<div class="phx-topic abstract-wrapper">The Argentine government's plan to privatize the country's airports has fallen behind schedule as a </div>

The Argentine government's plan to privatize the country's airports has fallen behind schedule as a

<div>The Argentine government's plan to privatize the country's airports has fallen behind schedule as a new intergovernmental committee takes the measure back to the drawing board.In a sudden change of plans, President Carlos Menem recently set up a special committee that will oversee the privatization of the network ofairports now operated by the Ministry of Defense.Using nearly $12 million in financing from the World Bank, the Argentine government may be one of the first Latin American countries to give private companies a chance to run its airports.The intergovernmental committee is to develop a list of international consortiums that must be...

The Argentine government's plan to privatize the country's airports has fallen behind schedule as a new intergovernmental committee takes the measure back to the drawing board. In a sudden change of plans, President Carlos Menem recently set up a special committee that will oversee the privatization of the network of airports now operated by the Ministry of Defense.Using nearly $12 million in financing from the World Bank, the Argentine government may be one of the first Latin American countries to give private companies a chance to run its airports. The intergovernmental committee is to develop a list of international consortiums that must be approved by the World Bank. One consortium will be chosen to evaluate each airport's financial structure, safety conditions, traffic flows and other operating factors. Bids will then be sought from firms interested in operating the airports through a concession agreement with the government. But sources say the move to set up a new committee duplicates work done before by the government ministries. The committee includes officials from the ministries of Economy, Defense, Tourism, Interior and Justice. At the beginning of the year, the government already had several international consortiums - composed of experts in the investment banking, legal and aviation sectors - interested in bidding on the study. The firms included the First National Bank of Chicago, Morgan Stanley & Co., Deloitte & Touche, Goldman Sachs & Co., Mercer Management Consulting and the British Airport Authority. World Bank officials had already approved the firms on the "short list" and the government was ready to select a consortium, sources said. "Some privatizations, like the telephones, moved more quickly, things like this are moving more slowly," said a source, who declined to be identified. ''The airports are going to be privatized . . . it's a matter of when. But this seems like a delaying tactic." Since 1989, the Argentine government has sold off scores of other former state-owned businesses, from water to telephones to petrochemicals, in one of Latin America's most ambitious privatization programs. Yet the Defense and Economy ministries have continued to squabble over moves to privatize the airports, cargo handling and storage services.

ARGENTINE AIRPORT PLAN RETURNS TO THE DRAWING BOARD

<div class="phx-topic abstract-wrapper">Citing “the complex and uncertain international context,” the carrier said proforma voyages through the Suez that were confirmed last month would remain diverted via the Cape of Good Hope in southern Africa.</div>

Citing “the complex and uncertain international context,” the carrier said proforma voyages through the Suez that were confirmed last month would remain diverted via the Cape of Good Hope in southern Africa.

