<div class="phx-topic abstract-wrapper">The modernization of Vancouver's Centerm terminal provides a lesson for other land-constrained terminals looking to speed up truck turns and rail cargo flow to, ultimately, create more functional container capacity, writes JOC Executive Editor Mark Szakonyi. 
 
 </div>

The modernization of Vancouver's Centerm terminal provides a lesson for other land-constrained terminals looking to speed up truck turns and rail cargo flow to, ultimately, create more functional container capacity, writes JOC Executive Editor Mark Szakonyi.

3684845_FI.jpg

<div>Butted up to the edge of downtown Vancouver, there is little room for the second-biggest marine terminal at Canada’s largest port to expand. Yet DP World is boosting Centerm’s capacity by 66 percent despite increasing its footprint just 15 percent. The modernization of the Centerm terminal shows how North American operators of land-constrained facilities can invest in new equipment, including two new quay cranes, and tap artificial intelligence (AI) to keep cargo moving faster to, in effect, create more functional capacity. When the expansion is complete in November, Centerm will have an annual capacity of 1.5 million TEU on just...

Butted up to the edge of downtown Vancouver, there is little room for the second-biggest marine terminal at Canada’s largest port to expand. Yet DP World is boosting Centerm’s capacity by 66 percent despite increasing its footprint just 15 percent. The modernization of the Centerm terminal shows how North American operators of land-constrained facilities can invest in new equipment, including two new quay cranes, and tap artificial intelligence (AI) to keep cargo moving faster to, in effect, create more functional capacity. When the expansion is complete in November, Centerm will have an annual capacity of 1.5 million TEU on just 81 acres, Maksim Mihic, CEO and general manager at DP World Canada, told JOC.com previously. DP World didn’t disclose the cost of the project. l The approach makes even more sense considering the last more than two years of port congestion. Clogged marine terminals often reduce how many daily turns — container pick-up, drop-offs, or both — drayage drivers can make. That hurt not only drayage providers’ consignees and shipper customers, but can encourage drivers to leave the market, reducing harbor trucking capacity. DP World’s Vancouver project also shows how terminal operators can gain functional capacity on a limited footprint without having to make massive investment in semi- or fully automated berth operations, a sore point — if not a flashpoint — for some longshore unions. While relocating some older buildings helped free up space, it is the major rethinking of truck gates that freed up more terminal capacity. Centerm used to have 13 in-gates, four out-gates, and approximately 75 staging areas. Now, the facility has just four in-gates, two out-gates, and no staging areas. That’s made possible by a fully automated process that clears truckers for security and gives drivers instructions for pick-up and drop-off — all in a single in-gate transaction. The “Optimal Character Recognition” (OCR) technology, which scans camera-collected images and then analyzes them via AI, has slashed the processing time from an average of 4.5 minutes to 45 seconds. Of the three Vancouver container terminals, Centerm has consistently outperformed the others in keeping the time in and out of facilities under an hour. In the first week of August, for example, 88 percent of drivers got out in and out of Centerm in under an hour, according to Vancouver Fraser Port Authority’s online port performance tracker . Before the new truck gates came, truckers had to pick up the phone to communicate their appointment to check if they could retrieve a container sooner. The new process, built around truck visits rather than terminal appointments, allows truckers to complete up to six transactions — either pick-ups or drop-offs — without any intervention or assistance from a checker. If there are any security or commercial exceptions flagged by OCR, truckers are sent to a separate line where issues are addressed manually. In the future, truckers will be able to manage exceptions via a mobile app on their cell phones. Unsurprisingly, there hasn’t been any pushback from truckers over the new gates. “Any technology that will increase their performance and their turnaround time they will accept,” Maksim said. The modernization project also speeds up how Centerm can get railed containers in and out of the terminal. The terminal's rail footage has been expanded from 8,000 feet to 15,000 feet. That coupled with the replacement of rubber-tire gantry cranes (RTG) with five semi-automated rail-mounted gantry cranes (RMGs) allows the terminal to build longer unit trains, and in faster time, because it delivers containers from the yard straight to the rail track. Just on the other side of that rail track lies hip breweries and cafés. When space is tight like that, only speeding up freight flow will create significant capacity. Contact Mark Szakonyi at mark.szakonyi@ihsmarkit.com and follow him on Twitter: @MarkSzakonyi .

Marine terminals

AI helps Vancouver terminal create capacity, speed truck turns

<div class="phx-topic abstract-wrapper">James McNamara who joined the union as it faced tumult from containerization persisted at his job over four decades to help shape the modern International Longshoremen’s Association.</div>

James McNamara who joined the union as it faced tumult from containerization persisted at his job over four decades to help shape the modern International Longshoremen’s Association.

