<div class="phx-topic abstract-wrapper">For decades, the US Postal Service has been the only parcel carrier with rates for parcels weighing in ounces, partly a result of it having a monopoly on delivering those lightweight and small-size parcels to mailboxes.</div>

For decades, the US Postal Service has been the only parcel carrier with rates for parcels weighing in ounces, partly a result of it having a monopoly on delivering those lightweight and small-size parcels to mailboxes.

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<div>The US Postal Service (USPS) recently announced changes to its parcel services whereby the first-class package service will merge with its Parcel Select Ground and branded as a new service called “Ground Advantage,” allowing it to handle parcels weighing 1 ounce to 70 pounds. While this proposed change is intended to make the Postal Service more competitive, it will still have numerous shortcomings to be a full-scale competitor to FedEx and UPS. For example, it does not own a private fleet of aircraft for express service and cannot extend credit to shippers. For decades, the Postal Service has been the...

The US Postal Service (USPS) recently announced changes to its parcel services whereby the first-class package service will merge with its Parcel Select Ground and branded as a new service called “Ground Advantage,” allowing it to handle parcels weighing 1 ounce to 70 pounds. While this proposed change is intended to make the Postal Service more competitive, it will still have numerous shortcomings to be a full-scale competitor to FedEx and UPS. For example, it does not own a private fleet of aircraft for express service and cannot extend credit to shippers. For decades, the Postal Service has been the only parcel carrier with rates for parcels weighing in ounces, and that is partly a result of it having a monopoly on delivering those lightweight and small-size parcels to mailboxes. And, if the Postal Service had to deliver lightweight parcels (under 1 pound) to all front doors, it would be at a much higher cost and put it at an even greater cost disadvantage to FedEx, UPS and many other private parcel carriers. This recent move by the Postal Service should alarm lawmakers on Capitol Hill who have questions about its financial viability even after being granted relief from prefunding of pensions. Congress should amend legislation passed in 2006 that segmented the Postal Service into market dominant products and competitive products and gave power to the Postal Regulatory Commission to limit USPS from using its network of market dominant products to subsidize the cost of competitive parcel services. So, for the Postal Service’s parcel services to be a truly competitive product, it should either be limited to handling parcels that fit in mailboxes, or private carriers should be granted access to the mailboxes for delivery of their lightweight parcels. Postal Service letter carriers and parcel delivery drivers should have to get out of the van at each address and place packages outside the doors of suburban homes, apartments, and rural homes similar to what Amazon, FedEx and UPS drivers have to do. Because the Postal Service has to deliver mail to mailboxes six days a week, it is best suited from a cost perspective to deliver lightweight parcels to mailboxes. And, if the Postal Service is prohibited from handling large parcels, its cost for first-class parcels will be barely more than that for a large envelope which will benefit the online retailers and the millions of consumers who would not have those parcels damaged or stolen. Benefits to limiting USPS to small parcels Limiting the Postal Service to only parcels that fit inside a mailbox has numerous benefits, even for the Postal Service. According to ShipMatrix data on billions of parcels, the huge growth in online retail sales has resulted in about 65% of all parcels now being delivered to residences. And of those business-to-consumer (B2C) parcels, over 65% are of lighter weight and smaller size which would fit in mailboxes. The result is that it would allow the Postal Service to own this segment of the parcel market and generate billions of dollars in revenue, and at a lower cost to produce a higher-contribution margin. In addition, all postal unions would be happy with such a move because their members would not have to experience injuries from handling bulky and heavy parcels, which would also reduce the Postal Service’s expense for injury-related workers compensation. No other private industry in the US faces competition from a government-controlled entity. While there may have been reasons in the past for the Postal Service to deliver parcels weighing up to 70 pounds, those reasons are no longer valid. If Congress is not ready to privatize the nation’s postal service, as has been done in European countries, it must level the playing field for all parcel industry competitors by either limiting the Postal Service to handle only parcels that fit in mailboxes or allowing competitors such as Amazon, FedEx, UPS and others to deliver parcels to mailboxes. Contact Satish Jindel at info@shipmatrix.com .

Supply chain

Congress should allow FedEx, UPS to deliver small parcels to mailboxes

<div class="phx-topic abstract-wrapper">With liquefied natural gas flows at a standstill in the Strait of Hormuz, a near-doubling of LNG export capacity in the US is set to drive breakbulk and project cargo activity into the next decade.</div>

With liquefied natural gas flows at a standstill in the Strait of Hormuz, a near-doubling of LNG export capacity in the US is set to drive breakbulk and project cargo activity into the next decade.

