<div class="phx-topic abstract-wrapper">Kintetsu World Express, Japan&amp;rsquo;s second-largest international forwarder, posted consolidated net profit of $97.5 million for the first nine months of its f</div>

Kintetsu World Express, Japan&rsquo;s second-largest international forwarder, posted consolidated net profit of $97.5 million for the first nine months of its f

<div><a>Kintetsu World Express</a>, Japan&amp;rsquo;s second-largest international forwarder, posted consolidated net profit of $97.5 million for the first nine months of its fiscal year, up 16.5 percent from a year earlier. Group operating profit in the April-December 2011 period increased 23 percent to $131.9 million, despite flat operating revenue of $2.6 billion. Operating revenue in the Americas, which include the U.S., Canada and Latin America, increased 6.4 percent in the period from a year earlier to $330.4 million. Operating profit in that region edged down 0.7 percent to $19.6 million. &amp;ldquo;The global economy was generally lackluster because of growing concerns about...

Kintetsu World Express , Japan&rsquo;s second-largest international forwarder, posted consolidated net profit of $97.5 million for the first nine months of its fiscal year, up 16.5 percent from a year earlier. Group operating profit in the April-December 2011 period increased 23 percent to $131.9 million, despite flat operating revenue of $2.6 billion. Operating revenue in the Americas, which include the U.S., Canada and Latin America, increased 6.4 percent in the period from a year earlier to $330.4 million. Operating profit in that region edged down 0.7 percent to $19.6 million. &ldquo;The global economy was generally lackluster because of growing concerns about a recession amid the widening debt crisis in Europe and signs that growth in such emerging economies as China and India was also slowing,&rdquo; Tokyo-based KWE said in announcing the results. &ldquo;Against this backdrop, although Japan&rsquo;s economy is gradually recovering, its economic outlook grew increasingly uncertain for various reasons, including the impact of the Great East Japan Earthquake , a slump in demand overseas and the prolonged yen appreciation.&rdquo; KWE&rsquo;s air cargo transportation volume fell in the period year-over-year because of the earthquake and a decline in global demand for such products as flat-panel televisions and personal computers. Its sea cargo services grew moderately, however. The company left unchanged its full-year group operating revenue and profit forecasts announced last November. The company&rsquo;s full-year projections are: $3.5 billion in group operating revenue, up 1.6 percent from fiscal 2010; $170.5 million in group operating profit, up 11.8 percent; $118.0 million in group net profit, up 16.7 percent. Contact Hisane Masaki at yiu45535@nifty.com .

Maritime

Air Cargo

Kintetsu World Express Profit Jumps 16.5 Percent

<div class="phx-topic abstract-wrapper">Volumes under contract when the Middle East war began were locked into quarterly bunker fuel adjustments, and those costs are set to be passed on to shippers at the start of the third quarter.</div>

Volumes under contract when the Middle East war began were locked into quarterly bunker fuel adjustments, and those costs are set to be passed on to shippers at the start of the third quarter.

