<div class="phx-topic abstract-wrapper">Swiss carrier Norasia Lines is being forced to shift some its trans-Pacific cargo to other carriers </div>

Swiss carrier Norasia Lines is being forced to shift some its trans-Pacific cargo to other carriers

<div>Swiss carrier Norasia Lines is being forced to shift some its trans-Pacific cargo to other carriers after four of its ships were taken out of service for dry-docking in Hong Kong.The vessels being repaired are deployed on the Norasia Los Angeles Express or its Pacific Northwest services.Norasia said the docking of the vessels has caused, ''minimal upset to schedules on the Pacific, as cargo has been moved, or is to be moved, on other lines.''On the Norasia PNW service, cargo was shipped out of Hong Kong on board Zim Israel Navigation Co.'s Zim Vancouver and the P&amp;O Nedlloyd vessel Damietta....

Swiss carrier Norasia Lines is being forced to shift some its trans-Pacific cargo to other carriers after four of its ships were taken out of service for dry-docking in Hong Kong. The vessels being repaired are deployed on the Norasia Los Angeles Express or its Pacific Northwest services.Norasia said the docking of the vessels has caused, ''minimal upset to schedules on the Pacific, as cargo has been moved, or is to be moved, on other lines.'' On the Norasia PNW service, cargo was shipped out of Hong Kong on board Zim Israel Navigation Co.'s Zim Vancouver and the P&O Nedlloyd vessel Damietta. More U.S.-bound shipments are expected to be moved on Maersk Sealand's Sine Maersk. All four of the vessels withdrawn from service are German-built ''speedboats,'' each with about 1,400-TEU capacity and a 26-knot service speed. The ice-strengthened ships, delivered in 1998, were deployed on the Montreal-Europe service for about a year before being transferred to the trans-Pacific trades when Norasia decided to enter that market. They are docked at Hong Kong United Dockyards for a series of modification programs and ''protective maintenance'' procedures, according to Norasia. One of the ships, the Norasia Shamsha has been at the yard for 11 days because of concerns over its propeller shaft. It is to leave the yard this month. Norasia officials have rejected suggestions of design fault problems in and around the propeller and shaft on this vessel, but they confirm that the propeller shaft from the Shamsha has been shipped back to LIPS manufacturers in the Netherlands for investigation. ''We are making an investigation with LIPS to see whether the propeller design is as per specification. It is not a design fault. We are undertaking protective maintenance,'' said one official. The other three ships, Norasia Scarlett, Norasia Sheba and Norasia Samantha, are spending about three days at the shipyard to have stiffening structures fitted in void spaces at the after end of the vessels. These spaces are normally used as storage holds, and are not used for cargo. The docking of these ships, according to Norasia sources, is being taken as a precautionary measure, and not, as some sources suggest, because of cracks appearing in the hull area around this space.

Maritime

NORASIA YANKS SHIPS FOR REPAIRS, TRANSFERS CARGO

<div class="phx-topic abstract-wrapper">Union Pacific Railroad called the decision by federal regulators to rule its filing as “incomplete” a minor setback that won’t significantly change the timeline for its hoped-for acquisition of NS.</div>

Union Pacific Railroad called the decision by federal regulators to rule its filing as “incomplete” a minor setback that won’t significantly change the timeline for its hoped-for acquisition of NS.

