<div class="phx-topic abstract-wrapper">Diesel fuel prices soared 6.3 cents to an average of $3.157 per gallon across the United States in t</div>

Diesel fuel prices soared 6.3 cents to an average of $3.157 per gallon across the United States in t

<div>Diesel fuel prices soared 6.3 cents to an average of $3.157 per gallon across the United States in the past week and a surge in the price of oil beyond $93 a barrel promised still higher fuel costs in coming weeks. The diesel increase reported by the U.S. Energy Information Administration included hikes of more than seven cents a gallon in some regions and a 6.8 percent increase in California that pushed prices there to an average of $3.406 per gallon. At the same time, crude oil prices on some world markets pushed past $93 a barrel on Monday before...

Diesel fuel prices soared 6.3 cents to an average of $3.157 per gallon across the United States in the past week and a surge in the price of oil beyond $93 a barrel promised still higher fuel costs in coming weeks. The diesel increase reported by the U.S. Energy Information Administration included hikes of more than seven cents a gallon in some regions and a 6.8 percent increase in California that pushed prices there to an average of $3.406 per gallon. At the same time, crude oil prices on some world markets pushed past $93 a barrel on Monday before futures prices in the United States pulled back slightly as fears of new hurricanes in the Gulf of Mexico eased. The national average price for diesel fuel measured by the EIA has grown 10 percent since the end of August and is up 30 percent over the past nine months. Average prices at the pump grew in all regions, according to the EIA, and the 6.8-cents-per-gallon increase in the Midwest pushed prices there to $3.062 a gallon, making that the last region to surpass the $3 barrier.

Trucking News

Diesel Price Soars 6.3 Cents

<div class="phx-topic abstract-wrapper">Project shippers in the US are being encouraged to test the robustness of bridge strength and state permitting feasibility up to a year in advance of major cargo moves.</div>

Project shippers in the US are being encouraged to test the robustness of bridge strength and state permitting feasibility up to a year in advance of major cargo moves.

