<div class="phx-topic abstract-wrapper">The low water has stopped all barge transport on a huge section of the critical European waterway stretching between Kaub and the Swiss town of Basel, leaving high and dry shippers scrambling for truck transport that is in critically short supply.</div>

The low water has stopped all barge transport on a huge section of the critical European waterway stretching between Kaub and the Swiss town of Basel, leaving high and dry shippers scrambling for truck transport that is in critically short supply.

<div><div><img></div>The low water has stopped all barge transport on a huge section of the critical European waterway stretching between Kaub and the Swiss town of Basel, leaving high and dry shippers scrambling for truck transport that is in critically short supply. Photo credit: Shutterstock.com.Containers are stacking up at terminals along the Rhine in Europe with the water level on the <a>Rhine River</a> at the German town of Kaub, near Frankfurt, today falling below 30 centimeters (11.8 inches), less than a third of the draft needed to float even a small, empty barge.The low water has stopped all barge transport on...

The low water has stopped all barge transport on a huge section of the critical European waterway stretching between Kaub and the Swiss town of Basel, leaving high and dry shippers scrambling for truck transport that is in critically short supply. Photo credit: Shutterstock.com. Containers are stacking up at terminals along the Rhine in Europe with the water level on the Rhine River at the German town of Kaub, near Frankfurt, today falling below 30 centimeters (11.8 inches), less than a third of the draft needed to float even a small, empty barge. The low water has stopped all barge transport on a huge section of the critical European waterway stretching between Kaub and the Swiss town of Basel, leaving high and dry shippers scrambling for truck transport that is in critically short supply. Low water surcharges by some barge operators on the Middle and Upper Rhine are as high as €900 per TEU ($1,021 per TEU) and road freight rates are soaring, but the high prices make little difference if the boxes are stranded. “The cost is one thing, but if it is physically impossible to move a container, it doesn’t matter what shippers pay,” said Maira van Helvoirt, chairperson of European inland waterway association LINc. Van Helvoirt told JOC.com that containers were stacking up at terminals along the river and because of the volume, there was very limited road and rail capacity available as an alternative. “Shippers are facing serious issues in keeping their supply chains running. Barge operators are trying to improvise by shuttling by truck to other terminals, but it is very expensive and if there is no capacity it obviously won’t help,” she said. An IHS Markit report said consumer supply has been complicated by the low Rhine water levels, and manufacturers such as BASF and Solvay, being deepest inland, were not able to receive raw materials. Solvay has not taken delivery of raw material shipments by barge since Oct. 16, and BASF declared force majeure for some nylon products coming out of its Ludwigshafen plant. Demand reduces road, rail diversions Steffen Bauer, chief operating officer, business unit shipping, for European intermodal operator Imperial Logistics International, said the low water was posing a huge challenge to the market. “Demand is greatly increased, and there is finite road and rail capacity, exacerbated by a shortage of truck drivers. This has certainly increased rates, particularly for ad hoc bookings and special movements,” he said. Atlantic Container Line (ACL) said in a customer advisory that the low water meant the intermodal provider would not have the ability to offer barge-truck moves, even as shipper requests for truck transport has quadrupled for the next few weeks. “All one-way truckers are fully booked for the next couple of weeks as this is a general issue in the market,” ACL said. The advisory noted that “guaranteeing carrier haulage delivery and pick-ups on a timely basis as part of a through rate is extremely difficult. “Accordingly, please note ACL cannot be held responsible for any third-party costs that may be associated with our inability to secure adequate truck power to deliver or collect shipments, or spot containers.” Rain is forecast for next week (Oct. 29-Nov. 3), and while Van Helvoirt said this was very welcome, she outlined just how much the water level needed to increase before normal barge operations could resume. A small barge has an empty draft of 90 centimeters, while a large empty barge requires at least 1.3 meters of water depth. A large, fully laden barge with 400 TEU to 500 TEU needs a draft of 3 to 3.5 meters to safely navigate the river, she said. Even if the rain falls as forecast next week, it is expected to raise the level of the Rhine River at the town of Kaub to just 42 centimeters. Contact Greg Knowler at greg.knowler@ihsmarkit.com and follow him on Twitter: @greg_knowler .

Maritime

Supply chain

Low water halts all Rhine barge shipping on Kaub-Basel stretch

<div class="phx-topic abstract-wrapper">With few opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, liners will need to look elsewhere to save costs; it won’t be long before AI offers up ready solutions, writes Peter Tirschwell.</div>

With few opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, liners will need to look elsewhere to save costs; it won’t be long before AI offers up ready solutions, writes Peter Tirschwell.

