<div class="phx-topic abstract-wrapper">Fiori joined NYK Line (North America) in 1990 as executive vice president with a mandate to grow the newly formed liner agency and position it closer to US-based BCOs.</div>

Fiori joined NYK Line (North America) in 1990 as executive vice president with a mandate to grow the newly formed liner agency and position it closer to US-based BCOs.

Feature image

<div class="phx-topic">Dodd W. Fiori, a larger-than-life figure in an earlier container shipping era who led the US agency of NYK Line, died Aug. 16. He was 82. At the height of his career in the 1990s, Fiori was executive vice president of Japanese carrier NYK Line (North America) Inc., a job in which he personified the high-profile, influential and charismatic US leader of foreign ocean carriers. It’s a role that has largely disappeared as carrier headquarters have assumed greater control over their far-flung operations. Fiori joined NYK Line (North America) in 1990 as executive vice president after stints at Seatrain and APL. The job came with a mandate to grow the newly formed North American liner agency with a view toward being closer to US beneficial cargo owners (BCOs) and independent from the traditional centralized headquarters, top-down management style typical of ocean carriers at the time. When Fiori arrived at NYK, the carrier, whose liner business was consolidated into Ocean Network Express (ONE) in 2017, along with those of two other major Japanese carriers, was investing in and adding capacity in the trans-Pacific with a focus on capturing rapidly growing manufacturing output in Japan, Taiwan, South Korea and, later, China. It was a heady time, with independent or non-conference carriers such as Evergreen Marine, Hanjin, Hyundai Merchant Marine and Yang Ming rapidly gaining market share at the expense of the traditionally dominant US-flag carriers American President Lines and Sea-Land Service Inc., which were operating in the Asia-North America Eastbound Rate Agreement (ANERA) and its westbound counterpart the TWRA, both of which disbanded in 1999. Fiori later served as president of the freight consolidation and handling unit of Pacer Global Logistics, a unit of Pacer International. “His larger-than-life personality and sense of humor put him in the forefront of US-based executives, never shy to give opinions and criticism but also acknowledging loyalty and good performance,” said Mike Divirgilio, who worked under Fiori at NYK. According to Divirgilio, in the late 90s as the liner industry was under pressure that eventually led to the collapse of the conference system and the 1998 Ocean Shipping Reform Act, Fiori, in order to protect carriers’ anti-trust immunity, was one of the key influencers seeking to project a positive image and the necessity of what the liner industry meant to US foreign trade. This led to the creation of the World Shipping Council in 2000 as the advocate for liner carriers. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

Dodd W. Fiori, a larger-than-life figure in an earlier container shipping era who led the US agency of NYK Line, died Aug. 16. He was 82. At the height of his career in the 1990s, Fiori was executive vice president of Japanese carrier NYK Line (North America) Inc., a job in which he personified the high-profile, influential and charismatic US leader of foreign ocean carriers. It’s a role that has largely disappeared as carrier headquarters have assumed greater control over their far-flung operations. Fiori joined NYK Line (North America) in 1990 as executive vice president after stints at Seatrain and APL. The job came with a mandate to grow the newly formed North American liner agency with a view toward being closer to US beneficial cargo owners (BCOs) and independent from the traditional centralized headquarters, top-down management style typical of ocean carriers at the time. When Fiori arrived at NYK, the carrier, whose liner business was consolidated into Ocean Network Express (ONE) in 2017, along with those of two other major Japanese carriers, was investing in and adding capacity in the trans-Pacific with a focus on capturing rapidly growing manufacturing output in Japan, Taiwan, South Korea and, later, China. It was a heady time, with independent or non-conference carriers such as Evergreen Marine, Hanjin, Hyundai Merchant Marine and Yang Ming rapidly gaining market share at the expense of the traditionally dominant US-flag carriers American President Lines and Sea-Land Service Inc., which were operating in the Asia-North America Eastbound Rate Agreement (ANERA) and its westbound counterpart the TWRA, both of which disbanded in 1999. Fiori later served as president of the freight consolidation and handling unit of Pacer Global Logistics, a unit of Pacer International. “His larger-than-life personality and sense of humor put him in the forefront of US-based executives, never shy to give opinions and criticism but also acknowledging loyalty and good performance,” said Mike Divirgilio, who worked under Fiori at NYK. According to Divirgilio, in the late 90s as the liner industry was under pressure that eventually led to the collapse of the conference system and the 1998 Ocean Shipping Reform Act, Fiori, in order to protect carriers’ anti-trust immunity, was one of the key influencers seeking to project a positive image and the necessity of what the liner industry meant to US foreign trade. This led to the creation of the World Shipping Council in 2000 as the advocate for liner carriers. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

Container Shipping News

Container lines

Maritime

Dodd Fiori, ex-NYK North America executive, dead at 82

<div class="phx-topic abstract-wrapper">With uncertainty surrounding tariffs and renewable energy policy, wind turbine orders in the US fell 50% in the first half of 2025 year over year, the lowest since the early COVID-19 days in 2020. </div>

With uncertainty surrounding tariffs and renewable energy policy, wind turbine orders in the US fell 50% in the first half of 2025 year over year, the lowest since the early COVID-19 days in 2020.

<div class="phx-topic">As US President Donald Trump’s clampdown on the wind industry causes original equipment manufacturers (OEMs) of wind turbines to temper their expectations of US markets, the next two years could bring a temporary uptick in wind cargo activity as project developers race to order turbine components before federal tax credits expire. Turbines for onshore and offshore wind farms account for an important source of breakbulk and project cargo, andthe shortened timeline could temporarily drive up demand for turbine components for projects under construction. Under the broad-based spending bill that Trump signed into law July 4, wind projects must begin construction by July 4, 2026, or become operational by the end of 2027 to qualify for a 30% tax credit and other bonuses. On Aug. 15, the US Internal Revenue Service (IRS) issued tighter restrictions on qualifying for those incentives — eliminating a rule that a project could count as having begun construction if the developer spent at least 5% of the project cost. The new rules come at a time when US orders have plummeted to a five-year low, and after the Trump administration in July canceled plans to use federal waters for any new offshore wind development. And just this week, Trump posted on social media that his administration would not approve any additional solar or wind projects in the US. With uncertainty surrounding tariffs and renewable energy policy, wind turbine orders in the US fell 50% in the first half of 2025 compared with the same period last year, marking the lowest level of orders since 2020, according to a July report from the American Clean Power Association. Martyn Lawns, senior vice president of growth for new energy and interim global head of industrial projects for DHL Global Forwarding, told the Journal of Commerce that US offshore wind cargo activity has declined rapidly among its customers. “It’s clear those decisions have immediately impacted the investment in offshore wind,” Lawns said. “What that’s done is it’s diverted that cargo to other parts of the world.” He added that manufacturers appear to have shifted their focus to Europe as the largest growth area for offshore wind. <h3>US pullback, tariffs take toll </h3>The slowdown in the US wind market was reflected in the latest quarterly performance of four of the world’s largest OEMs of wind turbines — GE Vernova, Nordex SE, Siemens Gamesa and Vestas. For Danish turbine maker Vestas, the company’s year-over-year order intake fell 44% to 2,009 megawatts (MW), driven by a lack of orders in the US as customers awaited clarity on US wind energy policy, according to the company’s Aug. 13 second-quarter earnings report. Vestas did not receive offshore orders from any of its markets in the second quarter, while onshore orders from the Americas fell 32% to 2,009 MW. At Siemens Gamesa, the sting of tariffs overshadowed a record quarter for offshore wind orders, although new US orders were absent from the most recent earnings period. Spain’s Siemens Gamesa is supplying 176 wind turbines for the ongoing 2.6-gigawatt (GW) Coastal Virginia Offshore Wind (CVOW) project that Virginia utility Dominion Energy is developing off the coast of Virginia Beach. In May, Dominion Energy estimated that tariffs could add $500 million to the total cost of the project, which is set for completion in 2026. During an Aug. 6 third-quarter earnings call for German parent company Siemens Energy AG, CFO Maria Ferraro said tariffs accounted for the “number one” factor that offset operational improvements as Siemens Gamesa continues to undergo a restructuring. “They had an impact here of a mid-double-digit amount, which accounts for almost half of the impact of Siemens Energy so far,” Ferraro said. <h3>OEMs look to ongoing US projects </h3>At US-based GE Vernova, CEO Scott Strazik is expecting a short-term bump in orders to come from US wind project developers scrambling to receive federal tax incentives before they sunset. The US accounts for two-thirds of the 57,000 onshore wind turbines GE Vernova has installed globally. “Since the tax bill was signed on July 4, we have experienced an increase in our customer engagement in the US,” Strazik said during the company’s July 23 second-quarter earnings call. “So the potential certainly exists for an inflection towards growth.” Meanwhile, German turbine maker Nordex SE, which primarily serves the onshore wind segment, is forging ahead with plans to resume turbine production at its long-dormant factory in Iowa despite the expiration of federal tax credits and uncertainties about the industry’s future in the US. The facility, which had been shuttered since 2013, reopened in July. “We are doing so to qualify turbines for continuous construction,” chairman and CEO Jose Luis Blanco Diéguez said during the company’s July 28 half-year earnings call, referring to the US requirement that after wind projects begin, they must demonstrate continuous physical work to obtain tax credits. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

As US President Donald Trump’s clampdown on the wind industry causes original equipment manufacturers (OEMs) of wind turbines to temper their expectations of US markets, the next two years could bring a temporary uptick in wind cargo activity as project developers race to order turbine components before federal tax credits expire. Turbines for onshore and offshore wind farms account for an important source of breakbulk and project cargo, andthe shortened timeline could temporarily drive up demand for turbine components for projects under construction. Under the broad-based spending bill that Trump signed into law July 4, wind projects must begin construction by July 4, 2026, or become operational by the end of 2027 to qualify for a 30% tax credit and other bonuses. On Aug. 15, the US Internal Revenue Service (IRS) issued tighter restrictions on qualifying for those incentives — eliminating a rule that a project could count as having begun construction if the developer spent at least 5% of the project cost. The new rules come at a time when US orders have plummeted to a five-year low, and after the Trump administration in July canceled plans to use federal waters for any new offshore wind development. And just this week, Trump posted on social media that his administration would not approve any additional solar or wind projects in the US. With uncertainty surrounding tariffs and renewable energy policy, wind turbine orders in the US fell 50% in the first half of 2025 compared with the same period last year, marking the lowest level of orders since 2020, according to a July report from the American Clean Power Association. Martyn Lawns, senior vice president of growth for new energy and interim global head of industrial projects for DHL Global Forwarding, told the Journal of Commerce that US offshore wind cargo activity has declined rapidly among its customers. “It’s clear those decisions have immediately impacted the investment in offshore wind,” Lawns said. “What that’s done is it’s diverted that cargo to other parts of the world.” He added that manufacturers appear to have shifted their focus to Europe as the largest growth area for offshore wind. US pullback, tariffs take toll The slowdown in the US wind market was reflected in the latest quarterly performance of four of the world’s largest OEMs of wind turbines — GE Vernova, Nordex SE, Siemens Gamesa and Vestas. For Danish turbine maker Vestas, the company’s year-over-year order intake fell 44% to 2,009 megawatts (MW), driven by a lack of orders in the US as customers awaited clarity on US wind energy policy, according to the company’s Aug. 13 second-quarter earnings report. Vestas did not receive offshore orders from any of its markets in the second quarter, while onshore orders from the Americas fell 32% to 2,009 MW. At Siemens Gamesa, the sting of tariffs overshadowed a record quarter for offshore wind orders, although new US orders were absent from the most recent earnings period. Spain’s Siemens Gamesa is supplying 176 wind turbines for the ongoing 2.6-gigawatt (GW) Coastal Virginia Offshore Wind (CVOW) project that Virginia utility Dominion Energy is developing off the coast of Virginia Beach. In May, Dominion Energy estimated that tariffs could add $500 million to the total cost of the project, which is set for completion in 2026. During an Aug. 6 third-quarter earnings call for German parent company Siemens Energy AG, CFO Maria Ferraro said tariffs accounted for the “number one” factor that offset operational improvements as Siemens Gamesa continues to undergo a restructuring. “They had an impact here of a mid-double-digit amount, which accounts for almost half of the impact of Siemens Energy so far,” Ferraro said. OEMs look to ongoing US projects At US-based GE Vernova, CEO Scott Strazik is expecting a short-term bump in orders to come from US wind project developers scrambling to receive federal tax incentives before they sunset. The US accounts for two-thirds of the 57,000 onshore wind turbines GE Vernova has installed globally. “Since the tax bill was signed on July 4, we have experienced an increase in our customer engagement in the US,” Strazik said during the company’s July 23 second-quarter earnings call. “So the potential certainly exists for an inflection towards growth.” Meanwhile, German turbine maker Nordex SE, which primarily serves the onshore wind segment, is forging ahead with plans to resume turbine production at its long-dormant factory in Iowa despite the expiration of federal tax credits and uncertainties about the industry’s future in the US. The facility, which had been shuttered since 2013, reopened in July. “We are doing so to qualify turbines for continuous construction,” chairman and CEO Jose Luis Blanco Diéguez said during the company’s July 28 half-year earnings call, referring to the US requirement that after wind projects begin, they must demonstrate continuous physical work to obtain tax credits. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Transport, Trade and Regulation News

