<div class="phx-topic abstract-wrapper">The mega-ships continue to flood in to the Asia-North Europe container trade lane.</div>

The mega-ships continue to flood in to the Asia-North Europe container trade lane.

<div class="phx-topic"><div class="wrapper-medium center-element"><img src="/images/phoenix/5257918_1.0.jpg"></img></div>The new 20,600 TEU CMA CGM Antoine de Saint-Exupéry will join the Asia-Europe trade on Feb. 6. Photo credit: CMA CGM.The mega-ships continue to flood in to the Asia-North Europe container trade lane with two brand new giant vessels delivered in the last week in time for the peak Lunar New Year shipping period.Latest to hit the water is <a href="https://www.joc.com/maritime-news/container-lines/cma-cgm/cma-cgm-confirms-mega-ship-order-swings-profit_20170915.html">CMA CGM</a> Antoine de Saint-Exupéry, which at 20,600 TEU is the largest container ship to fly the French flag. The vessel, named after the famous French writer and poet, will be deployed on the French Asia Line 1 service (FAL 1) with the first sailing on Feb. 6.<div class="wrapper-medium center-element"><img src="/images/phoenix/5257921_1.0.PNG"></img></div><a href="https://www.joc.com/sites/default/files/u1390826/Orderbook%20for%2018K%2B%20TEU%20ships.PNG">Click to Enlarge</a>Last week, Orient Overseas Container Line took delivery of the sixth and last of its 21,413 TEU ships, the OOCL Indonesia. It will join its five sister ships on the Asia-North Europe Loop 1 (LL1) with the first sailing this week.Andy Tung, chief executive of OOCL, said at the christening of his new vessel that the container shipping industry was benefiting from a healthier global economic environment not seen since the 2009 financial crisis. He said trade and economic cooperation was being boosted by the signing of deals such as the Hong Kong-Association of Southeast Asian Nations Free Trade Agreement (FTA) in November 2017.“Once ratified, the new FTA arrangements will not only open opportunities for trade growth, but also facilitate more effective and efficient trade links through the elimination of import duties and streamlining of regulations that would inevitably help improve supply chain flow over the long run,” Tung said. “In our industry, speed is of essence and we are very excited to see these kinds of policy directions pushing forward.”Despite rising demand that is driving up container volume on the trade between China and Europe, the brand new mega-ships from CMA CGM and OOCL are entering a trade lane that is already oversupplied, with spot rate levels remaining under pressure. Rate movements on the major east-west trades are tracked at JOC.com's <a href="https://www.joc.com/market-data-landing/container-pricing">Market Data Hub</a>.Data from IHS Markit, the parent company of JOC, shows that the total new container ship capacity due to be delivered in 2018 will come to about 1.3 million TEU. Approximately 30 percent of that new capacity will be for mega-ships of 18,000 to 25,000 TEU.Existing orders for 18,000 TEU-plus newbuildings in the mega-ships sector will see a virtual doubling of that fleet by the end of 2021. A total of 57 mega-ships are on order, with 24 set for delivery this year and a further 32 evenly spread through 2019 and 2020. A single vessel is due for delivery in 2021. The aggregate capacity represents a 91 percent increase on the current fleet of 68 mega container vessels.The 2018 forecast by IHS Markit predicts that container volume growth on Asia to North Europe and the Mediterranean will strengthen through the year, increasing by 4.5 to 4.9 percent compared with 2017. However, the global container fleet is on track to grow still faster, even after scrapping is taken into account and a quarter of the capacity is delayed.This appears to be a concern to some of the carriers. Yang Ming has delayed three 14,000 TEU ships it was to have taken delivery of in 2018 to 2019 and just last week <a href="https://www.joc.com/maritime-news/ships-shipbuilding/cosco-use-2-billion-share-sale-fund-mega-ship-construction_20171030.html">Cosco Shipping</a>, the carrier with the largest order book, announced it would be <a href="https://www.joc.com/maritime-news/cosco-defers-mega-ship-deliveries-excess-capacity-builds_20180110.html">deferring 10 mega-ships</a> of 166,576 TEU of capacity to 2019. Cosco Shipping has a total of 27 vessels on order that will be delivered between January 2018 and December 2019, and of those vessels, 17 are in the 20,000 to 21,000 TEU class that are destined for loops on the Asia-Europe trade.Alphaliner said a January surge in vessel deliveries of 250,000 TEU will be followed in the next four months by additional new ships with a total capacity of 790,000 TEU, all expected to join the world fleet between February and May. The ships will arrive in time for upgrades planned on various services of the 2M, Ocean, and THE Alliance, but will also trigger a cascade of smaller, although still fairly large, ships into secondary trade lanes, such as South America, Indian Subcontinent, and intra-Asian routes.Contact Greg Knowler at <a href="mailto:greg.knowler@ihsmarkit.com">greg.knowler@ihsmarkit.com</a> and follow him on Twitter: <a href="http://www.twitter.com/greg_knowler">@greg_knowler</a>.</div>