Feature image

<div class="phx-topic">Freight transportation companies, including ocean carriers, closely scrutinize the cost structure of their competitors. The reason is existential: In highly competitive and quasi-commodity markets, companies with lower costs can undercut the competition, walking away with customers, revenues and market share. With artificial intelligence (AI) entering the picture, offering the potential for mass-automation of human tasks, an ever-present focus on cost is set to be hyper-charged. The race is on to leverage AI to lower costs as quickly and aggressively as possible, with one forwarder telling the Journal of Commerce the urgency is more a matter of remaining competitive — and ultimately remaining in business — than improving profitability. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6162804_0.1.jpg"></img></div>“One issue that stands out is the opportunity to use AI to cut costs…the supply chain sector is ripe for major cost savings,” Benjamin Gordon, managing partner of Cambridge Capital, <a href="https://www.linkedin.com/posts/bengordon18_bgsaconference-activity-7422998274158137344-KhAK?utm_source=share&amp;utm_medium=member_desktop&amp;rcm=ACoAAADfW-8BOfvVS8-hsN9U369b-ZDwYA85OWY">wrote in late January</a> following his annual BGSA Supply Chain Conference. Among ocean container carriers, blocks of cost were taken out over decades through a series of mergers and acquisitions that took the market share of the top 10 carriers from around 50% in the mid-1990s to nearly 85% today, according to Alphaliner. But with few further opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, carriers will need to look elsewhere. It won’t be long before AI offers up ready solutions. The reason, some way, is that big new pockets of cost are able to be removed by automating a range of core carrier processes including customer service, dispute resolution, scrutiny of vendor invoices, and the order-to-cash cycle. <h3>Customer service inquires primed for automation </h3>Customer service is a prime target. Customer inquiries regarding vessel ETA, last free day, extension on free time, whether a bill of lading has been sent or if a draft BoL can be sent, all are standardized processes ripe for automation, said Siddharth Vijay, founder of New York-based Lynk Labs, which is building AI agents to automate core operational workflows at supply chain companies. Vijay estimates that 40% of ocean carrier customer service volume can be automated, with humans left to focus on exceptions. “I estimate this number can get up to 70% in the next two years,” he told the Journal of Commerce. Assuming a $30,000 fully loaded headcount cost per customer service representative, if a carrier has 2,000 staff, the savings would be around $24 million per year. If the staff count is 5,000, the savings could reach $60 million per year, Vijay estimated. Those numbers are too big to be ignored. “This only accounts for the headcount savings,” he said. “The other large value proposition is improving customer relationships with timely, rapid answers,” a key KPI for customer service teams. It is unlikely that ocean carriers, even though they tend to be conservative organizations, will not soon begin exploring such opportunities given the competitive implications. In the area of dispute resolution, to handle thousands of billing and service disputes, ocean carriers employ small armies to research history, exceptions and documentation required to resolve the dispute. Vijay said AI can make the process vastly more efficient by identifying root causes of disputes to enable carriers to proactively fix systemic issues, summarizing disputes and suggesting resolutions to improve handling time per dispute and reducing the number of disputes. <h3>AI and carrier decision-making a ‘very viable’ pairing </h3>For ocean carriers, there may be an even bigger prize from large-scale integration of AI. Could AI one day soon drive core carrier decision-making regarding when to accept or reject bookings, where to position empty containers, what ports to call, when to blank sailings, and where to deploy ships, all rolled up into running the business to maximize profit? Such a scenario is “very viable,” Vijay said. “I don’t think it is far-fetched at all,” he said. “At its core, this is what we call a constrained optimization problem. Given vessels, capacity, rates, port constraints, and customer commitments, etc., what is the profit-maximizing network?” “The hardest part isn’t the AI algorithm itself; it’s aggregating clean, operational data across the carrier and having enough representative historical examples to ‘train’ and validate the system,” Vijay added. “In other words, it’s fundamentally a data availability problem.” Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com.</a></div>

