<div class="phx-topic abstract-wrapper">Retailers and forwarders in the eastbound trans-Pacific are facing an unusual dichotomy in which spot rates continue to deteriorate even though monthly import volumes from Asia remain at record or near-record levels.</div>

Retailers and forwarders in the eastbound trans-Pacific are facing an unusual dichotomy in which spot rates continue to deteriorate even though monthly import volumes from Asia remain at record or near-record levels.

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<div>With peak season cargo volumes already at North American ports or on the water, forwarders expect eastbound trans-Pacific container spot rates — now at their lowest since June 2021 — to continue easing through the rest of the year.Drewry’s Shanghai–Los Angeles spot rate reached $7,199 per FEU as of July 28, down from $10,520 per FEU on Jan. 1 but still well more than double the spot rate of $2,934 per FEU in July 2020.Yet despite Asia imports that hit a record for June, and retailer forecasts of near-record imports in the second half of the year, forwarders report greater...

With peak season cargo volumes already at North American ports or on the water, forwarders expect eastbound trans-Pacific container spot rates — now at their lowest since June 2021 — to continue easing through the rest of the year. Drewry’s Shanghai–Los Angeles spot rate reached $7,199 per FEU as of July 28, down from $10,520 per FEU on Jan. 1 but still well more than double the spot rate of $2,934 per FEU in July 2020. Yet despite Asia imports that hit a record for June, and retailer forecasts of near-record imports in the second half of the year, forwarders report greater loosening of capacity on some trades. And while booking volumes are still rising in the aggregate, forwarders say some shippers are curbing or even outright cancelling orders. “We expect inventory by year-end to be approximately flat year over year, and to see reductions in on-hand supply by the end of Q3,” toy maker Hasbro said in its earning statement this week. US import booking demand, as tracked by E2open, eased in July. Average weekly volume booked was down approximately 13 percent for the month compared with the weekly average year to date, according to E2open, a software provider to large shippers and logistics providers. “My guess is brands are slowing down or canceling planned orders for two reasons: the global economic crisis and an anticipated recession, and a potential backlog of inventory with a lack of storage,” said Gary Barraco, assistant vice president of product marketing at E2open Click to enlarge . Importers generally need to send new purchase orders to factories in Asia by mid-August to receive items before Black Friday in late November, the official kickoff of the holiday retail shopping season. According to forwarders and industry analysts, if orders do not pick up noticeably in August, there will be no surge in imports in September and October, traditionally two of the busiest months of the year. Return to traditional service contract negotiations? Last year, carriers began their 2022-23 service contract negotiations with their largest customers in November and December to leverage the extremely high spot rate levels at the time. Most of the service contracts with large retailers had been signed by March. With spot rates expected to drift lower at least through the end of 2022, negotiations for the 2023–24 service contracts may follow the more traditional timeline of beginning in March and ending in early May. “The decline in spot rates has been quite drastic,” said Shabsie Levy, CEO and founder of digital freight forwarder Shifl. “This year alone, the spot rates have dropped 56 percent from January 2022 until May 2022 for the USWC [West Coast] and 53 percent on the USEC [East Coast] for the same period.” Container spot rates on four major indices — produced by Drewry, Freightos, the Shanghai Containerized Freight Index, and Xeneta — show that rates have fallen to levels not seen in more than a year. The current dichotomy in the trans-Pacific of spot rates continuing to sink even as imports from Asia each month are at record or near-record levels is due to the placement of purchase orders with factories in Asia six to nine months ago, when economic conditions in the US were more robust than they are today, according to logistics managers. Fearing a repeat of last year, when a fair amount of their