<div class="phx-topic abstract-wrapper">Longshore workers represented by ILWU Local 13 are refusing to stagger their meal breaks at the ports of Los Angeles and Long Beach, resulting in periods when no work is being done on the docks, says the Pacific Maritime Association.</div>

Longshore workers represented by ILWU Local 13 are refusing to stagger their meal breaks at the ports of Los Angeles and Long Beach, resulting in periods when no work is being done on the docks, says the Pacific Maritime Association.

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<div>“Significant delays” have hit some marine terminals at the ports of Los Angeles and Long Beach since the middle of last week, the Pacific Maritime Association (PMA) said Monday, in the latest job action by dockworkers linked to ongoing West Coast contract negotiations. PMA, which represents terminal employers in the talks that have dragged on for more than 10 months, said longshore workers represented by Local 13 of the International Longshore and Warehouse Union (ILWU) have since last Wednesday refused to stagger their meal breaks as required, resulting in periods when no work is being done on the docks. “As...

“Significant delays” have hit some marine terminals at the ports of Los Angeles and Long Beach since the middle of last week, the Pacific Maritime Association (PMA) said Monday, in the latest job action by dockworkers linked to ongoing West Coast contract negotiations. PMA, which represents terminal employers in the talks that have dragged on for more than 10 months, said longshore workers represented by Local 13 of the International Longshore and Warehouse Union (ILWU) have since last Wednesday refused to stagger their meal breaks as required, resulting in periods when no work is being done on the docks. “As a result, longshore workers at the Ports of LA and Long Beach are not working the terminals between 12 pm-1 pm and 10 pm-11 pm, creating significant delays,” PMA said in a statement. “Because the contract is not in place, there is no option for PMA to arbitrate the matter and require the union to man the terminals continuously without interruption.” PMA provided media with photographs showing trucks backed up Friday at the Fenix Marine Terminal at the Port of Los Angeles and the ITS Terminal in Long Beach, long queues it said was the result of the job action. Longshore workers normally take staggered lunch breaks when the coastwide contract is in effect so as not to disrupt cargo handling. Typically, half of the longshore workers take their break from 11 am to noon and the other half from noon to 1 pm so terminal gates remain open for eight consecutive hours. Two sources close to the contract negotiations told the Journal of Commerce the job action was directed by Local 13 in Southern California over an intra-union matter involving a manning change. Although the change involves only terminals in Los Angeles and Long Beach, it must be included in the coastwide contract for it to take effect. Neither the PMA nor the ILWU commented specifically on the manning issue. But the fact the PMA statement specifically noted that ILWU Local 13 had stopped complying with the staggered lunch break requirement is telling because it suggests the disruptions in Southern California are not being directed by ILWU’s international leadership. In a statement Monday, ILWU International President Willie Adams said longshore workers in Los Angeles and Long Beach are working every day according to terms agreed upon with the PMA. “Terminal operators, however, open and close their gates at will,” Adams said. Meanwhile, the West Coast’s share of imports from Asia continues to erode as shippers divert discretionary cargo to the East and Gulf coasts in a bid to avoid the exact type of disruption taking place in LA-LB. Fresh data from PIERS, a sister product of the Journal of Commerce within S&P Global, shows that the share of Asian imports landing on the West Coast in February slipped to 53.2 percent, down from 54.5 percent in January and 60.4 percent last May when ILWU-PMA contract talks began. Contract talks at 10 months and counting PMA and ILWU began negotiations last May, and while some matters such as health benefits have been resolved, there has been no agreement to date on core issues such as automation, wages, and pension benefits. Sources close to the negotiations say they see no indication that progress is being made, despite a joint ILWU-PMA release issued in late February that the two sides expected a contract resolution “soon.” Beginning last fall, dockworkers in Oakland and the Northwest Seaport Alliance of Seattle and Tacoma have taken similar job actions on a sporadic basis , sources at the port and terminal level have told the Journal of Commerce. However, the PMA had never issued a statement on port-specific job actions until now. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com and follow him on Twitter: @billmongelluzzo .

North American ports

Marine terminals

Container Shipping News

Longshore labor

ILWU job action causing terminal gate delays in Los Angeles-Long Beach: PMA

<div class="phx-topic abstract-wrapper">Khor Fakkan and Fujairah in the UAE and Sohar in Oman had kept carriers restricted to imports since the war began due to severe yard space and cargo evacuation constraints. </div>

Khor Fakkan and Fujairah in the UAE and Sohar in Oman had kept carriers restricted to imports since the war began due to severe yard space and cargo evacuation constraints.

