<div class="phx-topic abstract-wrapper">Merger will create the world's fifth-largest container line.</div>

Merger will create the world's fifth-largest container line.

<div>LONDON – The European Commission on Wednesday conditionally approved a merger between Hapag-Lloyd and United Arab Shipping Co., creating the world’s fifth-largest ocean container carrier.The clearance hinges on UASC pulling out of a consortium on the trade route connecting northern Europe and North America, which the European Union said the “merged entity would have faced insufficient competitive constraint.” "European companies rely on container liner shipping for their trans-Atlantic shipments. It’s very important that the markets remain open,” EU Competition Commissioner Margrethe Vestager said. “The commitments offered by Hapag-Lloyd ensure that the takeover will not lead to price increases on the...

LONDON – The European Commission on Wednesday conditionally approved a merger between Hapag-Lloyd and United Arab Shipping Co., creating the world’s fifth-largest ocean container carrier. The clearance hinges on UASC pulling out of a consortium on the trade route connecting northern Europe and North America, which the European Union said the “merged entity would have faced insufficient competitive constraint.” "European companies rely on container liner shipping for their trans-Atlantic shipments. It’s very important that the markets remain open,” EU Competition Commissioner Margrethe Vestager said. “The commitments offered by Hapag-Lloyd ensure that the takeover will not lead to price increases on the routes between northern Europe and North America.” The commission said the merger, as initially notified, would have created links on the northern Europe-North America trade routes between the consortia and alliance in which Hapag-Lloyd is a member and the NEU1 consortium in which UASC is a member. “As a result, through the consortia and alliances it would belong to, the merged entity could have influenced capacity and prices on a very large part of those markets, to the detriment of customers and, ultimately, consumers.” Hapag-Lloyd offered to terminate UASC’s participation in the NEU1 consortium, and as a result, the merged carrier’s position on these trade routes will be comparable to that of Hapag-Lloyd today, the commission said. Although UASC will continue to operate as part of the NEU1 consortium during the notice period to guarantee an orderly exit, a monitoring trustee will ensure that no anti-competitive information is shared between the consortium and the merged carrier during the notice period. The merged carrier will have a capacity of about 1.6 million TEUs and a global market share of around 7 percent. Contact Bruce Barnard at brucebarnard47@hotmail.com .

Container lines

EU approves Hapag-Lloyd-UASC merger

<div class="phx-topic abstract-wrapper">The carrier said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy.</div>

The carrier said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy.

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<div class="phx-topic">Trade patterns shifting from global to more regional in nature partly due to changing tariff policies could offset the impact of US port charges on Chinese carriers, Hong Kong-listed Orient Overseas (International) said Thursday. That market segmentation, coupled with extended or restructured supply chains, could create new opportunities for shipping companies to refine their strategies, the company said in an interim earnings statement. The subsidiary of Cosco Shipping Holdings said US port charges that start on Oct. 14 “will have a relatively large impact” on its units, including carrier OOCL and OOCL Logistics. OOIL gave no details, but based on the current proposal from the US Trade Representative (USTR), 10,000 net ton ships such as the 13,000-TEU OOCL Poland, deployed on OOCL’s Pacific China Central 1 service, will pay $3.5 million in the first year. That will rise to $9.8 million in 2028 when the levy climbs to $140 per net ton. OOIL said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy. “As a result, many customers seem to have started to shift away from their precautious strategy of frontloading earlier this year to a more cautious, wait-and-see approach,” it said. Despite the challenges “our vessels sailing on major long-haul routes are nearly fully loaded, and this is expected to continue in the coming weeks,” the carrier said. <h3>OOIL H1 net profit up 15%</h3>While the trans-Pacific was OOCL’s biggest revenue earner in the first half of 2025, contributing $1.6 billion out of total liner revenues of $4.4 billion, the carrier faced increased competition. On the eastbound trans-Pacific headhaul, liftings increased 8%, but revenue per TEU fell 12% and overall revenue decreased 5%. Overall, OOIL saw net profit increase 15% to $954 million in the first six months compared with the year prior, of which 99% was contributed by OOCL and OOCL Logistics. Revenue rose 6.5% to $4.9 billion OOCL’s total liftings for the first half increased 7% to 4 million TEUs. “Despite being only a single-digit improvement, the year-on year performance is the best post-pandemic period in terms of both liftings and liner revenue,” OOIL said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Trade patterns shifting from global to more regional in nature partly due to changing tariff policies could offset the impact of US port charges on Chinese carriers, Hong Kong-listed Orient Overseas (International) said Thursday. That market segmentation, coupled with extended or restructured supply chains, could create new opportunities for shipping companies to refine their strategies, the company said in an interim earnings statement. The subsidiary of Cosco Shipping Holdings said US port charges that start on Oct. 14 “will have a relatively large impact” on its units, including carrier OOCL and OOCL Logistics. OOIL gave no details, but based on the current proposal from the US Trade Representative (USTR), 10,000 net ton ships such as the 13,000-TEU OOCL Poland, deployed on OOCL’s Pacific China Central 1 service, will pay $3.5 million in the first year. That will rise to $9.8 million in 2028 when the levy climbs to $140 per net ton. OOIL said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy. “As a result, many customers seem to have started to shift away from their precautious strategy of frontloading earlier this year to a more cautious, wait-and-see approach,” it said. Despite the challenges “our vessels sailing on major long-haul routes are nearly fully loaded, and this is expected to continue in the coming weeks,” the carrier said. OOIL H1 net profit up 15% While the trans-Pacific was OOCL’s biggest revenue earner in the first half of 2025, contributing $1.6 billion out of total liner revenues of $4.4 billion, the carrier faced increased competition. On the eastbound trans-Pacific headhaul, liftings increased 8%, but revenue per TEU fell 12% and overall revenue decreased 5%. Overall, OOIL saw net profit increase 15% to $954 million in the first six months compared with the year prior, of which 99% was contributed by OOCL and OOCL Logistics. Revenue rose 6.5% to $4.9 billion OOCL’s total liftings for the first half increased 7% to 4 million TEUs. “Despite being only a single-digit improvement, the year-on year performance is the best post-pandemic period in terms of both liftings and liner revenue,” OOIL said. Contact Keith Wallis at keithwallis@hotmail.com.