Freight transportation companies, including ocean carriers, closely scrutinize the cost structure of their competitors. The reason is existential: In highly competitive and quasi-commodity markets, companies with lower costs can undercut the competition, walking away with customers, revenues and market share. With artificial intelligence (AI) entering the picture, offering the potential for mass-automation of human tasks, an ever-present focus on cost is set to be hyper-charged. The race is on to leverage AI to lower costs as quickly and aggressively as possible, with one forwarder telling the Journal of Commerce the urgency is more a matter of remaining competitive — and ultimately remaining in business — than improving profitability. “One issue that stands out is the opportunity to use AI to cut costs…the supply chain sector is ripe for major cost savings,” Benjamin Gordon, managing partner of Cambridge Capital, wrote in late January following his annual BGSA Supply Chain Conference. Among ocean container carriers, blocks of cost were taken out over decades through a series of mergers and acquisitions that took the market share of the top 10 carriers from around 50% in the mid-1990s to nearly 85% today, according to Alphaliner. But with few further opportunities for large-scale consolidation and freight rates under growing pressure from slowing volumes and the largest-ever order book, carriers will need to look elsewhere. It won’t be long before AI offers up ready solutions. The reason, some way, is that big new pockets of cost are able to be removed by automating a range of core carrier processes including customer service, dispute resolution, scrutiny of vendor invoices, and the order-to-cash cycle. Customer service inquires primed for automation Customer service is a prime target. Customer inquiries regarding vessel ETA, last free day, extension on free time, whether a bill of lading has been sent or if a draft BoL can be sent, all are standardized processes ripe for automation, said Siddharth Vijay, founder of New York-based Lynk Labs, which is building AI agents to automate core operational workflows at supply chain companies. Vijay estimates that 40% of ocean carrier customer service volume can be automated, with humans left to focus on exceptions. “I estimate this number can get up to 70% in the next two years,” he told the Journal of Commerce. Assuming a $30,000 fully loaded headcount cost per customer service representative, if a carrier has 2,000 staff, the savings would be around $24 million per year. If the staff count is 5,000, the savings could reach $60 million per year, Vijay estimated. Those numbers are too big to be ignored. “This only accounts for the headcount savings,” he said. “The other large value proposition is improving customer relationships with timely, rapid answers,” a key KPI for customer service teams. It is unlikely that ocean carriers, even though they tend to be conservative organizations, will not soon begin exploring such opportunities given the competitive implications. In the area of dispute resolution, to handle thousands of billing and service disputes, ocean carriers employ small armies to research history, exceptions and documentation required to resolve the dispute. Vijay said AI can make the process vastly more efficient by identifying root causes of disputes to enable carriers to proactively fix systemic issues, summarizing disputes and suggesting resolutions to improve handling time per dispute and reducing the number of disputes. AI and carrier decision-making a ‘very viable’ pairing For ocean carriers, there may be an even bigger prize from large-scale integration of AI. Could AI one day soon drive core carrier decision-making regarding when to accept or reject bookings, where to position empty containers, what ports to call, when to blank sailings, and where to deploy ships, all rolled up into running the business to maximize profit? Such a scenario is “very viable,” Vijay said. “I don’t think it is far-fetched at all,” he said. “At its core, this is what we call a constrained optimization problem. Given vessels, capacity, rates, port constraints, and customer commitments, etc., what is the profit-maximizing network?” “The hardest part isn’t the AI algorithm itself; it’s aggregating clean, operational data across the carrier and having enough representative historical examples to ‘train’ and validate the system,” Vijay added. “In other words, it’s fundamentally a data availability problem.” Contact Peter Tirschwell at peter.tirschwell@spglobal.com.

Container lines

AI primed to offer ocean carriers many and varied ways to cut expenses

<div class="phx-topic abstract-wrapper">Norden, Stena RoRo and Meriaura commit to up to 15 new ships as the resilience of the MPV market is reflected in the most recent quarterly sentiment index published by One World Shipbrokers.</div>

Norden, Stena RoRo and Meriaura commit to up to 15 new ships as the resilience of the MPV market is reflected in the most recent quarterly sentiment index published by One World Shipbrokers.

<div class="phx-topic">The breakbulk and project cargo vessel fleet is set to expand after three separate ship operators inked deals to add a raft of ships to their stables last week. DS Norden confirmed it will charter up to eight 17,400-deadweight metric ton (dwt) multipurpose vessels from Singapore-headquartered Wealth Holdings Shipping, with delivery of the first vessel expected in 2028. Wealth Holdings has placed a firm order for four ships with China’s Jiangsu Haitong Shipyard and has options for four similar vessels, a Norden spokesperson confirmed. The ships will take Norden’s total MPV order backlog to 24 ships. These include two MPVs Norden agreed in early January to acquire on long-term lease when the newbuild ships are delivered in 2028. The ship leases include purchase options for Norden to buy the vessels at the end of the rental period. Norden had 14 vessels on order at the end of last year that are also being acquired on newbuild leases with purchase options.   The Copenhagen-headquartered carrier said expansion of its MPV fleet is a “continuation of our strategy to grow our presence in the project cargo market.” “The MPV segment benefits from favorable supply fundamentals with a rapidly ageing fleet and low orderbook, coupled with a strong demand outlook,” the carrier said in a statement. <h3>Orders continue to roll in </h3>Stena RoRo, the Gothenberg, Sweden-based roll-on/roll-off vessel operator, has ordered up to six C-Flexer 15,000-dwt ro/ro ships from its long-term partner shipbuilder China Merchants Industry (CMI) Weihai Shipyard, the carrier said in a statement Jan. 28. The deal covers a firm order for two ships to be delivered in March and June 2029, plus options for four other vessels to be delivered at three-month intervals starting from September 2029. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="603b5e33-5aef-4074-b493-3043df26c4a7"></dynamic-object></div>The ships, developed by Stena RoRo in cooperation with Italian design company NAOS Ship and Boat Design, are the latest iteration of Stena’s Flexer design and feature multi-fuel engines and a scalable battery-hybrid system. “In the future, the C-Flexer will be able to operate entirely on batteries,” Per Westling, Stena RoRo managing director, said in the statement. “Until then, the installed diesel-battery hybrid system will provide the necessary flexibility and redundancy for many years to come.” Another new order came from Turku, Finland-headquartered Meriaura, which signed a contract with China’s Jiangsu Zhenjiang Shipyard (Group) for a 6,800-dwt open deck carrier to be delivered by the beginning of 2028, the vessel operator said. The ice-classed ship will be Meriaura’s third open deck carrier, following the smaller 4,500-dwt vessels Aura and Meri that are currently in service. Meriaura said the ship, like the earlier vessels, has been designed by Deltamarin Finland. The ship will be equipped with three main engines that can be adapted to operate on future low- or zero-carbon fuels. The new vessel will primarily operate in the short-sea shipping market. “Meriaura’s open deck carriers are market leaders in several heavy cargo segments in Northern Europe, but there is still significant untapped potential in regional short-sea shipping activities,” Jessica Saari, Meriaura’s business development director, said in a statement. <h3>Positive expectations driving long-term outlook </h3>The resilience of the MPV market was reflected in the most recent quarterly market sentiment index published by One World Shipbrokers, which said “short-term cargo volumes have modestly improved and longer-term expectations remain positive.” “Trade patterns suggest that Europe is currently operating closer to a spot market, while in Asia, carriers report bookings being made several weeks ahead, as breakbulk and project cargo becomes available more quickly than vessels returning on the longer Cape of Good Hope route,” Justin Archard, founder of the shipbroking house, wrote in the report. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="42dedc5b-182e-4cb5-b0ef-299b3178b84a"></dynamic-object></div>“Time charter rates remain high enough to reward owners of current stock, but are not high enough to encourage speculators,” Archard added. Despite an increase in newbuilding orders, including <a href="https://www.joc.com/article/cosco-awards-initial-newbuilding-deals-as-part-of-7-billion-fleet-expansion-6145063">deals by Cosco Shipping</a> and <a href="https://www.joc.com/article/chipolbrok-scales-up-heavy-lift-multipurpose-fleet-with-new-ship-orders-6146899">Chipolbrok in early January</a>, the average age of the MPV fleet is still close to 17 years old, with vessel scrapping likely to outstrip the arrival of new ships in the fleet, the One World report, published Jan. 28, said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