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<div class="phx-topic">Terminals at alternative ports of call in the Persian Gulf have reopened gates to outbound freight flows, albeit slowly, market sources say. The ports — Khor Fakkan and Fujairah in the United Arab Emirates (UAE) and Sohar in Oman — had kept container carriers restricted to import discharges since the Middle East war began due to severe yard space and cargo evacuation constraints. The ports have been the supply chain lifeline for Middle East-bound shipments since the Middle East war erupted Feb. 28. But contingency port operations effectively meant a “single leg” cargo opportunity for vessel operators as they were not allowed to pick up boxes on the backhaul in order to avoid longer berth stays. Multiple Dubai-based freight forwarder executives who spoke with the Journal of Commerce confirmed that a few mainliners, notably CMA CGM, and other major feeder operators, usually backed by non-vessel-operating common carriers (NVOs), are now moving Middle East-origin containers into India. “Although uneven and dependent on the space situation, export gate-ins have resumed,” said a source who didn’t want to be identified. CMA CGM has regular weekly sailings connecting three western Indian ports — Hazira, Mundra and Nhava Sheva — to Fujairah and Sohar under its “BIGEX” network. The French carrier is also understood to have evacuated most Middle East-bound containers rerouted to Nhava Sheva, including accumulated hazardous/dangerous cargo boxes <a href="https://www.joc.com/article/rerouted-middle-east-hazmat-containers-spark-safety-concerns-at-indian-ports-6208692">that had sparked safety concerns for the port authority</a>. Middle East ports traditionally play a major role for carriers in repositioning empty containers to demand locations, including India. With the renewed operational flexibility, CMA CGM has been able to relocate accumulated empties via Fujairah into Nhava Sheva to replenish its tightening inventory capacity in India. While the Middle East disruption strained carriers’ inventory cycles, weaker export demand from India prevented any sort of industrywide equipment imbalance issues, local sources said. <h3>CMA CGM, AD Ports ink logistics deal </h3>Meanwhile, CMA CGM has reached an agreement with AD Ports Group to work together on intermodal logistics solutions across the UAE to neighboring countries. The move comes as demand for multimodal/land bridge alternatives continues to grow in the region. “The collaboration will explore opportunities to strengthen cargo flows across the UAE and regional markets, including the northern Emirates, whilst extending trade corridor optionality through rail-linked inland connectivity to the borders of ... Oman and ... Saudi Arabia,” the partners said in a joint statement. Through its CMA Terminals subsidiary, the Marseille-based carrier already has a terminal joint venture with AD Ports at Khalifa Port in Abu Dhabi. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Terminals at alternative ports of call in the Persian Gulf have reopened gates to outbound freight flows, albeit slowly, market sources say. The ports — Khor Fakkan and Fujairah in the United Arab Emirates (UAE) and Sohar in Oman — had kept container carriers restricted to import discharges since the Middle East war began due to severe yard space and cargo evacuation constraints. The ports have been the supply chain lifeline for Middle East-bound shipments since the Middle East war erupted Feb. 28. But contingency port operations effectively meant a “single leg” cargo opportunity for vessel operators as they were not allowed to pick up boxes on the backhaul in order to avoid longer berth stays. Multiple Dubai-based freight forwarder executives who spoke with the Journal of Commerce confirmed that a few mainliners, notably CMA CGM, and other major feeder operators, usually backed by non-vessel-operating common carriers (NVOs), are now moving Middle East-origin containers into India. “Although uneven and dependent on the space situation, export gate-ins have resumed,” said a source who didn’t want to be identified. CMA CGM has regular weekly sailings connecting three western Indian ports — Hazira, Mundra and Nhava Sheva — to Fujairah and Sohar under its “BIGEX” network. The French carrier is also understood to have evacuated most Middle East-bound containers rerouted to Nhava Sheva, including accumulated hazardous/dangerous cargo boxes that had sparked safety concerns for the port authority . Middle East ports traditionally play a major role for carriers in repositioning empty containers to demand locations, including India. With the renewed operational flexibility, CMA CGM has been able to relocate accumulated empties via Fujairah into Nhava Sheva to replenish its tightening inventory capacity in India. While the Middle East disruption strained carriers’ inventory cycles, weaker export demand from India prevented any sort of industrywide equipment imbalance issues, local sources said. CMA CGM, AD Ports ink logistics deal Meanwhile, CMA CGM has reached an agreement with AD Ports Group to work together on intermodal logistics solutions across the UAE to neighboring countries. The move comes as demand for multimodal/land bridge alternatives continues to grow in the region. “The collaboration will explore opportunities to strengthen cargo flows across the UAE and regional markets, including the northern Emirates, whilst extending trade corridor optionality through rail-linked inland connectivity to the borders of ... Oman and ... Saudi Arabia,” the partners said in a joint statement. Through its CMA Terminals subsidiary, the Marseille-based carrier already has a terminal joint venture with AD Ports at Khalifa Port in Abu Dhabi. Contact Bency Mathew at bencyvmathew@gmail.com .

