<div class="phx-topic abstract-wrapper">WHEN SOMEBODY OWES YOU $100, it's their worry, the saying goes. But when they owe you $1 million, it</div>

WHEN SOMEBODY OWES YOU $100, it's their worry, the saying goes. But when they owe you $1 million, it

<div>WHEN SOMEBODY OWES YOU $100, it's their worry, the saying goes. But when they owe you $1 million, it's yours. For that reason, when the stock market falls 500 points in one day and almost fails to open the next, we all need to worry. Even people who feel removed from the fast and loose world of arbitrageurs and program traders are inextricably tied to Wall Street. A dysfunctional market can quickly become a dysfunctional economy.On Oct. 20, the day after the big crash, the market became dysfunctional. There wasn't enough cash on hand for the floor specialists, those people...

WHEN SOMEBODY OWES YOU $100, it's their worry, the saying goes. But when they owe you $1 million, it's yours. For that reason, when the stock market falls 500 points in one day and almost fails to open the next, we all need to worry. Even people who feel removed from the fast and loose world of arbitrageurs and program traders are inextricably tied to Wall Street. A dysfunctional market can quickly become a dysfunctional economy. On Oct. 20, the day after the big crash, the market became dysfunctional. There wasn't enough cash on hand for the floor specialists, those people responsible for smooth trading, to buy all the stocks that were being sold. In cases where trades were completed, prices were plummeting. In many other cases, it was impossible to complete the trades at all. The market threatened total collapse. The big securities brokers would have collapsed along with it, as their lines of credit were being frozen by nervous banks.Comprehending the risks, Federal Reserve Board Chairman Alan Greenspan and New York Fed President Gerald Corrigan quickly informed the country the Fed would supply as much cash as needed. They flooded the banks with money, buying up government securities and lending through the Fed's discount window. At the same time, they leaned on the banks to keep their credit lines open for brokerage houses and market makers. It was the right action at the right time, and ought to be applauded. But applauding the Fed's role as a lender of last resort is one thing. Institutionalizing it is altogether another. In the wake of the market's problems, Securities and Exchange Commission Chairman David Ruder has advocated an automatic system for providing emergency cash to the securities markets, just as the Fed did on Oct. 20. He suggests some sort of special reserve fund, though he has been closed-lipped about where the money would come from. Yes, the government could tax the brokerage houses themselves, but the same end could be achieved simply by requiring them to maintain higher levels of capital. Yes, the Fed could use its resources as an ever-ready emergency fund, though the idea of the SEC telling the Fed what to do is almost as amusing as it is inappropriate. But neither idea represents a desirable change. The right emergency mechanism is the one we have in place already. The events of Oct. 19 and Oct. 20 were extraordinary, unprecedented in market history. And they were handled appropriately by extraordinary measures. Being a lender of last resort is a tricky business. If there is such a lender, and if people believe it will intervene as promised in order to protect their money, the incentive to act prudently disappears. For evidence, just look to the thrift industry, whose customers paid no heed to the soundness of the institutions in which they deposited their money because they knew that the Federal Savings and Loan Insurance Corp. would make good any losses. Putting a broad safety net beneath the entire stock market sends the wrong message to investors: Speculate all you want, and the government will bail you out. Investors earn a return for exposing themselves to risk. A system such as Mr. Ruder envisions could make the investors' false sense of security even stronger than the one that brought about the debacle of Oct. 19.

LENDER OF LAST RESORT?

<div class="phx-topic abstract-wrapper">The announcement of Leatherman’s expansion comes as MSC looks to bring in more trans-Atlantic services to call the terminal.</div>

The announcement of Leatherman’s expansion comes as MSC looks to bring in more trans-Atlantic services to call the terminal.