The breakbulk and project cargo vessel fleet is set to expand after three separate ship operators inked deals to add a raft of ships to their stables last week. DS Norden confirmed it will charter up to eight 17,400-deadweight metric ton (dwt) multipurpose vessels from Singapore-headquartered Wealth Holdings Shipping, with delivery of the first vessel expected in 2028. Wealth Holdings has placed a firm order for four ships with China’s Jiangsu Haitong Shipyard and has options for four similar vessels, a Norden spokesperson confirmed. The ships will take Norden’s total MPV order backlog to 24 ships. These include two MPVs Norden agreed in early January to acquire on long-term lease when the newbuild ships are delivered in 2028. The ship leases include purchase options for Norden to buy the vessels at the end of the rental period. Norden had 14 vessels on order at the end of last year that are also being acquired on newbuild leases with purchase options.   The Copenhagen-headquartered carrier said expansion of its MPV fleet is a “continuation of our strategy to grow our presence in the project cargo market.” “The MPV segment benefits from favorable supply fundamentals with a rapidly ageing fleet and low orderbook, coupled with a strong demand outlook,” the carrier said in a statement. Orders continue to roll in Stena RoRo, the Gothenberg, Sweden-based roll-on/roll-off vessel operator, has ordered up to six C-Flexer 15,000-dwt ro/ro ships from its long-term partner shipbuilder China Merchants Industry (CMI) Weihai Shipyard, the carrier said in a statement Jan. 28. The deal covers a firm order for two ships to be delivered in March and June 2029, plus options for four other vessels to be delivered at three-month intervals starting from September 2029. The ships, developed by Stena RoRo in cooperation with Italian design company NAOS Ship and Boat Design, are the latest iteration of Stena’s Flexer design and feature multi-fuel engines and a scalable battery-hybrid system. “In the future, the C-Flexer will be able to operate entirely on batteries,” Per Westling, Stena RoRo managing director, said in the statement. “Until then, the installed diesel-battery hybrid system will provide the necessary flexibility and redundancy for many years to come.” Another new order came from Turku, Finland-headquartered Meriaura, which signed a contract with China’s Jiangsu Zhenjiang Shipyard (Group) for a 6,800-dwt open deck carrier to be delivered by the beginning of 2028, the vessel operator said. The ice-classed ship will be Meriaura’s third open deck carrier, following the smaller 4,500-dwt vessels Aura and Meri that are currently in service. Meriaura said the ship, like the earlier vessels, has been designed by Deltamarin Finland. The ship will be equipped with three main engines that can be adapted to operate on future low- or zero-carbon fuels. The new vessel will primarily operate in the short-sea shipping market. “Meriaura’s open deck carriers are market leaders in several heavy cargo segments in Northern Europe, but there is still significant untapped potential in regional short-sea shipping activities,” Jessica Saari, Meriaura’s business development director, said in a statement. Positive expectations driving long-term outlook The resilience of the MPV market was reflected in the most recent quarterly market sentiment index published by One World Shipbrokers, which said “short-term cargo volumes have modestly improved and longer-term expectations remain positive.” “Trade patterns suggest that Europe is currently operating closer to a spot market, while in Asia, carriers report bookings being made several weeks ahead, as breakbulk and project cargo becomes available more quickly than vessels returning on the longer Cape of Good Hope route,” Justin Archard, founder of the shipbroking house, wrote in the report. “Time charter rates remain high enough to reward owners of current stock, but are not high enough to encourage speculators,” Archard added. Despite an increase in newbuilding orders, including deals by Cosco Shipping and Chipolbrok in early January , the average age of the MPV fleet is still close to 17 years old, with vessel scrapping likely to outstrip the arrival of new ships in the fleet, the One World report, published Jan. 28, said. Contact Keith Wallis at keithwallis@hotmail.com.