The new 20,600 TEU CMA CGM Antoine de Saint-Exupéry will join the Asia-Europe trade on Feb. 6. Photo credit: CMA CGM. The mega-ships continue to flood in to the Asia-North Europe container trade lane with two brand new giant vessels delivered in the last week in time for the peak Lunar New Year shipping period.Latest to hit the water is CMA CGM Antoine de Saint-Exupéry, which at 20,600 TEU is the largest container ship to fly the French flag. The vessel, named after the famous French writer and poet, will be deployed on the French Asia Line 1 service (FAL 1) with the first sailing on Feb. 6. Click to Enlarge Last week, Orient Overseas Container Line took delivery of the sixth and last of its 21,413 TEU ships, the OOCL Indonesia. It will join its five sister ships on the Asia-North Europe Loop 1 (LL1) with the first sailing this week.Andy Tung, chief executive of OOCL, said at the christening of his new vessel that the container shipping industry was benefiting from a healthier global economic environment not seen since the 2009 financial crisis. He said trade and economic cooperation was being boosted by the signing of deals such as the Hong Kong-Association of Southeast Asian Nations Free Trade Agreement (FTA) in November 2017.“Once ratified, the new FTA arrangements will not only open opportunities for trade growth, but also facilitate more effective and efficient trade links through the elimination of import duties and streamlining of regulations that would inevitably help improve supply chain flow over the long run,” Tung said. “In our industry, speed is of essence and we are very excited to see these kinds of policy directions pushing forward.”Despite rising demand that is driving up container volume on the trade between China and Europe, the brand new mega-ships from CMA CGM and OOCL are entering a trade lane that is already oversupplied, with spot rate levels remaining under pressure. Rate movements on the major east-west trades are tracked at JOC.com's Market Data Hub .Data from IHS Markit, the parent company of JOC, shows that the total new container ship capacity due to be delivered in 2018 will come to about 1.3 million TEU. Approximately 30 percent of that new capacity will be for mega-ships of 18,000 to 25,000 TEU. Existing orders for 18,000 TEU-plus newbuildings in the mega-ships sector will see a virtual doubling of that fleet by the end of 2021. A total of 57 mega-ships are on order, with 24 set for delivery this year and a further 32 evenly spread through 2019 and 2020. A single vessel is due for delivery in 2021. The aggregate capacity represents a 91 percent increase on the current fleet of 68 mega container vessels. The 2018 forecast by IHS Markit predicts that container volume growth on Asia to North Europe and the Mediterranean will strengthen through the year, increasing by 4.5 to 4.9 percent compared with 2017. However, the global container fleet is on track to grow still faster, even after scrapping is taken into account and a quarter of the capacity is delayed.This appears to be a concern to some of the carriers. Yang Ming has delayed three 14,000 TEU ships it was to have taken delivery of in 2018 to 2019 and just last week Cosco Shipping , the carrier with the largest order book, announced it would be deferring 10 mega-ships of 166,576 TEU of capacity to 2019. Cosco Shipping has a total of 27 vessels on order that will be delivered between January 2018 and December 2019, and of those vessels, 17 are in the 20,000 to 21,000 TEU class that are destined for loops on the Asia-Europe trade.Alphaliner said a January surge in vessel deliveries of 250,000 TEU will be followed in the next four months by additional new ships with a total capacity of 790,000 TEU, all expected to join the world fleet between February and May. The ships will arrive in time for upgrades planned on various services of the 2M, Ocean, and THE Alliance, but will also trigger a cascade of smaller, although still fairly large, ships into secondary trade lanes, such as South America, Indian Subcontinent, and intra-Asian routes. Contact Greg Knowler at greg.knowler@ihsmarkit.com and follow him on Twitter: @greg_knowler .

Container lines

Mega-ship delivery keeps Asia-Europe capacity on the rise

<div class="phx-topic abstract-wrapper">Even before the war-driven spike in gasoline prices, the US automotive industry was expecting lower vehicle sales due to import tariffs and higher borrowing costs for vehicle buyers. </div>

Even before the war-driven spike in gasoline prices, the US automotive industry was expecting lower vehicle sales due to import tariffs and higher borrowing costs for vehicle buyers.

