<div class="phx-topic abstract-wrapper">THE FUTURES MARKET for ocean freight was sluggish again last week. The major event of the week was t</div>

THE FUTURES MARKET for ocean freight was sluggish again last week. The major event of the week was t

<div>THE FUTURES MARKET for ocean freight was sluggish again last week. The major event of the week was the expiry of the October futures contract at 1651, theaverage of the Baltic Freight Index for the five final trading days during the month.The market continued to be buoyed by expectations of Soviet grain buying (and, by implication, ship chartering), although many of the traders reminded me that this is hardly fresh news.The lack of such news explains why ocean freight futures prices have been languishing in recent weeks, albeit at some very strong levels. What the static futures pricing has done,...

THE FUTURES MARKET for ocean freight was sluggish again last week. The major event of the week was the expiry of the October futures contract at 1651, the average of the Baltic Freight Index for the five final trading days during the month. The market continued to be buoyed by expectations of Soviet grain buying (and, by implication, ship chartering), although many of the traders reminded me that this is hardly fresh news.The lack of such news explains why ocean freight futures prices have been languishing in recent weeks, albeit at some very strong levels. What the static futures pricing has done, however, is to make the options on futures (calls and puts) very cheap, in that they were reflecting extremely low variations, known as volatility, in the futures prices. For freight futures traders who believe that a big move up, or down, will occur, this could be a very good time to buy options. The marketing committee that covers the freight futures market in London again will be surveying potential users of the market, and is discussing a major revamp of the Baltic Freight Index. A few months ago, I suggested here that the exchange would go to a "single route index" that everyone in the market might follow; for example, trading futures on the U.S. Gulf-to-Japan Panamax grain route. This idea now has been modified by the committee, and the exchange might be moving in the direction of a composite of several routes, in the Panamax-size class. This opens the way, at a later date, for indices on Handy-size vessels, and on larger, Cape-size vessels. Various indices are being flogged around by brokers hoping to get their names out in the market. But as we have seen with the present freight index, even the imprimatur of the 200-year-old Baltic Exchange proved to be of little value in selling the concept. Last week's column caused one sale and purchase broker to call me and ask what types of engines I was referring to in my article. After a few minutes' conversation, we agreed that futures contracts on transportation equipment, or on anything that has a variety of deliverable grades, will end up being priced according to some type of lowest common denominator. In terms of this week's discussion, the message is that whatever new index is arrived at must be viewed as a widely accepted common denominator if it is to gain acceptance. For sale and purchase brokers valuing vessels, or leasing companies and banks trying to price marine equipment, the idea is to start with the "standard" and work up or down, depending on the different features. CLOSING PRICES AS OF FRIDAY, 11/1/91: BFI Spot Price: 1654 Oct. (settle) 1651 Nov. 1698 Dec. 1695 Jan. 1715 April. 1715 July 1477

Maritime

BARRY PARKER FUTURES AND SHIPPING

<div class="phx-topic abstract-wrapper">The reinstated service connecting the port with Colombia and the Dominican Republic will be supported by Savannah’s new customs facility that specializes in reefer cargoes. </div>

The reinstated service connecting the port with Colombia and the Dominican Republic will be supported by Savannah’s new customs facility that specializes in reefer cargoes.