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<div class="phx-topic">Union Pacific Railroad said Tuesday it is moving quickly to address deficiencies that led federal regulators to deem its application to acquire Norfolk Southern Railway “incomplete,” and expects to refile an updated application within “weeks.” Once UP resubmits its application, the regulatory process will restart with a fresh 30-day review period during which the US Surface Transportation Board (STB) will determine whether the new filing is complete. Interested parties may file comments during that period, and UP and NS can respond.  “We are disappointed that the STB determined we needed to provide more information after providing close to 7,000 pages,” UP CEO Jim Vena said during the railroad’s fourth-quarter earnings call Tuesday. “Our response will take a few weeks to prepare and then we will refile our application as soon as possible.  “We view this as a short-term blip and do not expect a significant change to the timeline as we are still targeting closing in the first half of 2027,” he added. Although UP did not provide a specific refiling date, Vena said the company would announce the timing in a subsequent public statement and that a revised application could be sent to the STB in March. The <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">STB determined that UP failed to provide</a> sufficient information on future growth, citing inconsistencies in baseline assumptions across different sections of its application. Opponents of the $85 billion deal have also argued that Union Pacific’s projections, including removing 2 million truckloads from highways in large part through 1.17 million truckload-to-intermodal conversions within three years, are overly optimistic. Vena said long-haul intermodal routes exceeding 2,000 miles historically have lower rail market share because shippers are reluctant to accept handoffs between railroads in hubs such as Chicago. Under a combined Union Pacific–Norfolk Southern network, he said, market share would more closely resemble that of 1,000- to 1,500-mile lanes, where rail penetration is higher because a single railroad handles the entire move. Other railroads have argued that handling that volume would require UP to operate as many as 15 additional trains per day, potentially congesting the network. UP said it would not degrade overall service. “This morning, we have over 2,000 movements, foreign railroads, and local trains running on our network,” Vena said on the earnings call. “If we add 10 or 15 more trains a day, it's a pretty small rounding error on the impact for the network.”  UP also addressed the STB’s objection to the railroad’s failure to disclose a document known as Schedule 5.6, which outlines conditions under which the company could walk away from the transaction.  “I don't like it because I don't think it adds to the merits, but guess what? I wish Jim Vena had a totalitarian system that I could get every decision that I want, but I don't even get it at home with my wife and kids, let alone with the regulator,” Vena said. <h3>Not banking on economic turnaround this year </h3>While there were few non-merger-related questions on Tuesday’s call, Union Pacific did offer a cautious economic outlook for 2026, acknowledging that pricing gains across its businesses will be difficult to achieve.  “S&amp;P Global's 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated,” said Jennifer Hanneman, UP’s chief financial officer. “In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in . Our commitment to yielding price dollars that exceed inflation dollars has not changed, but price may not be a driver of our improving margins in 2026.” S&amp;P Global is the parent company of the Journal of Commerce. UP said 2026 is likely to be challenging for international intermodal traffic, with port volumes expected to decline year over year through at least the first half. The railroad said it remains bullish on domestic intermodal, which set volume records in 2025, though it did not provide a specific forecast. Union Pacific took market share from rival BNSF Railway in California during the second half of last year, according to data visibility platform , while also winning freight from the truckload market. “We’ve had over-the-road wins with Uber Freight, over-the-road wins in Phoenix, wins in Kansas City,” Kenny Rocker, UP’s executive vice president of sales and marketing, said on the call. “So we're coming from a position of strength and we're excited about it.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a> </div>

