<div class="phx-topic abstract-wrapper">Large Indian industrial importers, relying heavily on China for input products, have complained that despite shelling out exorbitantly high freight rates, vessel space at load ports continues to be problematic.</div>

Large Indian industrial importers, relying heavily on China for input products, have complained that despite shelling out exorbitantly high freight rates, vessel space at load ports continues to be problematic.

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<div>Ocean rates for Far East trades to India have seen three- to four-fold gains in the last few weeks as the congestion plaguing major transshipment hubs in the region continues to keep vessel schedules and space availability under tremendous pressure. According to new data collected by the Journal of Commerce from local freight forwarders, average spot rates from Shanghai to Nhava Sheva or Mundra in West India now stand at $3,850 per TEU and $4,250 per FEU, up from the $1,080 and $1,180, respectively, in the second half of May. Similarly, rates from Singapore and Malaysia’s Port Klang to West...

Ocean rates for Far East trades to India have seen three- to four-fold gains in the last few weeks as the congestion plaguing major transshipment hubs in the region continues to keep vessel schedules and space availability under tremendous pressure. According to new data collected by the Journal of Commerce from local freight forwarders, average spot rates from Shanghai to Nhava Sheva or Mundra in West India now stand at $3,850 per TEU and $4,250 per FEU, up from the $1,080 and $1,180, respectively, in the second half of May. Similarly, rates from Singapore and Malaysia’s Port Klang to West India have soared dramatically in June -– now hovering at $3,500 per TEU and $4,500 per FEU out of both load ports. Japan-India routes via Singapore are also paying the price for unsettled capacity as sources put spot carrier quotes for shipments from Yokohama/Kobe to West India at $4,000 per TEU and $4,800 per FEU. More glaringly, June rates for intra-Asia shipments to India are significantly higher than pandemic-era peak levels, data reveals . Large Indian industrial importers, relying heavily on China for input products, have complained that despite shelling out exorbitantly high freight rates, vessel space at load ports continues to be problematic. “Delays have impacted the supply chains and to avoid potential stockouts, importers are being forced to build up inventories, thus pushing cargo consolidation at dispatch points in the Far East, mainly China,” Dharmendra Gangrade, head of logistics management at diversified Indian conglomerate Larsen & Toubro, told the Journal of Commerce. “With no letup signs emerging, Indian manufacturing companies are exploring alternative sources of supply, including from the domestic market, even at slightly higher costs in order to keep their production lines at near-normal capacity levels.” Daniel Krassenstein, global supply chain director of US-based industrial packaging manufacturer Procon Pacific, noted that carriers have rushed into China to “cherry pick” the benefits of a surge in US import demand, propelled by strong retail sales and frontloading by shippers. “Since China-US West Coast rates are double or triple those of India-USWC levels, carriers are intently focused on margins and prioritizing China freight over India trades,” Krassenstein told the Journal of Commerce. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

International ports

Container Shipping News

Maritime

Far East-India rates hit new recent highs amid ongoing Asia port flow disruptions

<div class="phx-topic abstract-wrapper">Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels. </div>

Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels.