Feature image

<div class="phx-topic">(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine published on May 4, 2026.) US demand for automobiles and auto parts has been straining under higher inflationary costs, but buyers, both consumers and manufacturers, will face another level of sticker shock if the war in the Middle East extends into the summer. Even before the war-driven spike in gasoline prices, the US automotive industry was steeling for a tough year. Prior to the start of the conflict, Journal of Commerce parent company S&amp;P Global forecast that vehicle sales would fall 2% from the previous year due to a long list of headwinds for the industry, including higher borrowing costs for vehicle buyers and steel tariffs upping input prices. But already relatively high prices for new vehicles and auto parts — the cheapest new 2026 model car available is $20,550, according to CARFAX — will increase significantly if the war continues through May, according to a mid-March report from S&amp;P Global. If the war lasts through the end of 2026, that elevated pricing will negatively impact consumer demand and, by extension, container volumes. A war scenario of more than a year will result in continued inflation and declining demand until prices reach a new “set point,” S&amp;P Global analysts said. Containerized US imports of automobiles and auto parts fell 9.4% year over year in 2025, dragging the five-year compound annual growth rate (CAGR) down to 3.8%, according to PIERS, a Journal of Commerce sister product within S&amp;P Global. Exports, meanwhile, spiked 15.3%, boosting the five-year CAGR to 6.6%. The majority of seaborne vehicle imports and exports travel via roll-on/roll-off (ro/ro) ships; those volumes are not captured by PIERS data. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="21c4be02-a1d9-4421-8e74-cde94062cc7d"></dynamic-object></div>The uncertainties surrounding the length of the war will undoubtedly impact the US container trade in vehicles and parts as importers and exporters in the automotive sector review and possibly modify their business plans, said Chris Hopson, principal analyst for the global light vehicle forecast group at S&amp;P Global. “2025 was an uncertain year because of the tariffs, and the auto industry digested it better than we might have expected,” Hopson said. However, due to the war in Iran, how long the industry can continue to bear those higher costs “is open to question.” The weakening market for new US car sales has a silver lining for importers of aftermarket parts used to maintain and repair vehicles, such as filters, batteries and brakes. Customers of Advance Auto Parts, who are often in one of the most economically depressed cohorts, typically would rather keep their cars running a little longer than shop for a new car, said CEO Shane O’Kelly. “That car is how they get to work; it’s how they get to church; [how] they get the kids to activities,” O’Kelly told investors during a March 11 earnings call. “If that thing is not running, they’re getting it fixed, so I don’t necessarily see demand curtailing.” <h3>‘General inconsistencies’ </h3>Auto parts importers have been looking — and will continue to look — at changing sourcing away from China to Southeast Asia and the Indian subcontinent because of the higher tariffs imposed last year, according to Steve Hughes, a consultant for the aftermarket auto parts industry. But those changes can’t happen overnight, Hughes explained, because it takes anywhere from six months to two years to set up operations in a new location. Mainland China accounted for 35.2% of US containerized autos and parts imports last year, down from more than 40% as recently as 2021, according to PIERS. The primary beneficiaries of China’s declining market share, South Korea and Japan, have increased their combined share of the market to 27% from 20.8% during that period. Noel Hacegaba, CEO of the Port of Long Beach, said the port has experienced a general shift of sourcing of most imports, including autos and auto parts, away from China to other countries. Imports of passenger vehicles landing in Long Beach, mostly on ro/ro ships, were flat in 2025, while exports rose 6.2% year over year, according to Hacegaba. Containerized auto parts imports through the port rose 1.1%, while exports fell 15%. Los Angeles-Long Beach is the busiest US port complex for containerized auto imports. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fec38ae3-22df-41b8-94f2-7b395028700a"></dynamic-object></div>The Port of Baltimore, also a major gateway for ro/ro and containerized auto imports and exports, continues to feel the impact of tariffs. Those impacts are reflected in the higher prices consumers must pay, but the problem runs even deeper than cost, said Jonathan Daniels, executive director of the Maryland Port Administration (MPA). “The biggest issue we have seen with shippers is the general inconsistencies in the tariffs,” Daniels told the Journal of Commerce. Although original equipment manufacturers take higher tariff costs as a given, not knowing the exact rate for finished vehicles and components makes it difficult to make strategic sourcing and production decisions, Daniels explained. Depending on the level of tariffs on each, it might be cheaper to import fully assembled cars, or it might make more sense to import the necessary pieces and assemble them in the US. Despite these uncertainties, more than 700,000 automobiles and light trucks crossed Baltimore’s docks for the 13th consecutive year in 2025, according to MPA data. Daniels said the port continues to develop infrastructure to support processing facilities in the region, adding that exports of damaged cars to West Africa to be used for parts remains a bright spot for the industry. For containerized exports, the largest individual markets are the United Arab Emirates and Georgia, which accounted for 12% and 11.8% of outbound auto and part shipments, respectively, with no other country exceeding 10%, according to PIERS. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine published on May 4, 2026.) US demand for automobiles and auto parts has been straining under higher inflationary costs, but buyers, both consumers and manufacturers, will face another level of sticker shock if the war in the Middle East extends into the summer. Even before the war-driven spike in gasoline prices, the US automotive industry was steeling for a tough year. Prior to the start of the conflict, Journal of Commerce parent company S&P Global forecast that vehicle sales would fall 2% from the previous year due to a long list of headwinds for the industry, including higher borrowing costs for vehicle buyers and steel tariffs upping input prices. But already relatively high prices for new vehicles and auto parts — the cheapest new 2026 model car available is $20,550, according to CARFAX — will increase significantly if the war continues through May, according to a mid-March report from S&P Global. If the war lasts through the end of 2026, that elevated pricing will negatively impact consumer demand and, by extension, container volumes. A war scenario of more than a year will result in continued inflation and declining demand until prices reach a new “set point,” S&P Global analysts said. Containerized US imports of automobiles and auto parts fell 9.4% year over year in 2025, dragging the five-year compound annual growth rate (CAGR) down to 3.8%, according to PIERS, a Journal of Commerce sister product within S&P Global. Exports, meanwhile, spiked 15.3%, boosting the five-year CAGR to 6.6%. The majority of seaborne vehicle imports and exports travel via roll-on/roll-off (ro/ro) ships; those volumes are not captured by PIERS data. The uncertainties surrounding the length of the war will undoubtedly impact the US container trade in vehicles and parts as importers and exporters in the automotive sector review and possibly modify their business plans, said Chris Hopson, principal analyst for the global light vehicle forecast group at S&P Global. “2025 was an uncertain year because of the tariffs, and the auto industry digested it better than we might have expected,” Hopson said. However, due to the war in Iran, how long the industry can continue to bear those higher costs “is open to question.” The weakening market for new US car sales has a silver lining for importers of aftermarket parts used to maintain and repair vehicles, such as filters, batteries and brakes. Customers of Advance Auto Parts, who are often in one of the most economically depressed cohorts, typically would rather keep their cars running a little longer than shop for a new car, said CEO Shane O’Kelly. “That car is how they get to work; it’s how they get to church; [how] they get the kids to activities,” O’Kelly told investors during a March 11 earnings call. “If that thing is not running, they’re getting it fixed, so I don’t necessarily see demand curtailing.” ‘General inconsistencies’ Auto parts importers have been looking — and will continue to look — at changing sourcing away from China to Southeast Asia and the Indian subcontinent because of the higher tariffs imposed last year, according to Steve Hughes, a consultant for the aftermarket auto parts industry. But those changes can’t happen overnight, Hughes explained, because it takes anywhere from six months to two years to set up operations in a new location. Mainland China accounted for 35.2% of US containerized autos and parts imports last year, down from more than 40% as recently as 2021, according to PIERS. The primary beneficiaries of China’s declining market share, South Korea and Japan, have increased their combined share of the market to 27% from 20.8% during that period. Noel Hacegaba, CEO of the Port of Long Beach, said the port has experienced a general shift of sourcing of most imports, including autos and auto parts, away from China to other countries. Imports of passenger vehicles landing in Long Beach, mostly on ro/ro ships, were flat in 2025, while exports rose 6.2% year over year, according to Hacegaba. Containerized auto parts imports through the port rose 1.1%, while exports fell 15%. Los Angeles-Long Beach is the busiest US port complex for containerized auto imports. The Port of Baltimore, also a major gateway for ro/ro and containerized auto imports and exports, continues to feel the impact of tariffs. Those impacts are reflected in the higher prices consumers must pay, but the problem runs even deeper than cost, said Jonathan Daniels, executive director of the Maryland Port Administration (MPA). “The biggest issue we have seen with shippers is the general inconsistencies in the tariffs,” Daniels told the Journal of Commerce. Although original equipment manufacturers take higher tariff costs as a given, not knowing the exact rate for finished vehicles and components makes it difficult to make strategic sourcing and production decisions, Daniels explained. Depending on the level of tariffs on each, it might be cheaper to import fully assembled cars, or it might make more sense to import the necessary pieces and assemble them in the US. Despite these uncertainties, more than 700,000 automobiles and light trucks crossed Baltimore’s docks for the 13th consecutive year in 2025, according to MPA data. Daniels said the port continues to develop infrastructure to support processing facilities in the region, adding that exports of damaged cars to West Africa to be used for parts remains a bright spot for the industry. For containerized exports, the largest individual markets are the United Arab Emirates and Georgia, which accounted for 12% and 11.8% of outbound auto and part shipments, respectively, with no other country exceeding 10%, according to PIERS. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

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Supply chain

Container Shipping News

Maritime

Prolonged Middle East war to weigh on sputtering US auto demand

<div class="phx-topic abstract-wrapper">The issue of carrier terminal control is front and center with the coming sale of Maher given that carriers overall have become aggressive acquirers and developers of terminal capacity globally, including on the US East Coast. </div>

The issue of carrier terminal control is front and center with the coming sale of Maher given that carriers overall have become aggressive acquirers and developers of terminal capacity globally, including on the US East Coast.