Port News

International ports

Maritime

Disrupted Middle East-India shipments restart as choked supply chains ease

<div class="phx-topic abstract-wrapper">One analyst says it is almost certain that rates in some parts of the country will climb because of the missing capacity next week, especially in warmer agriculture-dominant states now producing their first crop of the season.</div>

One analyst says it is almost certain that rates in some parts of the country will climb because of the missing capacity next week, especially in warmer agriculture-dominant states now producing their first crop of the season.

<div class="phx-topic">When hundreds of law enforcement officers from the US, Mexico and Canada hold the Commercial Vehicle Safety Alliance’s (CVSA’s) annual International Roadcheck May 12-14, trucking leaders say it is likely to further tighten trucking capacity and nudge freight rates even higher. “I think we are going to see a Roadcheck like we haven’t seen in many, many years,” said Dean Croke, principal analyst for DAT Freight and Analytics. “You’re going to see more drivers that just take the week off and a lot of capacity has already left the market.” Croke said DAT did a survey of 534 carriers a couple of weeks ago, with 18% of respondents indicating they would idle their rigs next week. “They [are] parking their trucks and are not driving,” he said. As drivers seek to avoid the scrutiny of Roadcheck inspections, it comes as the federal government has been <a href="https://www.joc.com/article/house-committee-advances-bill-targeting-non-domiciled-commercial-drivers-licenses-6188801">aggressively enforcing regulations concerning non-domiciled commercial driver’s licenses (CDLs)</a>. Transportation Secretary Sean Duffy said this week more than 28,000 truck drivers have been taken off US roads since June 2025 because of the Department of Transportation’s tougher enforcement of standards, including English language proficiency requirements. The CVSA official tasked with organizing and running Roadcheck said it is unfortunate that some drivers plan to park their trucks, even as rates are increasing and, for those drivers who will be on the road, there is money to be made. “Everybody knows they’re trying to avoid inspections,” CVSA’s roadside inspections specialist Jeremy Disbrow said. “The benefit they have is that they know this is coming. This gives them an opportunity to make sure their truck is in good working order. I hear from the industry all the time that they want inspections, voluntary inspections, to improve their safety, so I don’t see why this would be harmful to them.” CVSA said inspectors will “conduct high-volume, 37-step Level I inspections across North America, with a specific focus on electronic logging device (ELD) compliance and cargo securement.” “Drivers with critical violations will be placed out of service,” it said. <h3>Ag shipments boost rates in warm-weather states </h3>Croke said it is almost certain that rates in some parts of the country are going to climb because of the missing capacity during Roadcheck, especially in warmer agriculture-dominant states now producing their first crop of the season. “The bigger thing that’s going to happen this week or next week in particular is the impact on produce, particularly in the Southeast and Florida,” Croke said. “What you’re about to see in the Southeast are spot rates for refrigerated carriers that go through the roof.” The May 4 Market Insights report from FTR Transportation Intelligence and <a href="https://urldefense.com/v3/__http:/truckstop.com/__;!!DEyr4sPAfcQg!TOzvrYUpg7BvtqQHiQeR3G7R9phVZqhjofT6CToxKWRKprPm8yF-BnSUCm_ktEUV4jA7GiFwWng3c9Cu6OguzWS93Y_mMX8z$">Truckstop.com</a> showed broker-posted spot rates were at an all-time high for all equipment. The FTR dashboard showed inbound truckload reefer and flatbed rates in New England are the highest in the country at $3.67 per mile, with flatbed rates at $4.20. New York and Pennsylvania are slightly lower at $3.59 for truckload reefer, while flatbed rates are at $3.87. Reefer rates are $3.39 per mile in Florida, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Maryland, Washington, DC, and Delaware. Flatbed rates there are $3.55 a mile. One example of produce likely to be impacted by higher reefer shipping rates is Georgia’s popular Vidalia onions. The 2026 season is in full swing, and the latest US Department of Agriculture National Shipping report said because the 200 million pounds of the popular sweet onions are grown in only 20 Georgia counties, “Vidalia shipments will likely face competitive freight markets.” <h3>Surging diesel prices </h3>Meanwhile, even before Roadcheck, Florida law enforcement officials had been aggressively enforcing traffic and other laws as part of “Operation Highway Shield,” tightening capacity in that state. The effort ran from March 23 to March 26, with the Florida Department of Law Enforcement inspecting more than 3,300 commercial vehicles. Officials said 176 drivers were removed from service. Fifty-four were for language-related deficiencies, 35 now face criminal violations, and 42 were taken into custody for immigration-related issues. That comes as diesel prices have surged amid the war with Iran and closure of the Strait of Hormuz. AAA said the average diesel price in the US on May 5 was nearly $5.66 per gallon, up 20 cents in just a week and $2.13 higher since the beginning of military hostilities in late February. Croke said Roadcheck will mean a period of several weeks where freight haulers who stay on the road will likely face increased police activity, but with an opportunity to make substantially more money in a relatively short period of time. “You’ve got even fewer trucks for the demand, and that means rates go even higher,” he said. “I’ve said what we have is stabilizing demand meets constrained supply.” And he says the next month will be volatile. “Rates will spike and then come back down when carriers come back into the market,” Croke said. “There will be a period of 10 to 14 days after Roadcheck where the market will start to stabilize and come back to normal. [But] May is going to be a great month for a lot of carriers.” Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>. </div>