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<div class="phx-topic">Work has begun on the $2 billion fifth development phase of Nansha port, the main international container gateway for Guangzhou in southern China, as part of a move to increase Nansha’s capacity to 35 million TEUs by around 2030. Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels, China’s Transport Ministry said Monday. The extension, with a combined berth length of 2.4 miles, will boost capacity at Nansha by 6.7 million TEUs. Guangzhou Port Group is also developing the $1 billion Nansha International General Terminal that will add an additional 500,000 TEUs of capacity and berths for breakbulk, project cargo and vehicle shipments. Port group Chairman Huang Bo said the fifth development phase plus general terminal and other expansion work will add 11 million TEUs of operating capacity to Nansha port, located about 40 miles south of Guangzhou city. The work comes as Guangzhou is seeing an increase in container volumes as growth there largely keeps pace with rival Shenzhen about 60 miles south, while both ports are continuing to lure volumes away from Hong Kong. Guangzhou saw throughput climb 8% to over 27 million TEUs last year, of which more than 22 million TEUs were handled at Nansha, according to the Guangzhou Port Group. The growth has continued this year, with a 4% increase in Guangzhou’s total throughput in the first four months of this year, to 9 million TEUs. Container volumes at Shenzhen rose 5% last year to 35 million TEUs, with growth in the first four months climbing 8% to 8.5 million TEUs. Volumes at Hong Kong have continued to decline, falling 5% to 13.7 million TEUs last year and sliding a further 7% to 4.2 million TEUs this year through April. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Work has begun on the $2 billion fifth development phase of Nansha port, the main international container gateway for Guangzhou in southern China, as part of a move to increase Nansha’s capacity to 35 million TEUs by around 2030. Main construction started Friday and includes the development of four berths capable of handling ships of more than 21,000 TEUs, plus 15 berths for regional feeder vessels, China’s Transport Ministry said Monday. The extension, with a combined berth length of 2.4 miles, will boost capacity at Nansha by 6.7 million TEUs. Guangzhou Port Group is also developing the $1 billion Nansha International General Terminal that will add an additional 500,000 TEUs of capacity and berths for breakbulk, project cargo and vehicle shipments. Port group Chairman Huang Bo said the fifth development phase plus general terminal and other expansion work will add 11 million TEUs of operating capacity to Nansha port, located about 40 miles south of Guangzhou city. The work comes as Guangzhou is seeing an increase in container volumes as growth there largely keeps pace with rival Shenzhen about 60 miles south, while both ports are continuing to lure volumes away from Hong Kong. Guangzhou saw throughput climb 8% to over 27 million TEUs last year, of which more than 22 million TEUs were handled at Nansha, according to the Guangzhou Port Group. The growth has continued this year, with a 4% increase in Guangzhou’s total throughput in the first four months of this year, to 9 million TEUs. Container volumes at Shenzhen rose 5% last year to 35 million TEUs, with growth in the first four months climbing 8% to 8.5 million TEUs. Volumes at Hong Kong have continued to decline, falling 5% to 13.7 million TEUs last year and sliding a further 7% to 4.2 million TEUs this year through April. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

Port infrastructure

Marine terminals

Guangzhou begins work on $2 billion fifth development phase at Nansha port

<div class="phx-topic abstract-wrapper">The Abu Dhabi group is following its larger Dubai-based neighbor DP World in growing its end-to-end reach across the container shipping sector.</div>

The Abu Dhabi group is following its larger Dubai-based neighbor DP World in growing its end-to-end reach across the container shipping sector.

<div class="phx-topic">AD Ports said Monday it has signed a deal to acquire Cologne-based forwarder MBS Logistics Group, continuing a strategic expansion strategy to grow market access in Central Europe, East Asia and Southeast Asia. The acquisition by the Abu Dhabi group, subject to regulatory approval, is expected to be completed in the second half of the year. Financial terms were not disclosed. MBS will join Noatum Logistics, AD Ports’ forwarding arm that is led by Jochen Thewes, who was appointed CEO of the division last December. Thewes, the former CEO of DB Schenker, has been tasked with shepherding the strategic expansion of Noatum’s global reach, combining organic growth with targeted acquisitions. “Bringing MBS Logistics into our ecosystem is the right move at the right time, especially as markets seek greater connectivity and resilience in an evolving global trade and logistics landscape,” he said in a statement. Thewes said MBS would provide Noatum with an established operating platform and immediate access to key logistics corridors in Central Europe and globally. “Ultimately, the combined strengths of both organizations will allow us to raise our game and compete more effectively for major global accounts,” he added. If approved, the transaction would cover MBS’ forwarding and logistics operations across Germany, Switzerland, Asia-Pacific and the US. In 2025, MBS Logistics generated revenues of €205 million ($240 million) with a diversified and asset-light business model and core forwarding operations in Central Europe, and an established network across East Asia and Southeast Asia. The current shareholders of MBS Logistics will exit the operational business, except for Joerg Roehl, shareholder and group CEO. He will oversee the integration and then become part of Noatum’s senior leadership team. <h3>AD Ports expansion </h3>AD Ports has been rapidly expanding its end-to-end reach in the container shipping sector in the past few years, following in the footsteps of larger Dubai-based neighbor DP World. AD Ports, which acquired Spain-based Noatum for $760 million in 2023, has several strategic partnerships with CMA CGM. In the joint venture Khalifa Port in Abu Dhabi, the ocean carrier holds a 70% share with AD Ports holding the remaining 30%. Last November, AD Ports took a 20% stake in the CMA CGM-operated <a href="https://www.joc.com/article/cma-cgm-accelerates-232-million-syrian-med-port-expansion-project-6066188">Latakia International Container Terminal in Syria</a>. The two companies are also involved in the joint venture development of a multipurpose cargo terminal in Pointe Noire in the Republic of Congo. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

