<div class="phx-topic abstract-wrapper">CMA CGM has announced several rate increases that will take effect on April 1.</div>

CMA CGM has announced several rate increases that will take effect on April 1.

<div>CMA CGM <a>has announced</a> several rate increases that will take effect on April 1.The ocean carrier will increase rates on its trade from North Europe to Trinidad and Tobago, Suriname and Guyana by $200 per 20-foot dry container and $400 per 40-foot dry container.From North Europe to the Far East, CMA CGM will hike rates by $125 per 20-foot-equivalent unit.CMA CGM will also increase rates on its trade from India and Pakistan to North Europe, the Mediterranean Sea, the Baltic, the Black Sea, North Africa, South America, Central America, the Caribbean Islands, Houston and Canada. The hike will be $200...

CMA CGM has announced several rate increases that will take effect on April 1. The ocean carrier will increase rates on its trade from North Europe to Trinidad and Tobago, Suriname and Guyana by $200 per 20-foot dry container and $400 per 40-foot dry container. From North Europe to the Far East, CMA CGM will hike rates by $125 per 20-foot-equivalent unit. CMA CGM will also increase rates on its trade from India and Pakistan to North Europe, the Mediterranean Sea, the Baltic, the Black Sea, North Africa, South America, Central America, the Caribbean Islands, Houston and Canada. The hike will be $200 per 20-foot container and $400 per 40-foot container for dry cargo.

Container lines

CMA CGM Announces Rate Hikes for April 1

<div class="phx-topic abstract-wrapper">CEO Eli Glickman did not offer earnings guidance due to the pending merger with Hapag-Lloyd, but said the war-driven surge in oil prices will likely drag Zim’s results down further in the second quarter. </div>

CEO Eli Glickman did not offer earnings guidance due to the pending merger with Hapag-Lloyd, but said the war-driven surge in oil prices will likely drag Zim’s results down further in the second quarter.

Feature image

<div class="phx-topic">Zim Integrated Shipping Services on Wednesday reported a first-quarter loss and 30% decline in revenues, citing a “softer” freight environment that pulled rates and volumes lower. The ocean carrier said the two-month surge in global bunker fuel prices due to the war in the Middle East could make an even bigger impact on its Q2 results. Israel-based Zim recorded a diluted per-share loss of 71 cents for the quarter. That compares to an analyst consensus forecast of a $1.37 per share loss, according to Capital IQ Estimates, a sister product of the Journal of Commerce within S&amp;P Global. Total Q1 revenue of $1.3 billion was down 30% from a year earlier. Operational results worsened in the quarter. Zim said its average first-quarter freight rate of $1,310 per TEU was down 26%, while total volume of 866,000 TEUs was 8% lower. “Our first-quarter results were broadly in line with our expectations, reflecting a softer freight rate environment, coupled with weaker demand,” Zim Chief Executive Eli Glickman said in a statement. The carrier is not hosting a conference call due to its pending merger with Hapag-Lloyd. <h3>Q2 pessimism </h3>While Glickman did not offer earnings guidance due to the merger, he said the Mideast conflict, which has sparked a surge in global oil prices, will likely drag Zim’s results down further in the second quarter. But fuel surcharges and the carrier’s exposure to liquefied natural gas (LNG) should lessen the longer-term impact of higher bunker fuel prices, he said. “The conflict in the Persian Gulf has sparked a sharp increase and significant volatility in bunkering costs,” Glickman said. “We expect a more meaningful effect in the second quarter, before our actions to offset these costs begin to take hold.” Offsetting the bunker impact, Glickman said demand has improved recently, particularly with the <a href="https://www.joc.com/article/spot-rate-surge-may-signal-early-peak-season-on-trans-pacific-6224734">recent strength in spot ocean rates</a>. He said seasonal contract talks over April and May show shippers are “maintaining similar contracted volumes to last year.” “We have recently observed a positive change in the trend on the trans-Pacific trade with freight rates strengthening alongside demand,” Glickman said. “If this momentum continues, we expect it to support our financial performance, particularly in the second half of the year.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Zim Integrated Shipping Services on Wednesday reported a first-quarter loss and 30% decline in revenues, citing a “softer” freight environment that pulled rates and volumes lower. The ocean carrier said the two-month surge in global bunker fuel prices due to the war in the Middle East could make an even bigger impact on its Q2 results. Israel-based Zim recorded a diluted per-share loss of 71 cents for the quarter. That compares to an analyst consensus forecast of a $1.37 per share loss, according to Capital IQ Estimates, a sister product of the Journal of Commerce within S&P Global. Total Q1 revenue of $1.3 billion was down 30% from a year earlier. Operational results worsened in the quarter. Zim said its average first-quarter freight rate of $1,310 per TEU was down 26%, while total volume of 866,000 TEUs was 8% lower. “Our first-quarter results were broadly in line with our expectations, reflecting a softer freight rate environment, coupled with weaker demand,” Zim Chief Executive Eli Glickman said in a statement. The carrier is not hosting a conference call due to its pending merger with Hapag-Lloyd. Q2 pessimism While Glickman did not offer earnings guidance due to the merger, he said the Mideast conflict, which has sparked a surge in global oil prices, will likely drag Zim’s results down further in the second quarter. But fuel surcharges and the carrier’s exposure to liquefied natural gas (LNG) should lessen the longer-term impact of higher bunker fuel prices, he said. “The conflict in the Persian Gulf has sparked a sharp increase and significant volatility in bunkering costs,” Glickman said. “We expect a more meaningful effect in the second quarter, before our actions to offset these costs begin to take hold.” Offsetting the bunker impact, Glickman said demand has improved recently, particularly with the recent strength in spot ocean rates . He said seasonal contract talks over April and May show shippers are “maintaining similar contracted volumes to last year.” “We have recently observed a positive change in the trend on the trans-Pacific trade with freight rates strengthening alongside demand,” Glickman said. “If this momentum continues, we expect it to support our financial performance, particularly in the second half of the year.” Contact Michael Angell at michael.angell@spglobal.com .