Feature image

<div class="phx-topic">The Port of New York and New Jersey’s maritime industry honored James McNamara, chief of staff for the International Longshoremen’s Association (ILA), for his 45 years in the business, rising in the union’s ranks along with current leadership to shape the ILA into a modern organization. On Wednesday, McNamara was inducted into the Maritime Association of the Port of New York &amp; New Jersey’s Hall of Fame, along with John Murray, chief executive officer of the Canaveral Port Authority; Bob Burke, chief executive officer of Ridgebury Tankers; and Ted Tregurtha, president of tug operator Moran Towing. McNamara, then a 26-year-old local reporter who lived far from the port in Queens, joined the ILA in August of 1981, after sending an unsolicited, typed cover letter and resume in search of a public relations job. ILA President Harold Daggett was a business agent for longshore mechanics when he first met McNamara. At the event, Daggett highlighted McNamara’s ILA charity work alongside the United States Maritime Alliance (USMX), with the two raising $20 million for St. Jude Children’s Hospital. “I couldn’t be more happy to have that guy on board,” Daggett said. “He’s like me having 10 wives, honest to God. I made him chief of staff. I had to. He was doing my job.” McNamara also came up the ranks with current Secretary-Treasurer Stephen Knott and John Baker, a general organizer and previous head of the ILA’s Great Lakes District Council. <h3>‘Deeply compassionate and very intelligent’ </h3>McNamara told the Journal of Commerce his only knowledge of the ILA came from a couple of assignments briefly interviewing Thomas “Teddy” Gleason, who had been the union’s president since 1963. After working for a newspaper, McNamara said going to a longshore union was a bit of culture shock. Gleason himself had been held as a material witness in a 1947 shooting of a New York stevedore. He was also called in 1981 to testify before a Senate committee about alleged associations the union had with New York organized crime. “The way they came across was very scary,” McNamara said. “They were tough guys. They came from the docks. That wasn’t ballet school. It was a tough environment.” Despite that initial impression, “I quickly learned that [longshore workers] were deeply compassionate and friendly and very intelligent,” McNamara said, adding that the latter especially came into play during contract negotiations. “Longshoremen would have the most intricate questions that went to the heart of the contract, perhaps more so than the officers and general counsel,” McNamara said. “Longshoremen, and especially their spouses, were the best analysts and professors of contracts.” They had to be, McNamara said, because the New York-New Jersey shipping industry was changing dramatically. At the time, New York City still had few finger piers that handled breakbulk cargo. But the New York-based ILA had to confront the industry’s move to containerization and the ceding of longshore jobs to New Jersey’s port. Gleason, who had led three wildcat strikes as a union organizer, sought to stabilize longshore work through establishing three-year contracts, improved benefits for his members, and the guaranteed annual income for union members most impacted by containerization. He also established benefit funds for ILA members and opened the union to more Black longshore workers. Even so, the ILA could not stem the tide of job loss. McNamara said the New York-New Jersey port had about 27,000 longshore workers when he joined the union, compared to the roughly 5,000 today that work “when we’re lucky.” Yet, the ILA sought to work with employers to ensure those members had the best possible working environment. Even though container terminals became busier and more congested with equipment than ever, only one ILA longshore equipment operator had a job-related fatality. The ILA also saw <a href="https://www.joc.com/article/ny-nj-looks-to-boost-longshore-workforce-with-covid-19-vaccines-5250297">at least 22 members perish while the union worked during COVID-19</a>. “Those 5,000 ILA members work in a clean environment on modern, safe equipment, keeping up the same productivity as the 27,000 that had been there before,” McNamara said. McNamara said one of his greatest accomplishments was taking part in negotiations with the USMX over the ILA’s current contract, in which the union <a href="https://www.joc.com/article/ila-ratifies-new-six-year-deal-with-higher-entry-pay-automation-protection-5951338">secured its largest pay raise ever and additional protections against port automation</a>. “Let me do a little bragging tonight,” McNamara said during his speech. “Of the four honorees, I am the only one here introduced by the greatest labor leader of all time, my friend of 45 years, Harold Daggett.