<div class="phx-topic abstract-wrapper"><p>The fourth round of talks on the renegotiation of the North American Free Trade Agreement are careening toward an inclusive end.</p></div>

The fourth round of talks on the renegotiation of the North American Free Trade Agreement are careening toward an inclusive end.

<div><p>US demands that US-made components make up more than half of all parts used in auto production, and threatens to derail NAFTA talks.</p><p>RANCHO MIRAGE, California — The fourth round of talks on the <a>renegotiation</a> of the North American Free Trade Agreement (NAFTA) are careening toward an inclusive end this week, with US demands for a five-year sunset of NAFTA, more local content in manufactured items, and an end to the dispute resolution mechanism being major hangups.</p><p>West Coast freight forwarders, customs brokers, and customs attorneys meeting Friday in Rancho Mirage, California, understand the intricacies of trade agreements and processing of cross-border...

US demands that US-made components make up more than half of all parts used in auto production, and threatens to derail NAFTA talks. RANCHO MIRAGE, California — The fourth round of talks on the renegotiation of the North American Free Trade Agreement (NAFTA) are careening toward an inclusive end this week, with US demands for a five-year sunset of NAFTA, more local content in manufactured items, and an end to the dispute resolution mechanism being major hangups. West Coast freight forwarders, customs brokers, and customs attorneys meeting Friday in Rancho Mirage, California, understand the intricacies of trade agreements and processing of cross-border documentation. “We are the experts,” said Tom Gould, senior director customs and international trade at Sandler Travis & Rosenberg. What they are hearing from reports that have surfaced so far “is not good,” Gould told the annual Western Cargo Conference. The fourth of seven scheduled rounds of negotiations involving the United States, Canada, and Mexico to “renegotiate” NAFTA ends this week. It should be noted, however, that Mexico refuses to use that term and instead said the 22-year-old agreement will at best experience an “upgrade.” The Trump administration’s negotiating team angered Canada and Mexico with a demand that any agreement would sunset after five years, meaning it would have to be renegotiated again at that time. Also, the Trump administration wants the rules of origin for automobiles to include 85 percent NAFTA-country content, up from 62.5 percent now, and, in a new twist, 50 percent US content. US negotiators also want to end the dispute resolution provision in NAFTA that they claim hinders anti-dumping efforts of US industry. The new rules of origin would have big cost and practicality implications for NAFTA supply chains, as parts not listed under the agreement specifically receive a pass, no matter their origin, according to IHS Markit Automotive. The United States is looking to require that steel, aluminium, copper, plastics, electronics, and other parts be sourced from North America for vehicles to qualify. The US market accounted for 83 percent of NAFTA sales, and approximately 67 percent of NAFTA production in 2016, according to IHS Markit. Generally, the “America First” strategy the Trump administration is applying to all trade agreements such as NAFTA and the Trans-Pacific Partnership, is frustrating to its trading partners. Kim Campbell, president of MK Marin Trade Services in Markham, Ontario, said Canadian negotiators, whom she said are seasoned diplomats, used the term “ridiculous” to describe the US position on some key issues. “I actually heard that used in the last round. It’s scary,” she said. Furthermore, the public statements of the Trump administration versus those made by leaders of Mexico and Canada present a stark contrast in styles. “Messages coming out from Canada and Mexico are well thought out, and precise,” said Victor Gamas Luna, past president of the Confederation of Associations of Mexican Customs Brokers. Gamas compared those official statements with the confusion caused by President Donald Trump’s tweets. “The uncertainty does not help,” he said. The US proposal that any renegotiated NAFTA agreement contain a five-year sunset provision creates an environment of uncertainty not only for Mexico and Canada, but also for companies that are considering investments in the NAFTA economies, Gould said, referring to the long-term nature of multi-million-dollar investments. Canada and Mexico find the proposal to change rules of origin to increase North American content in automobiles to 85 percent impractical, and the 50-percents US content requirement to be blatantly one-sided. Campbell said that for Canada, “it is really hard to find a win in that.” In yet another proposal that upsets Canadian negotiators, the Trump administration wants to end NAFTA’s dispute resolution mechanism. For Canada, that is a “show-stopper,” Campbell said, and almost caused Canadian negotiators to walk away from the negotiations. Another disconcerting aspect about the current environment is that the NAFTA negotiations are taking place in what Mexicans view as an overall anti-Mexico attitude by the Trump administration that includes immigration and security issues. “Why is the US looking to pick a fight with Mexico?” Gamas said. Any agreements that are reached should not be for short-term political gain because they will affect Mexico’s relationship with the United States for the next 20 to 30 years. Beyond that, he added, “We are neighbors forever.” Contact Bill Mongelluzzo at bill.mongelluzzo@ihsmarkit.com and follow him on Twitter: @billmongelluzzo .

