<div class="phx-topic abstract-wrapper">China is renewing its efforts to woo its most implacable foe, Taiwan, less than two years after test</div>

China is renewing its efforts to woo its most implacable foe, Taiwan, less than two years after test

<div>China is renewing its efforts to woo its most implacable foe, Taiwan, less than two years after test-firing missiles into the waters off the island.Chinese Foreign Minister Qian Qichen offered a fresh olive branch to Taiwan recently, apparently easing a previous requirement that the island's leaders recognize Chinese sovereignty before any serious dialogue between the two sides could begin.Not that long ago, China was making everyone nervous or angry, belligerently lambasting the United States while selling missile technology to Iran, flexing its territorial muscle in the South China Sea and taking an exceedingly hard-nosed attitude toward issues involving its soon-to-be...

China is renewing its efforts to woo its most implacable foe, Taiwan, less than two years after test-firing missiles into the waters off the island. Chinese Foreign Minister Qian Qichen offered a fresh olive branch to Taiwan recently, apparently easing a previous requirement that the island's leaders recognize Chinese sovereignty before any serious dialogue between the two sides could begin.Not that long ago, China was making everyone nervous or angry, belligerently lambasting the United States while selling missile technology to Iran, flexing its territorial muscle in the South China Sea and taking an exceedingly hard-nosed attitude toward issues involving its soon-to-be new citizens in Hong Kong. But China's Communist Party rulers have unleashed a new personality on their neighbors and rivals. The ''tough guy'' approach has been put on the shelf. Now, it's Mr. Nice Guy. ''We wish our Taiwanese compatriots a Happy (Chinese) New Year,'' Mr. Qian said. Late last month, not to be outdone, a senior Taiwanese official issued his call for the resumption of talks that were broken off in 1995. Yet no one is picking up the telephone. Like a couple of bashful suitors who have had a nasty quarrel, China and Taiwan both say they want to start talking to each other again. They just can't agree how. ''Each side expects the other to make a grand gesture,'' said Andrew Yang, secretary-general of the Chinese Council of Advanced Policy Studies. ''In the meantime, they stall. What they need is a warm-up process, some way of building mutual trust at a lower level before talking at a higher level.'' And what's the main sticking point between those on either side of the Taiwan Strait? It is picayune and arcane enough to drive any observer to distraction. Both sides agree Taiwan is part of China, both agree that one day the mainland and Taiwan should be reunited and both agree there is only ''one China.'' But they can't agree what ''one China'' means. Taiwan separated from the mainland in 1949 when the losing side of China's civil war established a government there to rival the victorious Communist forces in Beijing. The People's Republic of China says one China means both the mainland and Taiwan are under its sovereignty. Taiwan agrees there is only one China, but says that the country is currently divided between two equally sovereign states, the People's Republic and the Republic of China, otherwise known as Taiwan. Until now, Chinese officials have always demanded that Taiwan accept its version of the hallowed ''one China'' policy before a single glass of tea can be drunk together across an official negotiating table. The dispute would be almost comical if the continuing bitter division of China and Taiwan did not have the potential to escalate into war. Several thousand journalists flocked to Taiwan during the spring of 1996 in anticipation of just such an event, when the United States sent a large naval flotilla to the waters of Taiwan as a balance to China's guided missile tests. China's militaristic stand, prompted by the U.S. decision to grant a visa to Taiwanese President Lee Teng-hui, is widely perceived to have backfired. Mr. Lee was elected overwhelmingly by Taiwan's voters in the face of threats from the mainland. Since then, as it has elsewhere in the world, China has opted for a more conciliatory style. Whereas Mr. Lee, a fierce anti-communist, was once regularly denounced in China as, among other things, a prostitute, a liar and the sinner of all millenniums, the mainland media barely broke a sweat when Mr. Lee recently blasted the mainland as ''just stupid.'' ''There's no doubt they are more moderate and more flexible,'' Mr. Yang said. ''China is also getting more skillful in reacting to Taiwanese actions in other parts of the world.'' Part of China's new strategy stems from nervousness brought on by the increasing popularity of Taiwan's main opposition Democratic Progressive Party, which has long called for Taiwanese independence. The Democratic Progressives have shown they can also play word games, changing their goal from an ''independent Taiwan'' to ''Taiwan first'' in an effort to address voter fears over China's long-standing threat to invade should Taiwan ever declare its independence. Mr. Yang, meanwhile, said he doesn't expect a speedy return to the negotiating table. ''The value of face is very important in China.''

