<div class="phx-topic abstract-wrapper">The Intermodal Association of North America is adding its voice to the chorus of opposition against a federal push to reclassify independent workers. </div>

The Intermodal Association of North America is adding its voice to the chorus of opposition against a federal push to reclassify independent workers.

3686296_FI.jpg

<div>The group representing US intermodal interests warned Congress Wednesday that a federal rule set to be published next month could expand California’s controversial worker reclassification law nationwide, potentially damaging the country’s supply chain by eliminating the independent contractor model for truck drivers. In testimony to the House Committee on Education and Work Force, the Intermodal Association of North America (IANA) cautioned that if California’s so-called AB5 law — which reclassifies truck drivers as employees instead of independent contractors — becomes national policy, approximately 4.4 million drivers would involuntarily be reclassified. Of those reclassified workers, nearly 2.7 million would suffer significant...

The group representing US intermodal interests warned Congress Wednesday that a federal rule set to be published next month could expand California’s controversial worker reclassification law nationwide, potentially damaging the country’s supply chain by eliminating the independent contractor model for truck drivers. In testimony to the House Committee on Education and Work Force, the Intermodal Association of North America (IANA) cautioned that if California’s so-called AB5 law — which reclassifies truck drivers as employees instead of independent contractors — becomes national policy, approximately 4.4 million drivers would involuntarily be reclassified. Of those reclassified workers, nearly 2.7 million would suffer significant and direct income losses, IANA said. “Changes to this model could have an adverse effect upon all supply chain participants as well as consumers by increasing costs, reducing service efficiency and reliability, and exacerbating existing driver shortages,” IANA CEO Joanne F. Casey said in prepared testimony to the committee. California Assembly Bill 5 (AB5) went into effect last summer after it was upheld in late June by the US Supreme Court, ending the independent contractor model in California. Under the law, truckers cannot operate as contractors but rather must become direct employees of trucking companies, which limits their independence in how they operate. A Department of Labor ruling, set to be published in May after a notice of proposed rulemaking last October, would provide federal guidance on how employers should classify workers who are economically dependent on a company, whether as employees with legal wage and hour protections or as independent contractors. How the transport industry classifies independent contractors could be significantly impacted by the rule. Claims of ‘anti-worker’ A reclassification of truck drivers on the national level could increase employment costs by up to $61 billion and risk up to $2.3 trillion in gross domestic product, according to estimates from the center-right American Action Forum. Casey said in her testimony that unlike employee drivers, independent contractors invest in and operate their own company, purchasing equipment and footing the associated operating costs. “It is important to note that each owner-operator makes a conscious choice to remain an independent contractor, but also can choose to secure full-time employment in the trucking industry,” Casey said. At Wednesday’s hearing, Rep. Kevin Kiley, R-Calif., chairman of the House Workforce Protections Subcommittee, called the Biden administration’s move to reclassify independent contractors “anti-worker,” saying it would limit or eliminate the gig economy, independent contracting, freelancing, and self-employment. The hearing comes one day before Julie Su’s nomination hearing in the Senate to become the next Secretary of Labor. Opposition to Su’s nomination has gained momentum because of her support of AB5 while she was California’s labor chief. Contact Teri Errico Griffis at teri.griffis@spglobal.com .

Trucking News

Rail News

Transport, Trade and Regulation News

Trucking labor

Surface

IANA warns against national reclassification of independent contractors

<div class="phx-topic abstract-wrapper">If trucking rates remain elevated into the spring, carriers will likely move to push prices higher on new and existing contracts in the second half of the year.</div>

If trucking rates remain elevated into the spring, carriers will likely move to push prices higher on new and existing contracts in the second half of the year.

