<div class="phx-topic abstract-wrapper">Virgin Atlantic Sets London-Orlando RouteVirgin Atlantic Airways will introduce a direct pas</div>

Virgin Atlantic Sets London-Orlando RouteVirgin Atlantic Airways will introduce a direct pas

<div>Virgin Atlantic SetsLondon-Orlando RouteVirgin Atlantic Airways will introduce a direct passenger and cargo route between London and Orlando, Fla., with the start of a weekly Boeing 747 service on May 26.Although four other airlines - British Airways, Pan American, TWA and Delta - operate between London and Orlando, only BA also offers a weekly non- stop flight.Graeme Howard, director of Virgin's cargo operations, believes the service will be of particular interest to forwarders and shippers seeking additional capacity to cities in the U.S. southern states, as well as other regions served through Orlando, including the Caribbean and South America.Rates will...

Virgin Atlantic Sets London-Orlando RouteVirgin Atlantic Airways will introduce a direct passenger and cargo route between London and Orlando, Fla., with the start of a weekly Boeing 747 service on May 26. Although four other airlines - British Airways, Pan American, TWA and Delta - operate between London and Orlando, only BA also offers a weekly non- stop flight. Graeme Howard, director of Virgin's cargo operations, believes the service will be of particular interest to forwarders and shippers seeking additional capacity to cities in the U.S. southern states, as well as other regions served through Orlando, including the Caribbean and South America. Rates will be the same as those charged on Virgin's London-Miami route, which uses the same aircraft on its five-days-a-week services. Virgin's Premier Service, which guarantees that shipments under 100 kilograms will fly as priority without a surcharge, will also be available on the Orlando route. In addition to the weekly flights, using London's Gatwick Airport, Virgin plans to operate additional services to Orlando every other Tuesday from May 31. IATA Reports Rise In Traffic for Quarter GENEVA - The International Air Transport Association said traffic of member airlines of during the first quarter of 1988 rose 13 percent from levels reported in the 1987 period. IATA said 41.5 million passengers were carried on international flights for a load factor of 64 percent, up 1 percent. Consumer confidence and business demand remains very strong, said Guenter Eser, IATA's director general. The only concern we have is that yields are falling to the extent that the traffic growth is not reflected in comparable profit increases for the industry as a whole, he said. USAir Leasing Buys Five Jetstream 31s WASHINGTON - USAir Leasing and Services, a subsidiary of USAir Group, has purchased five new Jetstream 31 aircraft from British Aerospace Inc. for delivery between June and December. The 19-seat Jetstream 31s will be leased by USAir Leasing to Jetstream International, a regional carrier owned by Piedmont Aviation, which is also a subsidiary of USAir Group. As part of the transaction, USAir Leasing will sell to British Aerospace one BAe 146 jet, owned by USAir Leasing and currently on lease to USAir. The BAe 146 jet, 21 of which are now in the USAir fleet, will be delivered to British Aerospace coincident with the delivery of the third Jetstreams 31.

Air Cargo

AVIATION BRIEFS

<div class="phx-topic abstract-wrapper">The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal. </div>

The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal.

Feature image

<div class="phx-topic">DP World is seeking to operate a long-planned, nearly C$6 billion container terminal in Montreal that the new Canadian government is backing amid its shift away from US trade dependence.The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal, which with an annual capacity of 1.15 million TEUs would increase Canda’s second largest container port by capacity 150%. DP World, which operates at Vancouver and Prince Rupert the first and third-largest ports in Canada respectively, <a href="https://www.bloomberg.com/news/articles/2025-08-29/dp-world-vies-for-deal-to-run-montreal-port-championed-by-carney">confirmed to Bloomberg</a> that it was involved in project negotiations. Since the port failed to attract a bidder in 2021,the <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">Contrecoeur project has received</a> C$130 from the Quebec provincial government and C$130 from Canada’s infrastructure bank for construction Prime Minister Mark Carney last week said that he was seeking to fast-track the Contrecoeur project and highlighted <a href="https://www.joc.com/article/carney-has-fresh-opportunity-to-galvanize-canadian-shipping-industry-6047928">newly passed legislation streamlining regulatory</a> approval for major infrastructure projects. The project, which is located 43 miles downriver from legacy Montreal terminals along the St. Lawrence River, requires extensive dredging and shoring up portions of the waterway. The projected cost of the project has ballooned, with estimates just six years ago pegging construction at C$570 – a tenth of the current estimate.The MPA seeks to begin construction as early as October and open the facility in 2029. The authority in 2022 <a href="https://www.joc.com/article/montreal-relaunches-search-process-for-contrecoeur-terminal-operator-5204826">sent bid invitations</a> to Axium Infrastructure Canada and Pomerleau Capital, Ports America Holdings, and Terminal Investment Limited, in which Mediterranean Shipping Co. owns a majority stake. The port originally planned to have the first phase of the project by 2024 and had identified three finalist but scrapped plans. DP World operates Centerm facility and solely operates at Prince Rupert and Port Saint John. Montreal’s four existing container terminals are operated by two companies, Montreal Gateway Terminals Partnership and Termont Montreal.</div>