Union Pacific Railroad said Tuesday it is moving quickly to address deficiencies that led federal regulators to deem its application to acquire Norfolk Southern Railway “incomplete,” and expects to refile an updated application within “weeks.”  Once UP resubmits its application, the regulatory process will restart with a fresh 30-day review period during which the US Surface Transportation Board (STB) will determine whether the new filing is complete. Interested parties may file comments during that period, and UP and NS can respond.   “We are disappointed that the STB determined we needed to provide more information after providing close to 7,000 pages,” UP CEO Jim Vena said during the railroad’s fourth-quarter earnings call Tuesday. “Our response will take a few weeks to prepare and then we will refile our application as soon as possible.   “We view this as a short-term blip and do not expect a significant change to the timeline as we are still targeting closing in the first half of 2027,” he added.  Although UP did not provide a specific refiling date, Vena said the company would announce the timing in a subsequent public statement and that a revised application could be sent to the STB in March.  The  STB determined that UP failed to provide  sufficient information on future growth, citing inconsistencies in baseline assumptions across different sections of its application. Opponents of the $85 billion deal have also argued that Union Pacific’s projections, including removing 2 million truckloads from highways in large part through 1.17 million truckload-to-intermodal conversions within three years, are overly optimistic.  Vena said long-haul intermodal routes exceeding 2,000 miles historically have lower rail market share because shippers are reluctant to accept handoffs between railroads in hubs such as Chicago. Under a combined Union Pacific–Norfolk Southern network, he said, market share would more closely resemble that of 1,000- to 1,500-mile lanes, where rail penetration is higher because a single railroad handles the entire move.  Other railroads have argued that handling that volume would require UP to operate as many as 15 additional trains per day, potentially congesting the network. UP said it would not degrade overall service.  “This morning, we have over 2,000 movements, foreign railroads, and local trains running on our network,” Vena said on the earnings call. “If we add 10 or 15 more trains a day, it's a pretty small rounding error on the impact for the network.”   UP also addressed the STB’s objection to the railroad’s failure to disclose a document known as Schedule 5.6, which outlines conditions under which the company could walk away from the transaction.   “I don't like it because I don't think it adds to the merits, but guess what? I wish Jim Vena had a totalitarian system that I could get every decision that I want, but I don't even get it at home with my wife and kids, let alone with the regulator,” Vena said.  Not banking on economic turnaround this year  While there were few non-merger-related questions on Tuesday’s call, Union Pacific did offer a cautious economic outlook for 2026, acknowledging that pricing gains across its businesses will be difficult to achieve.   “S&P Global's 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated,” said Jennifer Hanneman, UP’s chief financial officer. “In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in . Our commitment to yielding price dollars that exceed inflation dollars has not changed, but price may not be a driver of our improving margins in 2026.”  S&P Global is the parent company of the Journal of Commerce.  UP said 2026 is likely to be challenging for international intermodal traffic, with port volumes expected to decline year over year through at least the first half. The railroad said it remains bullish on domestic intermodal, which set volume records in 2025, though it did not provide a specific forecast.  Union Pacific took market share from rival BNSF Railway in California during the second half of last year, according to data visibility platform , while also winning freight from the truckload market.  “We’ve had over-the-road wins with Uber Freight, over-the-road wins in Phoenix, wins in Kansas City,” Kenny Rocker, UP’s executive vice president of sales and marketing, said on the call. “So we're coming from a position of strength and we're excited about it.”  Contact Ari Ashe at  ari.ashe@spglobal.com  

Rail News

North-American rail

Revised Norfolk Southern merger application will be refiled in ‘weeks’: UP

<div class="phx-topic abstract-wrapper">“Lumpy” project cargo demand is expected to lead to overutilization of the global multipurpose vessel fleet, participants in a Journal of Commerce webinar were told.</div>

“Lumpy” project cargo demand is expected to lead to overutilization of the global multipurpose vessel fleet, participants in a Journal of Commerce webinar were told.