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of New York and New Jersey’s maritime industry honored James McNamara, chief of staff for the International Longshoremen’s Association (ILA), for his 45 years in the business, rising in the union’s ranks along with current leadership to shape the ILA into a modern organization. On Wednesday, McNamara was inducted into the Maritime Association of the Port of New York & New Jersey’s Hall of Fame, along with John Murray, chief executive officer of the Canaveral Port Authority; Bob Burke, chief executive officer of Ridgebury Tankers; and Ted Tregurtha, president of tug operator Moran Towing. McNamara, then a 26-year-old local reporter who lived far from the port in Queens, joined the ILA in August of 1981, after sending an unsolicited, typed cover letter and resume in search of a public relations job. ILA President Harold Daggett was a business agent for longshore mechanics when he first met McNamara. At the event, Daggett highlighted McNamara’s ILA charity work alongside the United States Maritime Alliance (USMX), with the two raising $20 million for St. Jude Children’s Hospital. “I couldn’t be more happy to have that guy on board,” Daggett said. “He’s like me having 10 wives, honest to God. I made him chief of staff. I had to. He was doing my job.” McNamara also came up the ranks with current Secretary-Treasurer Stephen Knott and John Baker, a general organizer and previous head of the ILA’s Great Lakes District Council. ‘Deeply compassionate and very intelligent’ McNamara told the Journal of Commerce his only knowledge of the ILA came from a couple of assignments briefly interviewing Thomas “Teddy” Gleason, who had been the union’s president since 1963. After working for a newspaper, McNamara said going to a longshore union was a bit of culture shock. Gleason himself had been held as a material witness in a 1947 shooting of a New York stevedore. He was also called in 1981 to testify before a Senate committee about alleged associations the union had with New York organized crime. “The way they came across was very scary,” McNamara said. “They were tough guys. They came from the docks. That wasn’t ballet school. It was a tough environment.” Despite that initial impression, “I quickly learned that [longshore workers] were deeply compassionate and friendly and very intelligent,” McNamara said, adding that the latter especially came into play during contract negotiations. “Longshoremen would have the most intricate questions that went to the heart of the contract, perhaps more so than the officers and general counsel,” McNamara said. “Longshoremen, and especially their spouses, were the best analysts and professors of contracts.” They had to be, McNamara said, because the New York-New Jersey shipping industry was changing dramatically. At the time, New York City still had few finger piers that handled breakbulk cargo. But the New York-based ILA had to confront the industry’s move to containerization and the ceding of longshore jobs to New Jersey’s port. Gleason, who had led three wildcat strikes as a union organizer, sought to stabilize longshore work through establishing three-year contracts, improved benefits for his members, and the guaranteed annual income for union members most impacted by containerization. He also established benefit funds for ILA members and opened the union to more Black longshore workers. Even so, the ILA could not stem the tide of job loss. McNamara said the New York-New Jersey port had about 27,000 longshore workers when he joined the union, compared to the roughly 5,000 today that work “when we’re lucky.” Yet, the ILA sought to work with employers to ensure those members had the best possible working environment. Even though container terminals became busier and more congested with equipment than ever, only one ILA longshore equipment operator had a job-related fatality. The ILA also saw at least 22 members perish while the union worked during COVID-19 . “Those 5,000 ILA members work in a clean environment on modern, safe equipment, keeping up the same productivity as the 27,000 that had been there before,” McNamara said. McNamara said one of his greatest accomplishments was taking part in negotiations with the USMX over the ILA’s current contract, in which the union secured its largest pay raise ever and additional protections against port automation . “Let me do a little bragging tonight,” McNamara said during his speech. “Of the four honorees, I am the only one here introduced by the greatest labor leader of all time, my friend of 45 years, Harold Daggett.” Contact Michael Angell at michael.angell@spglobal.com .