DP World is seeking to operate a long-planned, nearly C$6 billion container terminal in Montreal that the new Canadian government is backing amid its shift away from US trade dependence. The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal, which with an annual capacity of 1.15 million TEUs would increase Canda’s second largest container port by capacity 150%. DP World, which operates at Vancouver and Prince Rupert the first and third-largest ports in Canada respectively, confirmed to Bloomberg that it was involved in project negotiations. Since the port failed to attract a bidder in 2021,the Contrecoeur project has received C$130 from the Quebec provincial government and C$130 from Canada’s infrastructure bank for construction Prime Minister Mark Carney last week said that he was seeking to fast-track the Contrecoeur project and highlighted newly passed legislation streamlining regulatory approval for major infrastructure projects. The project, which is located 43 miles downriver from legacy Montreal terminals along the St. Lawrence River, requires extensive dredging and shoring up portions of the waterway. The projected cost of the project has ballooned, with estimates just six years ago pegging construction at C$570 – a tenth of the current estimate. The MPA seeks to begin construction as early as October and open the facility in 2029. The authority in 2022 sent bid invitations to Axium Infrastructure Canada and Pomerleau Capital, Ports America Holdings, and Terminal Investment Limited, in which Mediterranean Shipping Co. owns a majority stake. The port originally planned to have the first phase of the project by 2024 and had identified three finalist but scrapped plans. DP World operates Centerm facility and solely operates at Prince Rupert and Port Saint John. Montreal’s four existing container terminals are operated by two companies, Montreal Gateway Terminals Partnership and Termont Montreal.

Marine terminals

North American ports

Port News

DP World aims to run Carney-backed Montreal terminal

<div class="phx-topic abstract-wrapper">Air cargo capacity deployed on Vietnam-US routes nearly doubled in August on a year over year basis. </div>

Air cargo capacity deployed on Vietnam-US routes nearly doubled in August on a year over year basis.