<div class="phx-topic">Strong and sustained volumes in the power business through 2027 and a promising outlook for mining will keep project cargo volumes buoyant, but only if shippers can maintain flexibility and secure tightening slots on multipurpose vessels, speakers participating in a Journal of Commerce webinar said. Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, said he had not seen a “hint of slowdown” coming into 2026. And Jonathan Cournoyer, global discipline director for logistics at management, engineering and development consultancy HATCH, added that the push for security of supply of critical and rare minerals has prompted many countries to develop their own mines, further supporting project cargo demand this year. ”We’re lucky enough to have a lot of work in the pipeline,” Cournoyer said. “But we’re still a little bit worried about what could happen.” Pain points for the pair, both speakers on a Journal of Commerce breakbulk and project cargo 2026 outlook webcast on Jan. 22, include geopolitics, tariffs and near-static multipurpose and heavy-lift fleet supply. Recognizing that tariffs are “here to stay,” Cournoyer said HATCH accounts for tariffs in its evaluation of project costs. “For our US projects, this is very critical because a lot of the vendors located in the US that fabricate in the US actually become a lot more competitive than they would have if the tariffs were not there,” he said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fb97885d-0b88-4d65-99f6-10558c9e7c79"></dynamic-object></div>Odell also spoke about the practical issue of cargo readiness and making sure GE Power “can keep up with the vessels that we are putting on charter or have contracts with.” He said he manages the “ocean uncertainty” of tariffs by being flexible with vessels and route solutions and working closely with carriers. ”It’s just making sure I have the best information at the time to help plan, but keeping that flexibility in there,” Odell said. Odell said he leans on contracts of affreightments to secure shipping slots and rates at least a year out, building them around GE Power’s highest-volume areas or highest-volume flows. “That way, when it comes time for the projects to start rolling, they know who the contacts are, they can build that relationship with the carrier and the provider, and they can work with them directly and get exactly what they need,” he said. <h3>‘Lumpy’ cargo demand muddies outlook </h3>Also on the webcast, Susan Oatway, senior research analyst for breakbulk and project cargo at S&amp;P Global Market Intelligence, said that the cargo demand picture was “lumpy.” With crude oil prices down to nearly $60 per barrel, she described that cargo-supplying sector as “decidedly patchy.” S&amp;P Global is the parent company of the Journal of Commerce.On the fleet outlook, Oatway said the focus is on heavy-lift capability because the growth in demand is “almost certainly going to be there.” She forecasts heavy-lift fleet growth of 4.1% per year for the next four years, with newbuilding orders “trickling in.” Taken together, MPV/heavy-lift fleet growth is expected to average just under 2% through 2029, according to a Journal of Commerce/S&amp;P Global forecast. “My worry is that there are too many factors that can destabilize that market,” she said. “Excess container capacity, reopening of the Red Sea, increased port congestion — all of those will have a destabilizing effect in a way that is quite difficult to predict. ”And that’s even before we mention geopolitics and tariffs,” she added. Odell added that he has concerns that freight rates are going to increase due to overutilization because of what he called “a gold rush for power generation” in the US. ”It’s always trying to keep ahead of that,” he said, referring to those with cargo from other sectors having to book early to secure the capacity they need. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com.</a></div>

Strong and sustained volumes in the power business through 2027 and a promising outlook for mining will keep project cargo volumes buoyant, but only if shippers can maintain flexibility and secure tightening slots on multipurpose vessels, speakers participating in a Journal of Commerce webinar said. Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, said he had not seen a “hint of slowdown” coming into 2026. And Jonathan Cournoyer, global discipline director for logistics at management, engineering and development consultancy HATCH, added that the push for security of supply of critical and rare minerals has prompted many countries to develop their own mines, further supporting project cargo demand this year. ”We’re lucky enough to have a lot of work in the pipeline,” Cournoyer said. “But we’re still a little bit worried about what could happen.” Pain points for the pair, both speakers on a Journal of Commerce breakbulk and project cargo 2026 outlook webcast on Jan. 22, include geopolitics, tariffs and near-static multipurpose and heavy-lift fleet supply. Recognizing that tariffs are “here to stay,” Cournoyer said HATCH accounts for tariffs in its evaluation of project costs. “For our US projects, this is very critical because a lot of the vendors located in the US that fabricate in the US actually become a lot more competitive than they would have if the tariffs were not there,” he said. Odell also spoke about the practical issue of cargo readiness and making sure GE Power “can keep up with the vessels that we are putting on charter or have contracts with.” He said he manages the “ocean uncertainty” of tariffs by being flexible with vessels and route solutions and working closely with carriers. ”It’s just making sure I have the best information at the time to help plan, but keeping that flexibility in there,” Odell said. Odell said he leans on contracts of affreightments to secure shipping slots and rates at least a year out, building them around GE Power’s highest-volume areas or highest-volume flows. “That way, when it comes time for the projects to start rolling, they know who the contacts are, they can build that relationship with the carrier and the provider, and they can work with them directly and get exactly what they need,” he said. ‘Lumpy’ cargo demand muddies outlook Also on the webcast, Susan Oatway, senior research analyst for breakbulk and project cargo at S&P Global Market Intelligence, said that the cargo demand picture was “lumpy.” With crude oil prices down to nearly $60 per barrel, she described that cargo-supplying sector as “decidedly patchy.” S&P Global is the parent company of the Journal of Commerce. On the fleet outlook, Oatway said the focus is on heavy-lift capability because the growth in demand is “almost certainly going to be there.” She forecasts heavy-lift fleet growth of 4.1% per year for the next four years, with newbuilding orders “trickling in.” Taken together, MPV/heavy-lift fleet growth is expected to average just under 2% through 2029, according to a Journal of Commerce/S&P Global forecast. “My worry is that there are too many factors that can destabilize that market,” she said. “Excess container capacity, reopening of the Red Sea, increased port congestion — all of those will have a destabilizing effect in a way that is quite difficult to predict. ”And that’s even before we mention geopolitics and tariffs,” she added. Odell added that he has concerns that freight rates are going to increase due to overutilization because of what he called “a gold rush for power generation” in the US. ”It’s always trying to keep ahead of that,” he said, referring to those with cargo from other sectors having to book early to secure the capacity they need. Contact Carly Fields at carly.fields@spglobal.com.