BEIJING WARMS UP TO TAIWAN

<div class="phx-topic abstract-wrapper">Technology analyst Gartner’s recent release of a report categorizing 4PL providers signals renewed interest in the concept, even as questions remain about which shippers it is best-suited for.</div>

Technology analyst Gartner’s recent release of a report categorizing 4PL providers signals renewed interest in the concept, even as questions remain about which shippers it is best-suited for.

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<div class="phx-topic">A trio of external forces – tariffs, automation, and cross-border e-commerce – are bringing demand for the 4PL model in global logistics back to the fore. While the 4PL concept has existed for decades, it has gone through periods of being in and out of fashion, often due to the perception that it’s an extraneous layer for shippers wanting to exert more control over their third-party logistics and carrier partners. In December, technology analyst Gartner released its first “4PL Magic Quadrant,” a list of 4PL vendors that grouped players as diverse as shipping line Maersk, 3PL giants DHL, DSV, CH Robinson, and Kuehne + Nagel, and asset-light 4PL specialists like 4Flow and Arvato. Rt in the 4PL model can be largely attributed to the range of disruptive dynamics facing shippers in the almost six years since the pandemic. Those dynamics were heightened by volatile US trade policy over the past year impacting the cost of goods and sourcing decisions via higher tariffs, geopolitical strife, and the rise of automation recalibrating what efficiency per shipment means.  “The need for organizations to quickly develop risk-mitigating, resilient and agile logistics networks due to global disruptions is a contributing factor to the growth in demand for 4PLs,” Gartner said in its December report. The 4PL discussion has always been tinged by confusion, in part due to the non-homogenous nature of companies providing such services, but also because 4PLs are often conflated with terms like managed transportation, lead logistics providoner tried to clarify this confusion by specifying that control towers are not the model itself, but rather a tool. “Control towers are often referred to as the ‘engines’ that drive the 4PL solution and are an important operational and data capture tool of a 4PL,” the Gartner report said. “4PLs are leveraging their control towers to increase horizontal supply chain collaboration.” <h3>3PL or 4PL dilemma </h3>The other source of confusion around the model is differentiating between 3PLs providing actual 4PL services and 3PLs providing services that appear to be 4PL services. Eric Rempel, chief innovation officer at Redwood Logistics, said 3PLs are focused on execution, while 4PLs are focused on orchestration. Redwood, cited in the Gartner report, is both a 3PL, through its US freight brokerage, but also a 4PL through its  platform that focuses on system and partner integration. Felix Kaemmerer, executive vice president at 4Flow, a Germany-based 4PL, said the main justification for 4PL services is a layer of neutrality that enhances risk management for shippers. “Our advice is to separate the transportation, the system and the managed services, to procure them separately so you’re not reliant and avoid that lock-in effect,” he said. “A current 3PL might not be active in that region [a shipper is expanding to], or it might be exposed to subcontracted services. And then there’s a question  maturity. It might be smarter to go with a 3PL and sort out your initial issues in a market and then move to a more neutral 4PL setup.” Kaemmerer, who has spent 15 years at 4Flow, also questioned the idea that 4PL services ever really went out of favor, versus whether the hype around the model goes in and out of fashion. “There’s never been a decline in demand for 4PL services,” he said. “Most companies use the 3PL model, and as they mature, they evaluate whether it makes sense for them to use a 4PL.” Ience, demand has been constant fromverticals like consumer-packaged goods (CPG), whereas now demand is also coming from manufacturing and packaging companies that “10 years ago didn’t know what a 4PL is.” “What’s driving the dem a change in the manufaing model,” he said. “Some customers producing maybe in Europe and using a global 3PL, they’re now changing into new regions and they don’t have the transportation network in [those regions]. In combination with a pressure not to increase [headcount], outsourcing is more appealing.” The second demand driver is access to technology, Kaemmerer said.  “Implementing a [transportation management system] is not rocket science, but it’s also not their specialty,” he said. <h3>Connectivity and coordination </h3>Rempel agreed, saying Redwood has focused on the integration aspect of the 4PL offering to help shippers navigate their complicated tech infrastructure, data needs, and connectivity to transportation partners. “It’s managed connectivity,” he said. “of business comes from companies looking to implement a new TMS or global trade product, and most of those fail due to connectivity. It’s like when you’re renovating a house, you redo the plumbing to make it more modular and flexible.” Osi Tagger, CEO of 4PL , emphasized that the need for shippers to enter new markets to support new suppliers or customers is a key driver of business for 4PLs. “If a company wants to grow outside its borders, it needs partners,” sey going to partner with a 3PL or 4PL? It depends on whether they expect to grow in one try or regionthey expect global growth. If it’s global, you can go with a global 3PL, but then you’re a small customer for them. Or if do it yourself, you manage it from a distance with a bunch of partners, but it’s not in your toolset to do that.” Tagger said common characteristics for  customers are companies growing globally, below $2 billion in revenue and dealing with market uncertainty. Kaemmerer said two broad 4PL models exist in the market: one in which a 4PL provides and operates a TMS as the backbone of its offering, and the other in which the shippers own the TMS and want the 4PL to operate it in an outsourced model. The second model is less attractive to most 4PLs as it’s “more easily replaceable and not naturally embedded into other services” the 4PL provides, Kaemmerer said. He said 4PLs have evolved into supply chain orchestration providers, where a shipper needs to bridge the gap between supply chain planning solutions and the “execution layer.” “They have a TMS, a arehouse management system, an order management system, so they have a perfect planning world,” Kaemmerer said. “But when a disruption happens, they struggle to account for that in the execution level.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.  </div>