Container Shipping News

Maritime

Zim reports Q1 loss, with bunker impact expected to worsen in Q2

<div class="phx-topic abstract-wrapper">The decision comes as wholesale diesel prices in Britain have increased 40% in the last month and logistics businesses are finding it difficult to manage ever-increasing cost pressures. </div>

The decision comes as wholesale diesel prices in Britain have increased 40% in the last month and logistics businesses are finding it difficult to manage ever-increasing cost pressures.

<div class="phx-topic">The UK logistics industry has been thrown a lifeline by a British government decision Wednesday to postpone a fuel duty increase as the Middle East war sends pump prices soaring while truckers struggle to keep operating costs under control. Prime Minister Keir Starmer and Chancellor Rachel Reeves announced the postponement during a parliamentary session following intense lobbying against the proposed increase by road hauliers and industry associations. A 5p ($0.68) per liter hike was planned for September, but the current level will be maintained until the end of the year. Ben Fletcher, CEO of industry group Logistics UK, said logistics businesses are finding it increasingly hard to reconcile ever-increasing cost pressures. “The cost of filling up a large HGV (heavy goods vehicle) has risen by 31% in the past three months, to around £1,000 ($1,344) a tank, and this cannot be absorbed by an industry operating on incredibly narrow margins,” Fletcher said in a statement Wednesday. “The action announced today will be a lifeline to the businesses that keep all parts of the economy stocked with everything that the nation relies on every day,” he added. “At such a tough time for trade, these decisions will be a welcome boost to our sector.” Scott Parsons, transport and logistics senior manager at business advisory and accountancy firm Menzies, said fuel and energy costs have been pushed to levels unseen before the Middle East war began in February, driving inflation through supply chains. ”Scrapping the planned rise in fuel duty provides much-needed relief for retailers, hauliers, and a hospitality industry currently on its knees,” Parsons said. “For businesses already at breaking point, it is a step in the right direction and could prove the difference between goods reaching shelves affordably and the shortages and hikes that hit hardest those with the least to spend,” he added. <h3>Trucking companies ‘on the brink’ </h3>Still, Richard Smith, managing director of the UK’s Road Haulage Association (RHA), warned that the relief measures would have limited impact because many trucking companies are already “on the brink.” “Our essential industry is a key economic enabler,” Smith said. “That is why we have been calling for the planned fuel duty rise to be scrapped, along with any link to future inflation rises. Such a rise would be a hammer blow for many firms.” The RHA said diesel makes up 30% of the operating cost of running an HGV, noting the wholesale cost of diesel has increased 40% in the last month. The suspension of the fuel duty increase was accompanied by a UK government decision to provide a 12-month holiday on the vehicle excise duty for heavy trucks, measures that Steve Parker, director-general of the British International Freight Association (BIFA), said showed the government was taking industry concerns seriously. “BIFA has consistently called for long-term certainty and a dedicated fuel duty stabilization mechanism rather than incremental, temporary postponements,” Parker said in a statement Wednesday. “The announcement of a 12-month holiday on vehicle excise duty for HGVs should also help the freight forwarding and logistics businesses that BIFA represents cope with the higher costs affecting the international supply chains that they manage,” he added. UK inflation fell from 3.3% to 2.8% in April, but analysts warn that the effects of rising energy costs have yet to be fully felt by consumers and that food price inflation could top 10% by the end of the year. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The UK logistics industry has been thrown a lifeline by a British government decision Wednesday to postpone a fuel duty increase as the Middle East war sends pump prices soaring while truckers struggle to keep operating costs under control. Prime Minister Keir Starmer and Chancellor Rachel Reeves announced the postponement during a parliamentary session following intense lobbying against the proposed increase by road hauliers and industry associations. A 5p ($0.68) per liter hike was planned for September, but the current level will be maintained until the end of the year. Ben Fletcher, CEO of industry group Logistics UK, said logistics businesses are finding it increasingly hard to reconcile ever-increasing cost pressures. “The cost of filling up a large HGV (heavy goods vehicle) has risen by 31% in the past three months, to around £1,000 ($1,344) a tank, and this cannot be absorbed by an industry operating on incredibly narrow margins,” Fletcher said in a statement Wednesday. “The action announced today will be a lifeline to the businesses that keep all parts of the economy stocked with everything that the nation relies on every day,” he added. “At such a tough time for trade, these decisions will be a welcome boost to our sector.” Scott Parsons, transport and logistics senior manager at business advisory and accountancy firm Menzies, said fuel and energy costs have been pushed to levels unseen before the Middle East war began in February, driving inflation through supply chains. ”Scrapping the planned rise in fuel duty provides much-needed relief for retailers, hauliers, and a hospitality industry currently on its knees,” Parsons said. “For businesses already at breaking point, it is a step in the right direction and could prove the difference between goods reaching shelves affordably and the shortages and hikes that hit hardest those with the least to spend,” he added. Trucking companies ‘on the brink’ Still, Richard Smith, managing director of the UK’s Road Haulage Association (RHA), warned that the relief measures would have limited impact because many trucking companies are already “on the brink.” “Our essential industry is a key economic enabler,” Smith said. “That is why we have been calling for the planned fuel duty rise to be scrapped, along with any link to future inflation rises. Such a rise would be a hammer blow for many firms.” The RHA said diesel makes up 30% of the operating cost of running an HGV, noting the wholesale cost of diesel has increased 40% in the last month. The suspension of the fuel duty increase was accompanied by a UK government decision to provide a 12-month holiday on the vehicle excise duty for heavy trucks, measures that Steve Parker, director-general of the British International Freight Association (BIFA), said showed the government was taking industry concerns seriously. “BIFA has consistently called for long-term certainty and a dedicated fuel duty stabilization mechanism rather than incremental, temporary postponements,” Parker said in a statement Wednesday. “The announcement of a 12-month holiday on vehicle excise duty for HGVs should also help the freight forwarding and logistics businesses that BIFA represents cope with the higher costs affecting the international supply chains that they manage,” he added. UK inflation fell from 3.3% to 2.8% in April, but analysts warn that the effects of rising energy costs have yet to be fully felt by consumers and that food price inflation could top 10% by the end of the year. Contact Greg Knowler at greg.knowler@spglobal.com .

