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<div class="phx-topic abstract-wrapper"><p>There are some things that really should be easy, but they're not. In our personal lives, we should </p></div>

There are some things that really should be easy, but they're not. In our personal lives, we should

<div><p>There are some things that really should be easy, but they're not. In our personal lives, we should be able to program the VCR, keep track of the car keys and get to church on time, but they're just plain harder than they seem. So we find "work-arounds," and somehow get by from day to day.</p><p></p><p></p><p>Managing contracts with suppliers of products and services to our companies fits into this category as well - but with more significant consequences. According to Aberdeen Group, ineffective control and contract management cost businesses $153 billion per year in missed savings opportunities. Now that's a...

There are some things that really should be easy, but they're not. In our personal lives, we should be able to program the VCR, keep track of the car keys and get to church on time, but they're just plain harder than they seem. So we find "work-arounds," and somehow get by from day to day. Managing contracts with suppliers of products and services to our companies fits into this category as well - but with more significant consequences. According to Aberdeen Group, ineffective control and contract management cost businesses $153 billion per year in missed savings opportunities. Now that's a lot of car keys. What follows are some common situations that involve contract management issues. See if they sound familiar to you and your company. -- When do the outbound shipping agreements with different carriers expire - and what happens to our rates if we don't act to renew or rebid them? I hope we haven't already passed the window of opportunity and are stuck with current pricing, plus automatic escalators. -- Where is that standard confidentiality and indemnification language we are supposed to use for consulting and services agreements? I guess I'll have to wing it and rewrite it. -- How many contracts do we have for equipment maintenance, and how do the provisions compare with each other? If we could consolidate them, we'd likely gain some sort of pricing improvement, but that's impossible if we don't even know what's out there now. -- Where is that new raw material contract that I signed off on three weeks ago? It's apparently lost somewhere in someone's inbox, and we need to start ordering parts next week. -- Is there really a minimum order quantity on those spare parts, and a big upcharge for rush shipment? That's what the supplier says, but I can't find the written agreement (if we even have one) to verify it. -- What's the volume threshold for obtaining rebates or better pricing on our electrical component purchases? I have a big production order planned, and maybe I should buy all the material before the end of the year to qualify. But I don't know where to turn for details on how the program works and whether it is desirable, so I guess I'll just skip it. All told, purchases from external suppliers comprise 50 to 90 percent of your total costs. A typical Fortune 1000 company has agreements with probably 50,000 suppliers. And they are often just not managed all that well. We all like to focus our attention on high-profile, highly strategic issues, but there is substantial improvement opportunity through better management of these dull and boring, "administrative" type of activities. How do these potential benefits sound to you: -- Better pricing. -- Better payment terms. -- Improved compliance with existing contracts. -- Decreased liability exposure. -- Added rebates and discounts. -- More efficient use of our time. According to Tim Minihan, Aberdeen Group's senior vice president for supply-chain research, "companies that focus on improvement in contracting operations can cut total supply-chain costs by 7 percent and increase revenue by 2 percent on average." I know what you're thinking: "We don't have any central database of contracts. In our new decentralized structure, just about anybody can set up their own contracts. Legal staff has been downsized or outsourced." I agree. There has to be a better way - and I think there is. A new generation of software tools has been developed to specifically address the issues. The new products have standard templates for creating contracts and other supplier documentation; they keep track of contracts that are in process, and file all completed ones for easy reference later; they flag upcoming milestones and dates when specific actions are needed; they permit research and analysis of legal and financial terms - and enable firms to better monitor compliance by suppliers (and customers). "We're finding that the return on investment for our Contract Manager solution is averaging over 300 percent," says Nathanael Lentz, chief executive of Verticalnet, a supplier of procurement and supply-chain-related software and services. "While increased compliance and better discounts are the largest direct savings impacts, customers say that getting a better handle on the whole contracting area is also a major benefit that simplifies their lives and allows them to be more productive." I don't know about you, but simplifying my life and being more productive sound like great objectives. I wonder if I can use this stuff to keep track of my car keys. Scott Elliff is president of Capital Consulting & Management Inc., which works with clients on supply-chain performance. He can be contacted at (434) 409-4378, or at scott_elliff@ccmiservices.com .