AD Ports said Monday it has signed a deal to acquire Cologne-based forwarder MBS Logistics Group, continuing a strategic expansion strategy to grow market access in Central Europe, East Asia and Southeast Asia. The acquisition by the Abu Dhabi group, subject to regulatory approval, is expected to be completed in the second half of the year. Financial terms were not disclosed. MBS will join Noatum Logistics, AD Ports’ forwarding arm that is led by Jochen Thewes, who was appointed CEO of the division last December. Thewes, the former CEO of DB Schenker, has been tasked with shepherding the strategic expansion of Noatum’s global reach, combining organic growth with targeted acquisitions. “Bringing MBS Logistics into our ecosystem is the right move at the right time, especially as markets seek greater connectivity and resilience in an evolving global trade and logistics landscape,” he said in a statement. Thewes said MBS would provide Noatum with an established operating platform and immediate access to key logistics corridors in Central Europe and globally. “Ultimately, the combined strengths of both organizations will allow us to raise our game and compete more effectively for major global accounts,” he added. If approved, the transaction would cover MBS’ forwarding and logistics operations across Germany, Switzerland, Asia-Pacific and the US. In 2025, MBS Logistics generated revenues of €205 million ($240 million) with a diversified and asset-light business model and core forwarding operations in Central Europe, and an established network across East Asia and Southeast Asia. The current shareholders of MBS Logistics will exit the operational business, except for Joerg Roehl, shareholder and group CEO. He will oversee the integration and then become part of Noatum’s senior leadership team. AD Ports expansion AD Ports has been rapidly expanding its end-to-end reach in the container shipping sector in the past few years, following in the footsteps of larger Dubai-based neighbor DP World. AD Ports, which acquired Spain-based Noatum for $760 million in 2023, has several strategic partnerships with CMA CGM. In the joint venture Khalifa Port in Abu Dhabi, the ocean carrier holds a 70% share with AD Ports holding the remaining 30%. Last November, AD Ports took a 20% stake in the CMA CGM-operated Latakia International Container Terminal in Syria . The two companies are also involved in the joint venture development of a multipurpose cargo terminal in Pointe Noire in the Republic of Congo. Contact Greg Knowler at greg.knowler@spglobal.com .

Forwarding

AD Ports to expand Europe, Asia footprints with MBS Logistics takeover

<div class="phx-topic abstract-wrapper">Trucking industry attorneys say last week’s decision by the Supreme Court is likely to intensify scrutiny of carrier selection practices and insurance coverage.</div>

Trucking industry attorneys say last week’s decision by the Supreme Court is likely to intensify scrutiny of carrier selection practices and insurance coverage.