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<div class="phx-topic">The Port of Charleston plans to add a second big ship berth to its Hugh K. Leatherman marine terminal, with the terminal’s main customer, Mediterranean Shipping Co. (MSC), readying to bring new trans-Atlantic capacity to the port. The South Carolina State Ports Authority (SC Ports) said in a statement this week it began installing the test piles to ensure the integrity of a new 1,600-foot berth at Leatherman. The second berth, outfitted with five cranes, will allow the terminal to handle two super-post-Panamax vessels at once. SC Ports said it expects to complete the second berth by late 2026, bringing Leatherman’s capacity to about 1.6 million TEUs per year. The port’s board of directors approved an $88.5 million contract with Orion Marine Group for the preliminary work. Plans for a third berth at Leatherman, which would bring it to full capacity of 2.4 million TEUs, have yet to go forward. SC Ports said the cost of both the second and third berths could reach a total of $1.5 billion. In addition to the second berth, Leatherman will also be able to offer near-dock rail service with the opening of the Navy Base Intermodal Facility. SC Ports said it’s in the process of commissioning six rail-mounted gantry cranes for that facility, which is expected to open by early 2026. <h3>MSC adds services </h3>Leatherman’s sole berth has seen usage rise quickly a little over a year after SC Ports and the International Longshoremen’s Association (ILA) settled <a href="https://www.joc.com/article/sc-ports-strikes-deal-with-ila-to-fully-open-leatherman-marine-terminal-5192280">a legal dispute that kept ocean carriers away from the terminal</a>. Leatherman handled 45 vessels in the second quarter, according to data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. The Q2 vessel count was up from 33 ships in the first quarter and 23 in the fourth quarter of 2024. Zim Shipping became <a href="https://www.joc.com/article/zim-becomes-first-carrier-to-commit-to-reopened-leatherman-terminal-5735909">the first carrier to provide weekly service into Leatherman</a> following its reopening, but has since moved the service to Charleston’s other marine terminal. Now, Leatherman primarily handles MSC services from the Indian subcontinent and the Mediterranean. SC Ports said MSC will bring two additional trans-Atlantic services to Leatherman starting in September. Those include the “Albatros” service from Baltic ports and London’s Felixstowe, and the “Dragon” service between the Mediterranean and the US East Coast. Thanks to the presence of auto makers and other high-value manufacturing in South Carolina, Charleston sees relatively steady freight volumes coming from Europe. Since the start of 2024, containerized imports from Europe into Charleston have averaged 89,125 TEUs per quarter, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Hapag-Lloyd carries the majority of the trans-Atlantic freight into Charleston, with its average quarterly volume around 29,590 TEUs, PIERS data shows. MSC is second with a quarterly average of 21,939 TEUs. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Charleston plans to add a second big ship berth to its Hugh K. Leatherman marine terminal, with the terminal’s main customer, Mediterranean Shipping Co. (MSC), readying to bring new trans-Atlantic capacity to the port. The South Carolina State Ports Authority (SC Ports) said in a statement this week it began installing the test piles to ensure the integrity of a new 1,600-foot berth at Leatherman. The second berth, outfitted with five cranes, will allow the terminal to handle two super-post-Panamax vessels at once. SC Ports said it expects to complete the second berth by late 2026, bringing Leatherman’s capacity to about 1.6 million TEUs per year. The port’s board of directors approved an $88.5 million contract with Orion Marine Group for the preliminary work. Plans for a third berth at Leatherman, which would bring it to full capacity of 2.4 million TEUs, have yet to go forward. SC Ports said the cost of both the second and third berths could reach a total of $1.5 billion. In addition to the second berth, Leatherman will also be able to offer near-dock rail service with the opening of the Navy Base Intermodal Facility. SC Ports said it’s in the process of commissioning six rail-mounted gantry cranes for that facility, which is expected to open by early 2026. MSC adds services Leatherman’s sole berth has seen usage rise quickly a little over a year after SC Ports and the International Longshoremen’s Association (ILA) settled a legal dispute that kept ocean carriers away from the terminal . Leatherman handled 45 vessels in the second quarter, according to data from Sea-web, a sister company of the Journal of Commerce within S&P Global. The Q2 vessel count was up from 33 ships in the first quarter and 23 in the fourth quarter of 2024. Zim Shipping became the first carrier to provide weekly service into Leatherman following its reopening, but has since moved the service to Charleston’s other marine terminal. Now, Leatherman primarily handles MSC services from the Indian subcontinent and the Mediterranean. SC Ports said MSC will bring two additional trans-Atlantic services to Leatherman starting in September. Those include the “Albatros” service from Baltic ports and London’s Felixstowe, and the “Dragon” service between the Mediterranean and the US East Coast. Thanks to the presence of auto makers and other high-value manufacturing in South Carolina, Charleston sees relatively steady freight volumes coming from Europe. Since the start of 2024, containerized imports from Europe into Charleston have averaged 89,125 TEUs per quarter, according to PIERS, a sister company of the Journal of Commerce within S&P Global. Hapag-Lloyd carries the majority of the trans-Atlantic freight into Charleston, with its average quarterly volume around 29,590 TEUs, PIERS data shows. MSC is second with a quarterly average of 21,939 TEUs. Contact Michael Angell at michael.angell@spglobal.com .

Maritime

Container Shipping News

Container lines

Port infrastructure

North American ports

Port News

Charleston’s Leatherman terminal eyes second berth by late 2026

<div class="phx-topic abstract-wrapper">US ag exporters say the ongoing trade standoff between Washington and Beijing has effectively shut them out of the key Chinese market, causing them to fear for their long-term survival.</div>

US ag exporters say the ongoing trade standoff between Washington and Beijing has effectively shut them out of the key Chinese market, causing them to fear for their long-term survival.