Project cargo

Trans-Pacific

Breakbulk News

OEMs adapt to US wind industry slowdown, yet bank on tax credit uptick

<div class="phx-topic abstract-wrapper">Barbara Melvin was on the job for three years, with the Leatherman terminal dispute and capacity expansions taking up much of her tenure. </div>

Barbara Melvin was on the job for three years, with the Leatherman terminal dispute and capacity expansions taking up much of her tenure.

<div class="phx-topic">South Carolina State Ports Authority Chief Executive Barbara Melvin has resigned from her role after a three-year tenure to pursue other opportunities, SC Ports announced Thursday. The agency named Phillip Padgett, its chief financial and administrative officer, as interim chief executive. Melvin <a href="https://www.joc.com/article/newsome-to-step-down-as-sc-ports-ceo-5243562">took over as chief executive in July 202</a>2, becoming at the time the fourth female to lead a major US container port.She joined SC Ports in 1998, later becoming senior vice president of operations and terminals in 2015. She was named chief operating officer in 2018, overseeing daily operations of the port and leading its major infrastructure projects. “I am grateful for the opportunity to have served South Carolina and the ports authority over these many years,” Melvin said in a statement. “I take pride in what has been accomplished by the port while I have served it in multiple roles.”The Port of Charleston was the nation’s eighth-busiest container port by volume in 2024, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global, handling 1.85 million TEUs in laden imports and exports. Melvin laid out a plan for having Charleston reach 10 million TEUs in capacity over the next decade, largely through the development of the North Charleston marine terminal, a major undertaking that would require raising a bridge spanning the Cooper River. However, much of her time was spent dealing with how to settle a dispute with the International Longshoremen’s Association (ILA) over work jurisdiction at the Hugh K. Leatherman terminal, which opened in April 2021. Soon after it opened, ocean carriers stopped calling Leatherman after <a href="https://www.joc.com/article/ila-can-sue-carriers-over-leatherman-terminal-calls-nlrb-5245707">the ILA sued the carriers</a> for using a terminal that employed state workers, instead of ILA members, for crane jobs. In the interim, the $1 billion terminal largely sat idle. The three-year legal dispute, <a href="https://www.joc.com/article/sc-ports-turns-to-us-supreme-court-in-bid-for-relief-over-leatherman-dispute-5201466">which almost reached the US Supreme Court</a>, was settled last year when <a href="https://www.joc.com/article/sc-ports-strikes-deal-with-ila-to-fully-open-leatherman-marine-terminal-5192280">SC Ports opened Leatherman’s crane jobs to ILA members</a>. More recently, Melvin was questioned by South Carolina state legislators over the increasing cost of the Navy Base Intermodal Facility, the near-dock rail yard for Leatherman, according to local press reports. Norfolk Southern Railway has requested additional trackage leading into the yard due to right-of-way issues with CSX Transportation, which has led to <a href="https://scdailygazette.com/2025/07/17/norfolk-southern-budget-maneuver-adds-27m-to-sc-ports-rail-yard-costs/">a $27 million increase in the cost of the facility</a>, according to local press reports. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

South Carolina State Ports Authority Chief Executive Barbara Melvin has resigned from her role after a three-year tenure to pursue other opportunities, SC Ports announced Thursday. The agency named Phillip Padgett, its chief financial and administrative officer, as interim chief executive. Melvin took over as chief executive in July 202 2, becoming at the time the fourth female to lead a major US container port. She joined SC Ports in 1998, later becoming senior vice president of operations and terminals in 2015. She was named chief operating officer in 2018, overseeing daily operations of the port and leading its major infrastructure projects. “I am grateful for the opportunity to have served South Carolina and the ports authority over these many years,” Melvin said in a statement. “I take pride in what has been accomplished by the port while I have served it in multiple roles.” The Port of Charleston was the nation’s eighth-busiest container port by volume in 2024, according to PIERS, a sister company of the Journal of Commerce within S&P Global, handling 1.85 million TEUs in laden imports and exports. Melvin laid out a plan for having Charleston reach 10 million TEUs in capacity over the next decade, largely through the development of the North Charleston marine terminal, a major undertaking that would require raising a bridge spanning the Cooper River. However, much of her time was spent dealing with how to settle a dispute with the International Longshoremen’s Association (ILA) over work jurisdiction at the Hugh K. Leatherman terminal, which opened in April 2021. Soon after it opened, ocean carriers stopped calling Leatherman after the ILA sued the carriers for using a terminal that employed state workers, instead of ILA members, for crane jobs. In the interim, the $1 billion terminal largely sat idle. The three-year legal dispute, which almost reached the US Supreme Court , was settled last year when SC Ports opened Leatherman’s crane jobs to ILA members . More recently, Melvin was questioned by South Carolina state legislators over the increasing cost of the Navy Base Intermodal Facility, the near-dock rail yard for Leatherman, according to local press reports. Norfolk Southern Railway has requested additional trackage leading into the yard due to right-of-way issues with CSX Transportation, which has led to a $27 million increase in the cost of the facility , according to local press reports. Contact Michael Angell at michael.angell@spglobal.com .

Marine terminals

North American ports

Melvin steps down as SC Ports chief

<div class="phx-topic abstract-wrapper">The announcement of Leatherman’s expansion comes as MSC looks to bring in more trans-Atlantic services to call the terminal.</div>

The announcement of Leatherman’s expansion comes as MSC looks to bring in more trans-Atlantic services to call the terminal.

<div class="phx-topic">The Port of Charleston plans to add a second big ship berth to its Hugh K. Leatherman marine terminal, with the terminal’s main customer, Mediterranean Shipping Co., readying to bring new trans-Atlantic capacity to the port. The South Carolina State Ports Authority (SC Ports) said in a statement this week it began installing the test piles to ensure the integrity of a new 1,600-foot berth at Leatherman. The second berth, outfitted with five cranes, will allow the terminal to handle two super-post-Panamax vessels at once. SC Ports said it expects to complete the second berth by late 2026, bringing Leatherman’s capacity to about 1.6 million TEUs per year. The port’s board of directors approved an $88.5 million contract with Orion Marine Group for the preliminary work. Plans for a third berth at Leatherman, which would bring it to full capacity of 2.4 million TEUs, have yet to go forward. SC Ports said the cost of both the second and third berths could reach a total of $1.5 billion. In addition to the second berth, Leatherman will also be able to offer near-dock rail service with the opening of the Navy Base Intermodal Facility. SC Ports said it is in the process of commissioning six rail-mounted gantry cranes for that facility, which is expected to open by early 2026. <h3>MSC adds services </h3>Leatherman’s sole berth has seen usage rise quickly a little over a year after SC Ports and the International Longshoremen’s Association (ILA) settled <a href="https://www.joc.com/article/sc-ports-strikes-deal-with-ila-to-fully-open-leatherman-marine-terminal-5192280">a legal dispute that kept ocean carriers away from the terminal</a>. Leatherman handled 45 vessels in the second quarter, according to data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. The second-quarter vessel count was up from 33 ships in the first quarter and 23 in the fourth quarter of 2024. Zim Shipping became <a href="https://www.joc.com/article/zim-becomes-first-carrier-to-commit-to-reopened-leatherman-terminal-5735909">the first carrier to provide weekly service into Leatherman</a> following its reopening, but it has since moved the service to Charleston’s other marine terminal. Now, Leatherman primarily handles MSC services from the Indian subcontinent and the Mediterranean. SC Ports said MSC will bring two additional trans-Atlantic services to Leatherman starting in September. Those include the “Albatros” service from Baltic ports and London’s Felixstowe, and the “Dragon” service between the Mediterranean and the US East Coast. Thanks to the presence of automakers and other high-value manufacturing in South Carolina, Charleston sees relatively steady freight volumes coming from Europe. Since the start of 2024, containerized imports from Europe into Charleston have averaged 89,125 TEUs per quarter, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Hapag-Lloyd carries the majority of the trans-Atlantic freight into Charleston, with its average quarterly volume near 29,590 TEUs, PIERS data shows. MSC is second with a quarterly average of 21,939 TEUs. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Charleston plans to add a second big ship berth to its Hugh K. Leatherman marine terminal, with the terminal’s main customer, Mediterranean Shipping Co., readying to bring new trans-Atlantic capacity to the port. The South Carolina State Ports Authority (SC Ports) said in a statement this week it began installing the test piles to ensure the integrity of a new 1,600-foot berth at Leatherman. The second berth, outfitted with five cranes, will allow the terminal to handle two super-post-Panamax vessels at once. SC Ports said it expects to complete the second berth by late 2026, bringing Leatherman’s capacity to about 1.6 million TEUs per year. The port’s board of directors approved an $88.5 million contract with Orion Marine Group for the preliminary work. Plans for a third berth at Leatherman, which would bring it to full capacity of 2.4 million TEUs, have yet to go forward. SC Ports said the cost of both the second and third berths could reach a total of $1.5 billion. In addition to the second berth, Leatherman will also be able to offer near-dock rail service with the opening of the Navy Base Intermodal Facility. SC Ports said it is in the process of commissioning six rail-mounted gantry cranes for that facility, which is expected to open by early 2026. MSC adds services Leatherman’s sole berth has seen usage rise quickly a little over a year after SC Ports and the International Longshoremen’s Association (ILA) settled a legal dispute that kept ocean carriers away from the terminal . Leatherman handled 45 vessels in the second quarter, according to data from Sea-web, a sister company of the Journal of Commerce within S&P Global. The second-quarter vessel count was up from 33 ships in the first quarter and 23 in the fourth quarter of 2024. Zim Shipping became the first carrier to provide weekly service into Leatherman following its reopening, but it has since moved the service to Charleston’s other marine terminal. Now, Leatherman primarily handles MSC services from the Indian subcontinent and the Mediterranean. SC Ports said MSC will bring two additional trans-Atlantic services to Leatherman starting in September. Those include the “Albatros” service from Baltic ports and London’s Felixstowe, and the “Dragon” service between the Mediterranean and the US East Coast. Thanks to the presence of automakers and other high-value manufacturing in South Carolina, Charleston sees relatively steady freight volumes coming from Europe. Since the start of 2024, containerized imports from Europe into Charleston have averaged 89,125 TEUs per quarter, according to PIERS, a sister company of the Journal of Commerce within S&P Global. Hapag-Lloyd carries the majority of the trans-Atlantic freight into Charleston, with its average quarterly volume near 29,590 TEUs, PIERS data shows. MSC is second with a quarterly average of 21,939 TEUs. Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

Port News

Charleston’s Leatherman terminal eyes second berth by late 2026

<div class="phx-topic abstract-wrapper">US agriculture exporters say the ongoing trade standoff between Washington and Beijing has effectively shut them out of the key Chinese market, causing them to fear for their long-term survival.</div>

US agriculture exporters say the ongoing trade standoff between Washington and Beijing has effectively shut them out of the key Chinese market, causing them to fear for their long-term survival.

