<div class="phx-topic abstract-wrapper">A Key West archaeologist who does consulting work for treasure hunter Mel Fisher will help identify</div>

A Key West archaeologist who does consulting work for treasure hunter Mel Fisher will help identify

<div>A Key West archaeologist who does consulting work for treasure hunter Mel Fisher will help identify the booty on a sunken Spanish galleon discovered by two Tampa men in waters south of the Florida Keys.Jim Sinclair, 31, who moved to Key West nine years ago from New Hampshire, said he will examine detailed videotape of the wreckage late next week. He already has viewed preliminary footage taken by a remote-controlled camera attached to the salvage and research vessel Seahawk.Treasure salvors Greg Stemm and John Morris, the Tampa owners of the Seahawk, believe they have discovered a 17th Century Spanish galleon...

A Key West archaeologist who does consulting work for treasure hunter Mel Fisher will help identify the booty on a sunken Spanish galleon discovered by two Tampa men in waters south of the Florida Keys. Jim Sinclair, 31, who moved to Key West nine years ago from New Hampshire, said he will examine detailed videotape of the wreckage late next week. He already has viewed preliminary footage taken by a remote-controlled camera attached to the salvage and research vessel Seahawk.Treasure salvors Greg Stemm and John Morris, the Tampa owners of the Seahawk, believe they have discovered a 17th Century Spanish galleon loaded with treasure. The two located the wreck April 21 within 50 miles of where Mr. Fisher found the gold and silver-laden Nuestra Senora de Atocha in 1984. "I've been asked to look at the videos to try to identify some of the materials," Mr. Sinclair said Friday. "After I complete that, I'll have more of an idea on what's there." The Atocha was under 54 feet of water, but this ship is 1,500 feet below the surface and all in one area. The Atocha was scattered across 11 miles. ''One of the challenges for me will be to do an adequate archaeological mapping on a site in that depth of water," Mr. Sinclair said. "It has never been done before." Mr. Sinclair said the initial videotapes reveal that the wreckage contains some valuables. The ship's bell, a bracelet and a ring have been identified. Also visible are more than 50 well-preserved olive oil jars, which could be filled with wine, water and other foods. ''The olive jars themselves are very valuable," Mr. Sinclair said. "If this ship is part of the 1622 fleet, chances are it was carrying valuable material." The jar rims, he said, appear to have designs that link them to the period between 1590 and 1680. Mr. Stemm and Mr. Morris may start exploring the wreck in detail in June with a manned underwater vehicle equipped with mechanical arms. The process of bringing up the treasure - if there is any - could take as long as five years, Mr. Sinclair said. For now, he will help to make an archaeological map of the ship and its contents. Mr. Sinclair started working as a consultant to Mel Fisher in 1980. He also helps establish laboratories for the preservation of sunken treasure and is a consultant to other private salvors. Even if there is little of value on board, Mr. Sinclair said the discovery of the ship is quite a historical coup. ''This is one of the more important wrecks to be found in the area," he said. "When we have a complete picture of this particular shipwreck, we can fit it into the entire scenario."

Maritime

ARCHAEOLOGIST TO HELP WITH IDENTIFICATION OF SUNKEN TREASURE

<div class="phx-topic abstract-wrapper">Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates. </div>

Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates.

