<div class="phx-topic abstract-wrapper">The moves come as capacity from Asia to the East and West coasts of South America has risen sharply this year, and as Mexico plans hefty tariffs against China.</div>

The moves come as capacity from Asia to the East and West coasts of South America has risen sharply this year, and as Mexico plans hefty tariffs against China.

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<div class="phx-topic">Ocean carriers are pushing rate increases and revamping services on Asia-to-Latin American routes amid booming trade, especially between China and Brazil. Trade between China and Mexico, however, faces tariff headwinds beginning in January. CMA CGM said it would increase rates by $1,000 per container from all Asia ports to the East and West coasts of South America, Mexico and the Caribbean from Jan. 1. The price hike would apply to dry, reefer, paying empties and out-of-gauge cargo, the carrier said in an advisory Thursday. The move comes about a month after Hapag-Lloyd said it would hike rates by $1,000 per container on the same trades. The carrier’s increase, which took effect from Dec. 1, raised rates for a 20-foot container from Asia to the East Coast of South America (ECSA) from $1,200 to $2,200 and for a 40-foot box from $1,400 to $2,400. Asia-West Coast South America and Asia-West Coast Mexico rates are slightly less, increasing from $1,100 to $2,100 for a 20-foot container and $1,300 to $2,300 for a 40-footer, Hapag said. By comparison, rates from Shanghai to Brazil’s Port of Santos were pegged at $1,291 per TEU as of Thursday, according to the Shanghai Shipping Exchange, with rates from Shanghai to Mexico’s Manzanillo at $1,294 per TEU. North Asia-ECSA rates were at $1,525 per FEU as of Wednesday, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="69a20079-176d-4590-97c9-677559ec748f"></dynamic-object></div>“Carriers have been finding it difficult to make rate increases stick,” a senior executive at a Sao Paolo freight forwarder told the Journal of Commerce. “Hapag-Lloyd’s November increase was the second in as many weeks after it announced a $1,000 per container increase from Nov.15.” Lackluster rate performance is partly due to the influx of new capacity, which has surged along with trade. Actual capacity deployed on Asia-WCSA in December is 370,825 TEUs, up from 234,935 TEUs a year ago, according to eeSea data displayed on the Journal of Commerce’s <a href="https://www.joc.com/gateway/Asia_to_Americas#Asia-Mexico%2FSouth%20America%20rates">Gateway platform</a>. Similarly, actual capacity on Asia-ECSA services for December rose to 299,490 TEUs, up from 191,429 TEUs in December 2024, the eeSea data showed. “Our Chinese agents have been warning us that the rates should go up in early January,” Mauricio Fisch, director of Brazil freight forwarder Ocean Express, told the Journal of Commerce. “The volume of import goods seems to be stable, and I don’t see a big pressure on capacity until the end of the first quarter,” Fisch added. <h3>Carriers expand networks </h3>Highlighting the buoyant trade, official government figures show the value of Brazil’s exports to China increased 34% to $9.2 billion this year through October against $7 million in the same period a year earlier. Imports from China slipped 3% to $6.7 billion in the same period. “South America’s trade relationships continue to diversify, with China becoming an increasingly important partner,” Ocean Network Express said in a commentary on China-South America trade. That has prompted carriers to expand their networks in the region. CMA CGM and Maersk said Friday they would revamp their joint Asia-ECSA (SEAS3/ASAS2) service by adding port calls at Itajai in Brazil and Hong Kong, while dropping Vũng Tàu in Vietnam, starting with the departure of the 6,350-TEU Prestige from Shanghai on Dec. 30. “Weekly calls in Itajai on top of Santos [will provide the] fastest transit time in the market both [for] imports and exports from central China,” CMA CGM said in an advisory announcing the change. Transit time from Itajai to Singapore is 25 days, with 33 days to Shanghai. The new full rotation is Shanghai, Hong Kong, Shekou, Singapore, Santos, Itajai and Singapore. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="0a4c1e7e-2956-4186-b6de-e38dce7f57e0"></dynamic-object></div>CMA CGM is also reshuffling its Asia-West Coast of Mexico and Central America services, adding a call at Ensenada on its Mexico Express M2X service starting Jan. 5, specifically designed for perishable and fresh meat exports from Mexico to Asia. “M2X will operate once again as a fully dedicated service to Mexico, improving speed, reliability and market relevance,” CMA CGM said in an advisory Friday. The new rotation is Shekou, Ningbo, Shanghai, Tianjin Xingang, Qingdao, Ensenada, Manzanillo, Lazaro Cardenas and Yokohama. The rotation change means Buenaventura in Colombia has been dropped from the M2X loop but will be restored to the Asia Central South America 1 (ACSA 1) service starting from Pusan on Feb. 23. The changes reverse alterations CMA CGM made to both services last May. CMA CGM also announced Friday that Manzanillo would be added to its Pacific East Coast 2 (PEX2) service linking Pusan and China with Latin America and the Caribbean starting from Vũng Tàu on Dec. 27. The carrier said the Manzanillo call will provide a “new solution for [the] Mexico import/export market starting 2026.” CMA CGM said the changes would also see Singapore dropped from the rotation from Feb. 16 when the full rotation will be Vũng Tàu, Shekou, Hong Kong, Ningbo, Shanghai, Qingdao, Pusan, Manzanillo (Mexico), Balboa, Panama Canal, Manzanillo (Panama), Cartagena, Kingston, Caucedo and Vũng Tàu. The service shuffles for Mexico come just as the country introduces tariffs of up to 50% on 1,400 products from countries including China, Thailand and Indonesia from Jan. 1. The levies, intended to boost domestic manufacturing, will apply to imports from countries that do not have a free trade agreement with Mexico. China’s Commerce Ministry said the tariffs will “substantially harm the interests of trading partners, including China.” Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Ocean carriers are pushing rate increases and revamping services on Asia-to-Latin American routes amid booming trade, especially between China and Brazil. Trade between China and Mexico, however, faces tariff headwinds beginning in January. CMA CGM said it would increase rates by $1,000 per container from all Asia ports to the East and West coasts of South America, Mexico and the Caribbean from Jan. 1. The price hike would apply to dry, reefer, paying empties and out-of-gauge cargo, the carrier said in an advisory Thursday. The move comes about a month after Hapag-Lloyd said it would hike rates by $1,000 per container on the same trades. The carrier’s increase, which took effect from Dec. 1, raised rates for a 20-foot container from Asia to the East Coast of South America (ECSA) from $1,200 to $2,200 and for a 40-foot box from $1,400 to $2,400. Asia-West Coast South America and Asia-West Coast Mexico rates are slightly less, increasing from $1,100 to $2,100 for a 20-foot container and $1,300 to $2,300 for a 40-footer, Hapag said. By comparison, rates from Shanghai to Brazil’s Port of Santos were pegged at $1,291 per TEU as of Thursday, according to the Shanghai Shipping Exchange, with rates from Shanghai to Mexico’s Manzanillo at $1,294 per TEU. North Asia-ECSA rates were at $1,525 per FEU as of Wednesday, according to Platts, a sister company of the Journal of Commerce within S&P Global. “Carriers have been finding it difficult to make rate increases stick,” a senior executive at a Sao Paolo freight forwarder told the Journal of Commerce. “Hapag-Lloyd’s November increase was the second in as many weeks after it announced a $1,000 per container increase from Nov.15.” Lackluster rate performance is partly due to the influx of new capacity, which has surged along with trade. Actual capacity deployed on Asia-WCSA in December is 370,825 TEUs, up from 234,935 TEUs a year ago, according to eeSea data displayed on the Journal of Commerce’s Gateway platform . Similarly, actual capacity on Asia-ECSA services for December rose to 299,490 TEUs, up from 191,429 TEUs in December 2024, the eeSea data showed. “Our Chinese agents have been warning us that the rates should go up in early January,” Mauricio Fisch, director of Brazil freight forwarder Ocean Express, told the Journal of Commerce. “The volume of import goods seems to be stable, and I don’t see a big pressure on capacity until the end of the first quarter,” Fisch added. Carriers expand networks Highlighting the buoyant trade, official government figures show the value of Brazil’s exports to China increased 34% to $9.2 billion this year through October against $7 million in the same period a year earlier. Imports from China slipped 3% to $6.7 billion in the same period. “South America’s trade relationships continue to diversify, with China becoming an increasingly important partner,” Ocean Network Express said in a commentary on China-South America trade. That has prompted carriers to expand their networks in the region. CMA CGM and Maersk said Friday they would revamp their joint Asia-ECSA (SEAS3/ASAS2) service by adding port calls at Itajai in Brazil and Hong Kong, while dropping Vũng Tàu in Vietnam, starting with the departure of the 6,350-TEU Prestige from Shanghai on Dec. 30. “Weekly calls in Itajai on top of Santos [will provide the] fastest transit time in the market both [for] imports and exports from central China,” CMA CGM said in an advisory announcing the change. Transit time from Itajai to Singapore is 25 days, with 33 days to Shanghai. The new full rotation is Shanghai, Hong Kong, Shekou, Singapore, Santos, Itajai and Singapore. CMA CGM is also reshuffling its Asia-West Coast of Mexico and Central America services, adding a call at Ensenada on its Mexico Express M2X service starting Jan. 5, specifically designed for perishable and fresh meat exports from Mexico to Asia. “M2X will operate once again as a fully dedicated service to Mexico, improving speed, reliability and market relevance,” CMA CGM said in an advisory Friday. The new rotation is Shekou, Ningbo, Shanghai, Tianjin Xingang, Qingdao, Ensenada, Manzanillo, Lazaro Cardenas and Yokohama. The rotation change means Buenaventura in Colombia has been dropped from the M2X loop but will be restored to the Asia Central South America 1 (ACSA 1) service starting from Pusan on Feb. 23. The changes reverse alterations CMA CGM made to both services last May. CMA CGM also announced Friday that Manzanillo would be added to its Pacific East Coast 2 (PEX2) service linking Pusan and China with Latin America and the Caribbean starting from Vũng Tàu on Dec. 27. The carrier said the Manzanillo call will provide a “new solution for [the] Mexico import/export market starting 2026.” CMA CGM said the changes would also see Singapore dropped from the rotation from Feb. 16 when the full rotation will be Vũng Tàu, Shekou, Hong Kong, Ningbo, Shanghai, Qingdao, Pusan, Manzanillo (Mexico), Balboa, Panama Canal, Manzanillo (Panama), Cartagena, Kingston, Caucedo and Vũng Tàu. The service shuffles for Mexico come just as the country introduces tariffs of up to 50% on 1,400 products from countries including China, Thailand and Indonesia from Jan. 1. The levies, intended to boost domestic manufacturing, will apply to imports from countries that do not have a free trade agreement with Mexico. China’s Commerce Ministry said the tariffs will “substantially harm the interests of trading partners, including China.” Contact Keith Wallis at keithwallis@hotmail.com .

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Carriers plan rate hikes, revamp services on Asia-Latin America trade

<div class="phx-topic abstract-wrapper">Union Pacific sent a 6,000-plus page application to US regulators Friday seeking formal approval for its closely watched merger proposal with Norfolk Southern that would create the country’s first transcontinental railroad.</div>

Union Pacific sent a 6,000-plus page application to US regulators Friday seeking formal approval for its closely watched merger proposal with Norfolk Southern that would create the country’s first transcontinental railroad.