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<div class="phx-topic">As historic shipping disruptions in the Middle East squeeze global oil and natural gas supplies, a slew of projects is setting up the US to expand its role as the world’s top liquefied natural gas exporter while continuing to generate breakbulk and project cargo activity. Roughly one-fifth of global liquefied natural gas (LNG) flows through the Strait of Hormuz, which remains shut and where multiple cargo ships came under attack this week. Meanwhile, in the US — which is already the world’s largest LNG exporter — LNG export capacity is expected to nearly double in the next five years, while overall natural gas production is on pace to reach record highs, according to recent analyses by the US Energy Information Administration (EIA). Michael Mørland, Atlantic project cargo director for Norwegian multipurpose vessel (MPV) operator G2 Ocean, told the Journal of Commerce that LNG capacity expansion in the US has generated significant breakbulk and project flows over the past 10 years. “We expect this development to continue into the next decade, regardless of short-term geopolitical disruptions,” he said Mørland added that larger LNG production units, further expansions, and more efficient technologies are in the works to meet the growing energy demand from AI data centers and ongoing shifts in the US power mix. But because LNG mega-projects are capital-intensive with extended lead time, the interruptions in the Middle East are unlikely to influence final investment decisions (FIDs) for new US projects, he said. “Since the typical sourcing locations for cargo are not based in the Middle East and remain unaffected, we do not currently expect significant changes in cargo volumes or movement patterns outside the region,” Mørland said, explaining that it would take at least six to 18 months for those changes to show up because of the extended timeframe needed for project cargo manufacturing and contracting. <h3>US set to almost double LNG export capacity </h3>The US has eight operating LNG export terminals, and export capacity is expected to nearly double by 2031, according to a Feb. 24 analysis by the EIA. In 2025, US developers signed sale and purchase agreements (SPA) for 5.2 billion cubic feet per day (Bcf/d) of LNG from planned export facilities — the highest volume of SPAs since 2022, according to a March 3 EIA report. SPAs are necessary to secure a final investment decision for LNG terminal construction. Developers reached FIDs on four US LNG projects in 2025: the first phase of the Woodside Louisiana LNG and CP2 projects, and the second phase of the Rio Grande and Port Arthur projects. The four projects will begin operations between 2029 and 2031 and will bring a combined 7.2 Bcf/d in LNG export capacity under construction. That comes as overall natural gas production in the US is set to reach record highs in 2026 and 2027, according to the EIA. Production is set to increase by 2% to an average of 120.8 Bcf/d in 2026 and then grow to 122.3 Bcf/d in 2027. In 2026, US developers plan to add 6.3 gigawatts (GW) of natural gas-fired capacity, over 80% of which is planned for locations across Texas, Oklahoma, Ohio, Tennessee and Florida. Edwin Peh, project cargo director for Pacific and global capital projects for G2 Ocean, told the Journal of Commerce that the MPV operator anticipates higher demand for breakbulk and project cargo transportation to support the natural gas-fired capacity additions. “G2 Ocean is receiving inquiries for such shipments and has already shipped turbines and generators for gas-fired power plant projects,” he said. Peh said it’s still too early to detect any shifts in project cargo movement resulting from shipping disruptions in the Middle East. “The market is closely monitoring the evolving situation, including fluctuating bunker prices, while shippers evaluate whether they need additional time and cost buffers for higher insurance premiums and potentially longer transit times,” he said. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

As historic shipping disruptions in the Middle East squeeze global oil and natural gas supplies, a slew of projects is setting up the US to expand its role as the world’s top liquefied natural gas exporter while continuing to generate breakbulk and project cargo activity. Roughly one-fifth of global liquefied natural gas (LNG) flows through the Strait of Hormuz, which remains shut and where multiple cargo ships came under attack this week. Meanwhile, in the US — which is already the world’s largest LNG exporter — LNG export capacity is expected to nearly double in the next five years, while overall natural gas production is on pace to reach record highs, according to recent analyses by the US Energy Information Administration (EIA). Michael Mørland, Atlantic project cargo director for Norwegian multipurpose vessel (MPV) operator G2 Ocean, told the Journal of Commerce that LNG capacity expansion in the US has generated significant breakbulk and project flows over the past 10 years. “We expect this development to continue into the next decade, regardless of short-term geopolitical disruptions,” he said Mørland added that larger LNG production units, further expansions, and more efficient technologies are in the works to meet the growing energy demand from AI data centers and ongoing shifts in the US power mix. But because LNG mega-projects are capital-intensive with extended lead time, the interruptions in the Middle East are unlikely to influence final investment decisions (FIDs) for new US projects, he said. “Since the typical sourcing locations for cargo are not based in the Middle East and remain unaffected, we do not currently expect significant changes in cargo volumes or movement patterns outside the region,” Mørland said, explaining that it would take at least six to 18 months for those changes to show up because of the extended timeframe needed for project cargo manufacturing and contracting. US set to almost double LNG export capacity The US has eight operating LNG export terminals, and export capacity is expected to nearly double by 2031, according to a Feb. 24 analysis by the EIA. In 2025, US developers signed sale and purchase agreements (SPA) for 5.2 billion cubic feet per day (Bcf/d) of LNG from planned export facilities — the highest volume of SPAs since 2022, according to a March 3 EIA report. SPAs are necessary to secure a final investment decision for LNG terminal construction. Developers reached FIDs on four US LNG projects in 2025: the first phase of the Woodside Louisiana LNG and CP2 projects, and the second phase of the Rio Grande and Port Arthur projects. The four projects will begin operations between 2029 and 2031 and will bring a combined 7.2 Bcf/d in LNG export capacity under construction. That comes as overall natural gas production in the US is set to reach record highs in 2026 and 2027, according to the EIA. Production is set to increase by 2% to an average of 120.8 Bcf/d in 2026 and then grow to 122.3 Bcf/d in 2027. In 2026, US developers plan to add 6.3 gigawatts (GW) of natural gas-fired capacity, over 80% of which is planned for locations across Texas, Oklahoma, Ohio, Tennessee and Florida. Edwin Peh, project cargo director for Pacific and global capital projects for G2 Ocean, told the Journal of Commerce that the MPV operator anticipates higher demand for breakbulk and project cargo transportation to support the natural gas-fired capacity additions. “G2 Ocean is receiving inquiries for such shipments and has already shipped turbines and generators for gas-fired power plant projects,” he said. Peh said it’s still too early to detect any shifts in project cargo movement resulting from shipping disruptions in the Middle East. “The market is closely monitoring the evolving situation, including fluctuating bunker prices, while shippers evaluate whether they need additional time and cost buffers for higher insurance premiums and potentially longer transit times,” he said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Port News