fall and holiday merchandise arrived late in — or after — the shopping season due to supply chain bottlenecks, retailers this year placed their fall merchandise orders six to nine months ahead of the shipment dates rather than the normal three months, said Scott Weiss, vice president of technical sales at the forwarder Performance Team. “They ordered what was selling well at the time,” Weiss said. That fall and holiday merchandise is now sitting in warehouses, filling them to capacity. With rising inflation and high gasoline prices to contend with, consumers are now pulling back on retail purchases. “The inventory buildup is real,” said Jack Chang, a transportation consultant. Many retailers last year missed holiday sales because their merchandise was delayed due to supply chain bottlenecks, so this year they pulled product forward and over-ordered, Chang said. Demand varies by product Logistics managers say that in the current economic environment, import volumes must be viewed on a product-by-product basis. Christian Sur, executive vice president of ocean freight and contract logistics at Unique Logistics International, said apparel imports are “steady” and auto parts imports are strong, but home appliance and furniture imports are down. The logistics manager at a furniture retailer who did not want to be identified said his import levels are down 20 to 25 percent this year, and he expects that to continue if the housing market continues to cool. Generally, the big-box retailers that sell a wide variety of household products that consumers need every day have not pulled back on orders and continue to restock their inventories, said Weston LaBar, head of strategy at Cargomatic, which manages freight movement from 20 US ports to the final destinations. “We haven’t seen any dip due to a change in orders,” LaBar said. “There are still certain commodities that people want.” Still, with the 2023 back-to-school merchandise already on store shelves, and much of the fall and holiday merchandise already having been shipped from Asia, logistics managers and non-vessel-operating common carriers (NVOs) say any hope by carriers for a strong peak shipping season — and a reversal in spot rates — is fading fast. “It’s a relatively muted market, and rates reflect that,” said Jon Monroe, a consultant to NVOs. “The peak is over,” said Michael Braun, vice president of customer solutions at the ocean and air freight rate benchmarking firm Xeneta. Xeneta’s West Coast spot rate index, which peaked at $9,177 per FEU on March 3, was down to $6,677 per FEU this week. Continued softening of spot rates expected Braun, who sees spot rates continuing to drift lower for the rest of the year, does not anticipate that carriers will begin to seriously blank sailings and risk losing freight opportunities to competitors. With West Coast spot rates still three times the $2,000 per FEU level prior to the COVID-19 pandemic, carriers continue to realize strong margins, he said. Brian Bourke, chief growth officer at forwarder SEKO Logistics, said he does not expect spot rates to return to their pre-pandemic averages. “Rates aren’t going to go down to pre-2019 levels,” he said. “We advise our clients not to expect rate levels to revert to pre-pandemic levels any time in the medium, short, or long term. And that’s important for shippers to take into consideration as they even start to think about next year’s budgets already.” Although spot rates from Asia to the US East Coast this year have also declined from last fall’s lofty levels, the drop has not been nearly as dramatic as in rates to the West Coast. That’s because national retailers this year have shifted some of their West Coast volumes to the East Coast in case labor disruptions should occur linked to the ongoing contract negotiations between dockworkers and marine terminal employers. According to Drewry, the Shanghai to New York–New Jersey spot rate last week was $9,842 per FEU, down from $11,872 per FEU in the same week last year and an all-time high of $16,138 per FEU in September 2021. With West Coast spot rates under greater pressure, the spread between the East and West Coast rates is now $2,562 per FEU, according to Drewry. Before the pandemic-driven supply chain disruptions, the spread was about $1,000 per FEU. JOC Analyst Cathy Roberson contributed to this report. Contact Bill Mongelluzzo at bill.mongelluzzo@ihsmarkit.com and follow him on Twitter: @billmongelluzzo .