Managing the beast

<div class="phx-topic abstract-wrapper"><p>The strength of holiday retail sales in the final month of 2025 and inventory levels approaching the Lunar New Year factory shutdowns in February will be the major factors determining the extent of pricing power in trans-Pacific contract talks. </p></div>

The strength of holiday retail sales in the final month of 2025 and inventory levels approaching the Lunar New Year factory shutdowns in February will be the major factors determining the extent of pricing power in trans-Pacific contract talks.

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<div class="phx-topic"><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135206_0.1.jpg"></img></div><p><b>The big picture:</b> A weakening US economy, depressed imports due to continued tariff uncertainty and plummeting spot rates in late 2025 will weigh heavily in favor of shippers during trans-Pacific service contract negotiations this spring.  </p><p><b>A look back:</b> Midsize importers and their core carriers last spring signed 2025–26 service contracts with rates of around $2,000 per FEU from Asia to the US West Coast and $3,000 per FEU to the East Coast. Market conditions in the Asia–US trade in late 2024 and early 2025 — when the largest retailers typically begin their contract negotiations — were markedly different than today. Fueled by frontloading of seasonal merchandise to get ahead of higher tariffs threatened by the Trump administration, monthly US imports from Asia were increasing by an average of roughly 15% year over year, according to data from PIERS, a <i>Journal of Commerce</i> sister product within S&amp;P Global. Average spot rates from Asia to the US West Coast eclipsed $5,000 per FEU in January, according to Platts, also part of S&amp;P Global. In the environment of surging spot rates and tight vessel space, and with importers anticipating continued strength in imports in 2025 and prioritizing locking in guarantees of vessel space through their minimum quantity commitments (MQCs), carriers generally had the upper hand in pricing negotiations. The fixed rates in service contracts are normally lower than the spot rates for much of the year, but most carriers aim to fill at least half of their vessel space via MQCs from their largest customers. Service contract rates paid by midsize and smaller importers, and by forwarders, are generally several hundred dollars per FEU higher than those paid by the largest retailers. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="2b46cea3-3ad9-4793-8381-ca1cdffe6797"></dynamic-object></div><p><b>A look ahead:</b> Rates in 2026–27 service contracts, most of which will run from May 1, 2026, through April 30, 2027, will most likely be lower than in the previous contract, but how much lower remains to be seen. Outside of a brief fillip in June that coincided with a spike in spot rates, average pricing from Asia to the US West Coast in long-term contracts followed a downward trajectory all year, according to rate benchmarking platform Xeneta. Rising inflation, growing unemployment, weak consumer sentiment and persistent tariff uncertainty point to continued declines in US freight demand. And with vessel space abundant, importers will likely hold off on signing service contracts for as long as they can. Inventory replenishment after the Lunar New Year holiday in Asia, which begins Feb. 17, could boost volumes and help carriers keep spot rates from collapsing. But new, larger vessels that will be deployed in the trans-Pacific and the possibility of a return to the Suez Canal could add effective capacity to the trade, giving importers additional leverage in contract rate talks. </p><p><b>The next inflection:</b> The strength of holiday retail sales in the final month of 2025 and inventory levels approaching the Lunar New Year factory shutdowns in February will be the major factors determining pricing power in trans-Pacific contract talks. If replenishment demand and spring volumes cause vessel space to tighten, importers could again prioritize MQCs, rather than extracting the lowest possible price. </p><p><i>Contact Bill Mongelluzzo at </i><a href="mailto:bill.mongelluzzo@spglobal.com"><i>bill.mongelluzzo@spglobal.com</i></a><i>.</i> </p></div>