Feature image

<div class="phx-topic">The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook.The big picture: The depression in demand that has gripped the US truckload sector for three years will likely continue through the first half of 2026. That could mean a sharper correction in capacity followed by higher rates late in the year or in 2027, which some believe will be the real recovery year for truckload carriers. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135199_0.1.jpg"></img></div>A look back: The recovery in trucking volumes many carriers and analysts had expected — or at least hoped for — at the start of 2025 failed to materialize as US manufacturing lost its early momentum and US tariffs distorted import demand. As a result, truckload spot rates stayed in the trough they’ve inhabited since mid-2022. Pricing rose and fell seasonally throughout 2025, and each minor gain was hailed as a potential turning point, but widespread overcapacity and the lack of a demand catalyst kept a lid on spot and contract rate hikes. Large truckload carriers cut their fleets in an attempt to match low levels of demand and preserve profit margins, dragging capacity to historic lows. The Journal of Commerce Truckload Capacity Index (TCI), a measure of actual truck counts at large publicly-owned carriers, dropped to 72.4% in the third quarter, an all-time low in two decades of TCI data. But the “long tail” of small truckload carriers remains long. More than 38,500 operating authorities were canceled between December 2022 and September 2025, but there were almost 90,000 more carriers that month than in December 2019, according to the Federal Motor Carrier Safety Administration (FMCSA). That underscores a shift, with more drivers moving to smaller trucking firms and those smaller firms proving more resilient than in the past. A look ahead: The resiliency demonstrated by small carriers is a significant break from previous economic downturns and, therefore, makes projections for 2026 more difficult. Analysts and large carrier executives have been predicting small fleets would fold and exit the market in increasing numbers for three years, and while rising costs and low demand will continue to squeeze those carriers, the number of companies closing their doors has slowed to a crawl. Just 1,500 operating authorities were revoked in the first nine months of 2025, down from 13,000 in 2024 and 25,000 in 2023, according to FMCSA data. Trucking executives believe a regulatory crackdown on non-domiciled commercial driver’s licenses and increased enforcement of English-language proficiency requirements will pull more drivers off the road, but whether these actions will take enough capacity out of service — and do so quickly enough — to move the needle on rates remains to be seen. Orders for new Class 8 trucks are expected to fall amid low rates, weak demand, tariffs and uncertainty over future emissions regulations, slowing the influx of additional capacity into the oversupplied truckload market. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5ef87bc3-b502-4e31-85d7-457673195134"></dynamic-object></div>The next inflection: Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates. US manufacturing output, as measured by the S&amp;P Global US Manufacturing Purchasing Managers’ Index (PMI), expanded sequentially for the fourth straight month in November, but growth remains constrained by uncertainty over tariffs, trade policy and consumer spending. Absent a sudden and unexpected demand spike, truckload contract rate increases will likely be limited to low single-digit percentages and spot pricing will likely remain depressed well into this year, if not 2027. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: The depression in demand that has gripped the US truckload sector for three years will likely continue through the first half of 2026. That could mean a sharper correction in capacity followed by higher rates late in the year or in 2027, which some believe will be the real recovery year for truckload carriers. A look back: The recovery in trucking volumes many carriers and analysts had expected — or at least hoped for — at the start of 2025 failed to materialize as US manufacturing lost its early momentum and US tariffs distorted import demand. As a result, truckload spot rates stayed in the trough they’ve inhabited since mid-2022. Pricing rose and fell seasonally throughout 2025, and each minor gain was hailed as a potential turning point, but widespread overcapacity and the lack of a demand catalyst kept a lid on spot and contract rate hikes. Large truckload carriers cut their fleets in an attempt to match low levels of demand and preserve profit margins, dragging capacity to historic lows. The Journal of Commerce Truckload Capacity Index (TCI), a measure of actual truck counts at large publicly-owned carriers, dropped to 72.4% in the third quarter, an all-time low in two decades of TCI data. But the “long tail” of small truckload carriers remains long. More than 38,500 operating authorities were canceled between December 2022 and September 2025, but there were almost 90,000 more carriers that month than in December 2019, according to the Federal Motor Carrier Safety Administration (FMCSA). That underscores a shift, with more drivers moving to smaller trucking firms and those smaller firms proving more resilient than in the past. A look ahead: The resiliency demonstrated by small carriers is a significant break from previous economic downturns and, therefore, makes projections for 2026 more difficult. Analysts and large carrier executives have been predicting small fleets would fold and exit the market in increasing numbers for three years, and while rising costs and low demand will continue to squeeze those carriers, the number of companies closing their doors has slowed to a crawl. Just 1,500 operating authorities were revoked in the first nine months of 2025, down from 13,000 in 2024 and 25,000 in 2023, according to FMCSA data. Trucking executives believe a regulatory crackdown on non-domiciled commercial driver’s licenses and increased enforcement of English-language proficiency requirements will pull more drivers off the road, but whether these actions will take enough capacity out of service — and do so quickly enough — to move the needle on rates remains to be seen. Orders for new Class 8 trucks are expected to fall amid low rates, weak demand, tariffs and uncertainty over future emissions regulations, slowing the influx of additional capacity into the oversupplied truckload market. The next inflection: Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates. US manufacturing output, as measured by the S&P Global US Manufacturing Purchasing Managers’ Index (PMI), expanded sequentially for the fourth straight month in November, but growth remains constrained by uncertainty over tariffs, trade policy and consumer spending. Absent a sudden and unexpected demand spike, truckload contract rate increases will likely be limited to low single-digit percentages and spot pricing will likely remain depressed well into this year, if not 2027. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Truckload

Surface

Persistent supply-demand imbalance to keep US truckload rates in check

<div class="phx-topic abstract-wrapper">Hapag-Lloyd’s investment in the Aracruz terminal project in Brazil is part of a plan announced by CEO Rolf Habben Jansen last March to expand the carrier’s ports network to more than 30 terminals by 2030.</div>

Hapag-Lloyd’s investment in the Aracruz terminal project in Brazil is part of a plan announced by CEO Rolf Habben Jansen last March to expand the carrier’s ports network to more than 30 terminals by 2030.

