<div class="phx-topic abstract-wrapper">The Federal Maritime Commission mailbag is overflowing. The commission received nearly 300 comments </div>

The Federal Maritime Commission mailbag is overflowing. The commission received nearly 300 comments

<div>The Federal Maritime Commission mailbag is overflowing. The commission received nearly 300 comments and letters, mostly in support of five petitions filed by non-vessel-operating common carriers that want the FMC to loosen restrictions placed on them by the Ocean Shipping Reform Act.FMC staffers say it's the largest outpouring of opinion on an FMC issue in recent memory. More importantly, many the comments show an intensity of feeling that the commission should adjust its administration of OSRA to give NVOs a new deal. NVOs have asked the FMC for the authority to sign confidential service contracts, or for relief from what...

The Federal Maritime Commission mailbag is overflowing. The commission received nearly 300 comments and letters, mostly in support of five petitions filed by non-vessel-operating common carriers that want the FMC to loosen restrictions placed on them by the Ocean Shipping Reform Act. FMC staffers say it's the largest outpouring of opinion on an FMC issue in recent memory. More importantly, many the comments show an intensity of feeling that the commission should adjust its administration of OSRA to give NVOs a new deal. NVOs have asked the FMC for the authority to sign confidential service contracts, or for relief from what they see as burdensome and unfair requirements for tariff-filing. The first question before the FMC is whether OSRA authorized the commission to make the changes NVOs want, or whether Congress must re-visit the law. After that, two questions remain: Should NVOs be able to sign service contracts with shippers or be exempted from tariff-filing? And if so, should the FMC act through commission orders, or institute rule-making proceedings? The commission expects to spend several months studying the comments. United Parcel Service wants the commission to authorize the company to sign confidential service contracts with customers - a right now granted only to vessel operators. The company said its massive investment in assets should justify an exemption. UPS demonstrated its political muscle by securing expressions of support from approximately 200 members of Congress and their staffs. Many of the letters are nearly identical. David Bolger, UPS public affairs director in Washington, said members of Congress received copies and a summary of the company's petition, but denied that UPS had provided sample letters. UPS's critics contend that the FMC petition is the first step in asking Congress to revise OSRA. The congressional letters were an impressive show of political force, by a company that has employees in virtually every congressional district, but Bolger denied that they were meant to intimidate the FMC. "We're sending the message that this is important to us, and we're not alone," he said. "Members of Congress expressed interest in the subject, and expressed their support." UPS also solicited support from customers and employees. The Machinists Union, representing 6,000 UPS maintenance employees, wrote that it is "imperative that UPS be able to compete fairly with foreign-owned vessel operators in a competitive, worldwide market." The union's support is in contrast to opposition from the International Longshoremen's Association and the International Longshore and Warehouse Union, which have never forgiven NVOs for taking over the dock unions' container consolidation and deconsolidation work more than 25 years ago. The World Shipping Council, representing more than 40 ocean carriers, said that if UPS wants to be treated like a vessel operator, it should charter ships. The council said such a move "would be no stretch at all" for a company the size of UPS, which had $31.3 billion in revenue last year. The council said, though, that it would not object if the commission considered an alternative proposal by the National Customs Brokers and Forwarders Association to allow NVOs to have "range rates" in the tariff as a framework for negotiating with customers. The NCBFAA's petition seeking relief from OSRA's tariff-filing requirements received 49 letters of support from NVO members, said Edward Greenberg, the association's regulatory attorney. The NCBFAA supports the UPS petition, as well as three others filed by BAX Global, Ocean World Lines and C.H. Robinson Worldwide. "It's an industry issue," Greenberg said. "How do you deal with the shift between common carriage and contract carriage?" Greenberg said nothing in OSRA explicitly prohibits NVOs from signing service contracts. When Congress passed OSRA in 1998, vessel operators won the authority to enter confidential contracts, but NVOs were not mentioned. In legal terms, UPS is asking for affirmation that it can enter service contracts. In contrast, the NCBFAA and other petitioners are asking the FMC to exercise its exemption authority to change the tariff-filing requirements. The World Shipping Council said the FMC lacks the affirmative authority to give NVOs the authority to sign service contracts. The OSRA section that outlines the commission's exemption authority "does not authorize the commission to expand statutory rights . . . Instead it authorizes the commission to remove requirements that the act imposes." The National Industrial Transportation League, the shipper organization that was the leading force behind enactment of OSRA, noted that carriers have expanded their logistics services, and said NVOs should be able to respond to the competitive pressure. "Congress did not statutorily declare that NVOCCs should be prohibited from entering into service contracts . . . Congress left to the FMC's discretion to determine . . . whether to expand service contracting to NVOCCs at a later date," the league said. "NVOCCs could better contribute to a healthy and competitive ocean shipping landscape if they are allowed to offer service contracts to shippers," the NIT League said. The NVOs' petitions to the FMC have revived debate over whether the commission should enforce the letter of OSRA, or the spirit of the law. Five years after OSRA's enactment, opposing sides see enough ambiguity in the law to inspire passionate debate about what Congress really intended when it gave the FMC the authority to grant exemptions to the law. Bill McInerny, president of Phoenix International in Wood Dale, Ill., has been crusading against tariff-filing since 1988. In 1991, his company was one of a dozen companies that asked the FMC to exempt them from the shipping act's tariff requirements. The commission turned down that petition on a tie vote. McInerny wrote eight letters in support of all five petitions. "We want the FMC to know that this isn't just UPS. The industry is behind this," he said. He said tariff-filing is costly, both in dollars and the time it takes employees to update rates. "We should be able to discuss pricing with our customers, just as we do for air and truck. Buyer and seller agree on a price, and they're all happy," he said. "In all the years we have been in business, no customer has gone to the FMC to check his rate." He said NVOs are unanimous in their desire to persuade the FMC to change their treatment under the law. But McInerny said the commission will be more effective in administering the law. "If it goes to Congress, nothing will happen," he said. "It's too difficult to get a bill filed. The status quo has the advantage."