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<div class="phx-topic">Cargo owners are accelerating shipments on the Asia-Europe ocean trade to get ahead of the next quarterly bunker fuel adjustment due July 1, with strong demand seen into June. Bunker costs rocketed higher following the start of the Middle East war on Feb. 28, and although emergency fuel surcharges were quickly levied on spot shipments, cargo under contract was locked into quarterly bunker adjustment factors (BAFs). Those costs will now be passed on to shippers in the third quarter, according to Thomas Cassuto, senior vice president of air and ocean at forwarder CEVA Logistics. “We are seeing exceptionally strong shipper demand in late May across most major trade lanes, including Asia-North Europe and Asia-Med, with momentum expected to continue through June,” Cassuto told the Journal of Commerce. “The key driver is a sharp acceleration in bookings from major beneficial cargo owners (BCOs) seeking to move cargo ahead of July 1,” he noted. “From that date, most large shippers will face an automatic increase in freight rates linked to quarterly BAF adjustments.” Data from Vizion indicates bookings from China to the Mediterranean are up almost 50% over the past two weeks and 36% higher to North Europe in what looks to be an early start to the peak shipping season. Traditionally, Asia-Europe peak season activity begins in late June and continues to China’s Golden Week in early October. Recent global disruptions have made seasonal patterns increasingly unpredictable, with last year’s peak season barely getting started and this year demand picking up strongly in May and June. <h3>Robust forward bookings </h3>Kuehne + Nagel and DHL Global Forwarding both reported robust forward bookings and rising rates on the Asia-Europe trade lane, despite an increase in deployed capacity and a cut in blank sailings. Data from eeSea, part of rate benchmarking platform Xeneta, shows capacity on Asia-North Europe in May will be up 16% from April at 1.2 million TEUs, with blank sailings down 5%. In June, planned capacity will fall to 1.1 million TEUs while planned blank sailings will be halved. "We are observing an increased demand for Asia-Europe, partly driven by an earlier peak season linked to extended transit times and lower capacity due to the rerouting (around the Cape of Good Hope),” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, told the Journal of Commerce. “This is consistent with patterns seen last year,” he added. “Demand is expected to remain strong in the coming months; however, visibility remains limited as energy costs and rates continue to be a concern.” A spokesperson for DHL Global Forwarding said there was “significant demand” on Asia-Europe, accompanied by a substantial increase in rates. “Vessels are operating at full capacity, and bookings need to be made well in advance,” the spokesperson said. “In addition, there are capacity restrictions in place, and securing space requires a mix of NAC (named accounts) and FAK (freight-all-kinds).” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3e0caaad-ce43-47fa-b859-a779e74cb6a4"></dynamic-object></div>Named accounts are long-term contracts between carriers and customers that guaranteed space and equipment at fixed rates, while cargo moved under FAK is subject to the spot market. Cassuto said vessels out of Asia were fully booked four to five weeks in advance, which has prompted carriers to implement general rate increases and peak season surcharges. “We expect this pattern to extend into July and overlap with what is traditionally the peak season for Christmas shipments, which effectively started earlier this year,” he said. <h3>Hefty rate increases announced for June 1 </h3>Several carriers this week announced June 1 rate increases on eastbound corridors, with Asia to North Europe FAK rates moving to $4,300-$4,700 per FEU and Asia-East Mediterranean rates at $5,500-$5,700/FEU. If they stick, the FAK increases will be at a significant premium to spot rates currently at $2,900/FEU on Asia-North Europe and $4,000/FEU for Asia to the Mediterranean, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. "I would be very surprised if those spot rates are not going to trend up over the upcoming couple of weeks as we see significant overbooking and as such, there is certainly not a lot of downward pressure on pricing,” Hapag-Lloyd CEO Rolf Habben Jansen said in a media briefing following the carrier’s first-quarter results. “If anything, there is upward pressure, which probably a little bit later than we would have liked, but I think you will start seeing that.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="af999948-957c-4237-b7e6-873522d9fd5b"></dynamic-object></div>In a market update Friday, HSBC highlighted the demand holding up in container shipping. The bank’s transportation analysts said the global container trade rose 4.4% year over year in the first quarter, with Maersk and Hapag-Lloyd expecting demand to remain strong through Q2 and the third-quarter peak season because of disruption-related frontloading. Still, fuel and network cost pressures are building, Cassuto noted, which would place European import volumes from Asia under increasing pressure. “We are anticipating higher energy costs, persistent inflation and elevated inventory levels to weigh on trade flows in the second half of 2026, leading to a gradual slowdown in volumes,” the CEVA executive said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

