<div class="phx-topic abstract-wrapper">A new service from Green Tide Logistics will connect Veracruz to Philadelphia in five to six days via truck and multi-purpose vessels capable of handling 1,200 to 1,700 TEUs. </div>

A new service from Green Tide Logistics will connect Veracruz to Philadelphia in five to six days via truck and multi-purpose vessels capable of handling 1,200 to 1,700 TEUs.

Feature image

<div class="phx-topic">A Mexico City-based logistics company will launch a twice-monthly combined ocean-trucking service between Mexico’s Gulf Coast and the US East Coast in late July, offering shippers a way to avoid cross-border surface delays and <a href="https://www.joc.com/article/congress-makes-fresh-attempt-to-target-cargo-theft-in-us-5982118">security concerns</a>. The service by Green Tide Logistics will connect Veracruz to Philadelphia in five to six days via truck and multi-purpose vessels (MPVs) capable of handling 1,200 to 1,700 TEUs. Via truck only, the route typically takes up to 10 days. Green Tide CEO Hans Schriwer said the service will start July 28 with a single time-chartered MPV; the company has plans to expand to a weekly service using two vessels in the fourth quarter. “There’s huge potential in terms of steering stuff away from nearly all truck, to a combination of truck and ocean,” Schriwer told the Journal of Commerce. “With nearshoring, we felt that the timing now was appropriate to push this through.” The service will handle inland Mexico via truck and then move cargo out of Tuxpan and Coatzacoalcos via ocean to Philadelphia. Once in the US, Schriwer said customers can choose truck or rail to get the shipment to its destination. The Green Tide offering is the latest service aimed at tapping the shifting US-Mexico ocean trade — which represents less than half a percent of total US ocean imports — even though Mexico-to-US ocean volumes have shrunk considerably since 2019. Most recently, US-based ocean carrier Crowley started a three-day ocean service from Tuxpan to Gulfport, Mississippi, in May. That came on the heels of another <a href="https://www.joc.com/article/crowley-cn-strike-mexico-intermodal-deal-through-port-of-mobile-5220379">multimodal Mexico-US Crowley service</a> launched in 2023. <h3>Serving a niche market </h3>The Green Tide vessels will move forty-foot-equivalent units, twenty-foot equivalent units, 53-foot containers, refrigerated containers and bulk options, Schriwer said. According to PIERS, a sister company of the Journal of Commerce within S&amp;P Global, the top commodities moved via ocean on the lane so far this year have been beer, liqueurs, watermelons, ethyl alcohol and coffee. Mexico shipped 2,749 TEUs via ocean into the East Coast of North America (ECNA) in May, according to the most recent PIERS data available. That marked a 26% month-over-month increase but a 29% reduction on the year. Overall, the ocean trade has shrunk 51% since May 2019, when ECNA received 5,619 TEUs from Mexico. Despite the small market, Schriwer said there is growing demand for the Mexico-US service. According to the United States Trade Representative, the US imported almost $506 billion worth of cargo from Mexico last year, up 6.4% from 2023 — mostly via truck. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

A Mexico City-based logistics company will launch a twice-monthly combined ocean-trucking service between Mexico’s Gulf Coast and the US East Coast in late July, offering shippers a way to avoid cross-border surface delays and security concerns . The service by Green Tide Logistics will connect Veracruz to Philadelphia in five to six days via truck and multi-purpose vessels (MPVs) capable of handling 1,200 to 1,700 TEUs. Via truck only, the route typically takes up to 10 days. Green Tide CEO Hans Schriwer said the service will start July 28 with a single time-chartered MPV; the company has plans to expand to a weekly service using two vessels in the fourth quarter. “There’s huge potential in terms of steering stuff away from nearly all truck, to a combination of truck and ocean,” Schriwer told the Journal of Commerce. “With nearshoring, we felt that the timing now was appropriate to push this through.” The service will handle inland Mexico via truck and then move cargo out of Tuxpan and Coatzacoalcos via ocean to Philadelphia. Once in the US, Schriwer said customers can choose truck or rail to get the shipment to its destination. The Green Tide offering is the latest service aimed at tapping the shifting US-Mexico ocean trade — which represents less than half a percent of total US ocean imports — even though Mexico-to-US ocean volumes have shrunk considerably since 2019. Most recently, US-based ocean carrier Crowley started a three-day ocean service from Tuxpan to Gulfport, Mississippi, in May. That came on the heels of another multimodal Mexico-US Crowley service launched in 2023. Serving a niche market The Green Tide vessels will move forty-foot-equivalent units, twenty-foot equivalent units, 53-foot containers, refrigerated containers and bulk options, Schriwer said. According to PIERS, a sister company of the Journal of Commerce within S&P Global, the top commodities moved via ocean on the lane so far this year have been beer, liqueurs, watermelons, ethyl alcohol and coffee. Mexico shipped 2,749 TEUs via ocean into the East Coast of North America (ECNA) in May, according to the most recent PIERS data available. That marked a 26% month-over-month increase but a 29% reduction on the year. Overall, the ocean trade has shrunk 51% since May 2019, when ECNA received 5,619 TEUs from Mexico. Despite the small market, Schriwer said there is growing demand for the Mexico-US service. According to the United States Trade Representative, the US imported almost $506 billion worth of cargo from Mexico last year, up 6.4% from 2023 — mostly via truck. Contact Laura Robb at laura.robb@spglobal.com . 

Maritime

Container lines

Forwarding

Container Shipping News

Mexico-US ocean market expands amid growing nearshoring interest

<div class="phx-topic abstract-wrapper">The digital solution will be available for US imports this week and is set to roll out globally in August.</div>

The digital solution will be available for US imports this week and is set to roll out globally in August.

<div class="phx-topic">Maersk’s six million customs declarations around the world and commercial data from across its network are being used to power a new centralized AI-powered approach to customs and tariff management that will launch this week. The “Maersk Trade &amp; Tariff Studio” will be available from June 28 for cargo imported into the US with a global rollout scheduled for August, said Lars Karlsson, the carrier’s global head of trade and customs consulting. “Today’s environment is defined by unpredictability, with newly imposed and suddenly postponed tariffs creating what many of our customers describe as ‘tariff chaos,’” he told the Journal of Commerce Wednesday. While Karlsson acknowledged the wave of development in AI-powered trade tools that are becoming available from many sources, he said the need for scale in this area should not be underestimated. “The problem is how you train these new facilities for an area like trade,” the Maersk executive said. “You can create the algorithm for AI, but if it’s not using vast amounts of real and verified, qualified trade data, it doesn’t learn as fast. If you have six million custom decorations around the world in all territories like Maersk, that gives us an advantage to train our AI models much quicker than others.” A host of companies are piling into this arena. In the past six months, AI-focused <a href="https://www.joc.com/article/ai-continues-its-advance-across-truckload-fleets-drayage-6004118">logistics technology startups Optimal Dynamics</a>, Augment, FreightHero, Freightmate AI, Vooma and HappyRobot have all landed venture funding rounds. And virtually every <a href="https://www.joc.com/article/incumbents-upstarts-strive-for-lead-in-agentic-ai-arms-race-5943100">established logistics software vendor</a> or tech-focused intermediary, including <a href="https://www.joc.com/article/next-phase-of-digital-forwarding-on-collision-course-with-ai-revolution-5952015">Flexport</a>, Shipwell, PortPro, FourKites and project44, has marketed itself as having agentic tools that make its products more usable. <h3>Decentralized approach is unsustainable </h3>Karlsson noted that global companies relied on 30 or 40 different local customs brokers based in as many ports or countries, resulting in fragmented data, limited visibility and unnecessarily paid duties. “This decentralized approach is increasingly unsustainable in a world where tariff levels are not only higher but also much more volatile,” he said. “We know from studies around the world by various research institutes that companies were, on average, overpaying 5% to 6% in customs duties even before the ‘Liberation Day’ tariff announcements.” Maersk data shows that 20% of shipment delays are caused by poor customs preparation, and only 50% to 55% of trade that is eligible for existing Free Trade Agreements (FTAs) actually use the respective FTAs. Karlsson said although more than 650 FTAs exist, they are complex, and companies often don’t have the resources to fully understand the application of details at origin and destination, leaving significant savings untapped. <h3>Providing a global view </h3>Karlsson outlined the processes driving Maersk’s new AI platform. It combines AI-powered tariff engineering and optimization, ensuring the correct application of over 6,000 product codes and 20,000-plus sub-codes. “The 6,000 harmonized product codes that regulate the tariffs are all published by the World Customs Organization, taken into national customs administrations and applied to the specific code in that country,” Karlsson said. While the tariff books are accessible to the public, a company will have a broker in each country working with the local tariffs only, while Maersk’s AI tool has a global view of tariffs. Maersk Trade &amp; Tariff Studio offers upstream compliance risk screening that tackles delays, detentions and penalties, and real time updates from data partners, as well as Maersk’s network of 2,700 customs experts across the globe, all feeding tariff and regulation changes into a unified system. On top of coping with tariffs, another challenge for companies is compliance with a growing number of complex regulations, from product safety and labor standards to upcoming environmental mandates such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and deforestation regulations. Non-compliance can result in significant fines and market bans. “We scan for regulations, including sanctions, as early as possible in the supply chain to avoid customers ending up at the border being detained, delayed or penalized for non-compliance,” Karlsson told the Journal of Commerce. “Customs declaration is one of the most complex areas in global logistics,” he said. “But if done right, companies will be saving money, saving problems and sleeping better at night.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Maersk’s six million customs declarations around the world and commercial data from across its network are being used to power a new centralized AI-powered approach to customs and tariff management that will launch this week. The “Maersk Trade & Tariff Studio” will be available from June 28 for cargo imported into the US with a global rollout scheduled for August, said Lars Karlsson, the carrier’s global head of trade and customs consulting. “Today’s environment is defined by unpredictability, with newly imposed and suddenly postponed tariffs creating what many of our customers describe as ‘tariff chaos,’” he told the Journal of Commerce Wednesday. While Karlsson acknowledged the wave of development in AI-powered trade tools that are becoming available from many sources, he said the need for scale in this area should not be underestimated. “The problem is how you train these new facilities for an area like trade,” the Maersk executive said. “You can create the algorithm for AI, but if it’s not using vast amounts of real and verified, qualified trade data, it doesn’t learn as fast. If you have six million custom decorations around the world in all territories like Maersk, that gives us an advantage to train our AI models much quicker than others.” A host of companies are piling into this arena. In the past six months, AI-focused logistics technology startups Optimal Dynamics , Augment, FreightHero, Freightmate AI, Vooma and HappyRobot have all landed venture funding rounds. And virtually every established logistics software vendor or tech-focused intermediary, including Flexport , Shipwell, PortPro, FourKites and project44, has marketed itself as having agentic tools that make its products more usable. Decentralized approach is unsustainable Karlsson noted that global companies relied on 30 or 40 different local customs brokers based in as many ports or countries, resulting in fragmented data, limited visibility and unnecessarily paid duties. “This decentralized approach is increasingly unsustainable in a world where tariff levels are not only higher but also much more volatile,” he said. “We know from studies around the world by various research institutes that companies were, on average, overpaying 5% to 6% in customs duties even before the ‘Liberation Day’ tariff announcements.” Maersk data shows that 20% of shipment delays are caused by poor customs preparation, and only 50% to 55% of trade that is eligible for existing Free Trade Agreements (FTAs) actually use the respective FTAs. Karlsson said although more than 650 FTAs exist, they are complex, and companies often don’t have the resources to fully understand the application of details at origin and destination, leaving significant savings untapped. Providing a global view Karlsson outlined the processes driving Maersk’s new AI platform. It combines AI-powered tariff engineering and optimization, ensuring the correct application of over 6,000 product codes and 20,000-plus sub-codes. “The 6,000 harmonized product codes that regulate the tariffs are all published by the World Customs Organization, taken into national customs administrations and applied to the specific code in that country,” Karlsson said. While the tariff books are accessible to the public, a company will have a broker in each country working with the local tariffs only, while Maersk’s AI tool has a global view of tariffs. Maersk Trade & Tariff Studio offers upstream compliance risk screening that tackles delays, detentions and penalties, and real time updates from data partners, as well as Maersk’s network of 2,700 customs experts across the globe, all feeding tariff and regulation changes into a unified system. On top of coping with tariffs, another challenge for companies is compliance with a growing number of complex regulations, from product safety and labor standards to upcoming environmental mandates such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and deforestation regulations. Non-compliance can result in significant fines and market bans. “We scan for regulations, including sanctions, as early as possible in the supply chain to avoid customers ending up at the border being detained, delayed or penalized for non-compliance,” Karlsson told the Journal of Commerce. “Customs declaration is one of the most complex areas in global logistics,” he said. “But if done right, companies will be saving money, saving problems and sleeping better at night.” Contact Greg Knowler at greg.knowler@spglobal.com .

