<div class="phx-topic abstract-wrapper">Great Lakes shipping interests have an urgent suggestion for Obama Administration stimulus spending &amp;mdash; if you want to support American-made steel in infrastructur</div>

Great Lakes shipping interests have an urgent suggestion for Obama Administration stimulus spending &mdash; if you want to support American-made steel in infrastructur

<div>Great Lakes shipping interests have an urgent suggestion for Obama Administration stimulus spending &amp;mdash; if you want to support American-made steel in infrastructure improvements, then dig down and dredge harbors and channels.The Great Lakes Maritime Task Force, a coalition of port authorities, trades unions, U.S.-flag vessel operators, terminal operators, and other interests, made their pitch Friday in a news release and 2008 annual report.According to the group, there is a years-old dredging crisis of silted up harbors and channels throughout the U.S. part of the Great Lakes, which forces vessels to carry lighter loads than they can carry. If Congress...

Great Lakes shipping interests have an urgent suggestion for Obama Administration stimulus spending &mdash; if you want to support American-made steel in infrastructure improvements, then dig down and dredge harbors and channels. The Great Lakes Maritime Task Force, a coalition of port authorities, trades unions, U.S.-flag vessel operators, terminal operators, and other interests, made their pitch Friday in a news release and 2008 annual report. According to the group, there is a years-old dredging crisis of silted up harbors and channels throughout the U.S. part of the Great Lakes, which forces vessels to carry lighter loads than they can carry. If Congress wants more American-made products in infrastructure projects, these often are made of steel; to get more steel, you need to more effectively get Mid-Western iron ore and fluxstone to flagging U.S. steel plants around the Great Lakes basin. But U.S. lakers cannot take full loads to the plants because of the lack of dredging. Every ton of iron ore that stays on the loading dock means less steel and fewer new jobs, says the Task Force. Every ton of aggregate or cement that is left lessens our capability to promote and sustain economic growth. Dredging appropriations by Congress for the U.S. Army Corps of Engineers on the Lakes have been a sore issue for many years. In FY08, however, the Corps received nearly $140 million for dredging not only the annual buildup of sediment but to actually start to chip away at the 18 million cubic yards that remain, the Task Force says. The outlook for FY09 is less positive, with $125 million appropriated for Great Lakes dredging, but the Task Force hopes for additional funds from the economic stimulus package. Even that package would not be necessary, the Task Force argues, if the nation&rsquo;s Harbor Maintenance Trust Fund were used more fully as intended, for dredging deep-draft ports and waterways. The HMTF has a nearly $5 billion surplus, which could be utilized, the Task Force says.

Maritime

Transport, Trade and Regulation News

Great Lakes Shippers: Dredge Here

<div class="phx-topic abstract-wrapper">The likely sale this year of the Port of New York and New Jersey’s largest marine terminal portends possible changes to how it will be operated in the long run. </div>

The likely sale this year of the Port of New York and New Jersey’s largest marine terminal portends possible changes to how it will be operated in the long run.