<div class="phx-topic">As Maher Terminals, the largest terminal at the Port of New York and New Jersey, is being prepped for sale with active discussions under way with potential buyers, a possible unfavorable outcome for the port is for all major terminals ending up owned by ocean carriers. The 450-acre Maher facility in New Jersey, at approximately one-third of container capacity and market share within the port, is the last remaining non-carrier-owned terminal following the 2023 acquisition by CMA CGM of previously neutral Global Container Terminals facilities at Bayonne and Howland Hook, other than a small facility in Brooklyn under control of the NYC Economic Development Corp. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6218881_0.1.jpg"></img></div>If Maher were to be sold to a carrier by its owner, Macquarie Asset Management, the result could be several large carriers who don’t own terminals at the port ending up as customers of other carriers. Those carriers and their customers would thus be left at a perpetual disadvantage in terms of berth windows and cargo handling when serving New York-New Jersey. That would make the port less attractive for such carriers versus competitive ports for inland cargo such as Virginia that are operated on a neutral basis. “Maher Terminals has combined an exceptional leadership team with expansive capital investment to create a leading neutral stevedoring operation on the East Coast,” said Ken O’Brien, CEO of Gemini Shippers Group. “It is hard to envision how a purchase of the terminal by one of the liner companies would lead to improved service levels.” The other major terminals partly or fully carrier-owned are APM Terminals, a unit of AP Moller-Maersk; and Port Newark Container Terminal, or PNCT, which is 50% owned by Terminal Investment Limited (TiL), the terminal operating business of Mediterranean Shipping Co. Different outcomes are possible. If Maher were sold to MSC, the world’s largest carrier and an aggressive acquirer of terminal space in the US and globally, it would likely force MSC to sell its PNCT stake due to antitrust concerns over market dominance at the East Coast’s largest port, according to a knowledgeable source. MSC is one of the parties that have expressed interest in Maher, according to a February <a href="https://www.wsj.com/articles/maritime-giants-target-major-new-york-area-port-terminal-3ba57f47?mod=Searchresults&amp;pos=1&amp;page=1">report</a> in the Wall Street Journal. Such a scenario could leave PNCT in the hands of neutral owners, giving the port a common-user facility. “It is important to the port’s competitiveness to retain a common-user facility,” a source said. <h3>Carriers’ healthy appetite for terminal assets </h3>The issue of carrier terminal control is front and center with the impending sale of Maher given that carriers overall have become aggressive acquirers and developers of terminal capacity globally, <a href="https://www.joc.com/article/more-carrier-controlled-terminal-operations-could-be-coming-to-the-east-coast-6207482">including on the US East Coast</a>. For example, if Maher were to fall into the hands of Hapag-Lloyd or Ocean Network Express (ONE), both top 10 carriers that are expanding their terminal portfolios, it could leave the port as essentially a closed shop where non-terminal operating carriers are deprioritized, making the port less competitive overall. The reason is that while carrier-owned terminals often claim to be neutral, in reality they are not. “Within carriers that own terminals, internal debates take place between the port operations team and the liner teams regarding terminals the carrier owns,” said George Goldman, former president of Zim Integrated Shipping Services and CMA CGM in the US. “Third-party terminal revenue is a big deal for the terminal guys, but ultimately decisions pay homage to the mothership and ultimately preference is given to the carrier.” He added: “Independent carriers really have very little leverage so ... I think ultimately it’s a disadvantage for them and the industry.” Such are the implications for non-terminal-owning carriers that — depending on who the buyer is — it could impact alliances and port calls on the US East Coast, said a port expert who asked to remain anonymous. <h3>‘Single-most attractive terminal target in the world’ </h3>The Maher sale, moreover, isn’t just any transaction. It’s the premier terminal property in the heart of the world’s <a href="https://financesonline.com/10-wealthiest-cities-in-the-world-its-not-new-york-or-london-at-the-top/">second-largest</a> metropolitan region by GDP, as well as a dominant player within a strategically located port that over several years has held its own among competitors. The Maher facility is “the single-most attractive terminal target in the world today,” according to the knowledgeable source. The import market share of New York-New Jersey among Northeast ports (including Boston, Philadelphia, Baltimore and Virginia) was 63.1% in 2025 versus 63.6% in 2020, according to S&amp;P Global Market Intelligence. A further benefit to NY-NJ stems from long-term growth in East Coast market share as Asia manufacturing gravitates south from China, which favors the westbound route into North America. It has been widely reported that Maher will be put up for sale in the coming months by Macquarie. JP Morgan has been named as the sell-side advisor, according to Infralogic, an infrastructure publication. The bank is incentivized to achieve a price possibly as lofty as $6 billion, said the knowledgeable source. Macquarie in December renewed Maher’s lease with the Port Authority of New York and New Jersey for 33 years through 2063, <a href="https://www.joc.com/article/macquarie-seals-deal-for-new-maher-lease-at-nynj-through-2063-6137751">agreeing</a> to terms that include responsibility for upkeep of wharves and berths and a commitment to increase capacity in line with demand. The lease renewal was seen as a critical step in Macquarie’s ability to put the terminal up for sale as it removes uncertainty as to what a buyer is committing to. The knowledgeable source said the terminal, which was acquired by Macquarie from Deutsche Bank in 2016, will attract interest from potential buyers including carrier-owned terminal operators, independent operators such as DP World, PSA or Carrix, as well as potentially infrastructure-focused financial players. Yet with indications the port is committed to maintaining a common-user facility within the port, it remains to be seen whether it will intervene to achieve that result given that it has the right to approve the Maher transaction but can’t dictate who the buyer would be. Some port sources speculate that Macquarie would not have renewed the Maher lease without a commitment from the port not to reopen the lease as a condition for approving the sale, which it did to force concessions from CMA CGM regarding the Global terminals deal. A spokesperson for the port of NY-NJ would only say: “We are unable to comment on possible sales or negotiations.” Macquarie could not be reached for comment. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