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<div class="phx-topic">Project cargo shippers in the US are being urged to submit “dummy permits” to periodically test bridge and state permitting feasibility to avoid last-minute surprises on the volatile final leg of a cargo move. As project cargo lands at ports or prepares to exit fabrication facilities, the margin for error shrinks to zero. Yet, this is where permitting roadblocks can see multi-million-dollar projects grind to a halt. James Weston, senior project logistics manager at engineering, procurement and construction (EPC) company Linde Engineering, believes a proactive, structural shift in how shippers approach route planning would avoid last-minute surprises. Weston suggested shippers should implement an internal permit feasibility assessment process that routinely submits dummy permits up to a year in advance for major projects. "Let's apply for a permit a year in advance... route studies will give you the feasibility for infrastructure challenges and things of that nature, but it doesn't tell you if you're going to be able to get under that bridge,” he said. “It doesn't tell you if the states can even allow you to go down that route." Weston added that spending a fraction of the budget upfront acts as cheap insurance against liquid damages. ”I can mitigate a challenge a year in advance a lot easier than I can 20 days out,” he said. Deep fragmentation within permitting infrastructure in the US means that project cargo carriers frequently face situations where a route approved by one state becomes a compliance headache at the neighboring border. Craig McGraw, vice president of sales and marketing at freight service provider Trans American Trucking &amp; Warehouse, said that local infrastructure updates can instantly derail execution. ”We’ve had cases where we go to a facility, we have our truck ready, and then, because of construction delays, the permit we previously applied for is invalid,” McGraw said. To solve this, McGraw and other members of the international trade association Specialized Carriers and Rigging Association (SCRA) routinely lobby in Washington, D.C., pushing for "permit harmonization in different regions of the US, to move things along quicker," he said. Ragan Watson, who handles project sales at lifting specialist Barnhart, echoed the need to bridge the disconnect between carriers and state regulators. Barnhart utilizes annual SCRA events to present upcoming project portfolios directly to officials from roughly 45 permit offices. ”We (say), ‘These are the projects that we’re encountering in your area... What are the issues you’re envisioning that already could be something that we can gird against?” Watson said. <h3>Equipment challenge must be overcome </h3>Even the most meticulous permit planning cannot overcome a lack of physical equipment. The executives highlighted a pressing need for strategic, long-term asset acquisition rather than reactive buying during market spikes. Watson warned against rushing out to "buy more picks and shovels when there's a gold rush," urging project owners to abandon traditional short-term tendering. Instead, he suggested that shippers provide a project list “for the next three to five years" so asset-owning suppliers can justify capital expenditures to their executives. This long-term visibility is particularly vital given the explosive growth of data centers across the US, which is fundamentally reshaping market capacity. McGraw pointed out that the massive scale of data center components is forcing specialized carriers to procure highly specific trailers. "From what we're understanding that's going to be going on for the next 10 years... companies are going out and buying trailers specific to this," he said. Yet, without guaranteed contracts, acquiring those expensive assets is a gamble that "can kind of come back to bite you in the end," he added. The executives agreed that overcoming last-mile friction requires an aggressive educational outreach campaign directed at cargo owners, procurement teams, and engineers who may suffer from a "curse of knowledge" or a complete lack of operational awareness. ”I think that education of the freight owners is vital,” Weston said, advising logistics professionals to hold training sessions across corporate silos so that engineering and procurement teams understand the physical limitations of transport. Joye Runfola, director of supply chain and logistics for the Americas at industrial gas manufacturer Chart Industries, summarized the reality facing today’s supply chains. ”If it’s going to go wrong, it’s going to go wrong at the end,” she said. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Project cargo shippers in the US are being urged to submit “dummy permits” to periodically test bridge and state permitting feasibility to avoid last-minute surprises on the volatile final leg of a cargo move. As project cargo lands at ports or prepares to exit fabrication facilities, the margin for error shrinks to zero. Yet, this is where permitting roadblocks can see multi-million-dollar projects grind to a halt. James Weston, senior project logistics manager at engineering, procurement and construction (EPC) company Linde Engineering, believes a proactive, structural shift in how shippers approach route planning would avoid last-minute surprises. Weston suggested shippers should implement an internal permit feasibility assessment process that routinely submits dummy permits up to a year in advance for major projects. "Let's apply for a permit a year in advance... route studies will give you the feasibility for infrastructure challenges and things of that nature, but it doesn't tell you if you're going to be able to get under that bridge,” he said. “It doesn't tell you if the states can even allow you to go down that route." Weston added that spending a fraction of the budget upfront acts as cheap insurance against liquid damages. ”I can mitigate a challenge a year in advance a lot easier than I can 20 days out,” he said. Deep fragmentation within permitting infrastructure in the US means that project cargo carriers frequently face situations where a route approved by one state becomes a compliance headache at the neighboring border. Craig McGraw, vice president of sales and marketing at freight service provider Trans American Trucking & Warehouse, said that local infrastructure updates can instantly derail execution. ”We’ve had cases where we go to a facility, we have our truck ready, and then, because of construction delays, the permit we previously applied for is invalid,” McGraw said. To solve this, McGraw and other members of the international trade association Specialized Carriers and Rigging Association (SCRA) routinely lobby in Washington, D.C., pushing for "permit harmonization in different regions of the US, to move things along quicker," he said. Ragan Watson, who handles project sales at lifting specialist Barnhart, echoed the need to bridge the disconnect between carriers and state regulators. Barnhart utilizes annual SCRA events to present upcoming project portfolios directly to officials from roughly 45 permit offices. ”We (say), ‘These are the projects that we’re encountering in your area... What are the issues you’re envisioning that already could be something that we can gird against?” Watson said. Equipment challenge must be overcome Even the most meticulous permit planning cannot overcome a lack of physical equipment. The executives highlighted a pressing need for strategic, long-term asset acquisition rather than reactive buying during market spikes. Watson warned against rushing out to "buy more picks and shovels when there's a gold rush," urging project owners to abandon traditional short-term tendering. Instead, he suggested that shippers provide a project list “for the next three to five years" so asset-owning suppliers can justify capital expenditures to their executives. This long-term visibility is particularly vital given the explosive growth of data centers across the US, which is fundamentally reshaping market capacity. McGraw pointed out that the massive scale of data center components is forcing specialized carriers to procure highly specific trailers. "From what we're understanding that's going to be going on for the next 10 years... companies are going out and buying trailers specific to this," he said. Yet, without guaranteed contracts, acquiring those expensive assets is a gamble that "can kind of come back to bite you in the end," he added. The executives agreed that overcoming last-mile friction requires an aggressive educational outreach campaign directed at cargo owners, procurement teams, and engineers who may suffer from a "curse of knowledge" or a complete lack of operational awareness. ”I think that education of the freight owners is vital,” Weston said, advising logistics professionals to hold training sessions across corporate silos so that engineering and procurement teams understand the physical limitations of transport. Joye Runfola, director of supply chain and logistics for the Americas at industrial gas manufacturer Chart Industries, summarized the reality facing today’s supply chains. ”If it’s going to go wrong, it’s going to go wrong at the end,” she said. Contact Carly Fields at carly.fields@spglobal.com .