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<div class="phx-topic">CMA CGM on Tuesday said it would scale back plans to reroute three Asia-Europe westbound services through the Red Sea and Suez that were announced just last month. The carrier’s about-face is a glaring example of the delicate balancing act facing liners as they chart a return to transits through the Red Sea while also acknowledging that the returns may be short-lived. The move comes as Maersk last week announced its scheduled MECL service from India to the US East Coast would resume Suez sailings from Jan. 26. Citing “the complex and uncertain international context,” CMA CGM said in a statement that proforma voyages through the Suez that were confirmed last month on Asia-Europe would remain diverted via the Cape of Good Hope in southern Africa. "The CMA CGM Group has decided for time being to reroute vessels deployed on our FAL 1, FAL 3 and MEX services via the Cape of Good Hope,” the carrier said in a statement, adding that the Suez situation would be regularly reviewed.   For carriers, the risks to crew and brand that come with a Suez/Red Sea return are high – despite Houthi rebels  in November that ship attacks would end – on top of the additional costs of diverting vessels should attacks resume.  There’s also the commercial concern of staying competitive with Suez transits offering up to 10-day shorter transits from Asia to Europe, and the larger risk of released capacity that would put immense downward pressure on rates. Carriers also must weigh the willingness of shippers and insurers to allow cargo to return to a potentially volatile route. “A hybrid routing is going to be the prevailing mode for this year, whereby carriers are going to start with more backhaul and lower-value cargo in Suez transits but keep on using the Cape of Good Hope for the higher value head-haul voyages,” Simon Heaney, senior manager of container research at Drewry, told a webinar hosted by the maritime consultant Tuesday. "This is going to mean that more effective capacity will be drip fed back into the market over the course of the year and won't happen all at once,” he added. “It will give carriers more time to assess the risk-reward position, prepare their future networks and prevent a total collapse in pricing.” Still, Heaney warned that overcapacity in the market would bring down rates, “regardless of how quickly Suez transits resume.” It was a position supported by transport analysts at HSBC, who said in a market update Tuesday that a swift return to Suez could cause a short-term increase in rates, but prices would decline through 2026. “Spot freight rates could fall significantly and also weigh on this year’s trans-Pacific (service contract talks) in April and May,” HSBC said. <h3>Some scheduled services take shorter route </h3>Ocean carriers have been increasing their transits via the Suez and Red Sea recently, encouraged by the absence of Houthi attacks that began in late 2023 and forced lengthy diversions around southern Africa.   The working approach so far, led by CMA CGM and with Maersk and other carriers starting to follow, has been to route India-US services through the Suez. CMA CGM is operating its  service from India to the US via the Suez and <a href="https://www.joc.com/article/Maersk%20set%20to%20resume%20regular%20Suez%20transits%20on%20India-USEC%20'MECL'%20loop:%20sources%20%7C%20Journal%20of%20Commerce">Maersk will resume sailings for its MECL (India, Middle East-US East Coast) service</a> via the Red Sea and Suez Canal from Jan. 26. The Ocean Alliance has scheduled all eastbound legs of its NEU4 Asia-Europe service from January and its MED2 Asia-Mediterranean service from February via the Suez. Getting shippers onboard will be a crucial part of the Suez-return puzzle. Some shippers tell the Journal of Commerce that directives from their C-suites prevent them from considering Suez voyages despite the better transit time. Other cargo owners have no problem using the Egyptian waterway, like the supply chain director for a Europe-based shipper. "Our global insurance policy isn’t significantly affected by shipping through the Red Sea, so if the services are there and the cost makes sense, then there wouldn’t be much stopping us from using them,” the source said. “But it all seems very tentative,” he added. “I think what we’re seeing is the tension between carriers wanting to attract cargo by offering a diverse mix of transit times, and a fear of crashing the market or a return to bunching at the ports in Asia and Europe.” Drewry noted that insurance costs were less of an impediment, with premiums expressed as a percentage of the vessel hull value currently about 0.2% or 0.3%, down from a high of 1% in the two years since the Red Sea attacks began. <h3>Two-route voyage schedule </h3>Drewry’s expectations of a two-route Suez-Africa voyage schedule this year reflected the cautious approach from carriers and alliances, as well as shippers that want to avoid valuable cargo being put at risk while factoring into contracts any resumption of the shorter route. "We know that depending on the direction of the voyage and the size of the ship, the multiple of the goods value versus the ship value can range from five to 10 times,” Heaney told the webinar.   Most of the Asia-Europe annual contracting has been completed for the year, with shippers and forwarders telling the Journal of Commerce that a return to the Suez has been factored in. "We have built some flex into our negotiations on these lanes this year that allows for a renegotiation in case there is a sudden rush back to the Red Sea route,” the head of logistics at a European retailer said. It was an approach supported by Philip Damas, managing director of Drewry Shipping Consultants, who said low rates were a given through 2026 while shippers were asking for two rates -- one for current transits via the Cape and one for the Suez.  “That option makes it easier to later effectively apply the relevant rates,” Damas told the Drewry webinar. “Another option is to negotiate based on the Cape routing and have a specific review clause that when the Suez Canal transits resume fully, there will be a renegotiation. Having that clause up front is probably easier.”  Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.    </div>