<div class="phx-topic">US exporters of soybeans and meat say they are losing key Chinese buyers due to high tariffs and are turning to President Donald Trump for relief. The 34% tariff China imposed in April is suppressing US containerized exports, Caleb Ragland, president of the American Soybean Association (ASA), said in a letter this week urging Trump to remove reciprocal duties on China, which also imposed a 32% tariff on US beef and a 57% levy on pork amid the trade standoff between Washington and Beijing. “US soybean farmers cannot survive a prolonged trade dispute with our largest customer,” Ragland said. Approximately 112,000 TEUs of US soybeans and meat were exported to China last year, down about 6% from 2023, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. According to Mike Steenhoek, executive director of the Soy Transportation Coalition, the 34.07% duty rate for cargo into China is pushing American soybean exporters out of the global market. Between July 2024 and June 2025, the most recent data available, PIERS shows a total of 356,830 TEUs of soybeans exported from the US, up 7% compared with the previous 12-month period. Total US meat exports declined 3.5% to 402,610 TEUs during that time. The China tariffs on the US are a boon for Brazilian exporters of soybeans and meat who compete with the US for Chinese buyers. Most US soybean exports are shipped via bulk; the commodity is transported in containers when smaller volumes are ordered. Meat exports move exclusively through refrigerated containers. Since China’s implementation of tariffs on US exports, South American soybeans cost about 20% less than their US competition, according to the ASA. <h3>Export window closing </h3>Meanwhile, the window for US exporters to regain the Chinese market this year is closing. US soybeans are harvested from September to March. After March, China sources soybeans from Brazil until its season ends in September, when US exporters typically resume supply. “The window for US soybean exporters to sell and ship this fall’s harvest to China is rapidly closing,” Steenhoek told the Journal of Commerce. “If an agreement is not reached during the latest US-China three-month [tariff] pause, it will probably be too late for this fall’s harvest.” US meat exporters are facing similar challenges. Last year, China consumed 15% of US pork exports and 14% of US beef exports, said Joe Schuele, spokesperson for the US Meat Export Federation. In 2024, the US exported about 424,000 TEUs of meat, about 56,380 TEUs of which were destined for China. Also creating a problem is the fact that China failed to reauthorize exports from individual US beef plants in February and March when the five-year authorizations expired, further hindering US beef exporters. “We are all but shut out of the China market until those authorizations [for the individual beef plants] are renewed,” Schuele said. Thomas Eskesen, founder of reefer market consultant Eskesen Advisory, said given the ongoing tariff complications, US shippers need to look at new markets to sell their products. “[But] for this year, it’s almost too late to sort of just kind of plan like that,” Eskesen said Wednesday during a Journal of Commerce webcast. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

US exporters of soybeans and meat say they are losing key Chinese buyers due to high tariffs and are turning to President Donald Trump for relief. The 34% tariff China imposed in April is suppressing US containerized exports, Caleb Ragland, president of the American Soybean Association (ASA), said in a letter this week urging Trump to remove reciprocal duties on China, which also imposed a 32% tariff on US beef and a 57% levy on pork amid the trade standoff between Washington and Beijing. “US soybean farmers cannot survive a prolonged trade dispute with our largest customer,” Ragland said. Approximately 112,000 TEUs of US soybeans and meat were exported to China last year, down about 6% from 2023, according to PIERS, a sister company of the Journal of Commerce within S&P Global. According to Mike Steenhoek, executive director of the Soy Transportation Coalition, the 34.07% duty rate for cargo into China is pushing American soybean exporters out of the global market. Between July 2024 and June 2025, the most recent data available, PIERS shows a total of 356,830 TEUs of soybeans exported from the US, up 7% compared with the previous 12-month period. Total US meat exports declined 3.5% to 402,610 TEUs during that time. The China tariffs on the US are a boon for Brazilian exporters of soybeans and meat who compete with the US for Chinese buyers. Most US soybean exports are shipped via bulk; the commodity is transported in containers when smaller volumes are ordered. Meat exports move exclusively through refrigerated containers. Since China’s implementation of tariffs on US exports, South American soybeans cost about 20% less than their US competition, according to the ASA. Export window closing Meanwhile, the window for US exporters to regain the Chinese market this year is closing. US soybeans are harvested from September to March. After March, China sources soybeans from Brazil until its season ends in September, when US exporters typically resume supply. “The window for US soybean exporters to sell and ship this fall’s harvest to China is rapidly closing,” Steenhoek told the Journal of Commerce. “If an agreement is not reached during the latest US-China three-month [tariff] pause, it will probably be too late for this fall’s harvest.” US meat exporters are facing similar challenges. Last year, China consumed 15% of US pork exports and 14% of US beef exports, said Joe Schuele, spokesperson for the US Meat Export Federation. In 2024, the US exported about 424,000 TEUs of meat, about 56,380 TEUs of which were destined for China. Also creating a problem is the fact that China failed to reauthorize exports from individual US beef plants in February and March when the five-year authorizations expired, further hindering US beef exporters. “We are all but shut out of the China market until those authorizations [for the individual beef plants] are renewed,” Schuele said. Thomas Eskesen, founder of reefer market consultant Eskesen Advisory, said given the ongoing tariff complications, US shippers need to look at new markets to sell their products. “[But] for this year, it’s almost too late to sort of just kind of plan like that,” Eskesen said Wednesday during a Journal of Commerce webcast. Contact Laura Robb at laura.robb@spglobal.com .  Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Tariff battle suppressing Chinese market for US soybean, meat exports

<div class="phx-topic abstract-wrapper">The carrier said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy.</div>

The carrier said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy.

<div class="phx-topic">Trade patterns shifting from global to more regional in nature partly due to changing tariff policies could offset the impact of US port charges on Chinese carriers, Hong Kong-listed Orient Overseas (International) said Thursday. That market segmentation, coupled with extended or restructured supply chains, could create new opportunities for shipping companies to refine their strategies, the company said in an interim earnings statement. The subsidiary of Cosco Shipping Holdings said US port charges that start on Oct. 14 “will have a relatively large impact” on its units, including carrier OOCL and OOCL Logistics. OOIL gave no details, but based on the current proposal from the US Trade Representative (USTR), 10,000-net-ton ships such as the 13,000-TEU OOCL Poland, deployed on OOCL’s Pacific China Central 1 service, will pay $3.5 million in the first year. That will rise to $9.8 million in 2028 when the levy climbs to $140 per net ton. OOIL said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy. “As a result, many customers seem to have started to shift away from their precautious strategy of frontloading earlier this year to a more cautious, wait-and-see approach,” it said. Despite the challenges “our vessels sailing on major long-haul routes are nearly fully loaded, and this is expected to continue in the coming weeks,” the carrier said. <h3>OOIL H1 net profit up 15%</h3>While the trans-Pacific was OOCL’s biggest revenue earner in the first half of 2025, contributing $1.6 billion out of total liner revenues of $4.4 billion, the carrier faced increased competition. On the eastbound trans-Pacific headhaul, liftings increased 8%, but revenue per TEU fell 12% and overall revenue decreased 5%. Overall, OOIL saw net profit increase 15% to $954 million in the first six months compared with the year prior, of which 99% was contributed by OOCL and OOCL Logistics. Revenue rose 6.5% to $4.9 billion OOCL’s total liftings for the first half increased 7% to 4 million TEUs. “Despite being only a single-digit improvement, the year-on year performance is the best post-pandemic period in terms of both liftings and liner revenue,” OOIL said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Trade patterns shifting from global to more regional in nature partly due to changing tariff policies could offset the impact of US port charges on Chinese carriers, Hong Kong-listed Orient Overseas (International) said Thursday. That market segmentation, coupled with extended or restructured supply chains, could create new opportunities for shipping companies to refine their strategies, the company said in an interim earnings statement. The subsidiary of Cosco Shipping Holdings said US port charges that start on Oct. 14 “will have a relatively large impact” on its units, including carrier OOCL and OOCL Logistics. OOIL gave no details, but based on the current proposal from the US Trade Representative (USTR), 10,000-net-ton ships such as the 13,000-TEU OOCL Poland, deployed on OOCL’s Pacific China Central 1 service, will pay $3.5 million in the first year. That will rise to $9.8 million in 2028 when the levy climbs to $140 per net ton. OOIL said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy. “As a result, many customers seem to have started to shift away from their precautious strategy of frontloading earlier this year to a more cautious, wait-and-see approach,” it said. Despite the challenges “our vessels sailing on major long-haul routes are nearly fully loaded, and this is expected to continue in the coming weeks,” the carrier said. OOIL H1 net profit up 15% While the trans-Pacific was OOCL’s biggest revenue earner in the first half of 2025, contributing $1.6 billion out of total liner revenues of $4.4 billion, the carrier faced increased competition. On the eastbound trans-Pacific headhaul, liftings increased 8%, but revenue per TEU fell 12% and overall revenue decreased 5%. Overall, OOIL saw net profit increase 15% to $954 million in the first six months compared with the year prior, of which 99% was contributed by OOCL and OOCL Logistics. Revenue rose 6.5% to $4.9 billion OOCL’s total liftings for the first half increased 7% to 4 million TEUs. “Despite being only a single-digit improvement, the year-on year performance is the best post-pandemic period in terms of both liftings and liner revenue,” OOIL said. Contact Keith Wallis at keithwallis@hotmail.com .

Tariff-linked trade pattern shifts could offset impact of US port fees: OOIL

<div class="phx-topic abstract-wrapper">There are measures carriers can take around the edges, but if they really want to take control of supply — and thus price — collectively sidelining some high-caliber tonnage is the standout solution, writes Jeremy Masters. </div>

There are measures carriers can take around the edges, but if they really want to take control of supply — and thus price — collectively sidelining some high-caliber tonnage is the standout solution, writes Jeremy Masters.