Container Shipping News

Trans-Pacific

Maritime

Tariff-linked trade pattern shifts could offset impact of US port fees: OOIL

<div class="phx-topic abstract-wrapper">Just over 7,000 TEUs of capacity is scheduled to be withdrawn through blank sailings in September even as carriers increase their deployed capacity by 2%.</div>

Just over 7,000 TEUs of capacity is scheduled to be withdrawn through blank sailings in September even as carriers increase their deployed capacity by 2%.

<div class="phx-topic">Rates on the trans-Atlantic westbound ocean trade — a route dominated by Gemini Cooperation and Mediterranean Shipping Co. (MSC) — have been stuck at loss-making levels for weeks, yet carriers are showing little appetite for blank sailings to raise prices. Spot rates assessed by Platts, a sister company of the Journal of Commerce, are at $1,600 per FEU this week, far below the breakeven level ocean carriers say is around $2,100/FEU. Rates have lost only $100 since mid-May. While carriers on the North Europe-US East Coast route are scheduled to increase deployed capacity to 376,132 TEUs in September, up 2% compared to August, just 7,349 TEUs in capacity will be withdrawn via blank sailings, according to data from rate benchmarking platform Xeneta. However, Destine Ozuygur, product marketing manager for Xeneta, cautioned about reading too much into the low blank sailings levels. “Blanks used to be a standard measure against persistent demand deficit, but it’s also become a widely used tool for ad-hoc reliability management,” Ozuygur said. “Carriers are far more comfortable admitting them into schedules in the short-term, and repealing them, than they used to be. ”Regardless of the tariff or rate environment, we would naturally expect at least a few more blanks to trickle in over the coming weeks,” she added. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="004f46ea-f9b5-4bd8-96be-a0146f19f1f0"></dynamic-object></div>The restructured ocean alliances have adjusted market share on the trans-Atlantic, leaving the trade lane dominated by MSC and Gemini partners Maersk and Hapag-Lloyd. Data from Alphaliner shows that after splitting from its 2M partner Maersk, MSC increased its Atlantic market share from 41.1% to 41.8% over the 12 months from July 2024 to July 2025. MSC now deploys a fleet of more than 500,000 TEUs between Europe and North America. Hapag-Lloyd remains the second-largest carrier in the trade, but its market share of 14.9% is significantly lower than the 19.6% share it held in July 2024. Hapag-Lloyd's Gemini-partner Maersk increased its market share from 8.9% in July last year to 14.4% this year. “With the absence of both Ocean Alliance and Premier Alliance on this trade, reliability is largely left to Gemini, MSC and the non-alliances services,” said Ozuygur. Despite a lack of wider carrier representation, the present incumbents are not exactly setting reliability records. North Europe to US East Coast schedule reliability in July was 38%, a dismal level by any measure, although still a significant improvement on January’s 24%, Xeneta data showed. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="face521b-d4c4-40cd-b809-f10a6707a371"></dynamic-object></div>Some of the blame can be attributed to ongoing European port congestion that slows vessel turnarounds, which on the relatively short transits across the Atlantic “adds another layer of constraint and reduces effective service frequency,” C.H. Robinson noted in a recent market update. <h3>Addressing a new tariff landscape </h3>The schedule reliability and capacity deployed through the rest of the year will likely depend on how demand shapes up in the new trans-Atlantic tariff landscape. In a July 27 deal, a 15% tariff was applied to most EU goods exported to the US instead of the 30% tariff President Donald Trump had previously threatened, <a href="https://www.joc.com/article/trans-atlantic-trade-dispute-averted-as-us-eu-reach-weekend-deal-6051144">averting a destructive trade war</a>. The deal included provisions for zero tariffs on certain US exports to the EU and left the door open for negotiations on further market access. Frontloading in June as US-EU trade tensions escalated saw North Europe to US East Coast volume grow 14.2% year over year to almost 200,000 TEUs, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. It was short-lived, however, with July volume sliding to 198,750 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="808b5499-12f0-4682-8df3-9427d1d05738"></dynamic-object></div>Most observers believe the 15% tariff, while significantly higher than the pre-deal tariffs of around 4.8%, is not high enough to create a material change in shipper behavior on the trans-Atlantic. But Emily Stausbøll, senior analyst at Xeneta, said while 15% was more manageable than the threatened 30%, it was expected to keep demand muted considering frontloading in Q2 has left fewer goods needing to be moved over the rest of the year. “We are still in a waiting period before we see the real effects of tariffs on prices and US consumer demand, with frontloading and retailers absorbing some of these extra costs,” Stausbøll told the Journal of Commerce. “But at some point, this will be passed on and should lower demand on this trade over the longer term.” The “wait-and-see” approach was also highlighted by an executive from one of the ocean carriers on the trans-Atlantic who said the market did not seem to have been heavily affected by the tariffs. “There have been clients taking a wait-and-see approach and others adding some shipments, but that is not having a major impact on the trade route, partly due to tariffs not being high enough to affect trade flows,” the carrier executive said, adding that the trade lane was expected to “settle without much change.” Xeneta’s Ozuygur agreed that shippers were taking a wait-and-see approach, noting that after the trade agreement, the trans-Atlantic was on a more stable and positive footing than during the volatile buildup to the deal. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Rates on the trans-Atlantic westbound ocean trade — a route dominated by Gemini Cooperation and Mediterranean Shipping Co. (MSC) — have been stuck at loss-making levels for weeks, yet carriers are showing little appetite for blank sailings to raise prices. Spot rates assessed by Platts, a sister company of the Journal of Commerce, are at $1,600 per FEU this week, far below the breakeven level ocean carriers say is around $2,100/FEU. Rates have lost only $100 since mid-May. While carriers on the North Europe-US East Coast route are scheduled to increase deployed capacity to 376,132 TEUs in September, up 2% compared to August, just 7,349 TEUs in capacity will be withdrawn via blank sailings, according to data from rate benchmarking platform Xeneta. However, Destine Ozuygur, product marketing manager for Xeneta, cautioned about reading too much into the low blank sailings levels. “Blanks used to be a standard measure against persistent demand deficit, but it’s also become a widely used tool for ad-hoc reliability management,” Ozuygur said. “Carriers are far more comfortable admitting them into schedules in the short-term, and repealing them, than they used to be. ”Regardless of the tariff or rate environment, we would naturally expect at least a few more blanks to trickle in over the coming weeks,” she added. The restructured ocean alliances have adjusted market share on the trans-Atlantic, leaving the trade lane dominated by MSC and Gemini partners Maersk and Hapag-Lloyd. Data from Alphaliner shows that after splitting from its 2M partner Maersk, MSC increased its Atlantic market share from 41.1% to 41.8% over the 12 months from July 2024 to July 2025. MSC now deploys a fleet of more than 500,000 TEUs between Europe and North America. Hapag-Lloyd remains the second-largest carrier in the trade, but its market share of 14.9% is significantly lower than the 19.6% share it held in July 2024. Hapag-Lloyd's Gemini-partner Maersk increased its market share from 8.9% in July last year to 14.4% this year. “With the absence of both Ocean Alliance and Premier Alliance on this trade, reliability is largely left to Gemini, MSC and the non-alliances services,” said Ozuygur. Despite a lack of wider carrier representation, the present incumbents are not exactly setting reliability records. North Europe to US East Coast schedule reliability in July was 38%, a dismal level by any measure, although still a significant improvement on January’s 24%, Xeneta data showed. Some of the blame can be attributed to ongoing European port congestion that slows vessel turnarounds, which on the relatively short transits across the Atlantic “adds another layer of constraint and reduces effective service frequency,” C.H. Robinson noted in a recent market update. Addressing a new tariff landscape The schedule reliability and capacity deployed through the rest of the year will likely depend on how demand shapes up in the new trans-Atlantic tariff landscape. In a July 27 deal, a 15% tariff was applied to most EU goods exported to the US instead of the 30% tariff President Donald Trump had previously threatened, averting a destructive trade war . The deal included provisions for zero tariffs on certain US exports to the EU and left the door open for negotiations on further market access. Frontloading in June as US-EU trade tensions escalated saw North Europe to US East Coast volume grow 14.2% year over year to almost 200,000 TEUs, according to PIERS, a sister product of the Journal of Commerce within S&P Global. It was short-lived, however, with July volume sliding to 198,750 TEUs. Most observers believe the 15% tariff, while significantly higher than the pre-deal tariffs of around 4.8%, is not high enough to create a material change in shipper behavior on the trans-Atlantic. But Emily Stausbøll, senior analyst at Xeneta, said while 15% was more manageable than the threatened 30%, it was expected to keep demand muted considering frontloading in Q2 has left fewer goods needing to be moved over the rest of the year. “We are still in a waiting period before we see the real effects of tariffs on prices and US consumer demand, with frontloading and retailers absorbing some of these extra costs,” Stausbøll told the Journal of Commerce. “But at some point, this will be passed on and should lower demand on this trade over the longer term.” The “wait-and-see” approach was also highlighted by an executive from one of the ocean carriers on the trans-Atlantic who said the market did not seem to have been heavily affected by the tariffs. “There have been clients taking a wait-and-see approach and others adding some shipments, but that is not having a major impact on the trade route, partly due to tariffs not being high enough to affect trade flows,” the carrier executive said, adding that the trade lane was expected to “settle without much change.” Xeneta’s Ozuygur agreed that shippers were taking a wait-and-see approach, noting that after the trade agreement, the trans-Atlantic was on a more stable and positive footing than during the volatile buildup to the deal. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Trans-Atlantic carriers limit capacity cuts despite ongoing rate weakness