Transport, Trade and Regulation News

NAFTA renegotiation progress elusive

<div class="phx-topic abstract-wrapper"><p>Noel Hacegaba made the announcement about the possible 1.8 million-TEU terminal during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero.</p></div>

Noel Hacegaba made the announcement about the possible 1.8 million-TEU terminal during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero.

Feature image

<div class="phx-topic"><p>The Port of Long Beach is exploring the possibility of developing what its new CEO said Thursday would be the “first conventional, zero-emissions container terminal in the world.” </p><p>Noel Hacegaba made the announcement during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero. </p><p>Hacegaba said Long Beach has inked an exclusive agreement with Brookfield Infrastructure Group for the potential development of a 1.8 million-TEU terminal designed for express vessels of up to 9,000-TEU capacity. The facility, being called the Metro Express Terminal, would be built on Long Beach’s Pier S and use zero-emission, human-operated equipment, container peel-off operations, 24/7 gate access, free-flow cargo stacks and zero-emission trucks, he said. </p><p>If it comes to fruition, Brookfield would partner with Nautilus International on the project, further details of which were not disclosed in Hacegaba’s presentation. </p><p>That presentation made clear that the Port of Long Beach will leverage marine terminal expansion, massive investment in intermodal rail connectivity and the creation of a supply chain information highway to handle a projected doubling of container volume by 2050. </p><p>That comes after the port handled a record 9.9 million laden and empty TEUs in 2025, according to data from the port. </p><p>“According to our latest cargo forecast, 2050 is the year our container volumes will reach 20 million TEUs,” Hacegaba said. Long Beach forecasts it will handle about 9 million TEUs this year, which although down from 2025, will still rank among its top five years, he said. </p><p>Long Beach faces an immediate challenge in adjusting to diminishing imports from China due to the Trump administration’s tariffs, and fewer exports to China because of that country’s counter tariffs. </p><p>“Six years ago, about 70% of all our cargo — imports and exports — was tied to China,” Hacegaba said. “Today that’s down to 60%.”  </p><p>While the tariffs have fostered a shifting of US trade to Vietnam and other countries in Southeast Asia, it has also highlighted the importance of adding “speed, precision and reliability” to the Long Beach supply chain as it competes for cargo with other US ports, he said.  </p><h3>Emphasis on on-dock rail connectivity </h3><p>Long Beach is investing $1.8 billion in its <a href="https://www.joc.com/article/inland-rail-connectivity-key-to-port-of-long-beach-growth-new-ceo-6133971">on-dock rail support facility at Pier B</a>, which is scheduled for completion in 2032. By assembling longer intermodal trains on dock rather than at near-dock sites that require a move by truck, the transfer of containers from vessel to train, which now takes slightly less than four days, will be reduced to 24 hours, Hacegaba said. </p><p>“Our terminals are driving the movement of rail to inland points,” he said. “TTI (Total Terminals International) is already moving more than 50% of its containers by rail.” </p><p>The <a href="https://www.joc.com/article/up-ns-deal-could-benefit-some-shippers-while-others-face-longer-transits-6143225">proposed merger of Union Pacific and Norfolk Southern</a>, which would create the nation’s first transcontinental railroad, holds the potential for faster, more efficient intermodal service to rail hubs in the eastern half of the country. Also, the announcement in November by BNSF Railway and CSX that they will <a href="https://www.joc.com/article/intermodal-cooperation-on-rails-has-declined-amid-cost-pressures-6152067">expand their intermodal partnership for service connecting Long Beach with rail terminals in the Ohio Valley and the Northeast</a> will cut transit times by as much as two days, Hacegaba said. </p><p>Five of Long Beach’s six container terminals last year handled more than 1 million TEUs, with two of those facilities handling more than 2 million TEUs. International Transportation Service and Macquarie Asset Management in July broke ground on a project that will fill in a 19-acre slip at Pier G that will enhance operational efficiency and build a single, continuous wharf measuring 3,400 feet that will accommodate the berthing of two super-post Panamax ships at the same time, Hacegaba said. </p><h3>Data sharing within the supply chain </h3><p>Hacegaba also announced that development is beginning on Long Beach’s CargoNav digital platform that will navigate the supply chain one container at a time, from arrival on the dock to shipment to its final destination. Further information will be released in the coming months.  </p><p>Emphasizing the importance of data sharing among carriers, terminal operators, truckers, railroads and shippers, Long Beach several years ago unveiled its supply chain information highway through its community portal. </p><p>“The goal was simple, end-to-end visibility via coast-to-coast connectivity,” Hacegaba said. </p><p>Long Beach in the coming weeks will also launch a universal trucking appointment system that members of the Harbor Trucking Association asked for several years ago, he said. </p><p>Projects that improve operational efficiency will be another priority, Hacegaba said, particularly those that continue to reduce harmful emissions from vessels, cargo-handling equipment, tugboats, trucks, and trains. </p><p>“As we continue our quest to zero emissions, we remain laser-focused on our core mission — moving more cargo more quickly, safely, efficiently, and sustainably,” he said  </p><p><i>Contact Bill Mongelluzzo at </i><a href="mailto:bill.mongelluzzo@spglobal.com"><i>bill.mongelluzzo@spglobal.com</i></a></p></div>