Heavy-haul transport

Breakbulk News

Maritime

‘Dummy permits’ could overcome last-mile snafus for project cargoes

<div class="phx-topic abstract-wrapper">The Shanghai-based carrier has launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions.</div>

The Shanghai-based carrier has launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions.

<div class="phx-topic">Emerging regional carrier CU Lines, formerly China United Lines, is rapidly consolidating its network operations, riding on a string of vessel charters it has snapped up as a result of Singapore-based <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fsealead-warns-of-network-disruptions-in-persian-gulf-war-zone-6199099&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C9365140523594abb902308deb734a18b%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639149633885888591%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=ITgBHvs7LI4eHjk9ppWhFX%2BxCkWHJudG%2FkgBGoScsAA%3D&amp;reserved=0">SeaLead’s service terminations and exit from certain markets.</a>CU has now launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions. A fleet of four ships, including the 10,000-TEU Express Berlin that CU Lines took over from SeaLead, has been deployed on a standalone China-Middle East Express (CGX) loop, with stops in India and Pakistan. The full CGX rotation is Qingdao, Shanghai, Ningbo, Shekou, Nansha, Port Klang, Mundra, Karachi, Sohar, Khor Fakkan and Qingdao. CU Lines noted that shippers on the trade lane have an opportunity to experience consistent sailings and better schedule reliability due to the use of “well-conditioned” tonnage. “Leveraging its existing REX Red Sea Express service, AEM Asia-East Mediterranean service and regional feeder network, CU Lines will provide customers with a Middle East service portfolio featuring direct priority services and diversified transport routes, aiming to ensure smooth supply chains,” the Shanghai-based liner said. Additionally, CU has opened dedicated shuttle operations on a rotation of Shanghai, Nansha, Khor Fakkan, and Shanghai in conjunction with Hong Kong-based T.S. Lines. Khor Fakkan and Fujairah in the United Arab Emirates and Sohar in Oman have become the contingency supply chain support for Middle East cargo flows hobbled by the war in the Middle East. <h3>Intra-Asia growth </h3>CU Lines also continues its growth in the intra-Asia market. The carrier recently joined a consortium led by Singapore-based X-Press Feeders for enhanced Southeast Asia-Indian subcontinent coverage. The joint service deploys three ships from X-Press Feeders and one vessel from CU Lines, ranging between 3,000 TEUs to 5,000 TEUs, with T.S. Lines as another consortium partner through a slot charter deal. More network expansion for CU Lines appears imminent as local industry sources with knowledge of the matter say the carrier has agreed to take over approximately 65,000 TEUs of capacity previously operated by SeaLead, which they estimate equates to between 20 to 25 vessel charter transactions. ”Six charter parties for the switchovers have already been concluded, while formalities for the rest of the plans are progressing,” said an industry source who didn’t want to be identified. India-Persian Gulf trades had already seen the entry of <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fopportunistic-regional-lines-rush-to-middle-east-corridor-amid-mainliner-pause-6193412&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C9365140523594abb902308deb734a18b%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639149633885935739%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=QOxNEJcFLBtbTnJ5tIo8dc9tRInjzi2fx7bFJbW2Y10%3D&amp;reserved=0">several other opportunistic ocean capacity participants</a>, driven by the allure of record-high freight yields. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