<div class="phx-topic abstract-wrapper">With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades, writes Jeremy Masters. </div>

With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades, writes Jeremy Masters.

<div class="phx-topic">In <a href="https://www.joc.com/article/high-variance-exists-in-carriers-cross-trade-products-6045899">my column of July 18</a>, we looked at the wide range of transshipment services that the top five operators are offering in non-core trades. At some point in the life of these trades, carriers will consider whether there is sufficient promise to deploy direct services. There are a number of motivations behind this. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6066828_0.1.jpg"></img></div>Carriers will want to have first-mover advantage. Transshipment — particularly between two deep-sea services — can produce very variable products. Carriers offering a direct service will have the chance to establish pole position. Secondly, those with suitable tonnage will see an opportunity. Some of the carriers’ raids of small- to mid-range tonnage in the second-hand markets (plus ongoing delivery of newbuilds) will have greater flexibility in feeder, regional and developing trades to upgrade from transshipment without swamping a trade with big ships. Finally, with all the capacity injections, both current and future, a glut beckons that will bring rates down on a widespread basis. As ships are moveable assets, they can quickly spread overcapacity contagion from one trade to another. New direct services will certainly not be enough to swing the dial back; carriers will need to be nimble on multiple capacity-eating fronts for that. But investing in new linkages and moving overcapacity out has some attractions. <h3>‘High-potential’ trades </h3>Using Container Trade Statistics (CTS)’s extensive volume data at a granular level, we looked at several developing trades and arrived at the conclusion that there are many with high potential. In any new or expanded deployment, carriers will look at: a) the evolution of volumes in the trade and the expected utilization if they deploy a premium product; b) the evolution of rates in the trade, which in most cases will be reasonably healthy as a transshipment trade but might be impacted by an injection of new direct capacity; and c) the cost of ship, port and equipment systems, including imbalances. New direct connections are the obvious starting point, but carriers also have the possibility to link in feeder hubs and partially piggyback on other direct routes. This has the advantage of access to a wider pool of cargo and derisking developing trades that can be volatile. The <a href="https://www.joc.com/article/msc-will-expand-africa-us-trade-with-new-calls-6063823">announcement from Mediterranean Shipping Co.</a> that it will serve the US-to-West Africa trade as part of its South Africa service certainly adds one substantive trade to their direct network. But by offering the US Gulf, Mexico and parts of Central America to West Africa and South Africa off Freeport and connecting West Africa to South Africa, MSC opens up other important flows of developing business and the possibility for double-dipping. East Coast South America (ECSA) to West Africa is also emerging strongly. To serve this trade, carriers transship over the Med or North Europe with heavy diversion time. The least diverted is with MSC via Las Palmas in the Canary Islands, but that is still a combined 5,515 nautical miles ex-Rio to Abidjan in West Africa against 2,932 nautical miles direct. There are few obvious links to other trades, however, so carriers would need to be comfortable about getting critical mass just in these lanes. <h3>India-ECSA an ‘emerging trade’ </h3>A good example of an emerging trade that combines several themes is India to ECSA. There is an HMM product from Kattupalli East India to Brazil, and the big carriers have a variety of transshipment products from Northwest India via South Africa, Sri Lanka, Morocco and Singapore. Per CTS stats, volume indication from 2020 to date is as follows for India ports to ECSA TEUs: <div class="wrapper-full"><table><colgroup><col width="33.33%"></col><col width="33.33%"></col><col width="33.33%"></col></colgroup><thead><tr><th>Year</th><th class="align-right">Indian Sub Cont. to ECSA</th><th class="align-right">ECSA to Indian Sub Cont.</th></tr></thead><tbody><tr><td>2022 </td><td class="align-right">96,718 </td><td class="align-right">96,921</td></tr><tr><td>2023</td><td class="align-right">123,658</td><td class="align-right">105,835</td></tr><tr><td>2024</td><td class="align-right">149,615</td><td class="align-right">163,004</td></tr><tr><td>YTD 2025</td><td class="align-right">61,393</td><td class="align-right">89,274</td></tr></tbody><tfoot><tr><td colspan="3">Source: Container Trade Statistics</td></tr></tfoot></table></div>In addition to the positive progression in direct volumes, any carrier serving this trade naturally must go around the Cape of Good Hope, so a call at South African ports, although in competition with other direct services, offers a chance to significantly increase cargo catchment. There would, of course, be more competition in these directly linked trades, but the following 2024 annual TEUs figures illustrate the opportunity: <div class="wrapper-full"><table><colgroup><col width="50%"></col><col width="50%"></col></colgroup><tbody><tr><td>Indian Sub Cont. to Southern Africa</td><td class="align-right">123,303</td></tr><tr><td>Southern Africa to ECSA</td><td class="align-right">10,128</td></tr><tr><td>ECSA to Southern Africa</td><td class="align-right">88,017</td></tr><tr><td>Southern Africa to Indian Sub Cont.</td><td class="align-right">151,591</td></tr></tbody><tfoot><tr><td colspan="2">Source: Container Trade Statistics</td></tr></tfoot></table></div> Adding an Indian Ocean transshipment hub like Port Louis in Mauritius would offer more possibilities to mix and match markets and build a well-utilized, remunerative product. There are plenty of possibilities out there and carriers can do their homework on how trade volumes are developing. With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