<div class="phx-topic">Air cargo carriers are swamping the skies with capacity from Vietnam to the United States and Europe to handle steadily rising demand for high-value products as electronics manufacturing shifts away from tariff-hit China. While air cargo volume data is not yet available for August, the huge demand on Vietnam’s export routes, particularly on the trans-Pacific, can be measured via the amount of air freight capacity deployed since the US tariffs on China were imposed in April. Data from air cargo analyst Rotate shows capacity deployed on Vietnam-US routes increased by 95% year over year in August to 2,400 tonnes. The capacity increase in the previous four months was even greater compared to last year as air cargo carriers injected freighters into Vietnam routes that were previously served indirectly. Rotate analyst Tim van Leeuwen said although most Vietnam trade was still carried indirectly via China, Hong Kong or other Asian hubs, the steep increase in direct capacity was a solid indicator of growth in the market. Capacity growth on Vietnam-Europe routes served mostly via the Middle East was pedestrian by comparison, rising 39% in August, 55% in July, 40% in June, 44% in May and increasing by 16% in April, according to Rotate. Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said manufacturers diversifying their China operations over the past year in anticipation of US tariffs under President Donald Trump are now starting to produce finished goods for the US and European markets. “This is the first year the production lines that moved to Vietnam have started to deliver finished goods and we can expect a peak season to start in September from Vietnam outbound to the US and Europe,” Liu said. Van Leeuwen said US technology imports from Vietnam were up +91% in the first six months with the import of computers up 113%, driven by growth in laptops that reached 71,000 tonnes. He said the growth rate for headphones and earphones in the first six months was 318%. <h3>Laptop export boom </h3>Glyn Hughes, director general of The International Air Cargo Association (Tiaca), said electronics, and particularly laptops, have “dramatically increased” on Vietnam to US trade lanes. “We think the increase to Europe is then a spillover from the overall production shift from China to Vietnam,” he told the Journal of Commerce Monday. “We aren’t hearing that accessing capacity is a problem, which would indicate good planning by manufacturers and their forwarders.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="c92e1ad7-70ff-4275-9528-8f939a9ee052"></dynamic-object></div>A spokesperson for Kuehne + Nagel said Vietnam has emerged as a leading global air freight growth market, and the forwarder expected this trend to continue. “Kuehne + Nagel is seeing strong air cargo demand from Vietnam to the US, driven by high tech, electronics and semiconductors cargo,” the spokesperson said, adding that in support of the rapid growth in export volume, Kuehne + Nagel and its Asian subsidiary Apex were operating 14 self-managed flights per week from Vietnam to the US. The US imposed 20% tariffs on Vietnamese exports in July, significantly less that those threatened on China, but at the same time threatened to impose a 40% tariff on any <a href="https://www.joc.com/article/trumps-vietnam-transshipment-tariff-puzzles-us-trade-community-6041482">exports “transshipped” via Vietnam</a>. The US estimates that up to 30% of goods shipped from Vietnam to the US is actually produced in China, but there is no data to support the claim. Still, the 40% tariff threat appears to be serving its purpose, according to Hughes. “I asked (Tiaca members) about transshipment via Vietnam, which doesn’t seem to be happening, so the threat of increased tariffs is stopping that activity,” he said. Liu said she was also not seeing any transshipment duties being imposed on Vietnamese exports. “Those products do not belong to transshipment cargo as the manufacturers are all based in Vietnam,” she told the Journal of Commerce. “Unless there is some specific regulation and definition for 'transshipment cargo,' at the current stage it looks fine.” <h3>Tariff uncertainty dogs China-US routes </h3>While Vietnam’s air cargo exports are booming, tariff uncertainty continues to suppress demand on China-US routes. International Air Transport Association (IATA) figures for July show volume on Asia-North America, a corridor that carries 24.4% of global volume, declined 1% year over year. “Most major trade lanes reported growth, with one significant exception: Asia–North America,” Willie Walsh, IATA director general, noted in his latest monthly update. “A sharp decline in e-commerce as the US de minimis exemptions on small shipments expired was likely offset by shippers frontloading goods in advance of rising tariffs for imports to the US,” he added. “August will likely reveal more clearly the impact of shifting US trade policies.” The Trump administration on May 2 <a href="https://www.joc.com/article/air-cargo-volumes-fall-on-trans-pacific-as-us-de-minimis-changes-loom-5993599">eliminated the de minimis exemption for low-value imports from China</a>, and on May 29 <a href="https://www.joc.com/article/postal-groups-cite-customs-compliance-issues-in-us-shipment-suspensions-6070276">removed the exemption for all countries</a>. While most of the industry attention was focused on developments in markets connected to the US, Walsh noted that “it is important to keep a broad perspective on the global network.” “A fifth of air cargo travels on the Europe–Asia trade lane, which marked 29 months of consecutive expansion with 13.5% year-over-year growth in July,” he said. Rotate data shows China-Europe air cargo capacity deployed increased by 20,000 tonnes in August to 129,800 tonnes. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Air cargo carriers are swamping the skies with capacity from Vietnam to the United States and Europe to handle steadily rising demand for high-value products as electronics manufacturing shifts away from tariff-hit China. While air cargo volume data is not yet available for August, the huge demand on Vietnam’s export routes, particularly on the trans-Pacific, can be measured via the amount of air freight capacity deployed since the US tariffs on China were imposed in April. Data from air cargo analyst Rotate shows capacity deployed on Vietnam-US routes increased by 95% year over year in August to 2,400 tonnes. The capacity increase in the previous four months was even greater compared to last year as air cargo carriers injected freighters into Vietnam routes that were previously served indirectly. Rotate analyst Tim van Leeuwen said although most Vietnam trade was still carried indirectly via China, Hong Kong or other Asian hubs, the steep increase in direct capacity was a solid indicator of growth in the market. Capacity growth on Vietnam-Europe routes served mostly via the Middle East was pedestrian by comparison, rising 39% in August, 55% in July, 40% in June, 44% in May and increasing by 16% in April, according to Rotate. Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said manufacturers diversifying their China operations over the past year in anticipation of US tariffs under President Donald Trump are now starting to produce finished goods for the US and European markets. “This is the first year the production lines that moved to Vietnam have started to deliver finished goods and we can expect a peak season to start in September from Vietnam outbound to the US and Europe,” Liu said. Van Leeuwen said US technology imports from Vietnam were up +91% in the first six months with the import of computers up 113%, driven by growth in laptops that reached 71,000 tonnes. He said the growth rate for headphones and earphones in the first six months was 318%. Laptop export boom Glyn Hughes, director general of The International Air Cargo Association (Tiaca), said electronics, and particularly laptops, have “dramatically increased” on Vietnam to US trade lanes. “We think the increase to Europe is then a spillover from the overall production shift from China to Vietnam,” he told the Journal of Commerce Monday. “We aren’t hearing that accessing capacity is a problem, which would indicate good planning by manufacturers and their forwarders.” A spokesperson for Kuehne + Nagel said Vietnam has emerged as a leading global air freight growth market, and the forwarder expected this trend to continue. “Kuehne + Nagel is seeing strong air cargo demand from Vietnam to the US, driven by high tech, electronics and semiconductors cargo,” the spokesperson said, adding that in support of the rapid growth in export volume, Kuehne + Nagel and its Asian subsidiary Apex were operating 14 self-managed flights per week from Vietnam to the US. The US imposed 20% tariffs on Vietnamese exports in July, significantly less that those threatened on China, but at the same time threatened to impose a 40% tariff on any exports “transshipped” via Vietnam . The US estimates that up to 30% of goods shipped from Vietnam to the US is actually produced in China, but there is no data to support the claim. Still, the 40% tariff threat appears to be serving its purpose, according to Hughes. “I asked (Tiaca members) about transshipment via Vietnam, which doesn’t seem to be happening, so the threat of increased tariffs is stopping that activity,” he said. Liu said she was also not seeing any transshipment duties being imposed on Vietnamese exports. “Those products do not belong to transshipment cargo as the manufacturers are all based in Vietnam,” she told the Journal of Commerce. “Unless there is some specific regulation and definition for 'transshipment cargo,' at the current stage it looks fine.” Tariff uncertainty dogs China-US routes While Vietnam’s air cargo exports are booming, tariff uncertainty continues to suppress demand on China-US routes. International Air Transport Association (IATA) figures for July show volume on Asia-North America, a corridor that carries 24.4% of global volume, declined 1% year over year. “Most major trade lanes reported growth, with one significant exception: Asia–North America,” Willie Walsh, IATA director general, noted in his latest monthly update. “A sharp decline in e-commerce as the US de minimis exemptions on small shipments expired was likely offset by shippers frontloading goods in advance of rising tariffs for imports to the US,” he added. “August will likely reveal more clearly the impact of shifting US trade policies.” The Trump administration on May 2 eliminated the de minimis exemption for low-value imports from China , and on May 29 removed the exemption for all countries . While most of the industry attention was focused on developments in markets connected to the US, Walsh noted that “it is important to keep a broad perspective on the global network.” “A fifth of air cargo travels on the Europe–Asia trade lane, which marked 29 months of consecutive expansion with 13.5% year-over-year growth in July,” he said. Rotate data shows China-Europe air cargo capacity deployed increased by 20,000 tonnes in August to 129,800 tonnes. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo Carriers News