Feature image

<div class="phx-topic">US trucking executives are beginning to feel better about the state of the freight economy, hoping tighter capacity will lead to higher rates and, ultimately, an end to the long freight recession. The increasingly upbeat mood comes as spot dry-van rates, as compiled by DAT Freight and Analytics, remain elevated compared with a year ago, even after the disruptive winter weather of January subsided. The average rate, excluding fuel, on DAT’s top 50 US lanes has hovered around $2.30 per mile this month, up 18% to 20% compared with the same period a year ago. Adam Miller, CEO of Knight-Swift Transportation, told the Journal of Commerce that the market is balanced between carriers and shippers. He noted that the reaction to the winter storms and frigid temperatures last month were in stark contrast to January 2025 when a similar snowstorm had zero impact on spot market rates. “It kind of feels like a little bit of Goldilocks right now,” Miller said. “Inflation seems to be under control. I think it’s positioning for demand to see some life because it’s been relatively muted. While capacity continues to exit, I think that puts the supply-demand relationship in a much better position (for trucking companies).” The snow and ice from the heavy winter storm that blanketed a large portion of the US in late January is melting, and trucks that were sidelined are now back in business. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="f7dc31b8-1e1c-4a59-907f-2391c69d4e9f"></dynamic-object></div>Trucking executives say there is a feeling that the next two or three weeks will indicate whether this is really the beginning of the end of the three-year freight recession, something that could determine if trucking companies can push contract rate increases on shippers in the coming months. “The farther we can get from storms, if we continue to see that strength, then it’s going to feel a little bit different this year than the last few years,” Brad Hicks, president of Dedicated Contract Services at J.B. Hunt, said Tuesday at Barclays’ Annual Industrial Select Conference in Miami. “We have had a lot of disruptions from winter weather. We’ve had a lot of customer meetings over the last several weeks, and I would say it should be no surprise that no customer is raising their hands saying, ‘can't wait to pay you more.’” <h3>Gain in Cass index for January </h3>The Cass Freight Index suggests the changes taking place in the truckload market might be more than a weather disruption. The Cass Truckload Linehaul Index, a measurement of rates, rose 3.2% year over year in January. “This index is mostly comprised of contract rates, and anecdotally we hear about more shippers initiating one-year bids, suggesting movement in the cycle beyond just weather effects,” Tim Denoyer, author of the Cass Freight Index, wrote Tuesday. The 3.2% hike is consistent with what carrier Werner Enterprises is seeing. “Low to mid-single digits on our contract renewals would be really the starting point there,” Chris Neal, Werner’s senior vice president of pricing, said at the Citi Global Industrial Tech &amp; Mobility Conference Tuesday. "We’ve had some good success already early in the year with some of those renewals.” Werner CEO Derek Leathers admitted while the winter weather played a role, the recovery is also a supply-driven <a href="https://www.joc.com/article/usdot-releases-interim-final-rule-on-non-domiciled-cdl-holders-6169023">as the federal government cracks down on non-domiciled commercial drivers licenses (CDLs)</a> and English language proficiency of truckers in the US. “You’re finally starting to see a cleansing of some of the capacity out there that needed to be addressed," Leathers said at the Citi Global conference. "It’s been mostly supply-driven up until now, and with some signs now of a little bit of demand spark coupled with that, it puts us in a pretty optimistic position.” Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com.</a></div>

US trucking executives are beginning to feel better about the state of the freight economy, hoping tighter capacity will lead to higher rates and, ultimately, an end to the long freight recession. The increasingly upbeat mood comes as spot dry-van rates, as compiled by DAT Freight and Analytics, remain elevated compared with a year ago, even after the disruptive winter weather of January subsided. The average rate, excluding fuel, on DAT’s top 50 US lanes has hovered around $2.30 per mile this month, up 18% to 20% compared with the same period a year ago. Adam Miller, CEO of Knight-Swift Transportation, told the Journal of Commerce that the market is balanced between carriers and shippers. He noted that the reaction to the winter storms and frigid temperatures last month were in stark contrast to January 2025 when a similar snowstorm had zero impact on spot market rates. “It kind of feels like a little bit of Goldilocks right now,” Miller said. “Inflation seems to be under control. I think it’s positioning for demand to see some life because it’s been relatively muted. While capacity continues to exit, I think that puts the supply-demand relationship in a much better position (for trucking companies).” The snow and ice from the heavy winter storm that blanketed a large portion of the US in late January is melting, and trucks that were sidelined are now back in business. Trucking executives say there is a feeling that the next two or three weeks will indicate whether this is really the beginning of the end of the three-year freight recession, something that could determine if trucking companies can push contract rate increases on shippers in the coming months. “The farther we can get from storms, if we continue to see that strength, then it’s going to feel a little bit different this year than the last few years,” Brad Hicks, president of Dedicated Contract Services at J.B. Hunt, said Tuesday at Barclays’ Annual Industrial Select Conference in Miami. “We have had a lot of disruptions from winter weather. We’ve had a lot of customer meetings over the last several weeks, and I would say it should be no surprise that no customer is raising their hands saying, ‘can't wait to pay you more.’” Gain in Cass index for January The Cass Freight Index suggests the changes taking place in the truckload market might be more than a weather disruption. The Cass Truckload Linehaul Index, a measurement of rates, rose 3.2% year over year in January. “This index is mostly comprised of contract rates, and anecdotally we hear about more shippers initiating one-year bids, suggesting movement in the cycle beyond just weather effects,” Tim Denoyer, author of the Cass Freight Index, wrote Tuesday. The 3.2% hike is consistent with what carrier Werner Enterprises is seeing. “Low to mid-single digits on our contract renewals would be really the starting point there,” Chris Neal, Werner’s senior vice president of pricing, said at the Citi Global Industrial Tech & Mobility Conference Tuesday. "We’ve had some good success already early in the year with some of those renewals.” Werner CEO Derek Leathers admitted while the winter weather played a role, the recovery is also a supply-driven as the federal government cracks down on non-domiciled commercial drivers licenses (CDLs) and English language proficiency of truckers in the US. “You’re finally starting to see a cleansing of some of the capacity out there that needed to be addressed," Leathers said at the Citi Global conference. "It’s been mostly supply-driven up until now, and with some signs now of a little bit of demand spark coupled with that, it puts us in a pretty optimistic position.” Contact Dan Ronan at contactdanronan@gmail.com.

Truckload

Trucking executives buoyed by market signals as winter exit nears

<div class="phx-topic abstract-wrapper">CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, adding the liner would also expand its engagement in container manufacturing and ship recycling.</div>

CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, adding the liner would also expand its engagement in container manufacturing and ship recycling.