Transport, Trade and Regulation News

Logistics Technology News

Maersk launches AI customs tool to tackle rising regulatory chaos

<div class="phx-topic abstract-wrapper">Peak shipping season began early on both trade lanes, but the advancing of US orders from China will hit trans-Pacific demand in the second half of the year.</div>

Peak shipping season began early on both trade lanes, but the advancing of US orders from China will hit trans-Pacific demand in the second half of the year.

<div class="phx-topic">China-US trade in the second half of 2025 will be characterized by sharply falling rates and volume as frontloading momentum peters out and shippers sit with bloated inventories, while the demand outlook for Asia-Europe is far brighter, shipping analysts say. Just two weeks remain before the 90-day pause on global tariffs by the US ends on July 9, with a similar pause on China tariffs expiring Aug. 14. Although the outcome of Washington’s negotiations with its trading partners remains uncertain, declining demand on the trans-Pacific is expected whatever the result of talks. “Demand is expected to drop significantly, even if lower tariffs continue after the 90-day pause,” said Peter Sand, chief analyst at rate benchmarking platform Xeneta. “Shippers have been frontloading imports throughout 2024 and early 2025 so inventories will be brimming once the current cargo rush is over.” Ports along the US West Coast are due to experience a short-lived cargo surge over the next few weeks, which may slow the ongoing decline in spot rates in the eastbound trans-Pacific. The rate from Asia to the West Coast as of Tuesday was $2,800 per FEU, down 13% on the week and 54% lower than the recent high of $6,040 per FEU on June 6, according to Platts, a Journal of Commerce sister company within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="bea6613f-87e3-42b2-84e2-aa2fd6f34f8f"></dynamic-object></div>Niels Rasmussen, chief shipping analyst at Bimco, said when the 90-day pause on tariffs ends, US importers will turn to the inventories they built up through frontloading in the first half of the year. “We expect that US import volume growth will suffer under the increased import tariffs and weaker economic growth,” Rasmussen noted in Bimco’s latest container shipping outlook released Wednesday. “We therefore estimate that the year-to-date frontloading of cargo will result in an equal downturn in imports during the second half of 2025,” he added. “In fact, we expect the downturn to be even more pronounced as the 55% tariff on Chinese goods gets implemented and the reciprocal tariff increases announced in April are implemented following the 90-day delay.” The import tariff for China went as high as 145% but was later lowered to 30% for the 90-day period ending Aug. 14. Last week, President Donald Trump wrote on his social media platform that an agreement had been reached with China that will set the tariff applied on Chinese imports to 55%, although that has yet to be officially confirmed. A trade agreement has been reached between the US and UK that will lower the general tariff level for imports from the UK to 10%. And although negotiations are continuing with the European Union, it is likely the EU will face a 10% baseline tariff on all its US exports. Bimco has adjusted its 2025 volume growth forecast for the European and Mediterranean region upward from 3.5% to 6% to reflect the stronger-than-expected year-to-date volumes. “Volume to the region grew 7.3% during the first four months of the year and economic conditions are improving with lower inflation, lower interest rates, lower unemployment than before COVID and a stronger euro all contributing to a brighter outlook,” Rasmussen said. “In the EU, consumers appear significantly better off as retail volumes have seen robust growth compared to a very weak second half of 2024, and consumer confidence remains mostly stable,” he added. <h3>Rates flatten on Asia-North Europe </h3>The peak season on Asia-Europe has begun and spot rates of $2,842 per FEU are up 49% since May 31, according to Xeneta. Rates have flattened out following the June freight-all-kinds (FAK) increases, but ocean carriers are planning to significantly reduce the deployed capacity on Asia-North Europe in August. If demand remains strong, rates are sure to rise. Data from visibility provider eeSea shows that the expected capacity on Asia-North Europe will fall by 90,000 TEUs in August from July, with blank capacity up 25% to 105,000 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="6a5146cf-79d1-41fa-85fb-c1916fc625ac"></dynamic-object></div>Rasmussen noted that the conflict between Israel and Iran may have further delayed when ships will return to normal Red Sea and Suez Canal routings, and the Bimco outlook assumes no change in the diversions around southern Africa. When ships do return to Suez transits, Bimco is forecasting a 10% reduction in ship demand because of the shorter sailing distances. S&amp;P Global Market Intelligence has not recorded a Houthi militant attack on commercial shipping in the Red Sea since Dec. 10, 2024. While an apparent ceasefire was agreed to between the Houthis and the US in May, the US Department of Defense says the USS Harry S. Truman aircraft carrier strike group intercepted approximately 160 Houthi drone and missile attacks over its five-month deployment in the Red Sea that ended in May, an indication of the resilience of Houthi attack capabilities. “Houthi attacks on US-affiliated shipping are likely to resume in the Red Sea and Gulf of Aden at volumes probably not exceeding previous attacks and maintaining a severe risk to all vessels in transit due to uncertainties around Houthi targeting selection,” Jack Kennedy, head of Middle East and North Africa country risk at S&amp;P Global Market Intelligence, wrote in a report this week. S&amp;P Global is the parent company of the Journal of Commerce. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

China-US trade in the second half of 2025 will be characterized by sharply falling rates and volume as frontloading momentum peters out and shippers sit with bloated inventories, while the demand outlook for Asia-Europe is far brighter, shipping analysts say. Just two weeks remain before the 90-day pause on global tariffs by the US ends on July 9, with a similar pause on China tariffs expiring Aug. 14. Although the outcome of Washington’s negotiations with its trading partners remains uncertain, declining demand on the trans-Pacific is expected whatever the result of talks. “Demand is expected to drop significantly, even if lower tariffs continue after the 90-day pause,” said Peter Sand, chief analyst at rate benchmarking platform Xeneta. “Shippers have been frontloading imports throughout 2024 and early 2025 so inventories will be brimming once the current cargo rush is over.” Ports along the US West Coast are due to experience a short-lived cargo surge over the next few weeks, which may slow the ongoing decline in spot rates in the eastbound trans-Pacific. The rate from Asia to the West Coast as of Tuesday was $2,800 per FEU, down 13% on the week and 54% lower than the recent high of $6,040 per FEU on June 6, according to Platts, a Journal of Commerce sister company within S&P Global. Niels Rasmussen, chief shipping analyst at Bimco, said when the 90-day pause on tariffs ends, US importers will turn to the inventories they built up through frontloading in the first half of the year. “We expect that US import volume growth will suffer under the increased import tariffs and weaker economic growth,” Rasmussen noted in Bimco’s latest container shipping outlook released Wednesday. “We therefore estimate that the year-to-date frontloading of cargo will result in an equal downturn in imports during the second half of 2025,” he added. “In fact, we expect the downturn to be even more pronounced as the 55% tariff on Chinese goods gets implemented and the reciprocal tariff increases announced in April are implemented following the 90-day delay.” The import tariff for China went as high as 145% but was later lowered to 30% for the 90-day period ending Aug. 14. Last week, President Donald Trump wrote on his social media platform that an agreement had been reached with China that will set the tariff applied on Chinese imports to 55%, although that has yet to be officially confirmed. A trade agreement has been reached between the US and UK that will lower the general tariff level for imports from the UK to 10%. And although negotiations are continuing with the European Union, it is likely the EU will face a 10% baseline tariff on all its US exports. Bimco has adjusted its 2025 volume growth forecast for the European and Mediterranean region upward from 3.5% to 6% to reflect the stronger-than-expected year-to-date volumes. “Volume to the region grew 7.3% during the first four months of the year and economic conditions are improving with lower inflation, lower interest rates, lower unemployment than before COVID and a stronger euro all contributing to a brighter outlook,” Rasmussen said. “In the EU, consumers appear significantly better off as retail volumes have seen robust growth compared to a very weak second half of 2024, and consumer confidence remains mostly stable,” he added. Rates flatten on Asia-North Europe The peak season on Asia-Europe has begun and spot rates of $2,842 per FEU are up 49% since May 31, according to Xeneta. Rates have flattened out following the June freight-all-kinds (FAK) increases, but ocean carriers are planning to significantly reduce the deployed capacity on Asia-North Europe in August. If demand remains strong, rates are sure to rise. Data from visibility provider eeSea shows that the expected capacity on Asia-North Europe will fall by 90,000 TEUs in August from July, with blank capacity up 25% to 105,000 TEUs. Rasmussen noted that the conflict between Israel and Iran may have further delayed when ships will return to normal Red Sea and Suez Canal routings, and the Bimco outlook assumes no change in the diversions around southern Africa. When ships do return to Suez transits, Bimco is forecasting a 10% reduction in ship demand because of the shorter sailing distances. S&P Global Market Intelligence has not recorded a Houthi militant attack on commercial shipping in the Red Sea since Dec. 10, 2024. While an apparent ceasefire was agreed to between the Houthis and the US in May, the US Department of Defense says the USS Harry S. Truman aircraft carrier strike group intercepted approximately 160 Houthi drone and missile attacks over its five-month deployment in the Red Sea that ended in May, an indication of the resilience of Houthi attack capabilities. “Houthi attacks on US-affiliated shipping are likely to resume in the Red Sea and Gulf of Aden at volumes probably not exceeding previous attacks and maintaining a severe risk to all vessels in transit due to uncertainties around Houthi targeting selection,” Jack Kennedy, head of Middle East and North Africa country risk at S&P Global Market Intelligence, wrote in a report this week. S&P Global is the parent company of the Journal of Commerce. Contact Greg Knowler at greg.knowler@spglobal.com .

Asia-Europe

Trans-Pacific

Trans-Pacific sailing into slowdown; Asia-Europe outlook brightens: analysts

<div class="phx-topic abstract-wrapper">In a statement posted on the FMC’s website, Sola said his last day at the agency would be June 30 and did not give a reason for his departure.</div>

In a statement posted on the FMC’s website, Sola said his last day at the agency would be June 30 and did not give a reason for his departure.