Container lines

Falling spot rates, strong imports give rise to trans-Pac disconnect

<div class="phx-topic abstract-wrapper">Carriers have responded by adjusting schedules and blanking sailings, but the capacity management has so far failed to hold up prices on the trade lane.</div>

Carriers have responded by adjusting schedules and blanking sailings, but the capacity management has so far failed to hold up prices on the trade lane.

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<div class="phx-topic">The spot market on the Asia-Europe ocean trade continues to decline as carriers battle to overcome a growing capacity overhang despite reports of solid demand through the summer and ongoing port congestion in Europe. While carriers have responded by adjusting schedules and blanking sailings on routes to both North Europe and the Mediterranean, pulling the capacity management levers has not yet been able to slow the steadily falling rates. Hapag-Lloyd CEO Rolf Habben Jansen told analysts during a first-half earnings call Thursday that bookings on Asia-Europe remain “robust.” And although rates were falling, he described that as normal for this time of year. “Sometimes the peak season ends a little bit early, and right now it looks like we won't see a strong peak running up to the end of September,” the CEO said. “Volumes into Europe have been pretty steady, and bookings are still robust, but we now need to see what happens in the coming couple of weeks.” Asia to North Europe spot rates of $2,700 per FEU this week are half the level recorded at the beginning of January and have fallen 15% in the past two months, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Asia-Mediterranean rates have been on an even more dramatic slide, falling 44% in the past two months to this week’s price of $2,600/FEU, also a decline of 50% compared to the first week of January. “Carriers face an immense challenge in preventing freight rates from falling further against the backdrop of significant overcapacity in the global fleet,” Emily Stausbøll, senior analyst at rate benchmarking platform Xeneta, noted in a recent market update “It is unlikely the Red Sea will open up to container shipping at large during 2025, but in this scenario the challenge facing carriers in managing capacity would increase exponentially,” she added. <h3>Conservative capacity cuts </h3>The orderbook is currently at 9.3 million TEUs, or 29% of the in-service container shipping fleet, according to Sea-web, a sister company of the Journal of Commerce. Just over 1.2 million TEUs of vessels above 14,501 TEUs are expected to be delivered this year, mostly for Asia-Europe, while just 91,000 TEUs will be scrapped. Carriers are blanking sailings in an attempt to slow the rate decline, but remain surprisingly conservative in their capacity withdrawals. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="eebb48eb-ad03-4e0f-a647-67693692edb4"></dynamic-object></div>Asia-North Europe carriers will deploy 1.1 million TEUs in capacity in August while blanking 94,470 TEUs, down from the 120,000 TEUs blanked in July, data from visibility provider eeSea shows. Capacity available in September will drop to just over 1 million TEUs, with blank sailings of 42,601 TEUs. Destine Ozuygur, chief analyst at eeSea, said the persistent port congestion in Europe could be contributing to carriers announcing fewer blanks during August and September on Asia-North Europe. ”Blanks last August accounted for about 13% of planned calls, and 15% of total planned calls in September, while this year it shapes up to 11% of planned calls in August and just 6% in September,” Ozuygur told the Journal of Commerce. C.H. Robinson advised Asia-Europe shippers in a recent market update to continue booking space three to four weeks ahead, as August capacity was expected to remain tight despite demand softening in some segments. “The combination of port congestion and deliberate capacity cuts favors advance planning over spot market strategies,” the forwarder noted. Schedule reliability data for the Asia-North Europe trade lane reveals the impact of the port bottlenecks. After reaching a 2025 high of 45% in May, on-time performance on the trade lane in July was 28%, according to eeSea. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The spot market on the Asia-Europe ocean trade continues to decline as carriers battle to overcome a growing capacity overhang despite reports of solid demand through the summer and ongoing port congestion in Europe. While carriers have responded by adjusting schedules and blanking sailings on routes to both North Europe and the Mediterranean, pulling the capacity management levers has not yet been able to slow the steadily falling rates. Hapag-Lloyd CEO Rolf Habben Jansen told analysts during a first-half earnings call Thursday that bookings on Asia-Europe remain “robust.” And although rates were falling, he described that as normal for this time of year. “Sometimes the peak season ends a little bit early, and right now it looks like we won't see a strong peak running up to the end of September,” the CEO said. “Volumes into Europe have been pretty steady, and bookings are still robust, but we now need to see what happens in the coming couple of weeks.” Asia to North Europe spot rates of $2,700 per FEU this week are half the level recorded at the beginning of January and have fallen 15% in the past two months, according to Platts, a sister company of the Journal of Commerce within S&P Global. Asia-Mediterranean rates have been on an even more dramatic slide, falling 44% in the past two months to this week’s price of $2,600/FEU, also a decline of 50% compared to the first week of January. “Carriers face an immense challenge in preventing freight rates from falling further against the backdrop of significant overcapacity in the global fleet,” Emily Stausbøll, senior analyst at rate benchmarking platform Xeneta, noted in a recent market update “It is unlikely the Red Sea will open up to container shipping at large during 2025, but in this scenario the challenge facing carriers in managing capacity would increase exponentially,” she added. Conservative capacity cuts The orderbook is currently at 9.3 million TEUs, or 29% of the in-service container shipping fleet, according to Sea-web, a sister company of the Journal of Commerce. Just over 1.2 million TEUs of vessels above 14,501 TEUs are expected to be delivered this year, mostly for Asia-Europe, while just 91,000 TEUs will be scrapped. Carriers are blanking sailings in an attempt to slow the rate decline, but remain surprisingly conservative in their capacity withdrawals. Asia-North Europe carriers will deploy 1.1 million TEUs in capacity in August while blanking 94,470 TEUs, down from the 120,000 TEUs blanked in July, data from visibility provider eeSea shows. Capacity available in September will drop to just over 1 million TEUs, with blank sailings of 42,601 TEUs. Destine Ozuygur, chief analyst at eeSea, said the persistent port congestion in Europe could be contributing to carriers announcing fewer blanks during August and September on Asia-North Europe. ”Blanks last August accounted for about 13% of planned calls, and 15% of total planned calls in September, while this year it shapes up to 11% of planned calls in August and just 6% in September,” Ozuygur told the Journal of Commerce. C.H. Robinson advised Asia-Europe shippers in a recent market update to continue booking space three to four weeks ahead, as August capacity was expected to remain tight despite demand softening in some segments. “The combination of port congestion and deliberate capacity cuts favors advance planning over spot market strategies,” the forwarder noted. Schedule reliability data for the Asia-North Europe trade lane reveals the impact of the port bottlenecks. After reaching a 2025 high of 45% in May, on-time performance on the trade lane in July was 28%, according to eeSea. Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Forwarding

Asia-Europe

Maritime

Asia-Europe ocean rates edging down despite ‘robust’ bookings

<div class="phx-topic abstract-wrapper">The US-based ocean carrier and logistics company paid about $2 million for the two transload specialists following the July shutdown of GSC.</div>

The US-based ocean carrier and logistics company paid about $2 million for the two transload specialists following the July shutdown of GSC.