In my column of July 18 , we looked at the wide range of transshipment services that the top five operators are offering in non-core trades. At some point in the life of these trades, carriers will consider whether there is sufficient promise to deploy direct services. There are a number of motivations behind this. Carriers will want to have first-mover advantage. Transshipment — particularly between two deep-sea services — can produce very variable products. Carriers offering a direct service will have the chance to establish pole position. Secondly, those with suitable tonnage will see an opportunity. Some of the carriers’ raids of small- to mid-range tonnage in the second-hand markets (plus ongoing delivery of newbuilds) will have greater flexibility in feeder, regional and developing trades to upgrade from transshipment without swamping a trade with big ships. Finally, with all the capacity injections, both current and future, a glut beckons that will bring rates down on a widespread basis. As ships are moveable assets, they can quickly spread overcapacity contagion from one trade to another. New direct services will certainly not be enough to swing the dial back; carriers will need to be nimble on multiple capacity-eating fronts for that. But investing in new linkages and moving overcapacity out has some attractions. ‘High-potential’ trades Using Container Trade Statistics (CTS)’s extensive volume data at a granular level, we looked at several developing trades and arrived at the conclusion that there are many with high potential. In any new or expanded deployment, carriers will look at: a) the evolution of volumes in the trade and the expected utilization if they deploy a premium product; b) the evolution of rates in the trade, which in most cases will be reasonably healthy as a transshipment trade but might be impacted by an injection of new direct capacity; and c) the cost of ship, port and equipment systems, including imbalances. New direct connections are the obvious starting point, but carriers also have the possibility to link in feeder hubs and partially piggyback on other direct routes. This has the advantage of access to a wider pool of cargo and derisking developing trades that can be volatile. The announcement from Mediterranean Shipping Co. that it will serve the US-to-West Africa trade as part of its South Africa service certainly adds one substantive trade to their direct network. But by offering the US Gulf, Mexico and parts of Central America to West Africa and South Africa off Freeport and connecting West Africa to South Africa, MSC opens up other important flows of developing business and the possibility for double-dipping. East Coast South America (ECSA) to West Africa is also emerging strongly. To serve this trade, carriers transship over the Med or North Europe with heavy diversion time. The least diverted is with MSC via Las Palmas in the Canary Islands, but that is still a combined 5,515 nautical miles ex-Rio to Abidjan in West Africa against 2,932 nautical miles direct. There are few obvious links to other trades, however, so carriers would need to be comfortable about getting critical mass just in these lanes. India-ECSA an ‘emerging trade’ A good example of an emerging trade that combines several themes is India to ECSA. There is an HMM product from Kattupalli East India to Brazil, and the big carriers have a variety of transshipment products from Northwest India via South Africa, Sri Lanka, Morocco and Singapore. Per CTS stats, volume indication from 2020 to date is as follows for India ports to ECSA TEUs: Year Indian Sub Cont. to ECSA ECSA to Indian Sub Cont. 2022 96,718 96,921 2023 123,658 105,835 2024 149,615 163,004 YTD 2025 61,393 89,274 Source: Container Trade Statistics In addition to the positive progression in direct volumes, any carrier serving this trade naturally must go around the Cape of Good Hope, so a call at South African ports, although in competition with other direct services, offers a chance to significantly increase cargo catchment. There would, of course, be more competition in these directly linked trades, but the following 2024 annual TEUs figures illustrate the opportunity: Indian Sub Cont. to Southern Africa 123,303 Southern Africa to ECSA 10,128 ECSA to Southern Africa 88,017 Southern Africa to Indian Sub Cont. 151,591 Source: Container Trade Statistics Adding an Indian Ocean transshipment hub like Port Louis in Mauritius would offer more possibilities to mix and match markets and build a well-utilized, remunerative product. There are plenty of possibilities out there and carriers can do their homework on how trade volumes are developing. With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

A sea of opportunities exists to swap transshipment for direct services

<div class="phx-topic abstract-wrapper">The difficulties have led to transshipment delays and rolled cargo, which have caused increased yard density at some ports that has exacerbated delays, shipping sources say. </div>

The difficulties have led to transshipment delays and rolled cargo, which have caused increased yard density at some ports that has exacerbated delays, shipping sources say.