<div class="phx-topic">Chairman Louis Sola announced Tuesday he is leaving the US Federal Maritime Commission (FMC) a mere five months after being <a href="https://www.joc.com/article/trump-appoints-louis-sola-to-chairmans-slot-at-fmc-5926442">appointed to lead the agency</a> responsible for regulating ocean trade to and from US ports. In a statement posted on the FMC’s website, Sola said his last day at the agency will be June 30. He did not give a reason for his departure. “I have had the privilege of helping safeguard the integrity of the US maritime industry, bringing greater transparency to port operations, and overseeing a supply chain that moves more than $5 trillion in goods annually,” Sola said in the statement. Sola, appointed to the commission in 2018 during President Donald Trump’s first term, pointed to work he did as a commissioner during the pandemic to resolve supply chain-related disruptions, as well as a recent investigation into flags of convenience, which resulted in calls for the deflagging of more than 140 sanctioned vessels. On Jan. 20, Trump elevated Sola to replace previous FMC Chairman Daniel Maffei, with a mandate to support initiatives around balanced trade and an emphasis on enhancing trade to and from Latin America. Early in his brief tenure as chairman, Sola was outspoken about whether the Panama Canal was a <a href="https://www.joc.com/article/fmc-chair-questions-level-playing-field-in-panama-canal-operations-5932469">“level playing field”</a> for US shippers due to Chinese operational involvement in ports on both ends of the canal. He also was leading an investigation into whether global chokepoints, primarily major canals, were hurting US maritime transportation interests. Sola formerly served on the Florida Board of Pilots Commissioners and as CEO of a ship and yacht brokerage before being nominated to the FMC. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Chairman Louis Sola announced Tuesday he is leaving the US Federal Maritime Commission (FMC) a mere five months after being appointed to lead the agency responsible for regulating ocean trade to and from US ports. In a statement posted on the FMC’s website, Sola said his last day at the agency will be June 30. He did not give a reason for his departure. “I have had the privilege of helping safeguard the integrity of the US maritime industry, bringing greater transparency to port operations, and overseeing a supply chain that moves more than $5 trillion in goods annually,” Sola said in the statement. Sola, appointed to the commission in 2018 during President Donald Trump’s first term, pointed to work he did as a commissioner during the pandemic to resolve supply chain-related disruptions, as well as a recent investigation into flags of convenience, which resulted in calls for the deflagging of more than 140 sanctioned vessels. On Jan. 20, Trump elevated Sola to replace previous FMC Chairman Daniel Maffei, with a mandate to support initiatives around balanced trade and an emphasis on enhancing trade to and from Latin America. Early in his brief tenure as chairman, Sola was outspoken about whether the Panama Canal was a “level playing field” for US shippers due to Chinese operational involvement in ports on both ends of the canal. He also was leading an investigation into whether global chokepoints, primarily major canals, were hurting US maritime transportation interests. Sola formerly served on the Florida Board of Pilots Commissioners and as CEO of a ship and yacht brokerage before being nominated to the FMC. Contact Eric Johnson at eric.johnson@spglobal.com .

Supply chain

FMC’s Sola to leave agency months after being elevated to chairman’s slot

<div class="phx-topic abstract-wrapper">The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June.</div>

The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June.

<div class="phx-topic">Ports along the US West Coast are due to experience a short-lived cargo surge over the next few weeks as importers rush to bring goods into the country ahead of the expiry of temporary tariff relief implemented by the Trump administration. The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June. Kip Louttit, executive director of the Marine Exchange of Southern California, told the Journal of Commerce that vessel arrivals scheduled for the ports of Los Angeles and Long Beach in the coming weeks “are the highest container ships on-the-way levels since January 2025 and July and September 2024.” According to the ports’ websites, Los Angeles projects that imports this week will total 138,519 TEUs before dipping to 124,713 TEUs next week and 101,003 TEUs for the week of July 6. Long Beach is forecasting its imports will total 84,109 TEUs this week before jumping to 125,286 TEUs next week and 116,947 TEUs the week of July 6. Further out, 93,797 TEUs are expected for the week of July 13, rising again to 114,073 TEUs for the week of July 20. The ports consider 100,000 TEUs or greater to be a strong week. In May, Los Angeles totaled 320,878 TEUs in imports, or approximately 71,000 TEUs a week, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Long Beach saw 296,348 TEUs, or about 66,000 TEUs weekly. The import boost expected over the next few weeks comes ahead of <a href="https://www.joc.com/article/trans-pacific-spot-rates-falling-as-tariff-linked-demand-surge-loses-steam-6027420">two key dates put in place by the White House — July 9 and Aug. 14</a>. The first is when a 90-day reprieve on higher tariffs against essentially all US trading partners expires; the second is when similar relief on imports from China ends. What will happen after those dates is unknown. The Northwest Seaport Alliance (NWSA) of Seattle and Tacoma, meanwhile, forecasts 55 vessel arrivals for June, 49 in July and 48 in August. That’s up from 46 in May. “Looking forward, numbers will likely increase for the last two weeks in June,” a spokesperson for the NWSA told the Journal of Commerce. “There are both fewer blank sailings and additional cargo that is anticipated for the second half of the month.” West Coast ports should not face any significant congestion issues handling the spike in imports in the coming few weeks given the weak month of May. <h3>Could rate decline pause? </h3>An increase in import volumes over the coming weeks could slow the ongoing decline in spot rates in the eastbound trans-Pacific. The rate from Asia to the West Coast as of Monday was $2,900 per FEU, down 10% on the week and 50% lower than the recent high of $6,040 per FEU on June 6, according to Platts, a Journal of Commerce sister company within S&amp;P Global. “The trans-Pac just seems to be such a moving target,” a forwarder in the Pacific Northwest told the Journal of Commerce. “We’re updating our rates almost daily.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8c13a3e-9f5a-412f-8741-adbf5e1a7779"></dynamic-object></div>The import surge on the West Coast also seems to be additional proof that the peak shipping season — normally August through October — has come early this year. The most recent <a href="https://www.joc.com/article/pause-on-tariffs-prompts-us-retailers-to-upgrade-summer-import-forecast-6022230">Global Port Tracker</a> published by the National Retail Federation and Hackett Associates forecasts that US imports will decline 8.1% in July, 14.7% in August, 21.8% in September and 19.8% in October compared with the same months in 2024. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

Ports along the US West Coast are due to experience a short-lived cargo surge over the next few weeks as importers rush to bring goods into the country ahead of the expiry of temporary tariff relief implemented by the Trump administration. The surge, however brief, will nonetheless be a welcome boost in business for the ports after a lackluster May and early June. Kip Louttit, executive director of the Marine Exchange of Southern California, told the Journal of Commerce that vessel arrivals scheduled for the ports of Los Angeles and Long Beach in the coming weeks “are the highest container ships on-the-way levels since January 2025 and July and September 2024.” According to the ports’ websites, Los Angeles projects that imports this week will total 138,519 TEUs before dipping to 124,713 TEUs next week and 101,003 TEUs for the week of July 6. Long Beach is forecasting its imports will total 84,109 TEUs this week before jumping to 125,286 TEUs next week and 116,947 TEUs the week of July 6. Further out, 93,797 TEUs are expected for the week of July 13, rising again to 114,073 TEUs for the week of July 20. The ports consider 100,000 TEUs or greater to be a strong week. In May, Los Angeles totaled 320,878 TEUs in imports, or approximately 71,000 TEUs a week, according to PIERS, a sister company of the Journal of Commerce within S&P Global. Long Beach saw 296,348 TEUs, or about 66,000 TEUs weekly. The import boost expected over the next few weeks comes ahead of two key dates put in place by the White House — July 9 and Aug. 14 . The first is when a 90-day reprieve on higher tariffs against essentially all US trading partners expires; the second is when similar relief on imports from China ends. What will happen after those dates is unknown. The Northwest Seaport Alliance (NWSA) of Seattle and Tacoma, meanwhile, forecasts 55 vessel arrivals for June, 49 in July and 48 in August. That’s up from 46 in May. “Looking forward, numbers will likely increase for the last two weeks in June,” a spokesperson for the NWSA told the Journal of Commerce. “There are both fewer blank sailings and additional cargo that is anticipated for the second half of the month.” West Coast ports should not face any significant congestion issues handling the spike in imports in the coming few weeks given the weak month of May. Could rate decline pause? An increase in import volumes over the coming weeks could slow the ongoing decline in spot rates in the eastbound trans-Pacific. The rate from Asia to the West Coast as of Monday was $2,900 per FEU, down 10% on the week and 50% lower than the recent high of $6,040 per FEU on June 6, according to Platts, a Journal of Commerce sister company within S&P Global. “The trans-Pac just seems to be such a moving target,” a forwarder in the Pacific Northwest told the Journal of Commerce. “We’re updating our rates almost daily.” The import surge on the West Coast also seems to be additional proof that the peak shipping season — normally August through October — has come early this year. The most recent Global Port Tracker published by the National Retail Federation and Hackett Associates forecasts that US imports will decline 8.1% in July, 14.7% in August, 21.8% in September and 19.8% in October compared with the same months in 2024. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Laura Robb at laura.robb@spglobal.com .

Port News

Trans-Atlantic

North American ports

Quick-hit, tariff-driven import surge on tap for US West Coast ports

<div class="phx-topic abstract-wrapper">CMA CGM, Maersk, MSC and Cosco are among mainliners charging add-ons on overweight containers.</div>

CMA CGM, Maersk, MSC and Cosco are among mainliners charging add-ons on overweight containers.

<div class="phx-topic">Indian cargo owners are facing a new wave of surcharges from major carriers on laden containers exceeding the standard weight threshold as westbound capacity suffers due to persistent schedule disruptions. CMA CGM, Maersk, Mediterranean Shipping Co. and Cosco Shipping are among mainliners charging add-ons on overweight containers, according to industry updates. Indian export trades hit by the surcharge wave include shipments to the US, the Mediterranean, Africa and South America. Local freight forwarders who spoke with the Journal of Commerce have confirmed that Maersk recently began levying a fee of $200 per TEU for shipments to the US weighing over 22 metric tons. Maersk now operates an enhanced “MECL” service on the India-US East Coast trade, with its space out of West India overbooked in recent weeks amid sailing cutbacks on competing networks. Similarly, CMA CGM from July 13 will implement an overweight surcharge of $600 per TEU for dry shipments over 18 metric tons moving to the East Coast of South America, complementing a $150-per-TEU fee it has already lined up for 27-ton-plus loads from West India to Mombasa (Kenya) and Dar es Salaam (Tanzania) beginning July 1. Forwarder sources noted that the lead carriers are trying to restrict heavy cargo loadings, especially stones, tiles and metal products, and instead target lightweight cargo to maximize capacity utilization through better vessel stowage planning. “Fewer 40-foot boxes in the market have also contributed to the overweight problem,” a sales executive at a European liner who didn’t want to be identified told the Journal of Commerce. “Our average container weight per TEU has been in the region of 19 metric tons to 19.5 metric tons, as against the 14-metric-ton limit, on many recent sailings.” A second forwarder said surcharges on heavier loads are now across the board, with the scale varying from carrier to carrier. “The carriers who are not charging [overweight fees] mostly do not accept manual cargo bookings,” the forwarder said. Shipper sources echoed that concern, noting that carriers typically try to push through additional surcharges as the industry heads into the traditional peak season. “We should expect more [surcharge] hits in the coming days,” a Mumbai-based yarn exporter said. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Indian cargo owners are facing a new wave of surcharges from major carriers on laden containers exceeding the standard weight threshold as westbound capacity suffers due to persistent schedule disruptions. CMA CGM, Maersk, Mediterranean Shipping Co. and Cosco Shipping are among mainliners charging add-ons on overweight containers, according to industry updates. Indian export trades hit by the surcharge wave include shipments to the US, the Mediterranean, Africa and South America. Local freight forwarders who spoke with the Journal of Commerce have confirmed that Maersk recently began levying a fee of $200 per TEU for shipments to the US weighing over 22 metric tons. Maersk now operates an enhanced “MECL” service on the India-US East Coast trade, with its space out of West India overbooked in recent weeks amid sailing cutbacks on competing networks. Similarly, CMA CGM from July 13 will implement an overweight surcharge of $600 per TEU for dry shipments over 18 metric tons moving to the East Coast of South America, complementing a $150-per-TEU fee it has already lined up for 27-ton-plus loads from West India to Mombasa (Kenya) and Dar es Salaam (Tanzania) beginning July 1. Forwarder sources noted that the lead carriers are trying to restrict heavy cargo loadings, especially stones, tiles and metal products, and instead target lightweight cargo to maximize capacity utilization through better vessel stowage planning. “Fewer 40-foot boxes in the market have also contributed to the overweight problem,” a sales executive at a European liner who didn’t want to be identified told the Journal of Commerce. “Our average container weight per TEU has been in the region of 19 metric tons to 19.5 metric tons, as against the 14-metric-ton limit, on many recent sailings.” A second forwarder said surcharges on heavier loads are now across the board, with the scale varying from carrier to carrier. “The carriers who are not charging [overweight fees] mostly do not accept manual cargo bookings,” the forwarder said. Shipper sources echoed that concern, noting that carriers typically try to push through additional surcharges as the industry heads into the traditional peak season. “We should expect more [surcharge] hits in the coming days,” a Mumbai-based yarn exporter said. Contact Bency Mathew at bencyvmathew@gmail.com .