<div class="phx-topic">The laws of supply and demand dictate that prices will move in accordance with the relativity of the two. Container carriers can marginally move the dial between what is containerized and what is bulk or breakbulk by offering very attractive (low contribution) rates. An innovative product — for example, Gemini Cooperation’s high reliability network or an express service — might lure some air freight to sea freight. For the most part, however, carriers have very little control over demand. The key price lever that carriers have is slot supply, and current fundamentals point to heavy surplus, even as diversions around southern Africa continue. Are the carriers, then, sprinting to the edge of the cliff with newbuild deliveries, fresh orders, second-hand buying and chartering of what little spare capacity is left, followed by a freefall? Or do they at least have a parachute to slow down their momentum? There are some things they can do to help themselves in trades with overcapacity. <h3>Pushing pause </h3>The most obvious and dramatic way would be to park ships. To be impactful, that would mean collectively taking out multiple strings rather than tinkering with single strings or blank sailings. Understandably, there is a mental block in the big east-west trades when it comes to parking high-capacity, high-value, newer ships. But if the carriers get supply even minimally below demand, the economics are massively in their favor. Let's assume that, in the Asia-to-Europe trade, each consortium (for these purposes, Mediterranean Shipping Co. would be considered a consortium) ties up one string of ultra-large container vessels (ULCVs) that was forecasted to make a minimal contribution to fixed cost because of declining rates. If, because of removing these strings, freight rates were a very conservative $500 per TEU higher on average on the headhaul than they would have been, based on 20,000 TEU per week and 50 weeks, all consortiums would accumulate an additional $500,000 million per annum on all remaining loops. There would be, of course, some incremental lay-up costs, but other costs would remain similar. Parking some $3 billion worth of assets per consortium is easier in theory than in practice, especially for those carriers who need to justify some heavy investments to their boards. If the carriers accept that drastic action is required, however, and there is enough collective action — not orchestrated action, of course, in contravention of competition rules — then the results will be dramatically better, and the ships will be readily available for an upturn. <h3>Beyond parking </h3>Are there less capacity-eating measures that carriers could undertake? The catalyst for a major dive in multi-trade rates would be a return to the Red Sea and Suez Canal for Asia-to-Europe strings, but it's unlikely that we will go overnight from high-risk Red Sea transits to totally safe ones. Given the disruption and risk — for carriers and their clients — of moving all strings back to the Red Sea only to find that further issues arise, it would be entirely justifiable to keep some strings moving around the Cape of Good Hope. Big beneficial cargo owners (BCOs) and forwarders/non-vessel operating common carriers (NVOCCs) have — forcefully — adjusted to the Cape routing. And while there is higher on-the-water inventory cost, the weekly pipeline of arrivals are established. They would naturally lean towards the faster Red Sea routing, but at the same time, would want to strenuously avoid a situation where production lines are stopped or shelves empty because they have put all their eggs in the Red Sea basket that has turned bad again. This may be counterintuitive, given more expensive ship systems around the Cape, but carriers could also implement two-tier pricing to re-enforce this prudence — essentially, a premium for Red Sea risk or a deficit for longer transits, whichever you prefer. Slow-steaming is another area of capacity control where a systematic approach could eat up more capacity. This means not just applying it in over-tonnaged trades, but in all trades. Tonnage can then be moved from trades where there is oversupply to those that are short because of slow-steaming. Finally, there is the scrapping of older vessels. If we look at carriers' desire to hold onto bigger, newer assets and their purchase of relatively old smaller tonnage to run regional and feeder networks, this does not look to be a particularly encouraging area for capacity shedding. There are measures the carriers can take around the edges, but if they really want to take control of supply – and thus price – collectively sidelining some high-caliber tonnage is the standout solution. Contact Jeremy Masters at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

The laws of supply and demand dictate that prices will move in accordance with the relativity of the two. Container carriers can marginally move the dial between what is containerized and what is bulk or breakbulk by offering very attractive (low contribution) rates. An innovative product — for example, Gemini Cooperation’s high reliability network or an express service — might lure some air freight to sea freight. For the most part, however, carriers have very little control over demand. The key price lever that carriers have is slot supply, and current fundamentals point to heavy surplus, even as diversions around southern Africa continue. Are the carriers, then, sprinting to the edge of the cliff with newbuild deliveries, fresh orders, second-hand buying and chartering of what little spare capacity is left, followed by a freefall? Or do they at least have a parachute to slow down their momentum? There are some things they can do to help themselves in trades with overcapacity. Pushing pause The most obvious and dramatic way would be to park ships. To be impactful, that would mean collectively taking out multiple strings rather than tinkering with single strings or blank sailings. Understandably, there is a mental block in the big east-west trades when it comes to parking high-capacity, high-value, newer ships. But if the carriers get supply even minimally below demand, the economics are massively in their favor. Let's assume that, in the Asia-to-Europe trade, each consortium (for these purposes, Mediterranean Shipping Co. would be considered a consortium) ties up one string of ultra-large container vessels (ULCVs) that was forecasted to make a minimal contribution to fixed cost because of declining rates. If, because of removing these strings, freight rates were a very conservative $500 per TEU higher on average on the headhaul than they would have been, based on 20,000 TEU per week and 50 weeks, all consortiums would accumulate an additional $500,000 million per annum on all remaining loops. There would be, of course, some incremental lay-up costs, but other costs would remain similar. Parking some $3 billion worth of assets per consortium is easier in theory than in practice, especially for those carriers who need to justify some heavy investments to their boards. If the carriers accept that drastic action is required, however, and there is enough collective action — not orchestrated action, of course, in contravention of competition rules — then the results will be dramatically better, and the ships will be readily available for an upturn. Beyond parking Are there less capacity-eating measures that carriers could undertake? The catalyst for a major dive in multi-trade rates would be a return to the Red Sea and Suez Canal for Asia-to-Europe strings, but it's unlikely that we will go overnight from high-risk Red Sea transits to totally safe ones. Given the disruption and risk — for carriers and their clients — of moving all strings back to the Red Sea only to find that further issues arise, it would be entirely justifiable to keep some strings moving around the Cape of Good Hope. Big beneficial cargo owners (BCOs) and forwarders/non-vessel operating common carriers (NVOCCs) have — forcefully — adjusted to the Cape routing. And while there is higher on-the-water inventory cost, the weekly pipeline of arrivals are established. They would naturally lean towards the faster Red Sea routing, but at the same time, would want to strenuously avoid a situation where production lines are stopped or shelves empty because they have put all their eggs in the Red Sea basket that has turned bad again. This may be counterintuitive, given more expensive ship systems around the Cape, but carriers could also implement two-tier pricing to re-enforce this prudence — essentially, a premium for Red Sea risk or a deficit for longer transits, whichever you prefer. Slow-steaming is another area of capacity control where a systematic approach could eat up more capacity. This means not just applying it in over-tonnaged trades, but in all trades. Tonnage can then be moved from trades where there is oversupply to those that are short because of slow-steaming. Finally, there is the scrapping of older vessels. If we look at carriers' desire to hold onto bigger, newer assets and their purchase of relatively old smaller tonnage to run regional and feeder networks, this does not look to be a particularly encouraging area for capacity shedding. There are measures the carriers can take around the edges, but if they really want to take control of supply – and thus price – collectively sidelining some high-caliber tonnage is the standout solution. Contact Jeremy Masters at jeremy@shippingmastershk.com .

Ocean carriers are not helpless when it comes to managing capacity

<div class="phx-topic abstract-wrapper">The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base.</div>

The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base.

<div class="phx-topic">For decades, international containerized freight from Michigan and the broader Midwest has been routed through distant US coastal gateways such as New York, Norfolk and Savannah, or Canadian ports such as Halifax and Montreal. Export-side users have included automotive original equipment manufacturers (OEMs), steel and chemical producers and agricultural shippers, while imports have consisted of tier 1 suppliers, machinery and equipment distributors and retail or e-commerce consolidators. These routes were not chosen for efficiency or cost. They were imposed by federal restrictions that have for decades prevented containerized freight from entering or exiting the Great Lakes by vessel. US Customs today does not permit such movements through Michigan because no facility in the state meets the required federal standards for security and processing. That is about to change. In 2026, the Port of Monroe will activate the first SAFE Port Act-compliant international container terminal in the Great Lakes, along with a new roll-on/roll-off (ro/ro) platform that complements existing vessel berths, dual Class I rail access and proximity to interstate highways and Midwest manufacturing. Together, these assets position Monroe as a fully integrated inland gateway for containerized trade and high-value industrial logistics. Conservatively, 1 million to 2 million TEUs of oceangoing cargo are generated annually from the Great Lakes’ industrial core, according to port estimates. This includes high-value shipments from sectors such as automotive, machinery, chemicals and electronics. Rather than projecting future throughput volumes, the Port of Monroe is focused on establishing a lawful and functioning corridor, allowing the market to respond. The goal is to restore balance, provide carriers with a practical entry point and give shippers a logistics option that should have existed decades ago. The terminal at Monroe will be available to operators who recognize the value of establishing service in an underserved but strategically positioned market. The automotive industry, in particular, stands to benefit. With production concentrated in the Midwest and export demand on the rise, direct vessel service from Monroe reduces complexity and supports just-in-time inventory models. Monroe offers a new point of connection between Midwest production and global markets, serving as a strategic outlet for general containerized freight and, more uniquely, for the direct shipment of new vehicles via ro/ro or in containers. Resilience has become a defining priority for today’s logistics networks. The March 2024 collapse of the Francis Scott Key Bridge in Baltimore, a critical ro/ro and vehicle export hub, exposed the system’s fragility. Overnight, cargo flows were disrupted, schedules were delayed and shippers were forced to reroute at significant cost. Inland ports such as the Port of Monroe offer a hedge against that kind of single-point failure. <h3>‘Manageable’ constraints </h3>Do the Great Lakes have constraints? Yes, but they are manageable. The annual three-month winter closure of the St. Lawrence Seaway is predictable and published well in advance, allowing cargo owners and carriers to plan accordingly. Intra-lake shipping continues throughout the winter, particularly with ice-class vessels. Recent climate trends indicate shorter freeze periods and milder conditions, which are gradually increasing intralake shipping capacity during the winter months. Other northern regions facing even harsher winter conditions have demonstrated what is possible. The Baltic Sea offers a relevant example. Despite a smaller economic footprint and more severe ice conditions, Baltic ports remain active year-round through the use of ice-capable vessels and integrated multimodal infrastructure. There is no reason the Great Lakes, now that the regulatory path has been cleared, should not do the same and make a comparable contribution to North American trade resilience. Unlike coastal gateways, which face sudden disruptions from hurricanes, labor action and infrastructure failures, the risks on the Great Lakes are stable and foreseeable. That reliability offers a competitive advantage for shippers navigating global volatility. But infrastructure alone is not enough. What is required is a shift in mindset. Federal freight policy must treat the Great Lakes as a fully integrated corridor. Carriers need to revisit assumptions about vessel size and routing patterns. Shippers will now be able to prioritize proximity, reliability and carbon performance rather than adhering to legacy paths shaped by outdated restrictions. The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base. Supporting inland container movement by vessel can drive demand for US-built ships, sustain skilled shipyard jobs, and expand the national maritime workforce. This is not just a logistics upgrade. It is a long-term investment in national capacity, employment, and competitiveness. This is a practical opportunity to enhance the national freight system using inland infrastructure that is efficient, cost-effective and underutilized. Monroe stands ready to serve shippers, carriers and policymakers seeking flexible, durable solutions. The Great Lakes have always had the potential to support containerized trade. Now that the path is open, the Port of Monroe is prepared to deliver. Capt. Paul C. LaMarre III is also director of the Port of Monroe in Michigan. Contact him at <a href="mailto:plamarre@portofmonroe.com">plamarre@portofmonroe.com</a>. </div>