Feature image

<div class="phx-topic">Seaboard Marine is resuming a weekly service connecting the Port of Savannah to the Caribbean and South America. The service comes as Savannah prepares to open a new on-site customs facility intended to serve cold-chain shippers that are likely customers for the service. The Georgia Ports Authority (GPA) said Thursday that Seaboard has reinstated its direct, weekly shipping service between Savannah and the Colombian ports of Cartagena, Barranquilla and Santa Marta, along with Rio Haina in the Dominican Republic. The first Savannah call was on Jan. 7 by the 1,781-TEU Seaboard Gemini. The ship is expected to make its southbound sailing on Jan. 14, officially launching its schedule. “We are providing importers and exporters across the Southeast with improved transit times, greater schedule integrity, and the reliability they need to grow their businesses,” Piero Buitano, Seaboard’s senior vice president, said in a joint statement. Georgia Ports Chief Commercial Officer Flavio Batista said the service will offer cold-chain and transshipment options to and from the West Coast of South America. The service offers weekly Wednesday arrivals and departures in Savannah. The service will be supported by a US Customs exam site the GPA will open at its Garden City Terminal by the spring. The $44 million facility will offer on-terminal agricultural inspections in temperature-controlled environments, direct vessel discharge to inspection sites and multi-temperature zones designed for various produce types, allowing for 16 inspections per day, the GPA said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Seaboard Marine is resuming a weekly service connecting the Port of Savannah to the Caribbean and South America. The service comes as Savannah prepares to open a new on-site customs facility intended to serve cold-chain shippers that are likely customers for the service. The Georgia Ports Authority (GPA) said Thursday that Seaboard has reinstated its direct, weekly shipping service between Savannah and the Colombian ports of Cartagena, Barranquilla and Santa Marta, along with Rio Haina in the Dominican Republic. The first Savannah call was on Jan. 7 by the 1,781-TEU Seaboard Gemini. The ship is expected to make its southbound sailing on Jan. 14, officially launching its schedule. “We are providing importers and exporters across the Southeast with improved transit times, greater schedule integrity, and the reliability they need to grow their businesses,” Piero Buitano, Seaboard’s senior vice president, said in a joint statement. Georgia Ports Chief Commercial Officer Flavio Batista said the service will offer cold-chain and transshipment options to and from the West Coast of South America. The service offers weekly Wednesday arrivals and departures in Savannah. The service will be supported by a US Customs exam site the GPA will open at its Garden City Terminal by the spring. The $44 million facility will offer on-terminal agricultural inspections in temperature-controlled environments, direct vessel discharge to inspection sites and multi-temperature zones designed for various produce types, allowing for 16 inspections per day, the GPA said. Contact Michael Angell at michael.angell@spglobal.com .

Cool Cargo News

North American ports

Container lines

Seaboard restarts South America service calling at Savannah

<div class="phx-topic abstract-wrapper">The commission’s review of an administrative law judge’s earlier decision on late fees that MSC charged for non-operating reefers found the overcharges amounted to a “practice” by the carrier.</div>

The commission’s review of an administrative law judge’s earlier decision on late fees that MSC charged for non-operating reefers found the overcharges amounted to a “practice” by the carrier.