The big picture: A weakening US economy, depressed imports due to continued tariff uncertainty and plummeting spot rates in late 2025 will weigh heavily in favor of shippers during trans-Pacific service contract negotiations this spring. A look back: Midsize importers and their core carriers last spring signed 2025–26 service contracts with rates of around $2,000 per FEU from Asia to the US West Coast and $3,000 per FEU to the East Coast. Market conditions in the Asia–US trade in late 2024 and early 2025 — when the largest retailers typically begin their contract negotiations — were markedly different than today. Fueled by frontloading of seasonal merchandise to get ahead of higher tariffs threatened by the Trump administration, monthly US imports from Asia were increasing by an average of roughly 15% year over year, according to data from PIERS, a Journal of Commerce sister product within S&P Global. Average spot rates from Asia to the US West Coast eclipsed $5,000 per FEU in January, according to Platts, also part of S&P Global. In the environment of surging spot rates and tight vessel space, and with importers anticipating continued strength in imports in 2025 and prioritizing locking in guarantees of vessel space through their minimum quantity commitments (MQCs), carriers generally had the upper hand in pricing negotiations. The fixed rates in service contracts are normally lower than the spot rates for much of the year, but most carriers aim to fill at least half of their vessel space via MQCs from their largest customers. Service contract rates paid by midsize and smaller importers, and by forwarders, are generally several hundred dollars per FEU higher than those paid by the largest retailers. A look ahead: Rates in 2026–27 service contracts, most of which will run from May 1, 2026, through April 30, 2027, will most likely be lower than in the previous contract, but how much lower remains to be seen. Outside of a brief fillip in June that coincided with a spike in spot rates, average pricing from Asia to the US West Coast in long-term contracts followed a downward trajectory all year, according to rate benchmarking platform Xeneta. Rising inflation, growing unemployment, weak consumer sentiment and persistent tariff uncertainty point to continued declines in US freight demand. And with vessel space abundant, importers will likely hold off on signing service contracts for as long as they can. Inventory replenishment after the Lunar New Year holiday in Asia, which begins Feb. 17, could boost volumes and help carriers keep spot rates from collapsing. But new, larger vessels that will be deployed in the trans-Pacific and the possibility of a return to the Suez Canal could add effective capacity to the trade, giving importers additional leverage in contract rate talks. The next inflection: The strength of holiday retail sales in the final month of 2025 and inventory levels approaching the Lunar New Year factory shutdowns in February will be the major factors determining pricing power in trans-Pacific contract talks. If replenishment demand and spring volumes cause vessel space to tighten, importers could again prioritize MQCs, rather than extracting the lowest possible price. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Shippers to regain leverage in trans-Pacific contract negotiations

<div class="phx-topic abstract-wrapper"><p>Those factors will lift volumes, but true organic expansion depends on a recovery in the truckload market. </p></div>

Those factors will lift volumes, but true organic expansion depends on a recovery in the truckload market.