As Maher Terminals, the largest terminal at the Port of New York and New Jersey, is being prepped for sale with active discussions under way with potential buyers, a possible unfavorable outcome for the port is for all major terminals ending up owned by ocean carriers. The 450-acre Maher facility in New Jersey, at approximately one-third of container capacity and market share within the port, is the last remaining non-carrier-owned terminal following the 2023 acquisition by CMA CGM of previously neutral Global Container Terminals facilities at Bayonne and Howland Hook, other than a small facility in Brooklyn under control of the NYC Economic Development Corp. If Maher were to be sold to a carrier by its owner, Macquarie Asset Management, the result could be several large carriers who don’t own terminals at the port ending up as customers of other carriers. Those carriers and their customers would thus be left at a perpetual disadvantage in terms of berth windows and cargo handling when serving New York-New Jersey. That would make the port less attractive for such carriers versus competitive ports for inland cargo such as Virginia that are operated on a neutral basis. “Maher Terminals has combined an exceptional leadership team with expansive capital investment to create a leading neutral stevedoring operation on the East Coast,” said Ken O’Brien, CEO of Gemini Shippers Group. “It is hard to envision how a purchase of the terminal by one of the liner companies would lead to improved service levels.” The other major terminals partly or fully carrier-owned are APM Terminals, a unit of AP Moller-Maersk; and Port Newark Container Terminal, or PNCT, which is 50% owned by Terminal Investment Limited (TiL), the terminal operating business of Mediterranean Shipping Co. Different outcomes are possible. If Maher were sold to MSC, the world’s largest carrier and an aggressive acquirer of terminal space in the US and globally, it would likely force MSC to sell its PNCT stake due to antitrust concerns over market dominance at the East Coast’s largest port, according to a knowledgeable source. MSC is one of the parties that have expressed interest in Maher, according to a February report in the Wall Street Journal. Such a scenario could leave PNCT in the hands of neutral owners, giving the port a common-user facility. “It is important to the port’s competitiveness to retain a common-user facility,” a source said. Carriers’ healthy appetite for terminal assets The issue of carrier terminal control is front and center with the impending sale of Maher given that carriers overall have become aggressive acquirers and developers of terminal capacity globally, including on the US East Coast . For example, if Maher were to fall into the hands of Hapag-Lloyd or Ocean Network Express (ONE), both top 10 carriers that are expanding their terminal portfolios, it could leave the port as essentially a closed shop where non-terminal operating carriers are deprioritized, making the port less competitive overall. The reason is that while carrier-owned terminals often claim to be neutral, in reality they are not. “Within carriers that own terminals, internal debates take place between the port operations team and the liner teams regarding terminals the carrier owns,” said George Goldman, former president of Zim Integrated Shipping Services and CMA CGM in the US. “Third-party terminal revenue is a big deal for the terminal guys, but ultimately decisions pay homage to the mothership and ultimately preference is given to the carrier.” He added: “Independent carriers really have very little leverage so ... I think ultimately it’s a disadvantage for them and the industry.” Such are the implications for non-terminal-owning carriers that — depending on who the buyer is — it could impact alliances and port calls on the US East Coast, said a port expert who asked to remain anonymous. ‘Single-most attractive terminal target in the world’ The Maher sale, moreover, isn’t just any transaction. It’s the premier terminal property in the heart of the world’s second-largest metropolitan region by GDP, as well as a dominant player within a strategically located port that over several years has held its own among competitors. The Maher facility is “the single-most attractive terminal target in the world today,” according to the knowledgeable source. The import market share of New York-New Jersey among Northeast ports (including Boston, Philadelphia, Baltimore and Virginia) was 63.1% in 2025 versus 63.6% in 2020, according to S&P Global Market Intelligence. A further benefit to NY-NJ stems from long-term growth in East Coast market share as Asia manufacturing gravitates south from China, which favors the westbound route into North America. It has been widely reported that Maher will be put up for sale in the coming months by Macquarie. JP Morgan has been named as the sell-side advisor, according to Infralogic, an infrastructure publication. The bank is incentivized to achieve a price possibly as lofty as $6 billion, said the knowledgeable source. Macquarie in December renewed Maher’s lease with the Port Authority of New York and New Jersey for 33 years through 2063, agreeing to terms that include responsibility for upkeep of wharves and berths and a commitment to increase capacity in line with demand. The lease renewal was seen as a critical step in Macquarie’s ability to put the terminal up for sale as it removes uncertainty as to what a buyer is committing to. The knowledgeable source said the terminal, which was acquired by Macquarie from Deutsche Bank in 2016, will attract interest from potential buyers including carrier-owned terminal operators, independent operators such as DP World, PSA or Carrix, as well as potentially infrastructure-focused financial players. Yet with indications the port is committed to maintaining a common-user facility within the port, it remains to be seen whether it will intervene to achieve that result given that it has the right to approve the Maher transaction but can’t dictate who the buyer would be. Some port sources speculate that Macquarie would not have renewed the Maher lease without a commitment from the port not to reopen the lease as a condition for approving the sale, which it did to force concessions from CMA CGM regarding the Global terminals deal. A spokesperson for the port of NY-NJ would only say: “We are unable to comment on possible sales or negotiations.” Macquarie could not be reached for comment. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

North American ports

Marine terminals

Impending sale of Maher likely to reshape competitive dynamics at Port of NY-NJ

<div class="phx-topic abstract-wrapper">The 15,900-TEU container ships will be delivered between November 2028 and September 2029 and reflect the continuing dominance of LNG as the new generation fuel of choice for vessel operators ordering new ships.</div>

The 15,900-TEU container ships will be delivered between November 2028 and September 2029 and reflect the continuing dominance of LNG as the new generation fuel of choice for vessel operators ordering new ships.