<div class="phx-topic">CMA CGM has signed a deal with India’s Cochin Shipyard Limited for six dual-fuel liquefied natural gas-powered ships of 1,700-TEU capacity, the carrier announced Wednesday. The order was made during a visit to New Delhi by CMA CGM executives that included a pledge to add another 1,500 seafarer recruits to the 1,000 already employed by CMA Ships in the country. CMA CGM CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, noting CMA CGM would also expand its engagement in container manufacturing and ship recycling. “This is fully aligned with Prime Minister Modi’s Maritime Vision 2047 to position India as a major maritime nation,” Saadé said. “As corridors such as India-Middle East-Europe Economic Corridor (IMEC) develop ... CMA CGM stands ready to contribute to this new phase of global trade.” In partnership with technology and digital consultant Capgemini, CMA CGM has also established a dedicated research and development (R&amp;D) hub in India, positioning the country as a key global center for innovation within the group. The India R&amp;D hub is involved in developing next-generation digital and AI-enabled solutions that support CMA CGM’s worldwide operations. New Delhi in recent years has invested heavily in freight infrastructure modernization through public-private partnerships and pushed digital logistics solutions along with sweeping policy reforms to ease trade processes. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>.   </div>

CMA CGM has signed a deal with India’s Cochin Shipyard Limited for six dual-fuel liquefied natural gas-powered ships of 1,700-TEU capacity, the carrier announced Wednesday. The order was made during a visit to New Delhi by CMA CGM executives that included a pledge to add another 1,500 seafarer recruits to the 1,000 already employed by CMA Ships in the country. CMA CGM CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, noting CMA CGM would also expand its engagement in container manufacturing and ship recycling. “This is fully aligned with Prime Minister Modi’s Maritime Vision 2047 to position India as a major maritime nation,” Saadé said. “As corridors such as India-Middle East-Europe Economic Corridor (IMEC) develop ... CMA CGM stands ready to contribute to this new phase of global trade.” In partnership with technology and digital consultant Capgemini, CMA CGM has also established a dedicated research and development (R&D) hub in India, positioning the country as a key global center for innovation within the group. The India R&D hub is involved in developing next-generation digital and AI-enabled solutions that support CMA CGM’s worldwide operations. New Delhi in recent years has invested heavily in freight infrastructure modernization through public-private partnerships and pushed digital logistics solutions along with sweeping policy reforms to ease trade processes. Contact Greg Knowler at  greg.knowler@spglobal.com .   

Container lines

Maritime

CMA CGM inks order for six dual-fuel LNG ships with India yard

<div class="phx-topic abstract-wrapper">The success of container lines in keeping vessel utilization high by removing functional capacity weakens the network and ups volatility in ocean reliability.</div>

The success of container lines in keeping vessel utilization high by removing functional capacity weakens the network and ups volatility in ocean reliability.

<div class="phx-topic">The high level of port-to-port ocean reliability the Gemini Cooperation has delivered since its launch a year ago is pressuring other carriers and alliances to up their game. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6172263_0.1.jpg"></img></div>Yet the obstacles for ocean carriers to remain profitable are only expanding as liners cycle deeper into overcapacity in the coming years. To protect their profitability, container lines have become better at managing short-term demand and supply and removing functional capacity. Their success in keeping utilization high, paradoxically, weakens the network, said Trine Nielsen, vice president of ocean/global at forwarder Flexport.“As ‘micro-events’ [e.g., localized port congestion, labor strikes] are expected to increase due to shifting trade patterns and introducing more mega-ships, we expect network instability to rise,” she said. “In fact, as more capacity enters the market, we anticipate even further instability because we should expect more aggressive capacity management actions by carriers to protect their profitability.” Facing congestion at Asia load centers such as Shanghai or Ningbo, ocean carriers may have the vessel omit the port entirely to not throw off the rest of their schedule. In some cases, vessels “swap” calls with one vessel covering Shanghai rather than Ningbo, and vice versa, Nielsen said. “While this maximizes asset utilization and prevents a vessel backlog, it triggers blank sailings and forces customers to deal with rolled cargo and unpredictable transit times,” she said. <h3>Obstacles to reliability ratchet up </h3>Port productivity globally is worsening, with S&amp;P Global’s Container Port Performance Index falling from a reading of 38 in 2020 to zero in 2024. The number of tropical storms has increased in recent years, and the intensity and unpredictability of cyclones has increased in the last decade, said Craig West, CEO/Europe at forecasting company Weathernews. “Volatility is not confined to extreme events. Conditions in the Central Atlantic have recently been practically impassable, with persistent weather patterns across the Bay of Biscay and English Channel leaving vessels drifting for multiple days,” West told the Journal of Commerce. “There is no headline-grabbing storm in these situations, yet the commercial damage to uptime and schedule reliability is significant.” Optimistically, the volatility from an overall shambolic network offers increased incentives for ocean carriers to improve their reliability, allowing them to stand out more in a volatile, oft-commoditized market and gain higher and more stable pricing in return. After launching in February 2025, Gemini members Maersk and Hapag-Lloyd are making the case that their joint network’s better than 90% reliability is giving customers enough certainty to reduce their inventories by two weeks. Vessels operated within the alliance hit 81% reliability in 2025, according to online benchmarking platform Xeneta’s eeSea data. Global ocean reliability for the entire industry has been falling since July, notching a reading of 25.4% thus far in February, according to eeSea. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4abe02d4-ed18-461a-ac0b-87ef52e3192b"></dynamic-object></div>“Shippers are also telling us that one of their priorities for 2026 is service reliability,” said Kelly Buckley, deputy director of ocean procurement at Drewry Supply Chain advisors. “Gemini has really raised the profile of that topic, and we can expect shippers to assess much more carefully on-time performance and lead times as part of their [trans-Pacific service contracting] tender process this year.” <h3>Finding reliability in service contracts </h3>The last few years of shipping disruptions due to the pandemic, Suez Canal diversions, and then tariffs left small and medium-size shippers with little time to focus on reliability as they tried to keep their business afloat, Buckley said. Mounting overcapacity gives these shippers more leverage in service contract negotiations and allows them, she said, to “actually start to take a step back and ask questions without fear of the fact that your cargo then may not make it on the vessel the next week.” Transparency on schedule changes remains an issue, Buckley said. Shippers still struggle to keep up with nearly last-minute blank notice announcements, and she said some Drewry customers learned after that fact that their cargo was routed through the Suez Canal via the perilous waters of the Red Sea. Meanwhile, although transit time reliability is critical for Sanmar’s new product launches and deliveries from new vendors, it’s only one element of service, said John Janson, global logistics director at the apparel shipper. “Normally, transit reliability is not as important to us if it is within a reasonable timeframe,” he said. “Having the equipment and space is more critical as our origins are counting on being able to load as most do not have storage.” Janson noted that ocean carriers allowed Sanmar — the US’ 79th-largest importer, according to the Journal of Commerce’s 2024 rankings — to exceed forecast volumes for emergencies and guaranteed that shipments would beat tariffs deadlines, saving the company hundreds of thousands of dollars. “No surprise, the folks that stepped up were the ones where we have made the most serious investment in relationships,” he said. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