Indian exporters face overweight box surcharges as carriers push scalability

<div class="phx-topic abstract-wrapper">As agricultural exports enter their traditional peak season, it is prudent to be proactive now — while there is still an empty container supply extant in North America. </div>

As agricultural exports enter their traditional peak season, it is prudent to be proactive now — while there is still an empty container supply extant in North America.

<div class="phx-topic">“Where Have All the Flowers Gone?” is a folk song written by American singer-songwriter Pete Seeger. Legend has it that he wrote it while on an airplane to play at Oberlin College, one of the few locations willing to defy the McCarthy hiring blacklist imposed on him. Subsequently, the song became a mainstay of the anti-war movement during the Vietnam War and has been covered by many artists and in many languages. The song utilizes the image of flowers and the cycle of life to depict the cyclical and destructive nature of war. And while I recognize that applying this metaphor to our industry’s cyclicality may be a step too far, I believe that the plaintive refrain, “Oh when will you/we ever learn; Oh, when will you/we ever learn?” certainly applies. In today’s transportation industry, there are very few of us that can remember the days of regulation when we struggled in an economy beset by stagflation. President Jimmy Carter then liberated our sector with deregulation. Because regulation — by design — was intended to ensure excess capacity, two decades of halcyon growth followed as this capacity was redeployed to productive applications. Along with globalization and outsourcing, logistics and supply chain management became industries in their own right, and intermodal was a key driver. However, about 25 years ago, the “free” capacity unleashed by deregulation had been consumed and growth needed to be supported by investment. Coincidentally, these changes took place against the aftermath of the 9/11 terrorist attack. A bipartisan blue-ribbon commission was established, and three years later, they released their report. The findings were extensive. The government was not prepared and did not know how to respond. Problems with intelligence collection, analysis, sharing across agencies, and a lack of coordination among federal agencies exacerbated the challenges. In fact, the whole structure represented a maze of siloed and disaggregated responsibilities. When I read the report, I was struck by the potential for a future commission assembled to write many of the same findings about the transportation network in our country. I actually wrote a white paper in 2004 claiming that it would be unnecessary to convene an investigation of the inevitable supply chain meltdown because it was already written. All that was necessary was to take the 9/11 report and replace “national security” with “supply chain.” <h3>COVID-19 drove changes </h3>Of course, our industry did nothing to address these structural shortcomings and muddled on until COVID-19 struck. At that time, it seemed that our entire industry adopted the “4C” excuse — everything was the fault of COVID, China, Congestion and Chassis. Everyone was surprised that such a terrible fate could befall our industry. Even worse, our industry seemed to be represented by our least qualified spokespeople and most of the media had no idea of basic facts. Somehow, we all survived that mess. Many of the problems impacted the entire network. The maelstrom of detention and demurrage bills gave rise to the Ocean Shipping Reform Act of 2022 (OSRA-22). It increased the authority of the Federal Maritime Commission (FMC) to promote the growth and development of US exports through an ocean transportation system that is competitive, efficient and economical. Beyond its mandate addressing complaints about detention and demurrage charges, OSRA-22 prohibits common ocean carriers, marine terminal operators or ocean transportation intermediaries from unreasonably refusing cargo space when available or resorting to other unfair or unjustly discriminatory methods. These protections were welcomed by the export community. However, we have to recognize that a complaint process after the fact may be insufficient to provide adequate protection if there is no effective remedy available. At times of high demand (and rates) for imports from Asia to North America, ocean carriers frequently evacuate all containers as soon as their import cargo is devanned. This moots the question of available space because there may be vessel space — but no empty containers.  As agricultural exports enter their traditional peak season, we believe that it is prudent to be proactive now, while there is still an empty container supply extant in North America. The Agriculture Transportation Coalition convenes June 16 for its annual meeting. I am sure Executive Director Peter Friedmann will have this high on the agenda; we do not want to be wondering where all the containers have gone. Contact Ted Prince at <a href="mailto:ted@tricitiesintermodal.com">ted@tricitiesintermodal.com</a>.</div>

“Where Have All the Flowers Gone?” is a folk song written by American singer-songwriter Pete Seeger. Legend has it that he wrote it while on an airplane to play at Oberlin College, one of the few locations willing to defy the McCarthy hiring blacklist imposed on him. Subsequently, the song became a mainstay of the anti-war movement during the Vietnam War and has been covered by many artists and in many languages. The song utilizes the image of flowers and the cycle of life to depict the cyclical and destructive nature of war. And while I recognize that applying this metaphor to our industry’s cyclicality may be a step too far, I believe that the plaintive refrain, “Oh when will you/we ever learn; Oh, when will you/we ever learn?” certainly applies. In today’s transportation industry, there are very few of us that can remember the days of regulation when we struggled in an economy beset by stagflation. President Jimmy Carter then liberated our sector with deregulation. Because regulation — by design — was intended to ensure excess capacity, two decades of halcyon growth followed as this capacity was redeployed to productive applications. Along with globalization and outsourcing, logistics and supply chain management became industries in their own right, and intermodal was a key driver. However, about 25 years ago, the “free” capacity unleashed by deregulation had been consumed and growth needed to be supported by investment. Coincidentally, these changes took place against the aftermath of the 9/11 terrorist attack. A bipartisan blue-ribbon commission was established, and three years later, they released their report. The findings were extensive. The government was not prepared and did not know how to respond. Problems with intelligence collection, analysis, sharing across agencies, and a lack of coordination among federal agencies exacerbated the challenges. In fact, the whole structure represented a maze of siloed and disaggregated responsibilities. When I read the report, I was struck by the potential for a future commission assembled to write many of the same findings about the transportation network in our country. I actually wrote a white paper in 2004 claiming that it would be unnecessary to convene an investigation of the inevitable supply chain meltdown because it was already written. All that was necessary was to take the 9/11 report and replace “national security” with “supply chain.” COVID-19 drove changes Of course, our industry did nothing to address these structural shortcomings and muddled on until COVID-19 struck. At that time, it seemed that our entire industry adopted the “4C” excuse — everything was the fault of COVID, China, Congestion and Chassis. Everyone was surprised that such a terrible fate could befall our industry. Even worse, our industry seemed to be represented by our least qualified spokespeople and most of the media had no idea of basic facts. Somehow, we all survived that mess. Many of the problems impacted the entire network. The maelstrom of detention and demurrage bills gave rise to the Ocean Shipping Reform Act of 2022 (OSRA-22). It increased the authority of the Federal Maritime Commission (FMC) to promote the growth and development of US exports through an ocean transportation system that is competitive, efficient and economical. Beyond its mandate addressing complaints about detention and demurrage charges, OSRA-22 prohibits common ocean carriers, marine terminal operators or ocean transportation intermediaries from unreasonably refusing cargo space when available or resorting to other unfair or unjustly discriminatory methods. These protections were welcomed by the export community. However, we have to recognize that a complaint process after the fact may be insufficient to provide adequate protection if there is no effective remedy available. At times of high demand (and rates) for imports from Asia to North America, ocean carriers frequently evacuate all containers as soon as their import cargo is devanned. This moots the question of available space because there may be vessel space — but no empty containers.  As agricultural exports enter their traditional peak season, we believe that it is prudent to be proactive now, while there is still an empty container supply extant in North America. The Agriculture Transportation Coalition convenes June 16 for its annual meeting. I am sure Executive Director Peter Friedmann will have this high on the agenda; we do not want to be wondering where all the containers have gone. Contact Ted Prince at ted@tricitiesintermodal.com .

Act now before we wonder where all the containers have gone

<div class="phx-topic abstract-wrapper">The Trump administration’s tariff policy is yet another milestone that has shaken the US economy over the past 60 years, writes Ted Prince. </div>

The Trump administration’s tariff policy is yet another milestone that has shaken the US economy over the past 60 years, writes Ted Prince.

<div class="phx-topic">Since the announcement of reciprocal tariffs on so-called “Liberation Day” last month, we have been bombarded by conflicting predictions of the possible benefits and disasters that may befall our country, our economy and our industry. What I find interesting is that the history of the past 60 years seems to have been forgotten. While there are many important dates, I will focus on four. <h3>Yanqui go home! </h3>I would start in April 1965, when President Lyndon Johnson deployed the Marines and 82nd Airborne to the Dominican Republic to quell a civil war that broke out after a military junta. While the intervention was intended to protect US nationals, mission creep led to the deployment of over 22,000 American troops. While the invasion successfully reinstalled a conservative government, it increased distrust of the US. At the same time, companies such as Hewlett Packard were rolling out a continuous pipeline of electronic innovations. Their intention was to near-shore manufacturing in Latin America; however, the prevalence of “Yanqui Go Home!” made them look elsewhere. Japan and then the “Four Tigers” (Singapore, Hong Kong, Taiwan and South Korea) became the factory sites instead. The Vietnam War had become the first containerized war, and plentiful equipment was available to load back to the US. While electronics required factories, much of the manufacturing was cottage industries. For example, importers of blue jeans were buying from hundreds of small vendors. Ocean carrier consolidators would send pickup trucks into the New Territories to pick up loose articles of clothing (some which no doubt had been made in China) for consolidation at their facilities adjacent to the Kwai Tsing container terminals. <h3>Voluntary restraint </h3>In May 1981, with the American auto industry mired in recession, Japanese car makers agreed to “voluntary export restraint,” which limited exports of passenger cars to the US. However, at the same time, they implemented a strategy of “transplants,” whereby cars were assembled in the US. Some might consider this an example of “reshoring;” however, it is not that simple. Initially, the plants were built in Japan, then disassembled, shipped to the US, and reassembled. Most of the parts (CKD: cars knocked down) came from Japan, so actual US content — other than labor — was minimal. Over time, suppliers proliferated along Interstates 65 and 75 to support these plants. However, many of these were also Japanese transplants. Some were joint ventures with US partners, but many were just US subsidiaries of Japanese manufacturers. Barry Bluestone and Bennett Harrison described this phenomenon in their 1982 work, “The Deindustrialization of America: Plant Closings, Community Abandonment, and the Dismantling of Basic Industry.” They pointed out the irony that the Japanese were successfully investing in US industrial sectors that scarcely a decade ago were said to be declining, uncompetitive, and suffering from deindustrialization. <h3>The Plaza Accord </h3>The Plaza Accord in September 1985 effectively devalued the dollar against other major currencies. Initially, the US trade deficit worsened, as imports rose in price with a devalued dollar. However, the devaluation made US exports cheaper for its trading partners to purchase, which grew the market in goods and services — which are unaccounted for in the current administration’s calculation. <h3>China and the WTO </h3>Finally, in 2001, China joined the World Trade Organization (WTO). What followed was a massive dislocation in trade as China built world-class factories and world-class ports to ship goods throughout the world. Some of those factories have since relocated to nations with cheaper labor. However, a whole ecosystem of suppliers has grown up that supports the manufacturing and assembly of sophisticated products. China’s development took over 30 years. It was no shortcut. It was also the result of extensive industrial policy similar to what Japan and the Four Tigers had done previously. Most importantly, these policies did not deviate for decades and supported a long-term strategy whereby investment could be made with confidence. Our current politics are such that it is impossible to invest in today’s doctrine because it may no longer be applicable by the time the factory opens in three to eight years. In the past 30 years, trade has increased dramatically as a share of gross domestic product (GDP). However, while most economists believe that this has been good for the economy, the general public’s outlook is less sanguine. In large part, this is because trade’s impacts can vary widely: localized changes in jobs (both gains and losses) and reduced prices of goods and services. Freight is inextricably linked to trade. It has transformed our industry. We will no doubt have a ringside seat to the policy that is evolving. Contact Ted Prince at <a href="mailto:ted@tricitiesintermodal.com">ted@tricitiesintermodal.com</a>. </div>