Port News

North American ports

Maritime

NY-NJ maritime industry honors ILA’s McNamara

<div class="phx-topic abstract-wrapper">The speech by Bobby Olvera sends a warning shot to employers and cargo owners ahead of the expiration of its longshore contract in 2028.</div>

The speech by Bobby Olvera sends a warning shot to employers and cargo owners ahead of the expiration of its longshore contract in 2028.

<div class="phx-topic">The president of the International Longshore and Warehouse Union (ILWU) on Wednesday slammed US West Coast employers as being dominated by foreign shipping companies, accusing them of caring more about the profits they send back to their headquarters than the port communities in which they operate. The message, delivered by Bobby Olvera at the annual meeting of the Agriculture Transportation Coalition in Tacoma, Washington, sends a warning shot to employers — and cargo owners — ahead of the expiration of the union’s coastwide contract in 2028. The previous contract, in which the ILWU scored a <a href="https://www.joc.com/article/ilwu-scores-32-wage-increase-70-million-bonus-in-tentative-new-contract-5223607">32% increase in wages for its members</a>, was finalized in 2022 after <a href="https://www.joc.com/article/west-coast-ports-hit-with-new-round-of-cargo-handling-disruptions-5226851">work stoppages and slowdowns</a> that resulted in a significant diversion of cargo to East and Gulf Coast ports. “The foreign shipping lines, they should not be operating our terminals here in the United States. That should be American stevedoring companies,” Olvera told the AgTC event. “They don’t care about our ports. It’s all [about] profit generating. It’s control generating.” Olvera said the ILWU is using this period to advocate for strong West Coast ports and their customers, which include agricultural importers and exporters, before the appropriate state and federal agencies regarding legislation and regulations that impact the flow of cargo. “But things have changed. What they’ve done, in my opinion, is turned the PMA into a one-trick pony. All they advocate [and] lobby for are tax incentives, tax breaks, dollars for tax breaks and tax funds for the terminals,” Olvera said. The Pacific Maritime Association (PMA), which represents ocean carrier and terminal operator employers in negotiations with the ILWU, said that is not the case at all. “PMA is focused each day on promoting strong and efficient West Coast ports that support the nation’s supply chain and sustain thousands of jobs at port terminals and millions of jobs throughout the US economy,” the association said in a statement Thursday. <h3>The role of private equity </h3>Former shipping company executive and Journal of Commerce contributor Ted Prince noted that the phenomenon of ocean carriers dominating terminal operators in a vertically-integrated operation developed decades ago, but that model has been changing due to investments by private equity and infrastructure funds in ports and marine terminals. “How do you deal with this silent force of private equity that in my mind is going to increasingly call the shots?” Prince asked Olvera during the event. “It starts and stops with the ports, with our public port authorities,” Olvera said. “I think we fail to recognize that they’re owned by the citizens. They’re owned by the communities. The port authority has an obligation when they execute 30- and 40-year leases on the terminals to ask the right questions.” Those “right questions” involve how to make their facilities more responsive to port users and their needs for sufficient gate hours and efficient operations, he added. A California-based agriculture exporter told Olvera that the lack of trust between the PMA and the ILWU has hurt the supply chain by imposing higher costs on shippers, which has resulted in a diversion of cargo to East and Gulf Coast ports. She suggested that some forms of technology that are now common at marine terminals are designed to reduce costs and improve efficiency, not to eliminate longshore jobs. “That’s where the technology comes in — to move more cargo,” she said. Olvera responded that he was not going to talk about automation at the ports. The West Coast longshore labor contract allows for automation, but anticipated union resistance has resulted in a new dynamic in which port authorities are working with terminal operators and the ILWU to ensure that <a href="https://www.joc.com/article/hesitation-from-port-authorities-slows-automation-in-southern-california-6199922">future projects move forward with the cooperation of both parties</a>. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