<div class="phx-topic">Hapag-Lloyd and Ocean Network Express (ONE) are expanding their container terminal portfolios with separate deals for facilities in Brazil and China, the carriers announced Tuesday. In Brazil, Hanseatic Global Terminals, Hapag-Lloyd’s ports division, has signed a joint venture agreement with the Imetame Group to take a 50% stake in Imetame Logística Porto (ILP), which focuses on container terminal operations. Under the deal, Hanseatic and Imetame will build and operate the 1.2 million-TEU capacity Hanseatic Global Terminals Aracruz container terminal at Aracruz in Brazil’s Espírito Santo state, about 310 miles north of Rio de Janeiro. The two companies declined to disclose the cost of the project, although local sources estimated the terminal would cost $486 million to build. The facility, with 2,461 feet of quay and water depth of 56 feet, is expected to start operations in mid-2028 and handle breakbulk in addition to containerized cargo. “Latin America is a key strategic market for Hanseatic Global Terminals and Hapag-Lloyd,” Dheeraj Bhatia, Hanseatic Global Terminals CEO, said in a statement. “Our joint venture with the Imetame Group and the development of a new transshipment hub and gateway port on Brazil’s east coast strengthens our terminal portfolio while addressing capacity constraints in a growth region.” Operations at some of Brazil’s existing ports, including Santos and Navegantes, are often disrupted due to bad weather, congestion and port construction work, according to advisories published by Hapag-Lloyd and forwarder Kuehne + Nagel. The investment in the Aracruz terminal project is part of a Hapag-Lloyd plan announced by CEO Rolf Habben Jansen last March to expand its ports network to more than 30 terminals by 2030. <h3>ONE extends terminal holdings </h3>Meanwhile, ONE has bolstered its container terminals portfolio after signing a deal to take a minority stake in Dalian Container Terminal (DCT) in northern China, the Singapore-headquartered carrier said. ONE did not disclose how large its interest will be, but the Dalian deal will add to its network that includes stakes in terminals in Los Angeles, Oakland, Rotterdam and Singapore. “This acquisition of a minority stake aligns with our strategy of ensuring access at key regional ports,” Hiroki Tsujii, global chief officer of ONE’s product and network division, said in a statement. “The ownership stake allows us to collaborate with DCT and contribute to its continued infrastructure development and green terminal initiatives.” DCT is one of the biggest container terminals in the region, with 14 container berths, a total quay length of 14,400 feet, and annual handling capacity of 6.6 million TEUs. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Hapag-Lloyd and Ocean Network Express (ONE) are expanding their container terminal portfolios with separate deals for facilities in Brazil and China, the carriers announced Tuesday. In Brazil, Hanseatic Global Terminals, Hapag-Lloyd’s ports division, has signed a joint venture agreement with the Imetame Group to take a 50% stake in Imetame Logística Porto (ILP), which focuses on container terminal operations. Under the deal, Hanseatic and Imetame will build and operate the 1.2 million-TEU capacity Hanseatic Global Terminals Aracruz container terminal at Aracruz in Brazil’s Espírito Santo state, about 310 miles north of Rio de Janeiro. The two companies declined to disclose the cost of the project, although local sources estimated the terminal would cost $486 million to build. The facility, with 2,461 feet of quay and water depth of 56 feet, is expected to start operations in mid-2028 and handle breakbulk in addition to containerized cargo. “Latin America is a key strategic market for Hanseatic Global Terminals and Hapag-Lloyd,” Dheeraj Bhatia, Hanseatic Global Terminals CEO, said in a statement. “Our joint venture with the Imetame Group and the development of a new transshipment hub and gateway port on Brazil’s east coast strengthens our terminal portfolio while addressing capacity constraints in a growth region.” Operations at some of Brazil’s existing ports, including Santos and Navegantes, are often disrupted due to bad weather, congestion and port construction work, according to advisories published by Hapag-Lloyd and forwarder Kuehne + Nagel. The investment in the Aracruz terminal project is part of a Hapag-Lloyd plan announced by CEO Rolf Habben Jansen last March to expand its ports network to more than 30 terminals by 2030. ONE extends terminal holdings Meanwhile, ONE has bolstered its container terminals portfolio after signing a deal to take a minority stake in Dalian Container Terminal (DCT) in northern China, the Singapore-headquartered carrier said. ONE did not disclose how large its interest will be, but the Dalian deal will add to its network that includes stakes in terminals in Los Angeles, Oakland, Rotterdam and Singapore. “This acquisition of a minority stake aligns with our strategy of ensuring access at key regional ports,” Hiroki Tsujii, global chief officer of ONE’s product and network division, said in a statement. “The ownership stake allows us to collaborate with DCT and contribute to its continued infrastructure development and green terminal initiatives.” DCT is one of the biggest container terminals in the region, with 14 container berths, a total quay length of 14,400 feet, and annual handling capacity of 6.6 million TEUs. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