<div class="phx-topic">Ocean Network Express (ONE) has become the latest carrier to invest in new vessels this year after signing a $1.2 billion order for six 15,900-TEU dual-fuel liquefied natural gas (LNG) container ships. The deal was confirmed by South Korean shipbuilder HD Hyundai Heavy Industries, which said it signed the contract on May 7. Independent shipbrokers also confirmed ONE’s order. British shipbroking house Clarksons said the ships were priced at $203.5 million each, giving a total contract value of over $1.2 billion, a figure confirmed by Hyundai Heavy in a filing to the South Korea stock exchange Friday. The ships will be delivered between November 2028 and September 2029, Clarksons said. HD Hyundai Heavy Industries also confirmed the final ship would be delivered by Sept. 30, 2030. MB Shipbrokers said discussions between ONE and the shipyard had been going on for several months before contracts were signed last Thursday. The deal “further expands ONE’s growing portfolio of alternative-fuel tonnage across multiple yards, including Hyundai Heavy Industries,” MB said in a market report Friday. The latest order follows an earlier contract for eight 15,900-TEU LNG-powered ships that ONE ordered from Hyundai Heavy last June, with the first deliveries beginning in 2028. ONE, <a href="https://www.joc.com/article/one-expects-11-decline-in-fy26-net-profit-due-to-war-in-middle-east-6212215">according to its fiscal 2025 annual results released on April 30</a>, said it had an order backlog of 67 ships at the end of March. Those included a dozen 13,000-TEU dual-fuel ships that will start to be delivered next year, and the balance of an order for 20 13,800-TEU methanol-ready ships ordered in 2023. <h3>Growing dominance of LNG-powered ships </h3>ONE’s deal reflects the continuing dominance of LNG as the new generation fuel of choice for vessel operators ordering new ships. There are more than 6.4 million TEUs of LNG-powered ships currently on order globally, according to data from Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. ONE joins several of its peers, including <a href="https://www.joc.com/article/evergreen-adds-to-order-book-with-deal-for-six-24000-teu-vessels-6201246">Evergreen</a>, <a href="https://www.joc.com/article/cosco-shipping-cu-lines-expand-fleets-with-20-new-container-ships-6215039">Cosco Shipping</a>, <a href="https://www.joc.com/article/oocl-orders-its-first-lng-fueled-ships-with-2-billion-deal-for-12-vessels-6212244">OOCL</a>, and <a href="https://www.joc.com/article/yang-ming-wan-hai-boost-combined-order-book-with-12-new-ships-6185215">Yang Ming</a> in ordering new vessels since the beginning of this year. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ef78ab1f-3609-44d0-a713-fb260bc40609"></dynamic-object></div>Linerlytica said orders totaling 1.9 million TEUs of capacity were signed in the first four months of this year. As a consequence, the “order book has swelled to a new record high of 13 million TEUs on the back of unrestrained new ship orders,” the shipping data platform said in a May 4 commentary. “Over-capacity will soon catch up with the market, with over 5 million TEUs scheduled to be delivered in 2028 alone,” it added. Indeed, the global order book continues to swell, with total capacity on order currently at 12 million TEUs, 36% of the in-service fleet, according to Sea-web. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Ocean Network Express (ONE) has become the latest carrier to invest in new vessels this year after signing a $1.2 billion order for six 15,900-TEU dual-fuel liquefied natural gas (LNG) container ships. The deal was confirmed by South Korean shipbuilder HD Hyundai Heavy Industries, which said it signed the contract on May 7. Independent shipbrokers also confirmed ONE’s order. British shipbroking house Clarksons said the ships were priced at $203.5 million each, giving a total contract value of over $1.2 billion, a figure confirmed by Hyundai Heavy in a filing to the South Korea stock exchange Friday. The ships will be delivered between November 2028 and September 2029, Clarksons said. HD Hyundai Heavy Industries also confirmed the final ship would be delivered by Sept. 30, 2030. MB Shipbrokers said discussions between ONE and the shipyard had been going on for several months before contracts were signed last Thursday. The deal “further expands ONE’s growing portfolio of alternative-fuel tonnage across multiple yards, including Hyundai Heavy Industries,” MB said in a market report Friday. The latest order follows an earlier contract for eight 15,900-TEU LNG-powered ships that ONE ordered from Hyundai Heavy last June, with the first deliveries beginning in 2028. ONE, according to its fiscal 2025 annual results released on April 30 , said it had an order backlog of 67 ships at the end of March. Those included a dozen 13,000-TEU dual-fuel ships that will start to be delivered next year, and the balance of an order for 20 13,800-TEU methanol-ready ships ordered in 2023. Growing dominance of LNG-powered ships ONE’s deal reflects the continuing dominance of LNG as the new generation fuel of choice for vessel operators ordering new ships. There are more than 6.4 million TEUs of LNG-powered ships currently on order globally, according to data from Sea-web, a sister product of the Journal of Commerce within S&P Global. ONE joins several of its peers, including Evergreen , Cosco Shipping , OOCL , and Yang Ming in ordering new vessels since the beginning of this year. Linerlytica said orders totaling 1.9 million TEUs of capacity were signed in the first four months of this year. As a consequence, the “order book has swelled to a new record high of 13 million TEUs on the back of unrestrained new ship orders,” the shipping data platform said in a May 4 commentary. “Over-capacity will soon catch up with the market, with over 5 million TEUs scheduled to be delivered in 2028 alone,” it added. Indeed, the global order book continues to swell, with total capacity on order currently at 12 million TEUs, 36% of the in-service fleet, according to Sea-web. Contact Keith Wallis at keithwallis@hotmail.com .

ONE to spend $1.2 billion in deal with HD Hyundai for six LNG-powered ships

<div class="phx-topic abstract-wrapper">Shippers reluctant to accept additional bunker costs might have their hand forced by a healthy breakbulk and project cargo pipeline, market participants say.</div>

Shippers reluctant to accept additional bunker costs might have their hand forced by a healthy breakbulk and project cargo pipeline, market participants say.