The president of the International Longshore and Warehouse Union (ILWU) on Wednesday slammed US West Coast employers as being dominated by foreign shipping companies, accusing them of caring more about the profits they send back to their headquarters than the port communities in which they operate. The message, delivered by Bobby Olvera at the annual meeting of the Agriculture Transportation Coalition in Tacoma, Washington, sends a warning shot to employers — and cargo owners — ahead of the expiration of the union’s coastwide contract in 2028. The previous contract, in which the ILWU scored a 32% increase in wages for its members , was finalized in 2022 after work stoppages and slowdowns that resulted in a significant diversion of cargo to East and Gulf Coast ports. “The foreign shipping lines, they should not be operating our terminals here in the United States. That should be American stevedoring companies,” Olvera told the AgTC event. “They don’t care about our ports. It’s all [about] profit generating. It’s control generating.” Olvera said the ILWU is using this period to advocate for strong West Coast ports and their customers, which include agricultural importers and exporters, before the appropriate state and federal agencies regarding legislation and regulations that impact the flow of cargo. “But things have changed. What they’ve done, in my opinion, is turned the PMA into a one-trick pony. All they advocate [and] lobby for are tax incentives, tax breaks, dollars for tax breaks and tax funds for the terminals,” Olvera said. The Pacific Maritime Association (PMA), which represents ocean carrier and terminal operator employers in negotiations with the ILWU, said that is not the case at all. “PMA is focused each day on promoting strong and efficient West Coast ports that support the nation’s supply chain and sustain thousands of jobs at port terminals and millions of jobs throughout the US economy,” the association said in a statement Thursday. The role of private equity Former shipping company executive and Journal of Commerce contributor Ted Prince noted that the phenomenon of ocean carriers dominating terminal operators in a vertically-integrated operation developed decades ago, but that model has been changing due to investments by private equity and infrastructure funds in ports and marine terminals. “How do you deal with this silent force of private equity that in my mind is going to increasingly call the shots?” Prince asked Olvera during the event. “It starts and stops with the ports, with our public port authorities,” Olvera said. “I think we fail to recognize that they’re owned by the citizens. They’re owned by the communities. The port authority has an obligation when they execute 30- and 40-year leases on the terminals to ask the right questions.” Those “right questions” involve how to make their facilities more responsive to port users and their needs for sufficient gate hours and efficient operations, he added. A California-based agriculture exporter told Olvera that the lack of trust between the PMA and the ILWU has hurt the supply chain by imposing higher costs on shippers, which has resulted in a diversion of cargo to East and Gulf Coast ports. She suggested that some forms of technology that are now common at marine terminals are designed to reduce costs and improve efficiency, not to eliminate longshore jobs. “That’s where the technology comes in — to move more cargo,” she said. Olvera responded that he was not going to talk about automation at the ports. The West Coast longshore labor contract allows for automation, but anticipated union resistance has resulted in a new dynamic in which port authorities are working with terminal operators and the ILWU to ensure that future projects move forward with the cooperation of both parties . Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

ILWU chief slams ‘foreign shipping companies’ ahead of contract expiration

<div class="phx-topic abstract-wrapper">The alignment between demand and the supply of capacity has individual dynamics across each trade lane and different consequences for the newbuild, second-hand and charter markets, writes Jeremy Masters. </div>

The alignment between demand and the supply of capacity has individual dynamics across each trade lane and different consequences for the newbuild, second-hand and charter markets, writes Jeremy Masters.