Vietnam air cargo export jump on weaker China demand

<div class="phx-topic abstract-wrapper">The carriers, because they offer services tailored to their customers’ needs, say they are “sheltered” somewhat from declining spot rates given they are able to charge a premium for those services.</div>

The carriers, because they offer services tailored to their customers’ needs, say they are “sheltered” somewhat from declining spot rates given they are able to charge a premium for those services.

<div class="phx-topic">Several niche carriers that added tonnage to the trans-Pacific trade over the past year say they aren’t going anywhere despite retreating spot rates and the downward pressure tariffs are exerting on US imports from Asia. Those carriers, offering services tailored to their customers’ needs, say they are sheltered somewhat from declining spot rates because they charge a premium for their services that provide expedited ocean transport from Asia and Southeast Asia and, oftentimes, next-day container availability for landside pickup. “We’re fairly sheltered from the spot rates because 80% of our cargo is BCO [beneficial cargo owner] contracted cargo,” said Duncan Wright, president of third-party logistics provider UWL, which offers <a href="https://www.joc.com/article/uwl-locks-in-new-vessel-partner-for-trans-pacific-vietnam-service-6032327">the bi-weekly Sun Chief Express service</a> from Vietnam to Seattle. The ocean transit is 19 days from the last port call at Ho Chi Minh City to the Seattle gateway, while most other lines are 20-plus days, Wright told the Journal of Commerce Friday. China-based Hede Shipping in July launched its <a href="https://www.joc.com/article/hede-shipping-to-launch-third-expedited-service-from-china-to-los-angeles-6034891">third expedited service from China to Los Angeles</a>, zeroing in on the e-commerce sector with its expedited transit times and quick delivery of containers upon discharge from vessels. A Hede representative confirmed that newest service is in operation. Premium niche services offered by UWL, Hede and Matson appeal to BCOs with specific requirements based upon their customers’ needs. For example, customers of UWL’s Sun Chief service focus on footwear importers who are based in Southeast Asia and ship through Seattle, which offers direct inland point intermodal (IPI) rail service to markets such as Minneapolis and Chicago, Wright said. <h3>Huge spot rate swings this year </h3>The niche carriers, which also include SeaLead and CU Lines, entered the trans-Pacific trades in 2024 when spot and freight-all-kinds (FAK) rates surged as high as $7,800 per FEU to the US West Coast and $10,000 per FEU to the East Coast, according to PIERS, a Journal of Commerce sister product within S&amp;P Global. Niche carriers account for about 4.5% of total capacity on the trans-Pacific trade to the West Coast, about the same percentage in the post-COVID-19 import surge in 2021–22, Alan Murphy, CEO of Sea-Intelligence Maritime Analysis, said in his Sunday Spotlight newsletter this week. While that market share is not enough to prevent a further slide in spot rates, the continued presence of the niche lines in the trans-Pacific indicates they are not just “opportunistic” carriers that came into the trade when spot rates were high and plan to leave if rates drop too low, he said. “These carriers are seemingly staying on the trade lane ... and it seems as if they are continuing to introduce capacity on the trade lane,” Murphy said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e9676ea4-c6b9-4589-9a4b-822a9c82e2f8"></dynamic-object></div>Given the volatile nature of the trans-Pacific market so far this year, with major rate spikes in January and June followed by plunging prices in subsequent months, the niche lines apparently have ample cash on hand to weather the current downturn. Spot rates from Asia to the West Coast as of Thursday were $1,500 per FEU, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global; Drewry pegged the market at $2,332 per FEU. “Pulling the plug is a tough decision because the money, when available, was so lucrative there’s the hope such margins will return,” said Stephen Nothdurft, vice president of sales at the forwarder MOL Consolidation Service. “It seems the current operators are taking a hard look at their commitments and calculating a longer-term strategy,” he said. “Maybe the new normal is continued chaos, so the smaller players are staying in place, building a viable clientele, [and] preparing to pounce when another catastrophe hits the liner market,” Nothdurft said. <h3>Premium rates can only do so much </h3>Still, if spot/FAK rates continue to drift below $1,500 to the West Coast, and possibly lower, some niche lines will find it difficult to sustain the losses for very long, an executive at an alliance carrier told the Journal of Commerce. “Even with an upcharge of $500-$600 [per FEU], it’s not going to be enough,” said the executive, who did not want to be identified. “The niche carriers, like all lines, have fixed costs such as bunker fuel, port fees and crew costs.” The source said $2,000 per FEU is the breakeven spot for most carriers’ West Coast business, adding their presence on the eastbound trans-Pacific “can’t last forever.” The challenge these carriers face is that rates are also depressed in the intra-Asia trade, and the small vessels they deploy in the range of 3,000-TEU capacity are not suited for the long-distance Asia-Europe trades, he said. Contact Bill Mongelluzzo at <a href="https://www.joc.com/article/bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