The Port of Long Beach is exploring the possibility of developing what its new CEO said Thursday would be the “first conventional, zero-emissions container terminal in the world.” Noel Hacegaba made the announcement during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero. Hacegaba said Long Beach has inked an exclusive agreement with Brookfield Infrastructure Group for the potential development of a 1.8 million-TEU terminal designed for express vessels of up to 9,000-TEU capacity. The facility, being called the Metro Express Terminal, would be built on Long Beach’s Pier S and use zero-emission, human-operated equipment, container peel-off operations, 24/7 gate access, free-flow cargo stacks and zero-emission trucks, he said. If it comes to fruition, Brookfield would partner with Nautilus International on the project, further details of which were not disclosed in Hacegaba’s presentation. That presentation made clear that the Port of Long Beach will leverage marine terminal expansion, massive investment in intermodal rail connectivity and the creation of a supply chain information highway to handle a projected doubling of container volume by 2050. That comes after the port handled a record 9.9 million laden and empty TEUs in 2025, according to data from the port. “According to our latest cargo forecast, 2050 is the year our container volumes will reach 20 million TEUs,” Hacegaba said. Long Beach forecasts it will handle about 9 million TEUs this year, which although down from 2025, will still rank among its top five years, he said. Long Beach faces an immediate challenge in adjusting to diminishing imports from China due to the Trump administration’s tariffs, and fewer exports to China because of that country’s counter tariffs. “Six years ago, about 70% of all our cargo — imports and exports — was tied to China,” Hacegaba said. “Today that’s down to 60%.” While the tariffs have fostered a shifting of US trade to Vietnam and other countries in Southeast Asia, it has also highlighted the importance of adding “speed, precision and reliability” to the Long Beach supply chain as it competes for cargo with other US ports, he said. Emphasis on on-dock rail connectivity Long Beach is investing $1.8 billion in its on-dock rail support facility at Pier B , which is scheduled for completion in 2032. By assembling longer intermodal trains on dock rather than at near-dock sites that require a move by truck, the transfer of containers from vessel to train, which now takes slightly less than four days, will be reduced to 24 hours, Hacegaba said. “Our terminals are driving the movement of rail to inland points,” he said. “TTI (Total Terminals International) is already moving more than 50% of its containers by rail.” The proposed merger of Union Pacific and Norfolk Southern , which would create the nation’s first transcontinental railroad, holds the potential for faster, more efficient intermodal service to rail hubs in the eastern half of the country. Also, the announcement in November by BNSF Railway and CSX that they will expand their intermodal partnership for service connecting Long Beach with rail terminals in the Ohio Valley and the Northeast will cut transit times by as much as two days, Hacegaba said. Five of Long Beach’s six container terminals last year handled more than 1 million TEUs, with two of those facilities handling more than 2 million TEUs. International Transportation Service and Macquarie Asset Management in July broke ground on a project that will fill in a 19-acre slip at Pier G that will enhance operational efficiency and build a single, continuous wharf measuring 3,400 feet that will accommodate the berthing of two super-post Panamax ships at the same time, Hacegaba said. Data sharing within the supply chain Hacegaba also announced that development is beginning on Long Beach’s CargoNav digital platform that will navigate the supply chain one container at a time, from arrival on the dock to shipment to its final destination. Further information will be released in the coming months. Emphasizing the importance of data sharing among carriers, terminal operators, truckers, railroads and shippers, Long Beach several years ago unveiled its supply chain information highway through its community portal. “The goal was simple, end-to-end visibility via coast-to-coast connectivity,” Hacegaba said. Long Beach in the coming weeks will also launch a universal trucking appointment system that members of the Harbor Trucking Association asked for several years ago, he said. Projects that improve operational efficiency will be another priority, Hacegaba said, particularly those that continue to reduce harmful emissions from vessels, cargo-handling equipment, tugboats, trucks, and trains. “As we continue our quest to zero emissions, we remain laser-focused on our core mission — moving more cargo more quickly, safely, efficiently, and sustainably,” he said Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com

Port News

Container lines

Trans-Pacific

North American ports

Marine terminals

Container Shipping News

Maritime

Long Beach considering development of ‘conventional, zero-emissions' terminal: CEO

<div class="phx-topic abstract-wrapper"><p>The terminal, developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports, aims to capture increasing east-west trade and is integrated with Egypt’s expanding transport network.</p></div>

The terminal, developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports, aims to capture increasing east-west trade and is integrated with Egypt’s expanding transport network.

