<div class="phx-topic abstract-wrapper">Volcker Urges Japan To Stimulate EconomyOSAKA, Japan - Former Federal Reserve Board Chairman</div>

Volcker Urges Japan To Stimulate EconomyOSAKA, Japan - Former Federal Reserve Board Chairman

<div>Volcker Urges JapanTo Stimulate EconomyOSAKA, Japan - Former Federal Reserve Board Chairman Paul Volcker Thursday urged Japan to boost demand for U.S. imports by further stimulating its economy.He said U.S. success in reducing its budget deficit would depend partly on Japan and West Germany achieving higher economic growth rates.Mr. Volcker made his comments during a lecture to businessmen and reporters at an Osaka hotel.He said West Germany's growth-stimulating policies were insufficient, and that its forecast economic growth rate of 1.5 percent was too low and may undermine the growth of the European economy as a whole.Japan Sets '88 TargetOf 3.8...

Volcker Urges Japan To Stimulate EconomyOSAKA, Japan - Former Federal Reserve Board Chairman Paul Volcker Thursday urged Japan to boost demand for U.S. imports by further stimulating its economy. He said U.S. success in reducing its budget deficit would depend partly on Japan and West Germany achieving higher economic growth rates. Mr. Volcker made his comments during a lecture to businessmen and reporters at an Osaka hotel. He said West Germany's growth-stimulating policies were insufficient, and that its forecast economic growth rate of 1.5 percent was too low and may undermine the growth of the European economy as a whole. Japan Sets '88 Target Of 3.8 percent GNP Growth TOKYO - The Japanese government Thursday set a target of 3.8 percent growth in the nation's gross national product in real terms in fiscal 1988, the economic planning agency said. An EPA official said the target envisions an expansion in sales at home. The rise of the Japanese yen against the U.S. dollar has made Japanese products more expensive abroad, slowing exports, which long have been a major factor in this country's economic growth. Brazil Gives US Firm Contract for Generators HOUSTON - Stewart & Stevenson Services Inc. announced receipt of a contract from Brazil exceeding $50 million for six gas turbine powered generators. The generators, including spare parts and related tooling, are being sold to Companhia Hidro Electricia do Sao Francisco and will be used for rural electrification in Northeastern Brazil. Delivery and full sales recognition of the equipment is scheduled to occur during the fourth quarter of 1987. Spare parts will be shipped in early 1988.

Transport, Trade and Regulation News

INTERNATIONAL BRIEFS

<div class="phx-topic abstract-wrapper">Ship operators say a return to the Red Sea hinges on broad shipper acceptance across multi-shipper voyages, according to a survey conducted by One World Shipbrokers. </div>

Ship operators say a return to the Red Sea hinges on broad shipper acceptance across multi-shipper voyages, according to a survey conducted by One World Shipbrokers.