<div class="phx-topic">When a linkage is made between trade conditions and capacity evolution, there is a tendency to focus exclusively on the big ship trades. The reality is that the alignment between demand and supply of space has individual dynamics across each trade lane and different consequences for the newbuild, second-hand and charter markets. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6225328_0.1.jpg"></img></div>The big ship trades are predominantly inhabited by carrier-owned tonnage or long-term charters that often go back-to-back with non-operating owners (NOOs) making newbuild orders. Suffice it to say there is not a heavily traded short-term charter market. Alphaliner’s May monthly monitor reported that there was a staggering 91.4 % increase of the existing fleet in newbuild orders for 18,000 to 24,000-TEU ships. It’s very tough to see that amount of capacity being successfully absorbed by an expansion of trades using big ships, slow-steaming and retaining southern Africa routings if the Red Sea fully opens. Scrapping is not relevant in this tier or indeed in the next two or three size tiers down due to the youth of the fleet. There are, of course, trades where existing loops can be upgraded – Far East to Europe being the most obvious – but if a trade already has a fragile balance, there will be a limit to absorption levels and cascading will potentially export oversupply contagion. <h3>Smaller trades, different dynamics </h3>If we switch to short-sea, regional, and smaller deep-sea trades, we enter a different set of dynamics. To illustrate the stark differences, we can look at the versatile 2,000 to 5,099-TEU capacity category. It’s not just a case where these size ships fit the weekly volumes being generated, but also the capability of the ports served to take the ship sizes and turn them around quickly. In looking at why this ship size has been in such high demand and charter rates so robust, we can look at natural trade strength in a number of the feeder/regional trades they inhabit, such as intra-Asia, but structural issues are also at play: Carriers chartering and buying a tremendous amount of tonnage from NOOs to run their own regional/feeder systems. New deployments created to overcome disruption to normal ship systems, like the Red Sea and Strait of Hormuz. Congestion consistently reducing networking capacity. Gemini Cooperation’s hub-and-spoke system, for instance, increased demand for smaller tonnage but did not necessarily maximize usage of those assets. Unlike a nimble third- party feeder specialist who would swap sizes, adapt schedules and get enough carrier clients on board to fill ships on an ongoing basis, Gemini is by design running a fixed set of connections forcing it to sail its spoke ships on time at whatever utilization is possible with Gemini-only cargo. That’s not to question the business logic of vertical integration for the carriers. The combined effect of new ship systems being created and not maximizing the use of assets is, however, greater demand at a time the reduction of NOO tonnage has created inelasticity and high prices in both the charter and second-hand market. <h3>Newbuild fracture </h3>What seems counterintuitive in the smaller trades where demand is high, second-hand ships are hard to come by, and charter rates are extremely robust, is that the newbuild order book is considerably lower than in the big-ship categories. Alphaliner’s May monthly monitor reported the following percentages of the existing fleet on newbuild orders: 2,000 to 2,999 TEUs (12.8%), 3000 to 3,999 TEUs (35.7%), and 4000 to 5,099 TEUs (16.9%). These percentages have been moving up in recent months, but are a quantum leap below the 89.4 % in the 18,000 to 24,000-TEU range. According to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global, some 2.43 million TEUs were on order in 2025 for ships of 15,001 TEUs and up. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fdc6bd37-a5e0-4c29-abde-4be9dbd2ba3e"></dynamic-object></div>Have carriers and NOO’s overcooked their orders in the big ships and undercooked them at the lower end? The answer on the big ships looks to be “yes,” and there is a built-in carrier driver for this : There is not a well-populated second-hand or short-term charter market for newer, bigger ships, so if you need energy-efficient, low-slot cost vessels to be competitive in particular trades going forward, there is a pressure to order even if you have overcapacity concerns. There is a simpler and more pervasive explanation: The move from three major east-west networks ( 2M, Ocean, THEA ) to four ( MSC, Ocean, Gemini, Premier) catalyzed an arms race that continues today and will only be resolved by further carrier and/or consortium consolidation. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

When a linkage is made between trade conditions and capacity evolution, there is a tendency to focus exclusively on the big ship trades. The reality is that the alignment between demand and supply of space has individual dynamics across each trade lane and different consequences for the newbuild, second-hand and charter markets. The big ship trades are predominantly inhabited by carrier-owned tonnage or long-term charters that often go back-to-back with non-operating owners (NOOs) making newbuild orders. Suffice it to say there is not a heavily traded short-term charter market. Alphaliner’s May monthly monitor reported that there was a staggering 91.4 % increase of the existing fleet in newbuild orders for 18,000 to 24,000-TEU ships. It’s very tough to see that amount of capacity being successfully absorbed by an expansion of trades using big ships, slow-steaming and retaining southern Africa routings if the Red Sea fully opens. Scrapping is not relevant in this tier or indeed in the next two or three size tiers down due to the youth of the fleet. There are, of course, trades where existing loops can be upgraded – Far East to Europe being the most obvious – but if a trade already has a fragile balance, there will be a limit to absorption levels and cascading will potentially export oversupply contagion. Smaller trades, different dynamics If we switch to short-sea, regional, and smaller deep-sea trades, we enter a different set of dynamics. To illustrate the stark differences, we can look at the versatile 2,000 to 5,099-TEU capacity category. It’s not just a case where these size ships fit the weekly volumes being generated, but also the capability of the ports served to take the ship sizes and turn them around quickly. In looking at why this ship size has been in such high demand and charter rates so robust, we can look at natural trade strength in a number of the feeder/regional trades they inhabit, such as intra-Asia, but structural issues are also at play: Carriers chartering and buying a tremendous amount of tonnage from NOOs to run their own regional/feeder systems. New deployments created to overcome disruption to normal ship systems, like the Red Sea and Strait of Hormuz. Congestion consistently reducing networking capacity. Gemini Cooperation’s hub-and-spoke system, for instance, increased demand for smaller tonnage but did not necessarily maximize usage of those assets. Unlike a nimble third- party feeder specialist who would swap sizes, adapt schedules and get enough carrier clients on board to fill ships on an ongoing basis, Gemini is by design running a fixed set of connections forcing it to sail its spoke ships on time at whatever utilization is possible with Gemini-only cargo. That’s not to question the business logic of vertical integration for the carriers. The combined effect of new ship systems being created and not maximizing the use of assets is, however, greater demand at a time the reduction of NOO tonnage has created inelasticity and high prices in both the charter and second-hand market. Newbuild fracture What seems counterintuitive in the smaller trades where demand is high, second-hand ships are hard to come by, and charter rates are extremely robust, is that the newbuild order book is considerably lower than in the big-ship categories. Alphaliner’s May monthly monitor reported the following percentages of the existing fleet on newbuild orders: 2,000 to 2,999 TEUs (12.8%), 3000 to 3,999 TEUs (35.7%), and 4000 to 5,099 TEUs (16.9%). These percentages have been moving up in recent months, but are a quantum leap below the 89.4 % in the 18,000 to 24,000-TEU range. According to Sea-web, a sister product of the Journal of Commerce within S&P Global, some 2.43 million TEUs were on order in 2025 for ships of 15,001 TEUs and up. Have carriers and NOO’s overcooked their orders in the big ships and undercooked them at the lower end? The answer on the big ships looks to be “yes,” and there is a built-in carrier driver for this : There is not a well-populated second-hand or short-term charter market for newer, bigger ships, so if you need energy-efficient, low-slot cost vessels to be competitive in particular trades going forward, there is a pressure to order even if you have overcapacity concerns. There is a simpler and more pervasive explanation: The move from three major east-west networks ( 2M, Ocean, THEA ) to four ( MSC, Ocean, Gemini, Premier) catalyzed an arms race that continues today and will only be resolved by further carrier and/or consortium consolidation. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