Forwarding

FMC gets an earful

<div class="phx-topic abstract-wrapper">Hapag could leverage Zim-owned Gold Star Line’s ready-made ro/ro fleet to expand its offering in the breakbulk market, but overcapacity provides potential headwinds. </div>

Hapag could leverage Zim-owned Gold Star Line’s ready-made ro/ro fleet to expand its offering in the breakbulk market, but overcapacity provides potential headwinds.

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<div class="phx-topic">Hapag-Lloyd’s <a href="https://www.joc.com/article/hapag-lloyd-bolsters-fleet-with-42-billion-deal-to-acquire-zim-6170540">planned $4.2 billion takeover of Zim Integrated Shipping Services</a> offers an opportunity to develop the car carrier business established by Zim’s Hong Kong-headquartered affiliate Gold Star Line (GSL), shipping executives say. GSL currently operates two roll-on/roll-off (ro/ro) services linking Asia and Latin America and Asia with Africa. The Gold Star Pacific Vehicle Carrier (GPL) service includes calls at Shanghai, Masan (South Korea) and Yokohama, linking with Mazatlan and Lazaro Cardenas in Mexico, Buenaventura (Colombia) and San Antonio (Chile). Current vessel schedules show on-demand inducement calls at California’s Port Hueneme and Manta in Ecuador. Similarly, the VEC service includes calls such as Kobe (Japan), Taicang and Shanghai in China, Mombasa (Kenya) and Dar es Salaam (Tanzania). Vessels listed under the same service are also calling at Paranagua in Brazil and Victoria in Spain in the next few weeks. Gold Star’s car carriers also call at Ashdod in Israel. GSL has developed its car carrier operations through specialized business, “targeting niche trades where we can provide a competitive service,” a senior source close to the company told the Journal of Commerce. “As a global operator, we have an ability to pivot quickly and efficiently towards areas to help our customers and their pain points,” the executive added. A third GSL ro/ro service connecting Asia and Europe has been suspended, although it could be reinstated. <h3>Operating a lean fleet </h3>Esgian, an Oslo, Norway-headquartered maritime consultant, said Gold Star Line has trimmed its ro/ro operations in the last few months. “Our data shows GSL currently operates a ro/ro fleet of 13 vessels,” Mijeong Jang Rolfsen, Esgian’s senior market impact analyst/shipping, told the Journal of Commerce. The vessels vary in size between 4,000 and 6,500 car equivalent units (CEU) and are mostly chartered from other operators including Gram Car Carriers, Zodiac Maritime and Cido Shipping. “In terms of commercial footprint, Gold Star Line recorded 72 port calls in Q4 2025, which is 12% down from the previous quarter (Q3 2025), spanning Asia with services extending to South America and selected ports in Africa,” Rolfsen said. Captain Igal Dafni, who was Gold Star Line’s managing director in the early 2000s, said GSL’s ro/ro services are potentially a new source of business for Hapag-Lloyd. Dafni agreed Hapag-Lloyd could use the moves into the car carrier sector by rival container lines Mediterranean Shipping Co. and CMA CGM as a blueprint for its own expansion into the market, using GSL’s existing network as the foundation. “But I’m not sure what it will do,” he said. MSC entered the vehicle carrier sector in 2024 after acquiring Gram Car Carriers and has a fleet of approximately 20 pure car and truck carriers. CMA CGM operates ro/ro services in the Mediterranean and North Africa. <h3>Flurry of new vessels pressurizing the sector </h3>While GSL is focused on bespoke services which should be more profitable, the wider car carrier sector is facing increasing headwinds, especially potential overcapacity that could hit freight rates. “There is a huge backlog of new vessels to be delivered between 2026-2030 which will create significant pressure for tonnage providers and operators,” a senior executive at a European freight forwarder specializing in the vehicle carrier sector told the Journal of Commerce. British shipbroker Clarksons said there are 140 car carriers on order, equivalent to 16% of the existing fleet of 899 ships, although 27% of the fleet is over 20 years old and likely candidates for scrapping. “So, I am not so sure the sector will continue to boom and (be)...a great market to enter, especially if you are not well established,” the forwarding executive said. “It could be Hapag-Lloyd will keep GSL’s existing car carrier services until they feel comfortable and see how things turn out.” Hapag-Lloyd and Gold Star Line executives told the Journal of Commerce it was too early to comment on how the Hamburg-based carrier would develop GSL’s business. Contact Keith Wallis on <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Hapag-Lloyd’s planned $4.2 billion takeover of Zim Integrated Shipping Services offers an opportunity to develop the car carrier business established by Zim’s Hong Kong-headquartered affiliate Gold Star Line (GSL), shipping executives say. GSL currently operates two roll-on/roll-off (ro/ro) services linking Asia and Latin America and Asia with Africa. The Gold Star Pacific Vehicle Carrier (GPL) service includes calls at Shanghai, Masan (South Korea) and Yokohama, linking with Mazatlan and Lazaro Cardenas in Mexico, Buenaventura (Colombia) and San Antonio (Chile). Current vessel schedules show on-demand inducement calls at California’s Port Hueneme and Manta in Ecuador. Similarly, the VEC service includes calls such as Kobe (Japan), Taicang and Shanghai in China, Mombasa (Kenya) and Dar es Salaam (Tanzania). Vessels listed under the same service are also calling at Paranagua in Brazil and Victoria in Spain in the next few weeks. Gold Star’s car carriers also call at Ashdod in Israel. GSL has developed its car carrier operations through specialized business, “targeting niche trades where we can provide a competitive service,” a senior source close to the company told the Journal of Commerce. “As a global operator, we have an ability to pivot quickly and efficiently towards areas to help our customers and their pain points,” the executive added. A third GSL ro/ro service connecting Asia and Europe has been suspended, although it could be reinstated. Operating a lean fleet Esgian, an Oslo, Norway-headquartered maritime consultant, said Gold Star Line has trimmed its ro/ro operations in the last few months. “Our data shows GSL currently operates a ro/ro fleet of 13 vessels,” Mijeong Jang Rolfsen, Esgian’s senior market impact analyst/shipping, told the Journal of Commerce. The vessels vary in size between 4,000 and 6,500 car equivalent units (CEU) and are mostly chartered from other operators including Gram Car Carriers, Zodiac Maritime and Cido Shipping. “In terms of commercial footprint, Gold Star Line recorded 72 port calls in Q4 2025, which is 12% down from the previous quarter (Q3 2025), spanning Asia with services extending to South America and selected ports in Africa,” Rolfsen said. Captain Igal Dafni, who was Gold Star Line’s managing director in the early 2000s, said GSL’s ro/ro services are potentially a new source of business for Hapag-Lloyd. Dafni agreed Hapag-Lloyd could use the moves into the car carrier sector by rival container lines Mediterranean Shipping Co. and CMA CGM as a blueprint for its own expansion into the market, using GSL’s existing network as the foundation. “But I’m not sure what it will do,” he said. MSC entered the vehicle carrier sector in 2024 after acquiring Gram Car Carriers and has a fleet of approximately 20 pure car and truck carriers. CMA CGM operates ro/ro services in the Mediterranean and North Africa. Flurry of new vessels pressurizing the sector While GSL is focused on bespoke services which should be more profitable, the wider car carrier sector is facing increasing headwinds, especially potential overcapacity that could hit freight rates. “There is a huge backlog of new vessels to be delivered between 2026-2030 which will create significant pressure for tonnage providers and operators,” a senior executive at a European freight forwarder specializing in the vehicle carrier sector told the Journal of Commerce. British shipbroker Clarksons said there are 140 car carriers on order, equivalent to 16% of the existing fleet of 899 ships, although 27% of the fleet is over 20 years old and likely candidates for scrapping. “So, I am not so sure the sector will continue to boom and (be)...a great market to enter, especially if you are not well established,” the forwarding executive said. “It could be Hapag-Lloyd will keep GSL’s existing car carrier services until they feel comfortable and see how things turn out.” Hapag-Lloyd and Gold Star Line executives told the Journal of Commerce it was too early to comment on how the Hamburg-based carrier would develop GSL’s business. Contact Keith Wallis on keithwallis@hotmail.com .