<div class="phx-topic">Tight feeder capacity between secondary ports in Asia and the region’s main transshipment hubs are hitting both exports from Asia and imports to the region from the US and Europe, forwarders and carriers say. Shippers are having to wait up to a month to secure space on some carriers serving Thailand and Indonesia, according to forwarders who spoke with the Journal of Commerce. The difficulties have led to transshipment delays and rolled cargo, which have caused increased yard density at some ports that has exacerbated delays, shipping sources say. The problems have been compounded by bad weather, including typhoons in China, carriers said. “For Thailand, cargo bookings must be made at least three to four weeks ahead,” a spokesperson for FIBS Logistics in Singapore said. “Most bookings for Indonesian cargo are only being accepted with a minimum lead time of two to three weeks.” The spokesperson said FIBS Logistics has been impacted by the delays on its own customer shipments, with even short-haul services affected. “We need to book two to three weeks in advance for cargo from Batam, Indonesia, for connections to the mother vessel in Singapore,” the source said. "These delays are largely due to feeder capacity shortages, which are impacting both exports and imports across Asia and resulting in cargo rolling.” Forwarder Rhenus Logistics said the feeder capacity shortages began in June and have been the result of a tariff-related cargo surge from Southeast Asia. “We have been experiencing some challenges with feeder capacity out of Southeast Asia over the past three months,” Scott Dudley, Rhenus’ head of ocean freight for North America, told the Journal of Commerce. “These challenges are mainly tied to carriers and alliances operating transshipment services out of Southeast Asia cargo origins.” <h3>Carriers being particular on US export choices </h3>The disruption at transshipment hubs, including those in Asia, has led carriers to pick and choose which export cargo from the US to accept. “If it’s a direct lane, they have a very high appetite,” said M. Can Fidan, executive vice president of business development at New York-based forwarder MTS Logistics. “If it’s a transshipment or if it is off their hub-and-spoke lanes, then they are not. “So, it’s a very interesting environment where carriers are actually looking for cargo on the export, but only looking for cargo that fits their shipping model, rather than a general area,” he added. A Hong Kong-based freight forwarder said it is fortunate the disruption largely comes after the cargo rush caused by shippers consigning shipments early to beat the Trump administration’s mid-August tariff deadline. “Transshipping cargo to and from second-tier markets like Thailand, the Philippines and Vietnam is a mess right now, with cargo rolling and delays at the key hub ports,” the source said. “But it would be significantly worse if these countries hadn’t cut tariff deals with the US at the end of July.” <h3>Multiple-day delays </h3>Highlighting congestion and cargo delays at key Asian gateways, CMA CGM, Hapag-Lloyd and Kuehne + Nagel all reported disrupted operations at Singapore, Shanghai, Ningbo, Qingdao and Malaysia’s Port Klang in recent customer advisories. CMA CGM said it had up to 60,000 TEUs of transshipment cargo waiting at Singapore last week. “Overall yard density [in Singapore] is high — around 85% to 90% that is impacting overall operations productivity,” the carrier said in a trans-Pacific weekly update. CMA CGM said Singapore terminal operator PSA is rejecting port-in/port-out (PIPO) boxes and vessels that are discharging more containers than loading containers until yard density drops back to a normal level. Heavy berth congestion meant there was at least a two-day delay at all of PSA’s Singapore terminals, both CMA CGM and Kuehne + Nagel said. Shanghai is also heavily congested with a two- to three-day delay at the city center Waigaiqiao terminals and up to a four-day wait at the deepwater Yangshan terminals due to continuing disruption caused by the port’s closure during Typhoon Co-May at the end of July, carriers said. The typhoon was one of three tropical storms to disrupt port operations in eastern and southern China since mid-July. Hapag-Lloyd said vessels are having to wait up to three days to berth at Ningbo due to the bunching of vessels and up to two days at Qingdao. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Tight feeder capacity between secondary ports in Asia and the region’s main transshipment hubs are hitting both exports from Asia and imports to the region from the US and Europe, forwarders and carriers say. Shippers are having to wait up to a month to secure space on some carriers serving Thailand and Indonesia, according to forwarders who spoke with the Journal of Commerce. The difficulties have led to transshipment delays and rolled cargo, which have caused increased yard density at some ports that has exacerbated delays, shipping sources say. The problems have been compounded by bad weather, including typhoons in China, carriers said. “For Thailand, cargo bookings must be made at least three to four weeks ahead,” a spokesperson for FIBS Logistics in Singapore said. “Most bookings for Indonesian cargo are only being accepted with a minimum lead time of two to three weeks.” The spokesperson said FIBS Logistics has been impacted by the delays on its own customer shipments, with even short-haul services affected. “We need to book two to three weeks in advance for cargo from Batam, Indonesia, for connections to the mother vessel in Singapore,” the source said. "These delays are largely due to feeder capacity shortages, which are impacting both exports and imports across Asia and resulting in cargo rolling.” Forwarder Rhenus Logistics said the feeder capacity shortages began in June and have been the result of a tariff-related cargo surge from Southeast Asia. “We have been experiencing some challenges with feeder capacity out of Southeast Asia over the past three months,” Scott Dudley, Rhenus’ head of ocean freight for North America, told the Journal of Commerce. “These challenges are mainly tied to carriers and alliances operating transshipment services out of Southeast Asia cargo origins.” Carriers being particular on US export choices The disruption at transshipment hubs, including those in Asia, has led carriers to pick and choose which export cargo from the US to accept. “If it’s a direct lane, they have a very high appetite,” said M. Can Fidan, executive vice president of business development at New York-based forwarder MTS Logistics. “If it’s a transshipment or if it is off their hub-and-spoke lanes, then they are not. “So, it’s a very interesting environment where carriers are actually looking for cargo on the export, but only looking for cargo that fits their shipping model, rather than a general area,” he added. A Hong Kong-based freight forwarder said it is fortunate the disruption largely comes after the cargo rush caused by shippers consigning shipments early to beat the Trump administration’s mid-August tariff deadline. “Transshipping cargo to and from second-tier markets like Thailand, the Philippines and Vietnam is a mess right now, with cargo rolling and delays at the key hub ports,” the source said. “But it would be significantly worse if these countries hadn’t cut tariff deals with the US at the end of July.” Multiple-day delays Highlighting congestion and cargo delays at key Asian gateways, CMA CGM, Hapag-Lloyd and Kuehne + Nagel all reported disrupted operations at Singapore, Shanghai, Ningbo, Qingdao and Malaysia’s Port Klang in recent customer advisories. CMA CGM said it had up to 60,000 TEUs of transshipment cargo waiting at Singapore last week. “Overall yard density [in Singapore] is high — around 85% to 90% that is impacting overall operations productivity,” the carrier said in a trans-Pacific weekly update. CMA CGM said Singapore terminal operator PSA is rejecting port-in/port-out (PIPO) boxes and vessels that are discharging more containers than loading containers until yard density drops back to a normal level. Heavy berth congestion meant there was at least a two-day delay at all of PSA’s Singapore terminals, both CMA CGM and Kuehne + Nagel said. Shanghai is also heavily congested with a two- to three-day delay at the city center Waigaiqiao terminals and up to a four-day wait at the deepwater Yangshan terminals due to continuing disruption caused by the port’s closure during Typhoon Co-May at the end of July, carriers said. The typhoon was one of three tropical storms to disrupt port operations in eastern and southern China since mid-July. Hapag-Lloyd said vessels are having to wait up to three days to berth at Ningbo due to the bunching of vessels and up to two days at Qingdao. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