Breakbulk carriers

Ro/ro cargo

Heavy-haul transport

Project cargo

Breakbulk News

Breakbulk, project cargo operators expand fleets with raft of new orders

<div class="phx-topic abstract-wrapper">The appointment of Maersk’s terminals arm came just hours after Panama’s Supreme Court nullified the concessions Hutchison had held at the Balboa and Cristobal ports for almost 30 years.</div>

The appointment of Maersk’s terminals arm came just hours after Panama’s Supreme Court nullified the concessions Hutchison had held at the Balboa and Cristobal ports for almost 30 years.

<div class="phx-topic">Maersk’s APM Terminals on Friday was appointed the interim administrator of the Balboa and Cristobal terminals that bookend the Panama Canal after the country’s Supreme Court nullified the operating concessions long held by the Panama Ports Company, a subsidiary of Hutchinson Port Holdings. The Panama Maritime Authority said it hoped for an orderly and coordinated transition from Panama Ports to APMT, noting Hong Kong conglomerate CK Hutchison Holdings is a “globally recognized organization known for its strong corporate reputation.” “In this context, we trust in their constructive collaboration during this phase, for the benefit of the port system’s stability,” the maritime authority said in a statement announcing the Maersk takeover. This came a day after Panama Ports Company (PPC) <a href="https://www.joc.com/article/panama-court-voids-ck-hutchison-canal-terminal-leases-6161145">angrily rejected the Supreme Court’s decision to cancel its concessions</a>, saying the ruling “lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country.” PPC also warned it could take national and international legal action against the Panamanian government in response to the court decision, which it said was the latest development in an ongoing campaign that included “a range of surprise actions” targeting the terminal concessions and PPC. PPC did not immediately respond to questions from the Journal of Commerce on whether it would allow APM Terminals to take over operational control of the terminals. PPC has operated the terminals at Balboa on the Pacific side of the canal and Cristobal on the Atlantic coast since 1997 following the award of an initial 25-year concession that was extended in 2021, deals the Supreme Court has now ruled unconstitutional. Hutchison had already agreed to sell the two terminals to a consortium of BlackRock’s Global Infrastructure Partners and Mediterranean Shipping Co. subsidiary Terminal Investments Limited (TiL) as part of a $22.8 billion sale of its 43 terminal operations worldwide. But the deal has run into opposition from Beijing over ties between US President Donald Trump and BlackRock leadership. The maritime authority did not say when APM Terminals would assume responsibility as temporary operator, how long its assignment would last or the process for appointing a new terminal operator. In a separate statement Friday, APM Terminals said it would begin “operations at the terminals in compliance with all legal formalities and procedures.” “This will only occur after the decision of the Supreme Court of Justice of Panama becomes final, a timeframe beyond the company’s control,” APMT said. The terminal operator said it “confirms its willingness” to temporarily assume operation of both terminals. “This aims to mitigate risks that could affect essential services for regional and global trade and to support Panama’s logistics hub,” it said. The maritime authority said Panama, as the owner of the ports, guarantees the operational continuity of the national port system, which it said were “proceeding normally, without interruption, and maintaining optimal levels of productivity, efficiency, and service quality for shipping lines and their clients.” <h3>ACP seeks developers for two new terminals </h3>The legal wrangle over PPC’s concession and APM Terminals interim appointment came as the Panama Canal Authority (ACP) announced Friday that it was asking international terminal operators to prequalify to develop two new container terminals at either end of the canal. Companies have to submit prequalification documents by April 8. The common-user terminals, estimated to cost a total of $2.6 billon, will be built in Corozal at the Pacific entrance of the canal, and Telfers lsland at the canal’s Atlantic entrance. APMT was one of the 12 terminal operators that had individual meetings in October with ACP officials to discuss the project. Others were Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, Terminal Investment Limited (TiL), ONE, and Evergreen. Several already run existing terminals. SSA Marine operates Manzanillo International Terminals, while Evergreen is concessionaire for Colon Container Terminal, both on the Atlantic side of the canal. Singapore’s PSA operates its Panama International Terminal on the Pacific Coast. The two new terminals are specifically aimed at boosting Panama’s annual transshipment capacity to between 5 million TEUs and 6 million TEUs and strengthening Panama’s position as a globally competitive intermodal hub. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Maersk’s APM Terminals on Friday was appointed the interim administrator of the Balboa and Cristobal terminals that bookend the Panama Canal after the country’s Supreme Court nullified the operating concessions long held by the Panama Ports Company, a subsidiary of Hutchinson Port Holdings. The Panama Maritime Authority said it hoped for an orderly and coordinated transition from Panama Ports to APMT, noting Hong Kong conglomerate CK Hutchison Holdings is a “globally recognized organization known for its strong corporate reputation.” “In this context, we trust in their constructive collaboration during this phase, for the benefit of the port system’s stability,” the maritime authority said in a statement announcing the Maersk takeover. This came a day after Panama Ports Company (PPC) angrily rejected the Supreme Court’s decision to cancel its concessions , saying the ruling “lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country.” PPC also warned it could take national and international legal action against the Panamanian government in response to the court decision, which it said was the latest development in an ongoing campaign that included “a range of surprise actions” targeting the terminal concessions and PPC. PPC did not immediately respond to questions from the Journal of Commerce on whether it would allow APM Terminals to take over operational control of the terminals. PPC has operated the terminals at Balboa on the Pacific side of the canal and Cristobal on the Atlantic coast since 1997 following the award of an initial 25-year concession that was extended in 2021, deals the Supreme Court has now ruled unconstitutional. Hutchison had already agreed to sell the two terminals to a consortium of BlackRock’s Global Infrastructure Partners and Mediterranean Shipping Co. subsidiary Terminal Investments Limited (TiL) as part of a $22.8 billion sale of its 43 terminal operations worldwide. But the deal has run into opposition from Beijing over ties between US President Donald Trump and BlackRock leadership. The maritime authority did not say when APM Terminals would assume responsibility as temporary operator, how long its assignment would last or the process for appointing a new terminal operator. In a separate statement Friday, APM Terminals said it would begin “operations at the terminals in compliance with all legal formalities and procedures.” “This will only occur after the decision of the Supreme Court of Justice of Panama becomes final, a timeframe beyond the company’s control,” APMT said. The terminal operator said it “confirms its willingness” to temporarily assume operation of both terminals. “This aims to mitigate risks that could affect essential services for regional and global trade and to support Panama’s logistics hub,” it said. The maritime authority said Panama, as the owner of the ports, guarantees the operational continuity of the national port system, which it said were “proceeding normally, without interruption, and maintaining optimal levels of productivity, efficiency, and service quality for shipping lines and their clients.” ACP seeks developers for two new terminals The legal wrangle over PPC’s concession and APM Terminals interim appointment came as the Panama Canal Authority (ACP) announced Friday that it was asking international terminal operators to prequalify to develop two new container terminals at either end of the canal. Companies have to submit prequalification documents by April 8. The common-user terminals, estimated to cost a total of $2.6 billon, will be built in Corozal at the Pacific entrance of the canal, and Telfers lsland at the canal’s Atlantic entrance. APMT was one of the 12 terminal operators that had individual meetings in October with ACP officials to discuss the project. Others were Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, Terminal Investment Limited (TiL), ONE, and Evergreen. Several already run existing terminals. SSA Marine operates Manzanillo International Terminals, while Evergreen is concessionaire for Colon Container Terminal, both on the Atlantic side of the canal. Singapore’s PSA operates its Panama International Terminal on the Pacific Coast. The two new terminals are specifically aimed at boosting Panama’s annual transshipment capacity to between 5 million TEUs and 6 million TEUs and strengthening Panama’s position as a globally competitive intermodal hub. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