Ro/ro cargo

Breakbulk News

Maritime

Zim deal offers Hapag-Lloyd entry into niche car carrier market  

<div class="phx-topic abstract-wrapper">Europe’s largest port handled 14.2 million TEUs during what was described by its CEO as “a challenging year” set against a backdrop of escalating geopolitical tensions. </div>

Europe’s largest port handled 14.2 million TEUs during what was described by its CEO as “a challenging year” set against a backdrop of escalating geopolitical tensions.

<div class="phx-topic">Container volume at the Port of Rotterdam grew 3.1% in 2025, driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. But the volume growth at Europe’s largest port was held back by ongoing congestion last year as carrier alliance restructuring saw “a significant amount of throughput volume” being diverted to other ports, Rotterdam said in a statement Thursday. A total of 14.2 million TEUs crossed Rotterdam’s busy wharves in 2025, which was “a challenging year” that came against “a backdrop of further escalating geopolitical tensions,” according to Boudewijn Siemons, CEO of the Port of Rotterdam Authority. “Chemical and logistics companies in our port were under considerable pressure and European industry was affected by increasing global competition,” Siemons said. “A continued focus on resilience, agility and intensive cooperation at the national and European level is crucial in this regard — both for the supply chain and for industry,” he added. Rotterdam’s imports of 6.8 million TEUs for the full year were down 5.7% year over year, but within those numbers was a 9.3% increase in imports from Asia and a 13.6% increase in two-way trade with North America. Total exports were up 12.7% at 7.4 million TEUs. <h3>Europe’s competitive position eroding </h3>The port said Europe’s deteriorating competitive position across several industries placed downward pressure on container volume and transshipment, leading to greater throughput of empty containers. The eroding competitive position of European industry also weighed heavily on Rotterdam’s steel, coal and raw materials bulk shipments, with concerns raised by the port over lagging investment in industry by the business community. Over the past 12 months, several chemical companies have announced plans to close their factories in Rotterdam, and investments in new and ongoing projects have been halted, primarily in renewable fuels, the port statement noted. “The measures taken by the government in 2025 are positive, but insufficient to level the playing field in the Netherlands with that in Europe,” the port said. “Additionally, competition from countries such as China remains evident.” The government measures focused on providing more predictable tax policies for industry, enhancing innovation in key technological sectors and reducing the regulatory burden. From a eurozone perspective, there was positive news in the latest Purchasing Managers’ Index (PMI) compiled by Hamburg Commercial Bank and Journal of Commerce parent S&amp;P Global. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said Europe’s manufacturing sector could be at a turning point, with the headline PMI in February showing business activity rising at its fastest pace in three months. “Overall, it seems that the manufacturing sector is on a more stable footing and could contribute to overall growth this year instead of being a drag for the economy,” de la Rubia wrote in his analysis of the PMI results. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>. </div>