<div class="phx-topic">Union Pacific Railroad (UP) on Friday filed its formal application with US regulators seeking approval for its proposed $85 billion acquisition of Norfolk Southern Railway (NS), saying the deal would divert nearly 2 million truck movements from highways annually, including an estimated 1.17 million truckloads that would shift to intermodal rail. The application sent to the US Surface Transportation Board (STB) for the closely watched merger proposal that would create the country’s first transcontinental railroad exceeded 6,000 pages. UP CEO Jim Vena, speaking on an investor call Friday morning after the application was filed, said the intermodal figure, which represents an 11% increase over the combined UP-NS intermodal volume in 2023, would be converted from the truckload market. Vena also expects to win some freight from competitor BNSF Railway. “Customers will benefit from faster, more reliable service, improved asset utilization and a streamlined customer experience. Status quo isn’t an option,” Vena said. “Adjustments to train routing and blocking patterns will reduce an estimated 2,400 daily railcar and container handlings per day ... This eliminates the unnecessary touches that can lead to incidents [accidents] and delays.” The STB has 30 days to determine whether the filing is complete and satisfactory; a full review is expected to extend into 2027. The application comes days after <a href="https://www.joc.com/article/two-large-rail-unions-say-they-oppose-planned-up-ns-merger-6137046">two labor unions announced opposition</a> to the deal, although the rail industry’s largest union by membership has <a href="https://www.joc.com/article/major-rail-union-backs-up-ns-merger-after-job-protection-deal-6084510">publicly supported it</a>. If approved, the merger would enable new single-line intermodal routings with shorter transit times. The application highlights four intermodal corridors where an enlarged UP can achieve considerable growth: Northern California-New Jersey; Southern California-Pennsylvania/New Jersey; Southern California-Georgia/North Carolina; and Texas-East Coast. Intermodal trains from Southern California to Harrisburg, Pennsylvania, and Croxton (Newark), New Jersey, routed via Kansas City, would save 17 to 19 hours, according to UP’s application. Trains moving between Southern California and the Southeast via the Meridian Speedway would save three to four days compared with current routings that often move north to Memphis before turning south toward Atlanta. A major upgrade is an expedited Lathrop, California-Croxton service with a sub-four-day transit time, a truck-like schedule that would be difficult for BNSF to match because its route is longer by mileage. The train would travel through Chicago but have a seamless crew handoff rather than draying containers across the city between terminals. <h3>Other changes coming </h3>UP also said it would operate a daily Southern California-Northeast train routed through Kansas City. The approach follows UP’s opening of a new Kansas City terminal this summer and the launch of UP-NS <a href="https://www.joc.com/article/up-ns-joint-intermodal-service-to-link-west-coast-with-louisville-in-midwest-6080692">trains to Louisville</a> routed via Kansas City this fall, a service that would become single line if the merger were approved. UP said it would invest more than $2.1 billion in capital spending, including $136.6 million to upgrade NS’ tracks and siding between Kansas City and Butler, Indiana, which industry observers have long cited as a chokepoint for high-speed, double-stack intermodal service into the Northeast. Another $172.3 million would be spent to upgrade NS’ line from New Orleans to Atlanta. The proposed merger would also consolidate intermodal operations between Chicago and Memphis. UP would close Norfolk Southern’s 63rd Street terminal in Chicago and shift traffic to UP’s Global 2 facility near O’Hare International Airport. In Memphis, Norfolk Southern’s Rossville terminal would be idled and traffic rerouted to UP’s Marion terminal across the Mississippi River in Arkansas. Those are the types of consolidations that have heightened union concerns and fueled negotiations over job protections. But UP, in winning support for the deal from five unions, has offered job protections in return, with the railroad vowing that anyone who has a job after the deal is approved is protected against losing their job for any reason linked to the merger. UP’s application also said the company would invest $63.7 million at Port Laredo in Laredo, Texas, for additional parking and track capacity and $102.5 million in Houston to expand annual lift capacity there. It also acknowledged the possibility of reopening intermodal operations in Birmingham, Alabama, and Greencastle, Pennsylvania, if necessary, to accommodate growth. NS operates in both markets but ceased handling intermodal business in both locations. The combined UP-NS railroad would launch a single-line service from Laredo to the East Coast. Trains originating in Laredo would move through Houston, New Orleans, Atlanta, Charlotte and Harrisburg before terminating in northern New Jersey. Today, an intermodal shipment from Texas to New Jersey moves via UP to Chicago and is then drayed across the city to Norfolk Southern. The proposed new route would bypass Chicago entirely. UP’s application also proposed an additional Laredo-Atlanta train that would be broken down and re-blocked into trains serving Cincinnati and Columbus, Ohio. <h3>Questions remain on Meridian Speedway </h3>The merger would push more intermodal traffic over the Meridian Speedway, a nearly 300-mile corridor linking Shreveport, Louisiana, and Meridian, Mississippi, which UP and NS say would cut as much as three days from a transit versus routings via Memphis to Atlanta. That would benefit shippers with cargo traveling between Southern California and Atlanta or Charlotte. But the application does not address <a href="https://www.joc.com/article/cpkc-slams-up-ns-on-meridian-congestion-merger-plans-6105932">the dispute</a> between Norfolk Southern and Canadian Pacific Kansas City (CPKC) tied to the Meridian corridor, including disagreements over train length. CPKC, which owns 75% of the Meridian joint venture with NS holding the balance, has limited UP and NS to 8,500-foot trains on the route, down from the 10,000- to 12,000-foot trains that were often permitted before Kansas City Southern was combined into CPKC. While the railroads reached a truce after Norfolk Southern complained to the STB in October, the underlying tension remains — and would become a complication for UP if the deal is approved. CPKC’s majority ownership of the Meridian Speedway joint venture gives it significant control over dispatching and operating practices along the corridor. CPKC has said it will not “subsidize” UP or NS operations by accepting longer trains that result in delays to its own trains. The issue raises questions about how UP would achieve its projected volume gains on Meridian, particularly given Norfolk Southern’s claim in its October STB filing that it has lost approximatey 100,000 intermodal loads to trucking and other competitors since 2022. <h3>Competitors respond </h3>UP’s filing is likely to trigger a rush of commentary over the coming weeks. CPKC CEO Keith Creel has <a href="https://www.joc.com/article/up-ceo-says-ns-merger-filing-with-us-regulators-to-be-delayed-two-weeks-6127156">repeatedly attacked</a> the proposed transaction, arguing that the merger would make the US supply chain more fragile by concentrating more freight onto a single railroad, increasing the impact of a service disruption. “The proposed UP-NS merger, unprecedented in scale and scope, would radically and permanently change the US rail network,” CPKC said in a statement Friday morning after the UP filing was made. “If approved, the merger would pose extraordinary and far-reaching risks to customers, rail employees and broader supply chains.” BNSF CEO Katie Farmer also issued a statement in the aftermath of the filing, saying she doubts UP has met the necessary requirements to gain approval for the deal. “Applicants must now prove their deal will not only preserve but enhance competition, that it serves the public interest, and its purported benefits can’t be delivered through partnerships,” Farmer said. “BNSF is confident that UP has not met these requirements. UP has a long history of making promises in past mergers that they back away from once they’ve secured approval.” Schneider National is another company that will be closely watched. It partners with UP and CSX, rather than NS, and has not taken a public position on the deal. It is the third-largest US intermodal carrier after J.B. Hunt Transport Services and Hub Group. Vena said at the Journal of Commerce Inland Distribution Conference in October that Schneider would endorse the deal after thoroughly reviewing the application. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Union Pacific Railroad (UP) on Friday filed its formal application with US regulators seeking approval for its proposed $85 billion acquisition of Norfolk Southern Railway (NS), saying the deal would divert nearly 2 million truck movements from highways annually, including an estimated 1.17 million truckloads that would shift to intermodal rail. The application sent to the US Surface Transportation Board (STB) for the closely watched merger proposal that would create the country’s first transcontinental railroad exceeded 6,000 pages. UP CEO Jim Vena, speaking on an investor call Friday morning after the application was filed, said the intermodal figure, which represents an 11% increase over the combined UP-NS intermodal volume in 2023, would be converted from the truckload market. Vena also expects to win some freight from competitor BNSF Railway. “Customers will benefit from faster, more reliable service, improved asset utilization and a streamlined customer experience. Status quo isn’t an option,” Vena said. “Adjustments to train routing and blocking patterns will reduce an estimated 2,400 daily railcar and container handlings per day ... This eliminates the unnecessary touches that can lead to incidents [accidents] and delays.” The STB has 30 days to determine whether the filing is complete and satisfactory; a full review is expected to extend into 2027. The application comes days after two labor unions announced opposition to the deal, although the rail industry’s largest union by membership has publicly supported it . If approved, the merger would enable new single-line intermodal routings with shorter transit times. The application highlights four intermodal corridors where an enlarged UP can achieve considerable growth: Northern California-New Jersey; Southern California-Pennsylvania/New Jersey; Southern California-Georgia/North Carolina; and Texas-East Coast. Intermodal trains from Southern California to Harrisburg, Pennsylvania, and Croxton (Newark), New Jersey, routed via Kansas City, would save 17 to 19 hours, according to UP’s application. Trains moving between Southern California and the Southeast via the Meridian Speedway would save three to four days compared with current routings that often move north to Memphis before turning south toward Atlanta. A major upgrade is an expedited Lathrop, California-Croxton service with a sub-four-day transit time, a truck-like schedule that would be difficult for BNSF to match because its route is longer by mileage. The train would travel through Chicago but have a seamless crew handoff rather than draying containers across the city between terminals. Other changes coming UP also said it would operate a daily Southern California-Northeast train routed through Kansas City. The approach follows UP’s opening of a new Kansas City terminal this summer and the launch of UP-NS trains to Louisville routed via Kansas City this fall, a service that would become single line if the merger were approved. UP said it would invest more than $2.1 billion in capital spending, including $136.6 million to upgrade NS’ tracks and siding between Kansas City and Butler, Indiana, which industry observers have long cited as a chokepoint for high-speed, double-stack intermodal service into the Northeast. Another $172.3 million would be spent to upgrade NS’ line from New Orleans to Atlanta. The proposed merger would also consolidate intermodal operations between Chicago and Memphis. UP would close Norfolk Southern’s 63rd Street terminal in Chicago and shift traffic to UP’s Global 2 facility near O’Hare International Airport. In Memphis, Norfolk Southern’s Rossville terminal would be idled and traffic rerouted to UP’s Marion terminal across the Mississippi River in Arkansas. Those are the types of consolidations that have heightened union concerns and fueled negotiations over job protections. But UP, in winning support for the deal from five unions, has offered job protections in return, with the railroad vowing that anyone who has a job after the deal is approved is protected against losing their job for any reason linked to the merger. UP’s application also said the company would invest $63.7 million at Port Laredo in Laredo, Texas, for additional parking and track capacity and $102.5 million in Houston to expand annual lift capacity there. It also acknowledged the possibility of reopening intermodal operations in Birmingham, Alabama, and Greencastle, Pennsylvania, if necessary, to accommodate growth. NS operates in both markets but ceased handling intermodal business in both locations. The combined UP-NS railroad would launch a single-line service from Laredo to the East Coast. Trains originating in Laredo would move through Houston, New Orleans, Atlanta, Charlotte and Harrisburg before terminating in northern New Jersey. Today, an intermodal shipment from Texas to New Jersey moves via UP to Chicago and is then drayed across the city to Norfolk Southern. The proposed new route would bypass Chicago entirely. UP’s application also proposed an additional Laredo-Atlanta train that would be broken down and re-blocked into trains serving Cincinnati and Columbus, Ohio. Questions remain on Meridian Speedway The merger would push more intermodal traffic over the Meridian Speedway, a nearly 300-mile corridor linking Shreveport, Louisiana, and Meridian, Mississippi, which UP and NS say would cut as much as three days from a transit versus routings via Memphis to Atlanta. That would benefit shippers with cargo traveling between Southern California and Atlanta or Charlotte. But the application does not address the dispute between Norfolk Southern and Canadian Pacific Kansas City (CPKC) tied to the Meridian corridor, including disagreements over train length. CPKC, which owns 75% of the Meridian joint venture with NS holding the balance, has limited UP and NS to 8,500-foot trains on the route, down from the 10,000- to 12,000-foot trains that were often permitted before Kansas City Southern was combined into CPKC. While the railroads reached a truce after Norfolk Southern complained to the STB in October, the underlying tension remains — and would become a complication for UP if the deal is approved. CPKC’s majority ownership of the Meridian Speedway joint venture gives it significant control over dispatching and operating practices along the corridor. CPKC has said it will not “subsidize” UP or NS operations by accepting longer trains that result in delays to its own trains. The issue raises questions about how UP would achieve its projected volume gains on Meridian, particularly given Norfolk Southern’s claim in its October STB filing that it has lost approximatey 100,000 intermodal loads to trucking and other competitors since 2022. Competitors respond UP’s filing is likely to trigger a rush of commentary over the coming weeks. CPKC CEO Keith Creel has repeatedly attacked the proposed transaction, arguing that the merger would make the US supply chain more fragile by concentrating more freight onto a single railroad, increasing the impact of a service disruption. “The proposed UP-NS merger, unprecedented in scale and scope, would radically and permanently change the US rail network,” CPKC said in a statement Friday morning after the UP filing was made. “If approved, the merger would pose extraordinary and far-reaching risks to customers, rail employees and broader supply chains.” BNSF CEO Katie Farmer also issued a statement in the aftermath of the filing, saying she doubts UP has met the necessary requirements to gain approval for the deal. “Applicants must now prove their deal will not only preserve but enhance competition, that it serves the public interest, and its purported benefits can’t be delivered through partnerships,” Farmer said. “BNSF is confident that UP has not met these requirements. UP has a long history of making promises in past mergers that they back away from once they’ve secured approval.” Schneider National is another company that will be closely watched. It partners with UP and CSX, rather than NS, and has not taken a public position on the deal. It is the third-largest US intermodal carrier after J.B. Hunt Transport Services and Hub Group. Vena said at the Journal of Commerce Inland Distribution Conference in October that Schneider would endorse the deal after thoroughly reviewing the application. Contact Ari Ashe at ari.ashe@spglobal.com .

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North-American rail

UP, in merger filing, vows to convert millions of loads to intermodal annually

<div class="phx-topic abstract-wrapper">The carrier, as it sends a US-bound vessel through the region, said if security thresholds hold it will take a “stepwise approach” toward gradually resuming navigation on east-west services via the Suez Canal and Red Sea. </div>

The carrier, as it sends a US-bound vessel through the region, said if security thresholds hold it will take a “stepwise approach” toward gradually resuming navigation on east-west services via the Suez Canal and Red Sea.

<div class="phx-topic">Maersk has become the latest carrier to test Red Sea waters, routing a westbound 6,500-TEU vessel through the Bab al-Mandeb Strait at the southern, Houthi-controlled entrance to the waterway. But an advisory from the carrier Friday was quick to point out that this was not the start of a widescale return of its shipping services to the Red Sea, which has been largely off-limits to commercial shipping since attacks from Houthi militants operating in Yemen began two years ago. “While this is a significant step forward, it does not mean that we are at a point where we are considering a wider east-west network change back to the trans-Suez corridor,” Maersk said. The Singapore-flagged Maersk Sebarok on Maersk’s MECL service from India to the US East Coast departed Salalah in Oman earlier this week and sailed through the Bab al-Mandeb Strait Thursday en route to the Port of New York and New Jersey. Maersk’s advisory said if security thresholds continue to be met, the carrier would continue its “stepwise approach” toward gradually resuming navigation on east-west services via the Suez Canal and Red Sea. “The first step is this initial sailing, followed by a limited number of additional trans-Suez sailings,” it said. “However, there are no planned sailings currently.” Maersk’s advisory on Friday comes after the carrier was forced to correct a Suez Canal Authority statement last month that said the carrier would be returning regular services to the waterway in December. In its own statement at the time, Maersk said transits through the Red Sea would only normalize “as soon as conditions allow, with safety of our crew as the top priority.” The new Maersk sailing follows the launch of a Red Sea-China Service by Thailand’s Regional Container Lines (RCL) last month. <a href="https://www.joc.com/article/one-returns-to-red-sea-under-slot-charter-deal-with-thailands-rcl-partners-6136866">Ocean Network Express (ONE)</a> and Taiwan’s Evergreen Marine are making tentative returns to the Red Sea cargo market under a slot charter agreement with regional carriers, including RCL. CMA CGM <a href="https://www.joc.com/article/stretched-logistics-capacity-in-europe-threatened-by-red-sea-return-6129492">is set to resume a Suez-based rotation for its India-USEC “Indamex” service</a> from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi, due to depart India’s Nhava Sheva Port Jan. 18 and transit the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. The resumption of shipping activity in the Red Sea is driven by a perceived improvement in the security situation given there have been no attacks on vessels since the Israel-Hamas ceasefire was signed in early October, with a corresponding decline in additional war risk maritime insurance premiums. <h3>Risk levels ‘tolerable’ </h3>With attacks paused, the de-escalation suggests operational risks for shipping companies have become more “tolerable” in the waterway, according to security advisory firm Ambrey. This has seen war risk premiums for ships sailing through the Red Sea falling to about 0.2% of hull value from 0.5% before the ceasefire, according to a UK-based insurer, the lowest level since the Houthi attacks on shipping began in late 2023. Still, while carriers may be willing to shoulder the lower premiums, getting support from cargo owners could be difficult, as <a href="https://www.joc.com/article/hapag-lloyd-nixes-suez-return-for-india-usec-loop-amid-customer-pushback-6137557">Hapag-Lloyd found out this week</a> when it asked customers for feedback on plans to route an India-US East Coast service through the Suez. “Expeditors [one of the carrier’s largest forwarders on the route] was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” an India-based shipping executive with knowledge of the matter told the Journal of Commerce. Helge Neuman-Lezius, global head of full container loads at Hellmann Worldwide Logistics, said insurance excluded coverage for cargo in the southern Red Sea and Bab al-Mandeb strait. “For that reason, we decided to not offer such routings until this passage is declared as safe,” he said. The supply chain director for a Hong Kong-based Asia-Europe shipper told the Journal of Commerce that a directive from their head office prohibited the use of services via the Red Sea and Suez because of difficulties in obtaining cargo insurance cover. DHL Global Forwarding said decisions on whether to return to the waterway would be jointly determined by carriers, forwarders and cargo owners. “We can see a scenario where certain carriers might be willing to pilot services through the Red Sea, and if this were to prove successful, others could follow suit in order to remain competitive, which along with the reduced transit times could mitigate the possibility of elevated insurance costs,” a DHL spokesperson said. Peter Sand, chief analyst with rate benchmarking platform Xeneta, said shippers were simply not interested in paying the current high war risk premiums. “Nevertheless, carriers need to take the first steps and illustrate that voyages can be performed safely,” Sand told the Journal of Commerce. “Later, they can return the services as well when insurance companies lower the premiums paid for cargo, ships and crew sailing through the area.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. Special correspondent Bency Mathew contributed to this report. </div>