<div class="phx-topic"><p><i>The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook.</i> </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135205_0.1.jpg"></img></div><p><b>The big picture:</b> The defining storyline of 2026 for North American intermodal rail will be how federal regulators respond to the proposed merger of Union Pacific Railroad (UP) and Norfolk Southern Railway (NS). The deal has already pushed competing railroads to launch new intermodal lanes and accelerate transit times, ripple effects that could set the stage for measurable volume gains, even without a spike in demand. </p><p><b>A look back:</b> The proposed $85 billion UP-NS transaction would create the first single-line transcontinental US railroad. And before regulators even had a chance to assess the potential competitive effects of the deal, the July 29 announcement triggered similar moves from the other US Class I railroads. Just three weeks later, BNSF Railway and CSX Transportation unveiled new “coast-to-coast” long-haul lanes — including Los Angeles-Charlotte, North Carolina; Los Angeles-Jacksonville, Florida; and Phoenix–Atlanta — along with faster transit times on nine additional routes between Los Angeles and the Ohio Valley and US Northeast. The UP-NS deal also resulted in a leadership shakeup at CSX, where the board fired CEO Joe Hinrichs amid pressure from an activist investor who demanded the eastern railroad pursue its own merger with BNSF, Canadian National Railway or Canadian Pacific Kansas City. UP and NS launched their first joint intermodal service, a route that connects the US West Coast, Mexico and Texas with Louisville in October. During contract bid season, UP captured meaningful market share from its West Coast competitor, BNSF, boosting volumes for Hub Group and Schneider National and dragging J.B. Hunt’s shipment counts lower. It was a year of posturing, positioning and railroads racing not to be left behind. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="61898d91-8751-4681-a545-1f386dd7ac78"></dynamic-object></div><p><b>A look ahead:</b> Domestic intermodal could see further growth this year — total 53-foot volumes rose 3.5% year over year through October, according to the Intermodal Association of North America (IANA) — thanks to the new lanes and improved transit times railroads introduced in 2025, rather than a macroeconomic catalyst driving demand. Most shippers that spoke with the <i>Journal of Commerce</i> believe rates in early first-quarter intermodal contracts will be mostly flat compared with the previous year, with some increases on outbound lanes from the West Coast, particularly Southern California. After losing market share to its competitors, J.B. Hunt could become more aggressive in its pricing, especially during peak season. And as J.B. Hunt shifts freight onto BNSF-CSX joint services, Hub Group and Swift Intermodal will compete for new slots on NS trains. Additional BNSF-CSX single-line opportunities to the Northeast will become available when double-stacking service through Baltimore begins in the spring. If this prompts J.B. Hunt to shift more of its volumes to CSX, it will create even more opportunities for Hub Group and Swift. The US Surface Transportation Board (STB) likely won’t issue its final decision on the UP-NS transaction until 2027, but one former board member thinks regulators are “leaning more toward approval.” Citing President Donald Trump’s influence and the political alignment of the current board — with a third Republican pending Senate confirmation and just one Democrat — Daniel Elliott III, who served two nonconsecutive terms as STB chairman between 2009 and 2017, said it will be “very difficult” for members to vote against the merger if the administration continues to support it publicly. </p><p><b>The next inflection:</b> New lanes and faster service will lift volumes, but true organic expansion depends on a recovery in the truckload market. Some shippers only increase their use of intermodal rail when they are struggling to secure over-the-road capacity, which remains abundant. Until US manufacturing output and other major sources of surface freight such as new home construction improve and truckload capacity tightens, intermodal volumes and rates will grow only modestly. </p><p><i>Contact Ari Ashe at </i><a href="mailto:ari.ashe@spglobal.com"><i>ari.ashe@spglobal.com</i></a><i>.</i> </p></div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: The defining storyline of 2026 for North American intermodal rail will be how federal regulators respond to the proposed merger of Union Pacific Railroad (UP) and Norfolk Southern Railway (NS). The deal has already pushed competing railroads to launch new intermodal lanes and accelerate transit times, ripple effects that could set the stage for measurable volume gains, even without a spike in demand. A look back: The proposed $85 billion UP-NS transaction would create the first single-line transcontinental US railroad. And before regulators even had a chance to assess the potential competitive effects of the deal, the July 29 announcement triggered similar moves from the other US Class I railroads. Just three weeks later, BNSF Railway and CSX Transportation unveiled new “coast-to-coast” long-haul lanes — including Los Angeles-Charlotte, North Carolina; Los Angeles-Jacksonville, Florida; and Phoenix–Atlanta — along with faster transit times on nine additional routes between Los Angeles and the Ohio Valley and US Northeast. The UP-NS deal also resulted in a leadership shakeup at CSX, where the board fired CEO Joe Hinrichs amid pressure from an activist investor who demanded the eastern railroad pursue its own merger with BNSF, Canadian National Railway or Canadian Pacific Kansas City. UP and NS launched their first joint intermodal service, a route that connects the US West Coast, Mexico and Texas with Louisville in October. During contract bid season, UP captured meaningful market share from its West Coast competitor, BNSF, boosting volumes for Hub Group and Schneider National and dragging J.B. Hunt’s shipment counts lower. It was a year of posturing, positioning and railroads racing not to be left behind. A look ahead: Domestic intermodal could see further growth this year — total 53-foot volumes rose 3.5% year over year through October, according to the Intermodal Association of North America (IANA) — thanks to the new lanes and improved transit times railroads introduced in 2025, rather than a macroeconomic catalyst driving demand. Most shippers that spoke with the Journal of Commerce believe rates in early first-quarter intermodal contracts will be mostly flat compared with the previous year, with some increases on outbound lanes from the West Coast, particularly Southern California. After losing market share to its competitors, J.B. Hunt could become more aggressive in its pricing, especially during peak season. And as J.B. Hunt shifts freight onto BNSF-CSX joint services, Hub Group and Swift Intermodal will compete for new slots on NS trains. Additional BNSF-CSX single-line opportunities to the Northeast will become available when double-stacking service through Baltimore begins in the spring. If this prompts J.B. Hunt to shift more of its volumes to CSX, it will create even more opportunities for Hub Group and Swift. The US Surface Transportation Board (STB) likely won’t issue its final decision on the UP-NS transaction until 2027, but one former board member thinks regulators are “leaning more toward approval.” Citing President Donald Trump’s influence and the political alignment of the current board — with a third Republican pending Senate confirmation and just one Democrat — Daniel Elliott III, who served two nonconsecutive terms as STB chairman between 2009 and 2017, said it will be “very difficult” for members to vote against the merger if the administration continues to support it publicly. The next inflection: New lanes and faster service will lift volumes, but true organic expansion depends on a recovery in the truckload market. Some shippers only increase their use of intermodal rail when they are struggling to secure over-the-road capacity, which remains abundant. Until US manufacturing output and other major sources of surface freight such as new home construction improve and truckload capacity tightens, intermodal volumes and rates will grow only modestly. Contact Ari Ashe at ari.ashe@spglobal.com .