Since the announcement of reciprocal tariffs on so-called “Liberation Day” last month, we have been bombarded by conflicting predictions of the possible benefits and disasters that may befall our country, our economy and our industry. What I find interesting is that the history of the past 60 years seems to have been forgotten. While there are many important dates, I will focus on four. Yanqui go home! I would start in April 1965, when President Lyndon Johnson deployed the Marines and 82nd Airborne to the Dominican Republic to quell a civil war that broke out after a military junta. While the intervention was intended to protect US nationals, mission creep led to the deployment of over 22,000 American troops. While the invasion successfully reinstalled a conservative government, it increased distrust of the US. At the same time, companies such as Hewlett Packard were rolling out a continuous pipeline of electronic innovations. Their intention was to near-shore manufacturing in Latin America; however, the prevalence of “Yanqui Go Home!” made them look elsewhere. Japan and then the “Four Tigers” (Singapore, Hong Kong, Taiwan and South Korea) became the factory sites instead. The Vietnam War had become the first containerized war, and plentiful equipment was available to load back to the US. While electronics required factories, much of the manufacturing was cottage industries. For example, importers of blue jeans were buying from hundreds of small vendors. Ocean carrier consolidators would send pickup trucks into the New Territories to pick up loose articles of clothing (some which no doubt had been made in China) for consolidation at their facilities adjacent to the Kwai Tsing container terminals. Voluntary restraint In May 1981, with the American auto industry mired in recession, Japanese car makers agreed to “voluntary export restraint,” which limited exports of passenger cars to the US. However, at the same time, they implemented a strategy of “transplants,” whereby cars were assembled in the US. Some might consider this an example of “reshoring;” however, it is not that simple. Initially, the plants were built in Japan, then disassembled, shipped to the US, and reassembled. Most of the parts (CKD: cars knocked down) came from Japan, so actual US content — other than labor — was minimal. Over time, suppliers proliferated along Interstates 65 and 75 to support these plants. However, many of these were also Japanese transplants. Some were joint ventures with US partners, but many were just US subsidiaries of Japanese manufacturers. Barry Bluestone and Bennett Harrison described this phenomenon in their 1982 work, “The Deindustrialization of America: Plant Closings, Community Abandonment, and the Dismantling of Basic Industry.” They pointed out the irony that the Japanese were successfully investing in US industrial sectors that scarcely a decade ago were said to be declining, uncompetitive, and suffering from deindustrialization. The Plaza Accord The Plaza Accord in September 1985 effectively devalued the dollar against other major currencies. Initially, the US trade deficit worsened, as imports rose in price with a devalued dollar. However, the devaluation made US exports cheaper for its trading partners to purchase, which grew the market in goods and services — which are unaccounted for in the current administration’s calculation. China and the WTO Finally, in 2001, China joined the World Trade Organization (WTO). What followed was a massive dislocation in trade as China built world-class factories and world-class ports to ship goods throughout the world. Some of those factories have since relocated to nations with cheaper labor. However, a whole ecosystem of suppliers has grown up that supports the manufacturing and assembly of sophisticated products. China’s development took over 30 years. It was no shortcut. It was also the result of extensive industrial policy similar to what Japan and the Four Tigers had done previously. Most importantly, these policies did not deviate for decades and supported a long-term strategy whereby investment could be made with confidence. Our current politics are such that it is impossible to invest in today’s doctrine because it may no longer be applicable by the time the factory opens in three to eight years. In the past 30 years, trade has increased dramatically as a share of gross domestic product (GDP). However, while most economists believe that this has been good for the economy, the general public’s outlook is less sanguine. In large part, this is because trade’s impacts can vary widely: localized changes in jobs (both gains and losses) and reduced prices of goods and services. Freight is inextricably linked to trade. It has transformed our industry. We will no doubt have a ringside seat to the policy that is evolving. Contact Ted Prince at ted@tricitiesintermodal.com .

A history lesson while we watch current US trade policy unfold

Year-over-year % change

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 to Mediterranean container volume (PIERS)

PIERS US exports to Mediterranean (Monthly) (year-over-year-change) Gateway

<div class="phx-topic abstract-wrapper">A more than 30% one-week drop in rates from Asia to the US West Coast is showing that the import rush sparked by the temporary pause in higher US tariffs will apparently be short-lived.</div>

A more than 30% one-week drop in rates from Asia to the US West Coast is showing that the import rush sparked by the temporary pause in higher US tariffs will apparently be short-lived.

<div class="phx-topic">Spot rates in the eastbound trans-Pacific are in rapid retreat, a sign the import surge that came on the heels of the temporary pause in higher US tariffs won’t have the staying power many initially believed, market sources say. Rates to the West Coast were at $3,500 per FEU as of June 17, down 32% in just one week, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. East Coast rates of $6,500 were 11% lower on the week. Forwarders peg current rates from Asia to the West Coast in the low $3,000s per FEU, with East Coast rates in the low $6,000s per FEU. As recently as June 6, the West Coast rate was in the low $6,000s and the East Coast rate was in the low $7,000s, according to Platts. “It’s quite the turnaround,” said Robert Khachatryan, CEO of the forwarder Freight Right Global Logistics. “What’s driving this? [Declining] demand primarily.” Bookings at Asian load ports have dropped, Khachatryan said, even as carriers have injected more capacity into the eastbound trans-Pacific recently to <a href="https://www.joc.com/article/pause-on-tariffs-prompts-us-retailers-to-upgrade-summer-import-forecast-6022230">take advantage of the demand</a> that resulted from the Trump administration in mid-May pausing its proposed 145% tariffs on China for 90 days. A separate tariff pause on other trading partners ends July 9. But the demand sparked by those moves appears fleeting. “I think everybody was expecting that big boom to last a lot longer,” a forwarder told the Journal of Commerce. “It might be over.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8c13a3e-9f5a-412f-8741-adbf5e1a7779"></dynamic-object></div>Just how “over” is uncertain. While some carriers may believe there will be another surge in demand when the Trump administration finally decides the fate of the tariffs on China and other countries in July and August, forwarders don’t see that happening. “I don’t expect it to increase again,” a second forwarder said. “This is all speculation. Anything could happen, but the trend doesn’t show for that.” <h3>Has peak season begun? </h3>Also in the mix is peak shipping season, which in recent years has begun as early as June and ran through October. But in the year of tariffs, nothing is showing to be typical. Some market participants say the recent demand surge could be considered the start of an early peak season that still has room to run. A carrier executive told the Journal of Commerce he does not believe rates in the eastbound trans-Pacific are inevitably headed lower still in the coming weeks.“Shippers are in a ‘wait and see’ mode on tariffs and seeking clarity on Trump’s declaration of deal with China bringing tariffs to 55%, meaning there might be another [demand] surge,” the executive said.Until then, prices are undoubtedly softening. “Vessel-specific rates to the East Coast from some China ports are a lot lower [than indexes] — $5,500,” Khachatryan said. “I saw $2,700 [to the West Coast] out there,” said Jason Cook, CEO of the forwarder Ardent Global Logistics. Cook said an indicator of where rates in the trans-Pacific may be headed will come on July 1, when a number of carriers will apparently attempt to implement another general rate increase. “On July 1, they’ll try to do an increase,” he said. “They may try again in mid-month.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

Spot rates in the eastbound trans-Pacific are in rapid retreat, a sign the import surge that came on the heels of the temporary pause in higher US tariffs won’t have the staying power many initially believed, market sources say. Rates to the West Coast were at $3,500 per FEU as of June 17, down 32% in just one week, according to Platts, a sister company of the Journal of Commerce within S&P Global. East Coast rates of $6,500 were 11% lower on the week. Forwarders peg current rates from Asia to the West Coast in the low $3,000s per FEU, with East Coast rates in the low $6,000s per FEU. As recently as June 6, the West Coast rate was in the low $6,000s and the East Coast rate was in the low $7,000s, according to Platts. “It’s quite the turnaround,” said Robert Khachatryan, CEO of the forwarder Freight Right Global Logistics. “What’s driving this? [Declining] demand primarily.” Bookings at Asian load ports have dropped, Khachatryan said, even as carriers have injected more capacity into the eastbound trans-Pacific recently to take advantage of the demand that resulted from the Trump administration in mid-May pausing its proposed 145% tariffs on China for 90 days. A separate tariff pause on other trading partners ends July 9. But the demand sparked by those moves appears fleeting. “I think everybody was expecting that big boom to last a lot longer,” a forwarder told the Journal of Commerce. “It might be over.” Just how “over” is uncertain. While some carriers may believe there will be another surge in demand when the Trump administration finally decides the fate of the tariffs on China and other countries in July and August, forwarders don’t see that happening. “I don’t expect it to increase again,” a second forwarder said. “This is all speculation. Anything could happen, but the trend doesn’t show for that.” Has peak season begun? Also in the mix is peak shipping season, which in recent years has begun as early as June and ran through October. But in the year of tariffs, nothing is showing to be typical. Some market participants say the recent demand surge could be considered the start of an early peak season that still has room to run. A carrier executive told the Journal of Commerce he does not believe rates in the eastbound trans-Pacific are inevitably headed lower still in the coming weeks. “Shippers are in a ‘wait and see’ mode on tariffs and seeking clarity on Trump’s declaration of deal with China bringing tariffs to 55%, meaning there might be another [demand] surge,” the executive said. Until then, prices are undoubtedly softening. “Vessel-specific rates to the East Coast from some China ports are a lot lower [than indexes] — $5,500,” Khachatryan said. “I saw $2,700 [to the West Coast] out there,” said Jason Cook, CEO of the forwarder Ardent Global Logistics. Cook said an indicator of where rates in the trans-Pacific may be headed will come on July 1, when a number of carriers will apparently attempt to implement another general rate increase. “On July 1, they’ll try to do an increase,” he said. “They may try again in mid-month.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Laura Robb at laura.robb@spglobal.com .