Energy projects

Project cargo

Breakbulk ports

Breakbulk News

Maritime

Middle East shipping disruptions boost US position as top LNG exporter

<div class="phx-topic abstract-wrapper">Long-sought regulatory reforms within the Canadian trucking industry could tighten capacity and cause cross-border rates to rise. </div>

Long-sought regulatory reforms within the Canadian trucking industry could tighten capacity and cause cross-border rates to rise.

<div class="phx-topic">The Canadian government is moving to crack down on controversial labor practices in the country’s trucking industry, a move that could reshape the sector, increase fleet costs and ultimately result in tighter capacity and higher rates for shippers. The issues — including driver classification, tax policy, safety and training standards, and immigration — are often referred to collectively by the controversial label “Driver Inc.” and echo similar debates in the US since 2019. The dispute has simmered for more than a decade, but received renewed attention after Mark Carney became Canada’s prime minister last year. Stricter enforcement of the “Driver Inc.” issues could limit access to the lowest-cost trucking capacity that has been available in recent years in Canada, potentially pushing transportation rates higher for shippers. But whether the capacity needle really moves largely depends on how vigorously and thoroughly the Canadian government cracks down on “Driver Inc.” One issue is the classification of drivers as employees versus independent contractors, a question that has been fiercely debated in California, Illinois and New Jersey. Another issue centers on how immigrant drivers are integrated into Canada’s trucking industry, particularly regarding training standards and highway safety. In the US, a similar concern has been raised over “CDL mills,” where fraudulent or low-quality trucking schools provide minimal instruction before putting drivers on highways. A third issue involves tax policy and the treatment of drivers operating as independent contractors. For shippers, the “Driver Inc.” debate ultimately comes down to the cost structure of trucking companies. Fleets that classify drivers as independent contractors operate with lower costs because they avoid payroll taxes, overtime requirements and benefit obligations. And those lower costs translate into lower truckload rates for Canadian shippers. <h3>Dispute over the ‘new generation’ in Canadian trucking </h3>The Canadian Trucking Alliance (CTA) argues that some carriers misclassify drivers as independent contractors and provide inadequate safety training. Part of the controversy stems from a longstanding tax policy loophole. The Canada Revenue Agency (CRA), Canada’s equivalent of the US Internal Revenue Service, imposed a moratorium in 2011 on enforcement actions related to T4A tax filings, a form similar to the US 1099 used for independent contractors. The moratorium was lifted earlier this month. “The carrier benefited from not having to pay overtime and all the other responsibilities, which gave them about a 30% pricing advantage in the marketplace,” said Stephen Laskowski, CTA’s president, said. “All we're looking for is fair competition, where carriers compete on service price and other matters all while complying with regulatory and tax requirements.” Laskowski said the issue is tied to broader concerns involving driver safety, immigration fraud, forced labor and organized cargo theft. But Tejpreet Dulat, spokesperson for the Canada Truck Operators Association (CTOA), said many immigrant drivers prefer being an independent contractor because it allows them to choose when to work, which loads they haul and which carriers they serve. The argument echoes <a href="https://www.joc.com/article/brokerage-model-offers-post-ab5-path-in-california-5234932">the debate in California surrounding AB5</a>, which reshaped the rules governing employee versus contractor status. “We see the gig economy now; the new generation is taking over the trucking industry,” Dulat said. “The gig economy workers want to manage their own schedules. Some truck drivers have young families. They prefer shorter routes because they want to be back home on the second or third day. If they work on the payroll, they don't have this luxury.” Dulat also said the CTOA supports lifting the moratorium on issuing T4As but is concerned that many small carriers need additional time to establish payroll systems required under the new rules. As of March 2, carriers paying more than $500 to an independent contractor must issue a T4A or face financial penalties. Dulat added that his group supports stronger safety and training standards across the trucking industry. “Whether you are an immigrant driver or are Canadian born, you have to follow the same driving rules,” he said. “There should be no compromise on strong safety standards. Road safety is very important.” <h3>Political dimensions </h3>There are also political dimensions to the dispute between the two trucking groups. Dulat, who joined the CTOA last December, is a donor to Canada’s Liberal Party and to Carney, according to the Journal de Montréal. Xavier Barsalou-Duval, a Quebec member of Parliament who has raised concerns about the “Driver Inc.” model, questioned in a December letter whether Dulat’s position could influence the pace of reforms. Canada’s House of Commons Standing Committee on Transport, Infrastructure and Communities last month concluded a series of hearings examining the “Driver Inc.” matter. The committee is preparing a report, entitled The Changing Landscape of Truck Drivers in Canada, that is due to be published this spring and will propose policy recommendations to Parliament. Canada’s Council of Ministers Responsible for Transportation and Highway Safety, which includes Transport Minister Steven MacKinnon, agreed last month to stricter enforcement of driver classification, tax compliance, and safety and training standards in the country’s commercial trucking industry. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