Trans-Pacific

Marine terminals

International ports

Container Shipping News

APMT to run Hutchison’s Panama terminals on interim basis after court ruling 

<div class="phx-topic abstract-wrapper">The move comes after Spain turned away three US-flag ships and a Danish multipurpose vessel on the grounds they were carrying military cargo bound for Israel.</div>

The move comes after Spain turned away three US-flag ships and a Danish multipurpose vessel on the grounds they were carrying military cargo bound for Israel.

<div class="phx-topic">Spanish-flagged vessels could be looking at US fees of up to $2.3 million per voyage and bans from US ports as Washington doubles down on a probe prompted by Spain’s refusal of multiple US-flag ships and a Danish multipurpose vessel (MPV) delivering weapons and military cargo to Israel. The US Federal Maritime Commission (FMC) is considering industry comments through Feb. 20 after issuing a late-December notice requesting new information on whether Spain is creating conditions “unfavorable” to foreign trade. The FMC’s notice indicated that in November 2024, Spain barred three US-flag vessels that were operating under the US Maritime Administration’s (MARAD’s) Maritime Security Program, which supports the US Department of Defense during emergencies and wartime. According to the FMC, Spain turned the ships away on grounds they were carrying cargo to Israel. The FMC also cited policy changes the Spanish government adopted last September to limit military cargo shipments to Israel. “Spain’s recent announcement and information from multiple sources indicate that the basic conditions the commission initiated this investigation to address still exist and are likely creating general or special conditions unfavorable to shipping in US foreign commerce,” the FMC stated in the December notice. The three US-flagged ships were container vessels — the Maersk Denver, the Maersk Nysted, and the Maersk Seletar, which were denied access in Spain after departing from New York ports. The FMC’s investigation indicates that Spain also turned away a Danish MPV vessel, the Marianne Danica, in May 2024 on grounds that it was transporting weapons to Israel. Spanish newspaper El País reported that the ship was carrying 27 tons of explosive material from Chennai in India to the port of Haifa in Israel. Both container and multipurpose vessels are used to transport weapons and military cargo. MPVs can carry advanced weaponry as well as roll-on/roll-off military equipment such as tanks and armored vehicles. <h3>Initial probe launched in December 2024 </h3>The FMC launched an initial investigation in December 2024 and received over 8,000 comments, many of which related to respondents’ positions on the Israel-Hamas conflict. The commission requested a second round of public comments after the Spanish government last September announced formal measures to halt the flow of certain cargo bound to or from Israel. The measures include banning ships and aircraft transporting weapons to Israel and barring tankers carrying fuel for the Israeli military from using Spanish ports and airspace. The FMC is collecting public input “on whether Spain is creating general or special conditions unfavorable to shipping in foreign trade,” and if so, what actions the agency should take in response. Among those actions, the FMC said it could impose fees of up to $2.3 million per voyage on Spanish-flag ships calling US ports, restrict voyages to or from US ports, and limit cargo types and amounts. The commission could also order the Department of Homeland Security to detain, refuse, and fine vessels. The FMC’s inquiry is part of a broader overall effort by the agency to flex its muscle and effect changes that could reshape global maritime policy. In March 2025, the FMC launched an investigation into international maritime chokepoints, which the commission cited as a potential threat to US security. Last May, the FMC initiated an inquiry into whether foreign countries’ flagging practices, including “flags of convenience,” are creating barriers to US trade. The FMC has remained relatively silent on those investigations since then, but both remain active. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