<div class="phx-topic">The unanimous <a href="https://www.joc.com/article/supreme-court-ruling-strips-broker-protection-linked-to-carrier-safety-6220667">Supreme Court ruling</a> allowing certain state-level negligence claims against freight brokers is expected to increase pressure on motor carriers to carry higher insurance limits and could eventually contribute to higher transportation costs, trucking attorneys say. The May 14 decision in Montgomery v. Caribe Transports LLC held that freight brokers are not shielded from some state personal injury lawsuits, potentially expanding liability exposure for intermediaries that arrange truck freight. Attorneys on both sides of the trucking industry said the ruling is likely to intensify scrutiny of carrier selection practices and insurance coverage. “A lot of brokers are going to go to their trucking companies and say, ‘You’ve been running loads with $1 million worth of insurance. Since we’re exposed, you can cause a lot more than $1 million worth of damage,’” Ed Leonard, a partner at San Diego law firm Tyson &amp; Mendes, which represents trucking companies in civil litigation, said. Leonard told the Journal of Commerce that brokers are likely to require higher liability coverage from carriers moving freight, particularly smaller operators with marginal safety records. “They’re going to be asking these trucking companies to buy more insurance,” he said. “This is going to cost more money to get things done.” The ruling could also tighten trucking capacity if higher insurance premiums force some smaller fleets and owner-operators to exit the market, Leonard said. That could place additional upward pressure on freight rates at a time when parts of the trucking industry are already navigating labor and regulatory disruptions. <h3>‘A big deal’ </h3>Plaintiff attorneys, meanwhile, said the decision gives crash victims a significant new legal avenue by allowing brokers to be named in lawsuits involving serious injuries and fatalities. “These major trucking accidents result in deaths, amputations and traumatic brain injuries, and this opens the door to brokers, making them a viable defendant,” said Edward Bassett, a partner at Mirick Law and former president of the Association of Plaintiff Interstate Trucking Lawyers of America. “Whether you are popping champagne or Diet Coke at plaintiff firms, this is a big deal.” Bassett said brokers are likely to more carefully scrutinize the carriers they hire, rather than selecting providers primarily on price. “They’re going to start looking carefully at the carriers they hire and not just the cheaper ones,” he said. “They’re being held responsible if they hire fly-by-night companies.” The case decided by the Supreme Court last week stemmed from a 2017 crash in Illinois involving truck driver Shawn Montgomery, who suffered catastrophic injuries and lost a leg after his parked tractor-trailer was struck by another truck. The Supreme Court ruled Montgomery could pursue claims against freight broker C.H. Robinson, which arranged the shipment. Montgomery’s attorneys argued that carrier Caribe Transport II had a poor safety record and that the broker should share liability for hiring it. C.H. Robinson argued that because trucking companies are federally licensed and regulated, brokers should be shielded from state negligence claims tied to carrier safety. The court disagreed, concluding that federal transportation law does not broadly preempt those claims. <h3>Federal data under scrutiny </h3>The decision could renew debate over trucking insurance minimums, which have remained largely unchanged since the Reagan administration. The Federal Motor Carrier Safety Administration (FMCSA) currently requires minimum liability coverage ranging from $750,000 to $5 million depending on the type of freight being hauled. Since 1985, Congress has repeatedly considered raising those thresholds or indexing them to inflation, but those efforts have stalled. FMCSA studies have suggested current minimums may be insufficient to cover catastrophic crashes and rising medical costs. Industry groups, however, have argued most claims settle below existing coverage requirements and that raising insurance mandates would disproportionately hurt small and midsize carriers by increasing operating costs. “We think it’s a bad decision. We had to be defending these cases before and we’ll be defending them after,” said Nathaniel Saylor, a partner at transportation law firm Scopelitis, Garvin, Light, Hanson &amp; Feary. “The question in these cases before the jury will always be, what is reasonable care. That standard was the standard yesterday and tomorrow as well. Nothing has changed regarding the broker’s duty. But the temperature is up on this issue, and you can expect the plaintiff bar will be pursuing these cases very aggressively.” Saylor said one major issue going forward will be the reliability of FMCSA safety data used by brokers to evaluate carriers, because critics of the system have said the information can be incomplete or outdated. “Brokers are dealing with carriers authorized by the federal government to operate,” Saylor said. “If brokers can be liable, we should at least make sure brokers have the right information available. How is the broker supposed to know that one carrier is more or less safe than another? “More information is good, and it helps,” he added. “With that information, FMCSA can identify unsafe carriers, remove them from the market and ensure the available capacity is safer.” Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>. </div>