<div class="phx-topic">US exporters of soybeans and meat say they’re losing key Chinese buyers due to high tariffs and are turning to President Donald Trump for relief. The 34% tariff China imposed in April is suppressing US containerized exports, Caleb Ragland, president of the American Soybean Association (ASA), said in a letter this week urging Trump to remove reciprocal duties on China, which also imposed a 32% tariff on US beef and a 57% levy on pork amid the trade standoff between Washington and Beijing. “US soybean farmers cannot survive a prolonged trade dispute with our largest customer,” Ragland said. Roughly 112,000 TEUs of US soybeans and meat were exported to China last year, down about 6% from 2023, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. According to Mike Steenhoek, executive director of the Soy Transportation Coalition, the 34.07% duty rate for cargo into China is pushing American soybean exporters out of the global market. Between July 2024 and June 2025, the most recent data available, PIERS shows a total of 356,830 TEUs of soybeans exported from the US, up 7% compared to the previous 12-month period. Total US meat exports declined 3.5% to 402,610 TEUs during that time. The China tariffs on the US are a boon for Brazilian exporters of soybeans and meat who compete with the US for Chinese buyers. Most US soybean exports are shipped via bulk; the commodity is transported in containers when smaller volumes are ordered. Meat exports move exclusively through refrigerated containers. Since China’s implementation of tariffs on US exports, South American soybeans cost about 20% less than their US competition, according to the ASA. <h3>Export window closing </h3>Meanwhile, the window for US exporters to regain the Chinese market this year is closing. US soybeans are harvested from September to March. After March, China sources soybeans from Brazil until its season ends in September, when US exporters typically resume supply. “The window for US soybean exporters to sell and ship this fall's harvest to China is rapidly closing,” Steenhoek told the Journal of Commerce. "If an agreement is not reached during the latest US-China three-month (tariff) pause, it will probably be too late for this fall's harvest.” US meat exporters are facing similar challenges. Last year, China consumed 15% of US pork exports and 14% of US beef exports, said Joe Schuele, spokesperson for the US Meat Export Federation. In 2024, the US exported about 424,000 TEUs of meat, about 56,380 TEUs of which were destined for China. Also creating a problem is the fact China failed to reauthorize exports from individual US beef plants in February and March when the five-year authorizations expired, further hindering US beef exporters. “We are all but shut out of the China market until those authorizations [for the individual beef plants] are renewed,” Schuele said. Thomas Eskesen, founder of reefer market consultant Eskesen Advisory, said given the ongoing tariff complications, US shippers need to look at new markets to sell their products. “(But) for this year, it’s almost too late to sort of just kind of plan like that,” Eskesen said Wednesday during a Journal of Commerce webcast. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

US exporters of soybeans and meat say they’re losing key Chinese buyers due to high tariffs and are turning to President Donald Trump for relief. The 34% tariff China imposed in April is suppressing US containerized exports, Caleb Ragland, president of the American Soybean Association (ASA), said in a letter this week urging Trump to remove reciprocal duties on China, which also imposed a 32% tariff on US beef and a 57% levy on pork amid the trade standoff between Washington and Beijing. “US soybean farmers cannot survive a prolonged trade dispute with our largest customer,” Ragland said. Roughly 112,000 TEUs of US soybeans and meat were exported to China last year, down about 6% from 2023, according to PIERS, a sister company of the Journal of Commerce within S&P Global. According to Mike Steenhoek, executive director of the Soy Transportation Coalition, the 34.07% duty rate for cargo into China is pushing American soybean exporters out of the global market. Between July 2024 and June 2025, the most recent data available, PIERS shows a total of 356,830 TEUs of soybeans exported from the US, up 7% compared to the previous 12-month period. Total US meat exports declined 3.5% to 402,610 TEUs during that time. The China tariffs on the US are a boon for Brazilian exporters of soybeans and meat who compete with the US for Chinese buyers. Most US soybean exports are shipped via bulk; the commodity is transported in containers when smaller volumes are ordered. Meat exports move exclusively through refrigerated containers. Since China’s implementation of tariffs on US exports, South American soybeans cost about 20% less than their US competition, according to the ASA. Export window closing Meanwhile, the window for US exporters to regain the Chinese market this year is closing. US soybeans are harvested from September to March. After March, China sources soybeans from Brazil until its season ends in September, when US exporters typically resume supply. “The window for US soybean exporters to sell and ship this fall's harvest to China is rapidly closing,” Steenhoek told the Journal of Commerce. "If an agreement is not reached during the latest US-China three-month (tariff) pause, it will probably be too late for this fall's harvest.” US meat exporters are facing similar challenges. Last year, China consumed 15% of US pork exports and 14% of US beef exports, said Joe Schuele, spokesperson for the US Meat Export Federation. In 2024, the US exported about 424,000 TEUs of meat, about 56,380 TEUs of which were destined for China. Also creating a problem is the fact China failed to reauthorize exports from individual US beef plants in February and March when the five-year authorizations expired, further hindering US beef exporters. “We are all but shut out of the China market until those authorizations [for the individual beef plants] are renewed,” Schuele said. Thomas Eskesen, founder of reefer market consultant Eskesen Advisory, said given the ongoing tariff complications, US shippers need to look at new markets to sell their products. “(But) for this year, it’s almost too late to sort of just kind of plan like that,” Eskesen said Wednesday during a Journal of Commerce webcast. Contact Laura Robb at laura.robb@spglobal.com .  Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Breakbulk News