Spanish-flagged vessels could be looking at US fees of up to $2.3 million per voyage and bans from US ports as Washington doubles down on a probe prompted by Spain’s refusal of multiple US-flag ships and a Danish multipurpose vessel (MPV) delivering weapons and military cargo to Israel. The US Federal Maritime Commission (FMC) is considering industry comments through Feb. 20 after issuing a late-December notice requesting new information on whether Spain is creating conditions “unfavorable” to foreign trade. The FMC’s notice indicated that in November 2024, Spain barred three US-flag vessels that were operating under the US Maritime Administration’s (MARAD’s) Maritime Security Program, which supports the US Department of Defense during emergencies and wartime. According to the FMC, Spain turned the ships away on grounds they were carrying cargo to Israel. The FMC also cited policy changes the Spanish government adopted last September to limit military cargo shipments to Israel. “Spain’s recent announcement and information from multiple sources indicate that the basic conditions the commission initiated this investigation to address still exist and are likely creating general or special conditions unfavorable to shipping in US foreign commerce,” the FMC stated in the December notice. The three US-flagged ships were container vessels — the Maersk Denver, the Maersk Nysted, and the Maersk Seletar, which were denied access in Spain after departing from New York ports. The FMC’s investigation indicates that Spain also turned away a Danish MPV vessel, the Marianne Danica, in May 2024 on grounds that it was transporting weapons to Israel. Spanish newspaper El País reported that the ship was carrying 27 tons of explosive material from Chennai in India to the port of Haifa in Israel. Both container and multipurpose vessels are used to transport weapons and military cargo. MPVs can carry advanced weaponry as well as roll-on/roll-off military equipment such as tanks and armored vehicles. Initial probe launched in December 2024 The FMC launched an initial investigation in December 2024 and received over 8,000 comments, many of which related to respondents’ positions on the Israel-Hamas conflict. The commission requested a second round of public comments after the Spanish government last September announced formal measures to halt the flow of certain cargo bound to or from Israel. The measures include banning ships and aircraft transporting weapons to Israel and barring tankers carrying fuel for the Israeli military from using Spanish ports and airspace. The FMC is collecting public input “on whether Spain is creating general or special conditions unfavorable to shipping in foreign trade,” and if so, what actions the agency should take in response. Among those actions, the FMC said it could impose fees of up to $2.3 million per voyage on Spanish-flag ships calling US ports, restrict voyages to or from US ports, and limit cargo types and amounts. The commission could also order the Department of Homeland Security to detain, refuse, and fine vessels. The FMC’s inquiry is part of a broader overall effort by the agency to flex its muscle and effect changes that could reshape global maritime policy. In March 2025, the FMC launched an investigation into international maritime chokepoints, which the commission cited as a potential threat to US security. Last May, the FMC initiated an inquiry into whether foreign countries’ flagging practices, including “flags of convenience,” are creating barriers to US trade. The FMC has remained relatively silent on those investigations since then, but both remain active. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

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FMC weighs hefty fees, port bans for Spanish vessels

<div class="phx-topic abstract-wrapper">CEO Mark Rourke said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates.</div>

CEO Mark Rourke said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates.