The Canadian government is moving to crack down on controversial labor practices in the country’s trucking industry, a move that could reshape the sector, increase fleet costs and ultimately result in tighter capacity and higher rates for shippers. The issues — including driver classification, tax policy, safety and training standards, and immigration — are often referred to collectively by the controversial label “Driver Inc.” and echo similar debates in the US since 2019. The dispute has simmered for more than a decade, but received renewed attention after Mark Carney became Canada’s prime minister last year. Stricter enforcement of the “Driver Inc.” issues could limit access to the lowest-cost trucking capacity that has been available in recent years in Canada, potentially pushing transportation rates higher for shippers. But whether the capacity needle really moves largely depends on how vigorously and thoroughly the Canadian government cracks down on “Driver Inc.” One issue is the classification of drivers as employees versus independent contractors, a question that has been fiercely debated in California, Illinois and New Jersey. Another issue centers on how immigrant drivers are integrated into Canada’s trucking industry, particularly regarding training standards and highway safety. In the US, a similar concern has been raised over “CDL mills,” where fraudulent or low-quality trucking schools provide minimal instruction before putting drivers on highways. A third issue involves tax policy and the treatment of drivers operating as independent contractors. For shippers, the “Driver Inc.” debate ultimately comes down to the cost structure of trucking companies. Fleets that classify drivers as independent contractors operate with lower costs because they avoid payroll taxes, overtime requirements and benefit obligations. And those lower costs translate into lower truckload rates for Canadian shippers. Dispute over the ‘new generation’ in Canadian trucking The Canadian Trucking Alliance (CTA) argues that some carriers misclassify drivers as independent contractors and provide inadequate safety training. Part of the controversy stems from a longstanding tax policy loophole. The Canada Revenue Agency (CRA), Canada’s equivalent of the US Internal Revenue Service, imposed a moratorium in 2011 on enforcement actions related to T4A tax filings, a form similar to the US 1099 used for independent contractors. The moratorium was lifted earlier this month. “The carrier benefited from not having to pay overtime and all the other responsibilities, which gave them about a 30% pricing advantage in the marketplace,” said Stephen Laskowski, CTA’s president, said. “All we're looking for is fair competition, where carriers compete on service price and other matters all while complying with regulatory and tax requirements.” Laskowski said the issue is tied to broader concerns involving driver safety, immigration fraud, forced labor and organized cargo theft. But Tejpreet Dulat, spokesperson for the Canada Truck Operators Association (CTOA), said many immigrant drivers prefer being an independent contractor because it allows them to choose when to work, which loads they haul and which carriers they serve. The argument echoes the debate in California surrounding AB5 , which reshaped the rules governing employee versus contractor status. “We see the gig economy now; the new generation is taking over the trucking industry,” Dulat said. “The gig economy workers want to manage their own schedules. Some truck drivers have young families. They prefer shorter routes because they want to be back home on the second or third day. If they work on the payroll, they don't have this luxury.” Dulat also said the CTOA supports lifting the moratorium on issuing T4As but is concerned that many small carriers need additional time to establish payroll systems required under the new rules. As of March 2, carriers paying more than $500 to an independent contractor must issue a T4A or face financial penalties. Dulat added that his group supports stronger safety and training standards across the trucking industry. “Whether you are an immigrant driver or are Canadian born, you have to follow the same driving rules,” he said. “There should be no compromise on strong safety standards. Road safety is very important.” Political dimensions There are also political dimensions to the dispute between the two trucking groups. Dulat, who joined the CTOA last December, is a donor to Canada’s Liberal Party and to Carney, according to the Journal de Montréal. Xavier Barsalou-Duval, a Quebec member of Parliament who has raised concerns about the “Driver Inc.” model, questioned in a December letter whether Dulat’s position could influence the pace of reforms. Canada’s House of Commons Standing Committee on Transport, Infrastructure and Communities last month concluded a series of hearings examining the “Driver Inc.” matter. The committee is preparing a report, entitled The Changing Landscape of Truck Drivers in Canada, that is due to be published this spring and will propose policy recommendations to Parliament. Canada’s Council of Ministers Responsible for Transportation and Highway Safety, which includes Transport Minister Steven MacKinnon, agreed last month to stricter enforcement of driver classification, tax compliance, and safety and training standards in the country’s commercial trucking industry. Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking News

Truckload

Truck brokers

Surface

Canada’s ‘Driver Inc.’ crackdown could push trucking rates higher

<div class="phx-topic abstract-wrapper">The Hong Kong-based carrier ended the year with a $1.5 billion net profit, but that was a 41% drop from the robust earnings of the previous year.</div>

The Hong Kong-based carrier ended the year with a $1.5 billion net profit, but that was a 41% drop from the robust earnings of the previous year.