Trucking News

Transport, Trade and Regulation News

Surface

UK government scraps proposed fuel duty increase in relief move for truckers

<div class="phx-topic abstract-wrapper">The underlying strength of that peak is unclear, however, with blank sailings, fuel-linked surcharges and a changeover in annual service contracts all putting upward pressure on spot and FAK rates.</div>

The underlying strength of that peak is unclear, however, with blank sailings, fuel-linked surcharges and a changeover in annual service contracts all putting upward pressure on spot and FAK rates.

<div class="phx-topic">An unexpected jump in container spot rates from Asia to the US and the launch of a seasonal service next month suggest that some semblance of an early peak season is hitting the trans-Pacific trade. The underlying strength of that peak is unclear, however, with blank sailings, fuel-linked surcharges and a changeover in annual service contracts all putting upward pressure on spot and freight-all-kind (FAK) rates. Still, some see momentum in the market, with Hapag-Lloyd CEO Rolf Habben Jansen telling investors last week that “demand at the moment is quite strong” on the trans-Pacific. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6224686_0.1.jpg"></img></div>“I’m fairly optimistic about the peak season,” he said on the carrier’s first-quarter earnings call May 13. The general rate increase sought by ocean carriers on May 15 clearly connected, with container rates hitting their highest point so far this year, according to various indexes. The cost to ship an FEU from North Asia to the US West Coast passed the $3,000 mark this week, as measured by the Shanghai Containerized Freight Index, although that was up just 1% from a year ago. US import volumes as forecast by the Global Port Tracker (GPT) are projected to be <a href="https://www.joc.com/article/weak-consumer-confidence-rising-inflation-dim-peak-season-hopes-6217405">up marginally this month</a> on a year-over-year basis, but the gains are illusory because imports crashed during the same period in 2025 following the widespread implementation of US tariffs. Maersk on June 8 plans to launch a seasonal trans-Pacific extra loader connecting Vietnam’s Cai Mep and Busan in South Korea to Long Beach, a modest sign of anticipated demand. Still, the outlook for July and August worsens, with GPT, produced by Hackett Associates on behalf of the National Retail Federation, predicting that import volumes will be down nearly 8% and 5% year over year, respectively. <h3>Carriers on guard after down Q1 </h3>Some of the increase in trans-Pacific spot rates is due to fuel-linked surcharges of hundreds of dollars per container and artificial capacity tightness created by the phasing in of new annual service contracts that generally began May 1. One forwarder estimates that 17% to 20% of capacity had been cut on services it utilizes from Asia to the US West Coast between mid-April and early May. “It seems to be a little bit of surge [of cargo] there that may have been trying to get in before new elevated contract levels [take effect],” the forwarder said. Container lines are blanking less and deploying incrementally more tonnage as peak season nears, according to eeSea data. But blank sailings can still have an impact as demand ratchets up. “Current demand is very strong and the industry is preparing for sustained volume pressure rather than a short-lived spike,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. “Multiple carrier actions indicate expectations for continued strong booking levels through early summer.” Kavas estimates that the coming weeks will be busy on the eastbound trans-Pacific as carriers take a more disciplined approach to capacity, having booked record profits during the pandemic thanks to tightening of available capacity. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="44b7e856-235d-4131-961a-7ab7cc4f2707"></dynamic-object></div>Facing elevated operating costs due to war-driven fuel prices and after an unspectacular service contracting cycle, ocean carriers have hair-trigger tolerance for non-compensatory services. <a href="https://www.joc.com/article/maersk-passing-500-million-monthly-fuel-bill-to-customers-in-full-ceo-6216319">Maersk</a> and <a href="https://www.joc.com/article/softer-freight-rates-push-evergreen-to-71-decline-in-q1-net-profit-6220526">Evergreen</a> earlier this month reported declining profits in the first quarter, while <a href="https://www.joc.com/article/hapag-lloyd-posts-q1-net-loss-in-unsatisfactory-start-to-2026-6219964">Hapag-Lloyd</a> recorded an “unsatisfactory” loss in the same period. Habben Jansen said service contract rates, excluding the higher fuel costs, “were a bit down compared to previous year.” Annual contracts for midsize importers for the 2026–27 service period ended approximately comparable to slightly less than last year, according to multiple sources. The threat of rising operating costs and weak demand is front and center for ocean carriers. So-called insufficient capacity management “will lead to an erosion of the recovery of costs on the short-term market, which could, depending on how much it will erode, quickly get you into a not-so-pleasant place in the second half of the year,” Maersk CEO Vincent Clerc told investors May 7. The sharply higher bunker fuel costs since the war began have changed carriers’ risk profile and profitability outlook, according to Jason Cook, CEO of the forwarder Ardent Global Logistics. “They’ll be quicker to pull the capacity to fend off losses,” Cook said. Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