Maersk has become the latest carrier to test Red Sea waters, routing a westbound 6,500-TEU vessel through the Bab al-Mandeb Strait at the southern, Houthi-controlled entrance to the waterway. But an advisory from the carrier Friday was quick to point out that this was not the start of a widescale return of its shipping services to the Red Sea, which has been largely off-limits to commercial shipping since attacks from Houthi militants operating in Yemen began two years ago. “While this is a significant step forward, it does not mean that we are at a point where we are considering a wider east-west network change back to the trans-Suez corridor,” Maersk said. The Singapore-flagged Maersk Sebarok on Maersk’s MECL service from India to the US East Coast departed Salalah in Oman earlier this week and sailed through the Bab al-Mandeb Strait Thursday en route to the Port of New York and New Jersey. Maersk’s advisory said if security thresholds continue to be met, the carrier would continue its “stepwise approach” toward gradually resuming navigation on east-west services via the Suez Canal and Red Sea. “The first step is this initial sailing, followed by a limited number of additional trans-Suez sailings,” it said. “However, there are no planned sailings currently.” Maersk’s advisory on Friday comes after the carrier was forced to correct a Suez Canal Authority statement last month that said the carrier would be returning regular services to the waterway in December. In its own statement at the time, Maersk said transits through the Red Sea would only normalize “as soon as conditions allow, with safety of our crew as the top priority.” The new Maersk sailing follows the launch of a Red Sea-China Service by Thailand’s Regional Container Lines (RCL) last month. Ocean Network Express (ONE) and Taiwan’s Evergreen Marine are making tentative returns to the Red Sea cargo market under a slot charter agreement with regional carriers, including RCL. CMA CGM is set to resume a Suez-based rotation for its India-USEC “Indamex” service from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi, due to depart India’s Nhava Sheva Port Jan. 18 and transit the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. The resumption of shipping activity in the Red Sea is driven by a perceived improvement in the security situation given there have been no attacks on vessels since the Israel-Hamas ceasefire was signed in early October, with a corresponding decline in additional war risk maritime insurance premiums. Risk levels ‘tolerable’ With attacks paused, the de-escalation suggests operational risks for shipping companies have become more “tolerable” in the waterway, according to security advisory firm Ambrey. This has seen war risk premiums for ships sailing through the Red Sea falling to about 0.2% of hull value from 0.5% before the ceasefire, according to a UK-based insurer, the lowest level since the Houthi attacks on shipping began in late 2023. Still, while carriers may be willing to shoulder the lower premiums, getting support from cargo owners could be difficult, as Hapag-Lloyd found out this week when it asked customers for feedback on plans to route an India-US East Coast service through the Suez. “Expeditors [one of the carrier’s largest forwarders on the route] was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” an India-based shipping executive with knowledge of the matter told the Journal of Commerce. Helge Neuman-Lezius, global head of full container loads at Hellmann Worldwide Logistics, said insurance excluded coverage for cargo in the southern Red Sea and Bab al-Mandeb strait. “For that reason, we decided to not offer such routings until this passage is declared as safe,” he said. The supply chain director for a Hong Kong-based Asia-Europe shipper told the Journal of Commerce that a directive from their head office prohibited the use of services via the Red Sea and Suez because of difficulties in obtaining cargo insurance cover. DHL Global Forwarding said decisions on whether to return to the waterway would be jointly determined by carriers, forwarders and cargo owners. “We can see a scenario where certain carriers might be willing to pilot services through the Red Sea, and if this were to prove successful, others could follow suit in order to remain competitive, which along with the reduced transit times could mitigate the possibility of elevated insurance costs,” a DHL spokesperson said. Peter Sand, chief analyst with rate benchmarking platform Xeneta, said shippers were simply not interested in paying the current high war risk premiums. “Nevertheless, carriers need to take the first steps and illustrate that voyages can be performed safely,” Sand told the Journal of Commerce. “Later, they can return the services as well when insurance companies lower the premiums paid for cargo, ships and crew sailing through the area.” Contact Greg Knowler at greg.knowler@spglobal.com . Special correspondent Bency Mathew contributed to this report.

Asia-Europe

Maersk takes ‘significant step’ toward return to Red Sea transits

<div class="phx-topic abstract-wrapper">The acquisition of Malherbe will enable Geodis to develop the French road freight market for truckload and less-than-truckload, and to increase its presence in the agri-food and mass retail sectors. </div>

The acquisition of Malherbe will enable Geodis to develop the French road freight market for truckload and less-than-truckload, and to increase its presence in the agri-food and mass retail sectors.

<div class="phx-topic">French forwarder Geodis said Friday it has concluded an agreement to acquire road freight specialist Malherbe in a deal that will significantly expand the group’s trucking footprint in the country. The acquisition, terms of which were not disclosed, will enable Geodis to develop the French road freight market for truckload and less-than-truckload (LTL), and to increase its presence in the agri-food and mass retail sectors. “The integration of Malherbe will represent an essential strategic lever in building a more resilient and sustainable nationwide network,” Geodis CEO Marie-Christine Lombard said in a statement. The acquisition of Malherbe will place Geodis among the top three players in the French market for truckload and LTL, with combined revenue of €2 billion ($2.3 billion). The geographical and operational reach of the two companies’ operations will increase the density of Geodis’ national network in France, strengthen its position in the agri-food market and accelerate the growth of European road transport activities within its network, the forwarder said. Malherbe operates in France through an extensive network of 40 branch offices with its own fleet of about 1,500 trucks, employing more than 3,300 people nationwide. In support of its energy transition, Malherbe is gradually electrifying its fleet and installing charging infrastructure. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

French forwarder Geodis said Friday it has concluded an agreement to acquire road freight specialist Malherbe in a deal that will significantly expand the group’s trucking footprint in the country. The acquisition, terms of which were not disclosed, will enable Geodis to develop the French road freight market for truckload and less-than-truckload (LTL), and to increase its presence in the agri-food and mass retail sectors. “The integration of Malherbe will represent an essential strategic lever in building a more resilient and sustainable nationwide network,” Geodis CEO Marie-Christine Lombard said in a statement. The acquisition of Malherbe will place Geodis among the top three players in the French market for truckload and LTL, with combined revenue of €2 billion ($2.3 billion). The geographical and operational reach of the two companies’ operations will increase the density of Geodis’ national network in France, strengthen its position in the agri-food market and accelerate the growth of European road transport activities within its network, the forwarder said. Malherbe operates in France through an extensive network of 40 branch offices with its own fleet of about 1,500 trucks, employing more than 3,300 people nationwide. In support of its energy transition, Malherbe is gradually electrifying its fleet and installing charging infrastructure. Contact Greg Knowler at greg.knowler@spglobal.com .

Trucking News

Truckload

Surface

Geodis inks takeover deal to expand French trucking coverage

<div class="phx-topic abstract-wrapper">The private equity fund that operates New York-New Jersey’s largest marine terminal agreed to the Port Authority’s new requirement to carry the cost of maintaining berths and wharves. </div>

The private equity fund that operates New York-New Jersey’s largest marine terminal agreed to the Port Authority’s new requirement to carry the cost of maintaining berths and wharves.

<div class="phx-topic">Infrastructure fund Macquarie has renewed its lease of the largest container terminal at the Port of New York and New Jersey through 2063, agreeing to the port’s new terms for tenant terminals that include taking over the upkeep of its wharves and berths and pledging to increase capacity at the busiest East Coast seaport. The board of commissioners for the Port Authority of New York and New Jersey on Thursday voted to approve the amendment to Macquarie’s existing lease for Maher Terminals that was set to expire in 2030. The Port Authority entered negotiations for a new lease last year due to the expected liquidation date for the specific fund that owns Maher and the potential for a sale of the terminal to another operator. Investors in the fund, however, <a href="https://www.joc.com/article/macquarie-looks-to-keep-hold-on-ny-nj-terminal-amid-lease-talks-6043502">opted not to liquidate</a>. While <a href="https://www.joc.com/article/ssa-marine-looks-to-expand-into-new-us-ports-with-deal-for-ceres-5221078">the fund shed its stake in Ceres Terminals in 2023</a>, Macquarie still owns the Long Beach Container Terminal and ITS Terminal in Long Beach and has stakes in Yusen Terminals in Los Angeles and TraPac terminals, which operates in Los Angeles and Oakland. The Maher lease is the latest to be revamped by the Port Authority. Following <a href="https://www.joc.com/article/cma-cgm-adds-terminal-assets-in-new-yorknew-jersey-5217593">CMA CGM’s 2022 purchase of Global Container Terminals’ US assets</a>, the agency has changed the lease terms to move away from a flat annual rent with cost escalators to a rent that is based on actual container throughput, subject to an annual minimum. Terminals will also have to share with the Port Authority any excess demurrage revenue and commit to the agency’s environmental and sustainability goals. <a href="https://www.joc.com/article/apm-to-spend-500-million-to-enhance-cargo-handling-at-elizabeth-terminal-5969027">APM Terminals signed a similar lease agreement in March</a>, extending its tenancy of the Elizabeth Marine Terminal to 2062. <h3>Maher could face $2 billion in wharf maintenance costs</h3>Along with the new terms, the biggest financial burden for terminal operators under the new leases will be responsibility for maintaining their berths and wharves, which was previously handled by the Port Authority. Some of the berths and wharves at New York/New Jersey are 60 years old, with many of the wood pilings also being damaged by marine borer worms. Port Executive Director Beth Rooney said Thursday the combined bill for maintaining the berths and wharves at GCT, APM and Maher could reach $6 billion. With 10,000 linear feet of berth space, Maher could face as much as $2 billion in costs for berth and wharf maintenance. The new leases also include commitments to increase capacity as part of the Port Authority’s expectations that container volumes will double by 2050. Rooney said Maher committed to “demand induced” capacity improvements over the course of the new lease.Maher, which handled 1.8 million container lifts in 2024, is the largest terminal at the port with 450 acres of space. However, similar to other terminals in New Jersey, it is land constrained with little available acreage near the port. Despite the land constraints, Rooney said Maher could eventually double its capacity by switching over from using straddle carriers to rubber tire gantry cranes, which would allow higher density stacks. “By having a 33-year lease, it gives Maher the lanes they need to invest in additional infrastructure and equipment and amortize that cost,” Rooney said. “Our estimates are that within Maher’s footprint they could almost double the capacity of the terminal through densification.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Infrastructure fund Macquarie has renewed its lease of the largest container terminal at the Port of New York and New Jersey through 2063, agreeing to the port’s new terms for tenant terminals that include taking over the upkeep of its wharves and berths and pledging to increase capacity at the busiest East Coast seaport. The board of commissioners for the Port Authority of New York and New Jersey on Thursday voted to approve the amendment to Macquarie’s existing lease for Maher Terminals that was set to expire in 2030. The Port Authority entered negotiations for a new lease last year due to the expected liquidation date for the specific fund that owns Maher and the potential for a sale of the terminal to another operator. Investors in the fund, however, opted not to liquidate . While the fund shed its stake in Ceres Terminals in 2023 , Macquarie still owns the Long Beach Container Terminal and ITS Terminal in Long Beach and has stakes in Yusen Terminals in Los Angeles and TraPac terminals, which operates in Los Angeles and Oakland. The Maher lease is the latest to be revamped by the Port Authority. Following CMA CGM’s 2022 purchase of Global Container Terminals’ US assets , the agency has changed the lease terms to move away from a flat annual rent with cost escalators to a rent that is based on actual container throughput, subject to an annual minimum. Terminals will also have to share with the Port Authority any excess demurrage revenue and commit to the agency’s environmental and sustainability goals. APM Terminals signed a similar lease agreement in March , extending its tenancy of the Elizabeth Marine Terminal to 2062. Maher could face $2 billion in wharf maintenance costs Along with the new terms, the biggest financial burden for terminal operators under the new leases will be responsibility for maintaining their berths and wharves, which was previously handled by the Port Authority. Some of the berths and wharves at New York/New Jersey are 60 years old, with many of the wood pilings also being damaged by marine borer worms. Port Executive Director Beth Rooney said Thursday the combined bill for maintaining the berths and wharves at GCT, APM and Maher could reach $6 billion. With 10,000 linear feet of berth space, Maher could face as much as $2 billion in costs for berth and wharf maintenance. The new leases also include commitments to increase capacity as part of the Port Authority’s expectations that container volumes will double by 2050. Rooney said Maher committed to “demand induced” capacity improvements over the course of the new lease. Maher, which handled 1.8 million container lifts in 2024, is the largest terminal at the port with 450 acres of space. However, similar to other terminals in New Jersey, it is land constrained with little available acreage near the port. Despite the land constraints, Rooney said Maher could eventually double its capacity by switching over from using straddle carriers to rubber tire gantry cranes, which would allow higher density stacks. “By having a 33-year lease, it gives Maher the lanes they need to invest in additional infrastructure and equipment and amortize that cost,” Rooney said. “Our estimates are that within Maher’s footprint they could almost double the capacity of the terminal through densification.” Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

Marine terminals

North American ports

Macquarie seals deal for new Maher lease at NY/NJ through 2063

<div class="phx-topic abstract-wrapper">The US’ de minimis program, which ended in May, allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements. </div>

The US’ de minimis program, which ended in May, allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements.