<div class="phx-topic">Sentiment in the multipurpose vessel (MPV) sector remains positive despite elevated bunker prices driven by the war in the Middle East and closure of the Strait of Hormuz, according to carriers. In the latest One World Market Sentiment Index (MSI), One World Shipbrokers’ Justin Archard said the medium-term six-month MPV outlook remains elevated over current levels, while the 12-month outlook remains “supported by the expectation that emerging energy independence policies around the world will unlock a swathe of new projects for the MPV sector.” The MSI slipped just 0.1 to reach 53.3 in the second-quarter edition published May 7. The index averages responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism. Despite the current optimism, the sharp rise in bunker prices has not gone unnoticed by the MPV sector, Archard said. “With oil markets and bunker costs having been relatively stable for a long period prior to the Iran war, few carriers are likely to have taken any substantial hedging positions and are therefore either entirely exposed to the hike now or will be if elevated bunker rates continue for a lengthy period,” he said. “With all this in play, it might have been expected [that] sentiment would have deteriorated, but in this edition, the index has hardly moved,” Archard added. <h3>Shippers playing ‘wait-and-see’ </h3>The increase in bunker prices has led to higher voyage costs at a time when some shippers are reluctant to accept the additional cost, said one carrier contributing anonymously to the MSI. “In some cases, we see shippers maintaining a wait-and-see stance on forthcoming planned shipments,” the source added. Another respondent said shippers are reluctant to commit, even with fuel adjustment mechanisms in place. This has led to cargoes trading on the spot market for longer periods, “as counterparties delay decisions, either testing the market or waiting for lower-cost options,” said the second source. A third carrier described shippers withholding cargoes until freight shifts to “reasonable” levels as “nothing [more] than a gamble.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="188becc9-a589-4175-9104-8df1f8e20148"></dynamic-object></div>Susan Oatway, senior research analyst for breakbulk and project cargo at S&amp;P Global Market Intelligence, noted that MPV freight rates have risen over the past four to six weeks, in line with increased bunker prices. “That is why freight rates have gone up, not because there has been a change in cargo supply and demand,” Oatway said. “Now these bunker price increases have started to be incorporated directly into freight rates.” Data from the JOC Breakbulk Shipper Index suggests that while there are less breakbulk and project cargoes being loaded and discharged in the Middle East, cargoes out of North America and Europe are still stable. “The number of MPVs caught up in the Strait of Hormuz is minor, and the rest of the fleet is re-routing — but they were doing that before this current crisis,” Oatway said. “Shippers have quickly pivoted their project cargo sourcing.” Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Sentiment in the multipurpose vessel (MPV) sector remains positive despite elevated bunker prices driven by the war in the Middle East and closure of the Strait of Hormuz, according to carriers. In the latest One World Market Sentiment Index (MSI), One World Shipbrokers’ Justin Archard said the medium-term six-month MPV outlook remains elevated over current levels, while the 12-month outlook remains “supported by the expectation that emerging energy independence policies around the world will unlock a swathe of new projects for the MPV sector.” The MSI slipped just 0.1 to reach 53.3 in the second-quarter edition published May 7. The index averages responses from an anonymous group of 20 to 30 MPV owners and operators to a set of breakbulk shipping-related questions. A reading of 50 is neutral, indicating a static market. Scores below 50 show pessimism or wariness, while a score above 50 indicates optimism. Despite the current optimism, the sharp rise in bunker prices has not gone unnoticed by the MPV sector, Archard said. “With oil markets and bunker costs having been relatively stable for a long period prior to the Iran war, few carriers are likely to have taken any substantial hedging positions and are therefore either entirely exposed to the hike now or will be if elevated bunker rates continue for a lengthy period,” he said. “With all this in play, it might have been expected [that] sentiment would have deteriorated, but in this edition, the index has hardly moved,” Archard added. Shippers playing ‘wait-and-see’ The increase in bunker prices has led to higher voyage costs at a time when some shippers are reluctant to accept the additional cost, said one carrier contributing anonymously to the MSI. “In some cases, we see shippers maintaining a wait-and-see stance on forthcoming planned shipments,” the source added. Another respondent said shippers are reluctant to commit, even with fuel adjustment mechanisms in place. This has led to cargoes trading on the spot market for longer periods, “as counterparties delay decisions, either testing the market or waiting for lower-cost options,” said the second source. A third carrier described shippers withholding cargoes until freight shifts to “reasonable” levels as “nothing [more] than a gamble.” Susan Oatway, senior research analyst for breakbulk and project cargo at S&P Global Market Intelligence, noted that MPV freight rates have risen over the past four to six weeks, in line with increased bunker prices. “That is why freight rates have gone up, not because there has been a change in cargo supply and demand,” Oatway said. “Now these bunker price increases have started to be incorporated directly into freight rates.” Data from the JOC Breakbulk Shipper Index suggests that while there are less breakbulk and project cargoes being loaded and discharged in the Middle East, cargoes out of North America and Europe are still stable. “The number of MPVs caught up in the Strait of Hormuz is minor, and the rest of the fleet is re-routing — but they were doing that before this current crisis,” Oatway said. “Shippers have quickly pivoted their project cargo sourcing.” Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk News

Multipurpose vessel sentiment positive despite bunker price volatility

<div class="phx-topic abstract-wrapper">The loss of one-third of global helium output because of the war has given fresh impetus to industrial gas projects in new regions. </div>

The loss of one-third of global helium output because of the war has given fresh impetus to industrial gas projects in new regions.

<div class="phx-topic">The war-forced shutdown of Qatar’s Ras Laffan LNG refinery in March triggered the most serious disruption to the global helium market in more than a decade, prompting shippers to pursue industrial projects in alternative regions. The situation has exposed the vulnerabilities in this critical supply chain, pushed prices up sharply, and prompted a renewed focus on potential new helium production facilities in more secure areas. Components for these industrial facilities are a driver of global project cargo demand. The elimination of one-third of global helium supplies has also highlighted how vital the gas is — including for semiconductor and advanced electronics production, MRI machines and other medical diagnostics equipment, aerospace and defense, and precision manufacturing. The world’s major helium suppliers are tight-lipped on how they are dealing with the shortage, reluctant to share information that could be damaging to their reputation or share price, Phil Kornbluth, president of global industry consultant Kornbluth Helium Consulting, told the Journal of Commerce. “The helium business is an oligopoly consisting of six companies, and they tend to control the flow of information,” he said. “All of them are impacted by the loss of supply from Qatar, but at different levels. Not everyone has equal dependence on Qatar.” Industrial gas supplier and shipper Air Liquide, which sources more than half of its helium supply from Qatar, declared force majeure in March, implementing a supply allocation and pricing surcharges, Kornbluth noted. <h3>New opportunities </h3>More than 90% of the world’s helium is a byproduct of natural gas processing, so output cannot be increased or reduced independently of hydrocarbon production. This is where Thomas Abraham-Jones, CEO and co-founder of Pulsar Helium, sees an opportunity for new exploration and production facilities. Pulsar is pursuing standalone, or “primary helium” exploration, at its Topaz project in Minnesota, where flow testing continues and production potential is being assessed; and at the Tunu project in Greenland, where exploration is under way. “We think production of primary helium will be a gamechanger,” said Abraham‑Jones. “The supply chain for helium has always been fragile; that is now intensifying and there is no plan B.” He said Pulsar has identified geological reserves where there isn’t the typical natural gas flows, but rather “extremely high helium contents,” where as much or as little as required can be produced. “In conversations we have had with end-users, they are certainly very excited by the prospect of a supply that is independent of LNG production,” Abraham-Jones said. “And if fossil fuel production is to be phased down because of climate change, then there would be less helium as a byproduct of natural gas production.” There are big differences between Qatar’s massive output and the potential output of new primary startups. There are as many as 60 helium exploration companies around the world, most of which had not been doing well during a period of oversupply, with prices and investor interest declining, said Kornbluth. “This whole situation has provided a shot of adrenaline for the exploration companies,” he said. “However, an event like this doesn’t enable someone to drastically accelerate their progress toward production. “A handful of small producers are just reaching first production,” Kornbluth added. “...A typical small-scale plant produces 1% of what Qatar does; that is 0.3% of global supply. They can make good money if they can produce reliably, but they are not having significant impact on the balance between supply and demand.” <h3>Higher exploration and production costs </h3>Primary helium projects face a fundamental economic hurdle. Unlike LNG‑linked helium, which is essentially “free” once natural gas is processed, standalone helium must cover the full costs of exploration, drilling, pipelines and processing facilities. On the plus side, these projects are relatively small and do not require flaring. Even so, timelines remain challenging. Modest developments typically need about 12 months for permitting and fabrication, with Pulsar’s Minnesota project still at least a year from first production. Canusa EPC, which designs and delivers helium processing facilities, was awarded in March a CO2 and helium EPC project for US Energy Corp. in Montana. Speaking to the Journal of Commerce, Forrest Churchill, Canusa’s principal for project development, warned against assuming that supply can be scaled quickly. “What’s happening in the Strait of Hormuz is developing far faster than industrial projects can respond,” he said. New equipment typically takes nine months from order to delivery, and any new capacity would not be in production for at least 12 months, Churchill said. Rental plants could shorten timelines, but offer lower margins and limited throughput. For long-distance deliveries, liquefaction is necessary, but a liquefaction plant would take three years to build, he said. Most facilities in the US use pressurized tube trailers to deliver, but that limits distance. “Helium will always find a way out,” Churchill said. “In that high-pressure gas state, the leakage rate limits transport to where you can drive in one to two weeks.” Churchill expects to see incremental capacity additions — small to mid‑scale plants capturing local markets and signing direct supply contracts with end-users, bypassing the majors. He noted that developing new helium projects can be challenging because they are often located in areas without existing infrastructure or services, having no links to historic oil and gas production. “Developers have to consider — how am I going to build it, staff it? There is likely no local knowledge,” he said. Contact Felicity Landon at <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com</a>. </div>