An unexpected jump in container spot rates from Asia to the US and the launch of a seasonal service next month suggest that some semblance of an early peak season is hitting the trans-Pacific trade. The underlying strength of that peak is unclear, however, with blank sailings, fuel-linked surcharges and a changeover in annual service contracts all putting upward pressure on spot and freight-all-kind (FAK) rates. Still, some see momentum in the market, with Hapag-Lloyd CEO Rolf Habben Jansen telling investors last week that “demand at the moment is quite strong” on the trans-Pacific. “I’m fairly optimistic about the peak season,” he said on the carrier’s first-quarter earnings call May 13. The general rate increase sought by ocean carriers on May 15 clearly connected, with container rates hitting their highest point so far this year, according to various indexes. The cost to ship an FEU from North Asia to the US West Coast passed the $3,000 mark this week, as measured by the Shanghai Containerized Freight Index, although that was up just 1% from a year ago. US import volumes as forecast by the Global Port Tracker (GPT) are projected to be up marginally this month on a year-over-year basis, but the gains are illusory because imports crashed during the same period in 2025 following the widespread implementation of US tariffs. Maersk on June 8 plans to launch a seasonal trans-Pacific extra loader connecting Vietnam’s Cai Mep and Busan in South Korea to Long Beach, a modest sign of anticipated demand. Still, the outlook for July and August worsens, with GPT, produced by Hackett Associates on behalf of the National Retail Federation, predicting that import volumes will be down nearly 8% and 5% year over year, respectively. Carriers on guard after down Q1 Some of the increase in trans-Pacific spot rates is due to fuel-linked surcharges of hundreds of dollars per container and artificial capacity tightness created by the phasing in of new annual service contracts that generally began May 1. One forwarder estimates that 17% to 20% of capacity had been cut on services it utilizes from Asia to the US West Coast between mid-April and early May. “It seems to be a little bit of surge [of cargo] there that may have been trying to get in before new elevated contract levels [take effect],” the forwarder said. Container lines are blanking less and deploying incrementally more tonnage as peak season nears, according to eeSea data. But blank sailings can still have an impact as demand ratchets up. “Current demand is very strong and the industry is preparing for sustained volume pressure rather than a short-lived spike,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. “Multiple carrier actions indicate expectations for continued strong booking levels through early summer.” Kavas estimates that the coming weeks will be busy on the eastbound trans-Pacific as carriers take a more disciplined approach to capacity, having booked record profits during the pandemic thanks to tightening of available capacity. Facing elevated operating costs due to war-driven fuel prices and after an unspectacular service contracting cycle, ocean carriers have hair-trigger tolerance for non-compensatory services. Maersk and Evergreen earlier this month reported declining profits in the first quarter, while Hapag-Lloyd recorded an “unsatisfactory” loss in the same period. Habben Jansen said service contract rates, excluding the higher fuel costs, “were a bit down compared to previous year.” Annual contracts for midsize importers for the 2026–27 service period ended approximately comparable to slightly less than last year, according to multiple sources. The threat of rising operating costs and weak demand is front and center for ocean carriers. So-called insufficient capacity management “will lead to an erosion of the recovery of costs on the short-term market, which could, depending on how much it will erode, quickly get you into a not-so-pleasant place in the second half of the year,” Maersk CEO Vincent Clerc told investors May 7. The sharply higher bunker fuel costs since the war began have changed carriers’ risk profile and profitability outlook, according to Jason Cook, CEO of the forwarder Ardent Global Logistics. “They’ll be quicker to pull the capacity to fend off losses,” Cook said. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Trans-Pacific

Spot rate surge may signal early peak season on trans-Pacific

<div class="phx-topic abstract-wrapper">Collaboration with global forwarders is allowing the carrier and its customers to significantly reduce carbon footprints in the difficult-to-monitor area of Scope 3 emissions.</div>

Collaboration with global forwarders is allowing the carrier and its customers to significantly reduce carbon footprints in the difficult-to-monitor area of Scope 3 emissions.