Transport, Trade and Regulation News

Trans-Pacific

Tariff battle suppressing Chinese market for US soybean, meat exports

<div class="phx-topic abstract-wrapper">The carrier said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy.</div>

The carrier said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy.

<div class="phx-topic">Trade patterns shifting from global to more regional in nature partly due to changing tariff policies could offset the impact of US port charges on Chinese carriers, Hong Kong-listed Orient Overseas (International) said Thursday. That market segmentation, coupled with extended or restructured supply chains, could create new opportunities for shipping companies to refine their strategies, the company said in an interim earnings statement. The subsidiary of Cosco Shipping Holdings said US port charges that start on Oct. 14 “will have a relatively large impact” on its units, including carrier OOCL and OOCL Logistics. OOIL gave no details, but based on the current proposal from the US Trade Representative (USTR), 10,000-net-ton ships such as the 13,000-TEU OOCL Poland, deployed on OOCL’s Pacific China Central 1 service, will pay $3.5 million in the first year. That will rise to $9.8 million in 2028 when the levy climbs to $140 per net ton. OOIL said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy. “As a result, many customers seem to have started to shift away from their precautious strategy of frontloading earlier this year to a more cautious, wait-and-see approach,” it said. Despite the challenges “our vessels sailing on major long-haul routes are nearly fully loaded, and this is expected to continue in the coming weeks,” the carrier said. <h3>OOIL H1 net profit up 15%</h3>While the trans-Pacific was OOCL’s biggest revenue earner in the first half of 2025, contributing $1.6 billion out of total liner revenues of $4.4 billion, the carrier faced increased competition. On the eastbound trans-Pacific headhaul, liftings increased 8%, but revenue per TEU fell 12% and overall revenue decreased 5%. Overall, OOIL saw net profit increase 15% to $954 million in the first six months compared with the year prior, of which 99% was contributed by OOCL and OOCL Logistics. Revenue rose 6.5% to $4.9 billion OOCL’s total liftings for the first half increased 7% to 4 million TEUs. “Despite being only a single-digit improvement, the year-on year performance is the best post-pandemic period in terms of both liftings and liner revenue,” OOIL said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Trade patterns shifting from global to more regional in nature partly due to changing tariff policies could offset the impact of US port charges on Chinese carriers, Hong Kong-listed Orient Overseas (International) said Thursday. That market segmentation, coupled with extended or restructured supply chains, could create new opportunities for shipping companies to refine their strategies, the company said in an interim earnings statement. The subsidiary of Cosco Shipping Holdings said US port charges that start on Oct. 14 “will have a relatively large impact” on its units, including carrier OOCL and OOCL Logistics. OOIL gave no details, but based on the current proposal from the US Trade Representative (USTR), 10,000-net-ton ships such as the 13,000-TEU OOCL Poland, deployed on OOCL’s Pacific China Central 1 service, will pay $3.5 million in the first year. That will rise to $9.8 million in 2028 when the levy climbs to $140 per net ton. OOIL said trans-Pacific services have been especially susceptible to the erosion of business and consumer confidence and the disruption to long-term planning caused by frequent shifts in US tariff policy. “As a result, many customers seem to have started to shift away from their precautious strategy of frontloading earlier this year to a more cautious, wait-and-see approach,” it said. Despite the challenges “our vessels sailing on major long-haul routes are nearly fully loaded, and this is expected to continue in the coming weeks,” the carrier said. OOIL H1 net profit up 15% While the trans-Pacific was OOCL’s biggest revenue earner in the first half of 2025, contributing $1.6 billion out of total liner revenues of $4.4 billion, the carrier faced increased competition. On the eastbound trans-Pacific headhaul, liftings increased 8%, but revenue per TEU fell 12% and overall revenue decreased 5%. Overall, OOIL saw net profit increase 15% to $954 million in the first six months compared with the year prior, of which 99% was contributed by OOCL and OOCL Logistics. Revenue rose 6.5% to $4.9 billion OOCL’s total liftings for the first half increased 7% to 4 million TEUs. “Despite being only a single-digit improvement, the year-on year performance is the best post-pandemic period in terms of both liftings and liner revenue,” OOIL said. Contact Keith Wallis at keithwallis@hotmail.com .