Energy projects

Project cargo

Breakbulk News

Power, mining bullishness offset by tightening MPV ship supply

<div class="phx-topic abstract-wrapper">Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. </div>

Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia.

<div class="phx-topic">Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at <a href="keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

Container lines

Marine terminals

International ports

Container Shipping News

Wan Hai expands Asia terminal network with $89 million Osaka port lease

<div class="phx-topic abstract-wrapper">Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.</div>

Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.

<div class="phx-topic">Echo Global Logistics’ <a href="https://www.joc.com/article/broker-echo-buys-its-logistics-to-build-drayage-intermodal-presence-6155888">acquisition of ITS Logistics</a> cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. <h3>ITS ‘fills a gap’ </h3>The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Echo Global Logistics’ acquisition of ITS Logistics cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. ITS ‘fills a gap’ The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Drayage

Truckload

Truck brokers

ITS acquisition a ‘big bite’ for Echo in market diversification drive: CEO

<div class="phx-topic abstract-wrapper">After announcing a pause on ship attacks in November, the Iran-backed militants posted a pair of threatening videos over the weekend that are sure to cause fresh concerns for ocean carriers planning a return to the Red Sea.</div>

After announcing a pause on ship attacks in November, the Iran-backed militants posted a pair of threatening videos over the weekend that are sure to cause fresh concerns for ocean carriers planning a return to the Red Sea.

