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<div class="phx-topic abstract-wrapper">The unanimous decision prevents the carrier from immediately implementing the fee, which is meant to help recoup fuel costs on US trades that have been driven higher due to the war with Iran.</div>

The unanimous decision prevents the carrier from immediately implementing the fee, which is meant to help recoup fuel costs on US trades that have been driven higher due to the war with Iran.

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<div class="phx-topic">The Federal Maritime Commission (FMC) has rejected a second request from Maersk to waive a 30-day notice period for the implementation of an emergency fuel surcharge, a spokesperson for the agency said Friday. The unanimous rejection prevents the carrier from immediately implementing the fee, which is meant to help recoup fuel costs on US trades that have been driven higher due to the war with Iran. Still, Maersk will only have to wait until April 8 to formally implement the fee, given that its <a href="https://www.joc.com/article/maersk-again-asks-fmc-to-waive-30-day-review-period-for-emergency-fuel-surcharge-6197792">waiver request to the FMC was made on March 11.</a>An April 3 letter from the FMC to Maersk said the carrier “failed to provide good cause” for the agency to waive the 30-day waiting period, and referred to a prior statement from FMC Chairman Laura DiBella that carriers should provide data behind the decision to levy the emergency surcharges and specify a duration, so, as DiBella said, the fee is “reasonably related to the increased costs.” In its petition, Maersk stressed that the surcharges were tied only to higher fuel prices, pointing to how low-sulfur bunker fuel prices jumped 82% on average, to $929 per metric ton, between Feb. 6 and March 9; the war began Feb. 28. The carrier justified the emergency fuel surcharge, saying it couldn’t fully absorb the higher prices that “are likely to remain elevated and volatile given the uncertainty of the duration of hostilities and their impact on the price of oil and bunker fuel.” The surcharge Maersk will implement next week amounts to $200 per TEU for US head-haul trades and $100 per TEU for the backhaul. This week’s rejection of Maersk’s waiver request was the second time in 11 days the carrier was turned down. The FMC <a href="https://www.joc.com/article/fmc-rejects-requests-by-carriers-to-waive-waiting-period-for-middle-east-surcharges-6191881">on March 23 rejected requests</a> from Maersk, CMA CGM, Hapag-Lloyd, and Zim Integrated Shipping Services to waive the 30-day waiting period for an initial round of emergency fuel surcharges. <h3>Costs rise as concerns grow over fuel availability </h3>Shipper groups, including the Agriculture Transportation Coalition, are skeptical of ocean carriers imposing higher fuel surcharges given that it’s not clear how the surcharge amounts were calculated and that freight-all-kinds (FAK) rates include fuel costs. For contract rates, the so-called bunker adjustment factor (BAF) adjusts to higher fuel prices, but it can take up to two months to calibrate to the new levels, hampering ocean carriers’ cash flow in the short-term. The cost of war-related disruption has been substantial. Hapag-Lloyd, for example, is facing $40 million to $50 million per week in higher operating expenses due to war, now in its fifth week, <a href="https://www.joc.com/article/war-adding-40-50-million-per-week-to-hapag-lloyds-costs-ceo-6193532">CEO Rolf Habben Jansen told reporters on March 26.</a> But the higher price of bunker fuel isn’t the only problem. Fuel availability, particularly in Asia, is becoming a growing concern for ocean carriers, with analysts warning that the world’s largest bunkering hub of Singapore <a href="https://www.joc.com/article/singapore-bunker-supply-continues-to-run-down-as-middle-east-war-drags-on-6198359">has less than a month’s supply remaining and no replenishment in sight</a>. If bunker fuel scarcity worsens, container lines could be forced to sail slower, take alternative routes, or blank sailings. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com.</a></div>