For decades, international containerized freight from Michigan and the broader Midwest has been routed through distant US coastal gateways such as New York, Norfolk and Savannah, or Canadian ports such as Halifax and Montreal. Export-side users have included automotive original equipment manufacturers (OEMs), steel and chemical producers and agricultural shippers, while imports have consisted of tier 1 suppliers, machinery and equipment distributors and retail or e-commerce consolidators. These routes were not chosen for efficiency or cost. They were imposed by federal restrictions that have for decades prevented containerized freight from entering or exiting the Great Lakes by vessel. US Customs today does not permit such movements through Michigan because no facility in the state meets the required federal standards for security and processing. That is about to change. In 2026, the Port of Monroe will activate the first SAFE Port Act-compliant international container terminal in the Great Lakes, along with a new roll-on/roll-off (ro/ro) platform that complements existing vessel berths, dual Class I rail access and proximity to interstate highways and Midwest manufacturing. Together, these assets position Monroe as a fully integrated inland gateway for containerized trade and high-value industrial logistics. Conservatively, 1 million to 2 million TEUs of oceangoing cargo are generated annually from the Great Lakes’ industrial core, according to port estimates. This includes high-value shipments from sectors such as automotive, machinery, chemicals and electronics. Rather than projecting future throughput volumes, the Port of Monroe is focused on establishing a lawful and functioning corridor, allowing the market to respond. The goal is to restore balance, provide carriers with a practical entry point and give shippers a logistics option that should have existed decades ago. The terminal at Monroe will be available to operators who recognize the value of establishing service in an underserved but strategically positioned market. The automotive industry, in particular, stands to benefit. With production concentrated in the Midwest and export demand on the rise, direct vessel service from Monroe reduces complexity and supports just-in-time inventory models. Monroe offers a new point of connection between Midwest production and global markets, serving as a strategic outlet for general containerized freight and, more uniquely, for the direct shipment of new vehicles via ro/ro or in containers. Resilience has become a defining priority for today’s logistics networks. The March 2024 collapse of the Francis Scott Key Bridge in Baltimore, a critical ro/ro and vehicle export hub, exposed the system’s fragility. Overnight, cargo flows were disrupted, schedules were delayed and shippers were forced to reroute at significant cost. Inland ports such as the Port of Monroe offer a hedge against that kind of single-point failure. ‘Manageable’ constraints Do the Great Lakes have constraints? Yes, but they are manageable. The annual three-month winter closure of the St. Lawrence Seaway is predictable and published well in advance, allowing cargo owners and carriers to plan accordingly. Intra-lake shipping continues throughout the winter, particularly with ice-class vessels. Recent climate trends indicate shorter freeze periods and milder conditions, which are gradually increasing intralake shipping capacity during the winter months. Other northern regions facing even harsher winter conditions have demonstrated what is possible. The Baltic Sea offers a relevant example. Despite a smaller economic footprint and more severe ice conditions, Baltic ports remain active year-round through the use of ice-capable vessels and integrated multimodal infrastructure. There is no reason the Great Lakes, now that the regulatory path has been cleared, should not do the same and make a comparable contribution to North American trade resilience. Unlike coastal gateways, which face sudden disruptions from hurricanes, labor action and infrastructure failures, the risks on the Great Lakes are stable and foreseeable. That reliability offers a competitive advantage for shippers navigating global volatility. But infrastructure alone is not enough. What is required is a shift in mindset. Federal freight policy must treat the Great Lakes as a fully integrated corridor. Carriers need to revisit assumptions about vessel size and routing patterns. Shippers will now be able to prioritize proximity, reliability and carbon performance rather than adhering to legacy paths shaped by outdated restrictions. The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base. Supporting inland container movement by vessel can drive demand for US-built ships, sustain skilled shipyard jobs, and expand the national maritime workforce. This is not just a logistics upgrade. It is a long-term investment in national capacity, employment, and competitiveness. This is a practical opportunity to enhance the national freight system using inland infrastructure that is efficient, cost-effective and underutilized. Monroe stands ready to serve shippers, carriers and policymakers seeking flexible, durable solutions. The Great Lakes have always had the potential to support containerized trade. Now that the path is open, the Port of Monroe is prepared to deliver. Capt. Paul C. LaMarre III is also director of the Port of Monroe in Michigan. Contact him at plamarre@portofmonroe.com .

Supply chain

Ro/ro cargo

Michigan inland port offers new option for Great Lakes containerized freight

Current period

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

US YTD container imports (PIERS)

PIERS US total imports volume last 10 years (YTD) (year-over-year change) Gateway

<div class="phx-topic abstract-wrapper">Domestic intermodal volumes have been stagnant on partner BNSF Railway out of Los Angeles, likely dulling the justification for the original $1,500 fee.</div>

Domestic intermodal volumes have been stagnant on partner BNSF Railway out of Los Angeles, likely dulling the justification for the original $1,500 fee.

<div class="phx-topic">More than a month after imposing a $1,500 peak season surcharge that frustrated some targeted shippers moving goods out of Southern California, J.B. Hunt Transport Services has cut the fee by nearly half, several customers told the Journal of Commerce. The surcharge is primarily directed at retailers moving holiday merchandise in the third quarter. In recent weeks, J.B. Hunt has lowered the fee to approximately $800 per container, according to several shippers who did not want to be identified. J.B. Hunt did not respond to a request for comment. “J.B. Hunt told us that they re-evaluated and were able to work with BNSF to more efficiently reposition capacity to Los Angeles for any surge,” one J.B. Hunt customer said. J.B. Hunt’s decision to lower its surcharge might be related to the volume of the domestic intermodal shipments it handles. BNSF Railway, its exclusive West Coast partner, has seen stronger gains in international intermodal shipments than in domestic shipments during a recent uptick in port volumes in Los Angeles and Long Beach. International shipments rose more than 20% last week in Southern California compared with two months ago, according to data provider RailState. But BNSF’s domestic intermodal has been largely flat since January. J.B. Hunt reported that transcontinental intermodal freight — i.e. anything originating or terminating on the West Coast — declined 1% year over year in the second quarter. Because J.B. Hunt is BNSF’s largest domestic intermodal customer, the data suggests much of the same for J.B. Hunt in the third quarter. <h3>UP implemented its own surcharge </h3>After J.B. Hunt’s <a href="https://www.joc.com/article/jb-hunt-hits-some-shippers-with-big-surcharges-in-southern-california-6043454">initial announcement</a>, competitors introduced their own surcharges ranging from $300 to $900 per container, including one by Union Pacific Railroad (UP) for shippers using non-asset brokers. <a href="https://www.joc.com/article/up-seeks-surcharges-amid-intermodal-volumes-surge-6062080">UP is charging</a> $300 per container on high-volume shippers and $500 per box on low-volume shippers on excess freight in Southern California. Union Pacific has posted stronger results, with domestic intermodal in Southern California up nearly 20% last week compared with two months ago, according to RailState. UP partners Hub Group and Schneider National described July demand in Southern California as robust during recent quarterly earnings calls. Even with the increase in volume, intermodal service out of Southern California has remained stable. Both BNSF and UP have reported faster train speeds, fewer trains being held and a decline in idle railcars compared with their weekly averages since 2017, according to the US Surface Transportation Board. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

More than a month after imposing a $1,500 peak season surcharge that frustrated some targeted shippers moving goods out of Southern California, J.B. Hunt Transport Services has cut the fee by nearly half, several customers told the Journal of Commerce. The surcharge is primarily directed at retailers moving holiday merchandise in the third quarter. In recent weeks, J.B. Hunt has lowered the fee to approximately $800 per container, according to several shippers who did not want to be identified. J.B. Hunt did not respond to a request for comment. “J.B. Hunt told us that they re-evaluated and were able to work with BNSF to more efficiently reposition capacity to Los Angeles for any surge,” one J.B. Hunt customer said. J.B. Hunt’s decision to lower its surcharge might be related to the volume of the domestic intermodal shipments it handles. BNSF Railway, its exclusive West Coast partner, has seen stronger gains in international intermodal shipments than in domestic shipments during a recent uptick in port volumes in Los Angeles and Long Beach. International shipments rose more than 20% last week in Southern California compared with two months ago, according to data provider RailState. But BNSF’s domestic intermodal has been largely flat since January. J.B. Hunt reported that transcontinental intermodal freight — i.e. anything originating or terminating on the West Coast — declined 1% year over year in the second quarter. Because J.B. Hunt is BNSF’s largest domestic intermodal customer, the data suggests much of the same for J.B. Hunt in the third quarter. UP implemented its own surcharge After J.B. Hunt’s initial announcement , competitors introduced their own surcharges ranging from $300 to $900 per container, including one by Union Pacific Railroad (UP) for shippers using non-asset brokers. UP is charging $300 per container on high-volume shippers and $500 per box on low-volume shippers on excess freight in Southern California. Union Pacific has posted stronger results, with domestic intermodal in Southern California up nearly 20% last week compared with two months ago, according to RailState. UP partners Hub Group and Schneider National described July demand in Southern California as robust during recent quarterly earnings calls. Even with the increase in volume, intermodal service out of Southern California has remained stable. Both BNSF and UP have reported faster train speeds, fewer trains being held and a decline in idle railcars compared with their weekly averages since 2017, according to the US Surface Transportation Board. Contact Ari Ashe at ari.ashe@spglobal.com .

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J.B. Hunt reduces peak season surcharge on Southern California moves

<div class="phx-topic abstract-wrapper">A sense of uncertainty — if not alarm — about future demand and tariff levels on China has slowed, and even paralyzed, some orders from small and medium-sized importers, four veteran forwarders told the Journal of Commerce.</div>

A sense of uncertainty — if not alarm — about future demand and tariff levels on China has slowed, and even paralyzed, some orders from small and medium-sized importers, four veteran forwarders told the Journal of Commerce.

<div class="phx-topic">The true toll of US tariffs on China is just beginning to be felt on the trans-Pacific. Months of frontloading that drove an earlier peak season have come to an end, and US retailers are pulling back on ordering for the rest of the year in the face of a slowing US economy and higher tariff costs. Shippers and consignees are also racking up stiffer demurrage and storage bills because demand uncertainty is slowing their pickup of containers from marine terminals. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6065756_0.1.jpg"></img></div>A sense of uncertainty — if not alarm — about future demand and tariff levels on China has slowed, and even paralyzed, some orders from small and medium-sized importers, four veteran forwarders told the Journal of Commerce. While China bookings haven’t cratered as they did in April when the Trump administration temporarily raised the US tariff level to 145%, forwarders warn of a renewed weakness in the market caused by more than just the end of peak season. Laden volumes from Asia to the US in July surged to a six-month high as shippers moved product ahead of August tariff deadlines. And while US imports are forecast to be up 5.8% year over year in August, <a href="https://www.joc.com/article/us-retailers-project-big-year-over-year-import-declines-to-close-out-2025-6060323">according to the latest Global Port Tracker (GPT)</a>, the rest of the year looks dismal. Volumes from September through December are expected to be down at least 20% year over year each month. Granted, volumes were elevated last year due to the threat of a labor strike on the East and Gulf coasts, but the current malaise is more than just tough 2024 comparisons. Small importers in particular are finding it harder to eat higher tariff costs, hampering orders as they try to push price increases onto consumers or back onto suppliers. <h3>Importers passing prices to consumers </h3>An index measuring the likelihood of US small business owners to increase prices hit its highest level in July since March 2024, according to the National Federation of Independent Businesses. A US Census Bureau survey of all US businesses, excluding farms, came to a similar conclusion, with 34% of respondents in late July saying they would increase prices over the next six months. Two weeks earlier, that figure was 29%. Even Home Depot, the second-largest US importer as measured by volume in 2024, is having to increase prices modestly. The company told investors Tuesday that while it had pledged in May not to increase prices due to tariffs, the tariff levels have since increased. August tends to be a strong year for inbound volumes, but not this year, said one executive for a forwarder that serves big box importers and a top online retailer. Because of tariff uncertainty, the seasonality of the inbound trade “is out the window,” the source said. “We’re feeling the pinch,” he said. “I think we’ve got a couple rough months ahead.” <h3>Demurrage levels on the rise </h3>Customers importing lower-value goods have even begun abandoning containers as the cost of the tariffs outweighs what the items can be sold for. Even those who tapped bonded warehouse space face the prospect of no more reprieves in tariffs — and a hefty storage bill, the forwarder source said. Other customers are shifting toward origin-controlled cargo, in which the seller bears all shipping and customs costs until it delivers the goods to the buyer, he said. Rising demurrage levels at major US ports also speak to increased deterioration in the trans-Pacific market. Demurrage levels have been rising all year but spiked in July to an average of 8.1 days, up from 3.8 days in January, according to data from transportation management visibility software vendor GoComet. While shipper customers of GoComet say erratic vessel reliability is playing a role in higher demurrage bills, tariff uncertainty is the main driver. Beneficial cargo owners (BCOs) “are either rushing orders to get ahead of tariffs or, more critically, canceling orders while cargo is already on the water,” said Chitransh Sahai, CEO of GoComet. “This leaves them with containers at the destination that have to be held or rerouted, which directly results in demurrage.” Part of that uncertainty is that some importers aren’t confident that the 55% tariff rate agreed upon between the US and China in an initial framework of a trade deal won’t be adjusted again when the since-extended tariff truce expires Nov. 10, said another forwarder source, who predominantly serves Chinese exporters. That has led to dribs and drabs of replenishment. “Customers are doing crazy types of operations to sustain their businesses,” he said. “Some customers have [even] stopped ocean shipping and have gone to small parcel.” Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>.</div>