Several niche carriers that added tonnage to the trans-Pacific trade over the past year say they aren’t going anywhere despite retreating spot rates and the downward pressure tariffs are exerting on US imports from Asia. Those carriers, offering services tailored to their customers’ needs, say they are sheltered somewhat from declining spot rates because they charge a premium for their services that provide expedited ocean transport from Asia and Southeast Asia and, oftentimes, next-day container availability for landside pickup. “We’re fairly sheltered from the spot rates because 80% of our cargo is BCO [beneficial cargo owner] contracted cargo,” said Duncan Wright, president of third-party logistics provider UWL, which offers the bi-weekly Sun Chief Express service from Vietnam to Seattle. The ocean transit is 19 days from the last port call at Ho Chi Minh City to the Seattle gateway, while most other lines are 20-plus days, Wright told the Journal of Commerce Friday. China-based Hede Shipping in July launched its third expedited service from China to Los Angeles , zeroing in on the e-commerce sector with its expedited transit times and quick delivery of containers upon discharge from vessels. A Hede representative confirmed that newest service is in operation. Premium niche services offered by UWL, Hede and Matson appeal to BCOs with specific requirements based upon their customers’ needs. For example, customers of UWL’s Sun Chief service focus on footwear importers who are based in Southeast Asia and ship through Seattle, which offers direct inland point intermodal (IPI) rail service to markets such as Minneapolis and Chicago, Wright said. Huge spot rate swings this year The niche carriers, which also include SeaLead and CU Lines, entered the trans-Pacific trades in 2024 when spot and freight-all-kinds (FAK) rates surged as high as $7,800 per FEU to the US West Coast and $10,000 per FEU to the East Coast, according to PIERS, a Journal of Commerce sister product within S&P Global. Niche carriers account for about 4.5% of total capacity on the trans-Pacific trade to the West Coast, about the same percentage in the post-COVID-19 import surge in 2021–22, Alan Murphy, CEO of Sea-Intelligence Maritime Analysis, said in his Sunday Spotlight newsletter this week. While that market share is not enough to prevent a further slide in spot rates, the continued presence of the niche lines in the trans-Pacific indicates they are not just “opportunistic” carriers that came into the trade when spot rates were high and plan to leave if rates drop too low, he said. “These carriers are seemingly staying on the trade lane ... and it seems as if they are continuing to introduce capacity on the trade lane,” Murphy said. Given the volatile nature of the trans-Pacific market so far this year, with major rate spikes in January and June followed by plunging prices in subsequent months, the niche lines apparently have ample cash on hand to weather the current downturn. Spot rates from Asia to the West Coast as of Thursday were $1,500 per FEU, according to Platts, a sister company of the Journal of Commerce within S&P Global; Drewry pegged the market at $2,332 per FEU. “Pulling the plug is a tough decision because the money, when available, was so lucrative there’s the hope such margins will return,” said Stephen Nothdurft, vice president of sales at the forwarder MOL Consolidation Service. “It seems the current operators are taking a hard look at their commitments and calculating a longer-term strategy,” he said. “Maybe the new normal is continued chaos, so the smaller players are staying in place, building a viable clientele, [and] preparing to pounce when another catastrophe hits the liner market,” Nothdurft said. Premium rates can only do so much Still, if spot/FAK rates continue to drift below $1,500 to the West Coast, and possibly lower, some niche lines will find it difficult to sustain the losses for very long, an executive at an alliance carrier told the Journal of Commerce. “Even with an upcharge of $500-$600 [per FEU], it’s not going to be enough,” said the executive, who did not want to be identified. “The niche carriers, like all lines, have fixed costs such as bunker fuel, port fees and crew costs.” The source said $2,000 per FEU is the breakeven spot for most carriers’ West Coast business, adding their presence on the eastbound trans-Pacific “can’t last forever.” The challenge these carriers face is that rates are also depressed in the intra-Asia trade, and the small vessels they deploy in the range of 3,000-TEU capacity are not suited for the long-distance Asia-Europe trades, he said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Laura Robb at laura.robb@spglobal.com .