Container lines

Asia-Europe

Evolution of ocean capacity linked to varied dynamics of trade needs

<div class="phx-topic abstract-wrapper">Project shippers in the US are being encouraged to test the robustness of bridge strength and state permitting feasibility up to a year in advance of major cargo moves.</div>

Project shippers in the US are being encouraged to test the robustness of bridge strength and state permitting feasibility up to a year in advance of major cargo moves.

<div class="phx-topic">Project cargo shippers in the US are being urged to submit “dummy permits” to periodically test bridge and state permitting feasibility to avoid last-minute surprises on the volatile final leg of a cargo move. As project cargo lands at ports or prepares to exit fabrication facilities, the margin for error shrinks to zero. Yet, this is where permitting roadblocks can see multi-million-dollar projects grind to a halt. James Weston, senior project logistics manager at engineering, procurement and construction (EPC) company Linde Engineering, believes a proactive, structural shift in how shippers approach route planning would avoid last-minute surprises. Weston suggested shippers should implement an internal permit feasibility assessment process that routinely submits dummy permits up to a year in advance for major projects. "Let's apply for a permit a year in advance... route studies will give you the feasibility for infrastructure challenges and things of that nature, but it doesn't tell you if you're going to be able to get under that bridge,” he said. “It doesn't tell you if the states can even allow you to go down that route." Weston added that spending a fraction of the budget upfront acts as cheap insurance against liquid damages. ”I can mitigate a challenge a year in advance a lot easier than I can 20 days out,” he said. Deep fragmentation within permitting infrastructure in the US means that project cargo carriers frequently face situations where a route approved by one state becomes a compliance headache at the neighboring border. Craig McGraw, vice president of sales and marketing at freight service provider Trans American Trucking &amp; Warehouse, said that local infrastructure updates can instantly derail execution. ”We’ve had cases where we go to a facility, we have our truck ready, and then, because of construction delays, the permit we previously applied for is invalid,” McGraw said. To solve this, McGraw and other members of the international trade association Specialized Carriers and Rigging Association (SCRA) routinely lobby in Washington, D.C., pushing for "permit harmonization in different regions of the US, to move things along quicker," he said. Ragan Watson, who handles project sales at lifting specialist Barnhart, echoed the need to bridge the disconnect between carriers and state regulators. Barnhart utilizes annual SCRA events to present upcoming project portfolios directly to officials from roughly 45 permit offices. ”We (say), ‘These are the projects that we’re encountering in your area... What are the issues you’re envisioning that already could be something that we can gird against?” Watson said. <h3>Equipment challenge must be overcome </h3>Even the most meticulous permit planning cannot overcome a lack of physical equipment. The executives highlighted a pressing need for strategic, long-term asset acquisition rather than reactive buying during market spikes. Watson warned against rushing out to "buy more picks and shovels when there's a gold rush," urging project owners to abandon traditional short-term tendering. Instead, he suggested that shippers provide a project list “for the next three to five years" so asset-owning suppliers can justify capital expenditures to their executives. This long-term visibility is particularly vital given the explosive growth of data centers across the US, which is fundamentally reshaping market capacity. McGraw pointed out that the massive scale of data center components is forcing specialized carriers to procure highly specific trailers. "From what we're understanding that's going to be going on for the next 10 years... companies are going out and buying trailers specific to this," he said. Yet, without guaranteed contracts, acquiring those expensive assets is a gamble that "can kind of come back to bite you in the end," he added. The executives agreed that overcoming last-mile friction requires an aggressive educational outreach campaign directed at cargo owners, procurement teams, and engineers who may suffer from a "curse of knowledge" or a complete lack of operational awareness. ”I think that education of the freight owners is vital,” Weston said, advising logistics professionals to hold training sessions across corporate silos so that engineering and procurement teams understand the physical limitations of transport. Joye Runfola, director of supply chain and logistics for the Americas at industrial gas manufacturer Chart Industries, summarized the reality facing today’s supply chains. ”If it’s going to go wrong, it’s going to go wrong at the end,” she said. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Project cargo shippers in the US are being urged to submit “dummy permits” to periodically test bridge and state permitting feasibility to avoid last-minute surprises on the volatile final leg of a cargo move. As project cargo lands at ports or prepares to exit fabrication facilities, the margin for error shrinks to zero. Yet, this is where permitting roadblocks can see multi-million-dollar projects grind to a halt. James Weston, senior project logistics manager at engineering, procurement and construction (EPC) company Linde Engineering, believes a proactive, structural shift in how shippers approach route planning would avoid last-minute surprises. Weston suggested shippers should implement an internal permit feasibility assessment process that routinely submits dummy permits up to a year in advance for major projects. "Let's apply for a permit a year in advance... route studies will give you the feasibility for infrastructure challenges and things of that nature, but it doesn't tell you if you're going to be able to get under that bridge,” he said. “It doesn't tell you if the states can even allow you to go down that route." Weston added that spending a fraction of the budget upfront acts as cheap insurance against liquid damages. ”I can mitigate a challenge a year in advance a lot easier than I can 20 days out,” he said. Deep fragmentation within permitting infrastructure in the US means that project cargo carriers frequently face situations where a route approved by one state becomes a compliance headache at the neighboring border. Craig McGraw, vice president of sales and marketing at freight service provider Trans American Trucking & Warehouse, said that local infrastructure updates can instantly derail execution. ”We’ve had cases where we go to a facility, we have our truck ready, and then, because of construction delays, the permit we previously applied for is invalid,” McGraw said. To solve this, McGraw and other members of the international trade association Specialized Carriers and Rigging Association (SCRA) routinely lobby in Washington, D.C., pushing for "permit harmonization in different regions of the US, to move things along quicker," he said. Ragan Watson, who handles project sales at lifting specialist Barnhart, echoed the need to bridge the disconnect between carriers and state regulators. Barnhart utilizes annual SCRA events to present upcoming project portfolios directly to officials from roughly 45 permit offices. ”We (say), ‘These are the projects that we’re encountering in your area... What are the issues you’re envisioning that already could be something that we can gird against?” Watson said. Equipment challenge must be overcome Even the most meticulous permit planning cannot overcome a lack of physical equipment. The executives highlighted a pressing need for strategic, long-term asset acquisition rather than reactive buying during market spikes. Watson warned against rushing out to "buy more picks and shovels when there's a gold rush," urging project owners to abandon traditional short-term tendering. Instead, he suggested that shippers provide a project list “for the next three to five years" so asset-owning suppliers can justify capital expenditures to their executives. This long-term visibility is particularly vital given the explosive growth of data centers across the US, which is fundamentally reshaping market capacity. McGraw pointed out that the massive scale of data center components is forcing specialized carriers to procure highly specific trailers. "From what we're understanding that's going to be going on for the next 10 years... companies are going out and buying trailers specific to this," he said. Yet, without guaranteed contracts, acquiring those expensive assets is a gamble that "can kind of come back to bite you in the end," he added. The executives agreed that overcoming last-mile friction requires an aggressive educational outreach campaign directed at cargo owners, procurement teams, and engineers who may suffer from a "curse of knowledge" or a complete lack of operational awareness. ”I think that education of the freight owners is vital,” Weston said, advising logistics professionals to hold training sessions across corporate silos so that engineering and procurement teams understand the physical limitations of transport. Joye Runfola, director of supply chain and logistics for the Americas at industrial gas manufacturer Chart Industries, summarized the reality facing today’s supply chains. ”If it’s going to go wrong, it’s going to go wrong at the end,” she said. Contact Carly Fields at carly.fields@spglobal.com .