<div class="phx-topic">US Customs and Border Protection (CBP) has collected more than $1 billion in duties on low-value imports since the May end of the duty-free de minimis provision. The duties collected were generated from more than 246 million low-cost, US-bound shipments since the Trump administration began phasing out the de minimis provision, also known as Section 321 shipments, earlier this year, CBP said in a statement Wednesday. The US’ de minimis program allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements. “Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” CBP Commissioner Rodney Scott said in the statement. “With this change, American businesses don’t have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country.” The Trump administration began phasing out the de minimis rule on May 2 on shipments from China and Hong Kong and extended the ban globally on Aug. 29. The value threshold of the de minimis provision was increased from $200 to $800 in 2016, based largely on lobbying from parcel integrators interested in facilitating more frictionless e-commerce cross-border shipments. The higher threshold has been cited as the key driver in the huge growth of those shipments, especially in tandem with CBP’s Type 86 entry program, which allowed de minimis shipments to be cleared faster if moved via intermediaries that partnered with the agency to provide more robust details on the characteristics of the shipments than normal Section 321 entries. Low-cost e-commerce giants such as China-based Shein and Temu have used the higher threshold to grow revenue exponentially during and after the pandemic. <h3>Safety element </h3>US customs brokers have long argued that raising the de minimis value threshold created more security vulnerability for CBP, given that the limited customs entries associated with 321 filings were not robust enough. Customs brokers lost revenue because of broader use of the de minimis rule, as those shipments did not require formal customs entry, a process that brokers generally charge a fee for. CBP in its statement touted the safety element of ending the de minimis rule, saying seizures of unsafe and non-compliant low-value goods have increased by 82%, including counterfeits, narcotics, faulty electronics and goods containing hazardous chemicals. “With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items — making our country safer,” Susan Thomas, acting executive assistant commissioner for CBP’s Office of Trade, said in the statement. The amount collected in duties from shipments once protected under the de minimis provision is a fraction of the overall amount of tariff revenue collected by CBP in 2025. The Trump administration stated in recent court filings that it has collected more than $125 billion in tariffs since the White House announced global tariffs under the International Emergency Economic Powers Act in the spring. But the legality of those tariffs is being challenged before the US Supreme Court, and a ruling against the administration could trigger massive refunds to importers. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

US Customs and Border Protection (CBP) has collected more than $1 billion in duties on low-value imports since the May end of the duty-free de minimis provision. The duties collected were generated from more than 246 million low-cost, US-bound shipments since the Trump administration began phasing out the de minimis provision, also known as Section 321 shipments, earlier this year, CBP said in a statement Wednesday. The US’ de minimis program allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements. “Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” CBP Commissioner Rodney Scott said in the statement. “With this change, American businesses don’t have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country.” The Trump administration began phasing out the de minimis rule on May 2 on shipments from China and Hong Kong and extended the ban globally on Aug. 29. The value threshold of the de minimis provision was increased from $200 to $800 in 2016, based largely on lobbying from parcel integrators interested in facilitating more frictionless e-commerce cross-border shipments. The higher threshold has been cited as the key driver in the huge growth of those shipments, especially in tandem with CBP’s Type 86 entry program, which allowed de minimis shipments to be cleared faster if moved via intermediaries that partnered with the agency to provide more robust details on the characteristics of the shipments than normal Section 321 entries. Low-cost e-commerce giants such as China-based Shein and Temu have used the higher threshold to grow revenue exponentially during and after the pandemic. Safety element US customs brokers have long argued that raising the de minimis value threshold created more security vulnerability for CBP, given that the limited customs entries associated with 321 filings were not robust enough. Customs brokers lost revenue because of broader use of the de minimis rule, as those shipments did not require formal customs entry, a process that brokers generally charge a fee for. CBP in its statement touted the safety element of ending the de minimis rule, saying seizures of unsafe and non-compliant low-value goods have increased by 82%, including counterfeits, narcotics, faulty electronics and goods containing hazardous chemicals. “With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items — making our country safer,” Susan Thomas, acting executive assistant commissioner for CBP’s Office of Trade, said in the statement. The amount collected in duties from shipments once protected under the de minimis provision is a fraction of the overall amount of tariff revenue collected by CBP in 2025. The Trump administration stated in recent court filings that it has collected more than $125 billion in tariffs since the White House announced global tariffs under the International Emergency Economic Powers Act in the spring. But the legality of those tariffs is being challenged before the US Supreme Court, and a ruling against the administration could trigger massive refunds to importers. Contact Eric Johnson at eric.johnson@spglobal.com .

Transport, Trade and Regulation News

Revenue from low-value shipment duties crosses $1 billion mark: CBP

<div class="phx-topic abstract-wrapper">The Department of Justice seems to be suggesting that if the Supreme Court pulls the plug on the IEEPA tariffs, it won’t stand in the way of refunds — at least not for parties who get themselves properly in front of the Court.</div>

The Department of Justice seems to be suggesting that if the Supreme Court pulls the plug on the IEEPA tariffs, it won’t stand in the way of refunds — at least not for parties who get themselves properly in front of the Court.

<div class="phx-topic">The US Department of Justice (DOJ) quietly dropped a filing in the Court of International Trade (CIT) last week that, depending on your tolerance for customs law drama, is either deeply boring or absolutely fascinating. Buried in the filing was a declaration from Customs and Border Protection (CBP) with some eye-opening numbers: as of Dec. 10, 2025, the US government has collected approximately $129 billion in International Emergency Economic Powers Act (IEEPA) tariffs. That money came from about 301,000 importers spread across approximately 34 million entries. If you’ve ever wondered how big this issue really is, that’s your answer. It’s not a rounding error. Against that backdrop, DOJ told the CIT something very specific — and very carefully worded. If the US Supreme Court ultimately rules that the IEEPA tariffs are unlawful, the Trump administration would not oppose the Court’s authority to order reliquidation of the plaintiffs’ entries. In plain English, DOJ is acknowledging that the CIT could order those entries to be unwound and the duties refunded through reliquidation. No foot-stomping. No jurisdictional theatrics. Just a quiet concession that the Court has the power to fix this. Put even more simply, DOJ is signaling that if SCOTUS pulls the plug on the IEEPA tariffs, it won’t stand in the way of refunds — at least not for parties who get themselves properly in front of the Court. This lines up neatly with what DOJ has already told the Supreme Court in the pending cases: If the challengers win, they’re entitled to their money back. The only real question has always been how that happens, not whether refunds are theoretically available. <h3>Don’t expect ‘nice, clean’ refund program </h3>And that’s where the subtext starts doing some heavy lifting. What DOJ is very much not saying is that the administration plans to roll out a nice, clean, importer-friendly administrative refund program. There’s no promise of automatic reliquidations, mass refunds or CBP proactively cutting checks. Instead, the filing implicitly points importers toward the Court. If you want your money back, you may need to go to the CIT and ask for an order directing reliquidation. DOJ is saying it won’t object to the Court’s authority to do that — not that it intends to do everyone any favors administratively. This fits squarely with the broader reality importers should be preparing for post-decision. Even if the Supreme Court strikes down the tariffs, refunds are unlikely to be frictionless. Liquidated entries will still need to be protested to CBP. Unliquidated entries will need to be protected. Some companies may pursue litigation; others may try to navigate administrative channels. Many will end up doing both. The idea that $129 billion is just going to flow back to importers on autopilot is, at best, optimistic. The takeaway is straightforward, even if the process won’t be. The government is already laying the groundwork for a refund framework that runs through the courts, not around them. Importers who assume this will all sort itself out may find themselves watching the reliquidation train leave the station without them. The smart money is on preparation, strategy, and knowing exactly which procedural doors need to be opened — before the Supreme Court tells everyone it’s time to start knocking. Contact Pete Mento at <a href="mailto:pete.mento@bakertilly.com">pete.mento@bakertilly.com</a>.</div>

The US Department of Justice (DOJ) quietly dropped a filing in the Court of International Trade (CIT) last week that, depending on your tolerance for customs law drama, is either deeply boring or absolutely fascinating. Buried in the filing was a declaration from Customs and Border Protection (CBP) with some eye-opening numbers: as of Dec. 10, 2025, the US government has collected approximately $129 billion in International Emergency Economic Powers Act (IEEPA) tariffs. That money came from about 301,000 importers spread across approximately 34 million entries. If you’ve ever wondered how big this issue really is, that’s your answer. It’s not a rounding error. Against that backdrop, DOJ told the CIT something very specific — and very carefully worded. If the US Supreme Court ultimately rules that the IEEPA tariffs are unlawful, the Trump administration would not oppose the Court’s authority to order reliquidation of the plaintiffs’ entries. In plain English, DOJ is acknowledging that the CIT could order those entries to be unwound and the duties refunded through reliquidation. No foot-stomping. No jurisdictional theatrics. Just a quiet concession that the Court has the power to fix this. Put even more simply, DOJ is signaling that if SCOTUS pulls the plug on the IEEPA tariffs, it won’t stand in the way of refunds — at least not for parties who get themselves properly in front of the Court. This lines up neatly with what DOJ has already told the Supreme Court in the pending cases: If the challengers win, they’re entitled to their money back. The only real question has always been how that happens, not whether refunds are theoretically available. Don’t expect ‘nice, clean’ refund program And that’s where the subtext starts doing some heavy lifting. What DOJ is very much not saying is that the administration plans to roll out a nice, clean, importer-friendly administrative refund program. There’s no promise of automatic reliquidations, mass refunds or CBP proactively cutting checks. Instead, the filing implicitly points importers toward the Court. If you want your money back, you may need to go to the CIT and ask for an order directing reliquidation. DOJ is saying it won’t object to the Court’s authority to do that — not that it intends to do everyone any favors administratively. This fits squarely with the broader reality importers should be preparing for post-decision. Even if the Supreme Court strikes down the tariffs, refunds are unlikely to be frictionless. Liquidated entries will still need to be protested to CBP. Unliquidated entries will need to be protected. Some companies may pursue litigation; others may try to navigate administrative channels. Many will end up doing both. The idea that $129 billion is just going to flow back to importers on autopilot is, at best, optimistic. The takeaway is straightforward, even if the process won’t be. The government is already laying the groundwork for a refund framework that runs through the courts, not around them. Importers who assume this will all sort itself out may find themselves watching the reliquidation train leave the station without them. The smart money is on preparation, strategy, and knowing exactly which procedural doors need to be opened — before the Supreme Court tells everyone it’s time to start knocking. Contact Pete Mento at pete.mento@bakertilly.com .

US signaling importers will need to do ‘heavy lifting’ to secure possible tariff refunds

<div class="phx-topic abstract-wrapper">Until the whole container shipping industry improves its reliability, the scope for any form of premium/bonus for above-target performance is low, writes John McCauley. </div>

Until the whole container shipping industry improves its reliability, the scope for any form of premium/bonus for above-target performance is low, writes John McCauley.

<div class="phx-topic">We are a strange bunch, we logisticians. One of our self-designed millstones is our key definition of success, and it is always unattainable either at an individual or aggregate level. For container shipping, I refer to on-time arrival (OTA), although for other modes this is usually on-time delivery. We measure on-time arrival as a percentage, with the only feasible outcome to fail; the only question is by how much. Those odds aren’t acceptable outside of shipping. The analogy frequently used is patient operation success in a hospital. If a patient operation is successful 999 times out of 1,000, do we want to be the one that didn’t make it? But seriously, as pertains to container shipping, there are factors beyond the control of the carrier, including severe weather at ports and on the water and strikes and other labor disruptions. That means a 100% on-time arrival within 24 hours of schedule is unachievable on a volume and consistent basis. However, levels of 60% to 65% at the industry level, with no historical precedent for greater achievement nor likelihood of ever getting there, mean we are in a doom loop of trying, other than hoping, to make it better. This is despite <a href="https://www.joc.com/article/value-unlocked-by-gemini-will-clear-path-for-premium-charge-maersk-ceo-6111339">the admirable efforts of the Gemini Cooperation alliance</a> of Maersk and Hapag-Lloyd to achieve superior reliability. Which leads to my observations about the suggestions of a premium for higher reliability levels, and particularly that carriers would want to claw back some of the benefits of lower inventory costs for beneficial cargo owners (BCOs). <h3>A few obstacles </h3>Firstly, all BCOs will keep a mix of carriers (dual or multi-sourcing) for multiple reasons, including schedule, risk of losing space, price, etc., which means that while one carrier may achieve above-market reliability, their benefit to BCOs will be dragged down by the performance of their other choices in the industry. As an example, Carrier A achieves 90% reliability, Carrier B 60%. You have to program your planning systems for one, not multiple, delivery durations. Which do you choose? None are ideal, too long and you unnecessarily extend inventory carry, but if those same shipments arrive early, you need warehousing. Secondly, what about all the other problems caused by poor reliability? Stock-outs, air freight, extra staffing, warehousing and more. Focusing on inventory highlights a cash flow problem; many of the others are either opportunity costs (stock-outs, lost sales) or real costs (additional warehousing, staffing, sales contract non-compliance). I am not at all saying that container shipping is responsible for all of this, but it is an important contributor to the problem. Thirdly, any premium/bonus for above-target performance must surely have an offset for under-performance. And by this I don’t mean adjusted performance taking account of externalities. The non-performance must be explanation/excuse agnostic, meaning if the one-time arrival is not met, then this is a fail. In other modes of transport, this is the norm and why targets are never set at 100% even for best-in-class. Finally, I am all for improved reliability; most actors in container shipping share that view. How to get there is tricky and requires strategic intent. Many carriers will see it as unachievable and not worth the effort given the likelihood of high uncertainty of any reward other than some degree of customer stickiness. Until the whole industry improves its reliability, the scope for any form of premium/bonus for above-target performance is low. The only way I can see it working is to have a premium attached to index-linked contracts, and even then, that must be linked to performance against an agreed target level with penalties. Given the favorable buy-side economics in current contracting, this may be one for carriers to put on the backburner. John McCauley, formerly a vice president of transportation and logistics at Cargill, now consults for shippers. Contact him at <a href="mailto:john-mccauley1@outlook.com">john-mccauley1@outlook.com</a>. </div>

We are a strange bunch, we logisticians. One of our self-designed millstones is our key definition of success, and it is always unattainable either at an individual or aggregate level. For container shipping, I refer to on-time arrival (OTA), although for other modes this is usually on-time delivery. We measure on-time arrival as a percentage, with the only feasible outcome to fail; the only question is by how much. Those odds aren’t acceptable outside of shipping. The analogy frequently used is patient operation success in a hospital. If a patient operation is successful 999 times out of 1,000, do we want to be the one that didn’t make it? But seriously, as pertains to container shipping, there are factors beyond the control of the carrier, including severe weather at ports and on the water and strikes and other labor disruptions. That means a 100% on-time arrival within 24 hours of schedule is unachievable on a volume and consistent basis. However, levels of 60% to 65% at the industry level, with no historical precedent for greater achievement nor likelihood of ever getting there, mean we are in a doom loop of trying, other than hoping, to make it better. This is despite the admirable efforts of the Gemini Cooperation alliance of Maersk and Hapag-Lloyd to achieve superior reliability. Which leads to my observations about the suggestions of a premium for higher reliability levels, and particularly that carriers would want to claw back some of the benefits of lower inventory costs for beneficial cargo owners (BCOs). A few obstacles Firstly, all BCOs will keep a mix of carriers (dual or multi-sourcing) for multiple reasons, including schedule, risk of losing space, price, etc., which means that while one carrier may achieve above-market reliability, their benefit to BCOs will be dragged down by the performance of their other choices in the industry. As an example, Carrier A achieves 90% reliability, Carrier B 60%. You have to program your planning systems for one, not multiple, delivery durations. Which do you choose? None are ideal, too long and you unnecessarily extend inventory carry, but if those same shipments arrive early, you need warehousing. Secondly, what about all the other problems caused by poor reliability? Stock-outs, air freight, extra staffing, warehousing and more. Focusing on inventory highlights a cash flow problem; many of the others are either opportunity costs (stock-outs, lost sales) or real costs (additional warehousing, staffing, sales contract non-compliance). I am not at all saying that container shipping is responsible for all of this, but it is an important contributor to the problem. Thirdly, any premium/bonus for above-target performance must surely have an offset for under-performance. And by this I don’t mean adjusted performance taking account of externalities. The non-performance must be explanation/excuse agnostic, meaning if the one-time arrival is not met, then this is a fail. In other modes of transport, this is the norm and why targets are never set at 100% even for best-in-class. Finally, I am all for improved reliability; most actors in container shipping share that view. How to get there is tricky and requires strategic intent. Many carriers will see it as unachievable and not worth the effort given the likelihood of high uncertainty of any reward other than some degree of customer stickiness. Until the whole industry improves its reliability, the scope for any form of premium/bonus for above-target performance is low. The only way I can see it working is to have a premium attached to index-linked contracts, and even then, that must be linked to performance against an agreed target level with penalties. Given the favorable buy-side economics in current contracting, this may be one for carriers to put on the backburner. John McCauley, formerly a vice president of transportation and logistics at Cargill, now consults for shippers. Contact him at john-mccauley1@outlook.com .