When hundreds of law enforcement officers from the US, Mexico and Canada hold the Commercial Vehicle Safety Alliance’s (CVSA’s) annual International Roadcheck May 12-14, trucking leaders say it is likely to further tighten trucking capacity and nudge freight rates even higher. “I think we are going to see a Roadcheck like we haven’t seen in many, many years,” said Dean Croke, principal analyst for DAT Freight and Analytics. “You’re going to see more drivers that just take the week off and a lot of capacity has already left the market.” Croke said DAT did a survey of 534 carriers a couple of weeks ago, with 18% of respondents indicating they would idle their rigs next week. “They [are] parking their trucks and are not driving,” he said. As drivers seek to avoid the scrutiny of Roadcheck inspections, it comes as the federal government has been aggressively enforcing regulations concerning non-domiciled commercial driver’s licenses (CDLs) . Transportation Secretary Sean Duffy said this week more than 28,000 truck drivers have been taken off US roads since June 2025 because of the Department of Transportation’s tougher enforcement of standards, including English language proficiency requirements. The CVSA official tasked with organizing and running Roadcheck said it is unfortunate that some drivers plan to park their trucks, even as rates are increasing and, for those drivers who will be on the road, there is money to be made. “Everybody knows they’re trying to avoid inspections,” CVSA’s roadside inspections specialist Jeremy Disbrow said. “The benefit they have is that they know this is coming. This gives them an opportunity to make sure their truck is in good working order. I hear from the industry all the time that they want inspections, voluntary inspections, to improve their safety, so I don’t see why this would be harmful to them.” CVSA said inspectors will “conduct high-volume, 37-step Level I inspections across North America, with a specific focus on electronic logging device (ELD) compliance and cargo securement.” “Drivers with critical violations will be placed out of service,” it said. Ag shipments boost rates in warm-weather states Croke said it is almost certain that rates in some parts of the country are going to climb because of the missing capacity during Roadcheck, especially in warmer agriculture-dominant states now producing their first crop of the season. “The bigger thing that’s going to happen this week or next week in particular is the impact on produce, particularly in the Southeast and Florida,” Croke said. “What you’re about to see in the Southeast are spot rates for refrigerated carriers that go through the roof.” The May 4 Market Insights report from FTR Transportation Intelligence and Truckstop.com showed broker-posted spot rates were at an all-time high for all equipment. The FTR dashboard showed inbound truckload reefer and flatbed rates in New England are the highest in the country at $3.67 per mile, with flatbed rates at $4.20. New York and Pennsylvania are slightly lower at $3.59 for truckload reefer, while flatbed rates are at $3.87. Reefer rates are $3.39 per mile in Florida, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Maryland, Washington, DC, and Delaware. Flatbed rates there are $3.55 a mile. One example of produce likely to be impacted by higher reefer shipping rates is Georgia’s popular Vidalia onions. The 2026 season is in full swing, and the latest US Department of Agriculture National Shipping report said because the 200 million pounds of the popular sweet onions are grown in only 20 Georgia counties, “Vidalia shipments will likely face competitive freight markets.” Surging diesel prices Meanwhile, even before Roadcheck, Florida law enforcement officials had been aggressively enforcing traffic and other laws as part of “Operation Highway Shield,” tightening capacity in that state. The effort ran from March 23 to March 26, with the Florida Department of Law Enforcement inspecting more than 3,300 commercial vehicles. Officials said 176 drivers were removed from service. Fifty-four were for language-related deficiencies, 35 now face criminal violations, and 42 were taken into custody for immigration-related issues. That comes as diesel prices have surged amid the war with Iran and closure of the Strait of Hormuz. AAA said the average diesel price in the US on May 5 was nearly $5.66 per gallon, up 20 cents in just a week and $2.13 higher since the beginning of military hostilities in late February. Croke said Roadcheck will mean a period of several weeks where freight haulers who stay on the road will likely face increased police activity, but with an opportunity to make substantially more money in a relatively short period of time. “You’ve got even fewer trucks for the demand, and that means rates go even higher,” he said. “I’ve said what we have is stabilizing demand meets constrained supply.” And he says the next month will be volatile. “Rates will spike and then come back down when carriers come back into the market,” Croke said. “There will be a period of 10 to 14 days after Roadcheck where the market will start to stabilize and come back to normal. [But] May is going to be a great month for a lot of carriers.” Contact Dan Ronan at contactdanronan@gmail.com .