<div class="phx-topic">The parent of US-based ocean carrier Pasha has acquired two Pacific Northwest transloading businesses of newly shuttered California trucking company GSC Logistics, which bought the businesses two years ago but whose assets are now under court receivership following a loan default. Pasha Group said in a statement Wednesday its logistics arm acquired MacMillan-Piper and Tacoma Transload in agreement with <a href="https://www.joc.com/article/drayage-stakeholders-say-industry-under-threat-from-falling-rates-increased-costs-6045985">the court-appointed receiver of GSC’s assets</a>. The two businesses have five leased warehouses totaling 370,000 square feet that service trucks as well as BNSF Railway and Union Pacific railcars. Pasha said the businesses have “specialized expertise in handling commodities including agriculture, paper, lumber, steel, and dry bulk.” Pasha Chief Executive George Pasha IV said in the statement the acquisition is a “strategic leap forward” for the company, which is mostly known for Jones Act container and automotive shipping services to Hawaii. Pasha also handles breakbulk and military cargoes. “This move expands our capacity and flexibility across the Pacific Northwest,” Pasha said. Pasha did not disclose the purchase price. But an asset purchase agreement filed with a court order authorizing the sale shows Pasha will pay up to $1.9 million for the warehouse space and equipment and up to $600,000 for the account receivables. <a href="https://www.joc.com/article/retail-3pl-gsc-expands-service-scope-with-macmillan-piper-acquisition-5223496">GSC bought MacMillan and Tacoma Transload in July 2023</a> in a bid to diversify from its main business serving the Port of Oakland and northern California. According to court documents filed by its lender, GSC had $4.6 million in promissory notes as of last year related to the purchases. An Illinois district court placed GSC under receivership in July following its default on a $2 million loan made by asset-based lender SG Stonegate in December 2024. Among other obligations, the loan required GSC to have operating earnings of at least $904,000 during the fourth quarter of last year; the company’s operating earnings fell to about $105,000. GSC entered a forbearance agreement in February 2025 that required it to stanch its losses and seek out a buyer by the end of April. However, GSC had negative cash flow of $755,000 between February and May and had not found a buyer, according to a court document filed by SG Stonegate. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The parent of US-based ocean carrier Pasha has acquired two Pacific Northwest transloading businesses of newly shuttered California trucking company GSC Logistics, which bought the businesses two years ago but whose assets are now under court receivership following a loan default. Pasha Group said in a statement Wednesday its logistics arm acquired MacMillan-Piper and Tacoma Transload in agreement with the court-appointed receiver of GSC’s assets . The two businesses have five leased warehouses totaling 370,000 square feet that service trucks as well as BNSF Railway and Union Pacific railcars. Pasha said the businesses have “specialized expertise in handling commodities including agriculture, paper, lumber, steel, and dry bulk.” Pasha Chief Executive George Pasha IV said in the statement the acquisition is a “strategic leap forward” for the company, which is mostly known for Jones Act container and automotive shipping services to Hawaii. Pasha also handles breakbulk and military cargoes. “This move expands our capacity and flexibility across the Pacific Northwest,” Pasha said. Pasha did not disclose the purchase price. But an asset purchase agreement filed with a court order authorizing the sale shows Pasha will pay up to $1.9 million for the warehouse space and equipment and up to $600,000 for the account receivables. GSC bought MacMillan and Tacoma Transload in July 2023 in a bid to diversify from its main business serving the Port of Oakland and northern California. According to court documents filed by its lender, GSC had $4.6 million in promissory notes as of last year related to the purchases. An Illinois district court placed GSC under receivership in July following its default on a $2 million loan made by asset-based lender SG Stonegate in December 2024. Among other obligations, the loan required GSC to have operating earnings of at least $904,000 during the fourth quarter of last year; the company’s operating earnings fell to about $105,000. GSC entered a forbearance agreement in February 2025 that required it to stanch its losses and seek out a buyer by the end of April. However, GSC had negative cash flow of $755,000 between February and May and had not found a buyer, according to a court document filed by SG Stonegate. Contact Michael Angell at michael.angell@spglobal.com .