International ports

Trans-Pacific spot rates falling as tariff-linked demand surge loses steam

<div class="phx-topic abstract-wrapper">The inability to predict the next move on tariffs is unsettling for cargo owners and their service providers, the CEO of the Association for Supply Chain Management tells the Journal of Commerce. </div>

The inability to predict the next move on tariffs is unsettling for cargo owners and their service providers, the CEO of the Association for Supply Chain Management tells the Journal of Commerce.

<div class="phx-topic">BRUSSELS — The US tariff whiplash is forcing those who manage supply chains to shrink planning horizons, increase inventory carrying costs and put strategic investment on hold, according to the CEO of the Association for Supply Chain Management. While the Trump administration pursues its so-called “reciprocal trade agenda,” Abe Eshkenazi said the inability to predict the next tariff move was unsettling for cargo owners and their service providers. “A lot of the strategic investments and a lot of the capital investments have been put on hold,” Eshkenazi told the Journal of Commerce in an interview this week at the CHAINge Europe supply chain conference. “It’s hard to convince a CEO to spend $2 billion on a new plant when he doesn’t know if you’re going to manufacture for local markets or for a global marketplace,” he added. “As a [beneficial cargo owner], this is going to be the life that you lead over the next few years.” Eshkenazi said planning horizons have shrunk because of the lack of visibility in ever-changing tariff-driven demand, especially on the trans-Pacific. He emphasized that the tariff disruption to global trade was not a supply and demand issue, which supply chains were well-suited to handle, but rather a pricing issue. “That is a big problem for us because it changes constantly,” he said. “How much is the tariff? When is it going to be applied? Is it consistent? We are accustomed to disruption, but more in the form of long-term issues, as opposed to something that’s on today, off tomorrow, or 20% now, then 50% or 100%.” A pause on higher tariffs on most of the US’ trading partners is in effect until July 9, while the pause on the 145% tariff on imports from China is due to expire Aug. 14. President Donald Trump wrote last week on his social media platform that a deal with Beijing will see US tariffs set at 55% for Chinese imports, up from 30%, while China’s tariffs on US goods remain at 10%. However, there has not yet been a formal deal signed between Beijing and Washington. <h3>Importers building inventory buffers </h3>Eshkenazi warned that cargo owners in the US were being forced to carry too much inventory as a risk management strategy, and that “can only last so long.” “You can’t continue to build up inventories or your CFO is going to have a conversation and ask why you are draining capital for stock just sitting there and nobody moving it,” he noted. Trade disruption caused by the US tariffs dominated discussions at the Brussels conference, with attendees expressing their frustration at managing cargo flows in such a fluid environment. “It has taken us almost three years to go through the additional inventory built up to cope with supply chain disruptions and we are now having to bring in buffer stocks again to try to manage the risk,” the supply chain director for a global shipper said. A US importer said if the intention of the Trump tariffs was to bring manufacturing back to the US, “no one would buy our products because they would be too expensive.” Other roundtable attendees highlighted the recent trans-Pacific rate environment where carriers were rolling out general rate increases every two weeks to take advantage of what had been heavy demand after tariffs on China were paused in May and importers rushed to get shipments on the water. But spot rates on the two main Asia-US trade lanes are now falling. The Asia-US West Coast rate this week of $3,500 per FEU is down 32% from the previous week, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Rates from Asia to the US East Coast fell 11% week over week to $6,500/FEU. <h3>Doubt, hesitancy in investment circles </h3>The uncertainty linked to tariffs has extended beyond supply chains and into financial markets, creating doubt and hesitancy in terms of investment. “Everyone is waiting to find out what the final rules of the road are so we can apply them,” Eshkenazi said. “In the short term, there’s a lot of ’wait and see,’ and in the long term we’re already seeing a hesitancy on investment in supply chain infrastructure as well as in securing capital. “That will be an extraordinary problem down the road, because the consumer is still going to want to buy,” he added. “The question is, ‘what does your market demand look like, and where do you serve it from?’” Eshkenazi noted that companies in the US were looking at diversifying both suppliers and manufacturing facilities, but much of the investment was on pause. “Companies are not developing plants that sit idle, or having staff sit idle at home waiting to be actuated,” he said. “No investment is going to be done in parallel activities just in case.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

BRUSSELS — The US tariff whiplash is forcing those who manage supply chains to shrink planning horizons, increase inventory carrying costs and put strategic investment on hold, according to the CEO of the Association for Supply Chain Management. While the Trump administration pursues its so-called “reciprocal trade agenda,” Abe Eshkenazi said the inability to predict the next tariff move was unsettling for cargo owners and their service providers. “A lot of the strategic investments and a lot of the capital investments have been put on hold,” Eshkenazi told the Journal of Commerce in an interview this week at the CHAINge Europe supply chain conference. “It’s hard to convince a CEO to spend $2 billion on a new plant when he doesn’t know if you’re going to manufacture for local markets or for a global marketplace,” he added. “As a [beneficial cargo owner], this is going to be the life that you lead over the next few years.” Eshkenazi said planning horizons have shrunk because of the lack of visibility in ever-changing tariff-driven demand, especially on the trans-Pacific. He emphasized that the tariff disruption to global trade was not a supply and demand issue, which supply chains were well-suited to handle, but rather a pricing issue. “That is a big problem for us because it changes constantly,” he said. “How much is the tariff? When is it going to be applied? Is it consistent? We are accustomed to disruption, but more in the form of long-term issues, as opposed to something that’s on today, off tomorrow, or 20% now, then 50% or 100%.” A pause on higher tariffs on most of the US’ trading partners is in effect until July 9, while the pause on the 145% tariff on imports from China is due to expire Aug. 14. President Donald Trump wrote last week on his social media platform that a deal with Beijing will see US tariffs set at 55% for Chinese imports, up from 30%, while China’s tariffs on US goods remain at 10%. However, there has not yet been a formal deal signed between Beijing and Washington. Importers building inventory buffers Eshkenazi warned that cargo owners in the US were being forced to carry too much inventory as a risk management strategy, and that “can only last so long.” “You can’t continue to build up inventories or your CFO is going to have a conversation and ask why you are draining capital for stock just sitting there and nobody moving it,” he noted. Trade disruption caused by the US tariffs dominated discussions at the Brussels conference, with attendees expressing their frustration at managing cargo flows in such a fluid environment. “It has taken us almost three years to go through the additional inventory built up to cope with supply chain disruptions and we are now having to bring in buffer stocks again to try to manage the risk,” the supply chain director for a global shipper said. A US importer said if the intention of the Trump tariffs was to bring manufacturing back to the US, “no one would buy our products because they would be too expensive.” Other roundtable attendees highlighted the recent trans-Pacific rate environment where carriers were rolling out general rate increases every two weeks to take advantage of what had been heavy demand after tariffs on China were paused in May and importers rushed to get shipments on the water. But spot rates on the two main Asia-US trade lanes are now falling. The Asia-US West Coast rate this week of $3,500 per FEU is down 32% from the previous week, according to Platts, a sister company of the Journal of Commerce within S&P Global. Rates from Asia to the US East Coast fell 11% week over week to $6,500/FEU. Doubt, hesitancy in investment circles The uncertainty linked to tariffs has extended beyond supply chains and into financial markets, creating doubt and hesitancy in terms of investment. “Everyone is waiting to find out what the final rules of the road are so we can apply them,” Eshkenazi said. “In the short term, there’s a lot of ’wait and see,’ and in the long term we’re already seeing a hesitancy on investment in supply chain infrastructure as well as in securing capital. “That will be an extraordinary problem down the road, because the consumer is still going to want to buy,” he added. “The question is, ‘what does your market demand look like, and where do you serve it from?’” Eshkenazi noted that companies in the US were looking at diversifying both suppliers and manufacturing facilities, but much of the investment was on pause. “Companies are not developing plants that sit idle, or having staff sit idle at home waiting to be actuated,” he said. “No investment is going to be done in parallel activities just in case.” Contact Greg Knowler at greg.knowler@spglobal.com .

Changing US tariffs force structural shift in global supply chains: ASCM

<div class="phx-topic abstract-wrapper">Strong demand for much of the year has kept North European ports under pressure, slowing attempts to ease the bottlenecks.</div>

Strong demand for much of the year has kept North European ports under pressure, slowing attempts to ease the bottlenecks.

<div class="phx-topic">BRUSSELS — North European ports will continue to face disruption and congestion “for many more months” with little improvement in the series of factors contributing to the ongoing bottlenecks, according to an executive with the port of Antwerp-Bruges. Luc Arnouts, vice president of international relations and networks at Europe’s busiest port, said container yards were full at the main hubs, ships were arriving outside their berthing windows, intermittent strikes at some ports were having a knock-on effect, carrier alliances were reshuffling capacity, and low water on the Rhine and delays in hinterland moves were all holding up traffic. “Terminal occupancy is high in all the major ports so when ships do not arrive within their berthing window and arrive a day later, that disrupts the whole operation,” he told the CHAINge Europe supply chain conference here this week. Strong demand for much of the year has kept North European ports under pressure, slowing attempts to mitigate the bottlenecks. The latest Asia-to-Europe volume data from Container Trades Statistics (CTS) is for April, when 1.64 million TEUs were transported westward, an increase of 8.6% year over year and a 6% gain from March. In the first four months of 2025, total Asia-Europe volume was up 9% year over year at 6.13 million TEUs, with the Asia-North Europe segment rising 6.6%, to 3.72 million TEUs, and Asia-Mediterranean surging 12.14%, to 2.4 million TEUs, according to CTS. Kuehne + Nagel’s SeaExplorer port visibility tool noted that port congestion in North European ports such as Antwerp, Hamburg and Bremerhaven was extending transit times with delays in berthing, operational disruptions and high yard utilization. The platform reported that container yards in Antwerp-Bruges were at 100% and carriers were reporting waiting times of up to three days, with truck slots limited and fully booked early each day. Container yards at Bremerhaven, one of the hubs for Maersk and Hapag-Lloyd’s Gemini Cooperation, are currently at 85%, while some terminals in Rotterdam are reportedly at 80% utilization. Michael Aldwell, Kuehne +Nagel’s executive vice president of sea logistics, said ports in southern Europea were also seeing congestion due to longer transits around the Cape of Good Hope as Mediterranean importers began to stock up earlier for the winter holiday sales season. “There were lower inventories in Europe and stronger sales than importers expected,” he told the Journal of Commerce this week, with the reshuffling of alliances adding to the bottlenecks. “When you’ve got the redeployment of the new alliances happening, you’re always going to have some initial operational challenges when things start arriving at different berthing windows, different setups,” he said. “And, of course, you have the traditional labor challenges,” he added. <h3>Dockworker strikes add to port woes </h3>Those labor challenges were coming on top of the high demand and operational challenges, with dockworker strikes continuing to impact European ports. A nationwide strike in Belgium on May 20 brought vessel traffic at the Port of Antwerp-Bruges to a halt, further stretching the system. Another national “day of action” will be held by unions in Belgium on June 25. Dockworker unions in Sweden launched strikes and blockade actions at multiple ports this week, with APM Terminals Gothenburg to be impacted on June 23 and 24. “There is not much free space in in the system, so this all has a knock-on impact,” Arnouts said. “If you are at a high level of frequency, you can imagine that adds to the disruption, on top of the uncertainty over tariffs that create shocks in cargo flows.” The latest data from Sea-Intelligence shows global schedule reliability has improved from 51.4% in January to 58.7% in April. Despite the steady improvement this year, Arnouts said it was too early to determine whether the better on-time performance was being seen in the port. He also highlighted a lack of transparency across the cargo supply chain that was a source of continuing frustration. “When a container arrives at a container terminal, often we don’t know the next mode of transport,” he said. “Can you imagine that a container comes in, needs to go the next day on a barge to Basel or on a truck to Duisburg and often we don’t know that. “There is so much communication in the supply chain but still we need to fight to get the right ETA [estimated time of arrival] of a ship that’s a part of the supply chain as well,” he added. “If you don’t know when the ship arrives, you don’t know what the next step will be.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