Premium pricing linked to vessel schedule reliability faces rough waters

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<div class="phx-topic abstract-wrapper">Alliance members Ocean Network Express, HMM and Yang Ming said they were “closely monitoring” the situation around the Red Sea with the focus on the safety of crew, ship and cargo.</div>

Alliance members Ocean Network Express, HMM and Yang Ming said they were “closely monitoring” the situation around the Red Sea with the focus on the safety of crew, ship and cargo.

<div class="phx-topic">The Premier Alliance unveiled its updated 2026 network Monday with services from Asia to Europe, the Mediterranean and US East Coast continuing to divert around southern Africa to avoid passing through the Red Sea. Premier Alliance members Ocean Network Express (ONE), HMM and Yang Ming said they were “closely monitoring” the situation around the Red Sea with the focus on the safety of the crew, ship and cargo. ONE CEO Jeremy Nixon said in a statement that the 2026 product was designed to be flexible and reliable to support global trade “while prioritizing safety and stability amid geopolitical uncertainties.” South Korean flagship HMM noted the “evolving situation in the Red Sea, Bab al-Mandab Strait and the Suez Canal” and promised “timely communication and support” for customers should services return to the shorter route. Peter Sand, chief analyst for rate benchmarking platform Xeneta, said the risk assessment currently being carried out by ocean carriers would consider the ability, opportunity and intent of Houthi militants to attack ships from their base in Yemen. “Though we have seen a growing interest in Suez transits in the past months, it’s still not at a point where the large-scale return is imminent,” Sand told the Journal of Commerce. “Premier Alliance have not been leading the ‘testing of waters,’ and we know that Japanese owners [of ONE] in general are amongst the most risk-averse ship owners.” CMA CGM’s Indamex service from Jan. 15 will transit the Suez Canal on fronthaul and backhaul voyages between India/Pakistan and the US East Coast. <h3>Tempering market optimism </h3>Lars Jensen, CEO of Vespucci Maritime and a Journal of Commerce contributor, said although there was growing market optimism related to a return to the Red Sea, there was little clarity to support this. “Today, the Houthi Ministry of Foreign Affairs cautioned against what they termed ‘continued Zionist escalation in Gaza and flagrant violations of the ceasefire agreement,’” Jensen wrote in a LinkedIn post Monday. “This can be interpreted as a thinly veiled threat that they could choose to end their self-imposed ceasefire against merchant shipping unless the situation in Gaza develops in a way they see as more favorable,” he added. While the Premier Alliance rolls out its 2026 network, Sand said one area where shippers will be looking closely is schedule reliability. Xeneta data shows that Premier Alliance began at a global reliability of 36% in the first quarter, sliding to 22% in the third quarter before inching up to 23% thus far in the fourth quarter. Sand said across the services offered under the 2026 network, it appears the alliance will call fewer ports and, “that in itself could prove to be one pathway to better on-time performance.” In its updated 2026 product, HMM said its role in the Premier Alliance network would be bolstered by additional capacity from new vessels that will be delivered through 2026. The carrier has eight methanol-ready ships of 9,000 TEUs from a nine-ship order that will be completed in 2026 and in October announced orders for <a href="HMM inks $2.5 billion LNG container ship order | Journal of Commerce">12 dual-fuel LNG-capable vessels </a>of 13,000 TEUs with deliveries to start in 2027. “This updated network aims to deliver improved service reliability by means of an optimized global structure ... the refined network is designed to strengthen overall operational stability whilst preserving the company’s broad international reach,” HMM said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.</div>

The Premier Alliance unveiled its updated 2026 network Monday with services from Asia to Europe, the Mediterranean and US East Coast continuing to divert around southern Africa to avoid passing through the Red Sea. Premier Alliance members Ocean Network Express (ONE), HMM and Yang Ming said they were “closely monitoring” the situation around the Red Sea with the focus on the safety of the crew, ship and cargo. ONE CEO Jeremy Nixon said in a statement that the 2026 product was designed to be flexible and reliable to support global trade “while prioritizing safety and stability amid geopolitical uncertainties.” South Korean flagship HMM noted the “evolving situation in the Red Sea, Bab al-Mandab Strait and the Suez Canal” and promised “timely communication and support” for customers should services return to the shorter route. Peter Sand, chief analyst for rate benchmarking platform Xeneta, said the risk assessment currently being carried out by ocean carriers would consider the ability, opportunity and intent of Houthi militants to attack ships from their base in Yemen. “Though we have seen a growing interest in Suez transits in the past months, it’s still not at a point where the large-scale return is imminent,” Sand told the Journal of Commerce. “Premier Alliance have not been leading the ‘testing of waters,’ and we know that Japanese owners [of ONE] in general are amongst the most risk-averse ship owners.” CMA CGM’s Indamex service from Jan. 15 will transit the Suez Canal on fronthaul and backhaul voyages between India/Pakistan and the US East Coast. Tempering market optimism Lars Jensen, CEO of Vespucci Maritime and a Journal of Commerce contributor, said although there was growing market optimism related to a return to the Red Sea, there was little clarity to support this. “Today, the Houthi Ministry of Foreign Affairs cautioned against what they termed ‘continued Zionist escalation in Gaza and flagrant violations of the ceasefire agreement,’” Jensen wrote in a LinkedIn post Monday. “This can be interpreted as a thinly veiled threat that they could choose to end their self-imposed ceasefire against merchant shipping unless the situation in Gaza develops in a way they see as more favorable,” he added. While the Premier Alliance rolls out its 2026 network, Sand said one area where shippers will be looking closely is schedule reliability. Xeneta data shows that Premier Alliance began at a global reliability of 36% in the first quarter, sliding to 22% in the third quarter before inching up to 23% thus far in the fourth quarter. Sand said across the services offered under the 2026 network, it appears the alliance will call fewer ports and, “that in itself could prove to be one pathway to better on-time performance.” In its updated 2026 product, HMM said its role in the Premier Alliance network would be bolstered by additional capacity from new vessels that will be delivered through 2026. The carrier has eight methanol-ready ships of 9,000 TEUs from a nine-ship order that will be completed in 2026 and in October announced orders for 12 dual-fuel LNG-capable vessels of 13,000 TEUs with deliveries to start in 2027. “This updated network aims to deliver improved service reliability by means of an optimized global structure ... the refined network is designed to strengthen overall operational stability whilst preserving the company’s broad international reach,” HMM said. Contact Greg Knowler at greg.knowler@spglobal.com .

Premier Alliance’s 2026 network to maintain Red Sea diversions

<div class="phx-topic abstract-wrapper">New analysis shows a systematic displacement of tonnage from primary to secondary trade lanes has occurred over the past two years, while a shortage of capacity is looming over the smaller shipping segment. </div>

New analysis shows a systematic displacement of tonnage from primary to secondary trade lanes has occurred over the past two years, while a shortage of capacity is looming over the smaller shipping segment.

<div class="phx-topic">The massive injection of larger vessels into the Asia-Europe and Asia-Mediterranean trades over the past two years has pushed smaller vessels into the trans-Atlantic and Latin America corridors, spreading structural overcapacity to secondary lanes. However, despite more than 1.7 million TEUs of new tonnage set to be delivered in 2026, mostly in the 15,000-to-24,000-TEU range, there is a growing mismatch in terms of the size of ships needed, with vessels in the sub-5,000-TEU segment — the backbone of intra-regional and feeder networks — aging rapidly, according to new analysis. A systematic displacement of tonnage from primary to secondary trade lanes over the past two years was driven by extreme outward pressure from the Red Sea diversions, drought in the Panama Canal and the reshuffling of alliances in the first half of 2025, according to Sea-Intelligence Maritime Analysis. “To maintain weekly service frequency while navigating the longer sailing distances on Asia-Europe, carriers were forced to inject significant additional tonnage into Asia-North Europe,” Alan Murphy, CEO of Sea-Intelligence, wrote in this week’s Sunday Spotlight newsletter. The injection of so much capacity triggered a massive downstream effect. As carriers introduced new 24,000-TEU vessels into the extended North Europe services, the existing 14,000-to-20,000-TEU vessels were cascaded directly into the Asia-Mediterranean trade lane. In the trans-Pacific, the capacity management on the Asia-North America West and East coast trades through 2024 was operational in nature as carriers shuffled tonnage between the two trade lanes to mitigate Panama Canal draft restrictions, US port labor disruptions and the after-effects of the pandemic-induced volatility. The net effect was high movement of ships but not much change in capacity. In February of this year, the launch of new alliance structures — Gemini Cooperation, Premier Alliance and Mediterranean Shipping Co. as a standalone venture — provided the catalyst for a massive network shakeup, Sea-Intelligence noted. Carriers broke up established service loops and repositioned vessels globally to fit the new service networks. Volatile demand on Asia-North America West Coast saw a net reduction of 427,432 TEUs in the first half of 2025 as carriers blanked sailings to try to support rates, Murphy noted in the Sunday Spotlight. At the same time, the rapid growth on Asia-Mediterranean subsided, with Murphy surmising that after 18 months of absorbing cascaded tonnage from Asia-North Europe, the trade lane had likely reached a saturation point. In the first half of this year, the net capacity growth into Asia-Mediterranean decelerated by 79% compared with 2024. <h3>Steady operational state </h3>By the second half of 2025, the new alliance networks had reached a relatively steady operational state with the Mediterranean-North America East Coast trade lane emerging as a key cascading corridor, absorbing 127,686 TEUs in the second half, with most of that capacity from the Asia-Mediterranean trade, the Sunday Spotlight noted. A total of 14 vessels were shifted in the second half, 11 of those of 14,000 to 15,000 TEUs. Asia-East Coast South America (ECSA) was the next biggest net gainer in the second half, absorbing 112,998 TEUs. Most of that was from the two Asia-North America trade lanes that cascaded a combined 283,946 TEUs. A total of 32 vessels were shifted, with 72% of them in the 8,000- to 14,000-TEU segment. But Murphy noted that the nature of the growth in capacity was fundamentally different from the previous year, with 97% of the vessels entering the Asia-East Coast South America trade taking up permanent employment there and not being returned to their previous routes. “This meant that Asia-ECSA became a seemingly preferred destination for mid-size tonnage of 8,000-14,000 TEU vessels that had been cycled out of the main east-west trade lanes,” he said. As the dust settles from the alliance reshuffling of capacity, new analysis from consultancy MDS Transmodal notes that should carriers return to large-scale Red Sea transits, it will expose the imbalance that has built up in the global fleet over the past few years. “While much of the industry has focused on the temporary capacity absorption created by rerouting around Africa, the underlying fundamentals point to something far more persistent: a container fleet that is oversupplied at the top end but increasingly shrinking at the bottom,” Antonella Teodoro, senior consultant at MDS Transmodal, noted in her analysis titled The Post-Red Sea Fleet Paradox: Oversupply at the Top, Shortages at the Bottom. “As diversions unwind and new ships continue to arrive, the industry faces two very different capacity problems — one defined by excess, the other by scarcity,” Teodoro said. <h3>Small ships crucial to regional segment </h3>In 2025, the capacity ordered in the 10,000-to-20,000-TEU bracket was 1.6 million TEUs and the ships greater than 20,000 TEUs comprised 1.3 million TEUs. By contrast, in the less-than-5,000-TEU segment, the 2025 order book was at 442,182 TEUs, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Teodoro said the sub-5,000-TEU segment was crucial for the intra-regional and feeder networks, but more than 60% of the vessels were at least 25 years old or older, making them prime scrapping candidates. Yet the order book in these size categories was almost non-existent. “By 2030, the global fleet below 2,500 TEUs could contract by 40% to 80%, with the 500-to-999-TEU category almost disappearing entirely,” she said. “This matters because many port systems depend on these vessels in a way that cannot be substituted ... by larger tonnage, regardless of how cheap or abundant it becomes.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5ea90874-1017-4ee9-a80c-de2dfc51d88b"></dynamic-object></div>Alphaliner shipping analyst Mael Pape-Léostic said there are 593 vessels in the sub-5,000-TEU bracket that are 25 years old or older out of 4,473 ships currently trading — 13% of the fleet. In the sub-2,500-TEU segment, 17% of the trading fleet is 25 years old or older. “After a first wave of orders mainly focusing on large ships, we saw carriers this year in particular ordering smaller units with a high interest for specific classes like Bangkokmax [1,700-1,900 TEUs] and Chittagongmax [2,800 TEUs],” Pape-Léostic told the Journal of Commerce. “The ships of smaller segments of the market are aging, but it seems that carriers and non-operating owners are now in the process of rejuvenating this fleet after having focused on mainliners,” he added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The massive injection of larger vessels into the Asia-Europe and Asia-Mediterranean trades over the past two years has pushed smaller vessels into the trans-Atlantic and Latin America corridors, spreading structural overcapacity to secondary lanes. However, despite more than 1.7 million TEUs of new tonnage set to be delivered in 2026, mostly in the 15,000-to-24,000-TEU range, there is a growing mismatch in terms of the size of ships needed, with vessels in the sub-5,000-TEU segment — the backbone of intra-regional and feeder networks — aging rapidly, according to new analysis. A systematic displacement of tonnage from primary to secondary trade lanes over the past two years was driven by extreme outward pressure from the Red Sea diversions, drought in the Panama Canal and the reshuffling of alliances in the first half of 2025, according to Sea-Intelligence Maritime Analysis. “To maintain weekly service frequency while navigating the longer sailing distances on Asia-Europe, carriers were forced to inject significant additional tonnage into Asia-North Europe,” Alan Murphy, CEO of Sea-Intelligence, wrote in this week’s Sunday Spotlight newsletter. The injection of so much capacity triggered a massive downstream effect. As carriers introduced new 24,000-TEU vessels into the extended North Europe services, the existing 14,000-to-20,000-TEU vessels were cascaded directly into the Asia-Mediterranean trade lane. In the trans-Pacific, the capacity management on the Asia-North America West and East coast trades through 2024 was operational in nature as carriers shuffled tonnage between the two trade lanes to mitigate Panama Canal draft restrictions, US port labor disruptions and the after-effects of the pandemic-induced volatility. The net effect was high movement of ships but not much change in capacity. In February of this year, the launch of new alliance structures — Gemini Cooperation, Premier Alliance and Mediterranean Shipping Co. as a standalone venture — provided the catalyst for a massive network shakeup, Sea-Intelligence noted. Carriers broke up established service loops and repositioned vessels globally to fit the new service networks. Volatile demand on Asia-North America West Coast saw a net reduction of 427,432 TEUs in the first half of 2025 as carriers blanked sailings to try to support rates, Murphy noted in the Sunday Spotlight. At the same time, the rapid growth on Asia-Mediterranean subsided, with Murphy surmising that after 18 months of absorbing cascaded tonnage from Asia-North Europe, the trade lane had likely reached a saturation point. In the first half of this year, the net capacity growth into Asia-Mediterranean decelerated by 79% compared with 2024. Steady operational state By the second half of 2025, the new alliance networks had reached a relatively steady operational state with the Mediterranean-North America East Coast trade lane emerging as a key cascading corridor, absorbing 127,686 TEUs in the second half, with most of that capacity from the Asia-Mediterranean trade, the Sunday Spotlight noted. A total of 14 vessels were shifted in the second half, 11 of those of 14,000 to 15,000 TEUs. Asia-East Coast South America (ECSA) was the next biggest net gainer in the second half, absorbing 112,998 TEUs. Most of that was from the two Asia-North America trade lanes that cascaded a combined 283,946 TEUs. A total of 32 vessels were shifted, with 72% of them in the 8,000- to 14,000-TEU segment. But Murphy noted that the nature of the growth in capacity was fundamentally different from the previous year, with 97% of the vessels entering the Asia-East Coast South America trade taking up permanent employment there and not being returned to their previous routes. “This meant that Asia-ECSA became a seemingly preferred destination for mid-size tonnage of 8,000-14,000 TEU vessels that had been cycled out of the main east-west trade lanes,” he said. As the dust settles from the alliance reshuffling of capacity, new analysis from consultancy MDS Transmodal notes that should carriers return to large-scale Red Sea transits, it will expose the imbalance that has built up in the global fleet over the past few years. “While much of the industry has focused on the temporary capacity absorption created by rerouting around Africa, the underlying fundamentals point to something far more persistent: a container fleet that is oversupplied at the top end but increasingly shrinking at the bottom,” Antonella Teodoro, senior consultant at MDS Transmodal, noted in her analysis titled The Post-Red Sea Fleet Paradox: Oversupply at the Top, Shortages at the Bottom. “As diversions unwind and new ships continue to arrive, the industry faces two very different capacity problems — one defined by excess, the other by scarcity,” Teodoro said. Small ships crucial to regional segment In 2025, the capacity ordered in the 10,000-to-20,000-TEU bracket was 1.6 million TEUs and the ships greater than 20,000 TEUs comprised 1.3 million TEUs. By contrast, in the less-than-5,000-TEU segment, the 2025 order book was at 442,182 TEUs, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. Teodoro said the sub-5,000-TEU segment was crucial for the intra-regional and feeder networks, but more than 60% of the vessels were at least 25 years old or older, making them prime scrapping candidates. Yet the order book in these size categories was almost non-existent. “By 2030, the global fleet below 2,500 TEUs could contract by 40% to 80%, with the 500-to-999-TEU category almost disappearing entirely,” she said. “This matters because many port systems depend on these vessels in a way that cannot be substituted ... by larger tonnage, regardless of how cheap or abundant it becomes.” Alphaliner shipping analyst Mael Pape-Léostic said there are 593 vessels in the sub-5,000-TEU bracket that are 25 years old or older out of 4,473 ships currently trading — 13% of the fleet. In the sub-2,500-TEU segment, 17% of the trading fleet is 25 years old or older. “After a first wave of orders mainly focusing on large ships, we saw carriers this year in particular ordering smaller units with a high interest for specific classes like Bangkokmax [1,700-1,900 TEUs] and Chittagongmax [2,800 TEUs],” Pape-Léostic told the Journal of Commerce. “The ships of smaller segments of the market are aging, but it seems that carriers and non-operating owners are now in the process of rejuvenating this fleet after having focused on mainliners,” he added. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Cascading container tonnage spreads structural overcapacity to secondary lanes