Container volume at the Port of Rotterdam grew 3.1% in 2025, driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. But the volume growth at Europe’s largest port was held back by ongoing congestion last year as carrier alliance restructuring saw “a significant amount of throughput volume” being diverted to other ports, Rotterdam said in a statement Thursday. A total of 14.2 million TEUs crossed Rotterdam’s busy wharves in 2025, which was “a challenging year” that came against “a backdrop of further escalating geopolitical tensions,” according to Boudewijn Siemons, CEO of the Port of Rotterdam Authority. “Chemical and logistics companies in our port were under considerable pressure and European industry was affected by increasing global competition,” Siemons said. “A continued focus on resilience, agility and intensive cooperation at the national and European level is crucial in this regard — both for the supply chain and for industry,” he added. Rotterdam’s imports of 6.8 million TEUs for the full year were down 5.7% year over year, but within those numbers was a 9.3% increase in imports from Asia and a 13.6% increase in two-way trade with North America. Total exports were up 12.7% at 7.4 million TEUs. Europe’s competitive position eroding The port said Europe’s deteriorating competitive position across several industries placed downward pressure on container volume and transshipment, leading to greater throughput of empty containers. The eroding competitive position of European industry also weighed heavily on Rotterdam’s steel, coal and raw materials bulk shipments, with concerns raised by the port over lagging investment in industry by the business community. Over the past 12 months, several chemical companies have announced plans to close their factories in Rotterdam, and investments in new and ongoing projects have been halted, primarily in renewable fuels, the port statement noted. “The measures taken by the government in 2025 are positive, but insufficient to level the playing field in the Netherlands with that in Europe,” the port said. “Additionally, competition from countries such as China remains evident.” The government measures focused on providing more predictable tax policies for industry, enhancing innovation in key technological sectors and reducing the regulatory burden. From a eurozone perspective, there was positive news in the latest Purchasing Managers’ Index (PMI) compiled by Hamburg Commercial Bank and Journal of Commerce parent S&P Global. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said Europe’s manufacturing sector could be at a turning point, with the headline PMI in February showing business activity rising at its fastest pace in three months. “Overall, it seems that the manufacturing sector is on a more stable footing and could contribute to overall growth this year instead of being a drag for the economy,” de la Rubia wrote in his analysis of the PMI results. Contact Greg Knowler at  greg.knowler@spglobal.com . 

Trans-Atlantic

Asia-Europe

International ports

Rotterdam congestion limits benefit of second-half surge in imports

<div class="phx-topic abstract-wrapper">Premier Alliance carriers may not have the most chips in the game, but in a world where all the alliances are competing to provide the best product, they can inject some very useful capacity to enhance particular trade lanes, writes Jeremy Masters.</div>

Premier Alliance carriers may not have the most chips in the game, but in a world where all the alliances are competing to provide the best product, they can inject some very useful capacity to enhance particular trade lanes, writes Jeremy Masters.