Domestic intermodal to benefit from new lanes, faster service in 2026

<div class="phx-topic abstract-wrapper"><p>The change, effective Jan. 2, allows importers to digitally designate customs brokers to receive bills, checks and liquidation notices on behalf of clients. </p></div>

The change, effective Jan. 2, allows importers to digitally designate customs brokers to receive bills, checks and liquidation notices on behalf of clients.

<div class="phx-topic"><p>US Customs and Border Protection (CBP) as of Friday will allow importers to immediately assign a customs broker or other representative as a so-called “notify party” on all CBP notices through the agency’s Automated Commercial Environment (ACE) portal. </p><p>The change will allow importers to address communication from CBP around key issues such as bills, refunds or liquidation notices in a timelier manner, said Lori Mullins, director of operations at Houston customs broker Rogers &amp; Brown. </p><p>Mullins said it’s common for CBP to send checks, notices and mail only to large importers, and not to the notify parties assigned by those importers. </p><p>“And they end up getting lost on someone’s desk who doesn’t understand where they belong,” she said. “Because CBP documents, letters, and checks don’t have a contact name attached to them, they could end up on an [accounts receivable] desk or a receptionist to determine the correct [recipient]. </p><p>“With tight deadlines for response or missed opportunities altogether to reply to a CBP inquiry that could result in increased duties, having a broker who can easily get them to the importer to manage the process is sometimes very helpful,” Mullins added. </p><p>The process change allows importers to authorize notify parties “in real-time” as of Jan. 2, according to a Dec. 22 ACE notice. </p><h3>‘Huge step forward’ </h3><p>Mullins, who also serves as president of the Houston Customs Brokers &amp; Freight Forwarders Association, said the process to add notify parties — via a CBP 4811 form — has long been fraught. </p><p>“When CBP moved into ACE, the 4811 process was broken and inconsistent,” she said. “Even if a 4811 was sent to CBP, CBP would not manage the process correctly and fail to follow Importer 4811 instructions with entries because there was no electronic means for CBP to capture the notify party.” </p><p>Mullins said the ability for importers to add notify parties digitally through ACE is still in its early stage, but is a “huge step forward for the importing community.” </p><p>“It gives the decisions regarding how these documents are handled truly back to the importer and holds CBP accountable for following them by putting the data in ACE connected to the importer records,” she said. </p><p><i>Contact Eric Johnson at </i><a href="mailto:eric.johnson@spglobal.com"><i>eric.johnson@spglobal.com</i></a><i>.</i> </p></div>