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<div class="phx-topic">Multipurpose vessel (MPV) operators remain deeply opposed to a return to Red Sea transits despite moves by container lines to resume trade corridors through the Suez Canal. Gemini Cooperation partners Maersk and Hapag-Lloyd <a href="https://www.joc.com/article/maersk-hapag-lloyd-confirm-theyll-route-gemini-service-through-suez-6163432">announced Feb. 3</a> that vessels in their ME11/IMX service will be routed through the Suez Canal in mid-February, marking the first time in more than two years that a Gemini service has transited the Red Sea. However, in the Jan. 28 One World Shipbrokers’ Market Sentiment Index (MSI), Justin Archard, founder and senior shipbroker at the company, surveyed 26 MPV operators and asked them to rate from 1 to 10 how willing they are to transit the Red Sea and/or Suez Canal based on current conditions. A score of 1 indicated “no way” and 10 equaled “no problem.” Half of the respondents gave a score of 1, while only three scored higher than 5 and no carrier replied with a 10. The mean response was 2.8. The carriers that showed more of a tendency to consider Suez transits were semi-liner MPV operators which typically operate higher deadweight tonnage. Suez Canal transits generally trended upwards in 2025, but still remain 50% lower than they were in late 2023, Archard said. A contributor to the MSI survey said that a return to Suez transits hinges on securing broad shipper acceptance across multi-shipper voyages, yet getting everyone aligned is proving to be “a challenge.” <h3>Stable market conditions prevail </h3>The 20th edition of the MSI for the MPV and breakbulk industry showed a third successive — albeit modest — rise to a level of 53.4, from 53.3. The MSI averages responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism. This tallied with the Feb. 6 Toepfer Multipurpose Index (TMI) assessment of $12,701 per day for February, up from $12,648 per day in January. Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500-deadweight ton “F-Type” vessels with safe working loads (SWL) of 240-360 mt, as reported to Toepfer by owners and operators. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b18155ea-a9ea-4cd7-a428-29704663b957"></dynamic-object></div>“The sideways movement in MPV charter rates continues despite the approach of the Chinese New Year celebrations, which generally cause import and export activities in Chinese ports to cease for about a week,” said Toepfer Transport. “The TMI rate is rising slightly, and the majority of carriers are expressing positive sentiment.” Archard said the MPV sector entered 2026 in “a balanced and resilient position,” maintaining a positive outlook for the year. “Forecasts made 12 months ago for improving market conditions have proven demonstrably correct, even inside the maelstrom of uncertainty,” he said. The outlook for the next MSI, due for publication at the end of April, points to a further modest increase, although a contributor to the MSI warned that the longer-term outlook is still driven by uncertainty. “Several elections in the Americas this year, coupled with a slow political move to the right, bodes well for mining and oil and gas, but less well for renewables in the Americas,” the respondent said. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Multipurpose vessel (MPV) operators remain deeply opposed to a return to Red Sea transits despite moves by container lines to resume trade corridors through the Suez Canal. Gemini Cooperation partners Maersk and Hapag-Lloyd announced Feb. 3 that vessels in their ME11/IMX service will be routed through the Suez Canal in mid-February, marking the first time in more than two years that a Gemini service has transited the Red Sea. However, in the Jan. 28 One World Shipbrokers’ Market Sentiment Index (MSI), Justin Archard, founder and senior shipbroker at the company, surveyed 26 MPV operators and asked them to rate from 1 to 10 how willing they are to transit the Red Sea and/or Suez Canal based on current conditions. A score of 1 indicated “no way” and 10 equaled “no problem.” Half of the respondents gave a score of 1, while only three scored higher than 5 and no carrier replied with a 10. The mean response was 2.8. The carriers that showed more of a tendency to consider Suez transits were semi-liner MPV operators which typically operate higher deadweight tonnage. Suez Canal transits generally trended upwards in 2025, but still remain 50% lower than they were in late 2023, Archard said. A contributor to the MSI survey said that a return to Suez transits hinges on securing broad shipper acceptance across multi-shipper voyages, yet getting everyone aligned is proving to be “a challenge.” Stable market conditions prevail The 20th edition of the MSI for the MPV and breakbulk industry showed a third successive — albeit modest — rise to a level of 53.4, from 53.3. The MSI averages responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism. This tallied with the Feb. 6 Toepfer Multipurpose Index (TMI) assessment of $12,701 per day for February, up from $12,648 per day in January. Toepfer’s TMI is based on expected average rates for six- to 12-month time charters for 12,500-deadweight ton “F-Type” vessels with safe working loads (SWL) of 240-360 mt, as reported to Toepfer by owners and operators. “The sideways movement in MPV charter rates continues despite the approach of the Chinese New Year celebrations, which generally cause import and export activities in Chinese ports to cease for about a week,” said Toepfer Transport. “The TMI rate is rising slightly, and the majority of carriers are expressing positive sentiment.” Archard said the MPV sector entered 2026 in “a balanced and resilient position,” maintaining a positive outlook for the year. “Forecasts made 12 months ago for improving market conditions have proven demonstrably correct, even inside the maelstrom of uncertainty,” he said. The outlook for the next MSI, due for publication at the end of April, points to a further modest increase, although a contributor to the MSI warned that the longer-term outlook is still driven by uncertainty. “Several elections in the Americas this year, coupled with a slow political move to the right, bodes well for mining and oil and gas, but less well for renewables in the Americas,” the respondent said. Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk carriers

Breakbulk News

Maritime

MPV carriers emphatic on no resumption of Suez transits under current conditions

<div class="phx-topic abstract-wrapper">The new vessels are shorter and narrower than most 400-meter megaships that are mostly confined to the Asia-Europe trade, giving the carrier more deployment options across its global network. </div>

The new vessels are shorter and narrower than most 400-meter megaships that are mostly confined to the Asia-Europe trade, giving the carrier more deployment options across its global network.