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<div class="phx-topic">The potential sale of Maher Terminal at the Port of New York and New Jersey will require a buyer to navigate stricter lease terms, billions in new costs, and decisions on how to grow capacity and service its customers, all portending further changes in container handling at the port. A source told the Journal of Commerce that marine terminal operators including DP World, PSA International, SSA Marine, and Terminal Investment Limited have inquired about a potential acquisition of Maher from private equity firm Macquarie Infrastructure Partners. Maher, the largest container terminal at NY-NJ, could fetch $3 billion, according to the Wall Street Journal. The sale of Maher, which could be announced later this year, comes after the Macquarie fund that owns Maher negotiated <a href="https://www.joc.com/article/macquarie-seals-deal-for-new-maher-lease-at-nynj-through-2063-6137751">a new 33-year lease with the Port Authority of New York and New Jersey that starts in 2030</a>. The potential buyers have also contacted the Port Authority, the source said, because the agency would have to sign off on any deal. The new lease means Maher’s buyer faces a variable monthly rent that is based solely on container volume, the source said, rather than the previous lease’s largely fixed-cost base rent. In addition, the new operator will have to share with the Port Authority a greater portion of its “excess revenue,” which generally comes from the demurrage it charges on containers. Outside of the direct rental costs, Maher’s buyer could face at least $3 billion in capital and maintenance costs under the new lease, the source said. <h3>Capacity upgrades</h3>A big chunk of that will be the cost of berth maintenance and repairs that the Port Authority has begun shifting over to tenants under the new leases. Maher, with four berths capable of handling super-post-Panamax ships, faces an estimated $2 billion in such repairs.The new lease also requires Maher to add “demand-induced” capacity as part of the port’s overall plan to double capacity by 2050, Port Director Beth Rooney said after the lease’s December signing. Maher, which can currently handle just over 3 million TEUs, could double its capacity through densification, she said. Densification, though, will require the buyer to rethink signature features of the terminal that have made it preferred among ocean carriers, shippers and motor carriers. The densification process could cost another $1 billion. Maher currently uses a fleet of over 200 straddle carriers to sort containers and bring them to trucks waiting at a parking spot, what the facility bills as a “concierge service,” according to shippers. Maher has won multiple awards from local motor carriers and ocean carriers for its service levels. Densifying the facility would mean gradually rolling out a smaller fleet of gantry cranes, either on rubber tires or rail mounted, for handling higher and wider container stacks. The process would require that yard space within Maher be closed on a rotating basis while the underlying concrete is reinforced and container stacks are remade for the larger machines. It’s not clear how the switch to gantry crane operations will affect service times for trucks, although it would likely mean fewer loading spaces. An equipment change at the terminal will also trigger a clause in the contract with the International Longshoremen’s Association (ILA) over implementing new technology, requiring negotiations with the union. Along with larger yard equipment, a new buyer for Maher will face decisions on how it optimizes space. Maher has a massive truck gate with some 30 inbound lanes and 20 outbound lanes. The large gate complex allows Maher to handle trucks without requiring appointments, a free-flow operation that allows truckers to quickly enter the facility. But the gate complex also occupies about a quarter of its land, making it a potential target for reclamation to container yard space. A smaller gate, though, might require Maher to rethink the free-flow model Maher will also have to share more of its daily operational data under the new lease terms, which require the terminal to provide data about key metrics and other measures. The data sharing will “enable the Port Authority and its terminal operators to better collaborate on port efficiency initiatives,” the agency said in a statement to the Journal of Commerce.Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The potential sale of Maher Terminal at the Port of New York and New Jersey will require a buyer to navigate stricter lease terms, billions in new costs, and decisions on how to grow capacity and service its customers, all portending further changes in container handling at the port. A source told the Journal of Commerce that marine terminal operators including DP World, PSA International, SSA Marine, and Terminal Investment Limited have inquired about a potential acquisition of Maher from private equity firm Macquarie Infrastructure Partners. Maher, the largest container terminal at NY-NJ, could fetch $3 billion, according to the Wall Street Journal. The sale of Maher, which could be announced later this year, comes after the Macquarie fund that owns Maher negotiated a new 33-year lease with the Port Authority of New York and New Jersey that starts in 2030 . The potential buyers have also contacted the Port Authority, the source said, because the agency would have to sign off on any deal. The new lease means Maher’s buyer faces a variable monthly rent that is based solely on container volume, the source said, rather than the previous lease’s largely fixed-cost base rent. In addition, the new operator will have to share with the Port Authority a greater portion of its “excess revenue,” which generally comes from the demurrage it charges on containers. Outside of the direct rental costs, Maher’s buyer could face at least $3 billion in capital and maintenance costs under the new lease, the source said. Capacity upgrades A big chunk of that will be the cost of berth maintenance and repairs that the Port Authority has begun shifting over to tenants under the new leases. Maher, with four berths capable of handling super-post-Panamax ships, faces an estimated $2 billion in such repairs. The new lease also requires Maher to add “demand-induced” capacity as part of the port’s overall plan to double capacity by 2050, Port Director Beth Rooney said after the lease’s December signing. Maher, which can currently handle just over 3 million TEUs, could double its capacity through densification, she said. Densification, though, will require the buyer to rethink signature features of the terminal that have made it preferred among ocean carriers, shippers and motor carriers. The densification process could cost another $1 billion. Maher currently uses a fleet of over 200 straddle carriers to sort containers and bring them to trucks waiting at a parking spot, what the facility bills as a “concierge service,” according to shippers. Maher has won multiple awards from local motor carriers and ocean carriers for its service levels. Densifying the facility would mean gradually rolling out a smaller fleet of gantry cranes, either on rubber tires or rail mounted, for handling higher and wider container stacks. The process would require that yard space within Maher be closed on a rotating basis while the underlying concrete is reinforced and container stacks are remade for the larger machines. It’s not clear how the switch to gantry crane operations will affect service times for trucks, although it would likely mean fewer loading spaces. An equipment change at the terminal will also trigger a clause in the contract with the International Longshoremen’s Association (ILA) over implementing new technology, requiring negotiations with the union. Along with larger yard equipment, a new buyer for Maher will face decisions on how it optimizes space. Maher has a massive truck gate with some 30 inbound lanes and 20 outbound lanes. The large gate complex allows Maher to handle trucks without requiring appointments, a free-flow operation that allows truckers to quickly enter the facility. But the gate complex also occupies about a quarter of its land, making it a potential target for reclamation to container yard space. A smaller gate, though, might require Maher to rethink the free-flow model Maher will also have to share more of its daily operational data under the new lease terms, which require the terminal to provide data about key metrics and other measures. The data sharing will “enable the Port Authority and its terminal operators to better collaborate on port efficiency initiatives,” the agency said in a statement to the Journal of Commerce.Contact Michael Angell at michael.angell@spglobal.com .

Marine terminals

Longshore labor

North American ports

Maher’s next buyer faces billions in upgrades, decisions on capacity

<div class="phx-topic abstract-wrapper">While linehaul performance has largely returned to normal for US Class I railroads, delays and bottlenecks triggered by the severe winter storm two weeks ago have now moved downstream to terminals in Chicago, Cincinnati and Memphis.</div>

While linehaul performance has largely returned to normal for US Class I railroads, delays and bottlenecks triggered by the severe winter storm two weeks ago have now moved downstream to terminals in Chicago, Cincinnati and Memphis.