<div class="phx-topic abstract-wrapper">Data from consultants Trade and Transport Group shows the impact of regulatory changes as de minimis traffic fell significantly while regular air cargo increased.</div>

Data from consultants Trade and Transport Group shows the impact of regulatory changes as de minimis traffic fell significantly while regular air cargo increased.

<div class="phx-topic">A fundamental shift in trans-Pacific air freight trade flows since the US eliminated the de minimis exemption for low-value goods in May is becoming clearer, with a decline in China-US traffic replaced by booming imports from Taiwan and Vietnam. Data from consultants Trade and Transport Group shows the impact of the regulatory changes as de minimis traffic fell significantly while regular air cargo increased. “The decline in China to US traffic has been more than offset, particularly by air freight from Taiwan and Vietnam, and it is mainly linked to computers and parts, as well as industrial equipment,” Frederic Horst, managing director of Trade and Transport Group, told the Journal of Commerce. In the first nine months of the year, US imports of air cargo from China were down 10.1% year over year, Trade and Transport data shows. But imports from Northeast Asia as a whole rose 36.4%, while imports from Southeast Asian origins were up almost 50%.  A deeper dive into the data shows US air cargo imports from Taiwan from January through September jumped almost 91% year over year, imports from Vietnam rose almost 80% and imports from Thailand were up more than 40%. Computers and accessories, industrial equipment and parts; audio, video and optical components; and mobile phones comprised the bulk of the air freight shipments. The trend has also been picked up by Taiwan-based Dimerco Express Group, which has urged shippers to factor the supply chain changes into their 2026 shipment plans. “Following changes to US de minimis rules, some direct China-US e-commerce flows have decreased, but more cargo is now routed via alternative hubs and forward-stocking models, making trade lanes more diversified,” Catherine Chien, chairwoman of Dimerco Express Group, said in a market update.  “Demand for high-tech, AI-related and e-commerce shipments continues to drive growth in air freight from the Asia-Pacific region to North America and Europe,” Chien added. “Shippers that can flex between multiple lanes, multiple modes and multiple origin countries will be better positioned than those relying on a single country or mode.” <h3>US import data distorted by e-commerce </h3>The main driver of inbound air cargo from Asia to the US has been e-commerce, which, over the past few years, has created a growing gap in US air cargo data. But the removal in May of the de minimis exemption for low-value imports from China, followed by the removal of de minimis rules for all US trading partners in August, has led to a fundamental change in the mix of air cargo. “Regular air freight imports — i.e. consignments greater than $2,000 — are up 16.5% for the first nine months, while overall inbound air cargo traffic [to the US] is down 2.5%,” Horst said. Data from air cargo analyst Rotate shows freighter operators have shifted capacity in Asia to follow the moving export trend. Direct air freight capacity offered from Southeast Asia to North America from May 2 — when the de minimis tariff on China imports was eliminated — through November was up 89% at 102,700 metric tons.  <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8d7ed0b1-01de-471d-b540-bed610465c9a"></dynamic-object></div>However, the analyst pointed out that much of Vietnam’s air freight trade is shipped indirectly through Asian hubs in mainland China, Hong Kong, South Korea and Japan, so the actual volume from Southeast Asia to North America is higher. The Freightos Air Index shows China-US rates at a 2025 high exceeding $8/kg this week, higher than last year’s $7.30/kg peak, according to a market update from Freightos Tuesday.  The International Air Transport Association expects global air volume growth of 3.1% for 2025 and 2.6% for 2026 despite the impact of the US tariffs on volume flows. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A fundamental shift in trans-Pacific air freight trade flows since the US eliminated the de minimis exemption for low-value goods in May is becoming clearer, with a decline in China-US traffic replaced by booming imports from Taiwan and Vietnam.  Data from consultants Trade and Transport Group shows the impact of the regulatory changes as de minimis traffic fell significantly while regular air cargo increased.  “The decline in China to US traffic has been more than offset, particularly by air freight from Taiwan and Vietnam, and it is mainly linked to computers and parts, as well as industrial equipment,” Frederic Horst, managing director of Trade and Transport Group, told the Journal of Commerce.  In the first nine months of the year, US imports of air cargo from China were down 10.1% year over year, Trade and Transport data shows. But imports from Northeast Asia as a whole rose 36.4%, while imports from Southeast Asian origins were up almost 50%.   A deeper dive into the data shows US air cargo imports from Taiwan from January through September jumped almost 91% year over year, imports from Vietnam rose almost 80% and imports from Thailand were up more than 40%. Computers and accessories, industrial equipment and parts; audio, video and optical components; and mobile phones comprised the bulk of the air freight shipments.  The trend has also been picked up by Taiwan-based Dimerco Express Group, which has urged shippers to factor the supply chain changes into their 2026 shipment plans.  “Following changes to US de minimis rules, some direct China-US e-commerce flows have decreased, but more cargo is now routed via alternative hubs and forward-stocking models, making trade lanes more diversified,” Catherine Chien, chairwoman of Dimerco Express Group, said in a market update.   “Demand for high-tech, AI-related and e-commerce shipments continues to drive growth in air freight from the Asia-Pacific region to North America and Europe,” Chien added. “Shippers that can flex between multiple lanes, multiple modes and multiple origin countries will be better positioned than those relying on a single country or mode.”  US import data distorted by e-commerce  The main driver of inbound air cargo from Asia to the US has been e-commerce, which, over the past few years, has created a growing gap in US air cargo data. But the removal in May of the de minimis exemption for low-value imports from China, followed by the removal of de minimis rules for all US trading partners in August, has led to a fundamental change in the mix of air cargo.  “Regular air freight imports — i.e. consignments greater than $2,000 — are up 16.5% for the first nine months, while overall inbound air cargo traffic [to the US] is down 2.5%,” Horst said.  Data from air cargo analyst Rotate shows freighter operators have shifted capacity in Asia to follow the moving export trend. Direct air freight capacity offered from Southeast Asia to North America from May 2 — when the de minimis tariff on China imports was eliminated — through November was up 89% at 102,700 metric tons.   However, the analyst pointed out that much of Vietnam’s air freight trade is shipped indirectly through Asian hubs in mainland China, Hong Kong, South Korea and Japan, so the actual volume from Southeast Asia to North America is higher.  The Freightos Air Index shows China-US rates at a 2025 high exceeding $8/kg this week, higher than last year’s $7.30/kg peak, according to a market update from Freightos Tuesday.   The International Air Transport Association expects global air volume growth of 3.1% for 2025 and 2.6% for 2026 despite the impact of the US tariffs on volume flows.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

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Rising US air freight imports from Taiwan, Vietnam offset drop in China trade 

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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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<div class="phx-topic abstract-wrapper">The US Department of Transportation estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses, most of whom would lose eligibility under a proposed rule that would bar certain immigrants from operating commercial vehicles.</div>

The US Department of Transportation estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses, most of whom would lose eligibility under a proposed rule that would bar certain immigrants from operating commercial vehicles.

<div class="phx-topic">The trucking industry differs on how much of any impact stricter federal rules on immigrants driving in the US will have, with one side arguing that a crackdown will move the needle on subdued pricing and the other warning that only a demand rebound will end the three-year freight slump. The US Department of Transportation (USDOT) estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses (CDLs), most of whom would lose eligibility under a proposed rule that would bar certain immigrants, including asylum seekers, from operating commercial vehicles. No one has confirmed the number in the Federal Motor Carrier Safety Administration’s (FMCSA’s) emergency interim rule; states issue CDLs, not the federal government. “There is a lack of clarity on where the 200,000 figure comes from in the first place,” Jason Miller, professor of supply chain management for Michigan State University, told the Journal of Commerce. Under the DOT’s proposed rule, only drivers holding H-2A, H-2B or E-2 visas would be permitted to retain non-domiciled CDLs. But the US Court of Appeals for the District of Columbia Circuit has placed the rule on hold indefinitely. Even so, some industry executives argue that enforcement activity — rather than the rule itself — could have a more immediate effect on trucking capacity. Thom Albrecht, chief revenue officer of insurer Reliance Partners, said he believes up to 15% of current US truckload capacity may be tied to illegitimate operations, including cargo theft and carriers operating outside of US rules and regulations. Albrecht emphasized that the figure is an estimate based on publicly available CDL data, not an exact count. “That doesn’t mean we have 15% excess capacity. I would suggest it’s probably 2% to 3%. It would not take a whole lot for the industry to start feeling better,” he said during a webinar last week hosted by Deutsche Bank. “There have been so many bad actors let into this industry over the last few years. That’s the single-biggest deterrent for this industry to get healthy.” Ryan Joyce, CEO of cargo security firm Genlogs, said his company found nearly 1,000 Mexican trucking companies that are legally allowed to cross the border with international freight, but also operating far beyond the permitted zone inside the US. Joyce said those carriers are engaging in cabotage — legally delivering an international load, then illegally hauling a domestic load between two US locations. “The top violator, for example, was observed hundreds of times operating as far north as Minnesota, Wisconsin, and New York,” Joyce said on the Deutsche Bank webinar. He also said the non-domiciled CDL problem is tied to cargo theft, with some unsafe carriers shutting down one day, paying cash to obtain a new motor carrier number, and then reopening the next day, often referred to as “chameleon carriers.” Albrecht and Joyce are among those who expect a swift market response as insurers and USDOT increase scrutiny of illegitimate operations. “I follow certain threads of truck drivers online, and there are discussions that a lot of these non-domiciled CDLs coming up for renewal won’t be renewed,” Albrecht said on the webinar. “A lot of them have said that post-Christmas, that’s it for them. That this is the last hurrah.” Others, however, argue that the non-domiciled CDL and cabotage crackdowns will not produce a sudden spike in trucking rates. <h3>Skepticism abounds </h3>In audits conducted of Minnesota and New York, most of the violations cited by USDOT involved otherwise properly issued non-domiciled CDLs in which the license expiration date extended beyond the driver’s employment authorization, rather than wholesale ineligibility. And even when drivers with a valid non-domiciled CDL fail an English-language proficiency exam, many continue operating once highway patrol leaves the scene. Police cannot immobilize the vehicle because it is the driver, not the truck, who is taken out of service. “The driver will just wait a little bit and once the officer leaves, he’ll just drive off as if nothing happened,” said Cliff Bates, former owner of Capital City Trucking, a trucking company that went out of business within the last two years. “Even when the driver is dropped off at the next exit, the minute the patrol leaves, he’s walking back down the highway to the truck again.” While Bates agrees that reckless driving by some non-domiciled CDL holders is a major problem, he questions how quickly the Trump administration can act. “I think they’re going to cut off the spigot for new CDLs, but I question the assumption that this administration will act swiftly with midterms coming in less than a year,” Bates told the Journal of Commerce. He said rapid enforcement could raise rates and, by extension, consumer prices. Still, broader macroeconomic factors may limit how much enforcement alone can shift the market. Slashing capacity does not address weak US manufacturing data that has softened truckload demand, according to Miller. He noted, for example, that single-family building permits have fallen 10% from last year, as of the last update before the US government shutdown, and that fracking activity isn’t going to rebound with crude oil at current prices. “There are also individuals out there with the requisite background who could re-enter the [trucking] industry rather quickly if conditions significantly improve from a pricing standpoint, which would blunt any loss of non-domiciled capacity,” Miller said. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