<div class="phx-topic">Hapag-Lloyd has been rapidly scaling up the use of second-generation biofuel across its fleet, adding three global forwarders to its book-and-claim emissions-cutting product this year. Kuehne + Nagel, DSV, and Scan Global Logistics have signed up for the carrier’s Scope 3 emissions-reducing Ship Green biofuel service, joining DHL Global Forwarding, which inked a three-year framework agreement last year with Hapag-Lloyd. “Over 1,500 customers have reduced CO2e emissions with us since the introduction of biofuels in the Hapag-Lloyd fleet,” a spokesperson for the carrier told the Journal of Commerce. “The product now serves more than 750 customers globally, with verified emission reductions allocated via a book-and-claim chain of custody, generated through second-generation biofuel use across our fleet,” they added. At a time when the shipping industry is <a href="https://www.joc.com/article/shipping-decarbonization-will-work-best-with-global-rules-msc-ceo-6221271">struggling to push forward global regulations</a> to accelerate investment in alternative fuel technology and scale up infrastructure and production, solutions such as sustainably sourced biofuel that can be easily implemented are playing a crucial role. Hapag-Lloyd has reported rapidly rising demand. It transported 380,000 TEUs last year under its Ship Green biofuel service, up 90% year over year and 2.8% of the total 13.5 million TEUs the carrier handled in 2025. In 2024, 200,000 TEUs were transported under Ship Green, 1.6% of its annual volume. The collaboration with global forwarders is allowing Hapag-Lloyd, its customers and their customers to significantly reduce carbon footprints in the difficult-to-monitor Scope 3 emissions area. Scope 3 emissions are indirect emissions produced within a company’s supply chain. “Our customers are asking for real emission reductions, not promises for 2030 or 2050, but solutions they can use straight away,” Martin Andersen, global head of sustainability and ESG at Scan Global Logistics, said in a statement Wednesday. “By working with Hapag-Lloyd and investing in biofuel, we can reduce emissions from ocean freight right now, without changing how our customers operate.” <h3>Reducing carbon footprints </h3>Scan Global and Hapag-Lloyd will avoid more than 8,500 tons of CO2e emissions on global shipments on a well-to-wake basis, offering a practical and scalable way to reduce emissions without requiring changes to existing logistics operations. Earlier this month, Kuehne + Nagel signed an agreement with Hapag-Lloyd to use the Ship Green product to reduce the carbon footprint of its ocean freight shipments. From April to December, about 3,300 TEUs on the East Asia-to-North Europe trade lane will be covered under the agreement that is expected to avoid about 2,979 tons of CO2 emissions. “Decarbonizing shipping requires transparency, collaboration and commercially viable solutions,” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, said. “By having strong partnerships, making emissions data transparent, and enabling Scope 3 reductions, we help customers navigate in a credible, market-based way, designed to accelerate the uptake of alternative fuels.” DSV in February <a href="https://www.joc.com/article/hapag-lloyd-inks-new-sustainable-biofuel-deal-with-dsv-6175204">signed a two-year Ship Green framework agreement</a> with Hapag-Lloyd that follows an earlier sustainable fuel collaboration in 2022. Under the new agreement, DSV has contracted a total of 18,000 tons of CO2e emission reductions on a well-to-wake basis. CMA CGM <a href="https://www.joc.com/article/dhl-cma-cgm-unveil-emissions-cutting-biofuel-collaboration-6139423">last year signed a deal with DHL</a> for the joint use of 8,990 metric tons of recycled waste cooking oil that was expected to cut 25,000 metric tons of CO2e emissions. The application of the book-and-claim chain of custody mechanism enables customers to claim Scope 3 emission reductions for their transport separately from the physical use of the fuel. It is driving early action in the shipping industry, particularly given that the supply of sustainable marine fuels is currently limited globally and of higher cost. But as demand for the biofuel products increases, so, too, has criticism from environmental campaigners that have expressed concern over the absence of regulatory safeguards and careful management of the full value chain impacts. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd has been rapidly scaling up the use of second-generation biofuel across its fleet, adding three global forwarders to its book-and-claim emissions-cutting product this year. Kuehne + Nagel, DSV, and Scan Global Logistics have signed up for the carrier’s Scope 3 emissions-reducing Ship Green biofuel service, joining DHL Global Forwarding, which inked a three-year framework agreement last year with Hapag-Lloyd. “Over 1,500 customers have reduced CO2e emissions with us since the introduction of biofuels in the Hapag-Lloyd fleet,” a spokesperson for the carrier told the Journal of Commerce. “The product now serves more than 750 customers globally, with verified emission reductions allocated via a book-and-claim chain of custody, generated through second-generation biofuel use across our fleet,” they added. At a time when the shipping industry is struggling to push forward global regulations to accelerate investment in alternative fuel technology and scale up infrastructure and production, solutions such as sustainably sourced biofuel that can be easily implemented are playing a crucial role. Hapag-Lloyd has reported rapidly rising demand. It transported 380,000 TEUs last year under its Ship Green biofuel service, up 90% year over year and 2.8% of the total 13.5 million TEUs the carrier handled in 2025. In 2024, 200,000 TEUs were transported under Ship Green, 1.6% of its annual volume. The collaboration with global forwarders is allowing Hapag-Lloyd, its customers and their customers to significantly reduce carbon footprints in the difficult-to-monitor Scope 3 emissions area. Scope 3 emissions are indirect emissions produced within a company’s supply chain. “Our customers are asking for real emission reductions, not promises for 2030 or 2050, but solutions they can use straight away,” Martin Andersen, global head of sustainability and ESG at Scan Global Logistics, said in a statement Wednesday. “By working with Hapag-Lloyd and investing in biofuel, we can reduce emissions from ocean freight right now, without changing how our customers operate.” Reducing carbon footprints Scan Global and Hapag-Lloyd will avoid more than 8,500 tons of CO2e emissions on global shipments on a well-to-wake basis, offering a practical and scalable way to reduce emissions without requiring changes to existing logistics operations. Earlier this month, Kuehne + Nagel signed an agreement with Hapag-Lloyd to use the Ship Green product to reduce the carbon footprint of its ocean freight shipments. From April to December, about 3,300 TEUs on the East Asia-to-North Europe trade lane will be covered under the agreement that is expected to avoid about 2,979 tons of CO2 emissions. “Decarbonizing shipping requires transparency, collaboration and commercially viable solutions,” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, said. “By having strong partnerships, making emissions data transparent, and enabling Scope 3 reductions, we help customers navigate in a credible, market-based way, designed to accelerate the uptake of alternative fuels.” DSV in February signed a two-year Ship Green framework agreement with Hapag-Lloyd that follows an earlier sustainable fuel collaboration in 2022. Under the new agreement, DSV has contracted a total of 18,000 tons of CO2e emission reductions on a well-to-wake basis. CMA CGM last year signed a deal with DHL for the joint use of 8,990 metric tons of recycled waste cooking oil that was expected to cut 25,000 metric tons of CO2e emissions. The application of the book-and-claim chain of custody mechanism enables customers to claim Scope 3 emission reductions for their transport separately from the physical use of the fuel. It is driving early action in the shipping industry, particularly given that the supply of sustainable marine fuels is currently limited globally and of higher cost. But as demand for the biofuel products increases, so, too, has criticism from environmental campaigners that have expressed concern over the absence of regulatory safeguards and careful management of the full value chain impacts. Contact Greg Knowler at greg.knowler@spglobal.com .