<div class="phx-topic"><p>Red Sea Container Terminals (RSCT) opened Egypt’s first semiautomated facility Thursday at Sokhna Port near the southern entrance to the Suez Canal. </p><p>The new terminal was developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports and backed by a 30-year concession agreement with the Egyptian government. </p><p>“With an investment exceeding $1.8 billion in the country, we recognize Egypt as a pivotal market at the intersection of key global trade routes,” Clemence Cheng, managing director for Europe at Hutchison Ports, said in a statement. </p><p>The new terminal is coming online as major carriers begin to switch scheduled services from routes around the Cape of Good Hope to the Suez Canal and Red Sea. A <a href="https://www.joc.com/article/gemini-india-med-service-the-next-to-plan-return-to-red-seasuez-passage-6152941">Gemini Cooperation service on the India-Middle East-Mediterranean trade</a> is poised to <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">join Maersk’s MECL service</a> and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal. </p><p>Situated a few kilometers south of the southern Suez Canal entrance and within the world’s deepest man-made port basin, RSCT’s Phase I includes a 1,200-meter berth, a water depth of 18 meters and an initial handling capacity of 1.7 million TEUs. Plans are in place to expand that to 3.5 million TEUs across 2.6 kilometers of quay. </p><p>RSCT is integrated with Egypt’s expanding transport network, including direct highway and railway connections to major industrial zones, thus shortening transit times for imports, exports and transshipment. </p><p>Major liners have mostly avoided the Red Sea/Suez route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. </p><p>A Red Sea diversion tracker launched Wednesday by maritime consultancy Drewry found that in the week ended Jan. 11, 26 container ships — the highest number in five weeks — sailed through the Suez Canal.   </p><p><i>Contact Greg Knowler at </i><a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a><i>.</i></p></div>

Red Sea Container Terminals (RSCT) opened Egypt’s first semiautomated facility Thursday at Sokhna Port near the southern entrance to the Suez Canal.  The new terminal was developed by a consortium of Hutchison Ports, CMA Terminals and Cosco Shipping Ports and backed by a 30-year concession agreement with the Egyptian government.  “With an investment exceeding $1.8 billion in the country, we recognize Egypt as a pivotal market at the intersection of key global trade routes,” Clemence Cheng, managing director for Europe at Hutchison Ports, said in a statement.  The new terminal is coming online as major carriers begin to switch scheduled services from routes around the Cape of Good Hope to the Suez Canal and Red Sea. A  Gemini Cooperation service on the India-Middle East-Mediterranean trade  is poised to  join Maersk’s MECL service  and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal.  Situated a few kilometers south of the southern Suez Canal entrance and within the world’s deepest man-made port basin, RSCT’s Phase I includes a 1,200-meter berth, a water depth of 18 meters and an initial handling capacity of 1.7 million TEUs. Plans are in place to expand that to 3.5 million TEUs across 2.6 kilometers of quay.  RSCT is integrated with Egypt’s expanding transport network, including direct highway and railway connections to major industrial zones, thus shortening transit times for imports, exports and transshipment.  Major liners have mostly avoided the Red Sea/Suez route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa.  A Red Sea diversion tracker launched Wednesday by maritime consultancy Drewry found that in the week ended Jan. 11, 26 container ships — the highest number in five weeks — sailed through the Suez Canal.    Contact Greg Knowler at  greg.knowler@spglobal.com .

Asia-Europe

Egypt opens new semiautomated Red Sea terminal as Suez traffic grows

<div class="phx-topic abstract-wrapper"><p>Data center construction in the US has more than doubled since 2023, helping to counterbalance slower construction of warehouses, notes Jason Miller.</p></div>

Data center construction in the US has more than doubled since 2023, helping to counterbalance slower construction of warehouses, notes Jason Miller.