The true toll of US tariffs on China is just beginning to be felt on the trans-Pacific. Months of frontloading that drove an earlier peak season have come to an end, and US retailers are pulling back on ordering for the rest of the year in the face of a slowing US economy and higher tariff costs. Shippers and consignees are also racking up stiffer demurrage and storage bills because demand uncertainty is slowing their pickup of containers from marine terminals. A sense of uncertainty — if not alarm — about future demand and tariff levels on China has slowed, and even paralyzed, some orders from small and medium-sized importers, four veteran forwarders told the Journal of Commerce. While China bookings haven’t cratered as they did in April when the Trump administration temporarily raised the US tariff level to 145%, forwarders warn of a renewed weakness in the market caused by more than just the end of peak season. Laden volumes from Asia to the US in July surged to a six-month high as shippers moved product ahead of August tariff deadlines. And while US imports are forecast to be up 5.8% year over year in August, according to the latest Global Port Tracker (GPT) , the rest of the year looks dismal. Volumes from September through December are expected to be down at least 20% year over year each month. Granted, volumes were elevated last year due to the threat of a labor strike on the East and Gulf coasts, but the current malaise is more than just tough 2024 comparisons. Small importers in particular are finding it harder to eat higher tariff costs, hampering orders as they try to push price increases onto consumers or back onto suppliers. Importers passing prices to consumers An index measuring the likelihood of US small business owners to increase prices hit its highest level in July since March 2024, according to the National Federation of Independent Businesses. A US Census Bureau survey of all US businesses, excluding farms, came to a similar conclusion, with 34% of respondents in late July saying they would increase prices over the next six months. Two weeks earlier, that figure was 29%. Even Home Depot, the second-largest US importer as measured by volume in 2024, is having to increase prices modestly. The company told investors Tuesday that while it had pledged in May not to increase prices due to tariffs, the tariff levels have since increased. August tends to be a strong year for inbound volumes, but not this year, said one executive for a forwarder that serves big box importers and a top online retailer. Because of tariff uncertainty, the seasonality of the inbound trade “is out the window,” the source said. “We’re feeling the pinch,” he said. “I think we’ve got a couple rough months ahead.” Demurrage levels on the rise Customers importing lower-value goods have even begun abandoning containers as the cost of the tariffs outweighs what the items can be sold for. Even those who tapped bonded warehouse space face the prospect of no more reprieves in tariffs — and a hefty storage bill, the forwarder source said. Other customers are shifting toward origin-controlled cargo, in which the seller bears all shipping and customs costs until it delivers the goods to the buyer, he said. Rising demurrage levels at major US ports also speak to increased deterioration in the trans-Pacific market. Demurrage levels have been rising all year but spiked in July to an average of 8.1 days, up from 3.8 days in January, according to data from transportation management visibility software vendor GoComet. While shipper customers of GoComet say erratic vessel reliability is playing a role in higher demurrage bills, tariff uncertainty is the main driver. Beneficial cargo owners (BCOs) “are either rushing orders to get ahead of tariffs or, more critically, canceling orders while cargo is already on the water,” said Chitransh Sahai, CEO of GoComet. “This leaves them with containers at the destination that have to be held or rerouted, which directly results in demurrage.” Part of that uncertainty is that some importers aren’t confident that the 55% tariff rate agreed upon between the US and China in an initial framework of a trade deal won’t be adjusted again when the since-extended tariff truce expires Nov. 10, said another forwarder source, who predominantly serves Chinese exporters. That has led to dribs and drabs of replenishment. “Customers are doing crazy types of operations to sustain their businesses,” he said. “Some customers have [even] stopped ocean shipping and have gone to small parcel.” Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Toll of US tariffs begins to emerge on unsettled trans-Pacific

<div class="phx-topic abstract-wrapper">With 70% of its volume moving under spot rates, there was no escape from the volatile US-China tariff battle.</div>

With 70% of its volume moving under spot rates, there was no escape from the volatile US-China tariff battle.

<div class="phx-topic">Zim Integrated Shipping Services’ heavy exposure to the trans-Pacific spot market dragged down its revenue, earnings and volume in a tariff-disrupted second quarter. While the carrier doubles down on cost controls and improving its fleet management, there was no escape from the volatile US-China tariff dispute with 70% of its volume exposed to spot rates. “It has been an unpredictable 2025 so far, with wide swings in freight rates, but we are confident in our competitive position in the industry,” Eli Glickman, Zim’s president and CEO, told analysts during an earnings call Wednesday. Following a good start to the year, the next three months for Zim were highly disruptive as US tariffs on China were increased to 145% in early April, causing rates to tumble amid an abrupt halt to cargo bookings. Then, in early May, the White House announced a 90-day pause on tariffs, which led to a rush to load cargo as well as soaring rates. Zim’s average spot rates in the second quarter fell 12% to $1,479 per TEU, while volume dropped 6% to 895,000 TEUs. Those combined to push revenue down 15% year over year to $1.64 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 38% to $472 million, earnings before interest and taxes (EBIT) of $149 million was down 69%, and net profit of $24 million plummeted 94% compared with the same quarter last year, Zim said. Despite the battered balance sheet, Zim’s executives remained confident in their outlook, raising the lower range of the carrier’s full-year profit expectations. Zim now expects to generate EBITDA of between $1.8 billion and $2.2 billion (up from a previous forecast of $1.6 billion to $2.2 billion), and EBIT of $550 million to $950 million (compared with $350 million to $950 million previously). <h3>Late-quarter surge in rates </h3>The new outlook reflects a lag in second quarter rates that rose sharply following the US’ 90-day pause on China tariffs, which will bolster third-quarter earnings, according to Zim CFO Xavier Destriau. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="2c8b6ebc-0a77-4206-b047-7f98dae05cb8"></dynamic-object></div>“The surge in rates that we experienced towards the second half of the second quarter were only partially recorded in Q2 and some of those rates and bills of lading will find their way into the third quarter,” Destriau told the Journal of Commerce in an interview. “We don’t have high expectations of a strong peak season in the third quarter, but we’ve benefited from strong volume in July and that will be stabilizing in a way,” he added. “Year over year, we don’t expect volume to fade, but we don’t expect a build-up of volume and rates might remain depressed.” Destriau said that scenario would likely prevail into the fourth quarter. Zim executives highlighted the carrier’s capacity management flexibility, pointing out that the renewal of 12 chartered vessels whose contracts expire in the second half of the year and 22 vessels up for renewal next year would depend on demand. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Zim Integrated Shipping Services’ heavy exposure to the trans-Pacific spot market dragged down its revenue, earnings and volume in a tariff-disrupted second quarter. While the carrier doubles down on cost controls and improving its fleet management, there was no escape from the volatile US-China tariff dispute with 70% of its volume exposed to spot rates. “It has been an unpredictable 2025 so far, with wide swings in freight rates, but we are confident in our competitive position in the industry,” Eli Glickman, Zim’s president and CEO, told analysts during an earnings call Wednesday. Following a good start to the year, the next three months for Zim were highly disruptive as US tariffs on China were increased to 145% in early April, causing rates to tumble amid an abrupt halt to cargo bookings. Then, in early May, the White House announced a 90-day pause on tariffs, which led to a rush to load cargo as well as soaring rates. Zim’s average spot rates in the second quarter fell 12% to $1,479 per TEU, while volume dropped 6% to 895,000 TEUs. Those combined to push revenue down 15% year over year to $1.64 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 38% to $472 million, earnings before interest and taxes (EBIT) of $149 million was down 69%, and net profit of $24 million plummeted 94% compared with the same quarter last year, Zim said. Despite the battered balance sheet, Zim’s executives remained confident in their outlook, raising the lower range of the carrier’s full-year profit expectations. Zim now expects to generate EBITDA of between $1.8 billion and $2.2 billion (up from a previous forecast of $1.6 billion to $2.2 billion), and EBIT of $550 million to $950 million (compared with $350 million to $950 million previously). Late-quarter surge in rates The new outlook reflects a lag in second quarter rates that rose sharply following the US’ 90-day pause on China tariffs, which will bolster third-quarter earnings, according to Zim CFO Xavier Destriau. “The surge in rates that we experienced towards the second half of the second quarter were only partially recorded in Q2 and some of those rates and bills of lading will find their way into the third quarter,” Destriau told the Journal of Commerce in an interview. “We don’t have high expectations of a strong peak season in the third quarter, but we’ve benefited from strong volume in July and that will be stabilizing in a way,” he added. “Year over year, we don’t expect volume to fade, but we don’t expect a build-up of volume and rates might remain depressed.” Destriau said that scenario would likely prevail into the fourth quarter. Zim executives highlighted the carrier’s capacity management flexibility, pointing out that the renewal of 12 chartered vessels whose contracts expire in the second half of the year and 22 vessels up for renewal next year would depend on demand. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Pacific spot market exposure drags down Zim’s Q2 earnings

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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<div class="phx-topic abstract-wrapper">Less-than-truckload costs are up 7.3% year over year, according to the latest US data, but changes to the LTL classification system are adding little, if anything, to shipper rates. </div>

Less-than-truckload costs are up 7.3% year over year, according to the latest US data, but changes to the LTL classification system are adding little, if anything, to shipper rates.