Surface

Port News

Drayage

Pasha picks up GSC’s Pacific Northwest transload businesses in court sale

<div class="phx-topic abstract-wrapper">The Hong Kong-based JV will provide coordination, performance management and strategic oversight of all origin locations across Asia for members of the BCO group.</div>

The Hong Kong-based JV will provide coordination, performance management and strategic oversight of all origin locations across Asia for members of the BCO group.

<div class="phx-topic">The ShiftX coalition of cargo owners has formed a joint venture with Chinese logistics giant Unitrans, establishing a new business unit in Hong Kong called OriginX and expanding the shipper network’s global reach. Scheduled to start operations on Oct. 1, OriginX will provide coordination, performance management and strategic oversight of all origin locations across Asia for members of the beneficial cargo owner (BCO) group. “Through this partnership, we strengthen our network in the Asian region, establish shared best practices while preserving local expertise, and initiate the technological transformation toward a more data-driven organization,” Stephan Schiller, managing partner of ShiftX, said in a statement Thursday. ShiftX leverages a collaborative network model where BCOs pool their shipping volumes to negotiate better rates and secure reliable capacity with service providers. The portfolio comprises over 50 network service providers in Europe and Asia and has offices in Düsseldorf and Hamburg in Germany, Katowice in Poland, and now Hong Kong. “OriginX will become the unified platform for future growth — not only for our organization but also for each individual member of our alliance,” Schiller said. Earlier this summer, ShiftX formed a partnership with British supply chain consultancy Evolution Supply Chain to form ShiftX BCO Network, headquartered in Manchester and led by Keith Gaskin. The UK unit has already begun operations. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The ShiftX coalition of cargo owners has formed a joint venture with Chinese logistics giant Unitrans, establishing a new business unit in Hong Kong called OriginX and expanding the shipper network’s global reach. Scheduled to start operations on Oct. 1, OriginX will provide coordination, performance management and strategic oversight of all origin locations across Asia for members of the beneficial cargo owner (BCO) group. “Through this partnership, we strengthen our network in the Asian region, establish shared best practices while preserving local expertise, and initiate the technological transformation toward a more data-driven organization,” Stephan Schiller, managing partner of ShiftX, said in a statement Thursday. ShiftX leverages a collaborative network model where BCOs pool their shipping volumes to negotiate better rates and secure reliable capacity with service providers. The portfolio comprises over 50 network service providers in Europe and Asia and has offices in Düsseldorf and Hamburg in Germany, Katowice in Poland, and now Hong Kong. “OriginX will become the unified platform for future growth — not only for our organization but also for each individual member of our alliance,” Schiller said. Earlier this summer, ShiftX formed a partnership with British supply chain consultancy Evolution Supply Chain to form ShiftX BCO Network, headquartered in Manchester and led by Keith Gaskin. The UK unit has already begun operations. Contact Greg Knowler at greg.knowler@spglobal.com .

Shipper network ShiftX inks Asia joint venture with Unitrans

<div class="phx-topic abstract-wrapper">But the growing synergy and efficiencies of its Gemini network with Maersk are expected to generate significant savings over the next few quarters, CEO Rolf Habben Jansen says.</div>

But the growing synergy and efficiencies of its Gemini network with Maersk are expected to generate significant savings over the next few quarters, CEO Rolf Habben Jansen says.