<div class="phx-topic"><p>The 2025 US freight market, especially the domestic truckload sector, underperformed expectations held at this time last year. The US Bureau of Labor Statistics’ (BLS) truckload producer price index (PPI), an estimate of the prices long-haul general freight carriers receive for trucking services, was down 1.8% year over year as of September, despite diesel prices rising 5.4% in the same period. </p><p>This raises the question: Why did the market underperform expectations, including my own prediction that the truckload PPI would climb between 6% and 10% year over year by late 2025? </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6152975_0.1.jpg"></img></div><p>The strongest culprit for the underperformance was the Trump administration’s tariffs, and more specifically, the uncertainty created by their inconsistent implementation, with expansions and rollbacks often coming at a moment’s notice. </p><p>Such uncertainty causes companies to postpone difficult-to-reverse investments, such as hiring new workers and expanding operations. Consistent with this, hiring by private employers reported by the BLS’s Job Openings and Labor Turnover Survey program has fallen to levels not seen since 2010, and manufacturing survey data on capital investment intentions aggregated across five regional Federal Reserve banks fell sharply in February after rising strongly in December 2024 and January 2025. </p><p>With this in mind, I expect demand for trucking services to show limited growth in the first half of 2026, with the potential to improve in the second half. </p><p>Seasonally adjusted single-family housing starts have consistently been down 7% to 11% year over year from March through August, the most recent data available, except for July. Improved housing activity has the potential to be the greatest catalyst for improved freight demand. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="37cf2651-a5fa-4c43-acf0-90fbc3d3695e"></dynamic-object></div><p>While cuts to the federal funds rate will make the financing of construction projects more affordable, uncertainty about raw material prices and labor availability — due in part to immigration crackdowns — may keep activity from rebounding as strongly as we would expect under conditions where the Federal Open Market Committee is loosening monetary policy. </p><p>Manufacturing demand likewise remains muted, with seasonally adjusted new orders aggregated across five Federal Reserve banks falling back into contraction in November. Historically, multiple months of new orders exceeding a value of 7.5 on this index have preceded turns in truckload pricing dynamics in carriers’ favor within a few months. In contrast, sharp falls in this index have accurately predicted weakening market conditions. </p><h3>Economic uncertainty could dull impact of rate cuts </h3><p>Interest rate cuts should spur demand for manufactured goods, but elevated economic policy uncertainty can mute the demand-generating impact of interest rate cuts. Likewise, the Institute for Supply Management’s separate <a href="https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/pmi/november/">manufacturing survey</a> continues to suggest weak conditions at US plants. </p><p>One sector likely to see continued strong demand through 2026 is the construction of data centers. Data center construction has more than doubled since 2023 and has helped counterbalance slower construction of warehouses. The need to equip data centers is further spurring demand for imported computers and electrical goods. Given weakness in other manufacturing sectors, such as paper — which generates more ton-miles of freight than transportation equipment plants — it is imperative carriers closely monitor for any signs of slowing data center construction activity. </p><p>Regarding supply-side dynamics, while much has been written about heightened enforcement of English-language proficiency requirements, non-domiciled commercial drivers’ licenses and immigration enforcement of carriers in California, I remain skeptical that supply-side reductions alone will shift pricing dynamics in carriers’ favor. DAT’s most recent spot market pricing data showed that spot rates, adjusted for fuel prices, underperformed in November relative to October across dry-van, refrigerated and flatbed sectors compared with the same months in prior years. </p><p>This is why demand factors will be front and center in 2026. </p><p><i>Jason Miller is an associate professor of logistics at Michigan State University. Contact him at </i><a href="mailto:mill2831@broad.msu.edu"><i>mill2831@broad.msu.edu.</i></a></p></div>

The 2025 US freight market, especially the domestic truckload sector, underperformed expectations held at this time last year. The US Bureau of Labor Statistics’ (BLS) truckload producer price index (PPI), an estimate of the prices long-haul general freight carriers receive for trucking services, was down 1.8% year over year as of September, despite diesel prices rising 5.4% in the same period. This raises the question: Why did the market underperform expectations, including my own prediction that the truckload PPI would climb between 6% and 10% year over year by late 2025? The strongest culprit for the underperformance was the Trump administration’s tariffs, and more specifically, the uncertainty created by their inconsistent implementation, with expansions and rollbacks often coming at a moment’s notice. Such uncertainty causes companies to postpone difficult-to-reverse investments, such as hiring new workers and expanding operations. Consistent with this, hiring by private employers reported by the BLS’s Job Openings and Labor Turnover Survey program has fallen to levels not seen since 2010, and manufacturing survey data on capital investment intentions aggregated across five regional Federal Reserve banks fell sharply in February after rising strongly in December 2024 and January 2025. With this in mind, I expect demand for trucking services to show limited growth in the first half of 2026, with the potential to improve in the second half. Seasonally adjusted single-family housing starts have consistently been down 7% to 11% year over year from March through August, the most recent data available, except for July. Improved housing activity has the potential to be the greatest catalyst for improved freight demand. While cuts to the federal funds rate will make the financing of construction projects more affordable, uncertainty about raw material prices and labor availability — due in part to immigration crackdowns — may keep activity from rebounding as strongly as we would expect under conditions where the Federal Open Market Committee is loosening monetary policy. Manufacturing demand likewise remains muted, with seasonally adjusted new orders aggregated across five Federal Reserve banks falling back into contraction in November. Historically, multiple months of new orders exceeding a value of 7.5 on this index have preceded turns in truckload pricing dynamics in carriers’ favor within a few months. In contrast, sharp falls in this index have accurately predicted weakening market conditions. Economic uncertainty could dull impact of rate cuts Interest rate cuts should spur demand for manufactured goods, but elevated economic policy uncertainty can mute the demand-generating impact of interest rate cuts. Likewise, the Institute for Supply Management’s separate manufacturing survey continues to suggest weak conditions at US plants. One sector likely to see continued strong demand through 2026 is the construction of data centers. Data center construction has more than doubled since 2023 and has helped counterbalance slower construction of warehouses. The need to equip data centers is further spurring demand for imported computers and electrical goods. Given weakness in other manufacturing sectors, such as paper — which generates more ton-miles of freight than transportation equipment plants — it is imperative carriers closely monitor for any signs of slowing data center construction activity. Regarding supply-side dynamics, while much has been written about heightened enforcement of English-language proficiency requirements, non-domiciled commercial drivers’ licenses and immigration enforcement of carriers in California, I remain skeptical that supply-side reductions alone will shift pricing dynamics in carriers’ favor. DAT’s most recent spot market pricing data showed that spot rates, adjusted for fuel prices, underperformed in November relative to October across dry-van, refrigerated and flatbed sectors compared with the same months in prior years. This is why demand factors will be front and center in 2026. Jason Miller is an associate professor of logistics at Michigan State University. Contact him at mill2831@broad.msu.edu.