<div class="phx-topic">Revisions to the US less-than-truckload (LTL) classification system that were expected to result in higher LTL costs have proven more of a damp squib than a high explosive. Almost a month after the <a href="https://www.joc.com/article/lack-of-accurate-data-a-threat-to-us-shippers-as-ltl-reclassification-nears-5990210">July 19 implementation</a> of the new National Motor Freight Classification (NMFC), shippers, carriers and logistics providers report little to no change in freight invoices. Carriers are reporting few complaints from customers, if any. LTL rates continue to rise, but little if any of that increase can be attributed to changes to the NMFC. The US long-distance LTL producer price index (PPI) — a measure of all-inclusive LTL costs — rose 1.7% from June to 265.45 in July, a 7.3% year-over-year gain, according to data released by the US Bureau of Labor Statistics (BLS) Thursday. LTL costs are now 15% higher than they were when the then third-largest provider Yellow collapsed in July 2023, according to the BLS PPI index, now at a record high. The fear was that the “reimagination” of the NMFC would push rates even higher. The changes to the NMFC shifted more than 2,000 products or commodities into classes determined by density alone, rather than other shipping characteristics. Although the NMFC does not set pricing, it helps determine how shipments are priced. In interviews over the past month, large shippers told the Journal of Commerce they either prepared for the revised NMFC ahead of time or that the revisions didn’t affect their freight or their business. Many used FAK (freight-all-kinds) pricing methods for LTL freight. That’s not what LTL executives expected from the biggest overhaul to the NMFC — a system of classifying commodities used to create LTL pricing structures — in its 90-year history. “Leading up to [the revisions], about two months prior, we got a lot of questions,” National Motor Freight Traffic Association (NMFTA) COO Joe Ohr told the Journal of Commerce. “But the level of preparation the industry did was amazing.” (The NMFTA oversees the NMFC).“We’re pleasantly surprised,” said Geoff Muessig, chief marketing officer at Pitt Ohio, a multi-regional LTL provider based in Pittsburgh. Pitt Ohio spent several months prepping its customers for classification changes, and Muessig expected some pricing shock. However, in the past month, “I have not seen any significant change in invoice amounts,” Muessig told the Journal of Commerce. “Customer acceptance [of the revisions] has been solid. We’ve had very few requests to make changes to price structures.” “We expected pricing adjustments, calls and complaints, but it’s been quiet for us, and many of the carriers we work with have said it’s been quite quiet,” said Mich Fabriga, vice president of LTL pricing for AFS Logistics, a third-party logistics provider. AFS Logistics handles freight bill auditing for shipper customers. Fabriga told the Journal of Commerce he has seen minor changes to billing caused by the NMFC revisions. “We’re not seeing the big uproar we were expecting” in the wake of NMFC revisions, he said. “It’s almost like a Y2K moment,” he added, referring to the much-predicted computer apocalypse that failed to materialize when 1999 ended and 2000 began. <h3>A muted marketplace </h3>There are several possible reasons why the impact of the NMFC revisions has been muted. One is that many shippers, especially large-volume shippers, did indeed prepare. “Many customers certainly did the research, they made the changes” needed to avoid price increases, said Muessig, namely providing their LTL carriers with accurate information on shipment dimensions and weight to determine density. “My take is the marketplace has absorbed the change,” he said. It’s also early in the data collection process, AFS’ Fabriga said. “It’s probably too early” to make definitive statements about the impact of the classification changes, he acknowledged. Larger shippers are also more likely to use FAK pricing embedded in their contracts to avoid relying on class-based rates, Muessig noted. The impact of the NMFC revisions may become more apparent as annual contracts come up for negotiation. FedEx Freight, the largest US LTL provider, <a href="https://www.joc.com/article/fedex-freight-delays-enforcement-of-ltl-re-classification-6047284">delayed implementing the NMFC revisions</a> until Dec. 1, giving thousands of shippers a 150-day reprieve. FedEx Freight said shippers needed more time to get ready for the new classifications. But the rest of the LTL sector did not automatically follow suit. “In terms of the [NMFC] changes, look, we’re not backing down on the implementation,” Matthew Batteh, CFO at Saia, told Wall Street analysts during a July 25 earnings call. Saia runs 75% of its freight through equipment that captures shipment dimensions every day, Batteh said. “We sell space on our trailers, and this aligns more of the book to be density-based,” he said. “We’ve invested heavily in dimensioners for that exact reason.” <h3>Absorbing change </h3>Others have questioned whether LTL carriers would enforce changes that could raise rates in a soft LTL freight market. “Carriers aren’t being very strict about it,” said Satish Jindel, president of SJ Consulting Group, a transportation research firm. “Many carriers aren’t set up to capture dimensions and shippers aren’t set up to supply dimensions,” Jindel said. “They both are not letting go of the old system.” It’s also not clear that carriers have much to gain by pushing shippers — especially large customers that provide high volumes of freight in critical lanes. Smaller shippers with low LTL volumes and irregular shipping are most likely absorbing higher costs, but as they deal with increased costs related to higher US tariffs, the NMFC revisions may be the least of their worries. “When we say improve your packaging to improve density, that sounds like an easy ask, but it’s actually not,” Fabriga said. “You often simply can’t add or subtract product to adjust the size of your shipment,” he added. “The cost of offsetting the change can be higher than the revised rate itself.” Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Revisions to the US less-than-truckload (LTL) classification system that were expected to result in higher LTL costs have proven more of a damp squib than a high explosive. Almost a month after the July 19 implementation of the new National Motor Freight Classification (NMFC), shippers, carriers and logistics providers report little to no change in freight invoices. Carriers are reporting few complaints from customers, if any. LTL rates continue to rise, but little if any of that increase can be attributed to changes to the NMFC. The US long-distance LTL producer price index (PPI) — a measure of all-inclusive LTL costs — rose 1.7% from June to 265.45 in July, a 7.3% year-over-year gain, according to data released by the US Bureau of Labor Statistics (BLS) Thursday. LTL costs are now 15% higher than they were when the then third-largest provider Yellow collapsed in July 2023, according to the BLS PPI index, now at a record high. The fear was that the “reimagination” of the NMFC would push rates even higher. The changes to the NMFC shifted more than 2,000 products or commodities into classes determined by density alone, rather than other shipping characteristics. Although the NMFC does not set pricing, it helps determine how shipments are priced. In interviews over the past month, large shippers told the Journal of Commerce they either prepared for the revised NMFC ahead of time or that the revisions didn’t affect their freight or their business. Many used FAK (freight-all-kinds) pricing methods for LTL freight. That’s not what LTL executives expected from the biggest overhaul to the NMFC — a system of classifying commodities used to create LTL pricing structures — in its 90-year history. “Leading up to [the revisions], about two months prior, we got a lot of questions,” National Motor Freight Traffic Association (NMFTA) COO Joe Ohr told the Journal of Commerce. “But the level of preparation the industry did was amazing.” (The NMFTA oversees the NMFC). “We’re pleasantly surprised,” said Geoff Muessig, chief marketing officer at Pitt Ohio, a multi-regional LTL provider based in Pittsburgh. Pitt Ohio spent several months prepping its customers for classification changes, and Muessig expected some pricing shock. However, in the past month, “I have not seen any significant change in invoice amounts,” Muessig told the Journal of Commerce. “Customer acceptance [of the revisions] has been solid. We’ve had very few requests to make changes to price structures.” “We expected pricing adjustments, calls and complaints, but it’s been quiet for us, and many of the carriers we work with have said it’s been quite quiet,” said Mich Fabriga, vice president of LTL pricing for AFS Logistics, a third-party logistics provider. AFS Logistics handles freight bill auditing for shipper customers. Fabriga told the Journal of Commerce he has seen minor changes to billing caused by the NMFC revisions. “We’re not seeing the big uproar we were expecting” in the wake of NMFC revisions, he said. “It’s almost like a Y2K moment,” he added, referring to the much-predicted computer apocalypse that failed to materialize when 1999 ended and 2000 began. A muted marketplace There are several possible reasons why the impact of the NMFC revisions has been muted. One is that many shippers, especially large-volume shippers, did indeed prepare. “Many customers certainly did the research, they made the changes” needed to avoid price increases, said Muessig, namely providing their LTL carriers with accurate information on shipment dimensions and weight to determine density. “My take is the marketplace has absorbed the change,” he said. It’s also early in the data collection process, AFS’ Fabriga said. “It’s probably too early” to make definitive statements about the impact of the classification changes, he acknowledged. Larger shippers are also more likely to use FAK pricing embedded in their contracts to avoid relying on class-based rates, Muessig noted. The impact of the NMFC revisions may become more apparent as annual contracts come up for negotiation. FedEx Freight, the largest US LTL provider, delayed implementing the NMFC revisions until Dec. 1, giving thousands of shippers a 150-day reprieve. FedEx Freight said shippers needed more time to get ready for the new classifications. But the rest of the LTL sector did not automatically follow suit. “In terms of the [NMFC] changes, look, we’re not backing down on the implementation,” Matthew Batteh, CFO at Saia, told Wall Street analysts during a July 25 earnings call. Saia runs 75% of its freight through equipment that captures shipment dimensions every day, Batteh said. “We sell space on our trailers, and this aligns more of the book to be density-based,” he said. “We’ve invested heavily in dimensioners for that exact reason.” Absorbing change Others have questioned whether LTL carriers would enforce changes that could raise rates in a soft LTL freight market. “Carriers aren’t being very strict about it,” said Satish Jindel, president of SJ Consulting Group, a transportation research firm. “Many carriers aren’t set up to capture dimensions and shippers aren’t set up to supply dimensions,” Jindel said. “They both are not letting go of the old system.” It’s also not clear that carriers have much to gain by pushing shippers — especially large customers that provide high volumes of freight in critical lanes. Smaller shippers with low LTL volumes and irregular shipping are most likely absorbing higher costs, but as they deal with increased costs related to higher US tariffs, the NMFC revisions may be the least of their worries. “When we say improve your packaging to improve density, that sounds like an easy ask, but it’s actually not,” Fabriga said. “You often simply can’t add or subtract product to adjust the size of your shipment,” he added. “The cost of offsetting the change can be higher than the revised rate itself.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Surface

US LTL rates still rising after muted response to shipment reclassification

<div class="phx-topic abstract-wrapper">Traditional retailers in the US are scaling back their space requirements, according to an annual report, as the volatility over tariffs trickles down to the industrial real estate market.</div>

Traditional retailers in the US are scaling back their space requirements, according to an annual report, as the volatility over tariffs trickles down to the industrial real estate market.

<div class="phx-topic">US tariff uncertainty is holding back retailers from taking a larger warehousing footprint, fueling demand for domestic manufacturing facilities and giving third-party logistics companies (3PLs) a larger share of the available pipeline of industrial space, according to JLL’s annual Industrial Tenant Demand Study. Traditional retailers in the US have scaled back their industrial space requirements by 16.7% year over year, according to data collected by JLL during the first half of 2025. In contrast, 3PLs expanded their footprint by 12.8% in the same period. Still, overall demand is down almost 11%, marking the third year in a row with demand reductions. “[3PLs are] looking for incremental space,” Daniel Stephen Letter, president and director of Prologis, the largest US industrial real estate firm as measured by square footage, said during a July 16 earnings call. “We’re seeing this mostly from the larger 3PLs, many of them are unphased by all the noise in the macro picture.” Additionally, the average warehouse vacancy rate in the US rose to 7.1% in the second quarter — the highest level in over a decade and up one percentage point from the second quarter of 2024, commercial real estate services firm Cushman &amp; Wakefield said in its second-quarter industrial real estate report. Meanwhile, JLL said first-half demand for warehousing and distribution was down 14.6% compared with a year ago. JLL said the juxtaposition of the two trends signals retailers are becoming more cautious as logistics providers prepare for potential supply chain disruptions. Prologis said 3PLs accounted for about one-third of the company’s leasing in the second quarter. <h3>Significant 3PL growth </h3>In a sign of their growth, the number of 3PLs occupying the top 100 largest US industrial real estate leases rose in the first quarter of 2025, with 38 3PLs managing 28.9 million square feet — a 35% increase in square footage from the first quarter of 2024, when 28 3PLS controlled 20.6 million square feet. <a href="https://www.joc.com/article/multiplying-supply-chain-risks-drive-growth-for-global-us-based-logistics-firms-6026573">Amazon tops the annual revenue rankings</a> of both domestic and global 3PLs by logistics research firm Armstrong &amp; Associates, with $156.2 billion in 3PL-related revenue. Meanwhile, DHL Supply Chain &amp; Global Forwarding came in second in the global 3PL rankings, followed by Kuehne + Nagel. The Armstrong report said risk created by trade uncertainty and other geopolitical conflicts <a href="https://www.joc.com/article/multiplying-supply-chain-risks-drive-growth-for-global-us-based-logistics-firms-6026573">will help push global gross 3PL revenue up</a> another 2.7% in 2025 to $1.25 trillion. That revenue should grow again by 4.9% in 2026 to $1.3 trillion, it said. Amid the growth, 3PLs accounted for 13% of build-to-suit projects in 2025 in data JLL collected during the first half of 2025 — the largest share of any industry, JLL said. According to Prologis CFO Timothy D. Arndt, build-to-suit starts for the first half of 2025 totaled $1.1 billion — the largest start to a year that the company has ever had. “In terms of capital deployment, we started over $900 million in new development starts — nearly 65% of which was build-to-suit activity across seven additional projects in both U.S. and Europe,” Arndt said on Prologis’ earnings call. “Beyond this activity, we have signed for an additional three build-to-suits post quarter end.” <h3>Hesitant to commit </h3>Overall, importers are seeking more agile leasing options. Lessees are shifting toward short-term renewals and away from long-term commitments “as they evaluate how evolving global supply chain strategies might impact their space requirements,” JLL wrote in its report. Meanwhile, industrial lessees are slower to move lately, said JLL, with potential lessees staying on the market for an average of 11 months — up almost 70% compared with 6.5 months observed in the fourth quarter of last year. By 2026, JLL projects that figure to reach 14 months. “At the fundamental level, immediate tariff effects have resulted in a pause of deals and decision deferment among occupiers,” said JLL. As tariffs dampen leasing decisions, manufacturing is still showing signs of momentum, with leasing demand up 9% year over year in data collected by JLL during the first half of 2025. The firm noted the shift to manufacturing continues to be a long-term pattern, with those investments taking as long as five years to come to fruition in some cases, said JLL. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