The unanimous Supreme Court ruling allowing certain state-level negligence claims against freight brokers is expected to increase pressure on motor carriers to carry higher insurance limits and could eventually contribute to higher transportation costs, trucking attorneys say. The May 14 decision in Montgomery v. Caribe Transports LLC held that freight brokers are not shielded from some state personal injury lawsuits, potentially expanding liability exposure for intermediaries that arrange truck freight. Attorneys on both sides of the trucking industry said the ruling is likely to intensify scrutiny of carrier selection practices and insurance coverage. “A lot of brokers are going to go to their trucking companies and say, ‘You’ve been running loads with $1 million worth of insurance. Since we’re exposed, you can cause a lot more than $1 million worth of damage,’” Ed Leonard, a partner at San Diego law firm Tyson & Mendes, which represents trucking companies in civil litigation, said. Leonard told the Journal of Commerce that brokers are likely to require higher liability coverage from carriers moving freight, particularly smaller operators with marginal safety records. “They’re going to be asking these trucking companies to buy more insurance,” he said. “This is going to cost more money to get things done.” The ruling could also tighten trucking capacity if higher insurance premiums force some smaller fleets and owner-operators to exit the market, Leonard said. That could place additional upward pressure on freight rates at a time when parts of the trucking industry are already navigating labor and regulatory disruptions. ‘A big deal’ Plaintiff attorneys, meanwhile, said the decision gives crash victims a significant new legal avenue by allowing brokers to be named in lawsuits involving serious injuries and fatalities. “These major trucking accidents result in deaths, amputations and traumatic brain injuries, and this opens the door to brokers, making them a viable defendant,” said Edward Bassett, a partner at Mirick Law and former president of the Association of Plaintiff Interstate Trucking Lawyers of America. “Whether you are popping champagne or Diet Coke at plaintiff firms, this is a big deal.” Bassett said brokers are likely to more carefully scrutinize the carriers they hire, rather than selecting providers primarily on price. “They’re going to start looking carefully at the carriers they hire and not just the cheaper ones,” he said. “They’re being held responsible if they hire fly-by-night companies.” The case decided by the Supreme Court last week stemmed from a 2017 crash in Illinois involving truck driver Shawn Montgomery, who suffered catastrophic injuries and lost a leg after his parked tractor-trailer was struck by another truck. The Supreme Court ruled Montgomery could pursue claims against freight broker C.H. Robinson, which arranged the shipment. Montgomery’s attorneys argued that carrier Caribe Transport II had a poor safety record and that the broker should share liability for hiring it. C.H. Robinson argued that because trucking companies are federally licensed and regulated, brokers should be shielded from state negligence claims tied to carrier safety. The court disagreed, concluding that federal transportation law does not broadly preempt those claims. Federal data under scrutiny The decision could renew debate over trucking insurance minimums, which have remained largely unchanged since the Reagan administration. The Federal Motor Carrier Safety Administration (FMCSA) currently requires minimum liability coverage ranging from $750,000 to $5 million depending on the type of freight being hauled. Since 1985, Congress has repeatedly considered raising those thresholds or indexing them to inflation, but those efforts have stalled. FMCSA studies have suggested current minimums may be insufficient to cover catastrophic crashes and rising medical costs. Industry groups, however, have argued most claims settle below existing coverage requirements and that raising insurance mandates would disproportionately hurt small and midsize carriers by increasing operating costs. “We think it’s a bad decision. We had to be defending these cases before and we’ll be defending them after,” said Nathaniel Saylor, a partner at transportation law firm Scopelitis, Garvin, Light, Hanson & Feary. “The question in these cases before the jury will always be, what is reasonable care. That standard was the standard yesterday and tomorrow as well. Nothing has changed regarding the broker’s duty. But the temperature is up on this issue, and you can expect the plaintiff bar will be pursuing these cases very aggressively.” Saylor said one major issue going forward will be the reliability of FMCSA safety data used by brokers to evaluate carriers, because critics of the system have said the information can be incomplete or outdated. “Brokers are dealing with carriers authorized by the federal government to operate,” Saylor said. “If brokers can be liable, we should at least make sure brokers have the right information available. How is the broker supposed to know that one carrier is more or less safe than another? “More information is good, and it helps,” he added. “With that information, FMCSA can identify unsafe carriers, remove them from the market and ensure the available capacity is safer.” Contact Dan Ronan at contactdanronan@gmail.com .

Trucking News

Truckload

Truck brokers

Trucking labor

Surface

‘Montgomery’ ruling likely to raise pressure on trucking insurance, broker vetting

<div class="phx-topic abstract-wrapper">Paul Bird will be the next chief executive of the Montreal Port Authority as the gateway looks to his infrastructure expertise amid a major expansion project.</div>

Paul Bird will be the next chief executive of the Montreal Port Authority as the gateway looks to his infrastructure expertise amid a major expansion project.

<div class="phx-topic">The Port of Montreal is bringing back former commercial officer Paul Bird as its new chief executive, citing his experience with large-scale projects as the port embarks on its biggest expansion ever. The Montreal Port Authority (MPA) said in a statement Friday that Bird will take over as president and chief executive on June 8. Bird, who had been with the MPA since June 2020, had left to pursue new professional opportunities, the MPA said in March. Much of Bird’s previous tenure at the MPA involved helping shepherd through development of the Contrecoeur marine terminal project, which <a href="https://www.joc.com/article/montreal-expands-to-handle-container-growth-5212062">had been proposed back in 2015</a>. It faced several delays <a href="https://www.joc.com/article/montreal-relaunches-search-process-for-contrecoeur-terminal-operator-5204826">as the port faced difficulties in finding operating partners</a> willing to help finance the project. The MPA has since <a href="https://www.joc.com/article/montreal-port-gets-federal-funds-for-mega-terminal-after-operators-balk-at-risk-5222977">agreed to handle the underwater work at Contrecoeur</a>, with the help of <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">government funding</a> and a recently secured C$1.16 billion loan from the Canada Infrastructure Bank. Citing Bird’s degree in geology and his previous experience with global steel producer ArcelorMittal, the MPA said it was important to have someone with infrastructure experience to develop Contrecoeur, expected to come online in 2030. “Building on significant achievements during his six years at the Port of Montreal, [Bird] is fully committed to contributing actively to the commissioning of the Contrecoeur terminal and to the continued development of new markets,” Nathalie Pilon, chair of the MPA’s board of directors, said in the statement. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The Port of Montreal is bringing back former commercial officer Paul Bird as its new chief executive, citing his experience with large-scale projects as the port embarks on its biggest expansion ever. The Montreal Port Authority (MPA) said in a statement Friday that Bird will take over as president and chief executive on June 8. Bird, who had been with the MPA since June 2020, had left to pursue new professional opportunities, the MPA said in March. Much of Bird’s previous tenure at the MPA involved helping shepherd through development of the Contrecoeur marine terminal project, which had been proposed back in 2015 . It faced several delays as the port faced difficulties in finding operating partners willing to help finance the project. The MPA has since agreed to handle the underwater work at Contrecoeur , with the help of government funding and a recently secured C$1.16 billion loan from the Canada Infrastructure Bank. Citing Bird’s degree in geology and his previous experience with global steel producer ArcelorMittal, the MPA said it was important to have someone with infrastructure experience to develop Contrecoeur, expected to come online in 2030. “Building on significant achievements during his six years at the Port of Montreal, [Bird] is fully committed to contributing actively to the commissioning of the Contrecoeur terminal and to the continued development of new markets,” Nathalie Pilon, chair of the MPA’s board of directors, said in the statement. Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Port of Montreal’s former commercial chief to return as CEO