CMA CGM on Tuesday said it would scale back plans to reroute three Asia-Europe westbound services through the Red Sea and Suez that were announced just last month. The carrier’s about-face is a glaring example of the delicate balancing act facing liners as they chart a return to transits through the Red Sea while also acknowledging that the returns may be short-lived.  The move comes as Maersk last week announced its scheduled MECL service from India to the US East Coast would resume Suez sailings from Jan. 26.  Citing “the complex and uncertain international context,” CMA CGM said in a statement that proforma voyages through the Suez that were confirmed last month on Asia-Europe would remain diverted via the Cape of Good Hope in southern Africa.  "The CMA CGM Group has decided for time being to reroute vessels deployed on our FAL 1, FAL 3 and MEX services via the Cape of Good Hope,” the carrier said in a statement, adding that the Suez situation would be regularly reviewed.    For carriers, the risks to crew and brand that come with a Suez/Red Sea return are high – despite Houthi rebels  in November that ship attacks would end – on top of the additional costs of diverting vessels should attacks resume.   There’s also the commercial concern of staying competitive with Suez transits offering up to 10-day shorter transits from Asia to Europe, and the larger risk of released capacity that would put immense downward pressure on rates. Carriers also must weigh the willingness of shippers and insurers to allow cargo to return to a potentially volatile route.  “A hybrid routing is going to be the prevailing mode for this year, whereby carriers are going to start with more backhaul and lower-value cargo in Suez transits but keep on using the Cape of Good Hope for the higher value head-haul voyages,” Simon Heaney, senior manager of container research at Drewry, told a webinar hosted by the maritime consultant Tuesday.  "This is going to mean that more effective capacity will be drip fed back into the market over the course of the year and won't happen all at once,” he added. “It will give carriers more time to assess the risk-reward position, prepare their future networks and prevent a total collapse in pricing.”  Still, Heaney warned that overcapacity in the market would bring down rates, “regardless of how quickly Suez transits resume.”  It was a position supported by transport analysts at HSBC, who said in a market update Tuesday that a swift return to Suez could cause a short-term increase in rates, but prices would decline through 2026.  “Spot freight rates could fall significantly and also weigh on this year’s trans-Pacific (service contract talks) in April and May,” HSBC said.  Some scheduled services take shorter route  Ocean carriers have been increasing their transits via the Suez and Red Sea recently, encouraged by the absence of Houthi attacks that began in late 2023 and forced lengthy diversions around southern Africa.    The working approach so far, led by CMA CGM and with Maersk and other carriers starting to follow, has been to route India-US services through the Suez. CMA CGM is operating its  service from India to the US via the Suez and  Maersk will resume sailings for its MECL (India, Middle East-US East Coast) service  via the Red Sea and Suez Canal from Jan. 26.  The Ocean Alliance has scheduled all eastbound legs of its NEU4 Asia-Europe service from January and its MED2 Asia-Mediterranean service from February via the Suez.  Getting shippers onboard will be a crucial part of the Suez-return puzzle. Some shippers tell the Journal of Commerce that directives from their C-suites prevent them from considering Suez voyages despite the better transit time. Other cargo owners have no problem using the Egyptian waterway, like the supply chain director for a Europe-based shipper.  "Our global insurance policy isn’t significantly affected by shipping through the Red Sea, so if the services are there and the cost makes sense, then there wouldn’t be much stopping us from using them,” the source said.  “But it all seems very tentative,” he added. “I think what we’re seeing is the tension between carriers wanting to attract cargo by offering a diverse mix of transit times, and a fear of crashing the market or a return to bunching at the ports in Asia and Europe.”  Drewry noted that insurance costs were less of an impediment, with premiums expressed as a percentage of the vessel hull value currently about 0.2% or 0.3%, down from a high of 1% in the two years since the Red Sea attacks began.  Two-route voyage schedule  Drewry’s expectations of a two-route Suez-Africa voyage schedule this year reflected the cautious approach from carriers and alliances, as well as shippers that want to avoid valuable cargo being put at risk while factoring into contracts any resumption of the shorter route.  "We know that depending on the direction of the voyage and the size of the ship, the multiple of the goods value versus the ship value can range from five to 10 times,” Heaney told the webinar.    Most of the Asia-Europe annual contracting has been completed for the year, with shippers and forwarders telling the Journal of Commerce that a return to the Suez has been factored in.  "We have built some flex into our negotiations on these lanes this year that allows for a renegotiation in case there is a sudden rush back to the Red Sea route,” the head of logistics at a European retailer said.  It was an approach supported by Philip Damas, managing director of Drewry Shipping Consultants, who said low rates were a given through 2026 while shippers were asking for two rates -- one for current transits via the Cape and one for the Suez.   “That option makes it easier to later effectively apply the relevant rates,” Damas told the Drewry webinar. “Another option is to negotiate based on the Cape routing and have a specific review clause that when the Suez Canal transits resume fully, there will be a renegotiation. Having that clause up front is probably easier.”   Contact Greg Knowler at  greg.knowler@spglobal.com .     