Emerging regional carrier CU Lines, formerly China United Lines, is rapidly consolidating its network operations, riding on a string of vessel charters it has snapped up as a result of Singapore-based SeaLead’s service terminations and exit from certain markets. CU has now launched two new services connecting Asia to the Middle East as the Persian Gulf trade corridor presents strong green shoots of capacity demand amid ongoing mainline service disruptions. A fleet of four ships, including the 10,000-TEU Express Berlin that CU Lines took over from SeaLead, has been deployed on a standalone China-Middle East Express (CGX) loop, with stops in India and Pakistan. The full CGX rotation is Qingdao, Shanghai, Ningbo, Shekou, Nansha, Port Klang, Mundra, Karachi, Sohar, Khor Fakkan and Qingdao. CU Lines noted that shippers on the trade lane have an opportunity to experience consistent sailings and better schedule reliability due to the use of “well-conditioned” tonnage. “Leveraging its existing REX Red Sea Express service, AEM Asia-East Mediterranean service and regional feeder network, CU Lines will provide customers with a Middle East service portfolio featuring direct priority services and diversified transport routes, aiming to ensure smooth supply chains,” the Shanghai-based liner said. Additionally, CU has opened dedicated shuttle operations on a rotation of Shanghai, Nansha, Khor Fakkan, and Shanghai in conjunction with Hong Kong-based T.S. Lines. Khor Fakkan and Fujairah in the United Arab Emirates and Sohar in Oman have become the contingency supply chain support for Middle East cargo flows hobbled by the war in the Middle East. Intra-Asia growth CU Lines also continues its growth in the intra-Asia market. The carrier recently joined a consortium led by Singapore-based X-Press Feeders for enhanced Southeast Asia-Indian subcontinent coverage. The joint service deploys three ships from X-Press Feeders and one vessel from CU Lines, ranging between 3,000 TEUs to 5,000 TEUs, with T.S. Lines as another consortium partner through a slot charter deal. More network expansion for CU Lines appears imminent as local industry sources with knowledge of the matter say the carrier has agreed to take over approximately 65,000 TEUs of capacity previously operated by SeaLead, which they estimate equates to between 20 to 25 vessel charter transactions. ”Six charter parties for the switchovers have already been concluded, while formalities for the rest of the plans are progressing,” said an industry source who didn’t want to be identified. India-Persian Gulf trades had already seen the entry of several other opportunistic ocean capacity participants , driven by the allure of record-high freight yields. Contact Bency Mathew at bencyvmathew@gmail.com.

Port News

Container lines

International ports

Container Shipping News

CU Lines’ network expansion gives fresh capacity influx into Middle East trades

<div class="phx-topic abstract-wrapper">Justice Department indictments against four of the world’s biggest box manufacturers follow reciprocal port fees and tariffs on China-made port equipment.</div>

Justice Department indictments against four of the world’s biggest box manufacturers follow reciprocal port fees and tariffs on China-made port equipment.