<div class="phx-topic">Rail terminals at key inland hubs have become congested with containers two weeks after a severe winter storm slammed a large portion of the US, slowing both the handoff of import boxes to trucks and the start of export moves. While port-to-rail service and linehaul performance have largely returned to normal for US Class I railroads, the delays and bottlenecks triggered by the storm have now moved downstream to terminals in Chicago, Cincinnati and Memphis. “We’ve had drivers spending up to five hours just in line, consistently missing deliveries and having containers going into [demurrage],” said one Chicago-based trucker who asked not to be identified. “The customers refuse to pay and are getting frustrated. Drivers are getting frustrated.” Truckers say the terminal delays are eroding productivity and adding costs, particularly as railroads assess fees during extended container dwell times. For drayage providers, profitability depends on delivering cargo, making hours-long delays inside terminals costly. Frustration has been directed at BNSF Railway, Norfolk Southern Railway (NS) and Union Pacific Railroad (UP). Slowdowns are common during frigid temperatures because heavy equipment such as overhead cranes and hostler vehicles can malfunction. Outdoor terminal crews also must battle the harsh conditions. In Memphis, drivers have raised concerns after UP began stacking ocean containers inside the terminal on Feb. 4 because of a chassis shortage, according to a UP advisory circulated to drivers and shared with the Journal of Commerce. A UP spokesperson declined to confirm the advisory’s authenticity, although two independent sources provided copies to the Journal of Commerce. “Union Pacific does not own chassis and works closely with customers and their carriers to ensure availability,” the UP spokesperson said in a statement to the Journal of Commerce. “Following the unprecedented storm, Union Pacific recovered exceptionally well and maintained a fluid rail network.” Truckers object to UP’s decision, prompted by the post-storm conditions, to charge a fee to lift containers out of stacks. The so-called “flip fee” traditionally applies when transferring a container from a perfectly usable pool chassis to a trucker’s privately owned chassis. Other North American Class I railroads do not assess a fee in similar circumstances, and major US ports similarly do not charge simply to lift a container from a stack onto a truck. Cargo owners are not covering the cost, so UP’s decision is a financial hit for truckers, provoking angry e-mails from truckers that were shared with the Journal of Commerce. Data from technology provider E-Dray shows that the average time to unload an ocean container and make it available at UP’s Memphis terminal has increased from less than one (0.7) day before the storm to 2.9 days as of this week. <h3>Frustrations with BNSF, Norfolk Southern </h3>Drivers report similar frustrations at BNSF’s Memphis and Logistics Park Chicago terminals, where E-Dray data shows container availability times have doubled from approximately one day to two days in both locations. The delays are not driven by chassis shortages, but by extended waits for crane availability. “Turn times at both facilities are about 30%, or 20 minutes longer,” Jon Gabriel, BNSF’s group vice president of consumer products, told the Journal of Commerce. “We expect that turn times [will] return back to normal at both facilities next week, likely Memphis a little sooner.” In Chicago, drivers have also voiced concerns about Norfolk Southern terminals, although E-Dray data shows no material deterioration in terminal efficiency metrics there. Norfolk Southern, however, acknowledged congestion in Cincinnati. “We are taking proactive steps to improve the driver experience, reduce dwell, and maintain service reliability,” NS wrote in a Feb. 3 advisory posted online. “Our focus is on restoring smooth terminal flow and improving the driver experience as quickly as possible.” Congestion also remains elevated in Louisville, where a disruption that began more than a month ago persists. <h3>Linehaul performance rebounds </h3>Moving containers into major inland hubs is no longer an issue for the railroads. BNSF’s transit times between Floyd, Mississippi, and Plaines, Illinois, nearly doubled to 19 hours in the immediate aftermath of the storm, but had fallen back to about 10 hours as of Feb. 5, according to rail visibility provider RailState. UP’s transit times between Edwardsville, Kansas, and Mazonia, Illinois, spiked to nearly 80 hours after the storm before declining to approximately 35 hours this week, RailState data showed. NS’ transit times between Mishawaka, Indiana, and East Palestine, Ohio, jumped about 50% during the storm but have since returned to historical norms. (The RailState data used in this report was the 75th percentile of transit times, as calculated by RailState, to better capture “outlier” instances created by the storm.) Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Rail terminals at key inland hubs have become congested with containers two weeks after a severe winter storm slammed a large portion of the US, slowing both the handoff of import boxes to trucks and the start of export moves. While port-to-rail service and linehaul performance have largely returned to normal for US Class I railroads, the delays and bottlenecks triggered by the storm have now moved downstream to terminals in Chicago, Cincinnati and Memphis. “We’ve had drivers spending up to five hours just in line, consistently missing deliveries and having containers going into [demurrage],” said one Chicago-based trucker who asked not to be identified. “The customers refuse to pay and are getting frustrated. Drivers are getting frustrated.” Truckers say the terminal delays are eroding productivity and adding costs, particularly as railroads assess fees during extended container dwell times. For drayage providers, profitability depends on delivering cargo, making hours-long delays inside terminals costly. Frustration has been directed at BNSF Railway, Norfolk Southern Railway (NS) and Union Pacific Railroad (UP). Slowdowns are common during frigid temperatures because heavy equipment such as overhead cranes and hostler vehicles can malfunction. Outdoor terminal crews also must battle the harsh conditions. In Memphis, drivers have raised concerns after UP began stacking ocean containers inside the terminal on Feb. 4 because of a chassis shortage, according to a UP advisory circulated to drivers and shared with the Journal of Commerce. A UP spokesperson declined to confirm the advisory’s authenticity, although two independent sources provided copies to the Journal of Commerce. “Union Pacific does not own chassis and works closely with customers and their carriers to ensure availability,” the UP spokesperson said in a statement to the Journal of Commerce. “Following the unprecedented storm, Union Pacific recovered exceptionally well and maintained a fluid rail network.” Truckers object to UP’s decision, prompted by the post-storm conditions, to charge a fee to lift containers out of stacks. The so-called “flip fee” traditionally applies when transferring a container from a perfectly usable pool chassis to a trucker’s privately owned chassis. Other North American Class I railroads do not assess a fee in similar circumstances, and major US ports similarly do not charge simply to lift a container from a stack onto a truck. Cargo owners are not covering the cost, so UP’s decision is a financial hit for truckers, provoking angry e-mails from truckers that were shared with the Journal of Commerce. Data from technology provider E-Dray shows that the average time to unload an ocean container and make it available at UP’s Memphis terminal has increased from less than one (0.7) day before the storm to 2.9 days as of this week. Frustrations with BNSF, Norfolk Southern Drivers report similar frustrations at BNSF’s Memphis and Logistics Park Chicago terminals, where E-Dray data shows container availability times have doubled from approximately one day to two days in both locations. The delays are not driven by chassis shortages, but by extended waits for crane availability. “Turn times at both facilities are about 30%, or 20 minutes longer,” Jon Gabriel, BNSF’s group vice president of consumer products, told the Journal of Commerce. “We expect that turn times [will] return back to normal at both facilities next week, likely Memphis a little sooner.” In Chicago, drivers have also voiced concerns about Norfolk Southern terminals, although E-Dray data shows no material deterioration in terminal efficiency metrics there. Norfolk Southern, however, acknowledged congestion in Cincinnati. “We are taking proactive steps to improve the driver experience, reduce dwell, and maintain service reliability,” NS wrote in a Feb. 3 advisory posted online. “Our focus is on restoring smooth terminal flow and improving the driver experience as quickly as possible.” Congestion also remains elevated in Louisville, where a disruption that began more than a month ago persists. Linehaul performance rebounds Moving containers into major inland hubs is no longer an issue for the railroads. BNSF’s transit times between Floyd, Mississippi, and Plaines, Illinois, nearly doubled to 19 hours in the immediate aftermath of the storm, but had fallen back to about 10 hours as of Feb. 5, according to rail visibility provider RailState. UP’s transit times between Edwardsville, Kansas, and Mazonia, Illinois, spiked to nearly 80 hours after the storm before declining to approximately 35 hours this week, RailState data showed. NS’ transit times between Mishawaka, Indiana, and East Palestine, Ohio, jumped about 50% during the storm but have since returned to historical norms. (The RailState data used in this report was the 75th percentile of transit times, as calculated by RailState, to better capture “outlier” instances created by the storm.) Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