The war-forced shutdown of Qatar’s Ras Laffan LNG refinery in March triggered the most serious disruption to the global helium market in more than a decade, prompting shippers to pursue industrial projects in alternative regions. The situation has exposed the vulnerabilities in this critical supply chain, pushed prices up sharply, and prompted a renewed focus on potential new helium production facilities in more secure areas. Components for these industrial facilities are a driver of global project cargo demand. The elimination of one-third of global helium supplies has also highlighted how vital the gas is — including for semiconductor and advanced electronics production, MRI machines and other medical diagnostics equipment, aerospace and defense, and precision manufacturing. The world’s major helium suppliers are tight-lipped on how they are dealing with the shortage, reluctant to share information that could be damaging to their reputation or share price, Phil Kornbluth, president of global industry consultant Kornbluth Helium Consulting, told the Journal of Commerce. “The helium business is an oligopoly consisting of six companies, and they tend to control the flow of information,” he said. “All of them are impacted by the loss of supply from Qatar, but at different levels. Not everyone has equal dependence on Qatar.” Industrial gas supplier and shipper Air Liquide, which sources more than half of its helium supply from Qatar, declared force majeure in March, implementing a supply allocation and pricing surcharges, Kornbluth noted. New opportunities More than 90% of the world’s helium is a byproduct of natural gas processing, so output cannot be increased or reduced independently of hydrocarbon production. This is where Thomas Abraham-Jones, CEO and co-founder of Pulsar Helium, sees an opportunity for new exploration and production facilities. Pulsar is pursuing standalone, or “primary helium” exploration, at its Topaz project in Minnesota, where flow testing continues and production potential is being assessed; and at the Tunu project in Greenland, where exploration is under way. “We think production of primary helium will be a gamechanger,” said Abraham‑Jones. “The supply chain for helium has always been fragile; that is now intensifying and there is no plan B.” He said Pulsar has identified geological reserves where there isn’t the typical natural gas flows, but rather “extremely high helium contents,” where as much or as little as required can be produced. “In conversations we have had with end-users, they are certainly very excited by the prospect of a supply that is independent of LNG production,” Abraham-Jones said. “And if fossil fuel production is to be phased down because of climate change, then there would be less helium as a byproduct of natural gas production.” There are big differences between Qatar’s massive output and the potential output of new primary startups. There are as many as 60 helium exploration companies around the world, most of which had not been doing well during a period of oversupply, with prices and investor interest declining, said Kornbluth. “This whole situation has provided a shot of adrenaline for the exploration companies,” he said. “However, an event like this doesn’t enable someone to drastically accelerate their progress toward production. “A handful of small producers are just reaching first production,” Kornbluth added. “...A typical small-scale plant produces 1% of what Qatar does; that is 0.3% of global supply. They can make good money if they can produce reliably, but they are not having significant impact on the balance between supply and demand.” Higher exploration and production costs Primary helium projects face a fundamental economic hurdle. Unlike LNG‑linked helium, which is essentially “free” once natural gas is processed, standalone helium must cover the full costs of exploration, drilling, pipelines and processing facilities. On the plus side, these projects are relatively small and do not require flaring. Even so, timelines remain challenging. Modest developments typically need about 12 months for permitting and fabrication, with Pulsar’s Minnesota project still at least a year from first production. Canusa EPC, which designs and delivers helium processing facilities, was awarded in March a CO2 and helium EPC project for US Energy Corp. in Montana. Speaking to the Journal of Commerce, Forrest Churchill, Canusa’s principal for project development, warned against assuming that supply can be scaled quickly. “What’s happening in the Strait of Hormuz is developing far faster than industrial projects can respond,” he said. New equipment typically takes nine months from order to delivery, and any new capacity would not be in production for at least 12 months, Churchill said. Rental plants could shorten timelines, but offer lower margins and limited throughput. For long-distance deliveries, liquefaction is necessary, but a liquefaction plant would take three years to build, he said. Most facilities in the US use pressurized tube trailers to deliver, but that limits distance. “Helium will always find a way out,” Churchill said. “In that high-pressure gas state, the leakage rate limits transport to where you can drive in one to two weeks.” Churchill expects to see incremental capacity additions — small to mid‑scale plants capturing local markets and signing direct supply contracts with end-users, bypassing the majors. He noted that developing new helium projects can be challenging because they are often located in areas without existing infrastructure or services, having no links to historic oil and gas production. “Developers have to consider — how am I going to build it, staff it? There is likely no local knowledge,” he said. Contact Felicity Landon at felicity@felicitylandon.com .

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Big drop in Middle East helium production drives alternative projects

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Prolonged Middle East war to weigh on sputtering US auto demand

Impending sale of Maher likely to reshape competitive dynamics at Port of NY-NJ

ONE to spend $1.2 billion in deal with HD Hyundai for six LNG-powered ships