<div class="phx-topic">The US Department of Justice’s (DOJ’s) indictment of four of the world’s largest ocean shipping container makers and seven of their senior executives marks the latest US-China supply chain-linked row that has previously included tit-for-tat port fees and tariffs on China-made port equipment. It also follows earlier <a href="https://www.joc.com/article/fmcs-bentzel-cautions-on-china-dominance-in-chassis-container-supply-5249125">US warnings about China’s dominance in container and chassis manufacturing</a> that led one of the indicted companies to drop its <a href="https://www.joc.com/article/cimc-maersk-drop-reefer-deal-after-doj-warning-5222824">planned $987 million acquisition of Maersk’s refrigerated container production business</a> in 2022 after the DOJ raised a red flag on the deal. DOJ, in an indictment unsealed Tuesday, accused the parties of engaging in a price-fixing and production-limiting conspiracy from November 2019 to at least January 2024. The companies indicted are China International Marine Containers (CIMC), the world’s largest container manufacturer; Cosco Shipping Development’s container-making subsidiary Shanghai Universal Logistics Equipment Company, which controls Dong Fang International Containers; CXIC Group Containers Company; and Hong Kong’s Singamas Container (Holdings). The executives targeted include CIMC President Mai Boliang and former vice president Huang Tianhua Huang, and Singamas CEO and Chairman Teo Siong Seng. “The multi-year conspiracy roughly doubled the prices of standard shipping containers between 2019 and 2021, increasing the container manufacturers’ profits approximately one hundredfold during the COVID-19 pandemic and global supply chain crisis,” the DOJ said in a statement. Chinese container manufacturers produce arbout 95% of the world’s dry freight containers, according to maritime consultancy Drewry. The DOJ said one executive, Singamas marketing director Vick Nam Hing Ma, was arrested in France last month and his extradition to the US is pending. The six other co-defendants remain at large. The Justice Department did not say whether it had approached other jurisdictions, including Hong Kong and Singapore, where Singamas CEO Teo normally lives, seeking the arrest of the other executives. In separate statements to the Hong Kong stock exchange Wednesday, both CIMC and Singamas said they were aware the DOJ had issued criminal antitrust charges against them and company executives. But they both said that neither the companies nor their executives had been served with any legal documentation from the DOJ. Singamas added that it had “engaged external legal advisers,” while CIMC said it “will closely monitor and respond proactively.” Both companies said business operations and day-to-day activities remain normal. Dong Fang, Cosco Shipping Development and CXIC did not immediately comment. <h3>Companies allegedly agreed on production cap </h3>In details about the alleged conspiracy, the DOJ said executives from CIMC, Dong Fang, and CXIC, as well as an alleged unnamed co-conspirator, met at CIMC’s headquarters in Shenzhen in November 2019. The executives allegedly agreed to four measures limiting output of dry freight containers, including restricting the number of shifts and hours each factory worked, installing surveillance cameras on all production lines to ensure the agreed-upon limitations were not exceeded, and not building any new container-making factories. DOJ alleges the executives later refined the pact to restrict how many dry containers the companies would manufacture for particular customers, including container lessors, shipping lines and logistics companies in the US, Europe, China and elsewhere, while also capping total container production. “Global price-fixing cartels strike at the heart of our economic liberty,” Omeed Assefi, DOJ’s acting assistant attorney general, said in the statement. “The defendants held hostage the world’s supply of ocean shipping containers during the COVID pandemic when our supply chains needed it the most.” The indictments come just one week after US President Donald Trump traveled to China for meetings with Chinese President Xi Jinping. Washington and Beijing have also been at odds over the past year regarding what the US sees as <a href="https://www.joc.com/article/cosco-halts-balboa-calls-in-latest-twist-over-panama-port-row-6185309">China’s outsized influence in Panama Canal operations</a>, with that coming amid the wider trade spat that saw the US imposing tariffs on China-made products and Beijing responding in kind. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