US Customs and Border Protection (CBP) as of Friday will allow importers to immediately assign a customs broker or other representative as a so-called “notify party” on all CBP notices through the agency’s Automated Commercial Environment (ACE) portal. The change will allow importers to address communication from CBP around key issues such as bills, refunds or liquidation notices in a timelier manner, said Lori Mullins, director of operations at Houston customs broker Rogers & Brown. Mullins said it’s common for CBP to send checks, notices and mail only to large importers, and not to the notify parties assigned by those importers. “And they end up getting lost on someone’s desk who doesn’t understand where they belong,” she said. “Because CBP documents, letters, and checks don’t have a contact name attached to them, they could end up on an [accounts receivable] desk or a receptionist to determine the correct [recipient]. “With tight deadlines for response or missed opportunities altogether to reply to a CBP inquiry that could result in increased duties, having a broker who can easily get them to the importer to manage the process is sometimes very helpful,” Mullins added. The process change allows importers to authorize notify parties “in real-time” as of Jan. 2, according to a Dec. 22 ACE notice. ‘Huge step forward’ Mullins, who also serves as president of the Houston Customs Brokers & Freight Forwarders Association, said the process to add notify parties — via a CBP 4811 form — has long been fraught. “When CBP moved into ACE, the 4811 process was broken and inconsistent,” she said. “Even if a 4811 was sent to CBP, CBP would not manage the process correctly and fail to follow Importer 4811 instructions with entries because there was no electronic means for CBP to capture the notify party.” Mullins said the ability for importers to add notify parties digitally through ACE is still in its early stage, but is a “huge step forward for the importing community.” “It gives the decisions regarding how these documents are handled truly back to the importer and holds CBP accountable for following them by putting the data in ACE connected to the importer records,” she said. Contact Eric Johnson at eric.johnson@spglobal.com .

CBP to let importers tie ‘notify parties’ to key portal communications

<div class="phx-topic abstract-wrapper"><p>The Taiwanese carrier said the box orders were split between three different suppliers, including its own manufacturing subsidiary.</p></div>

The Taiwanese carrier said the box orders were split between three different suppliers, including its own manufacturing subsidiary.

<div class="phx-topic"><p>Taiwan’s Evergreen Marine is paying $174 million to buy 52,000 dry freight and reefer containers, the carrier said in a Taiwan stock exchange filing. </p><p>Evergreen said the container orders were split between three different suppliers, including its own manufacturing subsidiary Evergreen Heavy Industrial Corporation based in Malaysia. </p><p>The largest of the three orders, worth almost $65.6 million, was placed with Dong Fang International Container (Hong Kong) for 12,000 dry freight and 7,000 reefer containers. </p><p>Evergreen Heavy Industrial Corporation (Malaysia) secured a $57.3 million contract to supply 18,000 containers, although Evergreen did not specify the size or type of boxes. </p><p>The final order, valued at $51.2 million, was awarded to China’s Guangdong Fuwa Equipment Manufacturing Company for 12,000 dry cargo and 3,000 reefer containers. </p><p>The purchase of the containers coincides with a <a href="https://www.joc.com/article/evergreen-says-will-spend-almost-3-billion-on-14-new-lng-fueled-ships-6114739">significant fleet expansion by Evergreen</a>, which is set to take delivery of 846,000 TEUs of additional shipping capacity through 2030. </p><h3>Weak outlook for 2026 </h3><p>The container orders from Evergreen come as Hong Kong-listed box maker Singamas Container Holdings and maritime consultancy Drewry have predicted a weaker outlook for the container market after output peaked at 8.3 million TEUs in 2024. </p><p>The impact from the overproduction of dry freight containers in 2024 “is becoming increasingly apparent, with supply significantly outstripping demand, resulting in selling prices trending downward,” Singamas said in a market commentary. </p><p>“Additionally, overcapacity in the container shipping market will exert downward pressure on freight rates and container demand, which will be exacerbated once the Red Sea crisis is resolved,” Singamas added. </p><p>Drewry predicted container production will slump to 1.8 million TEUs in 2026, down from a forecast of 4.9 million TEUs this year, according to the consultancy’s third-quarter container equipment report. Production to 2029 will be primarily driven by replacement demand, the report added. </p><p>The average price for a 20-foot container is set to slip to about $1,500 next year, down from $1,680 this year and about $2,100 in 2024, according to the Drewry forecast. </p><p><i>Contact Keith Wallis at </i><a href="mailto:keithwallis@hotmail.com"><i>keithwallis@hotmail.com</i></a>.</p></div>