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Container Shipping News

Maritime

CMA CGM backs off plans to resume Suez transits for Asia-Europe services 

<div class="phx-topic abstract-wrapper">A drop in air freight charter rates has put the option of project cargoes moving by air back on the table.</div>

A drop in air freight charter rates has put the option of project cargoes moving by air back on the table.

<div class="phx-topic">Air freight specialists are predicting buoyant times ahead for project cargo as shippers seek certainty amid geopolitical and trade upheaval. Shippers are increasingly balancing out the extra cost of using air freight against the penalties or costs of a project being delivered late if they opt for sea freight, experts say. Dan Morgan-Evans, group director for cargo at specialist air freight broker Air Charter Service (ACS), said he is seeing a pattern. “Some projects have a rush of air freight at the start, then use shipping, then there is a rush of air freight at the end,” he said. Project cargo freight forwarder Trans Global Projects (TGP) launched a dedicated air freight department in Bremen, Germany, on Jan. 5 to expand its capabilities for time-critical and complex cargo operating under its own International Air Transport Association (IATA) license. Swiss company Natco held an IATA license in Bremen before becoming part of TGP a decade ago, but since then TGP has been booking air freight from Bremen through other IATA licensed forwarders. “As a strategic investment, it makes sense to reactivate our IATA license,” Andreas Menzel, TGP’s managing director for Germany and Benelux, told the Journal of Commerce. “We do see some of our customers looking for quick solutions. With all the trade interruptions globally, including the Suez Canal and other impacts, air freight is becoming more and more critical to deliver time-sensitive cargo.” Bremen will serve as a hub for urgent shipments and engineered solutions, supported by Natco’s air freight and air charter expertise and TGP’s global resources, he added. <h3>Lower charter costs attract cargoes </h3>Uncertainty in the heavy-lift air cargo market is creating opportunities, said Morgan-Evans. “Last year there were all sorts of ups and downs and uncertainties in the market,” he said. “Our teams are buoyant about the idea of project cargo this year simply because air freight prices have dropped and the cost of an aircraft charter is much lower than in previous years. This should give us an opportunity.” He said that over the past five years, the cost of aircraft charters has been so high that project cargo air freight volumes were below pre-COVID levels. “With prices now down and choice and competitiveness in the market, pricing is more at a level that facilitates project cargo air freight movements,” Morgan-Evans said. Menzel added that uncertainty is a factor for TGP, too. “With all the global political and short-term changes, it is never easy to do a steady plan,” he said. “We have to adapt and adjust to specific impacts.” That said, TGP is focusing on some growing sectors in its planning, including power, oil and gas, mining and renewables. “For large projects like substations and power plants, the closer it gets to the ‘go live’ date, basically the more air freight is being requested, especially because in the finalization of projects, there may be missing or damaged material,” Menzel said. Morgan-Evans also pointed to major opportunities coming out of China and other Asia-Pacific countries. “We see a lot more movement from China into Africa, South America, Latin America and Europe, whether that’s construction work for big projects, oil and gas or mining – we can see projects coming up in all these sectors,” he said. While mid-January is early to offer any certainty on project cargo air freight prospects, Morgan-Evans said ACS was working on a number of international inquiries for project cargo. “I caveat everything with what Trump does, but we are pretty confident this will be a good year for project cargo for us,” he said. Contact Felicity Landon on <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com.</a></div>