BRUSSELS — North European ports will continue to face disruption and congestion “for many more months” with little improvement in the series of factors contributing to the ongoing bottlenecks, according to an executive with the port of Antwerp-Bruges. Luc Arnouts, vice president of international relations and networks at Europe’s busiest port, said container yards were full at the main hubs, ships were arriving outside their berthing windows, intermittent strikes at some ports were having a knock-on effect, carrier alliances were reshuffling capacity, and low water on the Rhine and delays in hinterland moves were all holding up traffic. “Terminal occupancy is high in all the major ports so when ships do not arrive within their berthing window and arrive a day later, that disrupts the whole operation,” he told the CHAINge Europe supply chain conference here this week. Strong demand for much of the year has kept North European ports under pressure, slowing attempts to mitigate the bottlenecks. The latest Asia-to-Europe volume data from Container Trades Statistics (CTS) is for April, when 1.64 million TEUs were transported westward, an increase of 8.6% year over year and a 6% gain from March. In the first four months of 2025, total Asia-Europe volume was up 9% year over year at 6.13 million TEUs, with the Asia-North Europe segment rising 6.6%, to 3.72 million TEUs, and Asia-Mediterranean surging 12.14%, to 2.4 million TEUs, according to CTS. Kuehne + Nagel’s SeaExplorer port visibility tool noted that port congestion in North European ports such as Antwerp, Hamburg and Bremerhaven was extending transit times with delays in berthing, operational disruptions and high yard utilization. The platform reported that container yards in Antwerp-Bruges were at 100% and carriers were reporting waiting times of up to three days, with truck slots limited and fully booked early each day. Container yards at Bremerhaven, one of the hubs for Maersk and Hapag-Lloyd’s Gemini Cooperation, are currently at 85%, while some terminals in Rotterdam are reportedly at 80% utilization. Michael Aldwell, Kuehne +Nagel’s executive vice president of sea logistics, said ports in southern Europea were also seeing congestion due to longer transits around the Cape of Good Hope as Mediterranean importers began to stock up earlier for the winter holiday sales season. “There were lower inventories in Europe and stronger sales than importers expected,” he told the Journal of Commerce this week, with the reshuffling of alliances adding to the bottlenecks. “When you’ve got the redeployment of the new alliances happening, you’re always going to have some initial operational challenges when things start arriving at different berthing windows, different setups,” he said. “And, of course, you have the traditional labor challenges,” he added. Dockworker strikes add to port woes Those labor challenges were coming on top of the high demand and operational challenges, with dockworker strikes continuing to impact European ports. A nationwide strike in Belgium on May 20 brought vessel traffic at the Port of Antwerp-Bruges to a halt, further stretching the system. Another national “day of action” will be held by unions in Belgium on June 25. Dockworker unions in Sweden launched strikes and blockade actions at multiple ports this week, with APM Terminals Gothenburg to be impacted on June 23 and 24. “There is not much free space in in the system, so this all has a knock-on impact,” Arnouts said. “If you are at a high level of frequency, you can imagine that adds to the disruption, on top of the uncertainty over tariffs that create shocks in cargo flows.” The latest data from Sea-Intelligence shows global schedule reliability has improved from 51.4% in January to 58.7% in April. Despite the steady improvement this year, Arnouts said it was too early to determine whether the better on-time performance was being seen in the port. He also highlighted a lack of transparency across the cargo supply chain that was a source of continuing frustration. “When a container arrives at a container terminal, often we don’t know the next mode of transport,” he said. “Can you imagine that a container comes in, needs to go the next day on a barge to Basel or on a truck to Duisburg and often we don’t know that. “There is so much communication in the supply chain but still we need to fight to get the right ETA [estimated time of arrival] of a ship that’s a part of the supply chain as well,” he added. “If you don’t know when the ship arrives, you don’t know what the next step will be.” Contact Greg Knowler at greg.knowler@spglobal.com .

Months of congestion ahead for North Europe ports: Antwerp-Bruges

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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Filling the Supply Chain Education Gap with LTL Education Courses

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<div class="phx-topic abstract-wrapper">With little relief forthcoming, cargo owners need to build delays into their shipping plans as port and ship capacity remain tight, speakers at the Agriculture Transportation Coalition’s annual meeting said.</div>

With little relief forthcoming, cargo owners need to build delays into their shipping plans as port and ship capacity remain tight, speakers at the Agriculture Transportation Coalition’s annual meeting said.

<div class="phx-topic">TACOMA — Ongoing congestion at Asian and European transshipment ports and stricter carbon emission rules are hurting vessel schedule reliability, industry experts said at an agriculture shipping conference this week. With little relief on either issue forthcoming, cargo owners need to build delays into their shipping plans as port and ship capacity remain tight. Speaking at the Agriculture Transportation Coalition’s (AgTC’s) annual meeting here, Kuehne + Nagel Vice President Bill Rooney said schedule reliability among ocean carriers is “still a dumpster fire.” He cited data that showed less than 60% of vessel calls in April globally were within a day of their scheduled berthing window. The post-COVID-19 high for schedule reliability was near 65%, Rooney said, adding that he doubts the industry can hit that target, much less pre-pandemic levels of service reliability. Agriculture shippers are among the most sensitive to poor schedule reliability due to the high handling costs and perishability of their products. “The traditional number was more like 75% or 80%,” Rooney said. “I’m not sure we’ll get back there.” Since its start this year, the Gemini Cooperation alliance of Maersk and Hapag-Lloyd has said it has been reaching its 90% schedule reliability goal regularly. However, Rooney said that likely reflects major linehaul services from the two carriers and not necessarily feeder or standalone services. Individually, Maersk and Hapag-Lloyd have global schedule reliability hovering under 70%, he estimated. “They may achieve 90% on your trade lane, but my advice is to check whether your port is now a feeder port versus a linehaul port,” said Rooney. Slower ships factor into the lower reliability, he said. In 2023, the global fleet averaged speeds at just under 14 knots, or about 16 miles per hour. That’s the slowest speed on record and about half the average speed that ships traveled 50 years earlier, he said. “If you were 12 hours behind schedule, you could step on the gas and make your slot at your terminal,” Rooney said. “That’s not happening ever again.” He added shippers will have to plan around the fact that schedule reliability will likely remain subpar indefinitely. “You want to build a resilient supply chain? Resiliency is recognizing that the ships are seldom on time,” Rooney said. <h3>IMO rules, port congestion </h3>In 2023, the International Maritime Organization’s (IMO’s) Carbon Intensity Indicator (CII) rating went into effect for ships, requiring them to report and collect fuel consumption data. Fabio Santucci, US president for Mediterranean Shipping Co., said lower speeds reduce fuel consumption to meet the increasingly strict CII ratings. “Vessels cannot legally afford to go any faster,” Santucci said. “That’s where we lost, as an industry, the ability to catch up.” Along with slower speeds, ports globally are operating at nearly full capacity, Santucci said. Overall, there were about 900 million TEUs of containers shipped globally in 2024, with nameplate port capacity at about 1 billion TEUs. Santucci said congestion both inside and outside a port takes up the remaining capacity, leaving little space to manage cargo. While North American ports are mostly fluid, other ports across the globe right now are experiencing congestion levels as high as during the pandemic, Santucci said, with the problem most acute at major transshipment ports. “If your cargo is transshipping, it’s witnessing congestion levels that are as high as those seen during COVID,” he said. “While we don’t see this effect in the United States, we have issues pretty much everywhere else in the world.” Among major European transshipment ports, <a href="https://www.joc.com/article/no-end-to-the-congestion-choking-gateway-ports-in-north-europe-5995853">Hamburg</a> and <a href="https://www.joc.com/article/bottlenecks-flare-in-barcelona-as-port-battles-rise-in-transshipment-volumes-5244343">Tanger Med</a> are “heavily disrupted,” according to a Kuehne + Nagel port status report. In the Western Hemisphere, Santucci said <a href="https://www.joc.com/article/cargo-bottlenecks-persist-at-mexicos-manzanillo-port-one-month-after-strike-6027313">Manzanillo</a> and the transshipment ports of Panama are also congested. Many ports throughout China are also congested, as are the Southeast Asia ports, including Malaysia’s Port Klang and <a href="https://www.joc.com/article/asia-port-disruption-wave-reaches-singapore-6014754">Singapore</a>, which Santucci said has been working at close to full capacity for months. “Singapore has been steadily working at 90% capacity for months and months and months,” Santucci said. “I can tell you that working at 90% capacity for months generates a lot of inefficiencies.” MSC’s large fleet allows it to offer more direct port calls, but Santucci said transshipping will remain a necessity for some services, particularly as shippers diversify their product sourcing to other countries. With only about 1% of the global container fleet idled, Santucci said carriers have little capacity to offer more direct services without the use of transshipping. “Transshipment is always going to remain the Achilles heel of any network,” he said. “The more you transship, the more issues and more costs you’re going to have.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

TACOMA — Ongoing congestion at Asian and European transshipment ports and stricter carbon emission rules are hurting vessel schedule reliability, industry experts said at an agriculture shipping conference this week. With little relief on either issue forthcoming, cargo owners need to build delays into their shipping plans as port and ship capacity remain tight. Speaking at the Agriculture Transportation Coalition’s (AgTC’s) annual meeting here, Kuehne + Nagel Vice President Bill Rooney said schedule reliability among ocean carriers is “still a dumpster fire.” He cited data that showed less than 60% of vessel calls in April globally were within a day of their scheduled berthing window. The post-COVID-19 high for schedule reliability was near 65%, Rooney said, adding that he doubts the industry can hit that target, much less pre-pandemic levels of service reliability. Agriculture shippers are among the most sensitive to poor schedule reliability due to the high handling costs and perishability of their products. “The traditional number was more like 75% or 80%,” Rooney said. “I’m not sure we’ll get back there.” Since its start this year, the Gemini Cooperation alliance of Maersk and Hapag-Lloyd has said it has been reaching its 90% schedule reliability goal regularly. However, Rooney said that likely reflects major linehaul services from the two carriers and not necessarily feeder or standalone services. Individually, Maersk and Hapag-Lloyd have global schedule reliability hovering under 70%, he estimated. “They may achieve 90% on your trade lane, but my advice is to check whether your port is now a feeder port versus a linehaul port,” said Rooney. Slower ships factor into the lower reliability, he said. In 2023, the global fleet averaged speeds at just under 14 knots, or about 16 miles per hour. That’s the slowest speed on record and about half the average speed that ships traveled 50 years earlier, he said. “If you were 12 hours behind schedule, you could step on the gas and make your slot at your terminal,” Rooney said. “That’s not happening ever again.” He added shippers will have to plan around the fact that schedule reliability will likely remain subpar indefinitely. “You want to build a resilient supply chain? Resiliency is recognizing that the ships are seldom on time,” Rooney said. IMO rules, port congestion In 2023, the International Maritime Organization’s (IMO’s) Carbon Intensity Indicator (CII) rating went into effect for ships, requiring them to report and collect fuel consumption data. Fabio Santucci, US president for Mediterranean Shipping Co., said lower speeds reduce fuel consumption to meet the increasingly strict CII ratings. “Vessels cannot legally afford to go any faster,” Santucci said. “That’s where we lost, as an industry, the ability to catch up.” Along with slower speeds, ports globally are operating at nearly full capacity, Santucci said. Overall, there were about 900 million TEUs of containers shipped globally in 2024, with nameplate port capacity at about 1 billion TEUs. Santucci said congestion both inside and outside a port takes up the remaining capacity, leaving little space to manage cargo. While North American ports are mostly fluid, other ports across the globe right now are experiencing congestion levels as high as during the pandemic, Santucci said, with the problem most acute at major transshipment ports. “If your cargo is transshipping, it’s witnessing congestion levels that are as high as those seen during COVID,” he said. “While we don’t see this effect in the United States, we have issues pretty much everywhere else in the world.” Among major European transshipment ports, Hamburg and Tanger Med are “heavily disrupted,” according to a Kuehne + Nagel port status report. In the Western Hemisphere, Santucci said Manzanillo and the transshipment ports of Panama are also congested. Many ports throughout China are also congested, as are the Southeast Asia ports, including Malaysia’s Port Klang and Singapore , which Santucci said has been working at close to full capacity for months. “Singapore has been steadily working at 90% capacity for months and months and months,” Santucci said. “I can tell you that working at 90% capacity for months generates a lot of inefficiencies.” MSC’s large fleet allows it to offer more direct port calls, but Santucci said transshipping will remain a necessity for some services, particularly as shippers diversify their product sourcing to other countries. With only about 1% of the global container fleet idled, Santucci said carriers have little capacity to offer more direct services without the use of transshipping. “Transshipment is always going to remain the Achilles heel of any network,” he said. “The more you transship, the more issues and more costs you’re going to have.” Contact Michael Angell at michael.angell@spglobal.com .