The high level of port-to-port ocean reliability the Gemini Cooperation has delivered since its launch a year ago is pressuring other carriers and alliances to up their game. Yet the obstacles for ocean carriers to remain profitable are only expanding as liners cycle deeper into overcapacity in the coming years. To protect their profitability, container lines have become better at managing short-term demand and supply and removing functional capacity. Their success in keeping utilization high, paradoxically, weakens the network, said Trine Nielsen, vice president of ocean/global at forwarder Flexport. “As ‘micro-events’ [e.g., localized port congestion, labor strikes] are expected to increase due to shifting trade patterns and introducing more mega-ships, we expect network instability to rise,” she said. “In fact, as more capacity enters the market, we anticipate even further instability because we should expect more aggressive capacity management actions by carriers to protect their profitability.” Facing congestion at Asia load centers such as Shanghai or Ningbo, ocean carriers may have the vessel omit the port entirely to not throw off the rest of their schedule. In some cases, vessels “swap” calls with one vessel covering Shanghai rather than Ningbo, and vice versa, Nielsen said. “While this maximizes asset utilization and prevents a vessel backlog, it triggers blank sailings and forces customers to deal with rolled cargo and unpredictable transit times,” she said. Obstacles to reliability ratchet up Port productivity globally is worsening, with S&P Global’s Container Port Performance Index falling from a reading of 38 in 2020 to zero in 2024. The number of tropical storms has increased in recent years, and the intensity and unpredictability of cyclones has increased in the last decade, said Craig West, CEO/Europe at forecasting company Weathernews. “Volatility is not confined to extreme events. Conditions in the Central Atlantic have recently been practically impassable, with persistent weather patterns across the Bay of Biscay and English Channel leaving vessels drifting for multiple days,” West told the Journal of Commerce. “There is no headline-grabbing storm in these situations, yet the commercial damage to uptime and schedule reliability is significant.” Optimistically, the volatility from an overall shambolic network offers increased incentives for ocean carriers to improve their reliability, allowing them to stand out more in a volatile, oft-commoditized market and gain higher and more stable pricing in return. After launching in February 2025, Gemini members Maersk and Hapag-Lloyd are making the case that their joint network’s better than 90% reliability is giving customers enough certainty to reduce their inventories by two weeks. Vessels operated within the alliance hit 81% reliability in 2025, according to online benchmarking platform Xeneta’s eeSea data. Global ocean reliability for the entire industry has been falling since July, notching a reading of 25.4% thus far in February, according to eeSea. “Shippers are also telling us that one of their priorities for 2026 is service reliability,” said Kelly Buckley, deputy director of ocean procurement at Drewry Supply Chain advisors. “Gemini has really raised the profile of that topic, and we can expect shippers to assess much more carefully on-time performance and lead times as part of their [trans-Pacific service contracting] tender process this year.” Finding reliability in service contracts The last few years of shipping disruptions due to the pandemic, Suez Canal diversions, and then tariffs left small and medium-size shippers with little time to focus on reliability as they tried to keep their business afloat, Buckley said. Mounting overcapacity gives these shippers more leverage in service contract negotiations and allows them, she said, to “actually start to take a step back and ask questions without fear of the fact that your cargo then may not make it on the vessel the next week.” Transparency on schedule changes remains an issue, Buckley said. Shippers still struggle to keep up with nearly last-minute blank notice announcements, and she said some Drewry customers learned after that fact that their cargo was routed through the Suez Canal via the perilous waters of the Red Sea. Meanwhile, although transit time reliability is critical for Sanmar’s new product launches and deliveries from new vendors, it’s only one element of service, said John Janson, global logistics director at the apparel shipper. “Normally, transit reliability is not as important to us if it is within a reasonable timeframe,” he said. “Having the equipment and space is more critical as our origins are counting on being able to load as most do not have storage.” Janson noted that ocean carriers allowed Sanmar — the US’ 79th-largest importer, according to the Journal of Commerce’s 2024 rankings — to exceed forecast volumes for emergencies and guaranteed that shipments would beat tariffs deadlines, saving the company hundreds of thousands of dollars. “No surprise, the folks that stepped up were the ones where we have made the most serious investment in relationships,” he said. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Trans-Atlantic