<div class="phx-topic">Recent articles on <a href="https://www.joc.com/article/hapag-lloyd-bolsters-fleet-with-42-billion-deal-to-acquire-zim-6170540">Hapag Lloyd’s acquisition of Zim Integrated Shipping Services</a> have naturally focused on the additional critical mass it brings the fifth-largest carrier. It also has some signals for others. If we look at the top 10 carriers, we see the following existing TEU fleet size and capacity on order as of December 2025, (courtesy of Alphaliner): <div class="wrapper-full"><table><colgroup><col width="25%"></col><col width="25%"></col><col width="25%"></col><col width="25%"></col></colgroup><thead><tr><th>Company</th><th class="align-right">Existing Capacity</th><th class="align-right">On Order</th><th class="align-right">Total</th></tr></thead><tbody><tr><td>MSC                </td><td class="align-right">7,080,958</td><td class="align-right">2,102,992</td><td class="align-right">9,183,950</td></tr><tr><td>Maersk            </td><td class="align-right">4,602,633</td><td class="align-right">834,770</td><td class="align-right">5,437,403</td></tr><tr><td>CMA CGM </td><td class="align-right">4,081,155</td><td class="align-right"> 1,909,846</td><td class="align-right"> 5,991,001</td></tr><tr><td>Cosco </td><td class="align-right"> 3,553,514</td><td class="align-right">1,168,612</td><td class="align-right">4,722,126</td></tr><tr><td>Hapag-Lloyd</td><td class="align-right">2,412,728</td><td class="align-right">415,220</td><td class="align-right">2,827,948 </td></tr><tr><td>ONE </td><td class="align-right">2,050,500</td><td class="align-right">611,304</td><td class="align-right"> 2,661,804</td></tr><tr><td>Evergreen       </td><td class="align-right">1,938,786</td><td class="align-right">853,113</td><td class="align-right">2,791,899</td></tr><tr><td>HMM               </td><td class="align-right">1,016,180</td><td class="align-right">190,192</td><td class="align-right">1,206,372</td></tr><tr><td>Yang Ming</td><td class="align-right">717,715</td><td class="align-right">236,660</td><td class="align-right">954,375</td></tr><tr><td>Zim</td><td class="align-right">703,598</td><td class="align-right">163,128</td><td class="align-right">866,726</td></tr></tbody><tfoot><tr><td colspan="4">Source: Alphaliner</td></tr></tfoot></table></div>Switching to consortium carriers, combined existing capacity plus that on order (counting Mediterranean Shipping Co. as a consortium) leaves us with total TEU fleet sizes as follows: <div class="wrapper-full"><table><colgroup><col width="50%"></col><col width="50%"></col></colgroup><thead><tr><th>Company</th><th class="align-right">Fleet Size</th></tr></thead><tbody><tr><td>MSC </td><td class="align-right">9,183,950</td></tr><tr><td>Maersk and HL (including Zim)</td><td class="align-right">9,132,077</td></tr><tr><td>CMA CGM, Cosco and Evergreen</td><td class="align-right">13,505,026</td></tr><tr><td>ONE, HMM and Yang Ming</td><td class="align-right">4,822,551</td></tr></tbody><tfoot><tr><td colspan="2">Alphaliner</td></tr></tfoot></table></div>Of course, relative total fleet capacities do not correlate with relative capacities deployed in the consortium trades, but the above gives a clear guide to overall future strength as it stands. <h3>Significant variation in firepower </h3>MSC continues to surge ahead on both new buildings and second-hand acquisitions, and it would not be a surprise if their ultimate objective is a 30% share of total capacity (they currently sit at 21.5%). The Ocean Alliance of CMA CGM, Cosco (and OOCL), and Evergreen stands out as the biggest consortium by some margin, and the order book reinforces that. The agreement has been extended until 2032, all of the partners are strong, and unless politics gets in the way, this cooperation looks very solid. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6176395_0.1.jpg"></img></div>Whether or not the Zim transaction is completed and however that capacity is operated, Gemini Cooperation has critical mass and, of course, has differentiated itself by its drive for schedule reliability. The current joint vision is clear. The future one may be less so until Maersk’s integrated logistics adventure fully unfolds. Of course, the number that sticks out the most is the capacity of the Premier Alliance carriers of Ocean Network Express, HMM and Yang Ming. After newbuildings, it is 36% of the Ocean Alliance carriers and 53% of MSC and the Gemini carriers, including Zim. Previous articles have visited why capacity is not everything in a consortium and why THE Alliance (now Premier) carriers left behind by Hapag-Lloyd had more options than was originally perceived. Premier moved forward with great dexterity, and multi-trade viability was clutched from the jaws of impending marginalization. Slot exchanges with MSC on the Asia-to-Europe trade, slot purchases from Ocean Alliance to the North American West Coast, and joint services/slotting with Ocean Alliance on the trans-Atlantic were a critical part of that solution. <h3>Options for Premier </h3>Premier may not have the most chips in the game, but in a world where all the alliances are competing to provide the best product, they can inject some very useful capacity to enhance particular trade lanes. They also have enough capacity that any streamlined services they operate have the ability to be market disruptive, so there is an element of “keeping your enemy close,” or to be more exact, under control. On the flip side, we are about to enter a sustained period of structural overcapacity that could have negative effects on Premier as follows: other consortiums taking capacity out and streamlining services, which may reduce their need/desire for using capacity from outside their alliance members; and financial results coming under pressure, with those carriers with less economies of scale feeling the pinch first. Still, we are nowhere near a crisis point in the industry, and the carriers still have some potential to stabilize things. Given Premier’s strategic position, however, they may need to revisit their options calmly before any storm hits. Some potential areas: 1) ONE buying HMM or Yang Ming to consolidate their strength and reduce the vulnerability of Premier. 2) ONE, HMM or Yang Ming ramping up capacity by buying one or more carriers outside the top 10, or otherwise acquiring additional capacity (although in the current situation, any net addition of capacity would further exacerbate overcapacity). 3) Inviting one of the bigger carriers outside the top 10 such as Wan Hai or PIL to join Premier. 4) Recalibrating consortium trade focus. There is no rule that says the main consortiums need to be focused exclusively on east-west trades. If problems do hit, Premier also has the option to rationalize its east-west network and pick its spots where it can build competitive products. In that situation, it will certainly want to positively differentiate its physical or customer service product as Gemini has done with schedule reliability. The Premier Alliance carriers have proven they can be agile and inventive, and they will need to be again. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