Hapag-Lloyd scales up biofuel transport services with forwarder partners

<div class="phx-topic abstract-wrapper">Port and terminal operators are looking to spend $6.7 billion over the next five years to install cranes and other equipment, an industry survey shows, as Washington is asked to help reshore manufacturing.</div>

Port and terminal operators are looking to spend $6.7 billion over the next five years to install cranes and other equipment, an industry survey shows, as Washington is asked to help reshore manufacturing.

<div class="phx-topic">US ports face an almost $7 billion price tag for ship-to-shore cranes and other container-handling equipment over the next five years, according to the National Association of Waterfront Employers (NAWE). But the spending is hamstrung amid an unclear tariff on Chinese cranes and halting efforts to reshore crane manufacturing to the US. In a survey of 25 port and terminal executives published Tuesday, NAWE said US ports and marine terminals will need more than 100 ship-to-shore (STS) cranes through 2031 to replace aging assets or provide new crane capacity. In total, NAWE expects US ports to need $6.7 billion in equipment over the next five years. “These findings underscore the scale and urgency of the investment challenge facing US ports,” NAWE President Carl Bentzel said in a statement accompanying the survey. “Modern cargo-handling equipment is essential to ensuring terminal productivity, supply chain resilience, and the ability of US ports to compete with international gateways.” New and replacement cranes, along with other cargo-handling equipment, account for $5.1 billion of NAWE’s estimate. In addition, US ports are looking to spend $917 million on rail-mounted stacking cranes and another $790 million for repairing existing STS cranes and equipment. Along with the equipment bill, Bentzel told the Journal of Commerce that equipment is just the “tip of the iceberg” as US ports need to spend many billions more to improve underlying infrastructure including road, rail and maritime access. NAWE released the survey as Congress takes up other infrastructure-related legislation, including the five-year surface transportation reauthorization, which provides federal support for roads and bridges. Bentzel said NAWE is looking to get the attention of both Congress and the White House about how they can help expedite and support those equipment purchases. NAWE members face uncertainty from Washington’s dual mandates of <a href="https://www.joc.com/article/ports-look-to-delay-proposed-us-tariffs-on-chinese-made-cranes-6007628">penalizing China’s maritime industry</a> and <a href="https://www.joc.com/article/congress-eyes-a-tax-credit-for-reshoring-port-crane-manufacturing-6053124">how to reshore critical industries such as crane manufacturing</a>. US ports faced an array of Trump’s tariffs that added <a href="https://www.joc.com/article/ports-america-to-pay-30-tariff-on-china-made-ship-to-shore-crane-6080582">30% to the cost of Chinese-made cranes</a>. In addition, the United States Trade Representative (USTR) levied a 25% penalty on Chinese-made ship-to-shore cranes under a 2024 investigation begun during the Biden administration. Under the Trump administration, the USTR intended to stack another 100% penalty on Chinese STS cranes as of last November. The Supreme Court has knocked down almost all of Trump’s reciprocal tariffs against China, <a href="https://www.joc.com/article/us-china-suspend-reciprocal-port-fees-as-part-of-wider-trade-deal-6105849">while the USTR put a one-year pause on its 100% penalty</a>. Even so, Bentzel said it is unclear what the current tariff regime is for Chinese-made cranes, or if the Trump administration is even enforcing the Biden-era tariffs on cranes. NAWE called on the USTR to clarify the current state of penalties and tariffs on Chinese cranes. “The challenge is we don’t know what is happening with the United States Trade Representative,” Bentzel said. “There’s going to be a short-term need to continue using Chinese manufacturers. But no one in the industry can arrange for the construction and delivery of cranes with a one-year suspension.” An executive for a North American terminal operator who took part in the survey told the Journal of Commerce his  STS crane purchases are running about $25 million currently, compared to roughly $15 million a year ago. Global prices have risen due to the tariff and the switch to  crane makers, enabling the manufacturers to raise prices due to new demand and limited capacity, he said.  “Our main reason for reaching out to the USTR is because we want to make sure that we have certainty about the exact import duties at the time when we place an equipment order,” the terminal executive said. “Nobody can afford to order equipment and then suddenly get a 10% cost increase from new import duties after this equipment order has been contracted.” <h3>Crane makers eye US yards </h3>In the long-term, Bentzel said critical industries such as crane and yard equipment need to be reshored so US ports will not be reliant on Chinese manufacturers. He said the White House and Congress need to begin the process now for reshoring crane manufacturing as it will take two years or more for a domestic manufacturer to start making cranes. NAWE recently added new members including European crane manufacturers Liebherr and Konecranes, along with Japan’s Paceco-Mitsui, as part of its outreach to reshore crane manufacturing, Bentzel said. Germany’s Kunz and Phoenix-based Stafford Port Cranes are also looking to join NAWE, he added. Sources have told the Journal of Commerce that Liebherr has inquired about laydown yard space at the Port of Houston, along with other Gulf and Southeast ports, for assembling and distributing cranes.  has sought similar space at the Port of Seattle, according to sources.  Liebherr and  could not be reached for comment.  Bentzel said the companies are only making soft inquiries now as they await clarity about long-term US trade policy on STS cranes. <a href="https://www.joc.com/article/white-house-counters-risk-of-chinese-port-cranes-with-20-billion-for-us-sourcing-5200230">The Biden administration made $20 billion in infrastructure funding available</a> for STS crane makers to set up US operations. At the time, Paceco said it would invest in a new US facility, but it never went forward due to market uncertainty, Bentzel said. “NAWE’s members are supporting the onshoring of port cranes,” he said. “Those companies are doing a lot of assessing and waiting because the penalties on Chinese-made cranes aren’t clear.” With the Trump administration <a href="https://www.joc.com/article/trump-signs-order-for-us-shipbuilding-but-stays-mute-on-port-fees-5980539">looking to revive</a> <a href="https://www.joc.com/article/trump-administration-unveils-us-maritime-revitalization-action-plan-6169752">the US maritime industry</a>, Bentzel said now is the time to support US-made cranes. NAWE’s capital spending survey also sets the table for these companies on their addressable US market, he added. NAWE plans to lobby Congress to have funding made available to domestic crane manufacturers under the Defense Production Act, which supports industries critical to national security, or the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America (SHIPS) Act, Congress’ broad bill to incentivize the reshoring of ship building and crane-making. “Our argument is that if we don’t have this equipment and don’t create this domestic market, this will impact the nation’s fortunes in the long-term,” Bentzel said. “We believe without some level of assistance and direction, it will take us two years to get any domestic production going.” One potential incentive that has been floated is the 2021 Build America, Buy America (BABA) Act, which requires infrastructure to be built with a minimum of 55% US-sourced steel to receive federal funding. However, the terminal executive said not enough of the actual crane parts can be made in the US at this point to qualify. “Crane assembly in the US  not enough to be BABA compliant,” he said. “This will require on top of the assembly to also get some of the components sourced from the US." Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