<div class="phx-topic">The Federal Maritime Commission (FMC) has increased the total civil penalty Mediterranean Shipping Co. will have to pay for overcharging late fees on non-operating reefer containers from $16 million to over $22 million. In changing the penalty, the FMC determined that the overcharges were too frequent and persistent to be considered a billing mistake. In an order issued this week, the FMC’s three sitting commissioners reversed part of an administrative law judge’s February 2025 decision stemming from an agency investigation into MSC’s detention and demurrage charges for non-operating reefers (NORs). The investigation found that during 2021, MSC sometimes charged shippers late fees on NORs at the higher rate of an operating reefer container. MSC’s tariff did not outline the late fees for NORs. But it had an unofficial policy of billing customers the same late fees as a standard dry container as NORs served the same purpose. MSC said the overcharges were the result of problems with its billing software, which didn’t distinguish between operating and non-operating reefers. MSC refunded $2 million to customers for the overcharges. While the administrative law judge ruled MSC’s tariff violated shipping law for not outlining late fees on NORs, the actual billing was a “mistake” and not a “practice” that would indicate a knowing violation of the law. The judge cited that only 23% of the NOR invoices in 2021 had the overcharges and did not assess a penalty for the overcharges. However, the commissioners sided with the agency’s enforcement arm that the prevalence of overcharges, which occurred 2,629 times, did constitute a practice, even if they weren’t a willful violation of shipping law. The FMC’s decision said the overcharges occurred 10 times per day for more than eight months. “Even if mainly an unintentional result of a billing system error, the thousands of overcharges were too numerous and frequent to be considered anything but a practice,” the FMC said. “They were unreasonable charges for NORs, which do not require the enhanced care operating reefers do.” MSC was not immediately available for comment. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The Federal Maritime Commission (FMC) has increased the total civil penalty Mediterranean Shipping Co. will have to pay for overcharging late fees on non-operating reefer containers from $16 million to over $22 million. In changing the penalty, the FMC determined that the overcharges were too frequent and persistent to be considered a billing mistake. In an order issued this week, the FMC’s three sitting commissioners reversed part of an administrative law judge’s February 2025 decision stemming from an agency investigation into MSC’s detention and demurrage charges for non-operating reefers (NORs). The investigation found that during 2021, MSC sometimes charged shippers late fees on NORs at the higher rate of an operating reefer container. MSC’s tariff did not outline the late fees for NORs. But it had an unofficial policy of billing customers the same late fees as a standard dry container as NORs served the same purpose. MSC said the overcharges were the result of problems with its billing software, which didn’t distinguish between operating and non-operating reefers. MSC refunded $2 million to customers for the overcharges. While the administrative law judge ruled MSC’s tariff violated shipping law for not outlining late fees on NORs, the actual billing was a “mistake” and not a “practice” that would indicate a knowing violation of the law. The judge cited that only 23% of the NOR invoices in 2021 had the overcharges and did not assess a penalty for the overcharges. However, the commissioners sided with the agency’s enforcement arm that the prevalence of overcharges, which occurred 2,629 times, did constitute a practice, even if they weren’t a willful violation of shipping law. The FMC’s decision said the overcharges occurred 10 times per day for more than eight months. “Even if mainly an unintentional result of a billing system error, the thousands of overcharges were too numerous and frequent to be considered anything but a practice,” the FMC said. “They were unreasonable charges for NORs, which do not require the enhanced care operating reefers do.” MSC was not immediately available for comment. Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Container Shipping News