Cargo owners are accelerating shipments on the Asia-Europe ocean trade to get ahead of the next quarterly bunker fuel adjustment due July 1, with strong demand seen into June. Bunker costs rocketed higher following the start of the Middle East war on Feb. 28, and although emergency fuel surcharges were quickly levied on spot shipments, cargo under contract was locked into quarterly bunker adjustment factors (BAFs). Those costs will now be passed on to shippers in the third quarter, according to Thomas Cassuto, senior vice president of air and ocean at forwarder CEVA Logistics. “We are seeing exceptionally strong shipper demand in late May across most major trade lanes, including Asia-North Europe and Asia-Med, with momentum expected to continue through June,” Cassuto told the Journal of Commerce. “The key driver is a sharp acceleration in bookings from major beneficial cargo owners (BCOs) seeking to move cargo ahead of July 1,” he noted. “From that date, most large shippers will face an automatic increase in freight rates linked to quarterly BAF adjustments.” Data from Vizion indicates bookings from China to the Mediterranean are up almost 50% over the past two weeks and 36% higher to North Europe in what looks to be an early start to the peak shipping season. Traditionally, Asia-Europe peak season activity begins in late June and continues to China’s Golden Week in early October. Recent global disruptions have made seasonal patterns increasingly unpredictable, with last year’s peak season barely getting started and this year demand picking up strongly in May and June. Robust forward bookings Kuehne + Nagel and DHL Global Forwarding both reported robust forward bookings and rising rates on the Asia-Europe trade lane, despite an increase in deployed capacity and a cut in blank sailings. Data from eeSea, part of rate benchmarking platform Xeneta, shows capacity on Asia-North Europe in May will be up 16% from April at 1.2 million TEUs, with blank sailings down 5%. In June, planned capacity will fall to 1.1 million TEUs while planned blank sailings will be halved. "We are observing an increased demand for Asia-Europe, partly driven by an earlier peak season linked to extended transit times and lower capacity due to the rerouting (around the Cape of Good Hope),” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, told the Journal of Commerce. “This is consistent with patterns seen last year,” he added. “Demand is expected to remain strong in the coming months; however, visibility remains limited as energy costs and rates continue to be a concern.” A spokesperson for DHL Global Forwarding said there was “significant demand” on Asia-Europe, accompanied by a substantial increase in rates. “Vessels are operating at full capacity, and bookings need to be made well in advance,” the spokesperson said. “In addition, there are capacity restrictions in place, and securing space requires a mix of NAC (named accounts) and FAK (freight-all-kinds).” Named accounts are long-term contracts between carriers and customers that guaranteed space and equipment at fixed rates, while cargo moved under FAK is subject to the spot market. Cassuto said vessels out of Asia were fully booked four to five weeks in advance, which has prompted carriers to implement general rate increases and peak season surcharges. “We expect this pattern to extend into July and overlap with what is traditionally the peak season for Christmas shipments, which effectively started earlier this year,” he said. Hefty rate increases announced for June 1 Several carriers this week announced June 1 rate increases on eastbound corridors, with Asia to North Europe FAK rates moving to $4,300-$4,700 per FEU and Asia-East Mediterranean rates at $5,500-$5,700/FEU. If they stick, the FAK increases will be at a significant premium to spot rates currently at $2,900/FEU on Asia-North Europe and $4,000/FEU for Asia to the Mediterranean, according to Platts, a sister company of the Journal of Commerce within S&P Global. "I would be very surprised if those spot rates are not going to trend up over the upcoming couple of weeks as we see significant overbooking and as such, there is certainly not a lot of downward pressure on pricing,” Hapag-Lloyd CEO Rolf Habben Jansen said in a media briefing following the carrier’s first-quarter results. “If anything, there is upward pressure, which probably a little bit later than we would have liked, but I think you will start seeing that.” In a market update Friday, HSBC highlighted the demand holding up in container shipping. The bank’s transportation analysts said the global container trade rose 4.4% year over year in the first quarter, with Maersk and Hapag-Lloyd expecting demand to remain strong through Q2 and the third-quarter peak season because of disruption-related frontloading. Still, fuel and network cost pressures are building, Cassuto noted, which would place European import volumes from Asia under increasing pressure. “We are anticipating higher energy costs, persistent inflation and elevated inventory levels to weigh on trade flows in the second half of 2026, leading to a gradual slowdown in volumes,” the CEVA executive said. Contact Greg Knowler at greg.knowler@spglobal.com.

Container lines

Forwarding

Asia-Europe

Container Shipping News

Demand rising on Asia-Europe ocean trade as July bunker hike looms

<div class="phx-topic abstract-wrapper">A lead time of five to seven years to build up domestic crane manufacturing capacity could cripple the US heavy-lift industry if tariffs on imported products are not reduced, industry stakeholders say. </div>

A lead time of five to seven years to build up domestic crane manufacturing capacity could cripple the US heavy-lift industry if tariffs on imported products are not reduced, industry stakeholders say.