<div class="phx-topic">Trade tensions and US tariffs weighed heavily on the 2025 financial results of OOCL, with the ocean carrier reporting Thursday sharp declines across all its earnings metrics for the year. In an uncertain policy environment characterized by extreme market volatility, Hong Kong-headquartered OOCL saw its 2025 revenue fall 9.3% year over year to $9.7 billion. Earnings before interest and taxes (EBIT) fell 42% to $1.5 billion and net profit was down 41%, also to $1.5 billion. The carrier’s volume for the year rose 4% to 7.9 million TEUs. “Tariff measures and trade tensions continued to weigh heavily on the container shipping industry, most notably on the trans‑Pacific trade, driving sharp fluctuations in both cargo volumes and freight rates,” OOCL said in its earnings announcement. “At the same time, policy adjustments and frontloading disrupted the usual post-Lunar New Year seasonal patterns.” One of the carrier’s priorities for 2026 is to accelerate the vertical expansion of its supply chain, building an end-to-end product offering customized solutions such as international order processing, cargo management, warehousing, and distribution services. OOCL took delivery of nine new 16,828-TEU container vessels in 2025, and this year will see the first of a seven-ship order for 24,000-TEU dual-fuel methanol-capable vessels as well as six 13,580-TEU conventional fuel vessels chartered from Seaspan Corporation. The 16,828-TEU fleet has strengthened OOCL’s presence on the trans‑Pacific and indirectly enabled the resumption of the LL3 service on the Asia-Europe trade, which had been suspended due to capacity shortages. <h3>Structural overcapacity adds rate pressure </h3>But even as OOCL significantly adds capacity to its fleet, the Cosco Shipping Holdings subsidiary painted a somber picture in its outlook, warning of structural overcapacity in container shipping that will add downward pressure to rates. It is a valid concern. Just over 1 million TEUs of capacity via ships over 10,000 TEUs is scheduled to be delivered this year. That will be followed by 2.3 million TEUs of capacity due for delivery in 2027 and 3.4 million TEUs in 2028, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="994022ec-453b-46eb-b729-fcd589a9082d"></dynamic-object></div>There is <a href="https://www.joc.com/article/yang-ming-wan-hai-boost-combined-order-book-with-12-new-ships-6185215">no sign of carriers pausing ship orders, either</a>. A record 4.8 million TEUs of new ship capacity was ordered in 2025, and that momentum has carried into 2026 with another 290,000 TEUs ordered in January, according to maritime consultancy Drewry. OOCL made no mention of the Middle East war in its earnings statement, but pointed to “ongoing geopolitical tensions” and “fluctuations in economic policies” that will continue to disrupt supply chains and reshape global trade patterns. “While strengthening our east-west service networks, we are also adapting to shifts in global trade patterns, seizing new growth opportunities, accelerating investment in emerging markets and striving to achieve a more balanced global presence to mitigate risks arising from individual regional markets,” OOCL said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Trade tensions and US tariffs weighed heavily on the 2025 financial results of OOCL, with the ocean carrier reporting Thursday sharp declines across all its earnings metrics for the year. In an uncertain policy environment characterized by extreme market volatility, Hong Kong-headquartered OOCL saw its 2025 revenue fall 9.3% year over year to $9.7 billion. Earnings before interest and taxes (EBIT) fell 42% to $1.5 billion and net profit was down 41%, also to $1.5 billion. The carrier’s volume for the year rose 4% to 7.9 million TEUs. “Tariff measures and trade tensions continued to weigh heavily on the container shipping industry, most notably on the trans‑Pacific trade, driving sharp fluctuations in both cargo volumes and freight rates,” OOCL said in its earnings announcement. “At the same time, policy adjustments and frontloading disrupted the usual post-Lunar New Year seasonal patterns.” One of the carrier’s priorities for 2026 is to accelerate the vertical expansion of its supply chain, building an end-to-end product offering customized solutions such as international order processing, cargo management, warehousing, and distribution services. OOCL took delivery of nine new 16,828-TEU container vessels in 2025, and this year will see the first of a seven-ship order for 24,000-TEU dual-fuel methanol-capable vessels as well as six 13,580-TEU conventional fuel vessels chartered from Seaspan Corporation. The 16,828-TEU fleet has strengthened OOCL’s presence on the trans‑Pacific and indirectly enabled the resumption of the LL3 service on the Asia-Europe trade, which had been suspended due to capacity shortages. Structural overcapacity adds rate pressure But even as OOCL significantly adds capacity to its fleet, the Cosco Shipping Holdings subsidiary painted a somber picture in its outlook, warning of structural overcapacity in container shipping that will add downward pressure to rates. It is a valid concern. Just over 1 million TEUs of capacity via ships over 10,000 TEUs is scheduled to be delivered this year. That will be followed by 2.3 million TEUs of capacity due for delivery in 2027 and 3.4 million TEUs in 2028, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. There is no sign of carriers pausing ship orders, either . A record 4.8 million TEUs of new ship capacity was ordered in 2025, and that momentum has carried into 2026 with another 290,000 TEUs ordered in January, according to maritime consultancy Drewry. OOCL made no mention of the Middle East war in its earnings statement, but pointed to “ongoing geopolitical tensions” and “fluctuations in economic policies” that will continue to disrupt supply chains and reshape global trade patterns. “While strengthening our east-west service networks, we are also adapting to shifts in global trade patterns, seizing new growth opportunities, accelerating investment in emerging markets and striving to achieve a more balanced global presence to mitigate risks arising from individual regional markets,” OOCL said. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Container Shipping News