The US Department of Justice’s (DOJ’s) indictment of four of the world’s largest ocean shipping container makers and seven of their senior executives marks the latest US-China supply chain-linked row that has previously included tit-for-tat port fees and tariffs on China-made port equipment. It also follows earlier US warnings about China’s dominance in container and chassis manufacturing that led one of the indicted companies to drop its planned $987 million acquisition of Maersk’s refrigerated container production business in 2022 after the DOJ raised a red flag on the deal. DOJ, in an indictment unsealed Tuesday, accused the parties of engaging in a price-fixing and production-limiting conspiracy from November 2019 to at least January 2024. The companies indicted are China International Marine Containers (CIMC), the world’s largest container manufacturer; Cosco Shipping Development’s container-making subsidiary Shanghai Universal Logistics Equipment Company, which controls Dong Fang International Containers; CXIC Group Containers Company; and Hong Kong’s Singamas Container (Holdings). The executives targeted include CIMC President Mai Boliang and former vice president Huang Tianhua Huang, and Singamas CEO and Chairman Teo Siong Seng. “The multi-year conspiracy roughly doubled the prices of standard shipping containers between 2019 and 2021, increasing the container manufacturers’ profits approximately one hundredfold during the COVID-19 pandemic and global supply chain crisis,” the DOJ said in a statement. Chinese container manufacturers produce arbout 95% of the world’s dry freight containers, according to maritime consultancy Drewry. The DOJ said one executive, Singamas marketing director Vick Nam Hing Ma, was arrested in France last month and his extradition to the US is pending. The six other co-defendants remain at large. The Justice Department did not say whether it had approached other jurisdictions, including Hong Kong and Singapore, where Singamas CEO Teo normally lives, seeking the arrest of the other executives. In separate statements to the Hong Kong stock exchange Wednesday, both CIMC and Singamas said they were aware the DOJ had issued criminal antitrust charges against them and company executives. But they both said that neither the companies nor their executives had been served with any legal documentation from the DOJ. Singamas added that it had “engaged external legal advisers,” while CIMC said it “will closely monitor and respond proactively.” Both companies said business operations and day-to-day activities remain normal. Dong Fang, Cosco Shipping Development and CXIC did not immediately comment. Companies allegedly agreed on production cap In details about the alleged conspiracy, the DOJ said executives from CIMC, Dong Fang, and CXIC, as well as an alleged unnamed co-conspirator, met at CIMC’s headquarters in Shenzhen in November 2019. The executives allegedly agreed to four measures limiting output of dry freight containers, including restricting the number of shifts and hours each factory worked, installing surveillance cameras on all production lines to ensure the agreed-upon limitations were not exceeded, and not building any new container-making factories. DOJ alleges the executives later refined the pact to restrict how many dry containers the companies would manufacture for particular customers, including container lessors, shipping lines and logistics companies in the US, Europe, China and elsewhere, while also capping total container production. “Global price-fixing cartels strike at the heart of our economic liberty,” Omeed Assefi, DOJ’s acting assistant attorney general, said in the statement. “The defendants held hostage the world’s supply of ocean shipping containers during the COVID pandemic when our supply chains needed it the most.” The indictments come just one week after US President Donald Trump traveled to China for meetings with Chinese President Xi Jinping. Washington and Beijing have also been at odds over the past year regarding what the US sees as China’s outsized influence in Panama Canal operations , with that coming amid the wider trade spat that saw the US imposing tariffs on China-made products and Beijing responding in kind. Contact Keith Wallis at keithwallis@hotmail.com .

Transport, Trade and Regulation News

Supply chain

US move against container makers is latest entry in logistics battle with China

<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.

<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 second-quarter results. Israel-based Zim recorded a diluted per-share loss of 71 cents for the quarter. That compares with 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 first-quarter 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 Middle East 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 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 second-quarter results. Israel-based Zim recorded a diluted per-share loss of 71 cents for the quarter. That compares with 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 first-quarter 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 Middle East 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 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 .

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 about £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 about £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 .

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

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