North-American rail

Surface

Key inland rail terminals battle post-storm congestion, driver complaints

<div class="phx-topic abstract-wrapper">The subsidiary of Manila-headquartered International Container Terminal Services said the agreement extends the lease expiration from 2040 to 2066.</div>

The subsidiary of Manila-headquartered International Container Terminal Services said the agreement extends the lease expiration from 2040 to 2066.

<div class="phx-topic">Australia’s Victoria International Container Terminal (VICT) has signed a 26-year extension to its existing contract with the Port of Melbourne to operate and manage the port’s Webb Dock East terminal, the company said Friday. VICT, a subsidiary of Manila-headquartered operator International Container Terminal Services Inc. (ICTSI), said the agreement extends the lease expiration from 2040 to 2066. VICT is currently midway through a US$165 million expansion of its fully automated terminal that will increase capacity to 1.5 million TEUs when completed late next year. The quay length has already been extended to 2,523 feet, and work is underway to develop two container stacking areas. The lease extension comes as Melbourne is preparing to kick off the development of the Webb Dock North terminal, which VICT is hoping to integrate into its Webb Dock East facility. Talks are already taking place between VICT and the port authorities for the company to develop and operate the $343 million North terminal, which would double VICT’s capacity at the port. The Port of Melbourne is aiming for construction to start on the new terminal in 2028, with phased completion by 2036. VICT is the port’s largest container and general cargo terminal. Melbourne handled 3.1 million TEUs last year, down from 3.4 million TEUs in the prior year. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Australia’s Victoria International Container Terminal (VICT) has signed a 26-year extension to its existing contract with the Port of Melbourne to operate and manage the port’s Webb Dock East terminal, the company said Friday. VICT, a subsidiary of Manila-headquartered operator International Container Terminal Services Inc. (ICTSI), said the agreement extends the lease expiration from 2040 to 2066. VICT is currently midway through a US$165 million expansion of its fully automated terminal that will increase capacity to 1.5 million TEUs when completed late next year. The quay length has already been extended to 2,523 feet, and work is underway to develop two container stacking areas. The lease extension comes as Melbourne is preparing to kick off the development of the Webb Dock North terminal, which VICT is hoping to integrate into its Webb Dock East facility. Talks are already taking place between VICT and the port authorities for the company to develop and operate the $343 million North terminal, which would double VICT’s capacity at the port. The Port of Melbourne is aiming for construction to start on the new terminal in 2028, with phased completion by 2036. VICT is the port’s largest container and general cargo terminal. Melbourne handled 3.1 million TEUs last year, down from 3.4 million TEUs in the prior year. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