Trucking News

Transport, Trade and Regulation News

Truckload

Surface

Annual ‘Roadcheck’ likely to tighten US trucking capacity, boost rates 

<div class="phx-topic abstract-wrapper">But CEO Vincent Clerc said while the carrier assesses the situation with the view of eventually restarting some services through the region, Maersk would be taking a cautious approach, with the safety of seafarers the “first priority.” </div>

But CEO Vincent Clerc said while the carrier assesses the situation with the view of eventually restarting some services through the region, Maersk would be taking a cautious approach, with the safety of seafarers the “first priority.”

<div class="phx-topic">An end to the war in the Middle East would raise the prospect that the other key shipping corridor in the region — the Red Sea/Suez Canal — could be a viable option once again for commercial shipping, Maersk’s CEO says. Red Sea transits were halted when the war broke out in late February, just as ocean carriers were launching a tentative return to the route that had mostly been off-limits since late 2023 when Houthi militants in Yemen began attacks on vessels as a show of solidarity for Hamas in its war with Israel. Those attacks ended late last year amid a fragile ceasefire, prompting carriers to resume Red Sea transits on a small scale. But the route became effectively off-limits again when the US and Israel launched attacks on Iran on Feb. 28. Tehran is reportedly considering the latest US peace plan, despite warships from both sides exchanging fire this week. Should the conflict end, there are hopes that Houthi militants — supported and supplied by Tehran — will allow safe passage for commercial shipping eager to return to the Red Sea/Suez Canal route. Maersk CEO Vincent Clerc said an end to the war would bring the Red Sea back into the frame for the Copenhagen-based carrier, and he pointed out that no attacks have been reported in the Red Sea so far this year. But Clerc, speaking to analysts during <a href="https://www.joc.com/article/maersk-passing-500-million-monthly-fuel-bill-to-customers-in-full-ceo-6216319">Maersk’s first-quarter earnings call</a> Thursday, said while the carrier assesses the situation between the US and Iran with the view of eventually restarting some services through the Red Sea, Maersk would be taking a cautious approach, with the safety of seafarers the “first priority.” He also said the safety threshold required by Maersk appeared to be higher than that being applied by other carriers. “There is no doubt that we have a bit of a different threshold than some of our competitors that are going through the Bab el-Mandeb [Strait] today,” Clerc said. The Maersk CEO was clearly referencing CMA CGM, which has sent several ships via the Red Sea this year and just last week safely sailed its 23,876-TEU CMA CGM Grand Palais through the Bab el-Mandab Strait and Suez Canal en route to Malta from Singapore. Clerc also noted that some carriers in the Strait of Hormuz were taking “different chances than we did and have had either people being detained or people getting injured.” That, again, appeared to refer to CMA CGM, which on Tuesday had a vessel hit by a projectile while sailing past the coast of Oman at night. CMA CGM said in a statement the attack on the CMA CGM San Antonio injured an undisclosed number of seafarers and damaged the vessel. “The injured crew members have been evacuated and are provided with the necessary medical care,” the carrier said. “CMA CGM is closely monitoring the situation and remains fully mobilized alongside the crew.” <h3>Limited naval escort capacity </h3>Any return to Red Sea voyages would have to be gradual, Clerc said, because there was limited naval capacity to escort vessels passing through the Houthi-controlled Bab el-Mandeb. “There’s only so many services that we could send through the Red Sea, and I would think that others will have the same issue,” Clerc said. “For it to be a full return, we would need to feel comfortable with the safety and security assessment that we could sail without any monitoring “I have no idea, given the volatility of the situation between the US and Iran, when that is going to be,” he added. “It could be very soon, or it could take a while.” Sailing via the Red Sea on Asia-Europe/Mediterranean and Asia-US East Coast trades is far shorter than voyages around southern Africa, and with bunker fuel prices significantly higher than before the Middle East war started, there are savings in time and costs to be had. The Red Sea route adds 31% to Asia-North Europe transit times and more than 60% to east Mediterranean destinations, some 10 to 14 days of additional sailing time that increases fuel consumption by as much as 40%, according to Sea-Intelligence Maritime Analysis. Bunker prices assessed May 7 in Singapore of $816 per metric ton, while almost 30% lower than the high reached in mid-March, were still 60% higher than the late February prices before the Middle East war began, according to Ship &amp; Bunker. “When you’re sailing from India to the Mediterranean, you’re going to burn a lot less fuel by going through the Red Sea than if you have to use the long route as we do today,” Clerc told analysts. A resumption of Red Sea transits would also release capacity into the market that Clerc said would allow carriers to slow ship speeds, mitigating the rate-destroying impact of additional tonnage while lowering fuel consumption in a high-priced bunker market. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