Surface

Supply chain

‘Imperative’ that truckload carriers watch for any slowing in data center activity

<div class="phx-topic abstract-wrapper"><p>The weekly loop, known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd, would join Maersk’s MECL service and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez.</p></div>

The weekly loop, known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd, would join Maersk’s MECL service and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez.

<div class="phx-topic"><p>A Gemini Cooperation service on the India-Middle East-Mediterranean trade is poised to return to the shorter Red Sea/Suez Canal route “shortly,” a source at Gemini partner Maersk told the <i>Journal of Commerce.</i> </p><p>The weekly loop — known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd — calls Jebel Ali (Dubai), Mundra and Nhava Sheva (India), Salalah (Oman), Port Tangier (Morocco), Valencia (Spain) and Port Said (Egypt). </p><p>“Schedule readjustments are being worked out with Hapag-Lloyd to resume Red Sea transits,” said a Maersk executive with knowledge of the matter who did not want to be identified. “The service will shortly switch over.”  </p><p>Officially, the Danish carrier declined to provide any details of upcoming Gemini schedule changes when contacted by the <i>Journal of Commerce.</i> </p><p>“Currently, we cannot comment on any future sailings,” Maersk said in an email response. </p><p>The Gemini loop would <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">join Maersk’s MECL service</a> and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal. Major liners have mostly avoided the route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. </p><h3>Gemini has three India services </h3><p>The ME11/IMX schedule development should be viewed in the context of Gemini's operational fleet structure. For the India/Mediterranean trade coverage, Maersk has the flexibility to implement Red Sea/Suez transits because it is the sole tonnage provider, with space allotted to its partner, unlike the West India-North Europe string, which has a Hapag-Lloyd capacity sway. </p><p>Overall, the Gemini framework has three services out of India: two serving northwestern markets via the ports of Nhava Sheva and Mundra and one linking the southeastern region via Ennore, near Chennai. Capacity utilization out of Ennore is facing pressure due to the general slowdown in Indian exports, with Gemini scaling down space allocations for 2026, forwarder sources in Chennai said.  </p><p>The India-Mediterranean trade is now a crowded field for mainline carriers, driven by the entry of several regional carriers, including Turkish participants, and non-vessel-operating common carriers trying to cash in on the Red Sea disruption with direct services. </p><p>CMA CGM is <a href="https://www.joc.com/article/cma-cgm-reworks-india-med-loop-rotation-to-streamline-red-sea-operations-6142192">already operating its “Medex” service on the trade lane via the Red Sea/Suez route</a>, with the shift implemented in June 2025.  </p><p>Forwarder sources have put current average booking rates from Nhava Sheva to Port Said at between $1,400 and $1,500 per FEU, down about $200 over the past month despite sporadic sailing cuts on mainline services. </p><p><i>Contact Bency Mathew at </i><a href="mailto:bencyvmathew@gmail.com"><i>bencyvmathew@gmail.com.</i></a></p></div>

A Gemini Cooperation service on the India-Middle East-Mediterranean trade is poised to return to the shorter Red Sea/Suez Canal route “shortly,” a source at Gemini partner Maersk told the Journal of Commerce. The weekly loop — known as the ME11 for Maersk and the IMX for partner Hapag-Lloyd — calls Jebel Ali (Dubai), Mundra and Nhava Sheva (India), Salalah (Oman), Port Tangier (Morocco), Valencia (Spain) and Port Said (Egypt). “Schedule readjustments are being worked out with Hapag-Lloyd to resume Red Sea transits,” said a Maersk executive with knowledge of the matter who did not want to be identified. “The service will shortly switch over.” Officially, the Danish carrier declined to provide any details of upcoming Gemini schedule changes when contacted by the Journal of Commerce. “Currently, we cannot comment on any future sailings,” Maersk said in an email response. The Gemini loop would join Maersk’s MECL service and CMA CGM’s Indamex among major carriers in resuming transits through the Red Sea and Suez Canal. Major liners have mostly avoided the route since late 2023 when Houthi militants operating in Yemen began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. Gemini has three India services The ME11/IMX schedule development should be viewed in the context of Gemini's operational fleet structure. For the India/Mediterranean trade coverage, Maersk has the flexibility to implement Red Sea/Suez transits because it is the sole tonnage provider, with space allotted to its partner, unlike the West India-North Europe string, which has a Hapag-Lloyd capacity sway. Overall, the Gemini framework has three services out of India: two serving northwestern markets via the ports of Nhava Sheva and Mundra and one linking the southeastern region via Ennore, near Chennai. Capacity utilization out of Ennore is facing pressure due to the general slowdown in Indian exports, with Gemini scaling down space allocations for 2026, forwarder sources in Chennai said. The India-Mediterranean trade is now a crowded field for mainline carriers, driven by the entry of several regional carriers, including Turkish participants, and non-vessel-operating common carriers trying to cash in on the Red Sea disruption with direct services. CMA CGM is already operating its “Medex” service on the trade lane via the Red Sea/Suez route , with the shift implemented in June 2025. Forwarder sources have put current average booking rates from Nhava Sheva to Port Said at between $1,400 and $1,500 per FEU, down about $200 over the past month despite sporadic sailing cuts on mainline services. Contact Bency Mathew at bencyvmathew@gmail.com.