<div class="phx-topic abstract-wrapper">Vancouver and Prince Rupert recorded solid year-over-year gains in the eastbound trans-Pacific as they focused on improving their intermodal efficiency to the interior of Canada and the US.</div>

Vancouver and Prince Rupert recorded solid year-over-year gains in the eastbound trans-Pacific as they focused on improving their intermodal efficiency to the interior of Canada and the US.

<div class="phx-topic">The Western Canadian ports of Vancouver and Prince Rupert are enhancing their presence in the Asia-North America trade by building on their intermodal advantages in serving the interior of North America, resulting in an increase in imports in the first quarter while their western US counterparts recorded a first-quarter import decline. Containerized imports moving through Vancouver in the first quarter increased 9% year over year, while imports in Prince Rupert grew 7.8%, according to data from Sea-Intelligence Maritime Analysis. Vancouver, Canada’s largest container gateway, serves both the interior of Canada and the US Midwest with direct inland point intermodal (IPI) service. The most obvious advantage this gives Vancouver over US West Coast ports is that “rail costs are significantly lower from Vancouver to the Midwest than from any US port,” Cliff Stewart, vice president of operations for the Vancouver-Fraser Port Authority, told the Journal of Commerce. The rail passage route through the Canadian Rockies to the North American interior is at a much lower altitude than through the US Rocky Mountains, Stewart explained. “It just takes a whole lot less fuel to move a train from Vancouver to Chicago than it does to move a train from either Los Angeles-Long Beach, Northern California or the Puget Sound area,” he said. The Trump administration’s tariffs that were levied on imports from Asia a year ago do not generally influence retailers on how to route their goods because importers must pay the tariffs regardless of whether the containers move through a US or Canadian port, Stewart said. But the tariffs do influence some retailers, namely big-box stores that have outlets in both countries. Those retailers had been shipping their Canadian-destined merchandise as a subcomponent of US shipments from common origins in Asia. The containers entered a US West Coast port, and then the Canadian freight was broken out and moved by truck into Canada. Those big box retailers are now choosing to ship their Canadian freight through Vancouver or Prince Rupert so the Canadian freight is not subject to a US duty, Stewart said. “There’s some repatriation of Canadian-destined cargo back to Canadian ports,” he acknowledged. <h3>US-destined import share declining </h3>That’s not to say that British Columbia ports are growing by focusing only on US-destined cargo. In fact, it’s quite the opposite. The port’s records show that US-destined imports as a percentage of Vancouver’s total import volumes have declined steadily from about 25% in 2010 to about 8% today, Stewart said. Rather, the BC ports are focusing even more on attracting import and export cargo to and from Canada’s interior. “Canada is certainly where the growth is coming from,” said Stewart. Still, some high-volume retailers and importers of high-value merchandise are saving money by shipping through the British Columbia ports to avoid other costs, such as the US Harbor Maintenance Tax, he said. Vancouver has also been attracting cargo destined for the Canadian interior that was moving through Montreal and Halifax before the <a href="https://www.joc.com/article/maersk-mulls-potential-red-sea-return-as-hopes-rise-over-us-iran-deal-6217039">attacks on vessels transiting the Red Sea began more than two years ago</a>, effectively closing the Suez routing and forcing shipowners to take the longer, costlier route around the southern tip of Africa. “It’s cheaper now to come through Vancouver and then rail it to central Canada,” Stewart said. Prince Rupert is likewise experiencing steady growth this year. “We have seen a sustained recovery in all imports compared to previous years,” the port authority said in a statement. This is especially true compared with the first quarter of 2025, when volumes were softer as reconfigured alliances and service strings affected carriers’ arrival schedules, the port said. Prince Rupert, which is also working to <a href="https://www.joc.com/article/prince-rupert-promoting-transload-operations-to-improve-logistics-efficiency-5937532">attract more export cargo as well as imports</a>, is developing an intermodal center close to the port to improve intermodal efficiency. The LinX facility is scheduled to open in 2027. <h3>Sharp declines in NWSA </h3>While Vancouver and Prince Rupert saw their import volumes increase in the first quarter, imports declined by 3.6% in Los Angeles, 5.6% in Long Beach, and 6.8% in Oakland, according to Sea-Intelligence. The Northwest Seaport Alliance