A trio of external forces – tariffs, automation, and cross-border e-commerce – are bringing demand for the 4PL model in global logistics back to the fore.  While the 4PL concept has existed for decades, it has gone through periods of being in and out of fashion, often due to the perception that it’s an extraneous layer for shippers wanting to exert more control over their third-party logistics and carrier partners.  In December, technology analyst Gartner released its first “4PL Magic Quadrant,” a list of 4PL vendors that grouped players as diverse as shipping line Maersk, 3PL giants DHL, DSV, CH Robinson, and Kuehne + Nagel, and asset-light 4PL specialists like 4Flow and Arvato.  Rt in the 4PL model can be largely attributed to the range of disruptive dynamics facing shippers in the almost six years since the pandemic. Those dynamics were heightened by volatile US trade policy over the past year impacting the cost of goods and sourcing decisions via higher tariffs, geopolitical strife, and the rise of automation recalibrating what efficiency per shipment means.   “The need for organizations to quickly develop risk-mitigating, resilient and agile logistics networks due to global disruptions is a contributing factor to the growth in demand for 4PLs,” Gartner said in its December report.  The 4PL discussion has always been tinged by confusion, in part due to the non-homogenous nature of companies providing such services, but also because 4PLs are often conflated with terms like managed transportation, lead logistics providoner tried to clarify this confusion by specifying that control towers are not the model itself, but rather a tool.  “Control towers are often referred to as the ‘engines’ that drive the 4PL solution and are an important operational and data capture tool of a 4PL,” the Gartner report said. “4PLs are leveraging their control towers to increase horizontal supply chain collaboration.”  3PL or 4PL dilemma  The other source of confusion around the model is differentiating between 3PLs providing actual 4PL services and 3PLs providing services that appear to be 4PL services.  Eric Rempel, chief innovation officer at Redwood Logistics, said 3PLs are focused on execution, while 4PLs are focused on orchestration. Redwood, cited in the Gartner report, is both a 3PL, through its US freight brokerage, but also a 4PL through its  platform that focuses on system and partner integration.  Felix Kaemmerer, executive vice president at 4Flow, a Germany-based 4PL, said the main justification for 4PL services is a layer of neutrality that enhances risk management for shippers.  “Our advice is to separate the transportation, the system and the managed services, to procure them separately so you’re not reliant and avoid that lock-in effect,” he said. “A current 3PL might not be active in that region [a shipper is expanding to], or it might be exposed to subcontracted services. And then there’s a question  maturity. It might be smarter to go with a 3PL and sort out your initial issues in a market and then move to a more neutral 4PL setup.”  Kaemmerer, who has spent 15 years at 4Flow, also questioned the idea that 4PL services ever really went out of favor, versus whether the hype around the model goes in and out of fashion.  “There’s never been a decline in demand for 4PL services,” he said. “Most companies use the 3PL model, and as they mature, they evaluate whether it makes sense for them to use a 4PL.”  Ience, demand has been constant fromverticals like consumer-packaged goods (CPG), whereas now demand is also coming from manufacturing and packaging companies that “10 years ago didn’t know what a 4PL is.”  “What’s driving the dem a change in the manufaing model,” he said. “Some customers producing maybe in Europe and using a global 3PL, they’re now changing into new regions and they don’t have the transportation network in [those regions]. In combination with a pressure not to increase [headcount], outsourcing is more appealing.”  The second demand driver is access to technology, Kaemmerer said.   “Implementing a [transportation management system] is not rocket science, but it’s also not their specialty,” he said.  Connectivity and coordination  Rempel agreed, saying Redwood has focused on the integration aspect of the 4PL offering to help shippers navigate their complicated tech infrastructure, data needs, and connectivity to transportation partners.  “It’s managed connectivity,” he said. “of business comes from companies looking to implement a new TMS or global trade product, and most of those fail due to connectivity. It’s like when you’re renovating a house, you redo the plumbing to make it more modular and flexible.”  Osi Tagger, CEO of 4PL , emphasized that the need for shippers to enter new markets to support new suppliers or customers is a key driver of business for 4PLs.  “If a company wants to grow outside its borders, it needs partners,” sey going to partner with a 3PL or 4PL? It depends on whether they expect to grow in one try or regionthey expect global growth. If it’s global, you can go with a global 3PL, but then you’re a small customer for them. Or if do it yourself, you manage it from a distance with a bunch of partners, but it’s not in your toolset to do that.”  Tagger said common characteristics for  customers are companies growing globally, below $2 billion in revenue and dealing with market uncertainty.  Kaemmerer said two broad 4PL models exist in the market: one in which a 4PL provides and operates a TMS as the backbone of its offering, and the other in which the shippers own the TMS and want the 4PL to operate it in an outsourced model.  The second model is less attractive to most 4PLs as it’s “more easily replaceable and not naturally embedded into other services” the 4PL provides, Kaemmerer said.  He said 4PLs have evolved into supply chain orchestration providers, where a shipper needs to bridge the gap between supply chain planning solutions and the “execution layer.”  “They have a TMS, a arehouse management system, an order management system, so they have a perfect planning world,” Kaemmerer said. “But when a disruption happens, they struggle to account for that in the execution level.”  Contact Eric Johnson at  eric.johnson@spglobal.com .   