FMC raises fine on MSC in case over non-operating reefers

<div class="phx-topic abstract-wrapper">The materialization of any seasonal import rush and how carriers respond with capacity will give the container shipping market a better sense of first-half demand.</div>

The materialization of any seasonal import rush and how carriers respond with capacity will give the container shipping market a better sense of first-half demand.

<div class="phx-topic">The seasonal rush of US imports before Chinese factories idle in mid-February for Lunar New Year will be the trans-Pacific trade’s first major test of 2026, with forwarders and carriers divided on the strength of demand in a largely depressed market.  The materialization of any seasonal rush and how carriers respond with capacity will give the industry a better sense of first-half demand, reflecting restocking for post-holiday sales and demand for spring wares. The surge in shipping before Chinese production significantly slows ahead of the Lunar New Year has historically pushed up spot rates, giving carriers better standing in trans-Pacific service contracts. The National Retail Federation (NRF), in its monthly Global Port Tracker released on Friday, forecast the first month-over-month gain in import volumes (January from December) in six months, but noted that year-over-year import volumes would remain negative compared with quite strong import volumes early in 2025 as retailers frontloaded merchandise due to the expectation of higher tariffs. “There should be a brief bump in imports this month ahead of Lunar New Year factory shutdowns in Asia, but we’re otherwise headed into the post-holiday shopping lull that comes each year,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in a statement accompanying the group’s import forecast. Monthly imports are down by double digits year overyear, but, encouragingly, bookings for Asia exports to North America have held up in the last two months, according to data from maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. Weekly Asia export bookings to the West Coast of North America began rising in December from November, averaging more than 150,000 TEUs a week on a four-week average compared with 77,000-80,000 TEUs per week in the prior month, according to the data. According to the ports of Los Angeles and Long Beach, which forecast the vessel arrivals and TEUs they will handle several weeks in advance, import volumes are peaking at the port complex at about 220,000 TEUs during the week of Jan. 4 and about 210,000 TEUs for the week of Jan. 11. Imports of 200,000 TEUs-plus represent a solid week in the largest US gateway. Imports are forecast to drop over the subsequent three weeks to about 175,000 TEUs, which is considered a normal seasonal lull, before returning to higher levels beginning in mid-February as freight that was loaded just prior to Lunar New Year lands. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7f641553-97ec-4014-8e54-fef6408538d9"></dynamic-object></div>The timing of the pre-Lunar New Year cargo surge is affected this year by the later-than-usual holiday in Asia, which falls on Feb. 17. As a result, imports will likely increase in February and continue through the end of the month. The only question is the magnitude of the cargo spike. Even though many forwarders do not see a “surge” this year similar to the trans-Pacific surge experienced in January–February 2025, they say a modest increase in import volumes compared with last month is likely leading up to the factory closures in Asia. “There is no catalyst [for a surge],” one forwarder told the Journal of Commerce. “Importers are filling current orders, but they’re not pulling forward inventory.” According to the December Logistics Managers’ Report, the index reading was 54.2, down from November’s 55.7. “This is the lowest rate of expansion since April of 2024,” the report said. “I don’t see much inventory-building since the beginning of the year,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. Ken O’Brien, president and CEO of Gemini Shippers Group, said the members of the group saw single-digit year-over-year declines in volumes in the fourth quarter due to the comparatively strong import volumes in 2024, although Gemini forecasts a 2% to 5% increase in trade growth in 2026. Industry adviser David Bennett said he is upbeat about the trans-Pacific market in the new year because he believes the largest US trade lane is normalizing back to the seasonal peaks and valleys the trade was accustomed to before the pandemic five years ago. “We have forgotten what that is like,” he said. “I see a nice pickup in volumes developing.” <h3>Spot rates higher </h3>Despite the year-over-year decline in imports this fall, trans-Pacific carriers were nevertheless successful in implementing a series of bi-monthly general rate increases (GRIs). Industry analysts and forwarders say carriers over the last several months have been able to keep a floor under spot rates through a combination of blank sailings and discipline because they agree a rate war would help neither carriers nor their customers. Resisting the urge to slash freight-all-kinds rates while consistently pepping up general rates increases has allowed carriers to push up spot rates and then watch them glide down. In the last four weeks, carriers’ strategy has produced a double-digit surge on a scale not seen since last summer’s rush. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU as of Thursday, up almost 42% from $1,270 per FEU on Dec. 12. The East Coast rate of $3,175 per FEU is up 33% over the past four weeks. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. However, a proposed Jan. 1 GRI is not holding, a carrier executive told the Journal of Commerce this week. “Bookings are not really strong. There is no space shortage,” the carrier executive said. Nevertheless, spot rates are considered by carriers and their customers to be at levels that should not push down pricing in the 2026–27 service contract negotiations that will ramp up in intensity this month and next. That’s because spot rates are well above the current 2025–26 contract rates that were negotiated by midsize shippers last spring. Those contracts were priced about $1,700 to $1,850 per FEU to the West Coast and about $1,000 per FEU higher to the East Coast. Still, given the muted demand compared with last year in the trans-Pacific, the environment appears to favor the customers. “Aggregate supply is up. Supply is going up more than demand,” O’Brien said. “That is the reality.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Mark Szakonyi at <a href="https://www.joc.com/article/mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>.</div>