Air freight specialists are predicting buoyant times ahead for project cargo as shippers seek certainty amid geopolitical and trade upheaval. Shippers are increasingly balancing out the extra cost of using air freight against the penalties or costs of a project being delivered late if they opt for sea freight, experts say. Dan Morgan-Evans, group director for cargo at specialist air freight broker Air Charter Service (ACS), said he is seeing a pattern. “Some projects have a rush of air freight at the start, then use shipping, then there is a rush of air freight at the end,” he said. Project cargo freight forwarder Trans Global Projects (TGP) launched a dedicated air freight department in Bremen, Germany, on Jan. 5 to expand its capabilities for time-critical and complex cargo operating under its own International Air Transport Association (IATA) license. Swiss company Natco held an IATA license in Bremen before becoming part of TGP a decade ago, but since then TGP has been booking air freight from Bremen through other IATA licensed forwarders. “As a strategic investment, it makes sense to reactivate our IATA license,” Andreas Menzel, TGP’s managing director for Germany and Benelux, told the Journal of Commerce. “We do see some of our customers looking for quick solutions. With all the trade interruptions globally, including the Suez Canal and other impacts, air freight is becoming more and more critical to deliver time-sensitive cargo.” Bremen will serve as a hub for urgent shipments and engineered solutions, supported by Natco’s air freight and air charter expertise and TGP’s global resources, he added. Lower charter costs attract cargoes Uncertainty in the heavy-lift air cargo market is creating opportunities, said Morgan-Evans. “Last year there were all sorts of ups and downs and uncertainties in the market,” he said. “Our teams are buoyant about the idea of project cargo this year simply because air freight prices have dropped and the cost of an aircraft charter is much lower than in previous years. This should give us an opportunity.” He said that over the past five years, the cost of aircraft charters has been so high that project cargo air freight volumes were below pre-COVID levels. “With prices now down and choice and competitiveness in the market, pricing is more at a level that facilitates project cargo air freight movements,” Morgan-Evans said. Menzel added that uncertainty is a factor for TGP, too. “With all the global political and short-term changes, it is never easy to do a steady plan,” he said. “We have to adapt and adjust to specific impacts.” That said, TGP is focusing on some growing sectors in its planning, including power, oil and gas, mining and renewables. “For large projects like substations and power plants, the closer it gets to the ‘go live’ date, basically the more air freight is being requested, especially because in the finalization of projects, there may be missing or damaged material,” Menzel said. Morgan-Evans also pointed to major opportunities coming out of China and other Asia-Pacific countries. “We see a lot more movement from China into Africa, South America, Latin America and Europe, whether that’s construction work for big projects, oil and gas or mining – we can see projects coming up in all these sectors,” he said. While mid-January is early to offer any certainty on project cargo air freight prospects, Morgan-Evans said ACS was working on a number of international inquiries for project cargo. “I caveat everything with what Trump does, but we are pretty confident this will be a good year for project cargo for us,” he said. Contact Felicity Landon on felicity@felicitylandon.com.

Air Cargo Forwarder News

Air Cargo Carriers News

Project cargo

Air Cargo

Fast-tracked project schedules boost heavy-lift air freight volumes

<div class="phx-topic abstract-wrapper">The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date.</div>

The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date.

<div class="phx-topic">The US Surface Transportation Board dealt a blow Friday to Union Pacific Railroad’s $85 billion deal to acquire Norfolk Southern Railway, ruling the merger application UP filed last month is “incomplete.” The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date. UP must inform the STB before Feb. 17 whether it plans to refile an amended application, and can refile any time prior to June 22. Once resubmitted, the STB will initiate a similar 30-day review of the application’s completeness, which likely means it will not issue a final decision on the merger itself until at least the second half of 2027. "Given the deficiencies...the board finds the application is incomplete and, under the terms of the statute, must be rejected,” STB wrote in its ruling. “The board’s decision to reject the application should not be read as an indication of how the board might ultimately assess any revised application or future informational needs, should applicants decide to submit a revised application." In Friday’s 15-page decision, the STB highlighted three major deficiencies in the application, which was submitted by UP on Dec. 19. First, the regulators ruled that the traffic analysis underpinning the application is deficient because it uses market share totals from 2023 and fails to provide future market share projections. Second, the STB took issue with UP failing to disclose what’s called a “Schedule 5.8.” The document defines what counts as a “materially burdensome regulatory condition,” a regulatory outcome that could give UP the contractual right to walk away from the deal. UP had argued that the document didn’t need to be disclosed to the STB because it contains attorney-related work products. BNSF Railway, Canadian Pacific Kansas City, and Canadian National all filed objections to UP’s application based on the first two issues that were flagged by STB. The STB also found that the related Terminal Railroad Association of St. Louis control application was misclassified as a “minor” transaction instead of a “significant” transaction. STB applies different procedural and evidentiary requirements to major, significant, and minor transactions. By deeming something significant instead of minor, it means the board wants to examine the issues involved more closely. The STB also noted several minor, technical issues that should be addressed in a revised application. While the board did not specify what those issues were, a Journal of Commerce analysis of the application found spelling errors and cities labeled with the incorrect state. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