<div class="phx-topic">US heavy-lift lobbyists are pushing the federal government for relief from tariffs amid growing concerns about potential new trade levies and their repercussions for the project cargo sector. The Specialized Carriers &amp; Rigging Association (SC&amp;RA), the largest trade group representing the US heavy-lift industry, is awaiting federal action after testifying in front of the US International Trade Commission with a request to exempt crane and trailer imports from Canada, the EU and Japan from new Section 301 tariffs. The US Section 301 provision authorizes the Office of the US Trade Representative (USTR) to investigate and impose retaliatory tariffs against foreign countries with trade practices it deems “unfair” to US interests. Those efforts have largely been focused on Chinese trade, but the US has also opened investigations into the practices of several other countries, including Canada, Japan and parts of the EU. Joel Dandrea, president and CEO of the SC&amp;RA, told the Journal of Commerce the 1,350-member international trade group is not opposed to tariffs and supports the Trump administration’s efforts to balance trade fairly. But he said the ever-changing succession of tariffs has made it difficult to budget, plan and forecast for equipment purchases, cargo moves and critical infrastructure projects. ”The tariffs that are placed upon our industry really need to be fair and reasonable, and what we’re seeing at this point are tariff levels that we believe are not reasonable,” Dandrea said. Testifying on behalf of the SC&amp;RA at a May 5 International Trade Commission hearing on tariff investigations, Mike Appling, CEO of LiftHigh Cranes &amp; Rigging, told the ITC that the group supports addressing China’s structural overcapacity. “But the EU, Canada and Japan are proven, trusted allies that do not engage in industrial overcapacity, dumping, forced labor or any other unfair trade practice with respect to these products,” he said. “There is no basis for including their merchandise within the scope of proposed Section 301 action.” Appling said roughly 80% of the cranes used in US construction are imported, and less than 3% of all global all-terrain cranes are manufactured domestically. No US company manufactures tower cranes, and the lead time to build additional domestic manufacturing capacity is five to seven years. “Critical infrastructure projects — data centers, nuclear facilities, LNG terminals, semiconductor fabrication plants, defense installations — cannot pause while that capacity develops,” he said. The problem extends up the supply chain, Appling said, as ultra-high-strength steel grades essential to crane and trailer manufacturing are not produced domestically in sufficient quantities, and US steel manufacturers have indicated there is no compelling business case to do so. During his ITC testimony, Appling outlined a series of requests the SC&amp;RA submitted on April 15 to the USTR: the exemption of cranes, trailers and parts imported from the EU, Canada and Japan from Section 301 tariffs, a 24-month phase-in period for any new tariffs imposed on equipment from those nations, and “proportionate” tariff rates on Chinese products. The proposal included a call for no stacking of Section 301 tariffs on top of existing steel tariffs imposed under Section 232. Citing limited domestic supplies, the SC&amp;RA also proposed tariff exemptions on ultra-high-strength steel, which is used to manufacture cranes and trailers. “This is precisely the wrong moment to impose additional cost burdens on the only viable alternative to Chinese equipment,” Appling said. <h3>High costs, thin margins </h3>The SC&amp;RA’s proposal to the USTR is the latest plea from the association to ease the burdens of tariffs on the heavy-lift and transport industry. Dandrea, who attended the ITC hearing and has been a vocal advocate for tariff relief, said the industry was critical to US construction. “You can have raw steel manufactured, but if there’s no one to transport it, lift it and build with it, it’s of no value,” he said. Dandrea said steel tariffs currently imposed under Section 232, along with related measures, are causing delays for equipment purchases and infrastructure projects while driving up costs — forcing some companies to pause or reconsider those purchases altogether. “When you add $300,000 or $400,000 or $500,000 to the cost of a crane coming from Germany or Japan, or $100,000 or $200,000 to the cost of a highly specialized construction trailer, you can’t just click your fingers from a purchasing standpoint and say we’re going to absorb those costs and quickly turn around and pass those costs onto customers,” he said. The Trump administration in April agreed to adjust Section 232 tariffs on steel derivative products from 50% of their full customs value to 25%. Dandrea said SC&amp;RA would like to see those tariffs reduced further, from 25% to 15%, and for the USTR to ensure that Section 301 tariffs are not stacked on top of those existing tariffs. Dandrea expects it will take until July before the USTR responds to SC&amp;RA’s request, but said the association remains optimistic. “The move to 25% was a move in the right direction,” he said. “But the costs are still too high for an industry operating on thin margins.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