Forwarding

Logistics Technology News

4PL model reemerges as disruptive market dynamics buffet shippers

<div class="phx-topic abstract-wrapper">The agreements include the construction of a dozen 18,000-TEU, LNG-powered vessels that are part of the massive $7 billion fleet renewal program the carrier unveiled in early December.</div>

The agreements include the construction of a dozen 18,000-TEU, LNG-powered vessels that are part of the massive $7 billion fleet renewal program the carrier unveiled in early December.

<div class="phx-topic">Cosco Shipping Holdings is further expanding its long-haul and feeder fleets after signing two shipbuilding orders Tuesday totaling almost $2.7 billion for 18 container ships that will be delivered in 2028 and 2029. The larger deal, worth $2.4 billion, was inked with Shanghai-headquartered Jiangnan Shipyard (Group) Co for 12 18,000-TEU liquefied natural gas-powered dual-fuel container ships, Cosco said in a Hong Kong stock exchange filing. Jiangnan Shipyard is a subsidiary of China State Shipbuilding Corporation (CSSC). The contract is the third to be awarded by Cosco Shipping to a CSSC group shipbuilder since parent company China Cosco Shipping Group and CSSC <a href="https://www.joc.com/article/cosco-shipping-inks-7-billion-deal-for-big-fleet-expansion-6131444">signed a $7 billion umbrella agreement in early December</a> for a package of 87 vessels. Two CSSC deals <a href="https://www.joc.com/article/cosco-awards-initial-newbuilding-deals-as-part-of-7-billion-fleet-expansion-6145063">were signed last week</a>. The Jiangnan Shipyard contract is the first to be awarded for LNG-fueled very-large container ships this year and further reinforces LNG as the next-generation fuel of choice for ocean carriers. Some 4.1 million TEUs of LNG-fueled container ships were on order at the end of last year, according to data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. That compared with 2.1 million TEUs of methanol-fueled ships on order. The Cosco order also takes the total capacity of very-large container ships on order to more than 1 million TEUs, according to Sea-web data. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8be4ac1-33cb-4758-93c4-1d0f92f52e7d"></dynamic-object></div>Cosco said Jiangnan Shipyard was chosen because it offered the most favorable terms with a shorter delivery schedule compared with two other shipyards that submitted offers. While the price per vessel was the median of the those submitted by the three builders, “it remains largely comparable to the lowest quotation,” Cosco said in Tuesday’s filing. The carrier said the ships would be deployed on east-west routes and while they would expand the Cosco group fleet, they would also replace older tonnage. <h3>Smaller deal for regional vessels </h3>The second deal Cosco signed Tuesday was for $284 million for six 3,000-TEU conventionally powered container ships that are set to be delivered between June and December 2028. The contract was inked with Cosco shipbuilding subsidiary Cosco Shipping Heavy Industry (Zhoushan) Co. in eastern China. The vessels are separate from the $7 billion shipbuilding pact China Cosco Shipping and CSSC signed in early December. Cosco said the ships will be deployed on international regional feeder routes, providing stable capacity and reducing vessel costs. They will also assist the carrier in "achieving long-term development in emerging, regional and non-China markets," Cosco said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Cosco Shipping Holdings is further expanding its long-haul and feeder fleets after signing two shipbuilding orders Tuesday totaling almost $2.7 billion for 18 container ships that will be delivered in 2028 and 2029. The larger deal, worth $2.4 billion, was inked with Shanghai-headquartered Jiangnan Shipyard (Group) Co for 12 18,000-TEU liquefied natural gas-powered dual-fuel container ships, Cosco said in a Hong Kong stock exchange filing. Jiangnan Shipyard is a subsidiary of China State Shipbuilding Corporation (CSSC). The contract is the third to be awarded by Cosco Shipping to a CSSC group shipbuilder since parent company China Cosco Shipping Group and CSSC signed a $7 billion umbrella agreement in early December for a package of 87 vessels. Two CSSC deals were signed last week . The Jiangnan Shipyard contract is the first to be awarded for LNG-fueled very-large container ships this year and further reinforces LNG as the next-generation fuel of choice for ocean carriers. Some 4.1 million TEUs of LNG-fueled container ships were on order at the end of last year, according to data from Sea-web, a sister company of the Journal of Commerce within S&P Global. That compared with 2.1 million TEUs of methanol-fueled ships on order. The Cosco order also takes the total capacity of very-large container ships on order to more than 1 million TEUs, according to Sea-web data. Cosco said Jiangnan Shipyard was chosen because it offered the most favorable terms with a shorter delivery schedule compared with two other shipyards that submitted offers. While the price per vessel was the median of the those submitted by the three builders, “it remains largely comparable to the lowest quotation,” Cosco said in Tuesday’s filing. The carrier said the ships would be deployed on east-west routes and while they would expand the Cosco group fleet, they would also replace older tonnage. Smaller deal for regional vessels The second deal Cosco signed Tuesday was for $284 million for six 3,000-TEU conventionally powered container ships that are set to be delivered between June and December 2028. The contract was inked with Cosco shipbuilding subsidiary Cosco Shipping Heavy Industry (Zhoushan) Co. in eastern China. The vessels are separate from the $7 billion shipbuilding pact China Cosco Shipping and CSSC signed in early December. Cosco said the ships will be deployed on international regional feeder routes, providing stable capacity and reducing vessel costs. They will also assist the carrier in "achieving long-term development in emerging, regional and non-China markets," Cosco said. Contact Keith Wallis at keithwallis@hotmail.com.

Container lines

Container Shipping News

Maritime

Cosco inks almost $2.7 billion in deals for 18 newbuild container ships

<div class="phx-topic abstract-wrapper">Operating conditions could also turn expected losses in 2026 into profits despite little clarity over the timing of a widespread return to Red Sea transits, according to the consultancy.</div>

Operating conditions could also turn expected losses in 2026 into profits despite little clarity over the timing of a widespread return to Red Sea transits, according to the consultancy.