Asia-Europe

Trans-Pacific

Container Shipping News

Greater capacity control needs hinder ocean reliability efforts

<div class="phx-topic abstract-wrapper">As volumes of new energy generation and storage technologies increase, shippers expect more documentation, transparency and greater control over risk, according to project forwarders and carriers.</div>

As volumes of new energy generation and storage technologies increase, shippers expect more documentation, transparency and greater control over risk, according to project forwarders and carriers.

<div class="phx-topic">A nascent boom in the transport of new power-related technologies such as large scale battery energy storage system (BESS) units is placing a higher compliance burden on project logistics professionals, from dangerous goods regulations and port processes to biosecurity and onsite safety requirements. Regulators and government authorities are restricting approval pathways, and shippers expect more documentation, more transparency, and greater control over risk, Colin Charnock, group CEO of forwarder Trans Global Projects (TGP), told the Journal of Commerce. “The power sector’s longstanding high expectations are not only continuing but intensifying,” Charnock said. “Logistics providers must operate with deeper technical expertise, stronger quality governance and more structured execution models. “Capacity planning, specialized equipment availability and cross-border regulatory alignment will all become more challenging as demand increases, particularly for remote-area deliveries, renewable energy projects and next-generation storage systems,” he added. And although it may be supercharged, <a href="https://www.joc.com/article/lumpy-project-cargo-demand-to-lead-to-two-tier-mpv-market-6164866">the power drive isn’t likely to be steady or uniform</a>, according to a spokesperson for Chipolbrok who did not want to be identified. The heavy-lift and multipurpose vessel (MPV) operator has seen a “remarkable decline” in oil and gas development <a href="https://www.joc.com/article/reversal-in-us-clean-energy-investment-signals-shift-in-project-cargo-momentum-6169519">outside the US</a>, with traditional power plant equipment volumes now “significantly exceeded” by demand from renewable energy and infrastructure projects, the spokesperson said. Earlier this year, Chipolbrok announced an order for up to 10 60,800-deadweight-ton MPVs that will increase its fleet to more than 40 vessels. The ships, the first of which is scheduled for delivery in November 2027, will be capable of carrying containerized energy storage systems, battery packs and electrical charging equipment, as well as other power-related project cargoes such as wind farm components. Demand is also uneven among geographical regions, the spokesperson said, adding that Chipolbrok is “focusing heavily on developments in the Arab world and the Indian subcontinent.” The situation in Central Europe, however, remains “somewhat unclear,” he said, as infrastructure projects have been overshadowed by military buildup and the war in Ukraine, even though there is a significant need for development there. Investors, developers and logistics providers must also deal with sudden policy upheavals, such as the Trump administration’s decision to cancel five major US offshore wind projects in late 2025. A January court ruling allowed construction to resume on all five sites — Coastal Virginia Offshore Wind-Commercial, Empire Wind 1, Revolution Wind, Sunrise Wind, and Vineyard Wind 1 — but the administration plans to appeal that decision, US Secretary of the Interior Doug Burgum said <a href="https://www.youtube.com/watch?v=JHSzhcphfkc">in an interview with Bloomberg Television.</a><h3>An ‘evolving’ environment </h3>Charnock said the global transition toward lower- and zero-carbon energy sources has further accelerated freight demand from the power generation and storage sector, but noted that TGP’s current cargo pipeline “spans every major segment of the sector: hydrogen, wind, nuclear, traditional generation and emerging technologies.” Although the logistics provider’s approach to transporting renewable power project cargoes does not differ fundamentally from moving conventional energy freight, the variety of equipment is increasing and each technology brings its own regulatory and operational challenges, he said. “Many of the core components, such as transformers, cables and control systems, are identical across both conventional and renewable applications,” Charnock said. “What differs is the regulatory framework around each technology, the sequencing of deliveries and in some cases the level of scrutiny from authorities and investors.” Charnock cited a recent delivery of 48 lithium BESS units from China to a remote site in Western Australia, the region’s first approved lithium battery import, as an example of the more stringent safety, compliance and risk management environment around new power technologies. Operationally, the move involved breakbulk ocean transport, specialized handling equipment and a challenging 90-km final leg across a dirt road. It also required “extensive compliance work,” he said, including a two year consultation process to secure port approval under new International Maritime Organization (IMO) regulations, strict dangerous goods procedures, high pressure cleaning, and detailed biosecurity and customs controls. <h3>‘Elevated safety protocol’ </h3>Jack Zhou, general manager at MPV operator AAL Shipping, said transporting IMO-classified cargo such as BESS units “requires elevated security documentation and safety protocol.” For starters, all AAL vessels hold a Document of Compliance for the Carriage of Dangerous Goods, which includes tailored onboard contingency plans covering spillage, fire and other emergency scenarios involving BESS units. “To further enhance the safety of the vessel and monitor the internal temperature of the BESS units, AAL has invested in flammable-gas detectors, temperature and humidity monitoring systems, portable thermal cameras and high-capacity submersible pumps,” Zhou told the Journal of Commerce. “Crews undergo specific drills prior to each shipment and vessels are equipped with toxic-gas protective gear.” Strict loading controls overseen by the vessel’s Officer of the Watch ensure all dangerous goods signals are displayed and that no “hot work,” such as welding the D-rings used for lashing, is carried out after BESS units are loaded onboard. Weather routing experts help the in-house performance optimization team plan voyage routes to minimize vessel motion. During transit, the crew performs regular inspections and activates immediate countermeasures if any irregularities are found. “As BESS technology scales and unit sizes grow, AAL expects regulations to further evolve,” Zhou added. Contact Felicity Landon at <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com</a>.</div>