<div class="phx-topic">Hapag-Lloyd’s transition to its new Gemini Cooperation network cost the Hamburg-based carrier a “three-digit million-dollar figure,” offsetting robust growth in its first-half revenue and volume, CEO Rolf Habben Jansen said Thursday. But the carrier has implemented an aggressive cost-savings program that, by the end of 2026, will have reduced costs across the Hapag-Lloyd network by $1 billion, upward of 40% of which is expected to be derived from growing synergy and efficiencies of its Gemini partnership with Maersk. “When you look at the savings we anticipated with Gemini, and which we still think we are going to deliver out of Gemini alone, it is going to be $350 million to $400 million,” Habben Jansen told reporters during Hapag-Lloyd’s second-quarter earnings call. “With the new network, we have had some challenges on utilization that are getting less and less, and those benefits of the new network we will start seeing in Q3, Q4 and also into 2026,” he added. Other factors adding to Hapag-Lloyd’s expenses in the first half were higher storage costs for containers as a result of port congestion, particularly on European trades, and increased hinterland transportation costs due to the carrier capturing a rising share of door-to-door business. While Gemini does not increase the size of the fleet deployed by Hapag-Lloyd, it increases the amount of capacity the carrier can offer every week, an effect that was clearly reflected in the revenue and volume numbers. Revenue in the first half rose 11% year over year to $10.6 billion on the back of an 11% increase in volume to 6.7 million TEUs. But the cost-heavy second quarter created a significant drag on first-half earnings. While average spot rates of $1,400 per TEU were flat compared with the first six months of 2024, rates fell 11% sequentially from the first quarter to the second quarter. It was a similar picture in earnings before interest, taxes, depreciation and amortization (EBITDA) that in the second quarter fell 20% year over year, bringing the first-half numbers down 2% to $1.9 billion. Earnings before interest and taxes (EBIT) of $677 million in the first half were down 23%, while net profit slid 2% to $775 million. <h3>Delivering on reliability promise </h3>Habben Jansen said phasing in the Gemini network concluded in June and the process was able to deliver the promised 90% schedule reliability. “A lot of people were skeptical about that at the beginning of the year, but we have been delivering 90% reliability every month since the start, and I think that’s something to be really proud of,” he told reporters. “Now it’s about fine-tuning that network,” the CEO added. “Despite a lot of planning, reality is always a little bit different, but we are optimistic we will see further improvements.” Data from eeSea shows that the Gemini Cooperation topped reliability among the carrier alliances up to July, <a href="https://www.joc.com/article/high-gemini-reliability-lays-groundwork-for-premium-rate-discussions-maersk-ceo-6059343">but its overall on-time performance recorded by the ocean visibility provider was 84%</a>. Gemini’s best performance was on the Europe-North America trade, where it maintained above 90% reliability throughout June and July. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7041fe54-edf1-4d59-9d82-94781e7a7eb1"></dynamic-object></div>With the first half now over, Hapag-Lloyd has narrowed its full-year outlook and expects EBITDA to come in between $2.8 billion and $3.8 billion (previously $2.5 billion to $4 billion) and EBIT to land at $250 million to $1.25 billion (previously zero to $1.5 billion). The carrier expects frontloading and higher permanent tariffs to slow down demand in the second half of the year. Hapag-Lloyd forecasts that global container market volume will grow about 3% to 4% in the second half and that its own volume will be above the market average. “If you look at the beginning of the year, most people would have predicted flat growth or maybe negative in 2025, but for the first six months we saw [overall market] growth of 4.5%,” Habben Jansen said. “Even if the second half is a little bit weaker, we’re going to end the year definitely with a plus.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd’s transition to its new Gemini Cooperation network cost the Hamburg-based carrier a “three-digit million-dollar figure,” offsetting robust growth in its first-half revenue and volume, CEO Rolf Habben Jansen said Thursday. But the carrier has implemented an aggressive cost-savings program that, by the end of 2026, will have reduced costs across the Hapag-Lloyd network by $1 billion, upward of 40% of which is expected to be derived from growing synergy and efficiencies of its Gemini partnership with Maersk. “When you look at the savings we anticipated with Gemini, and which we still think we are going to deliver out of Gemini alone, it is going to be $350 million to $400 million,” Habben Jansen told reporters during Hapag-Lloyd’s second-quarter earnings call. “With the new network, we have had some challenges on utilization that are getting less and less, and those benefits of the new network we will start seeing in Q3, Q4 and also into 2026,” he added. Other factors adding to Hapag-Lloyd’s expenses in the first half were higher storage costs for containers as a result of port congestion, particularly on European trades, and increased hinterland transportation costs due to the carrier capturing a rising share of door-to-door business. While Gemini does not increase the size of the fleet deployed by Hapag-Lloyd, it increases the amount of capacity the carrier can offer every week, an effect that was clearly reflected in the revenue and volume numbers. Revenue in the first half rose 11% year over year to $10.6 billion on the back of an 11% increase in volume to 6.7 million TEUs. But the cost-heavy second quarter created a significant drag on first-half earnings. While average spot rates of $1,400 per TEU were flat compared with the first six months of 2024, rates fell 11% sequentially from the first quarter to the second quarter. It was a similar picture in earnings before interest, taxes, depreciation and amortization (EBITDA) that in the second quarter fell 20% year over year, bringing the first-half numbers down 2% to $1.9 billion. Earnings before interest and taxes (EBIT) of $677 million in the first half were down 23%, while net profit slid 2% to $775 million. Delivering on reliability promise Habben Jansen said phasing in the Gemini network concluded in June and the process was able to deliver the promised 90% schedule reliability. “A lot of people were skeptical about that at the beginning of the year, but we have been delivering 90% reliability every month since the start, and I think that’s something to be really proud of,” he told reporters. “Now it’s about fine-tuning that network,” the CEO added. “Despite a lot of planning, reality is always a little bit different, but we are optimistic we will see further improvements.” Data from eeSea shows that the Gemini Cooperation topped reliability among the carrier alliances up to July, but its overall on-time performance recorded by the ocean visibility provider was 84% . Gemini’s best performance was on the Europe-North America trade, where it maintained above 90% reliability throughout June and July. With the first half now over, Hapag-Lloyd has narrowed its full-year outlook and expects EBITDA to come in between $2.8 billion and $3.8 billion (previously $2.5 billion to $4 billion) and EBIT to land at $250 million to $1.25 billion (previously zero to $1.5 billion). The carrier expects frontloading and higher permanent tariffs to slow down demand in the second half of the year. Hapag-Lloyd forecasts that global container market volume will grow about 3% to 4% in the second half and that its own volume will be above the market average. “If you look at the beginning of the year, most people would have predicted flat growth or maybe negative in 2025, but for the first six months we saw [overall market] growth of 4.5%,” Habben Jansen said. “Even if the second half is a little bit weaker, we’re going to end the year definitely with a plus.” Contact Greg Knowler at greg.knowler@spglobal.com .