<div class="phx-topic">Ocean carriers are expected to report better-than-expected full-year 2025 results over the next few weeks due to higher profit margins through the third quarter and slowing fleet growth, according to maritime consultancy Drewry. Although rates softened and volume slowed on the major east-west trade lanes through the fourth quarter, Drewry is also revising its prior loss-making forecast for 2026. The consultancy now expects the industry to turn a profit despite little clarity over the timing of a widespread return to Red Sea transits that would release 8% of global capacity back into an already oversupplied market. Simon Heaney, senior manager for container research at Drewry, said the container shipping sector’s earnings before interest and taxes (EBIT) margins fell to 12.3% in the third quarter of 2025, well below the 34.5% margin recorded in third-quarter 2024 but still a significant rate-supported improvement on the 7.9% margin in the 2025 second quarter. “This was an unexpected change of direction as we had anticipated that margins would shrink further in 3Q 2025,” Heaney told the Journal of Commerce Tuesday.  The “better-than-expected results” has prompted Drewry to upgrade the financial year 2025 profit forecast from $20 billion to $32 billion and raise the outlook for 2026 from a $10 billion loss to a $1 billion profit, he noted. HSBC Global Investment Research highlighted the narrowing supply-demand gap in a market update that pointed to data showing container fleet growth slowing to 4% in 2026 from 7% in 2025, with demand growth this year slowing to 2.5% compared to 4% in 2025. The report said, “... we think the gap is manageable before worsening in 2027 when [vessel] deliveries surge to all-time highs.” “Demand is holding up despite US container imports declining in the past few months and the National Retail Federation expecting weakness until April, albeit milder than previous forecasts,” HSBC noted.  On the Asia-Europe trade, the latest data from Container Trades Statistics (CTS) shows a 15.5% year-over-year increase in volume in November, which HSBC said indicated <a href="https://www.joc.com/article/asia-europe-ocean-carriers-add-capacity-as-trade-enters-peak-shipping-period-6145059">a pre-Lunar New Year peak season rush</a>. Still no clarity over return to Red Sea A return of container shipping to the Red Sea hangs over the 2026 outlook, with the timing of such a return likely to have a material influence on carrier earnings. Analysts remain divided over when a widescale return will happen. Carriers have mostly avoided the Red Sea and Suez Canal since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza. “We see no immediate resolution to the Red Sea disruptions, which alongside ongoing port congestion in Europe should keep capacity tight and prevent freight rates from capitulating,” HSBC said. J.P. Morgan had a more positive view, noting that a 20% increase in Suez transits in December compared to the previous month has created growing interest around shipping’s return to the far-quicker route. “We expect this to happen post-Lunar New Year on Feb. 17, and we see limited disruption risk of congestion in Europe materially impacting short-term rates should the timing coincide with the seasonal trough,” the investment bank noted. Peter Sand, chief analyst for rate benchmarking platform Xeneta, said it was “highly unlikely” carriers would present extensive guidance on a Red Sea return in their 2026 outlooks. He expected carriers to maintain Cape of Good Hope transits around southern Africa while planning for a gradual shift to the Suez route. Another Maersk vessel transits Suez Following the successful transit of the Maersk Sebarok through the Suez and Red Sea in December, the carrier sent the Maersk Denver through the waterway this week; both vessels are part of the MECL service linking India to the US East Coast. However, in a customer advisory Tuesday, Maersk was quick to reiterate its position that the safety of crew, vessels and cargo remained “of utmost importance,” noting the necessary safety measures were applied during the transit of the Maersk Denver.  “Customers with cargo on this vessel are being informed directly,” the carrier said. “Assuming that security thresholds continue to be met, we will continue our stepwise approach towards gradually resuming navigation along the east-west corridor via the Suez Canal and the Red Sea. There are no additional sailings to announce at this time.”  While the ceasefire between Israel and Hamas that was agreed to in October is holding, rapidly unfolding geopolitical events in the region are again raising red flags, according to Jack Kennedy, head of Middle East and North Africa country risk at S&amp;P Global Market Intelligence. “If Israel gets involved in [new] strikes on Iran, there is a higher likelihood that the Houthi will resume some kind of direct attacks on Israel from Yemen, and that might extend to US shipping with acknowledgment that this increases risk from targeting issues,” Kennedy said. "If the regime in Tehran perceives a genuine existential risk, they will probably try to escalate across the region to create an intervention reassessment from the US,” he added.  S&amp;P Global is the parent company of the Journal of Commerce. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Ocean carriers are expected to report better-than-expected full-year 2025 results over the next few weeks due to higher profit margins through the third quarter and slowing fleet growth, according to maritime consultancy Drewry.  Although rates softened and volume slowed on the major east-west trade lanes through the fourth quarter, Drewry is also revising its prior loss-making forecast for 2026. The consultancy now expects the industry to turn a profit despite little clarity over the timing of a widespread return to Red Sea transits that would release 8% of global capacity back into an already oversupplied market.  Simon Heaney, senior manager for container research at Drewry, said the container shipping sector’s earnings before interest and taxes (EBIT) margins fell to 12.3% in the third quarter of 2025, well below the 34.5% margin recorded in third-quarter 2024 but still a significant rate-supported improvement on the 7.9% margin in the 2025 second quarter.  “This was an unexpected change of direction as we had anticipated that margins would shrink further in 3Q 2025,” Heaney told the Journal of Commerce Tuesday.   The “better-than-expected results” has prompted Drewry to upgrade the financial year 2025 profit forecast from $20 billion to $32 billion and raise the outlook for 2026 from a $10 billion loss to a $1 billion profit, he noted.  HSBC Global Investment Research highlighted the narrowing supply-demand gap in a market update that pointed to data showing container fleet growth slowing to 4% in 2026 from 7% in 2025, with demand growth this year slowing to 2.5% compared to 4% in 2025.  The report said, “... we think the gap is manageable before worsening in 2027 when [vessel] deliveries surge to all-time highs.”  “Demand is holding up despite US container imports declining in the past few months and the National Retail Federation expecting weakness until April, albeit milder than previous forecasts,” HSBC noted.   On the Asia-Europe trade, the latest data from Container Trades Statistics (CTS) shows a 15.5% year-over-year increase in volume in November, which HSBC said indicated  a pre-Lunar New Year peak season rush .  Still no clarity over return to Red Sea  A return of container shipping to the Red Sea hangs over the 2026 outlook, with the timing of such a return likely to have a material influence on carrier earnings. Analysts remain divided over when a widescale return will happen. Carriers have mostly avoided the Red Sea and Suez Canal since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza.  “We see no immediate resolution to the Red Sea disruptions, which alongside ongoing port congestion in Europe should keep capacity tight and prevent freight rates from capitulating,” HSBC said.  J.P. Morgan had a more positive view, noting that a 20% increase in Suez transits in December compared to the previous month has created growing interest around shipping’s return to the far-quicker route.  “We expect this to happen post-Lunar New Year on Feb. 17, and we see limited disruption risk of congestion in Europe materially impacting short-term rates should the timing coincide with the seasonal trough,” the investment bank noted.  Peter Sand, chief analyst for rate benchmarking platform Xeneta, said it was “highly unlikely” carriers would present extensive guidance on a Red Sea return in their 2026 outlooks. He expected carriers to maintain Cape of Good Hope transits around southern Africa while planning for a gradual shift to the Suez route.  Another Maersk vessel transits Suez  Following the successful transit of the Maersk Sebarok through the Suez and Red Sea in December, the carrier sent the Maersk Denver through the waterway this week; both vessels are part of the MECL service linking India to the US East Coast.  However, in a customer advisory Tuesday, Maersk was quick to reiterate its position that the safety of crew, vessels and cargo remained “of utmost importance,” noting the necessary safety measures were applied during the transit of the Maersk Denver.   “Customers with cargo on this vessel are being informed directly,” the carrier said. “Assuming that security thresholds continue to be met, we will continue our stepwise approach towards gradually resuming navigation along the east-west corridor via the Suez Canal and the Red Sea. There are no additional sailings to announce at this time.”   While the ceasefire between Israel and Hamas that was agreed to in October is holding, rapidly unfolding geopolitical events in the region are again raising red flags, according to Jack Kennedy, head of Middle East and North Africa country risk at S&P Global Market Intelligence.  “If Israel gets involved in [new] strikes on Iran, there is a higher likelihood that the Houthi will resume some kind of direct attacks on Israel from Yemen, and that might extend to US shipping with acknowledgment that this increases risk from targeting issues,” Kennedy said.  "If the regime in Tehran perceives a genuine existential risk, they will probably try to escalate across the region to create an intervention reassessment from the US,” he added.   S&P Global is the parent company of the Journal of Commerce.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