Heavy-haul transport

Breakbulk News

‘Dummy permits’ could overcome last-mile snafus for project cargoes

<div class="phx-topic abstract-wrapper">The Shanghai-based carrier has launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions.</div>

The Shanghai-based carrier has launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions.

<div class="phx-topic">Emerging regional carrier CU Lines, formerly China United Lines, is rapidly consolidating its network operations, riding on a string of vessel charters it has snapped up as a result of Singapore-based <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fsealead-warns-of-network-disruptions-in-persian-gulf-war-zone-6199099&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C9365140523594abb902308deb734a18b%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639149633885888591%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=ITgBHvs7LI4eHjk9ppWhFX%2BxCkWHJudG%2FkgBGoScsAA%3D&amp;reserved=0">SeaLead’s service terminations and exit from certain markets.</a>CU has now launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions. A fleet of four ships, including the 10,000-TEU Express Berlin that CU Lines took over from SeaLead, has been deployed on a standalone China-Middle East Express (CGX) loop, with stops in India and Pakistan. The full CGX rotation is Qingdao, Shanghai, Ningbo, Shekou, Nansha, Port Klang, Mundra, Karachi, Sohar, Khor Fakkan and Qingdao. CU Lines noted that shippers on the trade lane have an opportunity to experience consistent sailings and better schedule reliability due to the use of “well-conditioned” tonnage. “Leveraging its existing REX Red Sea Express service, AEM Asia-East Mediterranean service and regional feeder network, CU Lines will provide customers with a Middle East service portfolio featuring direct priority services and diversified transport routes, aiming to ensure smooth supply chains,” the Shanghai-based liner said. Additionally, CU has opened dedicated shuttle operations on a rotation of Shanghai, Nansha, Khor Fakkan, and Shanghai in conjunction with Hong Kong-based T.S. Lines. Khor Fakkan and Fujairah in the United Arab Emirates and Sohar in Oman have become the contingency supply chain support for Middle East cargo flows hobbled by the war in the Middle East. <h3>Intra-Asia growth </h3>CU Lines also continues its growth in the intra-Asia market. The carrier recently joined a consortium led by Singapore-based X-Press Feeders for enhanced Southeast Asia-Indian subcontinent coverage. The joint service deploys three ships from X-Press Feeders and one vessel from CU Lines, ranging between 3,000 TEUs and 5,000 TEUs, with T.S. Lines as another consortium partner through a slot charter deal. More network expansion for CU Lines appears imminent as local industry sources with knowledge of the matter say the carrier has agreed to take over approximately 65,000 TEUs of capacity previously operated by SeaLead, which they estimate equates to between 20 and 25 vessel charter transactions. “Six charter parties for the switchovers have already been concluded, while formalities for the rest of the plans are progressing,” said an industry source who didn’t want to be identified. India-Persian Gulf trades had already seen the entry of <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fopportunistic-regional-lines-rush-to-middle-east-corridor-amid-mainliner-pause-6193412&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C9365140523594abb902308deb734a18b%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639149633885935739%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=QOxNEJcFLBtbTnJ5tIo8dc9tRInjzi2fx7bFJbW2Y10%3D&amp;reserved=0">several other opportunistic ocean capacity participants</a>, driven by the allure of record-high freight yields. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

Emerging regional carrier CU Lines, formerly China United Lines, is rapidly consolidating its network operations, riding on a string of vessel charters it has snapped up as a result of Singapore-based SeaLead’s service terminations and exit from certain markets. CU has now launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions. A fleet of four ships, including the 10,000-TEU Express Berlin that CU Lines took over from SeaLead, has been deployed on a standalone China-Middle East Express (CGX) loop, with stops in India and Pakistan. The full CGX rotation is Qingdao, Shanghai, Ningbo, Shekou, Nansha, Port Klang, Mundra, Karachi, Sohar, Khor Fakkan and Qingdao. CU Lines noted that shippers on the trade lane have an opportunity to experience consistent sailings and better schedule reliability due to the use of “well-conditioned” tonnage. “Leveraging its existing REX Red Sea Express service, AEM Asia-East Mediterranean service and regional feeder network, CU Lines will provide customers with a Middle East service portfolio featuring direct priority services and diversified transport routes, aiming to ensure smooth supply chains,” the Shanghai-based liner said. Additionally, CU has opened dedicated shuttle operations on a rotation of Shanghai, Nansha, Khor Fakkan, and Shanghai in conjunction with Hong Kong-based T.S. Lines. Khor Fakkan and Fujairah in the United Arab Emirates and Sohar in Oman have become the contingency supply chain support for Middle East cargo flows hobbled by the war in the Middle East. Intra-Asia growth CU Lines also continues its growth in the intra-Asia market. The carrier recently joined a consortium led by Singapore-based X-Press Feeders for enhanced Southeast Asia-Indian subcontinent coverage. The joint service deploys three ships from X-Press Feeders and one vessel from CU Lines, ranging between 3,000 TEUs and 5,000 TEUs, with T.S. Lines as another consortium partner through a slot charter deal. More network expansion for CU Lines appears imminent as local industry sources with knowledge of the matter say the carrier has agreed to take over approximately 65,000 TEUs of capacity previously operated by SeaLead, which they estimate equates to between 20 and 25 vessel charter transactions. “Six charter parties for the switchovers have already been concluded, while formalities for the rest of the plans are progressing,” said an industry source who didn’t want to be identified. India-Persian Gulf trades had already seen the entry of several other opportunistic ocean capacity participants , driven by the allure of record-high freight yields. Contact Bency Mathew at bencyvmathew@gmail.com.

International ports

Container Shipping News

CU Lines’ network expansion gives fresh capacity influx into Middle East trades

Use code GTT26W at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code FTW25 at checkout to save 25% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

SUBSCRIBE AND SAVE

Use code GW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

SAVE $900 ON A GOLD SUBSCRIPTION

Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Wide Box

Subscribe Today

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code GW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Subscribe Now - Anonymous to Gold - Wide Box

SUBSCRIBE TODAY

Subscribe and Save: Use code FTW25 to save 25% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

SUBSCRIBE TODAY: Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Offer Box

UPGRADE TO GOLD AND SAVE: Use code GTT26W at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

Subscribe Now - Anonymous to Gold - Offer Box

SAVE $900 ON A GOLD SUBSCRIPTION: Use code GW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

SUBSCRIBE AND SAVE: Use code GW995 and save $500 on the first year of a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland26

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The latest port news from the Journal of Commerce spans the globe from North Carolina and Florida to Shanghai and Singapore. Port news includes port automation, terminal construction projects, the future of decarbonization and net-zero shipping, dredging, port hinterland connectivity, labor, disruption, port congestion and cargo flow.

Longshore labor

Drayage

Port infrastructure

Breakbulk ports

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

NY-NJ maritime industry honors ILA’s McNamara

ILWU chief slams ‘foreign shipping companies’ ahead of contract expiration

Evolution of ocean capacity linked to varied dynamics of trade needs