A nascent boom in the transport of new power-related technologies such as large scale battery energy storage system (BESS) units is placing a higher compliance burden on project logistics professionals, from dangerous goods regulations and port processes to biosecurity and onsite safety requirements. Regulators and government authorities are restricting approval pathways, and shippers expect more documentation, more transparency, and greater control over risk, Colin Charnock, group CEO of forwarder Trans Global Projects (TGP), told the Journal of Commerce. “The power sector’s longstanding high expectations are not only continuing but intensifying,” Charnock said. “Logistics providers must operate with deeper technical expertise, stronger quality governance and more structured execution models. “Capacity planning, specialized equipment availability and cross-border regulatory alignment will all become more challenging as demand increases, particularly for remote-area deliveries, renewable energy projects and next-generation storage systems,” he added. And although it may be supercharged, the power drive isn’t likely to be steady or uniform , according to a spokesperson for Chipolbrok who did not want to be identified. The heavy-lift and multipurpose vessel (MPV) operator has seen a “remarkable decline” in oil and gas development outside the US , with traditional power plant equipment volumes now “significantly exceeded” by demand from renewable energy and infrastructure projects, the spokesperson said. Earlier this year, Chipolbrok announced an order for up to 10 60,800-deadweight-ton MPVs that will increase its fleet to more than 40 vessels. The ships, the first of which is scheduled for delivery in November 2027, will be capable of carrying containerized energy storage systems, battery packs and electrical charging equipment, as well as other power-related project cargoes such as wind farm components. Demand is also uneven among geographical regions, the spokesperson said, adding that Chipolbrok is “focusing heavily on developments in the Arab world and the Indian subcontinent.” The situation in Central Europe, however, remains “somewhat unclear,” he said, as infrastructure projects have been overshadowed by military buildup and the war in Ukraine, even though there is a significant need for development there. Investors, developers and logistics providers must also deal with sudden policy upheavals, such as the Trump administration’s decision to cancel five major US offshore wind projects in late 2025. A January court ruling allowed construction to resume on all five sites — Coastal Virginia Offshore Wind-Commercial, Empire Wind 1, Revolution Wind, Sunrise Wind, and Vineyard Wind 1 — but the administration plans to appeal that decision, US Secretary of the Interior Doug Burgum said in an interview with Bloomberg Television. An ‘evolving’ environment Charnock said the global transition toward lower- and zero-carbon energy sources has further accelerated freight demand from the power generation and storage sector, but noted that TGP’s current cargo pipeline “spans every major segment of the sector: hydrogen, wind, nuclear, traditional generation and emerging technologies.” Although the logistics provider’s approach to transporting renewable power project cargoes does not differ fundamentally from moving conventional energy freight, the variety of equipment is increasing and each technology brings its own regulatory and operational challenges, he said. “Many of the core components, such as transformers, cables and control systems, are identical across both conventional and renewable applications,” Charnock said. “What differs is the regulatory framework around each technology, the sequencing of deliveries and in some cases the level of scrutiny from authorities and investors.” Charnock cited a recent delivery of 48 lithium BESS units from China to a remote site in Western Australia, the region’s first approved lithium battery import, as an example of the more stringent safety, compliance and risk management environment around new power technologies. Operationally, the move involved breakbulk ocean transport, specialized handling equipment and a challenging 90-km final leg across a dirt road. It also required “extensive compliance work,” he said, including a two year consultation process to secure port approval under new International Maritime Organization (IMO) regulations, strict dangerous goods procedures, high pressure cleaning, and detailed biosecurity and customs controls. ‘Elevated safety protocol’ Jack Zhou, general manager at MPV operator AAL Shipping, said transporting IMO-classified cargo such as BESS units “requires elevated security documentation and safety protocol.” For starters, all AAL vessels hold a Document of Compliance for the Carriage of Dangerous Goods, which includes tailored onboard contingency plans covering spillage, fire and other emergency scenarios involving BESS units. “To further enhance the safety of the vessel and monitor the internal temperature of the BESS units, AAL has invested in flammable-gas detectors, temperature and humidity monitoring systems, portable thermal cameras and high-capacity submersible pumps,” Zhou told the Journal of Commerce. “Crews undergo specific drills prior to each shipment and vessels are equipped with toxic-gas protective gear.” Strict loading controls overseen by the vessel’s Officer of the Watch ensure all dangerous goods signals are displayed and that no “hot work,” such as welding the D-rings used for lashing, is carried out after BESS units are loaded onboard. Weather routing experts help the in-house performance optimization team plan voyage routes to minimize vessel motion. During transit, the crew performs regular inspections and activates immediate countermeasures if any irregularities are found. “As BESS technology scales and unit sizes grow, AAL expects regulations to further evolve,” Zhou added. Contact Felicity Landon at felicity@felicitylandon.com .