Recent articles on Hapag Lloyd’s acquisition of Zim Integrated Shipping Services have naturally focused on the additional critical mass it brings the fifth-largest carrier. It also has some signals for others. If we look at the top 10 carriers, we see the following existing TEU fleet size and capacity on order as of December 2025, (courtesy of Alphaliner): Company Existing Capacity On Order Total MSC                 7,080,958 2,102,992 9,183,950 Maersk            4,602,633 834,770 5,437,403 CMA CGM 4,081,155 1,909,846 5,991,001 Cosco 3,553,514 1,168,612 4,722,126 Hapag-Lloyd 2,412,728 415,220 2,827,948 ONE 2,050,500 611,304 2,661,804 Evergreen       1,938,786 853,113 2,791,899 HMM               1,016,180 190,192 1,206,372 Yang Ming 717,715 236,660 954,375 Zim 703,598 163,128 866,726 Source: Alphaliner Switching to consortium carriers, combined existing capacity plus that on order (counting Mediterranean Shipping Co. as a consortium) leaves us with total TEU fleet sizes as follows: Company Fleet Size MSC 9,183,950 Maersk and HL (including Zim) 9,132,077 CMA CGM, Cosco and Evergreen 13,505,026 ONE, HMM and Yang Ming 4,822,551 Alphaliner Of course, relative total fleet capacities do not correlate with relative capacities deployed in the consortium trades, but the above gives a clear guide to overall future strength as it stands. Significant variation in firepower MSC continues to surge ahead on both new buildings and second-hand acquisitions, and it would not be a surprise if their ultimate objective is a 30% share of total capacity (they currently sit at 21.5%). The Ocean Alliance of CMA CGM, Cosco (and OOCL), and Evergreen stands out as the biggest consortium by some margin, and the order book reinforces that. The agreement has been extended until 2032, all of the partners are strong, and unless politics gets in the way, this cooperation looks very solid. Whether or not the Zim transaction is completed and however that capacity is operated, Gemini Cooperation has critical mass and, of course, has differentiated itself by its drive for schedule reliability. The current joint vision is clear. The future one may be less so until Maersk’s integrated logistics adventure fully unfolds. Of course, the number that sticks out the most is the capacity of the Premier Alliance carriers of Ocean Network Express, HMM and Yang Ming. After newbuildings, it is 36% of the Ocean Alliance carriers and 53% of MSC and the Gemini carriers, including Zim. Previous articles have visited why capacity is not everything in a consortium and why THE Alliance (now Premier) carriers left behind by Hapag-Lloyd had more options than was originally perceived. Premier moved forward with great dexterity, and multi-trade viability was clutched from the jaws of impending marginalization. Slot exchanges with MSC on the Asia-to-Europe trade, slot purchases from Ocean Alliance to the North American West Coast, and joint services/slotting with Ocean Alliance on the trans-Atlantic were a critical part of that solution. Options for Premier Premier may not have the most chips in the game, but in a world where all the alliances are competing to provide the best product, they can inject some very useful capacity to enhance particular trade lanes. They also have enough capacity that any streamlined services they operate have the ability to be market disruptive, so there is an element of “keeping your enemy close,” or to be more exact, under control. On the flip side, we are about to enter a sustained period of structural overcapacity that could have negative effects on Premier as follows: other consortiums taking capacity out and streamlining services, which may reduce their need/desire for using capacity from outside their alliance members; and financial results coming under pressure, with those carriers with less economies of scale feeling the pinch first. Still, we are nowhere near a crisis point in the industry, and the carriers still have some potential to stabilize things. Given Premier’s strategic position, however, they may need to revisit their options calmly before any storm hits. Some potential areas: 1) ONE buying HMM or Yang Ming to consolidate their strength and reduce the vulnerability of Premier. 2) ONE, HMM or Yang Ming ramping up capacity by buying one or more carriers outside the top 10, or otherwise acquiring additional capacity (although in the current situation, any net addition of capacity would further exacerbate overcapacity). 3) Inviting one of the bigger carriers outside the top 10 such as Wan Hai or PIL to join Premier. 4) Recalibrating consortium trade focus. There is no rule that says the main consortiums need to be focused exclusively on east-west trades. If problems do hit, Premier also has the option to rationalize its east-west network and pick its spots where it can build competitive products. In that situation, it will certainly want to positively differentiate its physical or customer service product as Gemini has done with schedule reliability. The Premier Alliance carriers have proven they can be agile and inventive, and they will need to be again. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

Container lines

After Hapag-Zim deal, Premier Alliance may be next in the spotlight

<div class="phx-topic abstract-wrapper">The widely used freight forwarding software vendor said artificial intelligence is enabling it to reduce staff in roles that include programming, product development and customer service.</div>

The widely used freight forwarding software vendor said artificial intelligence is enabling it to reduce staff in roles that include programming, product development and customer service.