International ports

Gemini India-Med service the next to plan return to Red Sea/Suez passage

<div class="phx-topic abstract-wrapper"><p>Tailwind Shipping, which emerged during the pandemic as a vessel operating arm of retailer Lidl, has enabled booking and shipment management tools within CargoWise, the widely used forwarding software platform.</p></div>

Tailwind Shipping, which emerged during the pandemic as a vessel operating arm of retailer Lidl, has enabled booking and shipment management tools within CargoWise, the widely used forwarding software platform.

<div class="phx-topic"><p>Tailwind Shipping Lines, the vessel operating arm of supermarket retailer Lidl, said Wednesday it has integrated with CargoWise, the widely used forwarding software platform owned by WiseTech Global. </p><p>The move links CargoWise to a key customer segment that WiseTech has recently chased since acquiring software provider E2open in May 2025. </p><p>The integration with Tailwind enables forwarders to access within CargoWise the ocean booking, confirmation and management features for shipments moving on Tailwind vessels. That includes access to Tailwind’s schedules, dynamic rates and capacity, as well as the ability to digitally modify bookings without leaving CargoWise. </p><p>“The direct integration with CargoWise removes manual steps from the process and ensures data consistency from start to finish,” Nico Peters, vice president of commercial management at Tailwind, said in a statement. “It is a smarter, more digital shipping experience built around speed and accuracy, which exactly mirrors Tailwind’s key characteristics.” </p><p>Lidl launched Tailwind in 2022 amid global capacity constraints stemming from pandemic-induced container demand. The subsidiary has remained in business even as demand has normalized and now sells capacity to forwarders. It primarily handles the containerized transport of non-food goods, originally exclusively for Lidl, but now also for other customers. </p><p>Tailwind operates three liner services: the Panda Express Service (PAX) between China and the Mediterranean; the Tiger Express Service (TEX) between Bangladesh, Malaysia, Vietnam, and Sri Lanka; and the European short-sea operator Dolphin Express Service (DEX), which transports goods between Barcelona in Spain and Moerdijk in the Netherlands. Those services are built around schedule reliability by focusing on minimal port calls at smaller ports. </p><h3>May extend to rail, inland services </h3><p>While Tailwind is a container line, its affiliation with one of Europe’s largest retailers is notable, given WiseTech’s $2.1 billion acquisition of E2open in 2022. E2open’s customer base is largely shippers, and analysts have speculated since the transaction that WiseTech would target shippers more directly in the years ahead, given it already has the vast majority of the world’s forwarders as customers for its transportation management, customs compliance and accounting tools. </p><p>“More than 99% of the world’s ocean freight managed through CargoWise can be electronically booked directly with shipping lines and [non-vessel-operating common carriers],” Bjorn Schwarz, WiseTech’s integration and transformation manager, said in the statement. “Transparent real-time data sharing enables Tailwind to optimize their planning and capacity management and quickly act on market changes.” </p><p>Schwarz said Tailwind customers using CargoWise benefit from a simplified booking experience that removes double data entry, eliminates unnecessary emails, reduces human errors, and enhances visibility and productivity. </p><p>The companies said the plan is to extend the integration to eventually cover Tailwind’s rail and inland transport services. </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>