<div class="phx-topic">Maersk has opted for greater flexibility around vessel deployment in a new order for eight 18,600-TEU dual-fuel ships that are part of its ongoing fleet renewal program, the carrier announced Monday. The new vessels — to be delivered in 2029 and 2030 — are shorter and narrower than most 400-meter megaships that are mostly confined to the Asia-Europe trade, giving Maersk more deployment options across its global network. “Deployment flexibility has been a key factor in our decision-making,” Anda Cristescu, head of chartering and newbuilding at Maersk, said in a statement. “Although these vessels are large, they offer greater flexibility than the largest ships currently being built in our industry. This provides us with multiple deployment options across both our current and future network.” The eight vessel-order was signed with China’s New Times Shipbuilding Co. The ships will be equipped with dual-fuel engines able to operate on conventional bunker fuel or liquified natural gas (LNG). Financial terms of the order were not disclosed. Maersk now has 33 ships on order, four of which are scheduled to be delivered this year. Following 4.3% growth in its fleet in 2025, Maersk’s total in-service capacity reached 4.6 million TEUs. The increase in capacity was attributed to an early 2025 injection to support strong demand when the Gemini Cooperation with Hapag-Lloyd was launched a year ago, with utilization of 94% in the third quarter continuing through the fourth quarter. “We seek to protect the high asset turns we have achieved with Gemini, which will allow us to carry more containers with our existing fleet so we can grow with minimal fleet expansion,” Maersk CEO Vincent Clerc said during an earnings call with analysts last week. Maersk’s volume in 2025 increased 4.9% to just shy of 13 million FEUs. <h3>Fast-expanding global order book </h3>The global container shipping order book is sitting around 10.7 million TEUs, or 32% of the current in-service fleet, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Just over 1 million TEUs of capacity via ships above 10,000 TEUs is scheduled to be delivered this year. But 2.3 million TEUs is due for delivery in 2027, with 3.4 million TEUs due to come online in 2028, equal to all the tonnage received in 2022 and 2023. While new ships steadily sail into service, the number of cellular container vessels scrapped in 2025 was the lowest in 20 years, according to Alphaliner, with only 12 ships recycled with a total capacity of just 8,172 TEUs.Maersk believes its capacity is at an optimal level to serve both its standalone services and Gemini’s needs, but the carrier’s CFO Patrick Jany remains <a href="https://www.joc.com/article/gemini-benefits-face-looming-challenge-from-oversupplied-market-maersk-ceo-6164887">concerned over the excess tonnage in container shipping</a> and believes scrapping levels simply must increase. “We have all the tools across the industry to get this back in whack,” Jany said on last week’s earnings call, noting that for the past six years carriers have been in an abnormal supply-and-demand cycle. “The question is how long for the industry to get back to what was normal,” he added. “If it takes long for the discipline to come, then you will see rates at a difficult level for a while. If there is good discipline and people do what needs to be done, then this could resorb itself quite fast.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Maersk has opted for greater flexibility around vessel deployment in a new order for eight 18,600-TEU dual-fuel ships that are part of its ongoing fleet renewal program, the carrier announced Monday. The new vessels — to be delivered in 2029 and 2030 — are shorter and narrower than most 400-meter megaships that are mostly confined to the Asia-Europe trade, giving Maersk more deployment options across its global network. “Deployment flexibility has been a key factor in our decision-making,” Anda Cristescu, head of chartering and newbuilding at Maersk, said in a statement. “Although these vessels are large, they offer greater flexibility than the largest ships currently being built in our industry. This provides us with multiple deployment options across both our current and future network.” The eight vessel-order was signed with China’s New Times Shipbuilding Co. The ships will be equipped with dual-fuel engines able to operate on conventional bunker fuel or liquified natural gas (LNG). Financial terms of the order were not disclosed. Maersk now has 33 ships on order, four of which are scheduled to be delivered this year. Following 4.3% growth in its fleet in 2025, Maersk’s total in-service capacity reached 4.6 million TEUs. The increase in capacity was attributed to an early 2025 injection to support strong demand when the Gemini Cooperation with Hapag-Lloyd was launched a year ago, with utilization of 94% in the third quarter continuing through the fourth quarter. “We seek to protect the high asset turns we have achieved with Gemini, which will allow us to carry more containers with our existing fleet so we can grow with minimal fleet expansion,” Maersk CEO Vincent Clerc said during an earnings call with analysts last week. Maersk’s volume in 2025 increased 4.9% to just shy of 13 million FEUs. Fast-expanding global order book The global container shipping order book is sitting around 10.7 million TEUs, or 32% of the current in-service fleet, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. Just over 1 million TEUs of capacity via ships above 10,000 TEUs is scheduled to be delivered this year. But 2.3 million TEUs is due for delivery in 2027, with 3.4 million TEUs due to come online in 2028, equal to all the tonnage received in 2022 and 2023. While new ships steadily sail into service, the number of cellular container vessels scrapped in 2025 was the lowest in 20 years, according to Alphaliner, with only 12 ships recycled with a total capacity of just 8,172 TEUs. Maersk believes its capacity is at an optimal level to serve both its standalone services and Gemini’s needs, but the carrier’s CFO Patrick Jany remains concerned over the excess tonnage in container shipping and believes scrapping levels simply must increase. “We have all the tools across the industry to get this back in whack,” Jany said on last week’s earnings call, noting that for the past six years carriers have been in an abnormal supply-and-demand cycle. “The question is how long for the industry to get back to what was normal,” he added. “If it takes long for the discipline to come, then you will see rates at a difficult level for a while. If there is good discipline and people do what needs to be done, then this could resorb itself quite fast.” Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Asia-Europe

Container Shipping News

Maersk widens deployment options with order for ‘flexible’ new ships

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

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

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

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

Marine terminals

Longshore labor

North American ports

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

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

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

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

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

Rail News

North-American rail

Surface

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

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

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

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

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

Port News

International ports

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

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