Tariff-linked trade pattern shifts could offset impact of US port fees: OOIL

<div class="phx-topic abstract-wrapper">Just over 7,000 TEUs of capacity is scheduled to be withdrawn through blank sailings in September even as carriers increase their deployed capacity by 2%.</div>

Just over 7,000 TEUs of capacity is scheduled to be withdrawn through blank sailings in September even as carriers increase their deployed capacity by 2%.

<div class="phx-topic">Rates on the trans-Atlantic westbound ocean trade — a route dominated by Gemini Cooperation and Mediterranean Shipping Co. — have been stuck at loss-making levels for weeks, yet carriers are showing little appetite for blank sailings to raise prices. Spot rates assessed by Platts, a sister company of the Journal of Commerce, are at $1,600 per FEU this week, far below the breakeven level ocean carriers say is near $2,100/FEU. Rates have lost only $100 since mid-May. While carriers on the North Europe-US East Coast route are scheduled to increase deployed capacity to 376,132 TEUs in September, up 2% compared with August, just 7,349 TEUs in capacity will be withdrawn via blank sailings, according to data from rate benchmarking platform Xeneta. However, Destine Ozuygur, product marketing manager for Xeneta, cautioned about reading too much into the low blank sailings levels. “Blanks used to be a standard measure against persistent demand deficit, but it’s also become a widely used tool for ad-hoc reliability management,” Ozuygur said. “Carriers are far more comfortable admitting them into schedules in the short term, and repealing them, than they used to be. “Regardless of the tariff or rate environment, we would naturally expect at least a few more blanks to trickle in over the coming weeks,” she added. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="004f46ea-f9b5-4bd8-96be-a0146f19f1f0"></dynamic-object></div>The restructured ocean alliances have adjusted market share on the trans-Atlantic, leaving the trade lane dominated by MSC and Gemini partners Maersk and Hapag-Lloyd. Data from Alphaliner shows that after splitting from its 2M partner Maersk, MSC increased its Atlantic market share from 41.1% to 41.8% over the 12 months from July 2024 to July 2025. MSC now deploys a fleet of more than 500,000 TEUs between Europe and North America. Hapag-Lloyd remains the second-largest carrier in the trade, but its market share of 14.9% is significantly lower than the 19.6% share it held in July 2024. Hapag-Lloyd’s Gemini-partner Maersk increased its market share from 8.9% in July last year to 14.4% this year. “With the absence of both Ocean Alliance and Premier Alliance on this trade, reliability is largely left to Gemini, MSC and the non-alliances services,” said Ozuygur. Despite a lack of wider carrier representation, the present incumbents are not exactly setting reliability records. North Europe to US East Coast schedule reliability in July was 38%, a dismal level by any measure, although still a significant improvement on January’s 24%, Xeneta data showed. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="face521b-d4c4-40cd-b809-f10a6707a371"></dynamic-object></div>Some of the blame can be attributed to ongoing European port congestion that slows vessel turnarounds, which, on the relatively short transits across the Atlantic, “adds another layer of constraint and reduces effective service frequency,” C.H. Robinson noted in a recent market update. <h3>Addressing a new tariff landscape </h3>The schedule reliability and capacity deployed through the rest of the year will likely depend on how demand shapes up in the new trans-Atlantic tariff landscape. In a July 27 deal, a 15% tariff was applied to most EU goods exported to the US instead of the 30% tariff President Donald Trump had previously threatened, <a href="https://www.joc.com/article/trans-atlantic-trade-dispute-averted-as-us-eu-reach-weekend-deal-6051144">averting a destructive trade war</a>. The deal included provisions for zero tariffs on certain US exports to the EU and left the door open for negotiations on further market access. Frontloading in June as US-EU trade tensions escalated saw North Europe to US East Coast volume grow 14.2% year over year to almost 200,000 TEUs, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. It was short-lived, however, with July volume sliding to 198,750 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="808b5499-12f0-4682-8df3-9427d1d05738"></dynamic-object></div>Most observers believe the 15% tariff, while significantly higher than the pre-deal tariffs of about 4.8%, is not high enough to create a material change in shipper behavior on the trans-Atlantic. But Emily Stausbøll, senior analyst at Xeneta, said while 15% was more manageable than the threatened 30%, it was expected to keep demand muted considering frontloading in the second quarter has left fewer goods needing to be moved over the rest of the year. “We are still in a waiting period before we see the real effects of tariffs on prices and US consumer demand, with frontloading and retailers absorbing some of these extra costs,” Stausbøll told the Journal of Commerce. “But at some point, this will be passed on and should lower demand on this trade over the longer term.” The “wait-and-see” approach was also highlighted by an executive from one of the ocean carriers on the trans-Atlantic who said the market did not seem to have been heavily affected by the tariffs. “There have been clients taking a wait-and-see approach and others adding some shipments, but that is not having a major impact on the trade route, partly due to tariffs not being high enough to affect trade flows,” the carrier executive said, adding that the trade lane was expected to “settle without much change.” Xeneta’s Ozuygur agreed that shippers were taking a wait-and-see approach, noting that after the trade agreement, the trans-Atlantic was on a more stable and positive footing than during the volatile buildup to the deal. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Rates on the trans-Atlantic westbound ocean trade — a route dominated by Gemini Cooperation and Mediterranean Shipping Co. — have been stuck at loss-making levels for weeks, yet carriers are showing little appetite for blank sailings to raise prices. Spot rates assessed by Platts, a sister company of the Journal of Commerce, are at $1,600 per FEU this week, far below the breakeven level ocean carriers say is near $2,100/FEU. Rates have lost only $100 since mid-May. While carriers on the North Europe-US East Coast route are scheduled to increase deployed capacity to 376,132 TEUs in September, up 2% compared with August, just 7,349 TEUs in capacity will be withdrawn via blank sailings, according to data from rate benchmarking platform Xeneta. However, Destine Ozuygur, product marketing manager for Xeneta, cautioned about reading too much into the low blank sailings levels. “Blanks used to be a standard measure against persistent demand deficit, but it’s also become a widely used tool for ad-hoc reliability management,” Ozuygur said. “Carriers are far more comfortable admitting them into schedules in the short term, and repealing them, than they used to be. “Regardless of the tariff or rate environment, we would naturally expect at least a few more blanks to trickle in over the coming weeks,” she added. The restructured ocean alliances have adjusted market share on the trans-Atlantic, leaving the trade lane dominated by MSC and Gemini partners Maersk and Hapag-Lloyd. Data from Alphaliner shows that after splitting from its 2M partner Maersk, MSC increased its Atlantic market share from 41.1% to 41.8% over the 12 months from July 2024 to July 2025. MSC now deploys a fleet of more than 500,000 TEUs between Europe and North America. Hapag-Lloyd remains the second-largest carrier in the trade, but its market share of 14.9% is significantly lower than the 19.6% share it held in July 2024. Hapag-Lloyd’s Gemini-partner Maersk increased its market share from 8.9% in July last year to 14.4% this year. “With the absence of both Ocean Alliance and Premier Alliance on this trade, reliability is largely left to Gemini, MSC and the non-alliances services,” said Ozuygur. Despite a lack of wider carrier representation, the present incumbents are not exactly setting reliability records. North Europe to US East Coast schedule reliability in July was 38%, a dismal level by any measure, although still a significant improvement on January’s 24%, Xeneta data showed. Some of the blame can be attributed to ongoing European port congestion that slows vessel turnarounds, which, on the relatively short transits across the Atlantic, “adds another layer of constraint and reduces effective service frequency,” C.H. Robinson noted in a recent market update. Addressing a new tariff landscape The schedule reliability and capacity deployed through the rest of the year will likely depend on how demand shapes up in the new trans-Atlantic tariff landscape. In a July 27 deal, a 15% tariff was applied to most EU goods exported to the US instead of the 30% tariff President Donald Trump had previously threatened, averting a destructive trade war . The deal included provisions for zero tariffs on certain US exports to the EU and left the door open for negotiations on further market access. Frontloading in June as US-EU trade tensions escalated saw North Europe to US East Coast volume grow 14.2% year over year to almost 200,000 TEUs, according to PIERS, a sister product of the Journal of Commerce within S&P Global. It was short-lived, however, with July volume sliding to 198,750 TEUs. Most observers believe the 15% tariff, while significantly higher than the pre-deal tariffs of about 4.8%, is not high enough to create a material change in shipper behavior on the trans-Atlantic. But Emily Stausbøll, senior analyst at Xeneta, said while 15% was more manageable than the threatened 30%, it was expected to keep demand muted considering frontloading in the second quarter has left fewer goods needing to be moved over the rest of the year. “We are still in a waiting period before we see the real effects of tariffs on prices and US consumer demand, with frontloading and retailers absorbing some of these extra costs,” Stausbøll told the Journal of Commerce. “But at some point, this will be passed on and should lower demand on this trade over the longer term.” The “wait-and-see” approach was also highlighted by an executive from one of the ocean carriers on the trans-Atlantic who said the market did not seem to have been heavily affected by the tariffs. “There have been clients taking a wait-and-see approach and others adding some shipments, but that is not having a major impact on the trade route, partly due to tariffs not being high enough to affect trade flows,” the carrier executive said, adding that the trade lane was expected to “settle without much change.” Xeneta’s Ozuygur agreed that shippers were taking a wait-and-see approach, noting that after the trade agreement, the trans-Atlantic was on a more stable and positive footing than during the volatile buildup to the deal. Contact Greg Knowler at greg.knowler@spglobal.com .