High cost of Gemini transition drags on Hapag-Lloyd’s H1 result

<div class="phx-topic abstract-wrapper">Traditional retailers in the US are scaling back their space requirements, according to an annual report, as the volatility over tariffs trickles down to the industrial real estate market.</div>

Traditional retailers in the US are scaling back their space requirements, according to an annual report, as the volatility over tariffs trickles down to the industrial real estate market.

<div class="phx-topic">US tariff uncertainty is holding back retailers from taking a larger warehousing footprint, fueling demand for domestic manufacturing facilities and giving third-party logistics companies (3PLs) a larger share of the available pipeline of industrial space, according to JLL’s annual Industrial Tenant Demand Study. Traditional retailers in the US have scaled back their industrial space requirements by 16.7% year over year, according to data collected by JLL during the first half of 2025. In contrast, 3PLs expanded their footprint by 12.8% in the same period. Still, overall demand is down almost 11%, marking the third year in a row with demand reductions. “[3PLs are] looking for incremental space,” Daniel Stephen Letter, president and director of Prologis, the largest US industrial real estate firm as measured by square footage, said during a July 16 earnings call. “We’re seeing this mostly from the larger 3PLs, many of them are unphased by all the noise in the macro picture.” Additionally, the average warehouse vacancy rate in the US rose to 7.1% in the second quarter — the highest level in over a decade and up one percentage point from the second quarter of 2024, commercial real estate services firm Cushman &amp; Wakefield said in its second-quarter industrial real estate report. Meanwhile, JLL said first-half demand for warehousing and distribution was down 14.6% compared with a year ago. JLL said the juxtaposition of the two trends signals retailers are becoming more cautious as logistics providers prepare for potential supply chain disruptions. Prologis said 3PLs accounted for about one-third of the company’s leasing in the second quarter. <h3>Significant 3PL growth </h3>In a sign of their growth, the number of 3PLs occupying the top 100 largest US industrial real estate leases rose in the first quarter of 2025, with 38 3PLs managing 28.9 million square feet — a 35% increase in square footage from the first quarter of 2024, when 28 3PLS controlled 20.6 million square feet. <a href="https://www.joc.com/article/multiplying-supply-chain-risks-drive-growth-for-global-us-based-logistics-firms-6026573">Amazon tops the annual revenue rankings</a> of both domestic and global 3PLs by logistics research firm Armstrong &amp; Associates, with $156.2 billion in 3PL-related revenue. Meanwhile, DHL Supply Chain &amp; Global Forwarding came in second in the global 3PL rankings, followed by Kuehne + Nagel. The Armstrong report said risk created by trade uncertainty and other geopolitical conflicts <a href="https://www.joc.com/article/multiplying-supply-chain-risks-drive-growth-for-global-us-based-logistics-firms-6026573">will help push global gross 3PL revenue up</a> another 2.7% in 2025 to $1.25 trillion. That revenue should grow again by 4.9% in 2026 to $1.3 trillion, it said. Amid the growth, 3PLs accounted for 13% of build-to-suit projects in 2025 in data JLL collected during the first half of 2025 — the largest share of any industry, JLL said. According to Prologis CFO Timothy D. Arndt, build-to-suit starts for the first half of 2025 totaled $1.1 billion — the largest start to a year that the company has ever had. “In terms of capital deployment, we started over $900 million in new development starts — nearly 65% of which was build-to-suit activity across seven additional projects in both U.S. and Europe,” Arndt said on Prologis’ earnings call. “Beyond this activity, we have signed for an additional three build-to-suits post quarter end.” <h3>Hesitant to commit </h3>Overall, importers are seeking more agile leasing options. Lessees are shifting toward short-term renewals and away from long-term commitments “as they evaluate how evolving global supply chain strategies might impact their space requirements,” JLL wrote in its report. Meanwhile, industrial lessees are slower to move lately, said JLL, with potential lessees staying on the market for an average of 11 months — up almost 70% compared with 6.5 months observed in the fourth quarter of last year. By 2026, JLL projects that figure to reach 14 months. “At the fundamental level, immediate tariff effects have resulted in a pause of deals and decision deferment among occupiers,” said JLL. As tariffs dampen leasing decisions, manufacturing is still showing signs of momentum, with leasing demand up 9% year over year in data collected by JLL during the first half of 2025. The firm noted the shift to manufacturing continues to be a long-term pattern, with those investments taking as long as five years to come to fruition in some cases, said JLL. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