An end to the war in the Middle East would raise the prospect that the other key shipping corridor in the region — the Red Sea/Suez Canal — could be a viable option once again for commercial shipping, Maersk’s CEO says. Red Sea transits were halted when the war broke out in late February, just as ocean carriers were launching a tentative return to the route that had mostly been off-limits since late 2023 when Houthi militants in Yemen began attacks on vessels as a show of solidarity for Hamas in its war with Israel. Those attacks ended late last year amid a fragile ceasefire, prompting carriers to resume Red Sea transits on a small scale. But the route became effectively off-limits again when the US and Israel launched attacks on Iran on Feb. 28. Tehran is reportedly considering the latest US peace plan, despite warships from both sides exchanging fire this week. Should the conflict end, there are hopes that Houthi militants — supported and supplied by Tehran — will allow safe passage for commercial shipping eager to return to the Red Sea/Suez Canal route. Maersk CEO Vincent Clerc said an end to the war would bring the Red Sea back into the frame for the Copenhagen-based carrier, and he pointed out that no attacks have been reported in the Red Sea so far this year. But Clerc, speaking to analysts during Maersk’s first-quarter earnings call Thursday, said while the carrier assesses the situation between the US and Iran with the view of eventually restarting some services through the Red Sea, Maersk would be taking a cautious approach, with the safety of seafarers the “first priority.” He also said the safety threshold required by Maersk appeared to be higher than that being applied by other carriers. “There is no doubt that we have a bit of a different threshold than some of our competitors that are going through the Bab el-Mandeb [Strait] today,” Clerc said. The Maersk CEO was clearly referencing CMA CGM, which has sent several ships via the Red Sea this year and just last week safely sailed its 23,876-TEU CMA CGM Grand Palais through the Bab el-Mandab Strait and Suez Canal en route to Malta from Singapore. Clerc also noted that some carriers in the Strait of Hormuz were taking “different chances than we did and have had either people being detained or people getting injured.” That, again, appeared to refer to CMA CGM, which on Tuesday had a vessel hit by a projectile while sailing past the coast of Oman at night. CMA CGM said in a statement the attack on the CMA CGM San Antonio injured an undisclosed number of seafarers and damaged the vessel. “The injured crew members have been evacuated and are provided with the necessary medical care,” the carrier said. “CMA CGM is closely monitoring the situation and remains fully mobilized alongside the crew.” Limited naval escort capacity Any return to Red Sea voyages would have to be gradual, Clerc said, because there was limited naval capacity to escort vessels passing through the Houthi-controlled Bab el-Mandeb. “There’s only so many services that we could send through the Red Sea, and I would think that others will have the same issue,” Clerc said. “For it to be a full return, we would need to feel comfortable with the safety and security assessment that we could sail without any monitoring “I have no idea, given the volatility of the situation between the US and Iran, when that is going to be,” he added. “It could be very soon, or it could take a while.” Sailing via the Red Sea on Asia-Europe/Mediterranean and Asia-US East Coast trades is far shorter than voyages around southern Africa, and with bunker fuel prices significantly higher than before the Middle East war started, there are savings in time and costs to be had. The Red Sea route adds 31% to Asia-North Europe transit times and more than 60% to east Mediterranean destinations, some 10 to 14 days of additional sailing time that increases fuel consumption by as much as 40%, according to Sea-Intelligence Maritime Analysis. Bunker prices assessed May 7 in Singapore of $816 per metric ton, while almost 30% lower than the high reached in mid-March, were still 60% higher than the late February prices before the Middle East war began, according to Ship & Bunker. “When you’re sailing from India to the Mediterranean, you’re going to burn a lot less fuel by going through the Red Sea than if you have to use the long route as we do today,” Clerc told analysts. A resumption of Red Sea transits would also release capacity into the market that Clerc said would allow carriers to slow ship speeds, mitigating the rate-destroying impact of additional tonnage while lowering fuel consumption in a high-priced bunker market. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Asia-Europe

Maersk mulls potential Red Sea return as hopes rise over US-Iran deal

<div class="phx-topic abstract-wrapper">The carrier’s purchase of FirstFleet raised its truck count substantially, but overall capacity still contracted in the first quarter, according to the Journal of Commerce’s index.</div>

The carrier’s purchase of FirstFleet raised its truck count substantially, but overall capacity still contracted in the first quarter, according to the Journal of Commerce’s index.