<div class="phx-topic">Schneider National was disappointed with freight demand in the fourth quarter but remains hopeful that regulatory crackdowns in the trucking industry will pull out enough supply in 2026 to end the freight recession. Schneider CEO Mark Rourke said during the company’s fourth-quarter earnings call Thursday the intermodal provider was “not satisfied” with its results, which included a more than 30% drop in net income. But he said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates. The US Department of Transportation (USDOT) has been pressuring states to cancel non-domiciled commercial driver’s licenses for immigrants with expired or invalid work authorizations and those seeking asylum. It has also taken drivers out of service who cannot demonstrate the ability to read and understand English and shut down driving schools that do not rigorously train students before qualifying them to operate a rig. “The industry is already feeling the impact of supply rationalization related to regulatory actions in areas such as non-domiciled CDLs, English language proficiency, and driver school certifications,” Rourke said. “We expect capacity attrition to continue to ramp up, and we continue to believe the impact is likely to be greater than what we saw from the electronic logging mandate in 2017.” Rourke, however, said the USDOT crackdowns will tighten available truck capacity over quarters, not months. He also said economic drivers of freight demand must recover in 2026 to truly flip the market toward carriers. “The trajectory of consumer spending, the impacts from the [Republican-led appropriations bill], and interest rate policy all have the potential to significantly influence the timing and magnitude of improvement in market conditions,” he said. Schneider grew revenue 4.5% year over year to $1.4 billion during the fourth quarter. But net income of $22.1 million was down 32% from the year-ago quarter. Schneider reported fourth-quarter truckload revenues of $610 million, up nearly $50 million compared with the prior year, driven by a 21% increase in dedicated volume. Logistics revenues were $329.3 million, up 2% compared with the same quarter in 2024. <h3>Intermodal volume gains </h3>Results in the trucking and logistics divisions were propped by the integration of the Cowan Systems business. Schneider bought the Baltimore-based trucking company for $390 million, with the deal closing at the end of 2024. Cowan’s business lines included one-way truckload, dedicated truckload, and logistics brokerage. Schneider’s intermodal revenues in the fourth quarter were $268.2 million, down 3% from the year-ago period and driven by a 5% decrease in revenue per order. Intermodal volume increased 3%, suggesting Schneider was able to take market share from competitor J.B. Hunt Transport Services, which dropped 2% year over year in the fourth quarter. Schneider, meanwhile, also announced Rourke would transition to the role of executive chairman effective July 1, 2026, and that longtime company executive Jim Filter will become the new CEO. Filter will become only the fifth CEO in the history of the company, which has been around since 1935. Filter is currently the executive vice president and group president of transportation logistics, a position he has held since 2022. He ran Schneider’s intermodal division prior to that. “Despite a challenging market in 2025, our actions throughout the year have strengthened our foundation and positioned us to benefit as conditions continue to improve,” Filter said on Thursday’s call. Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>.</div>

Schneider National was disappointed with freight demand in the fourth quarter but remains hopeful that regulatory crackdowns in the trucking industry will pull out enough supply in 2026 to end the freight recession. Schneider CEO Mark Rourke said during the company’s fourth-quarter earnings call Thursday the intermodal provider was “not satisfied” with its results, which included a more than 30% drop in net income. But he said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates. The US Department of Transportation (USDOT) has been pressuring states to cancel non-domiciled commercial driver’s licenses for immigrants with expired or invalid work authorizations and those seeking asylum. It has also taken drivers out of service who cannot demonstrate the ability to read and understand English and shut down driving schools that do not rigorously train students before qualifying them to operate a rig. “The industry is already feeling the impact of supply rationalization related to regulatory actions in areas such as non-domiciled CDLs, English language proficiency, and driver school certifications,” Rourke said. “We expect capacity attrition to continue to ramp up, and we continue to believe the impact is likely to be greater than what we saw from the electronic logging mandate in 2017.” Rourke, however, said the USDOT crackdowns will tighten available truck capacity over quarters, not months. He also said economic drivers of freight demand must recover in 2026 to truly flip the market toward carriers. “The trajectory of consumer spending, the impacts from the [Republican-led appropriations bill], and interest rate policy all have the potential to significantly influence the timing and magnitude of improvement in market conditions,” he said. Schneider grew revenue 4.5% year over year to $1.4 billion during the fourth quarter. But net income of $22.1 million was down 32% from the year-ago quarter. Schneider reported fourth-quarter truckload revenues of $610 million, up nearly $50 million compared with the prior year, driven by a 21% increase in dedicated volume. Logistics revenues were $329.3 million, up 2% compared with the same quarter in 2024. Intermodal volume gains Results in the trucking and logistics divisions were propped by the integration of the Cowan Systems business. Schneider bought the Baltimore-based trucking company for $390 million, with the deal closing at the end of 2024. Cowan’s business lines included one-way truckload, dedicated truckload, and logistics brokerage. Schneider’s intermodal revenues in the fourth quarter were $268.2 million, down 3% from the year-ago period and driven by a 5% decrease in revenue per order. Intermodal volume increased 3%, suggesting Schneider was able to take market share from competitor J.B. Hunt Transport Services, which dropped 2% year over year in the fourth quarter. Schneider, meanwhile, also announced Rourke would transition to the role of executive chairman effective July 1, 2026, and that longtime company executive Jim Filter will become the new CEO. Filter will become only the fifth CEO in the history of the company, which has been around since 1935. Filter is currently the executive vice president and group president of transportation logistics, a position he has held since 2022. He ran Schneider’s intermodal division prior to that. “Despite a challenging market in 2025, our actions throughout the year have strengthened our foundation and positioned us to benefit as conditions continue to improve,” Filter said on Thursday’s call. Contact Dan Ronan at contactdanronan@gmail.com .

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