Taiwan’s Evergreen Marine is paying $174 million to buy 52,000 dry freight and reefer containers, the carrier said in a Taiwan stock exchange filing. Evergreen said the container orders were split between three different suppliers, including its own manufacturing subsidiary Evergreen Heavy Industrial Corporation based in Malaysia. The largest of the three orders, worth almost $65.6 million, was placed with Dong Fang International Container (Hong Kong) for 12,000 dry freight and 7,000 reefer containers. Evergreen Heavy Industrial Corporation (Malaysia) secured a $57.3 million contract to supply 18,000 containers, although Evergreen did not specify the size or type of boxes. The final order, valued at $51.2 million, was awarded to China’s Guangdong Fuwa Equipment Manufacturing Company for 12,000 dry cargo and 3,000 reefer containers. The purchase of the containers coincides with a significant fleet expansion by Evergreen , which is set to take delivery of 846,000 TEUs of additional shipping capacity through 2030. Weak outlook for 2026 The container orders from Evergreen come as Hong Kong-listed box maker Singamas Container Holdings and maritime consultancy Drewry have predicted a weaker outlook for the container market after output peaked at 8.3 million TEUs in 2024. The impact from the overproduction of dry freight containers in 2024 “is becoming increasingly apparent, with supply significantly outstripping demand, resulting in selling prices trending downward,” Singamas said in a market commentary. “Additionally, overcapacity in the container shipping market will exert downward pressure on freight rates and container demand, which will be exacerbated once the Red Sea crisis is resolved,” Singamas added. Drewry predicted container production will slump to 1.8 million TEUs in 2026, down from a forecast of 4.9 million TEUs this year, according to the consultancy’s third-quarter container equipment report. Production to 2029 will be primarily driven by replacement demand, the report added. The average price for a 20-foot container is set to slip to about $1,500 next year, down from $1,680 this year and about $2,100 in 2024, according to the Drewry forecast. Contact Keith Wallis at keithwallis@hotmail.com .

Evergreen to invest $174 million on new containers 

<div class="phx-topic abstract-wrapper"><p>Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure.</p></div>

Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure.