The seasonal rush of US imports before Chinese factories idle in mid-February for Lunar New Year will be the trans-Pacific trade’s first major test of 2026, with forwarders and carriers divided on the strength of demand in a largely depressed market.  The materialization of any seasonal rush and how carriers respond with capacity will give the industry a better sense of first-half demand, reflecting restocking for post-holiday sales and demand for spring wares. The surge in shipping before Chinese production significantly slows ahead of the Lunar New Year has historically pushed up spot rates, giving carriers better standing in trans-Pacific service contracts. The National Retail Federation (NRF), in its monthly Global Port Tracker released on Friday, forecast the first month-over-month gain in import volumes (January from December) in six months, but noted that year-over-year import volumes would remain negative compared with quite strong import volumes early in 2025 as retailers frontloaded merchandise due to the expectation of higher tariffs. “There should be a brief bump in imports this month ahead of Lunar New Year factory shutdowns in Asia, but we’re otherwise headed into the post-holiday shopping lull that comes each year,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in a statement accompanying the group’s import forecast. Monthly imports are down by double digits year overyear, but, encouragingly, bookings for Asia exports to North America have held up in the last two months, according to data from maritime visibility provider Vizion and data and analytics company Dun & Bradstreet. Weekly Asia export bookings to the West Coast of North America began rising in December from November, averaging more than 150,000 TEUs a week on a four-week average compared with 77,000-80,000 TEUs per week in the prior month, according to the data. According to the ports of Los Angeles and Long Beach, which forecast the vessel arrivals and TEUs they will handle several weeks in advance, import volumes are peaking at the port complex at about 220,000 TEUs during the week of Jan. 4 and about 210,000 TEUs for the week of Jan. 11. Imports of 200,000 TEUs-plus represent a solid week in the largest US gateway. Imports are forecast to drop over the subsequent three weeks to about 175,000 TEUs, which is considered a normal seasonal lull, before returning to higher levels beginning in mid-February as freight that was loaded just prior to Lunar New Year lands. The timing of the pre-Lunar New Year cargo surge is affected this year by the later-than-usual holiday in Asia, which falls on Feb. 17. As a result, imports will likely increase in February and continue through the end of the month. The only question is the magnitude of the cargo spike. Even though many forwarders do not see a “surge” this year similar to the trans-Pacific surge experienced in January–February 2025, they say a modest increase in import volumes compared with last month is likely leading up to the factory closures in Asia. “There is no catalyst [for a surge],” one forwarder told the Journal of Commerce. “Importers are filling current orders, but they’re not pulling forward inventory.” According to the December Logistics Managers’ Report, the index reading was 54.2, down from November’s 55.7. “This is the lowest rate of expansion since April of 2024,” the report said. “I don’t see much inventory-building since the beginning of the year,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. Ken O’Brien, president and CEO of Gemini Shippers Group, said the members of the group saw single-digit year-over-year declines in volumes in the fourth quarter due to the comparatively strong import volumes in 2024, although Gemini forecasts a 2% to 5% increase in trade growth in 2026. Industry adviser David Bennett said he is upbeat about the trans-Pacific market in the new year because he believes the largest US trade lane is normalizing back to the seasonal peaks and valleys the trade was accustomed to before the pandemic five years ago. “We have forgotten what that is like,” he said. “I see a nice pickup in volumes developing.” Spot rates higher Despite the year-over-year decline in imports this fall, trans-Pacific carriers were nevertheless successful in implementing a series of bi-monthly general rate increases (GRIs). Industry analysts and forwarders say carriers over the last several months have been able to keep a floor under spot rates through a combination of blank sailings and discipline because they agree a rate war would help neither carriers nor their customers. Resisting the urge to slash freight-all-kinds rates while consistently pepping up general rates increases has allowed carriers to push up spot rates and then watch them glide down. In the last four weeks, carriers’ strategy has produced a double-digit surge on a scale not seen since last summer’s rush. Platts, a sister company of the Journal of Commerce within S&P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU as of Thursday, up almost 42% from $1,270 per FEU on Dec. 12. The East Coast rate of $3,175 per FEU is up 33% over the past four weeks. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. However, a proposed Jan. 1 GRI is not holding, a carrier executive told the Journal of Commerce this week. “Bookings are not really strong. There is no space shortage,” the carrier executive said. Nevertheless, spot rates are considered by carriers and their customers to be at levels that should not push down pricing in the 2026–27 service contract negotiations that will ramp up in intensity this month and next. That’s because spot rates are well above the current 2025–26 contract rates that were negotiated by midsize shippers last spring. Those contracts were priced about $1,700 to $1,850 per FEU to the West Coast and about $1,000 per FEU higher to the East Coast. Still, given the muted demand compared with last year in the trans-Pacific, the environment appears to favor the customers. “Aggregate supply is up. Supply is going up more than demand,” O’Brien said. “That is the reality.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Port News

Forwarding

Trans-Pacific

Pre-Lunar New Year demand to give trans-Pac market first test of 2026

<div class="phx-topic abstract-wrapper">The declines from the country’s top three carriers are in line with what other carriers have reported thus far in an unsettled container shipping market.</div>

The declines from the country’s top three carriers are in line with what other carriers have reported thus far in an unsettled container shipping market.