Container Shipping News

Container lines

Trans-Pacific

Maritime

Niche carriers plan to ride out declining spot rates on the trans-Pacific

<div class="phx-topic abstract-wrapper">The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia on Thursday.</div>

The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia on Thursday.

<div class="phx-topic">Shipper groups in Australia are welcoming separate deals inked between two terminal operators and dockworkers, saying the agreements will bring a sustained period of industrial peace on the country’s waterfront after years of disruption. The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia (MUA) on Thursday. Along with significant pay increases for workers, the agreements curtail the implementation of new technology systems. That includes a ban on automated equipment at Hutchison’s Sydney and Brisbane terminals and limits on the implementation and use of AI and other technologies at VICT in Melbourne without the agreement of the workforce. The MUA said the curbs on automation mean “no remote cranes, no driverless trucks, no job-destroying machines.” Tom Jensen, general manager for freight policy and operations at the Freight &amp; Trade Alliance (FTA), a shipper group, said the latest labor agreements and those reached earlier with other operators including DP World, should prevent any labor action at major terminals for the next four years. FTA members include Alibaba (Australia,) Caterpillar, Kmart and Target. “The industry is set for a rare period of stability across all container terminals through to 2028–29 — delivering much-needed certainty for importers, exporters, freight forwarders, customs brokers and logistics providers in a period of heightened geopolitical tensions and ongoing volatility in global shipping,” Jensen told the Journal of Commerce. Jensen, who also represents the Australian Peak Shippers Association (APSA), welcomed the settlements because they were achieved without protracted disputes and industrial action that characterized negotiations with other operators. DP World faced four months of strikes and limited working by stevedores at its terminals in Sydney, Melbourne, Brisbane and Fremantle before agreeing to a new labor pact in February 2024. Jensen said Hutchison wanted “a quick negotiation to avoid any disruption to the supply chain.” “Terminal operators appear to have taken a more proactive approach in recent negotiations, entering talks earlier than usual,” he said. <h3>Pay hikes, new jobs</h3>The MUA said the Hutchison deal includes a pay increase of 18.25% over four years for the 350 dockworkers employed at its terminals in Sydney and Brisbane. The agreement with VICT, owned by Philippines-headquartered International Container Terminal Services Inc (ICTSI), creates at least 46 new permanent jobs and includes a 46% pay increase for casual workers and cuts in average weekly hours, the MUA said. A Hutchison source said its agreement provides increased flexibility with labor resources and the availability to better match vessel arrivals at Sydney’s Port Botany and Brisbane while offering improved service to landside railroad and truck operators. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Shipper groups in Australia are welcoming separate deals inked between two terminal operators and dockworkers, saying the agreements will bring a sustained period of industrial peace on the country’s waterfront after years of disruption. The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia (MUA) on Thursday. Along with significant pay increases for workers, the agreements curtail the implementation of new technology systems. That includes a ban on automated equipment at Hutchison’s Sydney and Brisbane terminals and limits on the implementation and use of AI and other technologies at VICT in Melbourne without the agreement of the workforce. The MUA said the curbs on automation mean “no remote cranes, no driverless trucks, no job-destroying machines.” Tom Jensen, general manager for freight policy and operations at the Freight & Trade Alliance (FTA), a shipper group, said the latest labor agreements and those reached earlier with other operators including DP World, should prevent any labor action at major terminals for the next four years. FTA members include Alibaba (Australia,) Caterpillar, Kmart and Target. “The industry is set for a rare period of stability across all container terminals through to 2028–29 — delivering much-needed certainty for importers, exporters, freight forwarders, customs brokers and logistics providers in a period of heightened geopolitical tensions and ongoing volatility in global shipping,” Jensen told the Journal of Commerce. Jensen, who also represents the Australian Peak Shippers Association (APSA), welcomed the settlements because they were achieved without protracted disputes and industrial action that characterized negotiations with other operators. DP World faced four months of strikes and limited working by stevedores at its terminals in Sydney, Melbourne, Brisbane and Fremantle before agreeing to a new labor pact in February 2024. Jensen said Hutchison wanted “a quick negotiation to avoid any disruption to the supply chain.” “Terminal operators appear to have taken a more proactive approach in recent negotiations, entering talks earlier than usual,” he said. Pay hikes, new jobs The MUA said the Hutchison deal includes a pay increase of 18.25% over four years for the 350 dockworkers employed at its terminals in Sydney and Brisbane. The agreement with VICT, owned by Philippines-headquartered International Container Terminal Services Inc (ICTSI), creates at least 46 new permanent jobs and includes a 46% pay increase for casual workers and cuts in average weekly hours, the MUA said. A Hutchison source said its agreement provides increased flexibility with labor resources and the availability to better match vessel arrivals at Sydney’s Port Botany and Brisbane while offering improved service to landside railroad and truck operators. Contact Keith Wallis at keithwallis@hotmail.com .