of Seattle and Tacoma (NWSA) was especially hard-hit, with first-quarter imports declining 18% year over year. For more than a decade now, US West Coast ports have been losing market share of US imports from Asia to ports along the East and Gulf coasts, given their location closer to major population centers in the eastern half of the country where two-thirds of the US population resides. Still, that share can shift considerably from month to month based on market dynamics and seasonality. In March, the West Coast had a market share of 53.2% for US imports from Asia, with the East Coast at 37.8% and the Gulf Coast at 9%, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. For April, the shares had moved significantly, with the West Coast jumping to 61.9%, the East Coast falling to 30.5%, and the Gulf slipping to 7.6%. The West Coast’s share last month was the highest since last June. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="14122523-b515-4dea-a851-1389ef954bcd"></dynamic-object></div>Competition among US West Coast ports for imports from Asia has become a battle of internal competition, with Los Angeles-Long Beach capitalizing on the steep losses in the NWSA, said Mike Jacob, president of the Pacific Merchant Shipping Association (PMSA). PMSA represents shipping lines and USWC terminal operators on regulatory issues. “You’re looking at an amazing amount of consolidation in Southern California,” Jacob told the Journal of Commerce. Carriers and railroads seek density in freight volumes. Carriers continue to deploy the bulk of their assets in Southern California, which has not only a much larger local population, but also offers intermodal services to most regions to the east, including Dallas, Kansas City, Chicago, Columbus, and Atlanta. Intermodal services from the NWSA are limited primarily to Chicago and the Midwest, Jacob said. “LA-LB isn’t just attempting to claw back market share from the East and Gulf coast ports,” he said. “They’re at the same time consolidating volumes from across the entire West Coast.” In order to stem its loss of cargo and return to growth, Jacob believes the NWSA must double down on its investments in intermodal infrastructure and focus on promoting more efficient, lower-cost IPI service. For its part, the NWSA said it is taking PMSA’s admonition to invest in infrastructure and intermodal efficiency seriously. “The market share trends PMSA has documented are real and we are investing accordingly — in terminal infrastructure, increased intermodal efficiency and aggressive efforts to attract and retain services,” the NWSA said in a statement to the Journal of Commerce. “We are not complacent about our long-term competitive position and instead are doubling down on our best-in-class service and port investment.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The Western Canadian ports of Vancouver and Prince Rupert are enhancing their presence in the Asia-North America trade by building on their intermodal advantages in serving the interior of North America, resulting in an increase in imports in the first quarter while their western US counterparts recorded a first-quarter import decline. Containerized imports moving through Vancouver in the first quarter increased 9% year over year, while imports in Prince Rupert grew 7.8%, according to data from Sea-Intelligence Maritime Analysis. Vancouver, Canada’s largest container gateway, serves both the interior of Canada and the US Midwest with direct inland point intermodal (IPI) service. The most obvious advantage this gives Vancouver over US West Coast ports is that “rail costs are significantly lower from Vancouver to the Midwest than from any US port,” Cliff Stewart, vice president of operations for the Vancouver-Fraser Port Authority, told the Journal of Commerce. The rail passage route through the Canadian Rockies to the North American interior is at a much lower altitude than through the US Rocky Mountains, Stewart explained. “It just takes a whole lot less fuel to move a train from Vancouver to Chicago than it does to move a train from either Los Angeles-Long Beach, Northern California or the Puget Sound area,” he said. The Trump administration’s tariffs that were levied on imports from Asia a year ago do not generally influence retailers on how to route their goods because importers must pay the tariffs regardless of whether the containers move through a US or Canadian port, Stewart said. But the tariffs do influence some retailers, namely big-box stores that have outlets in both countries. Those retailers had been shipping their Canadian-destined merchandise as a subcomponent of US shipments from common origins in Asia. The containers entered a US West Coast port, and then the Canadian freight was broken out and moved by truck into Canada. Those big box retailers are now choosing to ship their Canadian freight through Vancouver or Prince Rupert so the Canadian freight is not subject