<div class="phx-topic"><p><i>The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook.</i> </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135205_0.1.jpg"></img></div><p><b>The big picture:</b> After two years of sailing around southern Africa to avoid the risk of Houthi attacks in the Red Sea, Asia-Europe carriers could return to Suez Canal transits in 2026, possibly even in the first half. Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure. </p><p><b>A look back:</b> Similar to 2024, the Asia-Europe peak season came earlier than usual in 2025, with volumes ramping up in early May rather than the typical June start. Fueled by concerns over persistent port congestion in Europe — on top of extended transit times due to diversions away from the Suez Canal — importers rushed to build inventory for summer sales. Cargo owners had already baked into their supply chains the additional two weeks ships take to sail around southern Africa, but planning for port congestion proved more difficult as bottlenecks shifted dynamically among European terminals, sometimes within the same port. The strong demand continued into the fall, with Asia-Europe container volumes rising on a year-over-year basis for seven straight months from March through September, according to data from Container Trades Statistics (CTS). “We haven’t seen growth like that on the Far East westbound trade since before the global financial crisis,” Michael Aldwell, executive vice president of sea logistics at forwarder Kuehne + Nagel, told the <i>Journal of Commerce</i> in late November. The early peak saw spot rates spike in late May and early June before gradually declining through October. As end-of-year contract talks between shippers and carriers neared, carriers imposed a series of fortnightly freight-all-kinds rate increases from Oct. 1. Although not fully accepted by the market, the rate hikes, along with aggressive blank sailings, boosted average pricing from Asia to North Europe and the Mediterranean by 92.3% and 150%, respectively, from early October to mid-December, according to Platts, a <i>Journal of Commerce</i> sister product within S&amp;P Global. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="dd9a04f6-aae8-43c6-8d19-2be08a433378"></dynamic-object></div><p><b>A look ahead:</b> Shippers can pencil in a return to the Red Sea in 2026, but neither carriers nor cargo owners are in any great rush to do so. Those moving refrigerated or otherwise perishable commodities would be thrilled to cut their transit times, but most shippers prefer consistency and plannability, even if it takes a couple more weeks for cargo to get from port to port. Forwarders and shipowners have warned that carriers switching Asia-Europe services back to the Suez Canal route en masse will result in waves of vessels and cargo arriving at major European gateways that were already at maximum capacity for much of 2025. From a supply-demand perspective, reverting to the traditional Suez transits will release effective capacity into a trade already awash with excess tonnage. That means carriers will likely be forced to blank sailings and reduce ship speeds to manage capacity and prevent rates from bottoming out. Planning for such an event is practically impossible, particularly without a clear timeline, but Asia-Europe shippers should expect disrupted ocean schedules and continued — possibly worsening — congestion that will likely take months to clear. </p><p><b>The next inflection:</b> A wholesale return to the Red Sea would cause intense disruption on the Asia-Europe trade lane, with ships sailing through the Suez Canal converging with those sailing around Africa at already congested European ports. To mitigate vessel bunching and the release of pent-up capacity, carriers could keep some services on the around-Africa route during the transition period. </p><p><i>Contact Greg Knowler at </i><a href="mailto:greg.knowler@spglobal.com"><i>greg.knowler@spglobal.com</i></a><i>.</i> </p></div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: After two years of sailing around southern Africa to avoid the risk of Houthi attacks in the Red Sea, Asia-Europe carriers could return to Suez Canal transits in 2026, possibly even in the first half. Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure. A look back: Similar to 2024, the Asia-Europe peak season came earlier than usual in 2025, with volumes ramping up in early May rather than the typical June start. Fueled by concerns over persistent port congestion in Europe — on top of extended transit times due to diversions away from the Suez Canal — importers rushed to build inventory for summer sales. Cargo owners had already baked into their supply chains the additional two weeks ships take to sail around southern Africa, but planning for port congestion proved more difficult as bottlenecks shifted dynamically among European terminals, sometimes within the same port. The strong demand continued into the fall, with Asia-Europe container volumes rising on a year-over-year basis for seven straight months from March through September, according to data from Container Trades Statistics (CTS). “We haven’t seen growth like that on the Far East westbound trade since before the global financial crisis,” Michael Aldwell, executive vice president of sea logistics at forwarder Kuehne + Nagel, told the Journal of Commerce in late November. The early peak saw spot rates spike in late May and early June before gradually declining through October. As end-of-year contract talks between shippers and carriers neared, carriers imposed a series of fortnightly freight-all-kinds rate increases from Oct. 1. Although not fully accepted by the market, the rate hikes, along with aggressive blank sailings, boosted average pricing from Asia to North Europe and the Mediterranean by 92.3% and 150%, respectively, from early October to mid-December, according to Platts, a Journal of Commerce sister product within S&P Global. A look ahead: Shippers can pencil in a return to the Red Sea in 2026, but neither carriers nor cargo owners are in any great rush to do so. Those moving refrigerated or otherwise perishable commodities would be thrilled to cut their transit times, but most shippers prefer consistency and plannability, even if it takes a couple more weeks for cargo to get from port to port. Forwarders and shipowners have warned that carriers switching Asia-Europe services back to the Suez Canal route en masse will result in waves of vessels and cargo arriving at major European gateways that were already at maximum capacity for much of 2025. From a supply-demand perspective, reverting to the traditional Suez transits will release effective capacity into a trade already awash with excess tonnage. That means carriers will likely be forced to blank sailings and reduce ship speeds to manage capacity and prevent rates from bottoming out. Planning for such an event is practically impossible, particularly without a clear timeline, but Asia-Europe shippers should expect disrupted ocean schedules and continued — possibly worsening — congestion that will likely take months to clear. The next inflection: A wholesale return to the Red Sea would cause intense disruption on the Asia-Europe trade lane, with ships sailing through the Suez Canal converging with those sailing around Africa at already congested European ports. To mitigate vessel bunching and the release of pent-up capacity, carriers could keep some services on the around-Africa route during the transition period. Contact Greg Knowler at greg.knowler@spglobal.com .

Red Sea return poses disruption threat to Asia-Europe trade

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