Breakbulk carriers

Energy projects

Heavy-haul transport

Project cargo

Breakbulk News

Growing energy cargo demand brings higher compliance burden

<div class="phx-topic abstract-wrapper">China export forecasts could top 8 million vehicles this year, providing a steady flow of cargo for the expected 8% increase in the global ro/ro fleet.</div>

China export forecasts could top 8 million vehicles this year, providing a steady flow of cargo for the expected 8% increase in the global ro/ro fleet.

<div class="phx-topic">Surging vehicle exports from China to developing markets will offset looming fears of overcapacity in the vehicle carrier market, the head of one of the roll-on/roll-off sector’s biggest operators said. Lasse Kristoffersen, president and CEO of Wallenius Wilhelmsen, predicted the growth in vehicle exports, especially from China, will match the influx of new vehicle carrier capacity this year based on manufacturers’ sales forecasts. He said China’s top seven manufacturers, including BYD, Geely, Chery and Nio, planned to ship an extra 2.3 million vehicles to overseas markets this year on top of official total vehicle exports of 5.9 million units. That followed a 24% rise in China’s vehicle exports to 6.9 million last year, up from 5 million in the year prior, Kristoffersen said during a results briefing last week. Kristoffersen noted the peak in pure car and truck carrier (PCTC) deliveries last year with 75 ships totaling 600,000 car equivalent units (CEU) joining the global fleet. A further 67 vessels are set for delivery this year, adding to the current fleet of 899 ships, according to figures from maritime consultant AXS Marine and British shipbroking house Clarksons.   This year’s new vessel deliveries equate to an 8% rise in total fleet capacity to 5.3 million CEUs this year, adding to the 13% increase last year. “This extra export volume more or less matches the extra capacity coming out of shipyards,” Kristoffersen said during the briefing. “That’s why we believe China will surprise on the upside.” Both Mitsui OSK Lines and “K” Line, in earnings statements last week, said they expected “solid demand” for vehicle exports to continue this year. <h3>Focus on emerging markets </h3>Kristoffersen said China’s vehicle export boom is being driven by a surge in exports to emerging markets including Latin America, where volumes are expected to grow 40% this year, and the Middle East, where 14% growth is expected. These developing markets call for longer two-month voyages, which reduces the impact of the influx of new shipping capacity, he said. Kristoffersen was commenting after several analysts, including Clarksons and AXS Marine, recently warned that the vehicle carrier market faces overcapacity, falling freight rates and lackluster demand growth on the back of limited scrapping. “While Chinese car and vehicle exports continue to record strong [volumes], the expansion of the PCTC fleet has become increasingly disproportionate to underlying market fundamentals, “ASX RoRo said in its February market report. “While Chinese vehicle exports continue to expand and are unlikely to slow materially, this growth largely reflects a shift in production and export patterns rather than a meaningful increase in global vehicle demand,” the report added. China’s vehicle exports continue to outpace Japan, which it overtook as the world’s biggest vehicle exporter in 2023. Japan and South Korea have both seen vehicle exports fall by almost 2% over the last two years, while Western manufacturers saw a steeper decline of between 4% and 10% in exports to Asia last year. “Unless demolition activity picks up more decisively, utilization and earnings are likely to come under pressure,” the AXS RoRo report said. Clarksons was slightly more upbeat, saying while one-year vessel charter rates had fallen 63% at the end of last year from “exceptional highs” in 2024, carriers generally continue to report “healthy earnings as cargo continues to be moved under contracts renegotiated at higher levels.” Highlighting the potential for vessel scrapping, Mitsui OSK Lines said in an earnings report this month that 29%, or 239 vehicle carriers, of the existing fleet of 819 ships is over 20 years old, while 18% is more than 26 years old. Kristoffersen said the decline in rates, from $115,000 per day for a 6,500-CEU ship in the first half of 2024 to almost $45,000 per day last month, has also opened opportunities to charter ships at more realistic levels for ad hoc spot vehicle and high-and-heavy cargoes. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Surging vehicle exports from China to developing markets will offset looming fears of overcapacity in the vehicle carrier market, the head of one of the roll-on/roll-off sector’s biggest operators said. Lasse Kristoffersen, president and CEO of Wallenius Wilhelmsen, predicted the growth in vehicle exports, especially from China, will match the influx of new vehicle carrier capacity this year based on manufacturers’ sales forecasts. He said China’s top seven manufacturers, including BYD, Geely, Chery and Nio, planned to ship an extra 2.3 million vehicles to overseas markets this year on top of official total vehicle exports of 5.9 million units. That followed a 24% rise in China’s vehicle exports to 6.9 million last year, up from 5 million in the year prior, Kristoffersen said during a results briefing last week. Kristoffersen noted the peak in pure car and truck carrier (PCTC) deliveries last year with 75 ships totaling 600,000 car equivalent units (CEU) joining the global fleet. A further 67 vessels are set for delivery this year, adding to the current fleet of 899 ships, according to figures from maritime consultant AXS Marine and British shipbroking house Clarksons.   This year’s new vessel deliveries equate to an 8% rise in total fleet capacity to 5.3 million CEUs this year, adding to the 13% increase last year. “This extra export volume more or less matches the extra capacity coming out of shipyards,” Kristoffersen said during the briefing. “That’s why we believe China will surprise on the upside.” Both Mitsui OSK Lines and “K” Line, in earnings statements last week, said they expected “solid demand” for vehicle exports to continue this year. Focus on emerging markets Kristoffersen said China’s vehicle export boom is being driven by a surge in exports to emerging markets including Latin America, where volumes are expected to grow 40% this year, and the Middle East, where 14% growth is expected. These developing markets call for longer two-month voyages, which reduces the impact of the influx of new shipping capacity, he said. Kristoffersen was commenting after several analysts, including Clarksons and AXS Marine, recently warned that the vehicle carrier market faces overcapacity, falling freight rates and lackluster demand growth on the back of limited scrapping. “While Chinese car and vehicle exports continue to record strong [volumes], the expansion of the PCTC fleet has become increasingly disproportionate to underlying market fundamentals, “ASX RoRo said in its February market report. “While Chinese vehicle exports continue to expand and are unlikely to slow materially, this growth largely reflects a shift in production and export patterns rather than a meaningful increase in global vehicle demand,” the report added. China’s vehicle exports continue to outpace Japan, which it overtook as the world’s biggest vehicle exporter in 2023. Japan and South Korea have both seen vehicle exports fall by almost 2% over the last two years, while Western manufacturers saw a steeper decline of between 4% and 10% in exports to Asia last year. “Unless demolition activity picks up more decisively, utilization and earnings are likely to come under pressure,” the AXS RoRo report said. Clarksons was slightly more upbeat, saying while one-year vessel charter rates had fallen 63% at the end of last year from “exceptional highs” in 2024, carriers generally continue to report “healthy earnings as cargo continues to be moved under contracts renegotiated at higher levels.” Highlighting the potential for vessel scrapping, Mitsui OSK Lines said in an earnings report this month that 29%, or 239 vehicle carriers, of the existing fleet of 819 ships is over 20 years old, while 18% is more than 26 years old. Kristoffersen said the decline in rates, from $115,000 per day for a 6,500-CEU ship in the first half of 2024 to almost $45,000 per day last month, has also opened opportunities to charter ships at more realistic levels for ad hoc spot vehicle and high-and-heavy cargoes. Contact Keith Wallis at keithwallis@hotmail.com .