US tariff uncertainty is holding back retailers from taking a larger warehousing footprint, fueling demand for domestic manufacturing facilities and giving third-party logistics companies (3PLs) a larger share of the available pipeline of industrial space, according to JLL’s annual Industrial Tenant Demand Study. Traditional retailers in the US have scaled back their industrial space requirements by 16.7% year over year, according to data collected by JLL during the first half of 2025. In contrast, 3PLs expanded their footprint by 12.8% in the same period. Still, overall demand is down almost 11%, marking the third year in a row with demand reductions. “[3PLs are] looking for incremental space,” Daniel Stephen Letter, president and director of Prologis, the largest US industrial real estate firm as measured by square footage, said during a July 16 earnings call. “We’re seeing this mostly from the larger 3PLs, many of them are unphased by all the noise in the macro picture.” Additionally, the average warehouse vacancy rate in the US rose to 7.1% in the second quarter — the highest level in over a decade and up one percentage point from the second quarter of 2024, commercial real estate services firm Cushman & Wakefield said in its second-quarter industrial real estate report. Meanwhile, JLL said first-half demand for warehousing and distribution was down 14.6% compared with a year ago. JLL said the juxtaposition of the two trends signals retailers are becoming more cautious as logistics providers prepare for potential supply chain disruptions. Prologis said 3PLs accounted for about one-third of the company’s leasing in the second quarter. Significant 3PL growth In a sign of their growth, the number of 3PLs occupying the top 100 largest US industrial real estate leases rose in the first quarter of 2025, with 38 3PLs managing 28.9 million square feet — a 35% increase in square footage from the first quarter of 2024, when 28 3PLS controlled 20.6 million square feet. Amazon tops the annual revenue rankings of both domestic and global 3PLs by logistics research firm Armstrong & Associates, with $156.2 billion in 3PL-related revenue. Meanwhile, DHL Supply Chain & Global Forwarding came in second in the global 3PL rankings, followed by Kuehne + Nagel. The Armstrong report said risk created by trade uncertainty and other geopolitical conflicts will help push global gross 3PL revenue up another 2.7% in 2025 to $1.25 trillion. That revenue should grow again by 4.9% in 2026 to $1.3 trillion, it said. Amid the growth, 3PLs accounted for 13% of build-to-suit projects in 2025 in data JLL collected during the first half of 2025 — the largest share of any industry, JLL said. According to Prologis CFO Timothy D. Arndt, build-to-suit starts for the first half of 2025 totaled $1.1 billion — the largest start to a year that the company has ever had. “In terms of capital deployment, we started over $900 million in new development starts — nearly 65% of which was build-to-suit activity across seven additional projects in both U.S. and Europe,” Arndt said on Prologis’ earnings call. “Beyond this activity, we have signed for an additional three build-to-suits post quarter end.” Hesitant to commit Overall, importers are seeking more agile leasing options. Lessees are shifting toward short-term renewals and away from long-term commitments “as they evaluate how evolving global supply chain strategies might impact their space requirements,” JLL wrote in its report. Meanwhile, industrial lessees are slower to move lately, said JLL, with potential lessees staying on the market for an average of 11 months — up almost 70% compared with 6.5 months observed in the fourth quarter of last year. By 2026, JLL projects that figure to reach 14 months. “At the fundamental level, immediate tariff effects have resulted in a pause of deals and decision deferment among occupiers,” said JLL. As tariffs dampen leasing decisions, manufacturing is still showing signs of momentum, with leasing demand up 9% year over year in data collected by JLL during the first half of 2025. The firm noted the shift to manufacturing continues to be a long-term pattern, with those investments taking as long as five years to come to fruition in some cases, said JLL. Contact Laura Robb at laura.robb@spglobal.com . 

Industrial Real Estate News

Retailers cut back on warehouse space as supply chain hurdles fuel 3PL growth

<div class="phx-topic abstract-wrapper">Carriers have responded by adjusting schedules and blanking sailings, but the capacity management has so far failed to hold up prices on the trade lane.</div>

Carriers have responded by adjusting schedules and blanking sailings, but the capacity management has so far failed to hold up prices on the trade lane.

<div class="phx-topic">The spot market on the Asia-Europe ocean trade continues to decline as carriers battle to overcome a growing capacity overhang despite reports of solid demand through the summer and ongoing port congestion in Europe. While carriers have responded by adjusting schedules and blanking sailings on routes to both North Europe and the Mediterranean, pulling the capacity management levers has not yet been able to slow the steadily falling rates. Hapag-Lloyd CEO Rolf Habben Jansen told analysts during a first-half earnings call Thursday that bookings on Asia-Europe remain “robust.” And although rates were falling, he described that as normal for this time of year. “Sometimes the peak season ends a little bit early, and right now it looks like we won’t see a strong peak running up to the end of September,” the CEO said. “Volumes into Europe have been pretty steady, and bookings are still robust, but we now need to see what happens in the coming couple of weeks.” Asia to North Europe spot rates of $2,700 per FEU this week are half the level recorded at the beginning of January and have fallen 15% in the past two months, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Asia-Mediterranean rates have been on an even more dramatic slide, falling 44% in the past two months to this week’s price of $2,600/FEU, also a decline of 50% compared with the first week of January. “Carriers face an immense challenge in preventing freight rates from falling further against the backdrop of significant overcapacity in the global fleet,” Emily Stausbøll, senior analyst at rate benchmarking platform Xeneta, noted in a recent market update. “It is unlikely the Red Sea will open up to container shipping at large during 2025, but in this scenario the challenge facing carriers in managing capacity would increase exponentially,” she added. <h3>Conservative capacity cuts </h3>The order book is currently at 9.3 million TEUs, or 29% of the in-service container shipping fleet, according to Sea-web, a sister company of the Journal of Commerce. Just over 1.2 million TEUs of vessels above 14,501 TEUs are expected to be delivered this year, mostly for Asia-Europe, while just 91,000 TEUs will be scrapped. Carriers are blanking sailings in an attempt to slow the rate decline but remain surprisingly conservative in their capacity withdrawals. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="eebb48eb-ad03-4e0f-a647-67693692edb4"></dynamic-object></div>Asia-North Europe carriers will deploy 1.1 million TEUs in capacity in August while blanking 94,470 TEUs, down from the 120,000 TEUs blanked in July, data from visibility provider eeSea shows. Capacity available in September will drop to just over 1 million TEUs, with blank sailings of 42,601 TEUs. Destine Ozuygur, chief analyst at eeSea, said the persistent port congestion in Europe could be contributing to carriers announcing fewer blanks during August and September on Asia-North Europe. “Blanks last August accounted for about 13% of planned calls, and 15% of total planned calls in September, while this year it shapes up to 11% of planned calls in August and just 6% in September,” Ozuygur told the Journal of Commerce. C.H. Robinson advised Asia-Europe shippers in a recent market update to continue booking space three to four weeks ahead, as August capacity was expected to remain tight despite demand softening in some segments. “The combination of port congestion and deliberate capacity cuts favors advance planning over spot market strategies,” the forwarder noted. Schedule reliability data for the Asia-North Europe trade lane reveals the impact of the port bottlenecks. After reaching a 2025 high of 45% in May, on-time performance on the trade lane in July was 28%, according to eeSea. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The spot market on the Asia-Europe ocean trade continues to decline as carriers battle to overcome a growing capacity overhang despite reports of solid demand through the summer and ongoing port congestion in Europe. While carriers have responded by adjusting schedules and blanking sailings on routes to both North Europe and the Mediterranean, pulling the capacity management levers has not yet been able to slow the steadily falling rates. Hapag-Lloyd CEO Rolf Habben Jansen told analysts during a first-half earnings call Thursday that bookings on Asia-Europe remain “robust.” And although rates were falling, he described that as normal for this time of year. “Sometimes the peak season ends a little bit early, and right now it looks like we won’t see a strong peak running up to the end of September,” the CEO said. “Volumes into Europe have been pretty steady, and bookings are still robust, but we now need to see what happens in the coming couple of weeks.” Asia to North Europe spot rates of $2,700 per FEU this week are half the level recorded at the beginning of January and have fallen 15% in the past two months, according to Platts, a sister company of the Journal of Commerce within S&P Global. Asia-Mediterranean rates have been on an even more dramatic slide, falling 44% in the past two months to this week’s price of $2,600/FEU, also a decline of 50% compared with the first week of January. “Carriers face an immense challenge in preventing freight rates from falling further against the backdrop of significant overcapacity in the global fleet,” Emily Stausbøll, senior analyst at rate benchmarking platform Xeneta, noted in a recent market update. “It is unlikely the Red Sea will open up to container shipping at large during 2025, but in this scenario the challenge facing carriers in managing capacity would increase exponentially,” she added. Conservative capacity cuts The order book is currently at 9.3 million TEUs, or 29% of the in-service container shipping fleet, according to Sea-web, a sister company of the Journal of Commerce. Just over 1.2 million TEUs of vessels above 14,501 TEUs are expected to be delivered this year, mostly for Asia-Europe, while just 91,000 TEUs will be scrapped. Carriers are blanking sailings in an attempt to slow the rate decline but remain surprisingly conservative in their capacity withdrawals. Asia-North Europe carriers will deploy 1.1 million TEUs in capacity in August while blanking 94,470 TEUs, down from the 120,000 TEUs blanked in July, data from visibility provider eeSea shows. Capacity available in September will drop to just over 1 million TEUs, with blank sailings of 42,601 TEUs. Destine Ozuygur, chief analyst at eeSea, said the persistent port congestion in Europe could be contributing to carriers announcing fewer blanks during August and September on Asia-North Europe. “Blanks last August accounted for about 13% of planned calls, and 15% of total planned calls in September, while this year it shapes up to 11% of planned calls in August and just 6% in September,” Ozuygur told the Journal of Commerce. C.H. Robinson advised Asia-Europe shippers in a recent market update to continue booking space three to four weeks ahead, as August capacity was expected to remain tight despite demand softening in some segments. “The combination of port congestion and deliberate capacity cuts favors advance planning over spot market strategies,” the forwarder noted. Schedule reliability data for the Asia-North Europe trade lane reveals the impact of the port bottlenecks. After reaching a 2025 high of 45% in May, on-time performance on the trade lane in July was 28%, according to eeSea. Contact Greg Knowler at greg.knowler@spglobal.com .

Dodd Fiori, ex-NYK North America executive, dead at 82

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