includes EDI functionality like order splitting and consolidation, but also unlocks powerful analytics and insights for our customers to help them grow their business,” said Will Benish, principal product manager at Orderful. Security and reliability are integral to Mosaic’s infrastructure, evidenced by SOC 2 Type II compliance and OAuth 2.0 integration. Additionally, the platform guarantees robust performance, boasting sub-second transaction speeds and immediate access to an extensive network of over 10,000 trading partners. For businesses already utilizing Orderful, Mosaic offers a seamless upgrade pathway, allowing organizations to embrace the future of EDI without disrupting their current trading partner relationships. New clients will find Mosaic’s approach refreshingly modern, providing immediate gains in speed, ease of integration, and scalability. Mosaic represents more than just an incremental improvement; it's a visionary leap forward in how enterprises manage and leverage supply chain data. As businesses grapple with increasingly complex global supply networks, Orderful’s Mosaic emerges as a timely and essential tool, providing clarity, agility, and unprecedented simplicity. Mosaic elevates EDI, providing businesses with a streamlined and efficient pathway to rapidly integrate, adapt, and scale in today's dynamic market. “Mosaic wouldn’t have been possible to build even three years ago. The work our team has put in has been extraordinary, combining cutting edge AI techniques with our deep experience with EDI and our rich library of trading partner guidelines and requirements,” said Benish. To learn more about how Mosaic can transform your EDI capabilities and streamline your integration processes or request a demonstration at <a href="https://www.orderful.com/product/mosaic" rel="noreferrer" class="joc_admin__link">www.orderful.com/product/mosaic</a>.

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From 1940s Roots to AI-Driven Future: Reinventing EDI for Today's Supply Chains

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