<div class="phx-topic">An acquisition that inflated one large carrier’s truck count by 28% pushed the first-quarter Journal of Commerce Truckload Capacity Index (TCI) up 6.3 percentage points to 79.8%. However, eliminating the gain from that merger, the index would have declined. That indicates capacity at large truckload carriers is still tightening after the TCI fell 20.8 percentage points over three and a half years, starting in the 2022 second quarter. Shippers are likely to feel the impact from that tightening in upcoming bids. “We expect pricing gains to continue with more meaningful improvement in the third and fourth quarters,” Werner Enterprises CEO Derek Leathers said during an April 28 earnings call. Werner hiked contract rates by mid-single-digit percentages in the first quarter. Werner acquired FirstFleet, a dedicated carrier with about 2,400 trucks, in December. Excluding Werner, the TCI, a measure of actual trucks available at a group of large publicly-owned carriers, would have dropped to 70.9% in the first quarter. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="37b149d1-14d5-4221-933a-12c01811c4a6"></dynamic-object></div>“Demand has not moved a lot,” Adam Miller, CEO of Knight-Swift Transportation Holdings, told the Journal of Commerce. “It’s still muted, but [tender] rejections are way up, and spot rates are way up ... That’s supply driven.” “I think everything right now is being supply-induced on the capacity side,” Frank Lonegro, CEO of truckload carrier Landstar System, told analysts during an April 28 earnings call. “If we see an incremental uptick in demand, you’re going to see it on the volume side.” <h3>Shift toward dedicated trucking </h3>Werner’s $245 million acquisition of FirstFleet came just as declining truckload capacity began pushing up spot market rates in late 2025. The Journal of Commerce average shipper-paid spot rate jumped from $2.27 per mile in November to $2.46 per mile in December. The all-inclusive average rate, which represents rates charged by third-party freight brokers to shippers, including fuel surcharges, had reached $2.87 per mile by May. That’s a 34% year-over-year increase from an average rate of $2.14 per mile in April 2025. FirstFleet “created a significant amount [of] more density across certain geographies in our network,” that created “a multiplier effect” on Werner’s dedicated business, Leathers said on his company’s earnings call. At the same time, Werner has been restructuring its traditional one-way truckload business, changing its freight mix and shrinking its one-way truck fleet by 11% year over year. In the first quarter, revenue per one-way truck rose 9.6%, Werner said. Werner exemplifies a shift by large carriers <a href="https://www.joc.com/article/large-us-truckload-carriers-shifting-assets-to-expand-dedicated-services-5935831">toward dedicated trucking</a>, with its higher profit margin, and away from more volatile one-way truckload service. As that shift continues, shippers will rely increasingly on midsize and smaller carriers to move one-way shipments. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

An acquisition that inflated one large carrier’s truck count by 28% pushed the first-quarter Journal of Commerce Truckload Capacity Index (TCI) up 6.3 percentage points to 79.8%. However, eliminating the gain from that merger, the index would have declined. That indicates capacity at large truckload carriers is still tightening after the TCI fell 20.8 percentage points over three and a half years, starting in the 2022 second quarter. Shippers are likely to feel the impact from that tightening in upcoming bids. “We expect pricing gains to continue with more meaningful improvement in the third and fourth quarters,” Werner Enterprises CEO Derek Leathers said during an April 28 earnings call. Werner hiked contract rates by mid-single-digit percentages in the first quarter. Werner acquired FirstFleet, a dedicated carrier with about 2,400 trucks, in December. Excluding Werner, the TCI, a measure of actual trucks available at a group of large publicly-owned carriers, would have dropped to 70.9% in the first quarter. “Demand has not moved a lot,” Adam Miller, CEO of Knight-Swift Transportation Holdings, told the Journal of Commerce. “It’s still muted, but [tender] rejections are way up, and spot rates are way up ... That’s supply driven.” “I think everything right now is being supply-induced on the capacity side,” Frank Lonegro, CEO of truckload carrier Landstar System, told analysts during an April 28 earnings call. “If we see an incremental uptick in demand, you’re going to see it on the volume side.” Shift toward dedicated trucking Werner’s $245 million acquisition of FirstFleet came just as declining truckload capacity began pushing up spot market rates in late 2025. The Journal of Commerce average shipper-paid spot rate jumped from $2.27 per mile in November to $2.46 per mile in December. The all-inclusive average rate, which represents rates charged by third-party freight brokers to shippers, including fuel surcharges, had reached $2.87 per mile by May. That’s a 34% year-over-year increase from an average rate of $2.14 per mile in April 2025. FirstFleet “created a significant amount [of] more density across certain geographies in our network,” that created “a multiplier effect” on Werner’s dedicated business, Leathers said on his company’s earnings call. At the same time, Werner has been restructuring its traditional one-way truckload business, changing its freight mix and shrinking its one-way truck fleet by 11% year over year. In the first quarter, revenue per one-way truck rose 9.6%, Werner said. Werner exemplifies a shift by large carriers toward dedicated trucking , with its higher profit margin, and away from more volatile one-way truckload service. As that shift continues, shippers will rely increasingly on midsize and smaller carriers to move one-way shipments. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Truck brokers

Werner acquisition boosts Truckload Capacity Index despite low demand

<div class="phx-topic abstract-wrapper">The software vendor said shippers can move away from having intermediaries manage bookings by automating the process and tying it to performance data that FourKites holds. </div>

The software vendor said shippers can move away from having intermediaries manage bookings by automating the process and tying it to performance data that FourKites holds.