International ports

Container Shipping News

Australia’s VICT extends terminal concession at Port of Melbourne to 2066

<div class="phx-topic abstract-wrapper">Inland water transport offers a lower-emission alternative routing for out-of-gauge cargoes, with cost-efficiency, lower energy consumption, and fewer accidents, among other advantages.</div>

Inland water transport offers a lower-emission alternative routing for out-of-gauge cargoes, with cost-efficiency, lower energy consumption, and fewer accidents, among other advantages.

<div class="phx-topic">As demand grows for infrastructure projects including data centers, power plants and mining facilities, inland waterways are emerging as a greener and more efficient alternative for breakbulk and project cargo shippers. Hans Vermij, port hinterland logistics professional for international consultancy Haskoning, told the Journal of Commerce that project cargo is well positioned to expand the role of inland waterways for transport, especially when it comes to moving cargo for energy, mining and construction projects. Along with production of bulk raw materials that require inland water access to ship large volumes, mining companies also transport oversized project cargo such as mining or port handling equipment. “Transport by road [faces] severe restrictions regarding the dimensions of the load,” Vermij said. Vermij cited the Rhine River as a key inland route for regularly transporting project cargo across parts of Europe. The Rhine runs from the Alps in Switzerland to the North Sea in the Netherlands and is regularly used to ship machinery, mining equipment and transport vehicles. “As equipment becomes more specialized and the motorway networks in Western Europe are more and more congested, we expect more shipments of project cargo by inland water,” Vermij said. Sustainability, cost-efficiency, lower energy consumption, and fewer accidents are among the advantages of inland water transport, Vermij said. “However, there are still many cases where these advantages are unexplored or need justification to be demonstrated to convince shippers and cargo owners,” he said. <h3>Inland transport supports mining </h3>In South America, increased mining activity necessitated a landmark heavy-lift operation and inland transport by multipurpose vessel (MPV) operator AAL Shipping in December. In its most complex engineering operation to date, AAL transported a fleet of 16 bulk-commodity transport barges on a single heavy-lift vessel from Brazil to Uruguay. According to AAL, the barges will enable South American mining shipments via inland waterways and will be deployed to transport iron and manganese ore for export over 1,500 miles along the Paraguay-Paraná Waterway from Brazil to Uruguay. “We’re seeing growing interest in inland waterways as part of mining and bulk supply chains in South America,” Eugene Nutovych, senior chartering manager for AAL Americas, told the Journal of Commerce. Considered southern South America’s equivalent of the US’ Mississippi River, the Paraguay-Paraná Waterway links Brazil, Bolivia, Paraguay, Argentina, and Uruguay with the Atlantic Ocean. Nutovych said the use of inland waterways delivers benefits beyond logistics. “Economically it supports industrial activity in Brazil — including the reopening of the Enseada Shipyard in Bahia — and stimulates employment and growth in mining regions and along the waterway corridor,” he said. For mining companies, inland waterway transport can provide greater carrying capacity, reduce logistics costs, and accelerate product flow to market by scaling cargo movement. “It also supports a shift away from road-heavy transportation toward more efficient waterborne solutions, aligning with the broader push for cleaner, more sustainable bulk movement,” Nutovych said. The fleet of barges is expected to increase capacity for more eco-efficient water-bound transport while elevating Brazil’s presence in the global commodities market. Nutovych said AAL anticipates more operations of this kind, particularly as inland corridors develop. According to the Rosario Board of Trade, the large-scale mining development projected in the Cuyo and Northwest Argentine regions will likely require river transport via the Paraguay-Paraná Waterway of processed lithium, copper, silver, gold, zinc, and lead — which often ship as breakbulk cargo — for export, along with the transport of equipment to support production. <h3>Global expansions take shape </h3>Investments in global inland waterways range from targeted projects in the US to massive expansions in Asia and Europe. In the US, inland waterway infrastructure has been expanding in recent months to support supply chains, critical infrastructure, and maritime workforce development. In July, the US Department of Transportation added 848 new miles of navigable waterways to the US Marine Highway Program. The network now covers 27,139 miles across 35 designated routes. On Feb. 5, the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma and the inland ports of Benton, Pasco and Walla Walla in Washington signed an agreement to develop an inland logistics hub in the southeastern part of the state. Along with leveraging railroads and major highways with connections to coastal ports, the hub will rely on the region’s Columbia-Snake River system, which stretches from British Columbia, Canada, to the Pacific Ocean in Oregon, and through Washington, Idaho, and Wyoming. One objective of the hub is to ease truck congestion in the Puget Sound metro area and improve supply chain efficiency. The NWSA has been implementing a growth plan since 2020 that includes infrastructure expansion and intermodal enhancements to extend the gateway’s reach into the US interior. In Europe, work is underway on the 66-mile Seine-Nord Europe Canal, touted as Europe’s answer to the Suez Canal and France’s first new waterway to be built since the 1970s. The $6 billion canal will allow super barges weighing up to 4,400 tons — the equivalent of 400 trucks of cargo — to travel between France, Belgium and the Netherlands. David Edwards-May, consultant, publisher and former president of UK nonprofit Inland Waterways International (IWI), told the Journal of Commerce that the canal could serve as a key route for breakbulk and project cargo while helping shift oversized freight off European roadways. “That means you’ve got one-fifth of France — the whole Paris region down to Normandy — that will henceforth be linked to the Rhine [River],” May said. In southern China, construction is nearing completion on the 82-mile Pinglu Canal, one of the world’s largest canal construction projects and the country’s first river-to-sea canal to be built since the founding of the People’s Republic of China in 1949. The $10 billion canal will cross mountains and plains to connect China’s inland waterways with the South China Sea. The canal is set to open to navigation by the end of 2026. The Pinglu Canal project marks the beginning of China’s larger overall push to expand inland shipping, as the country plans to establish a 15,500-mile network of inland waterways by 2035. “The bet the Chinese are making is that the temporary upheaval involved with developing new waterways for modern inland water transport will be compensated by the long-term benefits of a lower carbon imprint,” May said. <h3>Taking weight off roads </h3>In the UK, inland waterways, particularly the Manchester Ship Channel, are playing an increasing role in reducing road congestion by moving heavy and oversized cargo to waterways. Jamie Gray, senior project director for Haskoning, cited the 2024 transport of a large hydrogen-powered furnace from India to the Port of Liverpool. UK port operator Peel Ports transferred the furnace to a barge and moved the cargo via the Manchester Ship Canal to reduce road miles and public disruption. Gray said Peel Ports is investing heavily in warehousing and logistics hubs along its waterways. “The aim is to process goods closer to the final destination, and thus lower carbon emissions,” he said. May said inland waterway barges will eventually be adapted to run on electric propulsion, making them less reliant on fossil fuels. “Inland water transport could evolve to being carbon-neutral much more quickly than road transport,” he said. Another emerging technology is AI-powered self-steering barges, which could help lower personnel costs and is already being tested in Belgium, Germany and the Netherlands. “Obviously a lot of caution is required in proceeding on that basis, but it is a trend that I think clearly is on the way and will help to rationalize that mode of transport,” May said. In any case, May said inland transport is able to maintain a low profile, not only because it produces less noise pollution than trucks, but also because it means fewer oversized shipments taking up space on the road. “It is so incredibly discreet,” he said. “People are not even really aware of the service that is rendered to the economy.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