to a US duty, Stewart said. “There’s some repatriation of Canadian-destined cargo back to Canadian ports,” he acknowledged. US-destined import share declining That’s not to say that British Columbia ports are growing by focusing only on US-destined cargo. In fact, it’s quite the opposite. The port’s records show that US-destined imports as a percentage of Vancouver’s total import volumes have declined steadily from about 25% in 2010 to about 8% today, Stewart said. Rather, the BC ports are focusing even more on attracting import and export cargo to and from Canada’s interior. “Canada is certainly where the growth is coming from,” said Stewart. Still, some high-volume retailers and importers of high-value merchandise are saving money by shipping through the British Columbia ports to avoid other costs, such as the US Harbor Maintenance Tax, he said. Vancouver has also been attracting cargo destined for the Canadian interior that was moving through Montreal and Halifax before the attacks on vessels transiting the Red Sea began more than two years ago , effectively closing the Suez routing and forcing shipowners to take the longer, costlier route around the southern tip of Africa. “It’s cheaper now to come through Vancouver and then rail it to central Canada,” Stewart said. Prince Rupert is likewise experiencing steady growth this year. “We have seen a sustained recovery in all imports compared to previous years,” the port authority said in a statement. This is especially true compared with the first quarter of 2025, when volumes were softer as reconfigured alliances and service strings affected carriers’ arrival schedules, the port said. Prince Rupert, which is also working to attract more export cargo as well as imports , is developing an intermodal center close to the port to improve intermodal efficiency. The LinX facility is scheduled to open in 2027. Sharp declines in NWSA While Vancouver and Prince Rupert saw their import volumes increase in the first quarter, imports declined by 3.6% in Los Angeles, 5.6% in Long Beach, and 6.8% in Oakland, according to Sea-Intelligence. The Northwest Seaport Alliance of Seattle and Tacoma (NWSA) was especially hard-hit, with first-quarter imports declining 18% year over year. For more than a decade now, US West Coast ports have been losing market share of US imports from Asia to ports along the East and Gulf coasts, given their location closer to major population centers in the eastern half of the country where two-thirds of the US population resides. Still, that share can shift considerably from month to month based on market dynamics and seasonality. In March, the West Coast had a market share of 53.2% for US imports from Asia, with the East Coast at 37.8% and the Gulf Coast at 9%, according to PIERS, a sister product of the Journal of Commerce within S&P Global. For April, the shares had moved significantly, with the West Coast jumping to 61.9%, the East Coast falling to 30.5%, and the Gulf slipping to 7.6%. The West Coast’s share last month was the highest since last June. Competition among US West Coast ports for imports from Asia has become a battle of internal competition, with Los Angeles-Long Beach capitalizing on the steep losses in the NWSA, said Mike Jacob, president of the Pacific Merchant Shipping Association (PMSA). PMSA represents shipping lines and USWC terminal operators on regulatory issues. “You’re looking at an amazing amount of consolidation in Southern California,” Jacob told the Journal of Commerce. Carriers and railroads seek density in freight volumes. Carriers continue to deploy the bulk of their assets in Southern California, which has not only a much larger local population, but also offers intermodal services to most regions to the east, including Dallas, Kansas City, Chicago, Columbus, and Atlanta. Intermodal services from the NWSA are limited primarily to Chicago and the Midwest, Jacob said. “LA-LB isn’t just attempting to claw back market share from the East and Gulf coast ports,” he said. “They’re at the same time consolidating volumes from across the entire West Coast.” In order to stem its loss of cargo and return to growth, Jacob believes the NWSA must double down on its investments in intermodal infrastructure and focus on promoting more efficient, lower-cost IPI service. For its part, the NWSA said it is taking PMSA’s admonition to invest in infrastructure and intermodal efficiency seriously. “The market share trends PMSA has documented are real and we are investing accordingly — in terminal infrastructure, increased intermodal efficiency and aggressive efforts to attract and retain services,” the NWSA said in a statement to the Journal of Commerce. “We are not complacent about our long-term competitive position and instead are doubling down on our best-in-class service and port investment.” Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com .

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