The trucking industry differs on how much of any impact stricter federal rules on immigrants driving in the US will have, with one side arguing that a crackdown will move the needle on subdued pricing and the other warning that only a demand rebound will end the three-year freight slump. The US Department of Transportation (USDOT) estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses (CDLs), most of whom would lose eligibility under a proposed rule that would bar certain immigrants, including asylum seekers, from operating commercial vehicles. No one has confirmed the number in the Federal Motor Carrier Safety Administration’s (FMCSA’s) emergency interim rule; states issue CDLs, not the federal government. “There is a lack of clarity on where the 200,000 figure comes from in the first place,” Jason Miller, professor of supply chain management for Michigan State University, told the Journal of Commerce. Under the DOT’s proposed rule, only drivers holding H-2A, H-2B or E-2 visas would be permitted to retain non-domiciled CDLs. But the US Court of Appeals for the District of Columbia Circuit has placed the rule on hold indefinitely. Even so, some industry executives argue that enforcement activity — rather than the rule itself — could have a more immediate effect on trucking capacity. Thom Albrecht, chief revenue officer of insurer Reliance Partners, said he believes up to 15% of current US truckload capacity may be tied to illegitimate operations, including cargo theft and carriers operating outside of US rules and regulations. Albrecht emphasized that the figure is an estimate based on publicly available CDL data, not an exact count. “That doesn’t mean we have 15% excess capacity. I would suggest it’s probably 2% to 3%. It would not take a whole lot for the industry to start feeling better,” he said during a webinar last week hosted by Deutsche Bank. “There have been so many bad actors let into this industry over the last few years. That’s the single-biggest deterrent for this industry to get healthy.” Ryan Joyce, CEO of cargo security firm Genlogs, said his company found nearly 1,000 Mexican trucking companies that are legally allowed to cross the border with international freight, but also operating far beyond the permitted zone inside the US. Joyce said those carriers are engaging in cabotage — legally delivering an international load, then illegally hauling a domestic load between two US locations. “The top violator, for example, was observed hundreds of times operating as far north as Minnesota, Wisconsin, and New York,” Joyce said on the Deutsche Bank webinar. He also said the non-domiciled CDL problem is tied to cargo theft, with some unsafe carriers shutting down one day, paying cash to obtain a new motor carrier number, and then reopening the next day, often referred to as “chameleon carriers.” Albrecht and Joyce are among those who expect a swift market response as insurers and USDOT increase scrutiny of illegitimate operations. “I follow certain threads of truck drivers online, and there are discussions that a lot of these non-domiciled CDLs coming up for renewal won’t be renewed,” Albrecht said on the webinar. “A lot of them have said that post-Christmas, that’s it for them. That this is the last hurrah.” Others, however, argue that the non-domiciled CDL and cabotage crackdowns will not produce a sudden spike in trucking rates. Skepticism abounds In audits conducted of Minnesota and New York, most of the violations cited by USDOT involved otherwise properly issued non-domiciled CDLs in which the license expiration date extended beyond the driver’s employment authorization, rather than wholesale ineligibility. And even when drivers with a valid non-domiciled CDL fail an English-language proficiency exam, many continue operating once highway patrol leaves the scene. Police cannot immobilize the vehicle because it is the driver, not the truck, who is taken out of service. “The driver will just wait a little bit and once the officer leaves, he’ll just drive off as if nothing happened,” said Cliff Bates, former owner of Capital City Trucking, a trucking company that went out of business within the last two years. “Even when the driver is dropped off at the next exit, the minute the patrol leaves, he’s walking back down the highway to the truck again.” While Bates agrees that reckless driving by some non-domiciled CDL holders is a major problem, he questions how quickly the Trump administration can act. “I think they’re going to cut off the spigot for new CDLs, but I question the assumption that this administration will act swiftly with midterms coming in less than a year,” Bates told the Journal of Commerce. He said rapid enforcement could raise rates and, by extension, consumer prices. Still, broader macroeconomic factors may limit how much enforcement alone can shift the market. Slashing capacity does not address weak US manufacturing data that has softened truckload demand, according to Miller. He noted, for example, that single-family building permits have fallen 10% from last year, as of the last update before the US government shutdown, and that fracking activity isn’t going to rebound with crude oil at current prices. “There are also individuals out there with the requisite background who could re-enter the [trucking] industry rather quickly if conditions significantly improve from a pricing standpoint, which would blunt any loss of non-domiciled capacity,” Miller said. Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking labor

Impact of non-domiciled CDL enforcement splits US trucking sector

<div class="phx-topic abstract-wrapper">Hapag-Lloyd customers have expressed concerns about liability exposure if a US-India service were to resume transits through the Red Sea and Suez Canal. . </div>

Hapag-Lloyd customers have expressed concerns about liability exposure if a US-India service were to resume transits through the Red Sea and Suez Canal. .

<div class="phx-topic">Editor’s note: This story has been updated to better reflect Hapag-Lloyd’s outreach to its India customers on a return to Suez Canal routings. Hapag-Lloyd customers using the India-US East Coast “TPI” service aren’t ready to return to Suez Canal routings in the short-term, local industry sources say, an example of the obstacles container lines face before they will resume Red Sea transits. The opposition to TPI returning to the Red Sea routing, which would expose forwarders and cargo owners to increased liabilities if a vessel was attacked, came primarily from Expeditors International, sources told the Journal of Commerce. The US-based forwarder is understood to have flagged ongoing uncertainty around the insurance premium implications of a Suez routing in response to Hapag-Lloyd’s outreach for customer feedback about potentially resuming a Red Sea/Suez routing for the TPI service. Hapag-Lloyd has stated that it plans a gradual return to Suez Canal transits when it can ensure the safety of its crew, cargo, and vessels. “Expeditors was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” an India-based shipping executive with knowledge of the matter told the Journal of Commerce. “Forwarders without this requirement are more willing to ship as they are able to manage the necessary insurance coverage for Suez transits.” When contacted by the Journal of Commerce for comment, a global spokesperson for Hapag-Lloyd said no timeline has been set for a return to the Suez route. “We continue to monitor developments very closely and maintain a detailed plan for a potential return, but any decision will only be taken when the security situation is sustainably safe,” the spokesperson said. “We need to see constant stability and tangible progress before routing vessels back through the Suez Canal.” Expeditors’ support is critical as it moves approximately 400 TEUs per week on Hapag-Lloyd’s India–US network, mostly on the TPI. The carrier is believed to have received positive signals for a Suez return from other major global forwarders such as DSV, Kuehne + Nagel and C.H. Robinson. Sources across European carriers agree that extra insurance exposure remains a sticking point in customer engagement on Suez resumption efforts. US retailer Costco is said to be among the Indian goods buyers reluctant to commit cargo support for Suez transits. Hapag-Lloyd is a predominant operator on the India-USEC trade. Out of an estimated 1.3 million TEUs shipped from India to the US this year through November, the carrier handled approximately 303,500 TEUs, representing about 23% of the market, according to industry data. <h3>Carriers weigh Red Sea return </h3>Ocean carriers have been weighing a resumption of mainline Red Sea/Suez Canal transits in the aftermath of what has been a shaky ceasefire between Israel and Hamas in Gaza, but most shipping executives say the security situation is still too unsettled, forcing continued diversions around southern Africa. The Premier Alliance <a href="https://www.joc.com/article/premier-alliances-2026-network-to-maintain-red-sea-diversions-6134989">unveiled its updated 2026 network this week</a> with services from Asia to Europe, the Mediterranean and the US East Coast continuing to divert around the Cape of Good Hope to avoid passing through the Red Sea. Still, Ocean Network Express <a href="https://www.joc.com/article/one-returns-to-red-sea-under-slot-charter-deal-with-thailands-rcl-partners-6136866">confirmed Wednesday</a> it will make a tentative return to the Red Sea cargo market under a slot charter agreement with three regional carriers. Sunil Vaswani, executive director of the Container Shipping Lines Association (India), said while there have been some eastbound sailing attempts over the Suez, most lines want to “test the Red Sea waters” ahead of implementing drastic network changes, given the persistent geopolitical volatility. Meanwhile, CMA CGM <a href="https://www.joc.com/article/stretched-logistics-capacity-in-europe-threatened-by-red-sea-return-6129492">is set to resume a Suez-based rotation for its India-USEC “Indamex” service</a> from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi departing India’s Nhava Sheva Port Jan. 18 and transiting the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Editor’s note: This story has been updated to better reflect Hapag-Lloyd’s outreach to its India customers on a return to Suez Canal routings. Hapag-Lloyd customers using the India-US East Coast “TPI” service aren’t ready to return to Suez Canal routings in the short-term, local industry sources say, an example of the obstacles container lines face before they will resume Red Sea transits. The opposition to TPI returning to the Red Sea routing, which would expose forwarders and cargo owners to increased liabilities if a vessel was attacked, came primarily from Expeditors International, sources told the Journal of Commerce. The US-based forwarder is understood to have flagged ongoing uncertainty around the insurance premium implications of a Suez routing in response to Hapag-Lloyd’s outreach for customer feedback about potentially resuming a Red Sea/Suez routing for the TPI service. Hapag-Lloyd has stated that it plans a gradual return to Suez Canal transits when it can ensure the safety of its crew, cargo, and vessels. “Expeditors was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” an India-based shipping executive with knowledge of the matter told the Journal of Commerce. “Forwarders without this requirement are more willing to ship as they are able to manage the necessary insurance coverage for Suez transits.” When contacted by the Journal of Commerce for comment, a global spokesperson for Hapag-Lloyd said no timeline has been set for a return to the Suez route. “We continue to monitor developments very closely and maintain a detailed plan for a potential return, but any decision will only be taken when the security situation is sustainably safe,” the spokesperson said. “We need to see constant stability and tangible progress before routing vessels back through the Suez Canal.” Expeditors’ support is critical as it moves approximately 400 TEUs per week on Hapag-Lloyd’s India–US network, mostly on the TPI. The carrier is believed to have received positive signals for a Suez return from other major global forwarders such as DSV, Kuehne + Nagel and C.H. Robinson. Sources across European carriers agree that extra insurance exposure remains a sticking point in customer engagement on Suez resumption efforts. US retailer Costco is said to be among the Indian goods buyers reluctant to commit cargo support for Suez transits. Hapag-Lloyd is a predominant operator on the India-USEC trade. Out of an estimated 1.3 million TEUs shipped from India to the US this year through November, the carrier handled approximately 303,500 TEUs, representing about 23% of the market, according to industry data. Carriers weigh Red Sea return Ocean carriers have been weighing a resumption of mainline Red Sea/Suez Canal transits in the aftermath of what has been a shaky ceasefire between Israel and Hamas in Gaza, but most shipping executives say the security situation is still too unsettled, forcing continued diversions around southern Africa. The Premier Alliance unveiled its updated 2026 network this week with services from Asia to Europe, the Mediterranean and the US East Coast continuing to divert around the Cape of Good Hope to avoid passing through the Red Sea. Still, Ocean Network Express confirmed Wednesday it will make a tentative return to the Red Sea cargo market under a slot charter agreement with three regional carriers. Sunil Vaswani, executive director of the Container Shipping Lines Association (India), said while there have been some eastbound sailing attempts over the Suez, most lines want to “test the Red Sea waters” ahead of implementing drastic network changes, given the persistent geopolitical volatility. Meanwhile, CMA CGM is set to resume a Suez-based rotation for its India-USEC “Indamex” service from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi departing India’s Nhava Sheva Port Jan. 18 and transiting the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. Contact Bency Mathew at bencyvmathew@gmail.com .

Hapag-Lloyd India shippers resist prospect of Suez return in short-term

<div class="phx-topic abstract-wrapper">As economists question whether the US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight manufacturing orders is showing signs of sputtering.</div>

As economists question whether the US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight manufacturing orders is showing signs of sputtering.