As demand grows for infrastructure projects including data centers, power plants and mining facilities, inland waterways are emerging as a greener and more efficient alternative for breakbulk and project cargo shippers. Hans Vermij, port hinterland logistics professional for international consultancy Haskoning, told the Journal of Commerce that project cargo is well positioned to expand the role of inland waterways for transport, especially when it comes to moving cargo for energy, mining and construction projects. Along with production of bulk raw materials that require inland water access to ship large volumes, mining companies also transport oversized project cargo such as mining or port handling equipment. “Transport by road [faces] severe restrictions regarding the dimensions of the load,” Vermij said. Vermij cited the Rhine River as a key inland route for regularly transporting project cargo across parts of Europe. The Rhine runs from the Alps in Switzerland to the North Sea in the Netherlands and is regularly used to ship machinery, mining equipment and transport vehicles. “As equipment becomes more specialized and the motorway networks in Western Europe are more and more congested, we expect more shipments of project cargo by inland water,” Vermij said. Sustainability, cost-efficiency, lower energy consumption, and fewer accidents are among the advantages of inland water transport, Vermij said. “However, there are still many cases where these advantages are unexplored or need justification to be demonstrated to convince shippers and cargo owners,” he said. Inland transport supports mining In South America, increased mining activity necessitated a landmark heavy-lift operation and inland transport by multipurpose vessel (MPV) operator AAL Shipping in December. In its most complex engineering operation to date, AAL transported a fleet of 16 bulk-commodity transport barges on a single heavy-lift vessel from Brazil to Uruguay. According to AAL, the barges will enable South American mining shipments via inland waterways and will be deployed to transport iron and manganese ore for export over 1,500 miles along the Paraguay-Paraná Waterway from Brazil to Uruguay. “We’re seeing growing interest in inland waterways as part of mining and bulk supply chains in South America,” Eugene Nutovych, senior chartering manager for AAL Americas, told the Journal of Commerce. Considered southern South America’s equivalent of the US’ Mississippi River, the Paraguay-Paraná Waterway links Brazil, Bolivia, Paraguay, Argentina, and Uruguay with the Atlantic Ocean. Nutovych said the use of inland waterways delivers benefits beyond logistics. “Economically it supports industrial activity in Brazil — including the reopening of the Enseada Shipyard in Bahia — and stimulates employment and growth in mining regions and along the waterway corridor,” he said. For mining companies, inland waterway transport can provide greater carrying capacity, reduce logistics costs, and accelerate product flow to market by scaling cargo movement. “It also supports a shift away from road-heavy transportation toward more efficient waterborne solutions, aligning with the broader push for cleaner, more sustainable bulk movement,” Nutovych said. The fleet of barges is expected to increase capacity for more eco-efficient water-bound transport while elevating Brazil’s presence in the global commodities market. Nutovych said AAL anticipates more operations of this kind, particularly as inland corridors develop. According to the Rosario Board of Trade, the large-scale mining development projected in the Cuyo and Northwest Argentine regions will likely require river transport via the Paraguay-Paraná Waterway of processed lithium, copper, silver, gold, zinc, and lead — which often ship as breakbulk cargo — for export, along with the transport of equipment to support production. Global expansions take shape Investments in global inland waterways range from targeted projects in the US to massive expansions in Asia and Europe. In the US, inland waterway infrastructure has been expanding in recent months to support supply chains, critical infrastructure, and maritime workforce development. In July, the US Department of Transportation added 848 new miles of navigable waterways to the US Marine Highway Program. The network now covers 27,139 miles across 35 designated routes. On Feb. 5, the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma and the inland ports of Benton, Pasco and Walla Walla in Washington signed an agreement to develop an inland logistics hub in the southeastern part of the state. Along with leveraging railroads and major highways with connections to coastal ports, the hub will rely on the region’s Columbia-Snake River system, which stretches from British Columbia, Canada, to the Pacific Ocean in Oregon, and through Washington, Idaho, and Wyoming. One objective of the hub is to ease truck congestion in the Puget Sound metro area and improve supply chain efficiency. The NWSA has been implementing a growth plan since 2020 that includes infrastructure expansion and intermodal enhancements to extend the gateway’s reach into the US interior. In Europe, work is underway on the 66-mile Seine-Nord Europe Canal, touted as Europe’s answer to the Suez Canal and France’s first new waterway to be built since the 1970s. The $6 billion canal will allow super barges weighing up to 4,400 tons — the equivalent of 400 trucks of cargo — to travel between France, Belgium and the Netherlands. David Edwards-May, consultant, publisher and former president of UK nonprofit Inland Waterways International (IWI), told the Journal of Commerce that the canal could serve as a key route for breakbulk and project cargo while helping shift oversized freight off European roadways. “That means you’ve got one-fifth of France — the whole Paris region down to Normandy — that will henceforth be linked to the Rhine [River],” May said. In southern China, construction is nearing completion on the 82-mile Pinglu Canal, one of the world’s largest canal construction projects and the country’s first river-to-sea canal to be built since the founding of the People’s Republic of China in 1949. The $10 billion canal will cross mountains and plains to connect China’s inland waterways with the South China Sea. The canal is set to open to navigation by the end of 2026. The Pinglu Canal project marks the beginning of China’s larger overall push to expand inland shipping, as the country plans to establish a 15,500-mile network of inland waterways by 2035. “The bet the Chinese are making is that the temporary upheaval involved with developing new waterways for modern inland water transport will be compensated by the long-term benefits of a lower carbon imprint,” May said. Taking weight off roads In the UK, inland waterways, particularly the Manchester Ship Channel, are playing an increasing role in reducing road congestion by moving heavy and oversized cargo to waterways. Jamie Gray, senior project director for Haskoning, cited the 2024 transport of a large hydrogen-powered furnace from India to the Port of Liverpool. UK port operator Peel Ports transferred the furnace to a barge and moved the cargo via the Manchester Ship Canal to reduce road miles and public disruption. Gray said Peel Ports is investing heavily in warehousing and logistics hubs along its waterways. “The aim is to process goods closer to the final destination, and thus lower carbon emissions,” he said. May said inland waterway barges will eventually be adapted to run on electric propulsion, making them less reliant on fossil fuels. “Inland water transport could evolve to being carbon-neutral much more quickly than road transport,” he said. Another emerging technology is AI-powered self-steering barges, which could help lower personnel costs and is already being tested in Belgium, Germany and the Netherlands. “Obviously a lot of caution is required in proceeding on that basis, but it is a trend that I think clearly is on the way and will help to rationalize that mode of transport,” May said. In any case, May said inland transport is able to maintain a low profile, not only because it produces less noise pollution than trucks, but also because it means fewer oversized shipments taking up space on the road. “It is so incredibly discreet,” he said. “People are not even really aware of the service that is rendered to the economy.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