The Federal Maritime Commission (FMC) has rejected a second request from Maersk to waive a 30-day notice period for the implementation of an emergency fuel surcharge, a spokesperson for the agency said Friday. The unanimous rejection prevents the carrier from immediately implementing the fee, which is meant to help recoup fuel costs on US trades that have been driven higher due to the war with Iran. Still, Maersk will only have to wait until April 8 to formally implement the fee, given that its waiver request to the FMC was made on March 11. An April 3 letter from the FMC to Maersk said the carrier “failed to provide good cause” for the agency to waive the 30-day waiting period, and referred to a prior statement from FMC Chairman Laura DiBella that carriers should provide data behind the decision to levy the emergency surcharges and specify a duration, so, as DiBella said, the fee is “reasonably related to the increased costs.” In its petition, Maersk stressed that the surcharges were tied only to higher fuel prices, pointing to how low-sulfur bunker fuel prices jumped 82% on average, to $929 per metric ton, between Feb. 6 and March 9; the war began Feb. 28. The carrier justified the emergency fuel surcharge, saying it couldn’t fully absorb the higher prices that “are likely to remain elevated and volatile given the uncertainty of the duration of hostilities and their impact on the price of oil and bunker fuel.” The surcharge Maersk will implement next week amounts to $200 per TEU for US head-haul trades and $100 per TEU for the backhaul. This week’s rejection of Maersk’s waiver request was the second time in 11 days the carrier was turned down. The FMC on March 23 rejected requests from Maersk, CMA CGM, Hapag-Lloyd, and Zim Integrated Shipping Services to waive the 30-day waiting period for an initial round of emergency fuel surcharges. Costs rise as concerns grow over fuel availability Shipper groups, including the Agriculture Transportation Coalition, are skeptical of ocean carriers imposing higher fuel surcharges given that it’s not clear how the surcharge amounts were calculated and that freight-all-kinds (FAK) rates include fuel costs. For contract rates, the so-called bunker adjustment factor (BAF) adjusts to higher fuel prices, but it can take up to two months to calibrate to the new levels, hampering ocean carriers’ cash flow in the short-term. The cost of war-related disruption has been substantial. Hapag-Lloyd, for example, is facing $40 million to $50 million per week in higher operating expenses due to war, now in its fifth week, CEO Rolf Habben Jansen told reporters on March 26. But the higher price of bunker fuel isn’t the only problem. Fuel availability, particularly in Asia, is becoming a growing concern for ocean carriers, with analysts warning that the world’s largest bunkering hub of Singapore has less than a month’s supply remaining and no replenishment in sight . If bunker fuel scarcity worsens, container lines could be forced to sail slower, take alternative routes, or blank sailings. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com.

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FMC again rejects Maersk petition to waive notice period for emergency fuel surcharge

<div class="phx-topic abstract-wrapper">The CMA CGM Kribi successfully transited the strait late Thursday, the first passage for a Western-operated container ship since the war between the US/Israel and Iran disrupted access to the crucial waterway five weeks ago.</div>

The CMA CGM Kribi successfully transited the strait late Thursday, the first passage for a Western-operated container ship since the war between the US/Israel and Iran disrupted access to the crucial waterway five weeks ago.

<div class="phx-topic">French ocean carrier CMA CGM is understood to have secured assurances from Iranian authorities guaranteeing safe passage for its 14 container ships trapped inside the Strait of Hormuz since the war began, industry sources with knowledge of the matter told the Journal of Commerce Friday. Signaling that breakthrough, the Malta-flagged CMA CGM Kribi successfully transited the strait late Thursday local time, the first passage for a Western-operated container ship since the war between the US/Israel and Iran disrupted access to the crucial waterway five weeks ago. The 5,500-TEU Kribi is part of the Marseille-based carrier’s Middle East-India-West Africa network known as Midas1 and operated in conjunction with Maersk, available data shows. The industry sources also indicated that there are another six CMA CGM container vessels held up in the Persian Gulf and awaiting clearance to transit Hormuz. The sources believe the measured approach adopted by French President Emmanuel Macron during the Persian Gulf conflict has helped CMA CGM strike a deal with Iran, which recently reiterated that Hormuz would only remain open to maritime traffic from nonhostile countries. Specifics of any possible deal between the carrier and Iran were not known. There have been unconfirmed reports that Tehran is asking carriers to pay a “toll fee” of $1 million or $2 million per ship to guarantee safe passage through the strait. During a briefing with reporters last week, <a href="https://www.joc.com/article/war-adding-40-50-million-per-week-to-hapag-lloyds-costs-ceo-6193532">Hapag-Lloyd CEO Rolf Habben Jansen was asked</a> whether the carrier would pay Tehran to secure safe passage for its six ships that remain trapped in the war zone. “We are pursuing every avenue that we can to try to get the ships and the crews safely out, and I would not rule out anything at this point,” Habben Jansen said. Earlier this week, three Chinese-linked vessels, including two container ships operated by Cosco Shipping, transited through Hormuz. The industry sources also told the Journal of Commerce that 15 ships operated by Mediterranean Shipping Co. are stuck in the conflict zone, as well as six from Maersk. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