<div class="phx-topic">Taiwan’s big three carriers saw revenue slide last year as weaker freight rates and cargo volumes took their toll on operating revenues. Evergreen Marine, the largest of the three, saw 2025 revenue fall 18% to $12 billion from almost $15 billion in 2024, it said in a stock exchange filing Thursday. Yang Ming, Taiwan’s second-largest carrier, reported the biggest drop, saying Friday that 2025 revenue fell 27% to $5.3 billion against $7 billion in the year prior. Intra-Asia focused Wan Hai Lines posted a 13% decline in 2025 revenue to $4.5 billion, it said in a filing Friday. The carriers gave no further details, as profit figures will be released as part of their formal annual results announcements in the next few months. But the revenue declines are thus far in line with the 2025 results of other carriers, <a href="https://www.joc.com/article/fourth-quarter-downturn-weighs-on-oocls-full-year-operating-result-6149730">with OOCL saying Friday</a> its revenue of $8.7 billion last year was down 10.6%. Trans-Pacific services were the biggest revenue generators for all three Taiwanese carriers last year. But indicative of the rate declines that hit their revenues, Shanghai Shipping Exchange data carried on the Journal of Commerce’s Gateway platform shows spot rates from Shanghai to the US West Coast tumbled 56% over the course of the year to end at $2,188 per FEU as of Jan. 2. Yang Ming in its filing indicated a pre-Lunar New Year cargo rush was driving volumes higher and supporting a rebound in revenues as 2026 began, momentum it expects to continue ahead of the holiday in mid-February. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Taiwan’s big three carriers saw revenue slide last year as weaker freight rates and cargo volumes took their toll on operating revenues. Evergreen Marine, the largest of the three, saw 2025 revenue fall 18% to $12 billion from almost $15 billion in 2024, it said in a stock exchange filing Thursday. Yang Ming, Taiwan’s second-largest carrier, reported the biggest drop, saying Friday that 2025 revenue fell 27% to $5.3 billion against $7 billion in the year prior. Intra-Asia focused Wan Hai Lines posted a 13% decline in 2025 revenue to $4.5 billion, it said in a filing Friday. The carriers gave no further details, as profit figures will be released as part of their formal annual results announcements in the next few months. But the revenue declines are thus far in line with the 2025 results of other carriers, with OOCL saying Friday its revenue of $8.7 billion last year was down 10.6%. Trans-Pacific services were the biggest revenue generators for all three Taiwanese carriers last year. But indicative of the rate declines that hit their revenues, Shanghai Shipping Exchange data carried on the Journal of Commerce’s Gateway platform shows spot rates from Shanghai to the US West Coast tumbled 56% over the course of the year to end at $2,188 per FEU as of Jan. 2. Yang Ming in its filing indicated a pre-Lunar New Year cargo rush was driving volumes higher and supporting a rebound in revenues as 2026 began, momentum it expects to continue ahead of the holiday in mid-February. Contact Keith Wallis at keithwallis@hotmail.com .

Taiwan’s major ocean carriers say weaker rates dragged down 2025 revenues

<div class="phx-topic abstract-wrapper">Seasonal fog along Texas waterways has caused ocean carriers to switch up typical Gulf Coast port rotations, sometimes with little warning of vessel arrivals.</div>

Seasonal fog along Texas waterways has caused ocean carriers to switch up typical Gulf Coast port rotations, sometimes with little warning of vessel arrivals.