Tight Asia feeder capacity causing disruption for export, import shippers

<div class="phx-topic abstract-wrapper">The incident has sparked a wave of claim filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far.</div>

The incident has sparked a wave of claim filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far.

<div class="phx-topic">Mediterranean Shipping Co. is facing escalating legal pushback in India over a total loss declared for the MSC Elsa 3 that capsized off Cochin Port on May 25 with 643 containers on board, including 13 boxes reportedly containing loads classed as hazardous/dangerous goods. The incident, apparently caused by mechanical problems on the ship, has sparked a wave of claim suit filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far — MSC Manasa F, MSC Polo II, MSC Akiteta II, MSC Palermo and MSC Makoto II — at Vizhinjam Port in southern India. Geneva-based MSC is the primary mainline customer of Vizhinjam, an emerging container transshipment hub managed by Indian port infrastructure conglomerate Adani Ports. Notably, the 2024-built MSC Palermo, able to carry 15,574 TEUs, is part of MSC’s premier Himalaya Express (HEX) network on the India-Europe/Mediterranean trades. Vizhinjam was added to the HEX rotation as a regular stop in June this year, complementing the weekly loop’s long-time port calls at Nhava Sheva and Mundra. The carrier is said to have secured the release of three detained ships after furnishing security deposits and/or guarantees requiring compliance. But court action in response to a state admiralty suit seeking over $1 billion in damages toward the wider environmental impact has left the 2,226-TEU MSC Akiteta II, used for MSC’s regional shuttle operations, stranded at Vizhinjam since early July. MSC did not respond to requests for comment. The MSC Elsa 3 casualty exposure is not limited to India. Sri Lanka is believed to be considering suing the carrier to seek compensatory damages for debris that washed onto its waterfront. As the implications amplify, MSC has filed a counter lawsuit seeking to limit its overall liability to $14 million, citing certain provisions of the Indian merchant shipping legislation and protocols of the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC), sources say. MSC is the largest container carrier out of India, with growing landside investment interests that include terminal partnerships with Adani at Mundra and Ennore (Chennai). Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Mediterranean Shipping Co. is facing escalating legal pushback in India over a total loss declared for the MSC Elsa 3 that capsized off Cochin Port on May 25 with 643 containers on board, including 13 boxes reportedly containing loads classed as hazardous/dangerous goods. The incident, apparently caused by mechanical problems on the ship, has sparked a wave of claim suit filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far — MSC Manasa F, MSC Polo II, MSC Akiteta II, MSC Palermo and MSC Makoto II — at Vizhinjam Port in southern India. Geneva-based MSC is the primary mainline customer of Vizhinjam, an emerging container transshipment hub managed by Indian port infrastructure conglomerate Adani Ports. Notably, the 2024-built MSC Palermo, able to carry 15,574 TEUs, is part of MSC’s premier Himalaya Express (HEX) network on the India-Europe/Mediterranean trades. Vizhinjam was added to the HEX rotation as a regular stop in June this year, complementing the weekly loop’s long-time port calls at Nhava Sheva and Mundra. The carrier is said to have secured the release of three detained ships after furnishing security deposits and/or guarantees requiring compliance. But court action in response to a state admiralty suit seeking over $1 billion in damages toward the wider environmental impact has left the 2,226-TEU MSC Akiteta II, used for MSC’s regional shuttle operations, stranded at Vizhinjam since early July. MSC did not respond to requests for comment. The MSC Elsa 3 casualty exposure is not limited to India. Sri Lanka is believed to be considering suing the carrier to seek compensatory damages for debris that washed onto its waterfront. As the implications amplify, MSC has filed a counter lawsuit seeking to limit its overall liability to $14 million, citing certain provisions of the Indian merchant shipping legislation and protocols of the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC), sources say. MSC is the largest container carrier out of India, with growing landside investment interests that include terminal partnerships with Adani at Mundra and Ennore (Chennai). Contact Bency Mathew at bencyvmathew@gmail.com .

MSC’s legal woes escalate in India after late-May ship capsizing

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. 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These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. 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