Port infrastructure

Marine terminals

International ports

Container Shipping News

Hapag-Lloyd, ONE expand terminal networks with deals in Brazil, China

<div class="phx-topic abstract-wrapper">As 2026 begins, US import demand remains uncertain, but the record amounts of capacity container lines plan to deploy in January and February could put further pressure on already weak rates.</div>

As 2026 begins, US import demand remains uncertain, but the record amounts of capacity container lines plan to deploy in January and February could put further pressure on already weak rates.

<div class="phx-topic">The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: An injection of vessels pushed available capacity on the trans-Atlantic beyond market demand in 2025 despite relatively steady volumes. That leaves carriers with little leverage to raise rates from the sustained 16-month low reached in the fourth quarter. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135199_0.1.jpg"></img></div>A look back: US importers frontloading cargo ahead of threatened 30% tariffs on EU goods caused a spring volume surge on the westbound trans-Atlantic. US imports from North Europe peaked in March at 219,560 TEUs, up 14.3% from March 2024 and the third-highest total for any month in nearly nine years of data from PIERS, a sister product of the Journal of Commerce within S&amp;P Global. However, that momentum waned following a late-July trade deal that capped US tariffs on most EU imports at 15%, dragging year-over-year volume growth through November down to just 2.5%. At the same time, carriers added capacity to the trade via new and larger vessels. Mediterranean Shipping Co., for example, added a trans-Atlantic leg to its Asia-Mediterranean Dragon service, which operates with vessels averaging approximately 13,000 TEUs. For context, the largest vessel deployed on any other service between the Mediterranean and East Coast of North America was 9,600 TEUs. That helped boost the average size of container ships deployed on trans-Atlantic routes to nearly 6,200 TEUs in the third quarter, compared with 5,500 TEUs at the start of the year, according to data from Sea-Intelligence Maritime Analysis. A look ahead: As 2026 begins, US import demand remains uncertain, but the record amounts of capacity container lines plan to deploy in January and February could put further pressure on already weak rates. After briefly rising to $2,000 per FEU in March, average spot pricing from North Europe to the US East Coast has been stuck at $1,400 per FEU since early November, according to Platts, also part of S&amp;P Global. Even with a significant number of blank sailings, carriers plan to deploy more than 435,000 TEUs of capacity between North Europe and the US East and Gulf coasts in January and 390,000 TEUs in February, both of which would be all-time highs for the trade, according to eeSea. Further complicating demand projections are growing tensions over the implementation of the US-EU trade agreement. EU member states have been slow to approve the agreement — which would eliminate EU tariffs on most US products and reduce US tariffs on EU goods to 15% — on the grounds that it unfairly favors the US. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ba342d44-7d63-4c55-a3ba-b135fbe604e7"></dynamic-object></div>The next inflection: The trans-Atlantic is indirectly exposed to a resumption of regular Suez Canal transits. If congestion spreads across European ports, as predicted, when Asia-Europe vessels return to the Red Sea, it will be felt acutely on the shorter routes between Europe and the US East Coast. US importers would be wise to increase inventory levels of critical stock before carriers flip the Suez switch to mitigate any resulting disruption. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: An injection of vessels pushed available capacity on the trans-Atlantic beyond market demand in 2025 despite relatively steady volumes. That leaves carriers with little leverage to raise rates from the sustained 16-month low reached in the fourth quarter. A look back: US importers frontloading cargo ahead of threatened 30% tariffs on EU goods caused a spring volume surge on the westbound trans-Atlantic. US imports from North Europe peaked in March at 219,560 TEUs, up 14.3% from March 2024 and the third-highest total for any month in nearly nine years of data from PIERS, a sister product of the Journal of Commerce within S&P Global. However, that momentum waned following a late-July trade deal that capped US tariffs on most EU imports at 15%, dragging year-over-year volume growth through November down to just 2.5%. At the same time, carriers added capacity to the trade via new and larger vessels. Mediterranean Shipping Co., for example, added a trans-Atlantic leg to its Asia-Mediterranean Dragon service, which operates with vessels averaging approximately 13,000 TEUs. For context, the largest vessel deployed on any other service between the Mediterranean and East Coast of North America was 9,600 TEUs. That helped boost the average size of container ships deployed on trans-Atlantic routes to nearly 6,200 TEUs in the third quarter, compared with 5,500 TEUs at the start of the year, according to data from Sea-Intelligence Maritime Analysis. A look ahead: As 2026 begins, US import demand remains uncertain, but the record amounts of capacity container lines plan to deploy in January and February could put further pressure on already weak rates. After briefly rising to $2,000 per FEU in March, average spot pricing from North Europe to the US East Coast has been stuck at $1,400 per FEU since early November, according to Platts, also part of S&P Global. Even with a significant number of blank sailings, carriers plan to deploy more than 435,000 TEUs of capacity between North Europe and the US East and Gulf coasts in January and 390,000 TEUs in February, both of which would be all-time highs for the trade, according to eeSea. Further complicating demand projections are growing tensions over the implementation of the US-EU trade agreement. EU member states have been slow to approve the agreement — which would eliminate EU tariffs on most US products and reduce US tariffs on EU goods to 15% — on the grounds that it unfairly favors the US. The next inflection: The trans-Atlantic is indirectly exposed to a resumption of regular Suez Canal transits. If congestion spreads across European ports, as predicted, when Asia-Europe vessels return to the Red Sea, it will be felt acutely on the shorter routes between Europe and the US East Coast. US importers would be wise to increase inventory levels of critical stock before carriers flip the Suez switch to mitigate any resulting disruption. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Trans-Atlantic capacity injection overtakes market demand