The US Surface Transportation Board dealt a blow Friday to Union Pacific Railroad’s $85 billion deal to acquire Norfolk Southern Railway, ruling the merger application UP filed last month is “incomplete.” The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date. UP must inform the STB before Feb. 17 whether it plans to refile an amended application, and can refile any time prior to June 22. Once resubmitted, the STB will initiate a similar 30-day review of the application’s completeness, which likely means it will not issue a final decision on the merger itself until at least the second half of 2027. "Given the deficiencies...the board finds the application is incomplete and, under the terms of the statute, must be rejected,” STB wrote in its ruling. “The board’s decision to reject the application should not be read as an indication of how the board might ultimately assess any revised application or future informational needs, should applicants decide to submit a revised application." In Friday’s 15-page decision, the STB highlighted three major deficiencies in the application, which was submitted by UP on Dec. 19. First, the regulators ruled that the traffic analysis underpinning the application is deficient because it uses market share totals from 2023 and fails to provide future market share projections. Second, the STB took issue with UP failing to disclose what’s called a “Schedule 5.8.” The document defines what counts as a “materially burdensome regulatory condition,” a regulatory outcome that could give UP the contractual right to walk away from the deal. UP had argued that the document didn’t need to be disclosed to the STB because it contains attorney-related work products. BNSF Railway, Canadian Pacific Kansas City, and Canadian National all filed objections to UP’s application based on the first two issues that were flagged by STB. The STB also found that the related Terminal Railroad Association of St. Louis control application was misclassified as a “minor” transaction instead of a “significant” transaction. STB applies different procedural and evidentiary requirements to major, significant, and minor transactions. By deeming something significant instead of minor, it means the board wants to examine the issues involved more closely. The STB also noted several minor, technical issues that should be addressed in a revised application. While the board did not specify what those issues were, a Journal of Commerce analysis of the application found spelling errors and cities labeled with the incorrect state. Contact Ari Ashe at ari.ashe@spglobal.com

Rail News

North-American rail

Surface

STB rejects UP-NS merger application as ‘incomplete’

<div class="phx-topic abstract-wrapper">The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.</div>

The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.

<div class="phx-topic">Longshore workers in Washington State have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment but also ban the “purchase [of] fully automated marine container cargo handling equipment.”The bill is a follow-up to 2021 legislation that also blocked state funding for automated cargo handling equipment but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind <a href="https://www.joc.com/article/stakeholders-differ-on-newsoms-move-to-kill-automation-ban-at-california-ports-6097378">an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid</a>.<h3>Union questions state funds for marine terminals</h3>Dan McKisson, president of ILWU Washington Area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit [terminals] from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.”Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCRs) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and have led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers.“That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.”Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Longshore workers in Washington State have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment but also ban the “purchase [of] fully automated marine container cargo handling equipment.” The bill is a follow-up to 2021 legislation that also blocked state funding for automated cargo handling equipment but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid . Union questions state funds for marine terminals Dan McKisson, president of ILWU Washington Area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit [terminals] from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.” Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCRs) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and have led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers. “That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.” Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Longshore labor

Marine terminals

Washington State weighs permanent ban on funding port automation

<div class="phx-topic abstract-wrapper">The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. </div>

The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators.

<div class="phx-topic">Multipurpose vessel (MPV) operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-metric ton cranes to give a combined lifting capacity of 500 metric tons, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates about 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at <a href=" keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Multipurpose vessel (MPV) operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-metric ton cranes to give a combined lifting capacity of 500 metric tons, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates about 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at keithwallis@hotmail.com .

Energy projects

Heavy-haul transport

Breakbulk News

Carriers expand MPV fleets with $450 million in new vessel orders

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