Poor ocean reliability presents major challenge for US ag exporters

<div class="phx-topic abstract-wrapper">Iran has yet to make good on its threat to close the Strait of Hormuz, but nervous carriers are preparing contingency plans as the region moves onto a war footing.</div>

Iran has yet to make good on its threat to close the Strait of Hormuz, but nervous carriers are preparing contingency plans as the region moves onto a war footing.

<div class="phx-topic">Ocean carriers are poised to adjust schedules and omit key Persian Gulf transshipment hubs should Tehran carry out its threat to close the Strait of Hormuz to international shipping following the US bombing raids on Iranian nuclear facilities on Sunday. A series of customer advisories were issued by carriers on Monday, emphasizing the safety of crew, vessels and cargo as the shipping companies closely monitor a rapidly deteriorating security situation. “We are actively evaluating potential risks and stand ready to adjust our operations should conditions change,” Hapag-Lloyd said in an advisory. “At present, our vessels continue to transit the Strait of Hormuz. The safety and well-being of our crews and ships remain our highest priority.” The US launched airstrikes on three of Iran’s nuclear sites at Fordow, Natanz and Isfahan early Sunday in a dramatic escalation of the war between Iran and Israel. Iran’s parliament voted on June 22 in support of closing the Strait of Hormuz, although the final decision will be made by the Supreme Leader in consultation with the Supreme National Security Council. As of Monday, the only entrance to the Persian Gulf remained open to shipping. Lars Jensen, CEO of consultant Vespucci Maritime and a Journal of Commerce analyst, said how and where Iran would retaliate against US interests in the region was being closely monitored. “But for commercial shipping, the question is not whether or not vessels are attacked — the question is whether or not the risk itself is sufficient to cause a change in vessel deployment to reduce traffic through the Strait of Hormuz,” Jensen wrote in a LinkedIn post. In a country risk report Monday, S&amp;P Global Maritime Intelligence noted that Iran’s leadership now almost certainly perceives a severe threat to its survival, whether direct or indirect, and that is likely to heavily influence decision making. “We expect Iran’s response to first remain focused on continued ballistic missile and [drone] attacks on Israel [and] being likely to attempt to impede transit through the Strait of Hormuz,” the report noted. Disrupting ship transits could include vessel seizures, GPS/AIS spoofing and the use of military boats to harass vessels, it added. CMA CGM said in its customer advisory that “the geopolitical context is evolving.” “At this stage, we confirm that shipping activities are proceeding as normal in the area, and that our operations and logistics chains remain unchanged,” the carrier stated. “We continue to ensure full service coverage across all routes and ports of call.” However, ocean visibility provider eeSea noted that CMA CGM’s CMA-LMX service has been renamed and rerouted. The Europe-Middle East service that has been operating in the Persian Gulf since September 2024 has dropped calls to Jebel Ali, Abu Dhabi and Jubail in the Gulf and has added an additional call to the Turkish port of Ambarli near Istanbul. The service is now advertised under the name CMA-LRX (Levant Red Sea Express) and will see a reduction of three slots and a total roundtrip time cut in half from 42 to 21 days. <h3>Hormuz closure would impact key transshipment hub </h3>Any closure of the Strait of Hormuz will be felt first in the energy markets. According to Platts, a sister company of the Journal of Commerce within S&amp;P Global, more than 17 million barrels of crude oil each day move through Hormuz, coming not just from Iran, but from Saudi Arabia, Kuwait, the UAE and Qatar. That is more than 20% of daily global crude production. But container traffic would face significant disruption as well, with 4% of global volume passing through the strait in 2024, primarily destined for the United Arab Emirates’ transshipment hubs of Jebel Ali and Khalifa, and for the ports of Dammam in Saudi Arabia and Doha in Qatar. Jebel Ali, which handled 15.5 million TEUs in 2024, has become the region’s leading transshipment hub with feeder services connecting ports across the Persian Gulf, South Asia and East Africa. A blockade of Hormuz would see calls diverted to neighboring Indian, Omani and East African ports, where a surge in transshipment demand could lead to congestion and delays, a report from S&amp;P Global Market Intelligence noted. Multipurpose carrier AAL Shipping said in a statement Monday it was “deeply concerned” with the war between Israel and Iran and its impact on shipping in the region. “While our normal trade lane schedules currently remain unaffected, we are monitoring the situation and taking all necessary precautions to ensure the safety of our crew and cargo as we trade regional waters for our customers,” AAL said. But the carrier warned that there was also a rising cost element to the deteriorating situation in the Middle East. “We would highlight that such evolving threats can lead to increased insurance premiums and other security-related costs, affecting operational considerations for all parties,” it said. Meanwhile, at the other end of the war, Maersk announced it was cutting calls to the Israeli port of Haifa in the Mediterranean. “After carefully analyzing threat risk reports regarding the ongoing conflict between Israel and Iran — particularly the potential risks of calling specific Israeli ports and their implications for the safety of our crews — Maersk has made the decision to temporarily suspend vessel calls at the Port of Haifa, Israel, and also suspend cargo acceptance for Haifa,” the carrier said in an advisory Friday. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com ">greg.knowler@spglobal.com</a>.</div>

Ocean carriers are poised to adjust schedules and omit key Persian Gulf transshipment hubs should Tehran carry out its threat to close the Strait of Hormuz to international shipping following the US bombing raids on Iranian nuclear facilities on Sunday. A series of customer advisories were issued by carriers on Monday, emphasizing the safety of crew, vessels and cargo as the shipping companies closely monitor a rapidly deteriorating security situation. “We are actively evaluating potential risks and stand ready to adjust our operations should conditions change,” Hapag-Lloyd said in an advisory. “At present, our vessels continue to transit the Strait of Hormuz. The safety and well-being of our crews and ships remain our highest priority.” The US launched airstrikes on three of Iran’s nuclear sites at Fordow, Natanz and Isfahan early Sunday in a dramatic escalation of the war between Iran and Israel. Iran’s parliament voted on June 22 in support of closing the Strait of Hormuz, although the final decision will be made by the Supreme Leader in consultation with the Supreme National Security Council. As of Monday, the only entrance to the Persian Gulf remained open to shipping. Lars Jensen, CEO of consultant Vespucci Maritime and a Journal of Commerce analyst, said how and where Iran would retaliate against US interests in the region was being closely monitored. “But for commercial shipping, the question is not whether or not vessels are attacked — the question is whether or not the risk itself is sufficient to cause a change in vessel deployment to reduce traffic through the Strait of Hormuz,” Jensen wrote in a LinkedIn post. In a country risk report Monday, S&P Global Maritime Intelligence noted that Iran’s leadership now almost certainly perceives a severe threat to its survival, whether direct or indirect, and that is likely to heavily influence decision making. “We expect Iran’s response to first remain focused on continued ballistic missile and [drone] attacks on Israel [and] being likely to attempt to impede transit through the Strait of Hormuz,” the report noted. Disrupting ship transits could include vessel seizures, GPS/AIS spoofing and the use of military boats to harass vessels, it added. CMA CGM said in its customer advisory that “the geopolitical context is evolving.” “At this stage, we confirm that shipping activities are proceeding as normal in the area, and that our operations and logistics chains remain unchanged,” the carrier stated. “We continue to ensure full service coverage across all routes and ports of call.” However, ocean visibility provider eeSea noted that CMA CGM’s CMA-LMX service has been renamed and rerouted. The Europe-Middle East service that has been operating in the Persian Gulf since September 2024 has dropped calls to Jebel Ali, Abu Dhabi and Jubail in the Gulf and has added an additional call to the Turkish port of Ambarli near Istanbul. The service is now advertised under the name CMA-LRX (Levant Red Sea Express) and will see a reduction of three slots and a total roundtrip time cut in half from 42 to 21 days. Hormuz closure would impact key transshipment hub Any closure of the Strait of Hormuz will be felt first in the energy markets. According to Platts, a sister company of the Journal of Commerce within S&P Global, more than 17 million barrels of crude oil each day move through Hormuz, coming not just from Iran, but from Saudi Arabia, Kuwait, the UAE and Qatar. That is more than 20% of daily global crude production. But container traffic would face significant disruption as well, with 4% of global volume passing through the strait in 2024, primarily destined for the United Arab Emirates’ transshipment hubs of Jebel Ali and Khalifa, and for the ports of Dammam in Saudi Arabia and Doha in Qatar. Jebel Ali, which handled 15.5 million TEUs in 2024, has become the region’s leading transshipment hub with feeder services connecting ports across the Persian Gulf, South Asia and East Africa. A blockade of Hormuz would see calls diverted to neighboring Indian, Omani and East African ports, where a surge in transshipment demand could lead to congestion and delays, a report from S&P Global Market Intelligence noted. Multipurpose carrier AAL Shipping said in a statement Monday it was “deeply concerned” with the war between Israel and Iran and its impact on shipping in the region. “While our normal trade lane schedules currently remain unaffected, we are monitoring the situation and taking all necessary precautions to ensure the safety of our crew and cargo as we trade regional waters for our customers,” AAL said. But the carrier warned that there was also a rising cost element to the deteriorating situation in the Middle East. “We would highlight that such evolving threats can lead to increased insurance premiums and other security-related costs, affecting operational considerations for all parties,” it said. Meanwhile, at the other end of the war, Maersk announced it was cutting calls to the Israeli port of Haifa in the Mediterranean. “After carefully analyzing threat risk reports regarding the ongoing conflict between Israel and Iran — particularly the potential risks of calling specific Israeli ports and their implications for the safety of our crews — Maersk has made the decision to temporarily suspend vessel calls at the Port of Haifa, Israel, and also suspend cargo acceptance for Haifa,” the carrier said in an advisory Friday. Contact Greg Knowler at greg.knowler@spglobal.com .

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