Ro/ro cargo

Surging China auto exports to counter carrier overcapacity fears: Wilhelmsen CEO

Use code GTW595 at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code FTW25 at checkout to save 25% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

SUBSCRIBE AND SAVE 25%

Use code GW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

SAVE $900 ON A GOLD SUBSCRIPTION

Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Wide Box

SUBSCRIBE TODAY

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code GW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

SAVE $500 ON A GOLD SUBSCRIPTION

Subscribe Now - Anonymous to Gold - Wide Box

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

SMC3rates_shutterstock_5247046 (1).jpg

Truck brokers

Filling the Supply Chain Education Gap with LTL Education Courses

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

SUBSCRIBE AND SAVE 25%: Use code FTW25 to save 25% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

SUBSCRIBE TODAY: Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Offer Box

UPGRADE TO GOLD AND SAVE: Use code GTW595 at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

Subscribe Now - Anonymous to Gold - Offer Box

SAVE $900 ON A GOLD SUBSCRIPTION: Use code GW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

SAVE $500 ON A GOLD SUBSCRIPTION: Use code GW995 and save $500 on the first year of a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

TPM Conference - Rectangle Box

Attend TPM26

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

The Journal of Commerce’s surface transport news and analysis focuses on landside transport movement — from railroad news to trucking news — including full load trucking, less-than-truckload (LTL), refrigerated (or reefer) trucking, flatbed and domestic and international intermodal rail, and how it connects with seaports, inland rail hubs, distribution centers and transloading operations. Reporting on the surface transport sector covers the movement of domestic shipments within the United States and international cargoes transported via domestic equipment including trailers and 53-foot containers.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Trucking News | Journal of Commerce

Stay updated with our rail transport news and trends. Journal of Commerce covers intermodal news, and port connectivity news in the container rail transport sector.

Rail News | Journal of Commerce

Explore the world of ground transport news - from trucks to railroads, intermodal connections, and port ties. Daily insights on US and global shipments.

Latest News

More News & Analysis

Trucking executives buoyed by market signals as winter exit nears

CMA CGM inks order for six dual-fuel LNG ships with India yard

Greater capacity control needs hinder ocean reliability efforts