Volatile shipping market drags down OOCL’s 2025 financial results

<div class="phx-topic abstract-wrapper">Cosco did not give a reason for the move, but it comes just two weeks after the Panamanian government wrested control of Balboa and Cristobal ports from Hutchison-owned operator Panama Ports Company.</div>

Cosco did not give a reason for the move, but it comes just two weeks after the Panamanian government wrested control of Balboa and Cristobal ports from Hutchison-owned operator Panama Ports Company.

<div class="phx-topic">Cosco Shipping Lines and its Hong Kong-headquartered affiliate OOCL have halted calls at Balboa port on Panama’s Pacific Coast and are instead redirecting services to Manzanillo on the Atlantic side of the Panama Canal. Cosco did not give a reason for the move, but it comes just two weeks after the Panamanian government wrested control of Balboa and Cristobal ports from operator Panama Ports Company (PPC) after PPC had its 28-year concession <a href="https://www.joc.com/article/panama-court-voids-ck-hutchison-canal-terminal-leases-6161145">nullified by Panama’s Supreme Court</a>. PPC is 90% owned by Hong Kong-conglomerate CK Hutchison Holdings. Cosco announced the service change in an advisory to local customers; updated vessel schedules Thursday show Cosco and OOCL ships calling at Manzanillo instead of Balboa. Cosco’s notice said existing confirmed bookings for Balboa will be canceled. Import cargo already held at Balboa will be released normally, although empty boxes must be returned to Manzanillo International Terminal (MIT) or Colon Container Terminal (CCT), both on the Atlantic coast, the advisory said. Taiwan’s Evergreen Marine, Cosco Shipping’s partner in the Ocean Alliance along with OOCL and CMA CGM, operates CCT, while SSA Marine operates MIT. Some transshipment cargo normally handled by Balboa on Cosco’s West Coast South America and regional Caribbean services has been shifted to Buenaventura in Colombia and Lazaro Cardenas on the West Coast of Mexico. <h3>Move comes after Maersk, MSC met with Chinese officials </h3>Cosco’s shift away from Balboa came a day after executives from Maersk and Mediterranean Shipping Co. <a href="https://www.joc.com/article/china-india-warn-carriers-on-higher-pricing-tied-to-middle-east-conflict-6183986">were called to a meeting with officials from China’s Ministry of Transport</a> to discuss “international shipping operations.” No details of what was discussed at the meeting have been released by the ministry or carriers. But it comes after Maersk’s APM Terminals (APMT) <a href="https://www.joc.com/article/maersk-msc-units-begin-interim-management-of-panama-canal-terminals-6175167">was given a transitory concession contract</a> for the Balboa terminal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited (TiL) was given the same for Cristobal on the Atlantic coast. Both contracts are for 18 months, as APMT and TiL were appointed by the Panama government to operate the ports until new long-term management concessions can be agreed. China’s Hong Kong and Macao Affairs Office has warned that Panama would “pay a heavy price, both politically and economically” for the court decision, calling the ruling “absurd ... shameful and pathetic.” Cosco’s move away from Balboa coincided with comments by President Donald Trump last weekend that the US would “not allow hostile foreign influence to establish itself in this hemisphere, and that includes the Panama Canal.” The Trump administration had been in an increasingly aggressive spat with China over what it saw as China’s malign influence on canal and local port operations. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Cosco Shipping Lines and its Hong Kong-headquartered affiliate OOCL have halted calls at Balboa port on Panama’s Pacific Coast and are instead redirecting services to Manzanillo on the Atlantic side of the Panama Canal. Cosco did not give a reason for the move, but it comes just two weeks after the Panamanian government wrested control of Balboa and Cristobal ports from operator Panama Ports Company (PPC) after PPC had its 28-year concession nullified by Panama’s Supreme Court . PPC is 90% owned by Hong Kong-conglomerate CK Hutchison Holdings. Cosco announced the service change in an advisory to local customers; updated vessel schedules Thursday show Cosco and OOCL ships calling at Manzanillo instead of Balboa. Cosco’s notice said existing confirmed bookings for Balboa will be canceled. Import cargo already held at Balboa will be released normally, although empty boxes must be returned to Manzanillo International Terminal (MIT) or Colon Container Terminal (CCT), both on the Atlantic coast, the advisory said. Taiwan’s Evergreen Marine, Cosco Shipping’s partner in the Ocean Alliance along with OOCL and CMA CGM, operates CCT, while SSA Marine operates MIT. Some transshipment cargo normally handled by Balboa on Cosco’s West Coast South America and regional Caribbean services has been shifted to Buenaventura in Colombia and Lazaro Cardenas on the West Coast of Mexico. Move comes after Maersk, MSC met with Chinese officials Cosco’s shift away from Balboa came a day after executives from Maersk and Mediterranean Shipping Co. were called to a meeting with officials from China’s Ministry of Transport to discuss “international shipping operations.” No details of what was discussed at the meeting have been released by the ministry or carriers. But it comes after Maersk’s APM Terminals (APMT) was given a transitory concession contract for the Balboa terminal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited (TiL) was given the same for Cristobal on the Atlantic coast. Both contracts are for 18 months, as APMT and TiL were appointed by the Panama government to operate the ports until new long-term management concessions can be agreed. China’s Hong Kong and Macao Affairs Office has warned that Panama would “pay a heavy price, both politically and economically” for the court decision, calling the ruling “absurd ... shameful and pathetic.” Cosco’s move away from Balboa coincided with comments by President Donald Trump last weekend that the US would “not allow hostile foreign influence to establish itself in this hemisphere, and that includes the Panama Canal.” The Trump administration had been in an increasingly aggressive spat with China over what it saw as China’s malign influence on canal and local port operations. Contact Keith Wallis at keithwallis@hotmail.com .