<div class="phx-topic">WiseTech Global will lay off approximately 2,000 of its employees — nearly 30% of its current workforce — over the next two years because of the efficiencies artificial intelligence will bring to its ability to develop products and interact with customers, the forwarding software vendor said Wednesday. The announcement overshadowed WiseTech’s earnings release for the first half of its fiscal year and sparked a double-digit spike in the company’s share price. WiseTech CEO Zubin Appoo explained in a pre-recorded video message that the workforce reduction was due to the progression of AI tools, those developed internally and by the largest AI model developers such as Anthropic, OpenAI and Google. Cuts will come from roles that include programming, product development, and customer service. “This decision was not taken lightly, but it was necessary to ensure we stay disciplined, nimble, competitive, and future-ready,” Appoo said in the video. “A transformation of this scale will fundamentally reshape our cost base while allowing for an uplift in productivity.” The move comes months after Australia-based WiseTech shook the market <a href="https://www.joc.com/article/cargowises-pricing-model-change-could-mark-final-milestone-in-market-ascent-6133279">with a pricing model change</a> that affected virtually all of its forwarder, customs brokers and third-party logistics provider customers. It also comes as WiseTech integrates its <a href="https://www.joc.com/article/wisetech-makes-2-billion-gamble-on-overturning-complicated-software-history-6013221">largest-ever acquisition</a>, a $2.1 billion purchase of E2open last May, one that expanded the company’s customer reach from 3PLs to shippers. Taken together, those moves could be seen as WiseTech prepping itself for a future where AI transforms how software is built, sold and used, rather than waiting for those changes to undermine its business. WiseTech’s planned layoffs and its emphasis on AI can also be seen as a warning shot to software providers that either act as agentic layers on top of CargoWise — WiseTech’s flagship product — or focus on automating processes inside of CargoWise. Either way, the news will surely reverberate around the market, with software companies that have a fraction of WiseTech’s revenue and a lower operating margin asking themselves if their headcount is optimal given the impact AI is having. The move to cut a significant portion of its workforce should also be viewed through the lens that WiseTech must juggle public market scrutiny in a way that privately-held logistics technology providers do not. The narrative around AI potentially eroding the value of publicly-traded software vendors and data providers has surely spooked companies into showing that they are indeed ready for what AI will do to their products, customers, market share and profit margin. <h3>Revenue growth </h3>The announcement of layoffs comes as WiseTech reported solid financials for the first half of its fiscal year. The company posted operating profits of $252.1 million for the period between July 1 and Dec. 31 on revenue of $672 million, an operating margin of 38%. Total revenue in the first half increased 76% year over year, but much of that growth was attributable to the addition of E2open revenue. Organic revenue growth in the period was 12% Additionally, the company said it has lessened its reliance on its biggest customers over the past year, with 23% of its revenue coming from its top 20 customers in the first half of its current fiscal year, down from 33% in the same period in 2025. Another development worth noting from WiseTech’s fiscal year first-half earnings is its continued focus around building a one-stop shop for logistics software, one that encompasses international and domestic freight procurement, execution, payment and analytics, alongside trade compliance and accounting. The company is not there yet, as most of its customer base is still tied to international forwarding or customs compliance, but the intent is to move in that direction. WiseTech’s share price rose 11% Wednesday on the Australian stock exchange after the planned layoffs were announced. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

WiseTech Global will lay off approximately 2,000 of its employees — nearly 30% of its current workforce — over the next two years because of the efficiencies artificial intelligence will bring to its ability to develop products and interact with customers, the forwarding software vendor said Wednesday. The announcement overshadowed WiseTech’s earnings release for the first half of its fiscal year and sparked a double-digit spike in the company’s share price. WiseTech CEO Zubin Appoo explained in a pre-recorded video message that the workforce reduction was due to the progression of AI tools, those developed internally and by the largest AI model developers such as Anthropic, OpenAI and Google. Cuts will come from roles that include programming, product development, and customer service. “This decision was not taken lightly, but it was necessary to ensure we stay disciplined, nimble, competitive, and future-ready,” Appoo said in the video. “A transformation of this scale will fundamentally reshape our cost base while allowing for an uplift in productivity.” The move comes months after Australia-based WiseTech shook the market with a pricing model change that affected virtually all of its forwarder, customs brokers and third-party logistics provider customers. It also comes as WiseTech integrates its largest-ever acquisition , a $2.1 billion purchase of E2open last May, one that expanded the company’s customer reach from 3PLs to shippers. Taken together, those moves could be seen as WiseTech prepping itself for a future where AI transforms how software is built, sold and used, rather than waiting for those changes to undermine its business. WiseTech’s planned layoffs and its emphasis on AI can also be seen as a warning shot to software providers that either act as agentic layers on top of CargoWise — WiseTech’s flagship product — or focus on automating processes inside of CargoWise. Either way, the news will surely reverberate around the market, with software companies that have a fraction of WiseTech’s revenue and a lower operating margin asking themselves if their headcount is optimal given the impact AI is having. The move to cut a significant portion of its workforce should also be viewed through the lens that WiseTech must juggle public market scrutiny in a way that privately-held logistics technology providers do not. The narrative around AI potentially eroding the value of publicly-traded software vendors and data providers has surely spooked companies into showing that they are indeed ready for what AI will do to their products, customers, market share and profit margin. Revenue growth The announcement of layoffs comes as WiseTech reported solid financials for the first half of its fiscal year. The company posted operating profits of $252.1 million for the period between July 1 and Dec. 31 on revenue of $672 million, an operating margin of 38%. Total revenue in the first half increased 76% year over year, but much of that growth was attributable to the addition of E2open revenue. Organic revenue growth in the period was 12% Additionally, the company said it has lessened its reliance on its biggest customers over the past year, with 23% of its revenue coming from its top 20 customers in the first half of its current fiscal year, down from 33% in the same period in 2025. Another development worth noting from WiseTech’s fiscal year first-half earnings is its continued focus around building a one-stop shop for logistics software, one that encompasses international and domestic freight procurement, execution, payment and analytics, alongside trade compliance and accounting. The company is not there yet, as most of its customer base is still tied to international forwarding or customs compliance, but the intent is to move in that direction. WiseTech’s share price rose 11% Wednesday on the Australian stock exchange after the planned layoffs were announced. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Supply chain

WiseTech says to cut nearly 30% of workforce as it preps for AI era

<div class="phx-topic abstract-wrapper">Nixon, one of the most recognized executives in container shipping, led the transformation of legacy Japanese carriers K Line, MOL and NYK into a unified global company based in Singapore. </div>

Nixon, one of the most recognized executives in container shipping, led the transformation of legacy Japanese carriers K Line, MOL and NYK into a unified global company based in Singapore.