<div class="phx-topic">Seasonal fog along the US Gulf Coast is delaying container ship arrivals to the Port of Houston and prompting diversions to Mobile. But shippers out of Mobile say they are only getting last-minute warnings of the diversions, giving them little time to ready their freight and causing further delays as export containers miss their cutoff day. Houston, the busiest port in the US when all types of ship traffic are considered, including tankers and bulkers, typically experiences fog during the winter months. While it’s unclear if this season’s fog episodes are more frequent or of longer duration, more container ships are having to wait longer to berth due to the fog. During the month of December, Houston had 21 container ships sit at anchor with an average delay of four days, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. During the holiday period, some ships were seeing five-day dwells at anchorage. The delays are spilling into 2026, with CMA CGM warning in an advisory this week of “building vessel congestion and dwell due to dense fog and seasonal holiday terminal closures.” <h3>Opting for Mobile </h3>Instead of waiting out the fog, ocean carriers are reversing typical port rotations for Gulf Coast services by calling Mobile first, then Houston. Since December, at least nine container ships that previously had a Houston-to-Mobile rotation instead made Mobile the first call, Sea-web data shows. Another four container ships that were not on regular deployment to the Gulf Coast also made Mobile-to-Houston rotations. Maersk rotated four ships to Mobile ahead of Houston during the period, while three Mediterranean Shipping Co. vessels and two CMA CGM ships made similar rotations. Evergreen Marine, Ocean Network Express, HMM and Yang Ming also followed a Mobile-to-Houston rotation. In many instances, though, shippers tell the Journal of Commerce they have only been given one-day notice of the schedule changes and vessel arrivals. That’s been especially difficult for exporters, who typically have a window of about a week to prepare an export container and bring it to the port. The director of global logistics for a Houston-based chemicals manufacturer that ships about 20,000 containers annually, primarily out of Mobile, said ships that he’s booked export freight on have arrived about a week ahead of schedule, well ahead of when his company has been able to stuff a container and find a trucker to move the box. “We’ve missed the cutoff date on several voyages,” the source said, estimating that the early arrivals into Mobile have impacted about 800 of his company’s export containers since December. “We’re scrambling the day of the cutoff,” he said. “You can’t tell me that day to have the container ready.” As a result of the missed cutoff, his cargo is being rolled to later voyages. But because space is already booked on those voyages and other shippers have rolled cargo, the source said vessel capacity to certain regions, such as Southeast Asia, has tightened. “I’m not the only guy who has production that needs to get out,” he said. <h3>Carrier communication ‘not proactive’</h3>A Jacksonville-based ocean freight forwarder said one of his clients, a wood products company in Mississippi, ships between 20 and 30 containers per week out of Mobile. While some of that freight is already positioned at Mobile for export, the one-day cutoffs for ships mean his client is having to find space at their facility to store already-loaded export containers that missed a vessel.“It’s like a big game of Jenga,” the forwarder said. “It takes time to stuff and stage these containers. Now you’ve got to move these back to your warehouse and repeat the process.” Other complications ensue because of the missed vessels, the source said. Export wood products may require a US Department of Agriculture certification that the product is pest-free. But the certification is only valid for a limited time, requiring a second certification if the product has not yet been exported. As for the communication from ocean carriers about the schedule changes: “They are not proactive,” the forwarder said. Maersk said in a statement to the Journal of Commerce that it aims to keep customers informed as quickly as possible about weather-related issues affecting services. “When weather disrupts operations, some decisions are necessary to keep our network running smoothly,” Maersk’s statement said. “We aim to keep customers informed as quickly as possible and strive to share updates as soon as any schedule or ETA changes are confirmed.” In a statement to the Journal of Commerce, Port Houston Authority said it is supporting a bill introduced last year by Texas Sen. Ted Cruz and Rep. Brian Babin (R–Texas) that would direct the National Oceanic and Atmospheric Administration to expand observation and improve the forecasting of fog events that impact maritime navigation. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Seasonal fog along the US Gulf Coast is delaying container ship arrivals to the Port of Houston and prompting diversions to Mobile. But shippers out of Mobile say they are only getting last-minute warnings of the diversions, giving them little time to ready their freight and causing further delays as export containers miss their cutoff day. Houston, the busiest port in the US when all types of ship traffic are considered, including tankers and bulkers, typically experiences fog during the winter months. While it’s unclear if this season’s fog episodes are more frequent or of longer duration, more container ships are having to wait longer to berth due to the fog. During the month of December, Houston had 21 container ships sit at anchor with an average delay of four days, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. During the holiday period, some ships were seeing five-day dwells at anchorage. The delays are spilling into 2026, with CMA CGM warning in an advisory this week of “building vessel congestion and dwell due to dense fog and seasonal holiday terminal closures.” Opting for Mobile Instead of waiting out the fog, ocean carriers are reversing typical port rotations for Gulf Coast services by calling Mobile first, then Houston. Since December, at least nine container ships that previously had a Houston-to-Mobile rotation instead made Mobile the first call, Sea-web data shows. Another four container ships that were not on regular deployment to the Gulf Coast also made Mobile-to-Houston rotations. Maersk rotated four ships to Mobile ahead of Houston during the period, while three Mediterranean Shipping Co. vessels and two CMA CGM ships made similar rotations. Evergreen Marine, Ocean Network Express, HMM and Yang Ming also followed a Mobile-to-Houston rotation. In many instances, though, shippers tell the Journal of Commerce they have only been given one-day notice of the schedule changes and vessel arrivals. That’s been especially difficult for exporters, who typically have a window of about a week to prepare an export container and bring it to the port. The director of global logistics for a Houston-based chemicals manufacturer that ships about 20,000 containers annually, primarily out of Mobile, said ships that he’s booked export freight on have arrived about a week ahead of schedule, well ahead of when his company has been able to stuff a container and find a trucker to move the box. “We’ve missed the cutoff date on several voyages,” the source said, estimating that the early arrivals into Mobile have impacted about 800 of his company’s export containers since December. “We’re scrambling the day of the cutoff,” he said. “You can’t tell me that day to have the container ready.” As a result of the missed cutoff, his cargo is being rolled to later voyages. But because space is already booked on those voyages and other shippers have rolled cargo, the source said vessel capacity to certain regions, such as Southeast Asia, has tightened. “I’m not the only guy who has production that needs to get out,” he said. Carrier communication ‘not proactive’ A Jacksonville-based ocean freight forwarder said one of his clients, a wood products company in Mississippi, ships between 20 and 30 containers per week out of Mobile. While some of that freight is already positioned at Mobile for export, the one-day cutoffs for ships mean his client is having to find space at their facility to store already-loaded export containers that missed a vessel. “It’s like a big game of Jenga,” the forwarder said. “It takes time to stuff and stage these containers. Now you’ve got to move these back to your warehouse and repeat the process.” Other complications ensue because of the missed vessels, the source said. Export wood products may require a US Department of Agriculture certification that the product is pest-free. But the certification is only valid for a limited time, requiring a second certification if the product has not yet been exported. As for the communication from ocean carriers about the schedule changes: “They are not proactive,” the forwarder said. Maersk said in a statement to the Journal of Commerce that it aims to keep customers informed as quickly as possible about weather-related issues affecting services. “When weather disrupts operations, some decisions are necessary to keep our network running smoothly,” Maersk’s statement said. “We aim to keep customers informed as quickly as possible and strive to share updates as soon as any schedule or ETA changes are confirmed.” In a statement to the Journal of Commerce, Port Houston Authority said it is supporting a bill introduced last year by Texas Sen. Ted Cruz and Rep. Brian Babin (R–Texas) that would direct the National Oceanic and Atmospheric Administration to expand observation and improve the forecasting of fog events that impact maritime navigation. Contact Michael Angell at michael.angell@spglobal.com .

Houston fog sets up ship diversions to Mobile, forcing exporters to scramble

Use code GTW595 at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code NYW26 at checkout to save 25% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

NEW YEAR SALE

Use code NYW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

Subscribe today using code NYW26 at checkout and save 25% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

Use code NYW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Get into a Gold subscription today and save $500 by using code NYW995 at checkout!

Subscribe Now - Anonymous to Gold - Wide Box

NEW YEAR SALE: Use code NYW26 to save 25% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

NEW YEAR SALE: Subscribe today using code NYW26 at checkout and save 25% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

UPGRADE TO GOLD AND SAVE: Use code GTW595 at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

NEW YEAR SALE: Get into a Gold subscription today and save $500 by using code NYW995 at checkout!

Subscribe Now - Anonymous to Gold - Offer Box

NEW YEAR SALE: Use code NYW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

NEW YEAR SALE: Use code NYW995 at checkout to save $500 on a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

TPM Conference - Rectangle Box

Attend TPM26

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Breakbulk News

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

Seaboard restarts South America service calling at Savannah

FMC raises fine on MSC in case over non-operating reefers

Pre-Lunar New Year demand to give trans-Pac market first test of 2026