Marine terminals

International ports

Cosco, OOCL halt Balboa calls in latest twist over Panama port row

<div class="phx-topic abstract-wrapper">All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload boxes that departed China and Southeast Asia in recent days, according to market sources in India.</div>

All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload boxes that departed China and Southeast Asia in recent days, according to market sources in India.

<div class="phx-topic">An estimated 100,000 TEUs of Far East-originated cargo that has become stranded en route to the Middle East is set to land across Indian ports as ocean carriers divert from the war zone, market sources in India say. All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload containers that departed ports in China and Southeast Asia in recent days, according to local industry sources who spoke with the Journal of Commerce. Representatives from Maersk, CMA CGM, Hapag-Lloyd, Ocean Network Express, and Cosco Shipping are already in discussions with authorities at the Indian West Coast ports of Nhava Sheva, Mundra, Pipavav and Kandla to strike yard space deals for the storage of diverted loads, the sources said. With a planned rerouting count of approximately 40,000 TEUs, Maersk is also considering Gangavaram Port on India’s southern East Coast as an additional discharge point, the sources added. Maersk could not be reached for comment. Carriers at Nhava Sheva are primarily engaging with PSA International’s flagship Bharat Mumbai Container Terminals (BMCT), which now has measurable spare cargo-handling space following the 2025 terminal expansions that doubled annual throughput capacity to 4.8 million TEUs. BMCT has already handled a few ships diverted to Nhava Sheva to drop boxes, including Hapag-Lloyd’s 24,000-TEU Damietta Express, while terminal berthing data updated Thursday points to a lineup of nine ad-hoc calls through March 19. The terminal can stack up to 25,000 TEUs on dock, with capacity for 3,000 reefer plug-ins for refrigerated cargo, without causing major operational pressure on the quayside, sources noted. Port and customs authorities in Nhava Sheva are collaborating to identify and allocate dedicated extra yard space off the dock in line with recent government directives to ease Middle East supply chain pain points. Mediterranean Shipping Co. is already a significant regional transshipment player at Mundra and Vizhinjam in the south, riding on its strategic partnerships with Adani Ports, and there are no indications the carrier will stop using those ports to handle stranded cargo. <h3>India-Middle East rates jump </h3>Evacuating diverted containers is complicated in the current scenario, carrier sources agree, but they are betting on alternative shuttle connections to Sohar in Oman and Khor Fakkan and Fujairah in the United Arab Emirates to keep clearing boxes out in parallel, with final transit legs <a href="https://www.joc.com/article/as-war-rages-multimodal-demand-surges-on-asia-europe-landbridge-6185162">handled by road wherever feasible</a>. While space is not guaranteed, forwarder sources have reported wild swings in spot pricing for Nhava Sheva-Middle East bookings: up to $2,500 per TEU and $3,500 per FEU for Sohar and $2,000 per TEU and $3,000 per FEU for Khor Fakkan. That’s from as low as $50 to $75 per FEU for bookings to Jebel Ali last month. “Our strategy is to prioritize refrigerated containers for onward connectivity,” a Nhava Sheva-based operations executive at a European carrier said. “We are working on a combination of regional options to handle affected cargo,” an executive with an Asia-based carrier said. However, no one is certain how efficiently those plans will play out in such a fluid environment. Terminals across major Indian ports are operating at normal speed at the moment, except for slightly longer waiting times reported at Nhava Sheva due to bunching of vessels. But trade experts warn of port congestion risks if a large influx of diverted containers arrives within a few days as they believe there will be a scramble at yards/terminal gates to connect or reconnect boxes on to ships when normal ocean service patterns return. Another regional factor pushing carriers onto the Indian coast is the space crunch at Sri Lanka’s Colombo Port to hold ad-hoc volumes. Local sources speaking with the Journal of Commerce have reported high yard occupancy levels across Colombo terminals due to a steady surge in traditional transshipment volumes. Colombo handled 604,173 TEUs of transshipments in January, up from 589,134 TEUs in December, industry data shows. “With ongoing schedule disruptions, there has been a bump in container dwells,” said a Colombo terminal executive who didn’t want to be identified. “So, we are turning away Middle East cargo callers at the moment.” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