US ports face an almost $7 billion price tag for ship-to-shore cranes and other container-handling equipment over the next five years, according to the National Association of Waterfront Employers (NAWE). But the spending is hamstrung amid an unclear tariff on Chinese cranes and halting efforts to reshore crane manufacturing to the US. In a survey of 25 port and terminal executives published Tuesday, NAWE said US ports and marine terminals will need more than 100 ship-to-shore (STS) cranes through 2031 to replace aging assets or provide new crane capacity. In total, NAWE expects US ports to need $6.7 billion in equipment over the next five years. “These findings underscore the scale and urgency of the investment challenge facing US ports,” NAWE President Carl Bentzel said in a statement accompanying the survey. “Modern cargo-handling equipment is essential to ensuring terminal productivity, supply chain resilience, and the ability of US ports to compete with international gateways.” New and replacement cranes, along with other cargo-handling equipment, account for $5.1 billion of NAWE’s estimate. In addition, US ports are looking to spend $917 million on rail-mounted stacking cranes and another $790 million for repairing existing STS cranes and equipment. Along with the equipment bill, Bentzel told the Journal of Commerce that equipment is just the “tip of the iceberg” as US ports need to spend many billions more to improve underlying infrastructure including road, rail and maritime access. NAWE released the survey as Congress takes up other infrastructure-related legislation, including the five-year surface transportation reauthorization, which provides federal support for roads and bridges. Bentzel said NAWE is looking to get the attention of both Congress and the White House about how they can help expedite and support those equipment purchases. NAWE members face uncertainty from Washington’s dual mandates of penalizing China’s maritime industry and how to reshore critical industries such as crane manufacturing . US ports faced an array of Trump’s tariffs that added 30% to the cost of Chinese-made cranes . In addition, the United States Trade Representative (USTR) levied a 25% penalty on Chinese-made ship-to-shore cranes under a 2024 investigation begun during the Biden administration. Under the Trump administration, the USTR intended to stack another 100% penalty on Chinese STS cranes as of last November. The Supreme Court has knocked down almost all of Trump’s reciprocal tariffs against China, while the USTR put a one-year pause on its 100% penalty . Even so, Bentzel said it is unclear what the current tariff regime is for Chinese-made cranes, or if the Trump administration is even enforcing the Biden-era tariffs on cranes. NAWE called on the USTR to clarify the current state of penalties and tariffs on Chinese cranes. “The challenge is we don’t know what is happening with the United States Trade Representative,” Bentzel said. “There’s going to be a short-term need to continue using Chinese manufacturers. But no one in the industry can arrange for the construction and delivery of cranes with a one-year suspension.” An executive for a North American terminal operator who took part in the survey told the Journal of Commerce his  STS crane purchases are running about $25 million currently, compared to roughly $15 million a year ago. Global prices have risen due to the tariff and the switch to  crane makers, enabling the manufacturers to raise prices due to new demand and limited capacity, he said.   “Our main reason for reaching out to the USTR is because we want to make sure that we have certainty about the exact import duties at the time when we place an equipment order,” the terminal executive said. “Nobody can afford to order equipment and then suddenly get a 10% cost increase from new import duties after this equipment order has been contracted.”  Crane makers eye US yards In the long-term, Bentzel said critical industries such as crane and yard equipment need to be reshored so US ports will not be reliant on Chinese manufacturers. He said the White House and Congress need to begin the process now for reshoring crane manufacturing as it will take two years or more for a domestic manufacturer to start making cranes. NAWE recently added new members including European crane manufacturers Liebherr and Konecranes, along with Japan’s Paceco-Mitsui, as part of its outreach to reshore crane manufacturing, Bentzel said. Germany’s Kunz and Phoenix-based Stafford Port Cranes are also looking to join NAWE, he added. Sources have told the Journal of Commerce that Liebherr has inquired about laydown yard space at the Port of Houston, along with other Gulf and Southeast ports, for assembling and distributing cranes.  has sought similar space at the Port of Seattle, according to sources.   Liebherr and  could not be reached for comment.   Bentzel said the companies are only making soft inquiries now as they await clarity about long-term US trade policy on STS cranes. The Biden administration made $20 billion in infrastructure funding available for STS crane makers to set up US operations. At the time, Paceco said it would invest in a new US facility, but it never went forward due to market uncertainty, Bentzel said. “NAWE’s members are supporting the onshoring of port cranes,” he said. “Those companies are doing a lot of assessing and waiting because the penalties on Chinese-made cranes aren’t clear.” With the Trump administration looking to revive the US maritime industry , Bentzel said now is the time to support US-made cranes. NAWE’s capital spending survey also sets the table for these companies on their addressable US market, he added. NAWE plans to lobby Congress to have funding made available to domestic crane manufacturers under the Defense Production Act, which supports industries critical to national security, or the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America (SHIPS) Act, Congress’ broad bill to incentivize the reshoring of ship building and crane-making. “Our argument is that if we don’t have this equipment and don’t create this domestic market, this will impact the nation’s fortunes in the long-term,” Bentzel said. “We believe without some level of assistance and direction, it will take us two years to get any domestic production going.” One potential incentive that has been floated is the 2021 Build America, Buy America (BABA) Act, which requires infrastructure to be built with a minimum of 55% US-sourced steel to receive federal funding. However, the terminal executive said not enough of the actual crane parts can be made in the US at this point to qualify.  “Crane assembly in the US  not enough to be BABA compliant,” he said. “This will require on top of the assembly to also get some of the components sourced from the US."  Contact Michael Angell at michael.angell@spglobal.com .

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