Trans-Atlantic

Trans-Atlantic carriers limit capacity cuts despite ongoing rate weakness

<div class="phx-topic abstract-wrapper">With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades, writes Jeremy Masters. </div>

With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades, writes Jeremy Masters.

<div class="phx-topic">In <a href="https://www.joc.com/article/high-variance-exists-in-carriers-cross-trade-products-6045899">my column of July 18</a>, we looked at the wide range of transshipment services that the top five operators are offering in non-core trades. At some point in the life of these trades, carriers will consider whether there is sufficient promise to deploy direct services. There are a number of motivations behind this. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6066828_0.1.jpg"></img></div>Carriers will want to have first-mover advantage. Transshipment — particularly between two deep-sea services — can produce very variable products. Carriers offering a direct service will have the chance to establish pole position. Secondly, those with suitable tonnage will see an opportunity. Some of the carriers’ raids of small- to mid-range tonnage in the secondhand markets (plus ongoing delivery of newbuilds) will have greater flexibility in feeder, regional and developing trades to upgrade from transshipment without swamping a trade with big ships. Finally, with all the capacity injections, both current and future, a glut beckons that will bring rates down on a widespread basis. As ships are moveable assets, they can quickly spread overcapacity contagion from one trade to another. New direct services will certainly not be enough to swing the dial back; carriers will need to be nimble on multiple capacity-eating fronts for that. But investing in new linkages and moving overcapacity out has some attractions. <h3>‘High-potential’ trades </h3>Using Container Trade Statistics’ (CTS’) extensive volume data at a granular level, we looked at several developing trades and arrived at the conclusion that there are many with high potential. In any new or expanded deployment, carriers will look at: a) the evolution of volumes in the trade and the expected utilization if they deploy a premium product; b) the evolution of rates in the trade, which in most cases will be reasonably healthy as a transshipment trade but might be impacted by an injection of new direct capacity; and c) the cost of ship, port and equipment systems, including imbalances. New direct connections are the obvious starting point, but carriers also have the possibility to link in feeder hubs and partially piggyback on other direct routes. This has the advantage of access to a wider pool of cargo and derisking developing trades that can be volatile. The <a href="https://www.joc.com/article/msc-will-expand-africa-us-trade-with-new-calls-6063823">announcement from Mediterranean Shipping Co.</a> that it will serve the US-to-West Africa trade as part of its South Africa service certainly adds one substantive trade to its direct network. But by offering the US Gulf, Mexico and parts of Central America to West Africa and South Africa off Freeport and connecting West Africa to South Africa, MSC opens up other important flows of developing business and the possibility for double-dipping. The East Coast of South America (ECSA) to West Africa is also emerging strongly. To serve this trade, carriers transship over the Mediterranean or North Europe with heavy diversion time. The least diverted is with MSC via Las Palmas in the Canary Islands, but that is still a combined 5,515 nautical miles ex-Rio to Abidjan in West Africa against 2,932 nautical miles direct. There are few obvious links to other trades, however, so carriers would need to be comfortable about getting critical mass just in these lanes. <h3>India-ECSA an ‘emerging trade’ </h3>A good example of an emerging trade that combines several themes is India to ECSA. There is an HMM product from Kattupalli East India to Brazil, and the big carriers have a variety of transshipment products from Northwest India via South Africa, Sri Lanka, Morocco and Singapore. Per CTS stats, volume indication from 2020 to date is as follows for India ports to ECSA TEUs: <div class="wrapper-full"><table><colgroup><col width="33.33%"></col><col width="33.33%"></col><col width="33.33%"></col></colgroup><thead><tr><th>Year</th><th class="align-right">Indian Sub Cont. to ECSA</th><th class="align-right">ECSA to Indian Sub Cont.</th></tr></thead><tbody><tr><td>2022 </td><td class="align-right">96,718 </td><td class="align-right">96,921</td></tr><tr><td>2023</td><td class="align-right">123,658</td><td class="align-right">105,835</td></tr><tr><td>2024</td><td class="align-right">149,615</td><td class="align-right">163,004</td></tr><tr><td>YTD 2025</td><td class="align-right">61,393</td><td class="align-right">89,274</td></tr></tbody><tfoot><tr><td colspan="3">Source: Container Trade Statistics</td></tr></tfoot></table></div>In addition to the positive progression in direct volumes, any carrier serving this trade naturally must go around the Cape of Good Hope, so a call at South African ports, although in competition with other direct services, offers a chance to significantly increase cargo catchment. There would, of course, be more competition in these directly-linked trades, but the following 2024 annual TEUs figures illustrate the opportunity: <div class="wrapper-full"><table><colgroup><col width="50%"></col><col width="50%"></col></colgroup><tbody><tr><td>Indian Sub Cont. to Southern Africa</td><td class="align-right">123,303</td></tr><tr><td>Southern Africa to ECSA</td><td class="align-right">10,128</td></tr><tr><td>ECSA to Southern Africa</td><td class="align-right">88,017</td></tr><tr><td>Southern Africa to Indian Sub Cont.</td><td class="align-right">151,591</td></tr></tbody><tfoot><tr><td colspan="2">Source: Container Trade Statistics</td></tr></tfoot></table></div>Adding an Indian Ocean transshipment hub such as Port Louis in Mauritius would offer more possibilities to mix-and-match markets and build a well-utilized, remunerative product. There are plenty of possibilities out there and carriers can do their homework on how trade volumes are developing. With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