An estimated 100,000 TEUs of Far East-originated cargo that has become stranded en route to the Middle East is set to land across Indian ports as ocean carriers divert from the war zone, market sources in India say. All major long-haul liners are seeking temporary supply chain asylum at Indian docks to offload containers that departed ports in China and Southeast Asia in recent days, according to local industry sources who spoke with the Journal of Commerce. Representatives from Maersk, CMA CGM, Hapag-Lloyd, Ocean Network Express, and Cosco Shipping are already in discussions with authorities at the Indian West Coast ports of Nhava Sheva, Mundra, Pipavav and Kandla to strike yard space deals for the storage of diverted loads, the sources said. With a planned rerouting count of approximately 40,000 TEUs, Maersk is also considering Gangavaram Port on India’s southern East Coast as an additional discharge point, the sources added. Maersk could not be reached for comment. Carriers at Nhava Sheva are primarily engaging with PSA International’s flagship Bharat Mumbai Container Terminals (BMCT), which now has measurable spare cargo-handling space following the 2025 terminal expansions that doubled annual throughput capacity to 4.8 million TEUs. BMCT has already handled a few ships diverted to Nhava Sheva to drop boxes, including Hapag-Lloyd’s 24,000-TEU Damietta Express, while terminal berthing data updated Thursday points to a lineup of nine ad-hoc calls through March 19. The terminal can stack up to 25,000 TEUs on dock, with capacity for 3,000 reefer plug-ins for refrigerated cargo, without causing major operational pressure on the quayside, sources noted. Port and customs authorities in Nhava Sheva are collaborating to identify and allocate dedicated extra yard space off the dock in line with recent government directives to ease Middle East supply chain pain points. Mediterranean Shipping Co. is already a significant regional transshipment player at Mundra and Vizhinjam in the south, riding on its strategic partnerships with Adani Ports, and there are no indications the carrier will stop using those ports to handle stranded cargo. India-Middle East rates jump Evacuating diverted containers is complicated in the current scenario, carrier sources agree, but they are betting on alternative shuttle connections to Sohar in Oman and Khor Fakkan and Fujairah in the United Arab Emirates to keep clearing boxes out in parallel, with final transit legs handled by road wherever feasible . While space is not guaranteed, forwarder sources have reported wild swings in spot pricing for Nhava Sheva-Middle East bookings: up to $2,500 per TEU and $3,500 per FEU for Sohar and $2,000 per TEU and $3,000 per FEU for Khor Fakkan. That’s from as low as $50 to $75 per FEU for bookings to Jebel Ali last month. “Our strategy is to prioritize refrigerated containers for onward connectivity,” a Nhava Sheva-based operations executive at a European carrier said. “We are working on a combination of regional options to handle affected cargo,” an executive with an Asia-based carrier said. However, no one is certain how efficiently those plans will play out in such a fluid environment. Terminals across major Indian ports are operating at normal speed at the moment, except for slightly longer waiting times reported at Nhava Sheva due to bunching of vessels. But trade experts warn of port congestion risks if a large influx of diverted containers arrives within a few days as they believe there will be a scramble at yards/terminal gates to connect or reconnect boxes on to ships when normal ocean service patterns return. Another regional factor pushing carriers onto the Indian coast is the space crunch at Sri Lanka’s Colombo Port to hold ad-hoc volumes. Local sources speaking with the Journal of Commerce have reported high yard occupancy levels across Colombo terminals due to a steady surge in traditional transshipment volumes. Colombo handled 604,173 TEUs of transshipments in January, up from 589,134 TEUs in December, industry data shows. “With ongoing schedule disruptions, there has been a bump in container dwells,” said a Colombo terminal executive who didn’t want to be identified. “So, we are turning away Middle East cargo callers at the moment.” Contact Bency Mathew at bencyvmathew@gmail.com .

Carriers seek to offload stranded Asia-Middle East containers at Indian ports

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