Asia-Europe

‘Unexpected’ margin boost in Q3 2025 to lift ocean carriers’ full-year results – Drewry 

<div class="phx-topic abstract-wrapper">Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage in the cold storage market.</div>

Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage in the cold storage market.

<div class="phx-topic">SeaCube Cold Solutions, a national investor in refrigerated equipment, has acquired Southern California-based Martin Container, a portable cold storage container company serving the West Coast. The move comes as SeaCube aims to create a better connected and responsive cold storage network for customers across the US. Financial terms were not disclosed. Launched in 2025, New Jersey-based SeaCube provides refrigeration solutions to grocery retailers; food distributors; logistics operators; and the agricultural, pharmaceutical, restaurant and festival industries. “This acquisition enhances both scale and regional strength,” James Armstrong, SeaCube’s senior vice president, said in a statement Friday. “Martin’s long-standing reputation and operational depth complement our growing national platform ...” Demand for portable cold storage continues to rise across the Southwest and Pacific Coast regions. Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage, according to the statement. Martin has a number of asset locations throughout California, Arizona and Nevada. “This partnership is an evolution of who we are. We’re building on our legacy by joining a company that shares our commitment to quality, innovation and customer service,” Martin Container CFO Charlie Martin said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

SeaCube Cold Solutions, a national investor in refrigerated equipment, has acquired Southern California-based Martin Container, a portable cold storage container company serving the West Coast. The move comes as SeaCube aims to create a better connected and responsive cold storage network for customers across the US. Financial terms were not disclosed. Launched in 2025, New Jersey-based SeaCube provides refrigeration solutions to grocery retailers; food distributors; logistics operators; and the agricultural, pharmaceutical, restaurant and festival industries. “This acquisition enhances both scale and regional strength,” James Armstrong, SeaCube’s senior vice president, said in a statement Friday. “Martin’s long-standing reputation and operational depth complement our growing national platform ...” Demand for portable cold storage continues to rise across the Southwest and Pacific Coast regions. Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage, according to the statement. Martin has a number of asset locations throughout California, Arizona and Nevada. “This partnership is an evolution of who we are. We’re building on our legacy by joining a company that shares our commitment to quality, innovation and customer service,” Martin Container CFO Charlie Martin said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Cool Cargo News

Supply chain

SeaCube acquires Martin Container in move to boost West Coast cold storage

<div class="phx-topic abstract-wrapper">Florida International Terminal specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, with Crowley and Mediterranean Shipping Co. its most frequent callers over the past 12 months. </div>

Florida International Terminal specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, with Crowley and Mediterranean Shipping Co. its most frequent callers over the past 12 months.