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Shippers look inland to move swelling project cargo demand

<div class="phx-topic abstract-wrapper">The digital trade body argues that online sellers outside the EU were able to scale rapidly by exploiting gaps in customs and regulatory enforcement that European businesses could not legally replicate.</div>

The digital trade body argues that online sellers outside the EU were able to scale rapidly by exploiting gaps in customs and regulatory enforcement that European businesses could not legally replicate.

<div class="phx-topic">A Polish digital trade group has warned that Chinese online platforms were distorting competition across the European Union using “unequal rules” to reshape the e-commerce market. The Chamber of Digital Economy in Poland argued in a report prepared with KPMG that non-EU sellers were scaling rapidly by exploiting gaps in customs and regulatory enforcement that European businesses could not legally replicate. “This is not a debate about protectionism,” Patrycja Sass-Staniszewska, president of the Chamber of Digital Economy, said in a statement. “Polish companies compete on price, service and innovation every day. What they cannot compete with are business models built on regulatory loopholes and the absence of effective enforcement.” The report said Chinese platforms now account for 6% to 11% of Poland’s $42 billion e-commerce market, with strong growth in the electronics and household goods sectors where sustained price dumping risks hollowing out domestic production and investment capacity. The threat to businesses extends across Europe, the Polish group warned, saying that without intervention, EU-based companies will struggle to scale, invest and compete globally. Regulatory clampdowns on e-commerce have profound implications for air freight, as evidenced by the US’ removal of the de minimis exemption from duties for low-value goods that went into force last year. Amid a growing outcry across Europe, the European Union will impose a similar regulatory clampdown from mid-2026. The European Commission has adopted measures to remove the €150 ($177) duty-free exemption for low-value goods, targeting a surge in e-commerce imports from China. In 2024, the European Commission estimated that 4.6 billion parcels with a value not exceeding €150 crossed the EU border, twice the number of parcels from the previous year. The EU de minimis exemption not only allows importers of low-value goods to avoid paying duties, but also removes the need for importers to submit a standard customs declaration. A temporary €3 ($3.50) import duty per item is expected to be applied by the European Commission from July 2026, with a full reform of measures scheduled for 2028. <h3>Hollowing out domestic production </h3>Data from rate benchmarking platform Xeneta shows the removal of the US’ de minimis exemption for Chinese imports last May led to a sharp decline in e-commerce on the trans-Pacific that has extended into 2026. China-Europe low-value exports are also slowing as regulatory scrutiny intensifies. For instance, France in November suspended access to Shein’s online platform for three months after discovering illegal items on sale, while it has intensified customs inspections of e-commerce imports. Data from Xeneta shows China-US e-commerce exports were down more than 50% for a third consecutive month in December and fell 28% for the full year. Growth in China-Europe e-commerce volume slowed to 8% in December compared with a 54% growth rate in the first 11 months of 2025, but when excluding Russia, volume to Europe fell 23% for the year. Niall van de Wouw, chief airfreight officer at Xeneta, said after three months of steadily slowing e-commerce demand from China, it appears obvious that the slowdown has now become a trend. “If it remains flat or declines further, it will certainly affect many organizations’ growth plans, including those with commitments to freighter conversions that will be relying on the high level of e-commerce demand we have seen in recent years,” Van de Wouw said in a market update Friday. Xeneta estimated that the air cargo market relies on e-commerce for up to 25% of its total annual volumes globally. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A Polish digital trade group has warned that Chinese online platforms were distorting competition across the European Union using “unequal rules” to reshape the e-commerce market. The Chamber of Digital Economy in Poland argued in a report prepared with KPMG that non-EU sellers were scaling rapidly by exploiting gaps in customs and regulatory enforcement that European businesses could not legally replicate. “This is not a debate about protectionism,” Patrycja Sass-Staniszewska, president of the Chamber of Digital Economy, said in a statement. “Polish companies compete on price, service and innovation every day. What they cannot compete with are business models built on regulatory loopholes and the absence of effective enforcement.” The report said Chinese platforms now account for 6% to 11% of Poland’s $42 billion e-commerce market, with strong growth in the electronics and household goods sectors where sustained price dumping risks hollowing out domestic production and investment capacity. The threat to businesses extends across Europe, the Polish group warned, saying that without intervention, EU-based companies will struggle to scale, invest and compete globally. Regulatory clampdowns on e-commerce have profound implications for air freight, as evidenced by the US’ removal of the de minimis exemption from duties for low-value goods that went into force last year. Amid a growing outcry across Europe, the European Union will impose a similar regulatory clampdown from mid-2026. The European Commission has adopted measures to remove the €150 ($177) duty-free exemption for low-value goods, targeting a surge in e-commerce imports from China. In 2024, the European Commission estimated that 4.6 billion parcels with a value not exceeding €150 crossed the EU border, twice the number of parcels from the previous year. The EU de minimis exemption not only allows importers of low-value goods to avoid paying duties, but also removes the need for importers to submit a standard customs declaration. A temporary €3 ($3.50) import duty per item is expected to be applied by the European Commission from July 2026, with a full reform of measures scheduled for 2028. Hollowing out domestic production Data from rate benchmarking platform Xeneta shows the removal of the US’ de minimis exemption for Chinese imports last May led to a sharp decline in e-commerce on the trans-Pacific that has extended into 2026. China-Europe low-value exports are also slowing as regulatory scrutiny intensifies. For instance, France in November suspended access to Shein’s online platform for three months after discovering illegal items on sale, while it has intensified customs inspections of e-commerce imports. Data from Xeneta shows China-US e-commerce exports were down more than 50% for a third consecutive month in December and fell 28% for the full year. Growth in China-Europe e-commerce volume slowed to 8% in December compared with a 54% growth rate in the first 11 months of 2025, but when excluding Russia, volume to Europe fell 23% for the year. Niall van de Wouw, chief airfreight officer at Xeneta, said after three months of steadily slowing e-commerce demand from China, it appears obvious that the slowdown has now become a trend. “If it remains flat or declines further, it will certainly affect many organizations’ growth plans, including those with commitments to freighter conversions that will be relying on the high level of e-commerce demand we have seen in recent years,” Van de Wouw said in a market update Friday. Xeneta estimated that the air cargo market relies on e-commerce for up to 25% of its total annual volumes globally. Contact Greg Knowler at greg.knowler@spglobal.com .

Asia-Europe

Polish trade group hits out at ‘unequal rules’ for Chinese e-commerce platforms

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