US heavy-lift lobbyists are pushing the federal government for relief from tariffs amid growing concerns about potential new trade levies and their repercussions for the project cargo sector. The Specialized Carriers & Rigging Association (SC&RA), the largest trade group representing the US heavy-lift industry, is awaiting federal action after testifying in front of the US International Trade Commission with a request to exempt crane and trailer imports from Canada, the EU and Japan from new Section 301 tariffs. The US Section 301 provision authorizes the Office of the US Trade Representative (USTR) to investigate and impose retaliatory tariffs against foreign countries with trade practices it deems “unfair” to US interests. Those efforts have largely been focused on Chinese trade, but the US has also opened investigations into the practices of several other countries, including Canada, Japan and parts of the EU. Joel Dandrea, president and CEO of the SC&RA, told the Journal of Commerce the 1,350-member international trade group is not opposed to tariffs and supports the Trump administration’s efforts to balance trade fairly. But he said the ever-changing succession of tariffs has made it difficult to budget, plan and forecast for equipment purchases, cargo moves and critical infrastructure projects. ”The tariffs that are placed upon our industry really need to be fair and reasonable, and what we’re seeing at this point are tariff levels that we believe are not reasonable,” Dandrea said. Testifying on behalf of the SC&RA at a May 5 International Trade Commission hearing on tariff investigations, Mike Appling, CEO of LiftHigh Cranes & Rigging, told the ITC that the group supports addressing China’s structural overcapacity. “But the EU, Canada and Japan are proven, trusted allies that do not engage in industrial overcapacity, dumping, forced labor or any other unfair trade practice with respect to these products,” he said. “There is no basis for including their merchandise within the scope of proposed Section 301 action.” Appling said roughly 80% of the cranes used in US construction are imported, and less than 3% of all global all-terrain cranes are manufactured domestically. No US company manufactures tower cranes, and the lead time to build additional domestic manufacturing capacity is five to seven years. “Critical infrastructure projects — data centers, nuclear facilities, LNG terminals, semiconductor fabrication plants, defense installations — cannot pause while that capacity develops,” he said. The problem extends up the supply chain, Appling said, as ultra-high-strength steel grades essential to crane and trailer manufacturing are not produced domestically in sufficient quantities, and US steel manufacturers have indicated there is no compelling business case to do so. During his ITC testimony, Appling outlined a series of requests the SC&RA submitted on April 15 to the USTR: the exemption of cranes, trailers and parts imported from the EU, Canada and Japan from Section 301 tariffs, a 24-month phase-in period for any new tariffs imposed on equipment from those nations, and “proportionate” tariff rates on Chinese products. The proposal included a call for no stacking of Section 301 tariffs on top of existing steel tariffs imposed under Section 232. Citing limited domestic supplies, the SC&RA also proposed tariff exemptions on ultra-high-strength steel, which is used to manufacture cranes and trailers. “This is precisely the wrong moment to impose additional cost burdens on the only viable alternative to Chinese equipment,” Appling said. High costs, thin margins The SC&RA’s proposal to the USTR is the latest plea from the association to ease the burdens of tariffs on the heavy-lift and transport industry. Dandrea, who attended the ITC hearing and has been a vocal advocate for tariff relief, said the industry was critical to US construction. “You can have raw steel manufactured, but if there’s no one to transport it, lift it and build with it, it’s of no value,” he said. Dandrea said steel tariffs currently imposed under Section 232, along with related measures, are causing delays for equipment purchases and infrastructure projects while driving up costs — forcing some companies to pause or reconsider those purchases altogether. “When you add $300,000 or $400,000 or $500,000 to the cost of a crane coming from Germany or Japan, or $100,000 or $200,000 to the cost of a highly specialized construction trailer, you can’t just click your fingers from a purchasing standpoint and say we’re going to absorb those costs and quickly turn around and pass those costs onto customers,” he said. The Trump administration in April agreed to adjust Section 232 tariffs on steel derivative products from 50% of their full customs value to 25%. Dandrea said SC&RA would like to see those tariffs reduced further, from 25% to 15%, and for the USTR to ensure that Section 301 tariffs are not stacked on top of those existing tariffs. Dandrea expects it will take until July before the USTR responds to SC&RA’s request, but said the association remains optimistic. “The move to 25% was a move in the right direction,” he said. “But the costs are still too high for an industry operating on thin margins.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk carriers