<div class="phx-topic">Software vendor FourKites has launched a tool aimed at helping shippers wean themselves off a historical reliance on third-party logistics providers to execute ocean freight bookings with container lines. The new tool, called Booking Connect for Ocean, automates the booking request, confirmation and shipment creation processes associated with international container moves. “The traditional ocean booking process, even for the largest and most sophisticated shippers, is highly fragmented,” Priya Rajagopalan, president of product, technology and operations at FourKites, told the Journal of Commerce. “Carrier-forwarder coordination loops run through email and phone over different continents. It’s hard to look at and say where there are opportunities for improvement. Structurally, this feel like it’s a valuable process to solve.” Rajagopalan said the new tool, unveiled this week, allows shippers to base booking decisions on ocean carrier performance, reliability and transshipment data that FourKites has accumulated for more than a decade as a transportation visibility provider. The company in early 2025 shifted its product focus to agentic solutions that comprise what it calls an artificial intelligence (AI)-led control tower solution. “This is not intended to be a better [user interface] for rate shopping,” Rajagopalan said. “It’s trying to deliver an outcome. So it’s not just recommendations, but you can enforce your routing guide on the fly using natural language.” <h3>‘Rational step forward’ </h3>The tool allows a shipper to prompt the booking process through a digital agent, including specifying rules or thresholds, such as limiting the number of containers on a specific sailing, or divvying up volume to different carriers based on a shipper’s allocation strategy. Booking Connect provides shippers with recommendations along four dimensions: cost, transit time, an optimized tradeoff between cost and transit time, and historical performance factors such as port congestion or schedule reliability. “The shipper can choose which one is most important to them,” Rajagopalan said. She described the development of the booking tool as a “rational step forward” in FourKites’ product development because confirmed ocean bookings need to be based on data that is currently scattered across systems or held predominantly by logistics intermediaries. It can also be more automated than it has historically been, she said. “Rejected bookings surface alternatives immediately and can re-book within pre-configured rules,” FourKites said in a statement about the product launch. “Tracking begins automatically upon confirmation, with milestone visibility from port of loading through final delivery.” While the tool is ideally used by a shipper, Rajagopalan said shippers who still prefer to outsource booking management to their forwarders could enable the use of Booking Connect. FourKites has some 3PL customers among its largely shipper-focused client base. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Software vendor FourKites has launched a tool aimed at helping shippers wean themselves off a historical reliance on third-party logistics providers to execute ocean freight bookings with container lines. The new tool, called Booking Connect for Ocean, automates the booking request, confirmation and shipment creation processes associated with international container moves. “The traditional ocean booking process, even for the largest and most sophisticated shippers, is highly fragmented,” Priya Rajagopalan, president of product, technology and operations at FourKites, told the Journal of Commerce. “Carrier-forwarder coordination loops run through email and phone over different continents. It’s hard to look at and say where there are opportunities for improvement. Structurally, this feel like it’s a valuable process to solve.” Rajagopalan said the new tool, unveiled this week, allows shippers to base booking decisions on ocean carrier performance, reliability and transshipment data that FourKites has accumulated for more than a decade as a transportation visibility provider. The company in early 2025 shifted its product focus to agentic solutions that comprise what it calls an artificial intelligence (AI)-led control tower solution. “This is not intended to be a better [user interface] for rate shopping,” Rajagopalan said. “It’s trying to deliver an outcome. So it’s not just recommendations, but you can enforce your routing guide on the fly using natural language.” ‘Rational step forward’ The tool allows a shipper to prompt the booking process through a digital agent, including specifying rules or thresholds, such as limiting the number of containers on a specific sailing, or divvying up volume to different carriers based on a shipper’s allocation strategy. Booking Connect provides shippers with recommendations along four dimensions: cost, transit time, an optimized tradeoff between cost and transit time, and historical performance factors such as port congestion or schedule reliability. “The shipper can choose which one is most important to them,” Rajagopalan said. She described the development of the booking tool as a “rational step forward” in FourKites’ product development because confirmed ocean bookings need to be based on data that is currently scattered across systems or held predominantly by logistics intermediaries. It can also be more automated than it has historically been, she said. “Rejected bookings surface alternatives immediately and can re-book within pre-configured rules,” FourKites said in a statement about the product launch. “Tracking begins automatically upon confirmation, with milestone visibility from port of loading through final delivery.” While the tool is ideally used by a shipper, Rajagopalan said shippers who still prefer to outsource booking management to their forwarders could enable the use of Booking Connect. FourKites has some 3PL customers among its largely shipper-focused client base. Contact Eric Johnson at eric.johnson@spglobal.com .

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FourKites takes aim at automating ocean bookings for shippers

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