<div class="phx-topic">The following is the cover story for the Journal of Commerce’s 2026 Annual Review and Outlook.US freight demand enters 2026 with import container volumes in retraction and surface freight demand in a three-year slump.  Container volumes will be flat to down next year, according to forecasts from S&amp;P Global Ratings and Moody’s, while truckload and less-than-truckload (LTL) operators steel themselves for another so-so year. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135159_0.1.jpg"></img></div>US air cargo growth is declining, with volumes down on a year-over-year basis for six straight months through October, according to the International Air Transport Association. Intermodal growth, meanwhile, has notably fared well, rising in the mid-single digits.  Importantly, and despite negative headlines on unemployment and retail confidence, economists expect the US economy to muster on, most likely avoiding a recession. US real gross domestic product (GDP) will grow 2.2% in 2026 after climbing 2% in 2025 and 2.8% in 2024, according to economists from S&amp;P Global, the parent company of the Journal of Commerce.   But while the US economy expands, US inventory levels are not. And following months of frontloading imports, US retailers and other importers are replenishing gingerly. US inventory levels mildly expanded in November, according to the Logistics Managers Index. But companies have plenty of incentives to keep inventories lean, as the index shows that carrying costs have been increasing monthly since the beginning of 2025.   Attention is focused on US consumers as they show signs of cutting back amid stubborn inflation. The major consumer pricing indicators — via the University of Michigan’s index and the Consumer Board’s survey — paint a picture of an increasingly jittery consumer, a picture that is no longer exclusive to low-income Americans. The latest US unemployment numbers from the US Labor Department show hiring expanded in October, but at a slower pace, while more workers are staying put in their current roles. As economists question whether the near-unstoppable US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight is showing signs of sputtering. New US manufacturing orders in November fell to their lowest point since May, according to the US manufacturing ISM. <h3>Warehouses ‘filled with unsold stock’ </h3>A Conference Board survey on Nov. 22 revealed that falling US consumer confidence had reached its lowest since April, when the US began its tariff onslaught. “Manufacturers are making more goods but often not finding buyers for these products,” said Chris Williamson, chief business economist at S&amp;P Global. “For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data was available in 2007. This unplanned accumulation of stock is usually a precursor to reduced production in the coming months.”  Another major driver of freight demand — housing — isn’t looking too good, either. Privately owned housing starts were down 11.1% year over year in August, the latest month for which data is available from the US Census Bureau following the US government shutdown.  The US economy in 2026 “entirely hinges on the housing industrial complex unlocking itself, and I don’t see that happening quickly,” Jason Miller, a Michigan State University supply chain professor, told the Journal of Commerce. Interest rates need to drop to allow house buyers to unlock lower financing, he said.  Keith Prather, co-founder and managing partner of consultancy Armada Corporate Intelligence, has a more positive outlook but doesn’t expect an immediate jolt to the economy.  “There are a lot of different moving parts in the US economy right now,” Prather said. He pointed to the reshoring of manufacturing in the US as a trend that will — eventually — create more domestic freight demand, although not in the short term.  <h3>Feel familiar?   </h3>The weakening demand indicators and downbeat freight forecasts suggest a first half of 2026 that resembles much of 2025. The for-hire trucking ton-mile index inched up just 0.4% in the first eight months of 2025 compared with the same period in 2024.   The supply-demand imbalance in trucking seemed to become more punishing as 2025 progressed, with little sign of a resolution or turning point ahead.  “We really thought toward the end of last year, 2024, that we had reached an equilibrium,” said Jeff Tucker, CEO of Tucker Company Worldwide, the largest family-owned US freight brokerage. “We felt 2025 showed some promise ... [but] nobody saw the breadth and depth of the impact of the tariff regime. “ Despite the slump, intermodal volume has been resilient. Domestic container volume, excluding trailers, rose 3.5% year over year between January and October, while international intermodal increased 4.3% during the same period, according to the Intermodal Association of North America (IANA).   Intermodal demand in 2026, though, will continue to be heavily tied to tariffs, trucking and ports. There is a strong nexus between international intermodal and Asian imports to West Coast ports. Domestic intermodal demand is often tied to how easy it is to procure trucks and how much cost is a factor in procurement decisions. If tariffs, for example, are squeezing overall margins, then a shipper might convert less service-sensitive freight to intermodal to meet their budget targets.  <h3>Lurching into 2026  </h3>No import growth is rare in US ocean shipping. There have been just two periods in which US containerized import volumes have declined to the extent seen in recent months, said analyst John McCown. The most recent was in the spring of 2020, when retailers and other importers slashed orders on fears that retail consumption would plunge in the early days of the pandemic, and the first was 2008–09 in the wake of the financial crisis, he said.  “I think we’re looking at perhaps the worst performance year that I can recall, in 2026, in terms of volume growth,” McCown said.  S&amp;P Global Ratings on Dec. 10 forecast that US container volumes will be down 2% in 2026 from 2025, while Moody’s Ratings on Nov. 20 predicted flat to negative import volume growth. The S&amp;P Global outlook calls for a rebound in volume of 6% in 2027 on the hopes of a more stable trade policy. For all of 2025, imports are estimated to be down 1.4% from 2024 at 25.2 million TEUs, according to the National Retail Federation (NRF). US retailers are signaling they will be keeping volumes at a significant year-over-year deficit at least through April. Volumes in January, February, March and April are expected to be, respectively, 10.3%, 8.5%,16.8%, and 11% lower than the corresponding months in 2025, according to the Global Port Tracker, which is created by Hackett Associates on behalf of the NRF. Port operators, too, are budgeting for declines or only slow growth in 2026. The Port Authority of New York and New Jersey said in November it is budgeting for total container volumes of 8.5 million TEUs in 2026, which would be just over a 2% decline from 2024. Since 2016, NY-NJ port container volumes have grown at an annual average of 4.2%. Remarkably, US containerized exports have been resilient. Volumes in the first nine months of 2025 were up 2.1% from a year earlier, with containerized agricultural exports 1.2% higher in the same period, according to the latest available data from PIERS, a sister product of the Journal of Commerce within S&amp;P Global. In a twist of trade, US export growth is outpacing gains in imports, or a lack thereof. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.Journal of Commerce editorial staff contributed to this report. </div>

The following is the cover story for the Journal of Commerce’s 2026 Annual Review and Outlook. US freight demand enters 2026 with import container volumes in retraction and surface freight demand in a three-year slump.  Container volumes will be flat to down next year, according to forecasts from S&P Global Ratings and Moody’s, while truckload and less-than-truckload (LTL) operators steel themselves for another so-so year. US air cargo growth is declining, with volumes down on a year-over-year basis for six straight months through October, according to the International Air Transport Association. Intermodal growth, meanwhile, has notably fared well, rising in the mid-single digits.  Importantly, and despite negative headlines on unemployment and retail confidence, economists expect the US economy to muster on, most likely avoiding a recession. US real gross domestic product (GDP) will grow 2.2% in 2026 after climbing 2% in 2025 and 2.8% in 2024, according to economists from S&P Global, the parent company of the Journal of Commerce.   But while the US economy expands, US inventory levels are not. And following months of frontloading imports, US retailers and other importers are replenishing gingerly. US inventory levels mildly expanded in November, according to the Logistics Managers Index. But companies have plenty of incentives to keep inventories lean, as the index shows that carrying costs have been increasing monthly since the beginning of 2025.   Attention is focused on US consumers as they show signs of cutting back amid stubborn inflation. The major consumer pricing indicators — via the University of Michigan’s index and the Consumer Board’s survey — paint a picture of an increasingly jittery consumer, a picture that is no longer exclusive to low-income Americans. The latest US unemployment numbers from the US Labor Department show hiring expanded in October, but at a slower pace, while more workers are staying put in their current roles. As economists question whether the near-unstoppable US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight is showing signs of sputtering. New US manufacturing orders in November fell to their lowest point since May, according to the US manufacturing ISM. Warehouses ‘filled with unsold stock’ A Conference Board survey on Nov. 22 revealed that falling US consumer confidence had reached its lowest since April, when the US began its tariff onslaught. “Manufacturers are making more goods but often not finding buyers for these products,” said Chris Williamson, chief business economist at S&P Global. “For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data was available in 2007. This unplanned accumulation of stock is usually a precursor to reduced production in the coming months.”  Another major driver of freight demand — housing — isn’t looking too good, either. Privately owned housing starts were down 11.1% year over year in August, the latest month for which data is available from the US Census Bureau following the US government shutdown.  The US economy in 2026 “entirely hinges on the housing industrial complex unlocking itself, and I don’t see that happening quickly,” Jason Miller, a Michigan State University supply chain professor, told the Journal of Commerce. Interest rates need to drop to allow house buyers to unlock lower financing, he said.  Keith Prather, co-founder and managing partner of consultancy Armada Corporate Intelligence, has a more positive outlook but doesn’t expect an immediate jolt to the economy.  “There are a lot of different moving parts in the US economy right now,” Prather said. He pointed to the reshoring of manufacturing in the US as a trend that will — eventually — create more domestic freight demand, although not in the short term.  Feel familiar?   The weakening demand indicators and downbeat freight forecasts suggest a first half of 2026 that resembles much of 2025. The for-hire trucking ton-mile index inched up just 0.4% in the first eight months of 2025 compared with the same period in 2024.   The supply-demand imbalance in trucking seemed to become more punishing as 2025 progressed, with little sign of a resolution or turning point ahead.  “We really thought toward the end of last year, 2024, that we had reached an equilibrium,” said Jeff Tucker, CEO of Tucker Company Worldwide, the largest family-owned US freight brokerage. “We felt 2025 showed some promise ... [but] nobody saw the breadth and depth of the impact of the tariff regime. “ Despite the slump, intermodal volume has been resilient. Domestic container volume, excluding trailers, rose 3.5% year over year between January and October, while international intermodal increased 4.3% during the same period, according to the Intermodal Association of North America (IANA).   Intermodal demand in 2026, though, will continue to be heavily tied to tariffs, trucking and ports. There is a strong nexus between international intermodal and Asian imports to West Coast ports. Domestic intermodal demand is often tied to how easy it is to procure trucks and how much cost is a factor in procurement decisions. If tariffs, for example, are squeezing overall margins, then a shipper might convert less service-sensitive freight to intermodal to meet their budget targets.  Lurching into 2026  No import growth is rare in US ocean shipping. There have been just two periods in which US containerized import volumes have declined to the extent seen in recent months, said analyst John McCown. The most recent was in the spring of 2020, when retailers and other importers slashed orders on fears that retail consumption would plunge in the early days of the pandemic, and the first was 2008–09 in the wake of the financial crisis, he said.  “I think we’re looking at perhaps the worst performance year that I can recall, in 2026, in terms of volume growth,” McCown said.  S&P Global Ratings on Dec. 10 forecast that US container volumes will be down 2% in 2026 from 2025, while Moody’s Ratings on Nov. 20 predicted flat to negative import volume growth. The S&P Global outlook calls for a rebound in volume of 6% in 2027 on the hopes of a more stable trade policy. For all of 2025, imports are estimated to be down 1.4% from 2024 at 25.2 million TEUs, according to the National Retail Federation (NRF). US retailers are signaling they will be keeping volumes at a significant year-over-year deficit at least through April. Volumes in January, February, March and April are expected to be, respectively, 10.3%, 8.5%,16.8%, and 11% lower than the corresponding months in 2025, according to the Global Port Tracker, which is created by Hackett Associates on behalf of the NRF. Port operators, too, are budgeting for declines or only slow growth in 2026. The Port Authority of New York and New Jersey said in November it is budgeting for total container volumes of 8.5 million TEUs in 2026, which would be just over a 2% decline from 2024. Since 2016, NY-NJ port container volumes have grown at an annual average of 4.2%. Remarkably, US containerized exports have been resilient. Volumes in the first nine months of 2025 were up 2.1% from a year earlier, with containerized agricultural exports 1.2% higher in the same period, according to the latest available data from PIERS, a sister product of the Journal of Commerce within S&P Global. In a twist of trade, US export growth is outpacing gains in imports, or a lack thereof. Contact William B. Cassidy at bill.cassidy@spglobal.com .Journal of Commerce editorial staff contributed to this report.

Supply chain

US freight industry enters 2026 with low growth expectations

<div class="phx-topic abstract-wrapper">Robert Erni, who will step into the CFO job after the ocean carrier reports fiscal 2025 results in February, has 30 years of experience in financial roles across the logistics industry. </div>

Robert Erni, who will step into the CFO job after the ocean carrier reports fiscal 2025 results in February, has 30 years of experience in financial roles across the logistics industry.

<div class="phx-topic">Maersk on Friday announced a round of executive changes that include a new chief financial officer brought in from the forwarding world and the rotation of regional chiefs to new markets. The Copenhagen-based company said in a statement its board of directors picked Robert Erni as its new CFO, replacing Patrick Jany, who held the role for the last six years. Erni, who will step into the role after Maersk reports fiscal 2025 results on Feb. 5, has 30 years of experience in financial roles in the logistics industry. He spent two decades at Kuehne + Nagel, where he had roles across its global offices. Erni was also CFO at Panalpina until its acquisition by DSV and most recently CFO at German third-party logistics provider Dachser. Maersk Chief Executive Vincent Clerc said Erni’s “extensive international experience and strong leadership profile make him an excellent fit for the Maersk team.” Separately, Maersk also said three regional directors will be reshuffled to new offices at the start of 2026. Among those are Charles Van Der Steene, who has been Maersk’s president of North America since 2024 and has been with the carrier since 2011. Van Der Steene will take over as managing director for India following the departure of current director Richard Morgan. Maersk’s Asia-Pacific regional chief Ditlev Blicher will take over the North American offices, with Asia-Pacific regional CFO Scott Elliott taking over Blicher’s role. Maersk’s European offices will be headed by Guillaume Sauzedde, who joined Maersk in 2024. He will replace Aymeric Chandavoine, who is also leaving the company. Clerc said the change of regional chiefs reflects that each has “executed strongly against our strategic priorities ... and brought us to a point where we with confidence can make a reconfiguration of our regional leadership.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Maersk on Friday announced a round of executive changes that include a new chief financial officer brought in from the forwarding world and the rotation of regional chiefs to new markets. The Copenhagen-based company said in a statement its board of directors picked Robert Erni as its new CFO, replacing Patrick Jany, who held the role for the last six years. Erni, who will step into the role after Maersk reports fiscal 2025 results on Feb. 5, has 30 years of experience in financial roles in the logistics industry. He spent two decades at Kuehne + Nagel, where he had roles across its global offices. Erni was also CFO at Panalpina until its acquisition by DSV and most recently CFO at German third-party logistics provider Dachser. Maersk Chief Executive Vincent Clerc said Erni’s “extensive international experience and strong leadership profile make him an excellent fit for the Maersk team.” Separately, Maersk also said three regional directors will be reshuffled to new offices at the start of 2026. Among those are Charles Van Der Steene, who has been Maersk’s president of North America since 2024 and has been with the carrier since 2011. Van Der Steene will take over as managing director for India following the departure of current director Richard Morgan. Maersk’s Asia-Pacific regional chief Ditlev Blicher will take over the North American offices, with Asia-Pacific regional CFO Scott Elliott taking over Blicher’s role. Maersk’s European offices will be headed by Guillaume Sauzedde, who joined Maersk in 2024. He will replace Aymeric Chandavoine, who is also leaving the company. Clerc said the change of regional chiefs reflects that each has “executed strongly against our strategic priorities ... and brought us to a point where we with confidence can make a reconfiguration of our regional leadership.” Contact Michael Angell at michael.angell@spglobal.com .

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