Breakbulk News

Heavy-lift trade group lobbies USTR for relief from crane, trailer tariffs

<div class="phx-topic abstract-wrapper">Tirschwell, who most recently served as vice president of the Journal of Commerce, announced his plans to leave the business and continue work as an independent shipping journalist. </div>

Tirschwell, who most recently served as vice president of the Journal of Commerce, announced his plans to leave the business and continue work as an independent shipping journalist.

<div class="phx-topic">Peter Tirschwell this week ended a 34-year tenure at the Journal of Commerce from which he rose from a cub reporter to become the world’s leading maritime journalist, and founder and chair of the largest container shipping conference in the world. Tirschwell, who most recently served as vice president of the Journal of Commerce, announced his plans to leave the business and continue work as an independent shipping journalist. He leaves behind a senior leadership team dedicated to providing the shipping industry with the essential news and analysis that it has for 199 years, while bringing industry stakeholders together at JOC’s three conferences: TPM in Long Beach, Inland Distribution in Chicago, and Breakbulk &amp; Project Cargo in New Orleans. "Peter’s departure from the Journal of Commerce caps a remarkable journey that began as a general assignment reporter in New York and took him to increasingly senior roles as West Coast bureau chief, managing editor, editor-in-chief, and ultimately to leader of the business,” said Chris Brooks, executive director of the Journal of Commerce and Tirschwell’s longtime colleague. “His contributions, including a recent two-year stint in Singapore to promote the Journal of Commerce’s global growth strategy, have been immeasurable.” Tirschwell, a New York City native with figurative saltwater in his veins, helped make the Journal of Commerce the premier global shipping publication and grow TPM from some 150 people in its first year to a global event attracting more than 4,000 people annually. That, along with his regular analysis and reporting and frequent speeches at industry events, helped make him one of the most respected and unbiased voices and experts in the shipping industry. The Journal of Commerce thanks Peter Tirschwell for his leadership, vision, mentorship, and camaraderie as it moves into a new chapter on the eve of its 200th birthday, dedicated to providing the news, information and events the shipping industry depends upon. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

Peter Tirschwell this week ended a 34-year tenure at the Journal of Commerce from which he rose from a cub reporter to become the world’s leading maritime journalist, and founder and chair of the largest container shipping conference in the world. Tirschwell, who most recently served as vice president of the Journal of Commerce, announced his plans to leave the business and continue work as an independent shipping journalist. He leaves behind a senior leadership team dedicated to providing the shipping industry with the essential news and analysis that it has for 199 years, while bringing industry stakeholders together at JOC’s three conferences: TPM in Long Beach, Inland Distribution in Chicago, and Breakbulk & Project Cargo in New Orleans. "Peter’s departure from the Journal of Commerce caps a remarkable journey that began as a general assignment reporter in New York and took him to increasingly senior roles as West Coast bureau chief, managing editor, editor-in-chief, and ultimately to leader of the business,” said Chris Brooks, executive director of the Journal of Commerce and Tirschwell’s longtime colleague. “His contributions, including a recent two-year stint in Singapore to promote the Journal of Commerce’s global growth strategy, have been immeasurable.” Tirschwell, a New York City native with figurative saltwater in his veins, helped make the Journal of Commerce the premier global shipping publication and grow TPM from some 150 people in its first year to a global event attracting more than 4,000 people annually. That, along with his regular analysis and reporting and frequent speeches at industry events, helped make him one of the most respected and unbiased voices and experts in the shipping industry. The Journal of Commerce thanks Peter Tirschwell for his leadership, vision, mentorship, and camaraderie as it moves into a new chapter on the eve of its 200th birthday, dedicated to providing the news, information and events the shipping industry depends upon. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Supply chain

Peter Tirschwell leaves enduring legacy on Journal of Commerce

<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.

<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 with 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 with 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

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 (AgTC) 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 (AgTC) 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 .

Marine terminals

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

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