<div class="phx-topic">Ocean Network Express CEO Jeremy Nixon will step down on July 1 from the leadership position he has held since ONE’s inception in 2018 and turn over the helm to industry veteran Till Ole Barrelet. The change was part of a “planned leadership transition” and will not have any impact on customers, the carrier said in a statement Wednesday. Nixon is one of the most recognized executives in container shipping and will stay on with ONE as a senior advisor after Barrelet becomes CEO. “Leading ONE from day one has been the defining chapter of my career,” Nixon said in the statement. “Now is the right time for new leadership, and I am very confident in Till’s ability to lead ONE forward.” Barrelet has more than 20 years of maritime and logistics experience, most recently serving as CEO of Emirates Shipping Line. He has expertise in ship owning, financing, container shipping and trade development across Asia, the Middle East, Europe and Africa. In addition to a change at the top, ONE will transition to a new executive management team structure comprising the CEO and seven representatives from across all the carrier’s divisions. The new executive team, together with six regional leaders, will report into the CEO. “As our founding CEO, Jeremy has helped build ONE from the ground up, establishing our corporate culture and market position,” said Jotaro Tamura, representative director and chairman of Ocean Network Express Holdings. Nixon has been a regular presence at the Journal of Commerce’s TPM conference in Long Beach, and will speak at TPM26 next Monday. <h3>Transforming three Japanese carriers </h3>As CEO of ONE, Nixon presided over the transformation of the container segments of legacy Japanese carriers K Line, MOL and NYK into a unified global container shipping company based in Singapore. Prior to taking the top job at ONE, he headed up the container division at NYK and served in senior management positions at P&amp;O Nedlloyd and Maersk. Under his stewardship, ONE’s fleet grew from 1.5 million TEUs to more than 260 vessels with capacity exceeding 2 million TEUs. Another 1.15 million TEUs of capacity are on order. ONE recorded a loss in 2018–19, its first year of operation, but rode the massive profitability wave generated during the pandemic-impacted years that followed. That profitability came to an end in the fiscal third quarter of ONE’s 2025 financial year when <a href="https://www.joc.com/article/frontloading-drags-one-to-a-loss-in-its-fiscal-third-quarter-6161263">the carrier posted an $88 million net loss</a>. “ONE is well-positioned to navigate industry headwinds with an increasingly modern fleet, financial strength, and proven capabilities,” Till said in the statement. Contact Greg Knowler at <a href="https://www.joc.com/article/frontloading-drags-one-to-a-loss-in-its-fiscal-third-quarter-6161263">greg.knowler@spglobal.com</a>. </div>

Ocean Network Express CEO Jeremy Nixon will step down on July 1 from the leadership position he has held since ONE’s inception in 2018 and turn over the helm to industry veteran Till Ole Barrelet. The change was part of a “planned leadership transition” and will not have any impact on customers, the carrier said in a statement Wednesday. Nixon is one of the most recognized executives in container shipping and will stay on with ONE as a senior advisor after Barrelet becomes CEO. “Leading ONE from day one has been the defining chapter of my career,” Nixon said in the statement. “Now is the right time for new leadership, and I am very confident in Till’s ability to lead ONE forward.” Barrelet has more than 20 years of maritime and logistics experience, most recently serving as CEO of Emirates Shipping Line. He has expertise in ship owning, financing, container shipping and trade development across Asia, the Middle East, Europe and Africa. In addition to a change at the top, ONE will transition to a new executive management team structure comprising the CEO and seven representatives from across all the carrier’s divisions. The new executive team, together with six regional leaders, will report into the CEO. “As our founding CEO, Jeremy has helped build ONE from the ground up, establishing our corporate culture and market position,” said Jotaro Tamura, representative director and chairman of Ocean Network Express Holdings. Nixon has been a regular presence at the Journal of Commerce’s TPM conference in Long Beach, and will speak at TPM26 next Monday. Transforming three Japanese carriers As CEO of ONE, Nixon presided over the transformation of the container segments of legacy Japanese carriers K Line, MOL and NYK into a unified global container shipping company based in Singapore. Prior to taking the top job at ONE, he headed up the container division at NYK and served in senior management positions at P&O Nedlloyd and Maersk. Under his stewardship, ONE’s fleet grew from 1.5 million TEUs to more than 260 vessels with capacity exceeding 2 million TEUs. Another 1.15 million TEUs of capacity are on order. ONE recorded a loss in 2018–19, its first year of operation, but rode the massive profitability wave generated during the pandemic-impacted years that followed. That profitability came to an end in the fiscal third quarter of ONE’s 2025 financial year when the carrier posted an $88 million net loss . “ONE is well-positioned to navigate industry headwinds with an increasingly modern fleet, financial strength, and proven capabilities,” Till said in the statement. Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Jeremy Nixon to step down as ONE CEO after eight years at the helm

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