<div class="phx-topic abstract-wrapper">The investment plan was developed amid growing alarm that the country is losing out in the trade stakes due to a lack of investment by South Korean companies in overseas logistics facilities.</div>

The investment plan was developed amid growing alarm that the country is losing out in the trade stakes due to a lack of investment by South Korean companies in overseas logistics facilities.

<div class="phx-topic">South Korea will invest $3 billion to expand the country’s global terminals and logistics network to help strengthen trade efforts in an increasingly challenging business environment. A three-point plan unveiled by the country’s Ocean and Fisheries Ministry Monday involves increasing the number of publicly-supported logistics facilities in other countries from nine to 40, securing investment in 10 overseas port terminals, and helping to develop three major logistics companies by 2030. Priority will be given to investing in storage and processing facilities, including warehouses and container yards in 11 existing target markets that include the US, Canada, Mexico, Vietnam, Indonesia, Thailand, Germany and Poland. The 11 were chosen based on the volume of import and export trade with South Korea over the past 10 years. “Securing overseas logistics bases is a key task for stabilizing the supply chain in an uncertain logistics environment,” Vice Minister of Oceans and Fisheries Kim Seong-beom said in a statement announcing the initiative. “...We will strengthen our logistics competitiveness and firmly support the import and export economy.” Most of the investment will be overseen by the government-backed Korea Ocean Business Corporation (KOBC). The plan calls for the creation of a foreign terminal investment group involving KOBC, shipping companies, logistics operators and port authorities such as Busan that will assess potential terminal targets and develop expansion strategies. Also part of the proposal is the creation of a container terminal investment fund that will be given $670 million to secure stakes in foreign terminals “and use this as a springboard to secure terminal operation rights in the future,” the ministry said. Cash available through KOBC’s Global Logistics Supply Chain Investment Fund will double to $1.3 billion to help small and medium-sized logistics companies expand overseas. <h3>Shift in global trade environment </h3>The investment plan was developed amid growing alarm that South Korea is losing out in the trade stakes due to the lack of investment by South Korean companies in overseas logistics facilities. “Due to changes in the global trade environment represented by tariff hikes, the protracted Russia-Ukraine war, the Red Sea conflict, and the intensification of the climate crisis, supply chain instability has been increasing in the global logistics market in recent years,” the ministry said. “As a result, logistics companies and shipping companies in various countries are strengthening their market dominance by securing logistics infrastructure and acquiring container terminals.” Only 9% of the overseas logistics centers operated by 15 of South Korea’s top companies are owned facilities, while the rest are leased, the ministry said. “There is a high risk of disruption in the provision of logistics services due to the rapid rise in logistics costs and difficulty in securing facilities at the right time in the event of a supply chain crisis,” it said. The ministry pointed out that only seven South Korean companies have stakes in overseas container terminals. They include HMM, which has interests in six terminals including Long Beach, Tacoma, Singapore and Algeciras; CJ Logistics, with facilities in Shenyang in northern China, Klang in Malaysia, and Thailand; and Lotte Global Logistics, which has warehouses in Vietnam, the Philippines and Europe. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