US tariff uncertainty is holding back retailers from taking a larger warehousing footprint, fueling demand for domestic manufacturing facilities and giving third-party logistics companies (3PLs) a larger share of the available pipeline of industrial space, according to JLL’s annual Industrial Tenant Demand Study. Traditional retailers in the US have scaled back their industrial space requirements by 16.7% year over year, according to data collected by JLL during the first half of 2025. In contrast, 3PLs expanded their footprint by 12.8% in the same period. Still, overall demand is down almost 11%, marking the third year in a row with demand reductions. “[3PLs are] looking for incremental space,” Daniel Stephen Letter, president and director of Prologis, the largest US industrial real estate firm as measured by square footage, said during a July 16 earnings call. “We’re seeing this mostly from the larger 3PLs, many of them are unphased by all the noise in the macro picture.” Additionally, the average warehouse vacancy rate in the US rose to 7.1% in the second quarter — the highest level in over a decade and up one percentage point from the second quarter of 2024, commercial real estate services firm Cushman & Wakefield said in its second-quarter industrial real estate report. Meanwhile, JLL said first-half demand for warehousing and distribution was down 14.6% compared with a year ago. JLL said the juxtaposition of the two trends signals retailers are becoming more cautious as logistics providers prepare for potential supply chain disruptions. Prologis said 3PLs accounted for about one-third of the company’s leasing in the second quarter. Significant 3PL growth In a sign of their growth, the number of 3PLs occupying the top 100 largest US industrial real estate leases rose in the first quarter of 2025, with 38 3PLs managing 28.9 million square feet — a 35% increase in square footage from the first quarter of 2024, when 28 3PLS controlled 20.6 million square feet. Amazon tops the annual revenue rankings of both domestic and global 3PLs by logistics research firm Armstrong & Associates, with $156.2 billion in 3PL-related revenue. Meanwhile, DHL Supply Chain & Global Forwarding came in second in the global 3PL rankings, followed by Kuehne + Nagel. The Armstrong report said risk created by trade uncertainty and other geopolitical conflicts will help push global gross 3PL revenue up another 2.7% in 2025 to $1.25 trillion. That revenue should grow again by 4.9% in 2026 to $1.3 trillion, it said. Amid the growth, 3PLs accounted for 13% of build-to-suit projects in 2025 in data JLL collected during the first half of 2025 — the largest share of any industry, JLL said. According to Prologis CFO Timothy D. Arndt, build-to-suit starts for the first half of 2025 totaled $1.1 billion — the largest start to a year that the company has ever had. “In terms of capital deployment, we started over $900 million in new development starts — nearly 65% of which was build-to-suit activity across seven additional projects in both U.S. and Europe,” Arndt said on Prologis’ earnings call. “Beyond this activity, we have signed for an additional three build-to-suits post quarter end.” Hesitant to commit Overall, importers are seeking more agile leasing options. Lessees are shifting toward short-term renewals and away from long-term commitments “as they evaluate how evolving global supply chain strategies might impact their space requirements,” JLL wrote in its report. Meanwhile, industrial lessees are slower to move lately, said JLL, with potential lessees staying on the market for an average of 11 months — up almost 70% compared with 6.5 months observed in the fourth quarter of last year. By 2026, JLL projects that figure to reach 14 months. “At the fundamental level, immediate tariff effects have resulted in a pause of deals and decision deferment among occupiers,” said JLL. As tariffs dampen leasing decisions, manufacturing is still showing signs of momentum, with leasing demand up 9% year over year in data collected by JLL during the first half of 2025. The firm noted the shift to manufacturing continues to be a long-term pattern, with those investments taking as long as five years to come to fruition in some cases, said JLL. Contact Laura Robb at laura.robb@spglobal.com . 

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Retailers cut back on warehouse space as supply chain hurdles fuel 3PL growth

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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. 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