French ocean carrier CMA CGM is understood to have secured assurances from Iranian authorities guaranteeing safe passage for its 14 container ships trapped inside the Strait of Hormuz since the war began, industry sources with knowledge of the matter told the Journal of Commerce Friday. Signaling that breakthrough, the Malta-flagged CMA CGM Kribi successfully transited the strait late Thursday local time, the first passage for a Western-operated container ship since the war between the US/Israel and Iran disrupted access to the crucial waterway five weeks ago. The 5,500-TEU Kribi is part of the Marseille-based carrier’s Middle East-India-West Africa network known as Midas1 and operated in conjunction with Maersk, available data shows. The industry sources also indicated that there are another six CMA CGM container vessels held up in the Persian Gulf and awaiting clearance to transit Hormuz. The sources believe the measured approach adopted by French President Emmanuel Macron during the Persian Gulf conflict has helped CMA CGM strike a deal with Iran, which recently reiterated that Hormuz would only remain open to maritime traffic from nonhostile countries. Specifics of any possible deal between the carrier and Iran were not known. There have been unconfirmed reports that Tehran is asking carriers to pay a “toll fee” of $1 million or $2 million per ship to guarantee safe passage through the strait. During a briefing with reporters last week, Hapag-Lloyd CEO Rolf Habben Jansen was asked whether the carrier would pay Tehran to secure safe passage for its six ships that remain trapped in the war zone. “We are pursuing every avenue that we can to try to get the ships and the crews safely out, and I would not rule out anything at this point,” Habben Jansen said. Earlier this week, three Chinese-linked vessels, including two container ships operated by Cosco Shipping, transited through Hormuz. The industry sources also told the Journal of Commerce that 15 ships operated by Mediterranean Shipping Co. are stuck in the conflict zone, as well as six from Maersk. Contact Bency Mathew at bencyvmathew@gmail.com.

CMA CGM said to have deal with Iran to allow safe passage through Hormuz: sources

<div class="phx-topic abstract-wrapper">Global jet fuel prices have almost doubled since the Middle East war began on Feb. 28, piling additional expenses onto an operating component that before the conflict was already more than 30% of total costs.</div>

Global jet fuel prices have almost doubled since the Middle East war began on Feb. 28, piling additional expenses onto an operating component that before the conflict was already more than 30% of total costs.