<div class="phx-topic">Hapag-Lloyd’s terminal arm will take full ownership of Florida International Terminal (FIT) at Port Everglades following an agreement with the terminal’s minority owner. The terminal is part of the portfolio Hapag-Lloyd acquired in the 2022 acquisition of terminal operator SAAM. Hanseatic Global Terminals said in a statement Friday it reached an agreement with an affiliate of Chile’s Grupo Empresas Navieras (GEN) regarding the capital structure of FIT that will make Hanseatic the sole owner of the terminal. GEN had a 30% stake in FIT, according to its 2024 annual report. Terms of the deal were not disclosed. Hanseatic, which was established in 2023 as an independent entity within Hapag-Lloyd to own and operate terminal assets, picked up its original FIT stake in <a href="https://www.joc.com/article/hapag-lloyd-makes-1-billion-latin-american-terminal-takeover-5194252">the $1 billion deal for SAAM</a>. Last year, FIT extended its concession at Port Everglades through 2035, with Hanseatic pledging to invest $25 million in capital spending for the facility, according to a February 2025 statement from Hanseatic. FIT specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, Hanseatic’s statement said. US-based carrier Crowley has been the most frequent container line to call FIT over the last 12 months, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, bringing in ships with an average capacity of about 1,000 TEUs. Mediterranean Shipping Co. is a close second, with 310 calls over the last 12 months, bringing in ships of 2,900-TEU capacity. In 2025, Port Everglades saw total containerized imports reach 346,074 TEUs, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global, a 5.5% drop from the year before. The Caribbean basin and Central and South America are its main cargo origins, accounting for 73% of the volume coming into Port Everglades. Hanseatic said in the statement it plans to grow its current terminal portfolio to cover approximately 30 ports by 2030, up from 21 currently. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Hapag-Lloyd’s terminal arm will take full ownership of Florida International Terminal (FIT) at Port Everglades following an agreement with the terminal’s minority owner. The terminal is part of the portfolio Hapag-Lloyd acquired in the 2022 acquisition of terminal operator SAAM. Hanseatic Global Terminals said in a statement Friday it reached an agreement with an affiliate of Chile’s Grupo Empresas Navieras (GEN) regarding the capital structure of FIT that will make Hanseatic the sole owner of the terminal. GEN had a 30% stake in FIT, according to its 2024 annual report. Terms of the deal were not disclosed. Hanseatic, which was established in 2023 as an independent entity within Hapag-Lloyd to own and operate terminal assets, picked up its original FIT stake in the $1 billion deal for SAAM . Last year, FIT extended its concession at Port Everglades through 2035, with Hanseatic pledging to invest $25 million in capital spending for the facility, according to a February 2025 statement from Hanseatic. FIT specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, Hanseatic’s statement said. US-based carrier Crowley has been the most frequent container line to call FIT over the last 12 months, according to Sea-web, a sister company of the Journal of Commerce within S&P Global, bringing in ships with an average capacity of about 1,000 TEUs. Mediterranean Shipping Co. is a close second, with 310 calls over the last 12 months, bringing in ships of 2,900-TEU capacity. In 2025, Port Everglades saw total containerized imports reach 346,074 TEUs, according to PIERS, a sister company of the Journal of Commerce within S&P Global, a 5.5% drop from the year before. The Caribbean basin and Central and South America are its main cargo origins, accounting for 73% of the volume coming into Port Everglades. Hanseatic said in the statement it plans to grow its current terminal portfolio to cover approximately 30 ports by 2030, up from 21 currently. Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Hapag-Lloyd’s terminal arm takes full control of Port Everglades terminal

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