Tailwind Shipping Lines, the vessel operating arm of supermarket retailer Lidl, said Wednesday it has integrated with CargoWise, the widely used forwarding software platform owned by WiseTech Global.  The move links CargoWise to a key customer segment that WiseTech has recently chased since acquiring software provider E2open in May 2025.  The integration with Tailwind enables forwarders to access within CargoWise the ocean booking, confirmation and management features for shipments moving on Tailwind vessels. That includes access to Tailwind’s schedules, dynamic rates and capacity, as well as the ability to digitally modify bookings without leaving CargoWise.  “The direct integration with CargoWise removes manual steps from the process and ensures data consistency from start to finish,” Nico Peters, vice president of commercial management at Tailwind, said in a statement. “It is a smarter, more digital shipping experience built around speed and accuracy, which exactly mirrors Tailwind’s key characteristics.”  Lidl launched Tailwind in 2022 amid global capacity constraints stemming from pandemic-induced container demand. The subsidiary has remained in business even as demand has normalized and now sells capacity to forwarders. It primarily handles the containerized transport of non-food goods, originally exclusively for Lidl, but now also for other customers.  Tailwind operates three liner services: the Panda Express Service (PAX) between China and the Mediterranean; the Tiger Express Service (TEX) between Bangladesh, Malaysia, Vietnam, and Sri Lanka; and the European short-sea operator Dolphin Express Service (DEX), which transports goods between Barcelona in Spain and Moerdijk in the Netherlands. Those services are built around schedule reliability by focusing on minimal port calls at smaller ports.  May extend to rail, inland services  While Tailwind is a container line, its affiliation with one of Europe’s largest retailers is notable, given WiseTech’s $2.1 billion acquisition of E2open in 2022. E2open’s customer base is largely shippers, and analysts have speculated since the transaction that WiseTech would target shippers more directly in the years ahead, given it already has the vast majority of the world’s forwarders as customers for its transportation management, customs compliance and accounting tools.  “More than 99% of the world’s ocean freight managed through CargoWise can be electronically booked directly with shipping lines and [non-vessel-operating common carriers],” Bjorn Schwarz, WiseTech’s integration and transformation manager, said in the statement. “Transparent real-time data sharing enables Tailwind to optimize their planning and capacity management and quickly act on market changes.”  Schwarz said Tailwind customers using CargoWise benefit from a simplified booking experience that removes double data entry, eliminates unnecessary emails, reduces human errors, and enhances visibility and productivity.  The companies said the plan is to extend the integration to eventually cover Tailwind’s rail and inland transport services.  Contact Eric Johnson at  eric.johnson@spglobal.com .

Forwarding

Logistics Technology News

Shipper-turned-carrier integrates with CargoWise to target forwarder business

Use code GTW595 at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code NYW26 at checkout to save 25% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

NEW YEAR SALE

Use code NYW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

Subscribe today using code NYW26 at checkout and save 25% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

Use code NYW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Get into a Gold subscription today and save $500 by using code NYW995 at checkout!

Subscribe Now - Anonymous to Gold - Wide Box

NEW YEAR SALE: Use code NYW26 to save 25% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

NEW YEAR SALE: Subscribe today using code NYW26 at checkout and save 25% on a Silver or Silver Plus annual subscription!

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

UPGRADE TO GOLD AND SAVE: Use code GTW595 at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

NEW YEAR SALE: Get into a Gold subscription today and save $500 by using code NYW995 at checkout!

Subscribe Now - Anonymous to Gold - Offer Box

NEW YEAR SALE: Use code NYW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

NEW YEAR SALE: Use code NYW995 at checkout to save $500 on a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

TPM Conference - Rectangle Box

Attend TPM26

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

Discover the news and analysis of supply chain strategies, sourcing and trends covered by the <i>Journal of Commerce</i>. Comprehensive coverage includes customs, trade news, transport news and the latest information about trade regulations.

Stay informed with the latest regulation news and trade updates. Explore comprehensive transportation news and trade regulations today.

Transport, Trade and Regulation News | Journal of Commerce

The <i>Journal of Commerce’s</i> supply chain news and analysis impacting the management of end-to-end supply chains reports on supply chain strategies, cargo visibility, inventory trends, sourcing, customs certification and contract logistics. Supply chain news coverage also delves into refrigerated shipping advancements and management of inventory status, regulatory updates and government funding projects.

Our logistics technology news include logistics technology startups, solutions, and the impact of technology on logistics and supply chain management.

Logistics Technology News | Journal of Commerce

A thorough cool cargoes news by Journal of Commerce. Learn about the latest trends in refrigerated cargo transportation, weight capacity, technology, and more.

Cool Cargo News | Journal of Commerce

Cool Cargo News

Journal of Commerce keeps you informed on the latest last mile news with comprehensive coverage of carriers, logistics, and last mile transportation solutions.

Last Mile News | Journal of Commerce

Last Mile News

Discover the latest industrial real estate news and trends. Covering projects, real estate supply chain, logistics, pricing, cross dock facilities, and more.

Industrial Real Estate News | Journal of Commerce

Industrial Real Estate News

Stay updated on supply chain strategies, cargo visibility, inventory trends and more with our comprehensive supply chain news and analysis.

Latest News

More News & Analysis

Long Beach considering development of ‘conventional, zero-emissions' terminal: CEO

Egypt opens new semiautomated Red Sea terminal as Suez traffic grows

‘Imperative’ that truckload carriers watch for any slowing in data center activity