<div class="phx-topic">Rising energy prices are placing growing pressure on air freighter operators, with the soaring cost of jet fuel eroding margins and pushing part of the global fleet closer toward economic unviability. Global jet fuel prices have almost doubled since the Middle East war began on Feb. 28, piling additional expenses onto an operating component that before the conflict was already more than 30% of total costs. “For less efficient aircraft like the B747-400F, the math is getting tight,” Rotate analyst Archisman Acharya noted in a report. “Global average profitability is approaching breakeven, and on lanes without strong yield growth, margins have already turned negative.” The B747-400 freighter accounts for a significant share of global freighter capacity, with the trans-Pacific the most exposed trade lane at 22%. During the last comparable fuel spike in 2022, Acharya said global B747-400F capacity declined 12%. While the price of jet fuel has risen sharply, concerns are now growing over its availability, particularly in Asia. China and Thailand have suspended their jet fuel exports, impacting neighbor Vietnam, which imports two-thirds of its supply from the two countries. With its fuel spigot turned off, Vietnam’s aviation authority last week announced cuts in domestic flights and may suspend charters. Elsewhere, refueling restrictions are being imposed in South Korea, while the Philippines has declared a "national energy emergency" and may start grounding flights. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged the flat price for jet fuel in Northwest Europe delivered via cargo at a record high of $1,842.50 per metric ton on Thursday, up $232.25 on the day. “Since the war broke out, jet fuel prices have been about twice last year's levels and have broken previous records multiple times,” Platts said in a commentary. <h3>Fast resolution to conflict needed </h3>Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said in a market update Thursday that air cargo stakeholders were pinning their hopes on a fast resolution to the Middle East conflict. “Tariffs created uncertainty, but the fallout here is bigger because of the cost of jet fuel, the potential energy crisis and inflation growth,” he said. “Right now, the air cargo market is suffering from a supply issue, and this will be resolved, but the longer this recovery takes is going to determine if it becomes a much bigger demand issue. “Whether air freight benefits or suffers in the longer term is down to the length of the conflict and its outcomes,” van de Wouw added. He said cities like Dubai and Doha occupied strategic midpoints between the Americas, Asia and Europe, and have served as the growth engine behind the rise of super-connector airlines such as Emirates, Etihad and Qatar Airways. But their geographic advantage has now become a strategic vulnerability, with hub airports in the war zone becoming victims of the conflict. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9012e6fb-929b-4707-8282-a10521bcf60e"></dynamic-object></div>Five weeks into the war, air cargo capacity in the region remains roughly 30% below pre-conflict levels, and the squeeze in supply is showing up in rates. Global air cargo spot rates in March surpassed 2025 peak-season levels, reaching $2.86 per kilogram, their highest since December 2024, van de Wouw said. “Will the increase in fuel prices dampen demand for air freight? Not immediately, but if this conflict continues in the longer term, then definitely yes because the world would be facing a much broader economic issue,” he said. Data from Xeneta shows the rate impact has been sharpest on outbound corridors from South Asia and Southeast Asia to the Middle East. Spot rates surged 50% to 100% in the week ended March 29 compared to just four weeks prior. The spike reflected a convergence of pressures: severe capacity shortages from heavy reliance on Middle Eastern carriers, near-doubled jet fuel costs and newly added war-risk surcharges. Spot rates from Southeast Asia and South Asia to Europe followed similar trajectories, given Middle Eastern carriers' dominance on those routes. By contrast, Northeast Asia-Europe lanes held up comparatively better as airlines deployed more direct flights to compensate. Rising fuel costs have pushed air freight rates from Northeast Asia and Southeast Asia to North America up by mid- to high double digits. South Asia-North America rates surged even higher, up approximately 75%, again driven by Middle Eastern carriers' significant share of that corridor, Xeneta data showed. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

Rising energy prices are placing growing pressure on air freighter operators, with the soaring cost of jet fuel eroding margins and pushing part of the global fleet closer toward economic unviability. Global jet fuel prices have almost doubled since the Middle East war began on Feb. 28, piling additional expenses onto an operating component that before the conflict was already more than 30% of total costs. “For less efficient aircraft like the B747-400F, the math is getting tight,” Rotate analyst Archisman Acharya noted in a report. “Global average profitability is approaching breakeven, and on lanes without strong yield growth, margins have already turned negative.” The B747-400 freighter accounts for a significant share of global freighter capacity, with the trans-Pacific the most exposed trade lane at 22%. During the last comparable fuel spike in 2022, Acharya said global B747-400F capacity declined 12%. While the price of jet fuel has risen sharply, concerns are now growing over its availability, particularly in Asia. China and Thailand have suspended their jet fuel exports, impacting neighbor Vietnam, which imports two-thirds of its supply from the two countries. With its fuel spigot turned off, Vietnam’s aviation authority last week announced cuts in domestic flights and may suspend charters. Elsewhere, refueling restrictions are being imposed in South Korea, while the Philippines has declared a "national energy emergency" and may start grounding flights. Platts, a sister company of the Journal of Commerce within S&P Global, pegged the flat price for jet fuel in Northwest Europe delivered via cargo at a record high of $1,842.50 per metric ton on Thursday, up $232.25 on the day. “Since the war broke out, jet fuel prices have been about twice last year's levels and have broken previous records multiple times,” Platts said in a commentary. Fast resolution to conflict needed Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said in a market update Thursday that air cargo stakeholders were pinning their hopes on a fast resolution to the Middle East conflict. “Tariffs created uncertainty, but the fallout here is bigger because of the cost of jet fuel, the potential energy crisis and inflation growth,” he said. “Right now, the air cargo market is suffering from a supply issue, and this will be resolved, but the longer this recovery takes is going to determine if it becomes a much bigger demand issue. “Whether air freight benefits or suffers in the longer term is down to the length of the conflict and its outcomes,” van de Wouw added. He said cities like Dubai and Doha occupied strategic midpoints between the Americas, Asia and Europe, and have served as the growth engine behind the rise of super-connector airlines such as Emirates, Etihad and Qatar Airways. But their geographic advantage has now become a strategic vulnerability, with hub airports in the war zone becoming victims of the conflict. Five weeks into the war, air cargo capacity in the region remains roughly 30% below pre-conflict levels, and the squeeze in supply is showing up in rates. Global air cargo spot rates in March surpassed 2025 peak-season levels, reaching $2.86 per kilogram, their highest since December 2024, van de Wouw said. “Will the increase in fuel prices dampen demand for air freight? Not immediately, but if this conflict continues in the longer term, then definitely yes because the world would be facing a much broader economic issue,” he said. Data from Xeneta shows the rate impact has been sharpest on outbound corridors from South Asia and Southeast Asia to the Middle East. Spot rates surged 50% to 100% in the week ended March 29 compared to just four weeks prior. The spike reflected a convergence of pressures: severe capacity shortages from heavy reliance on Middle Eastern carriers, near-doubled jet fuel costs and newly added war-risk surcharges. Spot rates from Southeast Asia and South Asia to Europe followed similar trajectories, given Middle Eastern carriers' dominance on those routes. By contrast, Northeast Asia-Europe lanes held up comparatively better as airlines deployed more direct flights to compensate. Rising fuel costs have pushed air freight rates from Northeast Asia and Southeast Asia to North America up by mid- to high double digits. South Asia-North America rates surged even higher, up approximately 75%, again driven by Middle Eastern carriers' significant share of that corridor, Xeneta data showed. Contact Greg Knowler at greg.knowler@spglobal.com.