South Korea will invest $3 billion to expand the country’s global terminals and logistics network to help strengthen trade efforts in an increasingly challenging business environment. A three-point plan unveiled by the country’s Ocean and Fisheries Ministry Monday involves increasing the number of publicly-supported logistics facilities in other countries from nine to 40, securing investment in 10 overseas port terminals, and helping to develop three major logistics companies by 2030. Priority will be given to investing in storage and processing facilities, including warehouses and container yards in 11 existing target markets that include the US, Canada, Mexico, Vietnam, Indonesia, Thailand, Germany and Poland. The 11 were chosen based on the volume of import and export trade with South Korea over the past 10 years. “Securing overseas logistics bases is a key task for stabilizing the supply chain in an uncertain logistics environment,” Vice Minister of Oceans and Fisheries Kim Seong-beom said in a statement announcing the initiative. “...We will strengthen our logistics competitiveness and firmly support the import and export economy.” Most of the investment will be overseen by the government-backed Korea Ocean Business Corporation (KOBC). The plan calls for the creation of a foreign terminal investment group involving KOBC, shipping companies, logistics operators and port authorities such as Busan that will assess potential terminal targets and develop expansion strategies. Also part of the proposal is the creation of a container terminal investment fund that will be given $670 million to secure stakes in foreign terminals “and use this as a springboard to secure terminal operation rights in the future,” the ministry said. Cash available through KOBC’s Global Logistics Supply Chain Investment Fund will double to $1.3 billion to help small and medium-sized logistics companies expand overseas. Shift in global trade environment The investment plan was developed amid growing alarm that South Korea is losing out in the trade stakes due to the lack of investment by South Korean companies in overseas logistics facilities. “Due to changes in the global trade environment represented by tariff hikes, the protracted Russia-Ukraine war, the Red Sea conflict, and the intensification of the climate crisis, supply chain instability has been increasing in the global logistics market in recent years,” the ministry said. “As a result, logistics companies and shipping companies in various countries are strengthening their market dominance by securing logistics infrastructure and acquiring container terminals.” Only 9% of the overseas logistics centers operated by 15 of South Korea’s top companies are owned facilities, while the rest are leased, the ministry said. “There is a high risk of disruption in the provision of logistics services due to the rapid rise in logistics costs and difficulty in securing facilities at the right time in the event of a supply chain crisis,” it said. The ministry pointed out that only seven South Korean companies have stakes in overseas container terminals. They include HMM, which has interests in six terminals including Long Beach, Tacoma, Singapore and Algeciras; CJ Logistics, with facilities in Shenyang in northern China, Klang in Malaysia, and Thailand; and Lotte Global Logistics, which has warehouses in Vietnam, the Philippines and Europe. Contact Keith Wallis at keithwallis@hotmail.com .

South Korea to invest $3 billion expanding foreign logistics, terminal network

<div class="phx-topic abstract-wrapper">ONE and SM Line are ocean carrier partners to Union Pacific on the West Coast, and a majority of UP’s international intermodal volume originates at the Port of Los Angeles. </div>

ONE and SM Line are ocean carrier partners to Union Pacific on the West Coast, and a majority of UP’s international intermodal volume originates at the Port of Los Angeles.