In my column of July 18 , we looked at the wide range of transshipment services that the top five operators are offering in non-core trades. At some point in the life of these trades, carriers will consider whether there is sufficient promise to deploy direct services. There are a number of motivations behind this. Carriers will want to have first-mover advantage. Transshipment — particularly between two deep-sea services — can produce very variable products. Carriers offering a direct service will have the chance to establish pole position. Secondly, those with suitable tonnage will see an opportunity. Some of the carriers’ raids of small- to mid-range tonnage in the secondhand markets (plus ongoing delivery of newbuilds) will have greater flexibility in feeder, regional and developing trades to upgrade from transshipment without swamping a trade with big ships. Finally, with all the capacity injections, both current and future, a glut beckons that will bring rates down on a widespread basis. As ships are moveable assets, they can quickly spread overcapacity contagion from one trade to another. New direct services will certainly not be enough to swing the dial back; carriers will need to be nimble on multiple capacity-eating fronts for that. But investing in new linkages and moving overcapacity out has some attractions. ‘High-potential’ trades Using Container Trade Statistics’ (CTS’) extensive volume data at a granular level, we looked at several developing trades and arrived at the conclusion that there are many with high potential. In any new or expanded deployment, carriers will look at: a) the evolution of volumes in the trade and the expected utilization if they deploy a premium product; b) the evolution of rates in the trade, which in most cases will be reasonably healthy as a transshipment trade but might be impacted by an injection of new direct capacity; and c) the cost of ship, port and equipment systems, including imbalances. New direct connections are the obvious starting point, but carriers also have the possibility to link in feeder hubs and partially piggyback on other direct routes. This has the advantage of access to a wider pool of cargo and derisking developing trades that can be volatile. The announcement from Mediterranean Shipping Co. that it will serve the US-to-West Africa trade as part of its South Africa service certainly adds one substantive trade to its direct network. But by offering the US Gulf, Mexico and parts of Central America to West Africa and South Africa off Freeport and connecting West Africa to South Africa, MSC opens up other important flows of developing business and the possibility for double-dipping. The East Coast of South America (ECSA) to West Africa is also emerging strongly. To serve this trade, carriers transship over the Mediterranean or North Europe with heavy diversion time. The least diverted is with MSC via Las Palmas in the Canary Islands, but that is still a combined 5,515 nautical miles ex-Rio to Abidjan in West Africa against 2,932 nautical miles direct. There are few obvious links to other trades, however, so carriers would need to be comfortable about getting critical mass just in these lanes. India-ECSA an ‘emerging trade’ A good example of an emerging trade that combines several themes is India to ECSA. There is an HMM product from Kattupalli East India to Brazil, and the big carriers have a variety of transshipment products from Northwest India via South Africa, Sri Lanka, Morocco and Singapore. Per CTS stats, volume indication from 2020 to date is as follows for India ports to ECSA TEUs: Year Indian Sub Cont. to ECSA ECSA to Indian Sub Cont. 2022 96,718 96,921 2023 123,658 105,835 2024 149,615 163,004 YTD 2025 61,393 89,274 Source: Container Trade Statistics In addition to the positive progression in direct volumes, any carrier serving this trade naturally must go around the Cape of Good Hope, so a call at South African ports, although in competition with other direct services, offers a chance to significantly increase cargo catchment. There would, of course, be more competition in these directly-linked trades, but the following 2024 annual TEUs figures illustrate the opportunity: Indian Sub Cont. to Southern Africa 123,303 Southern Africa to ECSA 10,128 ECSA to Southern Africa 88,017 Southern Africa to Indian Sub Cont. 151,591 Source: Container Trade Statistics Adding an Indian Ocean transshipment hub such as Port Louis in Mauritius would offer more possibilities to mix-and-match markets and build a well-utilized, remunerative product. There are plenty of possibilities out there and carriers can do their homework on how trade volumes are developing. With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

A sea of opportunities exists to swap transshipment for direct services

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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