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Rising jet fuel costs challenging freighter viability as war enters second month

<div class="phx-topic abstract-wrapper">The announcement comes as the Singapore-based regional carrier outlined a strategic restructuring of its overall operations, including scaling down trade coverage across its key intra-Asia trade territories.</div>

The announcement comes as the Singapore-based regional carrier outlined a strategic restructuring of its overall operations, including scaling down trade coverage across its key intra-Asia trade territories.

<div class="phx-topic">Singapore-based carrier SeaLead has acknowledged that its services calling at ports in the Middle East war zone were experiencing challenges and that it is assessing contingency measures for all cargo on board affected vessels. “The operational situation may result in broader disruptions, including potential equipment shortages and the use of alternative, more secure routing options,” the liner told customers in an advisory Thursday. As part of that strategy, the carrier is said to have already flushed out the inventory of empty equipment it was holding in India. “SeaLead is handling fewer fresh bookings, mostly for Jeddah [Saudi Arabia] port of discharge only,” a Mumbai-based freight forwarder told the Journal of Commerce. “The operations and customer service are presently in a sort of limbo.” <h3>‘Strategic restructuring’ </h3>The announcement comes as SeaLead outlined a strategic restructuring of its overall operations, including scaling down trade coverage across its key intra-Asia trade territories. “In response to recent market developments and conditions, SeaLead will undertake strategic restructuring to streamline its operations,” it said in an internal communique viewed by the Journal of Commerce. “As part of this realignment, SeaLead will reduce its network coverage in Indonesia, Korea, Morocco, Thailand, Vietnam and selected locations in China.” The regional liner also said it will work through calibrated office transitions in those regions, while adding that honoring contractual commitments and maintaining service reliability will be a priority. “SeaLead values the continued support of its employees, customers, vendors and other stakeholders during this transition period,” it said. Speculation has been growing about the future of SeaLead after the heavy fleet blow it suffered last year due to the <a href="https://www.joc.com/article/new-us-sanctions-on-iran-cut-sealeads-vessel-fleet-by-one-third-6055714">abrupt termination of 16 of its vessel charterparties</a>, an issue linked to US sanctions on entities with connections to the Iranian government. The action effectively removed one-third of the 53 ships SeaLead had in its fleet, according to available data. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