International ports

Longshore labor

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<div class="phx-topic abstract-wrapper">Revamped energy priorities in the US and data-related industrial projects are driving out-of-gauge cargo demand.</div>

Revamped energy priorities in the US and data-related industrial projects are driving out-of-gauge cargo demand.

<div class="phx-topic">Engineering, procurement and construction (EPC) companies are riding a wave of demand for projects in the nuclear, oil and gas, and semiconductor industries, while also preparing for new work that could become available now that US defense spending is set to cross the trillion-dollar threshold. As large-scale projects materialize, those sectors could become significant drivers of project cargo activity through the end of 2025 and beyond — with US energy priorities shifting to fossil fuels and the rise of artificial intelligence (AI) driving investments in power-hungry datacenters and semiconductor chip factories. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — were bullish in reporting results from their latest earnings period. EPCs are key shippers of project cargo, procuring and transporting materials and equipment related to the construction of industrial, energy and defense projects. For Australian engineering group Worley, some of the company’s most significant contracts have come from liquefied natural gas (LNG) projects, along with other work in the energy, chemicals and resources sectors, according to the company’s 2025 fiscal year report issued Aug. 27. Worley increased its year-over-year annual project bookings by 32% to $11.2 billion; that amount includes the first phase of Venture Global’s CP2 project, a major LNG export facility in Louisiana that was given a notice to proceed in July. All told, Worley is involved in the early phases of about five LNG projects, CEO and managing director Chris Ashton said during the company’s most recent earnings call. “The LNG market presents good opportunities, and we are well-positioned for growth in this area,” Ashton said. Worley is also the EPC for ExxonMobil’s Baytown refinery project in Texas, which was included in Worley’s $11 billion project backlog for the year and contributed to a 22% increase over 2024. <h3>Fluor anticipates turnaround </h3>Texas-based engineering and construction company Fluor is looking to nuclear power, the semiconductor and datacenter markets, and a US mining resurgence for project opportunities after a year-over-year decline in new awards in its most recent quarter. In the company’s second-quarter earnings call, CEO and director James Breur said customers continue to exercise caution because of ongoing trade policy discussions and cost increases. But he expects project investments to accelerate “once the effects of the recently enacted pro-growth policies materialize.” New awards fell 43% to $1.8 billion in the second quarter, with the steepest decline coming from the company’s urban solutions division, which fell 65% to $856 million and includes technology, infrastructure and mining projects. Fluor’s work backlog also fell 13% to $28.2 billion for the quarter. “In semiconductors, our clients’ investment intentions have not yet translated into meaningful new awards,” Breur said of projects to develop microchip facilities. <h3>KBR looks to defense spending boon </h3>Houston-based defense contractor KBR is eyeing project opportunities that could come from the broad spending bill approved by Congress, which became law on July 4 and adds $150 billion in spending to the defense department’s $850 billion baseline budget. “We have line of sight to the first of a $1 trillion defense budget, which is lined up for 2026,” said Stuart Bradie, KBR’s president and CEO. KBR’s year-over-year work backlog grew 5% to $21.6 billion for the second quarter. Major contracts include a $476 million deal to support base operations in Djibouti and a contract extension through 2030 to support the US European Command (EUCOM) and the US Northern Command (NORTHCOM). LNG, ammonia and infrastructure were among other core markets for KBR, with the company in July winning a front-end engineering design (FEED) contract to develop an ammonia and urea production plant in Iraq. Meanwhile, multinational oil and gas services contractor TechnipFMC is on pace to reach its three-year goal of $30 billion in work orders from offshore projects by the end of 2025, according to the company’s latest quarterly earnings report. Among those projects is a five-year contract the company won in July from Vår Energi to provide engineering, procurement, construction and installation services for offshore hydrocarbon developments on the Norwegian continental shelf. “We see strength in offshore continuing, supported by client discussions for projects that are likely to be sanctioned through the end of the decade,” TechnipFMC CEO and chairman Douglas Pferdehirt said during the company’s second-quarter earnings call. TechnipFMC’s year-over-year project backlog for the quarter grew 22% to $15.8 billion in its subsea division, which accounts for over 90% of the company’s business and develops systems for offshore oil and gas projects. Just over half of the subsea backlog comes from projects scheduled for or after 2027. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