<div class="phx-topic">Union Pacific Railroad (UP) has received support from the Port of Los Angeles and ocean carriers Ocean Network Express (ONE) and SM Lines for its proposed acquisition of Norfolk Southern Railway (NS), with the parties citing faster transit times, potential new business opportunities and reduced drayage costs for international intermodal freight. ONE and SM Line are ocean carrier partners to Union Pacific on the West Coast, and a majority of UP’s international intermodal volume originates at the Port of Los Angeles. All three provided letters of support for the $85 billion acquisition that were included in the <a href="https://www.joc.com/article/up-in-merger-filing-vows-to-convert-millions-of-loads-to-intermodal-annually-6138380">nearly 7,000-page application</a> UP filed Friday with the US Surface Transportation Board, which needs to approve the merger. “The merger has the potential to remove several days delay from existing transit times,” wrote Tim Walsh, ONE’s senior vice president of product and network in the US. “The resulting improvement in continuity of service and transit times will enhance ONE’s ability to reliably serve our existing customers and expand our capacity to serve US customers that require faster, more dependable cargo transportation.” SM Line said the combined railroad would enable intermodal service for shippers that do not currently use rail, while POLA emphasized the implications for US exporters. “The unified network expands the reach and speed-to-market for American exports ... thereby reinforcing the Port of Los Angeles’ role in driving national economic growth,” wrote Gene Seroka, the port’s executive director. A primary benefit for international intermodal is reducing the need for long-haul and cross-town truck drayage. UP estimates that approximately 67,000 long-haul drays could be eliminated annually if the merger with NS is approved. The estimate includes three regional dray moves that would disappear: Chicago to Detroit and Toledo, Ohio — ranging from 230 to 290 miles — and Memphis to Huntsville, Alabama, nearly 215 miles. UP estimates that $112.8 million in annual long-haul drayage costs incurred by shippers would be eliminated. While UP does not break out international versus domestic intermodal in its estimate, the issue is more pronounced for ocean containers. Truckload pricing often makes it difficult to win domestic intermodal freight that requires drays of 200 miles or more. By contrast, many beneficial cargo owners (BCOs) prefer long-haul drays to avoid added handling and potential cargo damage during transloading. “The post-merger addition of single-line service linking terminals closer to the freight could result in 100% of this traffic switching to an extended haul,” David Hunt and Matthew Schabas of Oliver Wyman, a consultancy firm hired by UP to analyze the transaction, wrote in the application. “Shippers would benefit from reducing drayage miles and, as a result, their door-to-door cost per shipment.” The analysis did not include Louisville, Kentucky, despite Union Pacific and Norfolk Southern announcing a <a href="https://www.joc.com/article/up-ns-joint-intermodal-service-to-link-west-coast-with-louisville-in-midwest-6080692">joint service</a> to the city earlier this year. While the service was marketed as a domestic intermodal product, ocean containers are often interspersed within longer domestic intermodal trains. Union Pacific does not expect a sharp surge in Louisville traffic. The application states that annual lift capacity in Louisville currently stands at 140,000 units and would rise to 145,000 units following the merger — an increase of 3.6%. By contrast, UP projects lift capacity to increase 17% to 227,000 units annually in Toledo and surge 50% to 219,000 units annually in Detroit. <h3>Cross-town drayage reductions </h3>The formal merger application also projects a significant reduction in cross-town drayage within Chicago. In 2023, UP and NS said an average of 1,139 containers per day were interchanged between the railroads, including via trucks and a third-party switching railroad known as the Belt Railway of Chicago. Both options can add a day or more to the transit times on containers. The merger should eliminate more than 500 crosstown drays, known as “rubber tire” interchanges, per day, or more than 100,000 hauls on Chicago’s roadways annually. Across the US, the application identifies 82 specific intermodal routes where containers will stay on the rail for the entire journey but today require a cross-town dray between two terminals. “Intermodal companies currently tasked with trucking their containers between UP and NS intermodal yards in Chicago, Kansas City, St. Louis and Memphis will finally be able to leave their trailers and containers on railcars for the entirety of the move,” Scott Harris, chief commercial officer of drayage provider CAD Logistics, wrote in the application. “This time and cost savings will help US intermodal traffic grow over the next decade.” UP and NS estimate that approximately 250,000 annual rail lifts across Chicago, Kansas City, St. Louis and Memphis currently dedicated to cross-town drayage would be eliminated, saving about $12 million per year and freeing crane capacity to load and unload other containers more efficiently. The merger would not eliminate all cross-town drayage, however. Chicago hosts six Class I railroads, while Memphis has five and Kansas City four, meaning terminal-to-terminal drayage will remain necessary. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Union Pacific Railroad (UP) has received support from the Port of Los Angeles and ocean carriers Ocean Network Express (ONE) and SM Lines for its proposed acquisition of Norfolk Southern Railway (NS), with the parties citing faster transit times, potential new business opportunities and reduced drayage costs for international intermodal freight. ONE and SM Line are ocean carrier partners to Union Pacific on the West Coast, and a majority of UP’s international intermodal volume originates at the Port of Los Angeles. All three provided letters of support for the $85 billion acquisition that were included in the nearly 7,000-page application UP filed Friday with the US Surface Transportation Board, which needs to approve the merger. “The merger has the potential to remove several days delay from existing transit times,” wrote Tim Walsh, ONE’s senior vice president of product and network in the US. “The resulting improvement in continuity of service and transit times will enhance ONE’s ability to reliably serve our existing customers and expand our capacity to serve US customers that require faster, more dependable cargo transportation.” SM Line said the combined railroad would enable intermodal service for shippers that do not currently use rail, while POLA emphasized the implications for US exporters. “The unified network expands the reach and speed-to-market for American exports ... thereby reinforcing the Port of Los Angeles’ role in driving national economic growth,” wrote Gene Seroka, the port’s executive director. A primary benefit for international intermodal is reducing the need for long-haul and cross-town truck drayage. UP estimates that approximately 67,000 long-haul drays could be eliminated annually if the merger with NS is approved. The estimate includes three regional dray moves that would disappear: Chicago to Detroit and Toledo, Ohio — ranging from 230 to 290 miles — and Memphis to Huntsville, Alabama, nearly 215 miles. UP estimates that $112.8 million in annual long-haul drayage costs incurred by shippers would be eliminated. While UP does not break out international versus domestic intermodal in its estimate, the issue is more pronounced for ocean containers. Truckload pricing often makes it difficult to win domestic intermodal freight that requires drays of 200 miles or more. By contrast, many beneficial cargo owners (BCOs) prefer long-haul drays to avoid added handling and potential cargo damage during transloading. “The post-merger addition of single-line service linking terminals closer to the freight could result in 100% of this traffic switching to an extended haul,” David Hunt and Matthew Schabas of Oliver Wyman, a consultancy firm hired by UP to analyze the transaction, wrote in the application. “Shippers would benefit from reducing drayage miles and, as a result, their door-to-door cost per shipment.” The analysis did not include Louisville, Kentucky, despite Union Pacific and Norfolk Southern announcing a joint service to the city earlier this year. While the service was marketed as a domestic intermodal product, ocean containers are often interspersed within longer domestic intermodal trains. Union Pacific does not expect a sharp surge in Louisville traffic. The application states that annual lift capacity in Louisville currently stands at 140,000 units and would rise to 145,000 units following the merger — an increase of 3.6%. By contrast, UP projects lift capacity to increase 17% to 227,000 units annually in Toledo and surge 50% to 219,000 units annually in Detroit. Cross-town drayage reductions The formal merger application also projects a significant reduction in cross-town drayage within Chicago. In 2023, UP and NS said an average of 1,139 containers per day were interchanged between the railroads, including via trucks and a third-party switching railroad known as the Belt Railway of Chicago. Both options can add a day or more to the transit times on containers. The merger should eliminate more than 500 crosstown drays, known as “rubber tire” interchanges, per day, or more than 100,000 hauls on Chicago’s roadways annually. Across the US, the application identifies 82 specific intermodal routes where containers will stay on the rail for the entire journey but today require a cross-town dray between two terminals. “Intermodal companies currently tasked with trucking their containers between UP and NS intermodal yards in Chicago, Kansas City, St. Louis and Memphis will finally be able to leave their trailers and containers on railcars for the entirety of the move,” Scott Harris, chief commercial officer of drayage provider CAD Logistics, wrote in the application. “This time and cost savings will help US intermodal traffic grow over the next decade.” UP and NS estimate that approximately 250,000 annual rail lifts across Chicago, Kansas City, St. Louis and Memphis currently dedicated to cross-town drayage would be eliminated, saving about $12 million per year and freeing crane capacity to load and unload other containers more efficiently. The merger would not eliminate all cross-town drayage, however. Chicago hosts six Class I railroads, while Memphis has five and Kansas City four, meaning terminal-to-terminal drayage will remain necessary. Contact Ari Ashe at ari.ashe@spglobal.com .

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