Singapore-based carrier SeaLead has acknowledged that its services calling at ports in the Middle East war zone were experiencing challenges and that it is assessing contingency measures for all cargo on board affected vessels. “The operational situation may result in broader disruptions, including potential equipment shortages and the use of alternative, more secure routing options,” the liner told customers in an advisory Thursday. As part of that strategy, the carrier is said to have already flushed out the inventory of empty equipment it was holding in India. “SeaLead is handling fewer fresh bookings, mostly for Jeddah [Saudi Arabia] port of discharge only,” a Mumbai-based freight forwarder told the Journal of Commerce. “The operations and customer service are presently in a sort of limbo.” ‘Strategic restructuring’ The announcement comes as SeaLead outlined a strategic restructuring of its overall operations, including scaling down trade coverage across its key intra-Asia trade territories. “In response to recent market developments and conditions, SeaLead will undertake strategic restructuring to streamline its operations,” it said in an internal communique viewed by the Journal of Commerce. “As part of this realignment, SeaLead will reduce its network coverage in Indonesia, Korea, Morocco, Thailand, Vietnam and selected locations in China.” The regional liner also said it will work through calibrated office transitions in those regions, while adding that honoring contractual commitments and maintaining service reliability will be a priority. “SeaLead values the continued support of its employees, customers, vendors and other stakeholders during this transition period,” it said. Speculation has been growing about the future of SeaLead after the heavy fleet blow it suffered last year due to the abrupt termination of 16 of its vessel charterparties , an issue linked to US sanctions on entities with connections to the Iranian government. The action effectively removed one-third of the 53 ships SeaLead had in its fleet, according to available data. Contact Bency Mathew at bencyvmathew@gmail.com.

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SeaLead warns of network disruptions in Persian Gulf war zone

<div class="phx-topic abstract-wrapper">The comments by the US Secretary of State heighten the Trump administration’s involvement a week after the top federal maritime regulator flagged the ship detentions. </div>

The comments by the US Secretary of State heighten the Trump administration’s involvement a week after the top federal maritime regulator flagged the ship detentions.

<div class="phx-topic">The Trump administration Thursday escalated its concern over the recent detention of Panama-flagged vessels at Chinese ports, with Secretary of State Marco Rubio saying the practice, “raise(s) serious concerns about the use of economic tools to undermine the rule of law...” Rubio’s comments come a week after Laura DiBella, chairman of the Federal Maritime Commission, said the agency was “closely monitoring” an apparent “surge” in detentions of Panama-flag ships by Chinese port authorities and the effect it could have on US container trade. “Detentions, delays, or other impediments to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system,” Rubio said in a statement. Similar to DiBella, Rubio linked the Chinese activity against the vessels to retaliation for the Panamanian Supreme Court recently nullifying the operating concessions at Panama’s Balboa and Cristóbal ports held by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. Hutchison held the operating concessions at the two ports for 28 years. Striking back after the ruling, Hutchison  filed an international arbitration claim against the Panamanian government and Panama Maritime Authority (PMA), seeking more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month halted calls at Balboa, redirecting its services to Manzanillo on the Atlantic side of the canal. Cosco and Hong Kong-based OOCL operate nearly one-fifth of the trans-Pacific capacity that transits the canal, according to data from benchmarking platform Xeneta’s eeSea. Panama’s move against Hutchison came a year after US President Donald Trump threatened to take over the canal if Panama did not rid itself of Chinese influence. <a href="mailto:News@joc.com">News@joc.com.</a></div>

The Trump administration Thursday escalated its concern over the recent detention of Panama-flagged vessels at Chinese ports, with Secretary of State Marco Rubio saying the practice, “raise(s) serious concerns about the use of economic tools to undermine the rule of law...” Rubio’s comments come a week after Laura DiBella, chairman of the Federal Maritime Commission, said the agency was “closely monitoring” an apparent “surge” in detentions of Panama-flag ships by Chinese port authorities and the effect it could have on US container trade. “Detentions, delays, or other impediments to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system,” Rubio said in a statement. Similar to DiBella, Rubio linked the Chinese activity against the vessels to retaliation for the Panamanian Supreme Court recently nullifying the operating concessions at Panama’s Balboa and Cristóbal ports held by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. Hutchison held the operating concessions at the two ports for 28 years. Striking back after the ruling, Hutchison  filed an international arbitration claim against the Panamanian government and Panama Maritime Authority (PMA), seeking more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month halted calls at Balboa, redirecting its services to Manzanillo on the Atlantic side of the canal. Cosco and Hong Kong-based OOCL operate nearly one-fifth of the trans-Pacific capacity that transits the canal, according to data from benchmarking platform Xeneta’s eeSea. Panama’s move against Hutchison came a year after US President Donald Trump threatened to take over the canal if Panama did not rid itself of Chinese influence. News@joc.com.

Rubio, in escalation, criticizes China for detaining Panama-flag ships

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FMC again rejects Maersk petition to waive notice period for emergency fuel surcharge

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