Engineering, procurement and construction (EPC) companies are riding a wave of demand for projects in the nuclear, oil and gas, and semiconductor industries, while also preparing for new work that could become available now that US defense spending is set to cross the trillion-dollar threshold. As large-scale projects materialize, those sectors could become significant drivers of project cargo activity through the end of 2025 and beyond — with US energy priorities shifting to fossil fuels and the rise of artificial intelligence (AI) driving investments in power-hungry datacenters and semiconductor chip factories. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — were bullish in reporting results from their latest earnings period. EPCs are key shippers of project cargo, procuring and transporting materials and equipment related to the construction of industrial, energy and defense projects. For Australian engineering group Worley, some of the company’s most significant contracts have come from liquefied natural gas (LNG) projects, along with other work in the energy, chemicals and resources sectors, according to the company’s 2025 fiscal year report issued Aug. 27. Worley increased its year-over-year annual project bookings by 32% to $11.2 billion; that amount includes the first phase of Venture Global’s CP2 project, a major LNG export facility in Louisiana that was given a notice to proceed in July. All told, Worley is involved in the early phases of about five LNG projects, CEO and managing director Chris Ashton said during the company’s most recent earnings call. “The LNG market presents good opportunities, and we are well-positioned for growth in this area,” Ashton said. Worley is also the EPC for ExxonMobil’s Baytown refinery project in Texas, which was included in Worley’s $11 billion project backlog for the year and contributed to a 22% increase over 2024. Fluor anticipates turnaround Texas-based engineering and construction company Fluor is looking to nuclear power, the semiconductor and datacenter markets, and a US mining resurgence for project opportunities after a year-over-year decline in new awards in its most recent quarter. In the company’s second-quarter earnings call, CEO and director James Breur said customers continue to exercise caution because of ongoing trade policy discussions and cost increases. But he expects project investments to accelerate “once the effects of the recently enacted pro-growth policies materialize.” New awards fell 43% to $1.8 billion in the second quarter, with the steepest decline coming from the company’s urban solutions division, which fell 65% to $856 million and includes technology, infrastructure and mining projects. Fluor’s work backlog also fell 13% to $28.2 billion for the quarter. “In semiconductors, our clients’ investment intentions have not yet translated into meaningful new awards,” Breur said of projects to develop microchip facilities. KBR looks to defense spending boon Houston-based defense contractor KBR is eyeing project opportunities that could come from the broad spending bill approved by Congress, which became law on July 4 and adds $150 billion in spending to the defense department’s $850 billion baseline budget. “We have line of sight to the first of a $1 trillion defense budget, which is lined up for 2026,” said Stuart Bradie, KBR’s president and CEO. KBR’s year-over-year work backlog grew 5% to $21.6 billion for the second quarter. Major contracts include a $476 million deal to support base operations in Djibouti and a contract extension through 2030 to support the US European Command (EUCOM) and the US Northern Command (NORTHCOM). LNG, ammonia and infrastructure were among other core markets for KBR, with the company in July winning a front-end engineering design (FEED) contract to develop an ammonia and urea production plant in Iraq. Meanwhile, multinational oil and gas services contractor TechnipFMC is on pace to reach its three-year goal of $30 billion in work orders from offshore projects by the end of 2025, according to the company’s latest quarterly earnings report. Among those projects is a five-year contract the company won in July from Vår Energi to provide engineering, procurement, construction and installation services for offshore hydrocarbon developments on the Norwegian continental shelf. “We see strength in offshore continuing, supported by client discussions for projects that are likely to be sanctioned through the end of the decade,” TechnipFMC CEO and chairman Douglas Pferdehirt said during the company’s second-quarter earnings call. TechnipFMC’s year-over-year project backlog for the quarter grew 22% to $15.8 billion in its subsea division, which accounts for over 90% of the company’s business and develops systems for offshore oil and gas projects. Just over half of the subsea backlog comes from projects scheduled for or after 2027. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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