<div class="phx-topic">Yemen’s Houthi militants have warned of new attacks on shipping in the Red Sea as tensions escalate between the US and Iran, raising questions over whether moves by some carriers to return services to the shorter Suez Canal route will actually happen. A Houthi video posted on YouTube over the weekend showed a ship on fire accompanied by the headline: “Soon.” It was followed by another video, this one from Houthi spokesman Brigadier Yahya Saree, pointing to “the escalation of possibilities” of the US launching a military strike against Iran, which he said would be met by retaliation against the US and Israel. The Iran-backed Houthi announced a pause on ship attacks in November following the Israel-Hamas ceasefire in Gaza that was agreed the previous month and have so far honored that pledge. But Iran’s clampdown on anti-government protests in late December sparked a threat earlier this month by US President Donald Trump to respond militarily, with a carrier strike group led by the USS Abraham Lincoln now heading for the region. Even before the new Houthi threat, CMA CGM, one of the main Red Sea users over the past two years, said it would <a href="https://www.joc.com/article/cma-cgm-backs-off-plans-to-resume-suez-transits-for-asia-europe-services-6155264">scale back plans to send three Asia-Europe westbound services</a> through the Suez, citing the “complex and uncertain international context.” <h3>Maersk India-US service due to begin shorter route </h3>Maersk’s <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">MECL service from India to the US East Coast</a> is due to be rerouted through the Suez and Red Sea beginning Monday. While no change of plan has been announced, the volatility in the region prompted the carrier to include a caveat in its Jan. 15 advisory announcing a return to the shorter route. “Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route,” the carrier said. While Maersk tests the waters and CMA CGM continues to send regional and back-haul services through the Red Sea, most of the other major carriers are content to maintain longer transits around southern Africa until the fluid geopolitical environment stabilizes. Carriers have used the longer route since the Houthis began attacks against commercial shipping in late 2023 in response to the Israel-Hamas war. Resuming services through the Suez represents more than just a routing change. Oversupplied carriers have benefited from the longer route absorbing about 8% of global capacity, preventing rates from falling. “A full-scale return of liner services to the Red Sea would initially be disruptive, with increased risks of port congestion, landside capacity constraints and short-term cost implications,” Bjoern Schoon, senior vice president of ocean freight at DHL Global Forwarding/Asia-Pacific, said in a market update last week. “However, once networks stabilize, it will benefit shippers through faster transit times, and the trade is likely to become more competitive on pricing,” Schoon added. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>.</div>

Yemen’s Houthi militants have warned of new attacks on shipping in the Red Sea as tensions escalate between the US and Iran, raising questions over whether moves by some carriers to return services to the shorter Suez Canal route will actually happen. A Houthi video posted on YouTube over the weekend showed a ship on fire accompanied by the headline: “Soon.” It was followed by another video, this one from Houthi spokesman Brigadier Yahya Saree, pointing to “the escalation of possibilities” of the US launching a military strike against Iran, which he said would be met by retaliation against the US and Israel. The Iran-backed Houthi announced a pause on ship attacks in November following the Israel-Hamas ceasefire in Gaza that was agreed the previous month and have so far honored that pledge. But Iran’s clampdown on anti-government protests in late December sparked a threat earlier this month by US President Donald Trump to respond militarily, with a carrier strike group led by the USS Abraham Lincoln now heading for the region. Even before the new Houthi threat, CMA CGM, one of the main Red Sea users over the past two years, said it would scale back plans to send three Asia-Europe westbound services through the Suez, citing the “complex and uncertain international context.” Maersk India-US service due to begin shorter route Maersk’s MECL service from India to the US East Coast is due to be rerouted through the Suez and Red Sea beginning Monday. While no change of plan has been announced, the volatility in the region prompted the carrier to include a caveat in its Jan. 15 advisory announcing a return to the shorter route. “Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route,” the carrier said. While Maersk tests the waters and CMA CGM continues to send regional and back-haul services through the Red Sea, most of the other major carriers are content to maintain longer transits around southern Africa until the fluid geopolitical environment stabilizes. Carriers have used the longer route since the Houthis began attacks against commercial shipping in late 2023 in response to the Israel-Hamas war. Resuming services through the Suez represents more than just a routing change. Oversupplied carriers have benefited from the longer route absorbing about 8% of global capacity, preventing rates from falling. “A full-scale return of liner services to the Red Sea would initially be disruptive, with increased risks of port congestion, landside capacity constraints and short-term cost implications,” Bjoern Schoon, senior vice president of ocean freight at DHL Global Forwarding/Asia-Pacific, said in a market update last week. “However, once networks stabilize, it will benefit shippers through faster transit times, and the trade is likely to become more competitive on pricing,” Schoon added. Contact Greg Knowler at  greg.knowler@spglobal.com .

Latest Houthi threat renews questions about Suez route as US-Iran tensions rise 

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