<div class="phx-topic abstract-wrapper">One of Israel's wealthiest business concerns, Ofer Brothers Shipping Co., will acquire a 53 percent </div>

One of Israel's wealthiest business concerns, Ofer Brothers Shipping Co., will acquire a 53 percent

<div>One of Israel's wealthiest business concerns, Ofer Brothers Shipping Co., will acquire a 53 percent stake in Israel Corp., presently owned by the Eisenberg family. As a result, it will become the largest shareholder in container line Zim Israel Navigation Co.Ofer Bros. will acquire the Eisenberg shares for $320 million, said Ofer Bros. spokesman Ram Rav. The deal will take 90 days to complete, he added.Ofer will gain its stake in Zim because Israel Corp. held a 48.9 percent holding in the large container shipping line, whose origins date back to the founding of the State of Israel.The Israeli government...

One of Israel's wealthiest business concerns, Ofer Brothers Shipping Co., will acquire a 53 percent stake in Israel Corp., presently owned by the Eisenberg family. As a result, it will become the largest shareholder in container line Zim Israel Navigation Co. Ofer Bros. will acquire the Eisenberg shares for $320 million, said Ofer Bros. spokesman Ram Rav. The deal will take 90 days to complete, he added.Ofer will gain its stake in Zim because Israel Corp. held a 48.9 percent holding in the large container shipping line, whose origins date back to the founding of the State of Israel. The Israeli government holds a further 48.6 percent of Zim shares, while the remaining 2.5 percent is held by private investors. Ofer Bros., besides being one of the wealthiest family businesses in Israel, own a diversified shipping portfolio that includes interests in the United States, North Europe and Southeast Asia. Control of the family shipping business is split between the two brothers, Yuli and Sami. Yuli oversees control of Ofer Bros. shipping operations in Haifa, while Sami oversees overseas interests. Ofer Bros. has worked closely with Zim for many years. The company has chartered several container ships to Zim on long term and bare boat deals. Sami Ofer's empire includes a 38 percent holding in the giant cruise line Royal Caribbean International. That holding is in partnership with the Chicago-based Pritzer family. Also included in the Ofer's overseas portfolio is the London-based ship management company Zodiac Maritime. It has shipping interests in Singapore through various tanker and bulk carrier operations. The Ofer Bros. spokesman declined to comment on whether the acquisition of the Israel Corp. shares would eventually lead to the buyout by Ofer of the Zim shares held by the Israeli government. The government has made it known for a number of years that it wishes to dispose of its holding in Zim Israel. There had been speculation that Ofer Bros. would move to totally acquire the shipping line. ''We have nothing to say on this part at the moment. It's far too soon,'' he said. Neither would he discuss any changes likely to take place at Zim Israel in the short term in terms of service or management sides. However, there could be changes on the board of directors of Zim Israel. Close sources suggest these could even include a new chief executive officer. No one at Zim Israel was available for comment. For years Zim Israel has suffered from depressed rates and overcapacity on its several east-west trade routes, but management changes and a new cost-cutting strategy are starting to turn the company around.

OFER BROTHERS BUYS CONTROL OF ZIM ISRAEL

<div class="phx-topic abstract-wrapper">While of concern to shippers and ocean carriers, the global impact of the war in the Middle East on container flows will be less severe than COVID-19 disruptions and Red Sea diversions, Lars Jensen told TPM26.</div>

While of concern to shippers and ocean carriers, the global impact of the war in the Middle East on container flows will be less severe than COVID-19 disruptions and Red Sea diversions, Lars Jensen told TPM26.

Feature image

<div class="phx-topic">Long Beach, California — The war in the Middle East that has effectively shut the Persian Gulf and Strait of Hormuz is a problem for container shipping, but not on the scale of other recent disruptions the sector has faced. That was the closing message of the Journal of Commerce’s TPM 26 conference, delivered by industry analyst and CEO of Vespucci Maritime Lars Jensen. “This is going to sound weird. Globally, strictly on container shipping, it’s a problem, but it’s not a major problem,” Jensen told conference attendees. “It’s definitely not pandemic-scale.” <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177005_0.1.jpg"></img></div>When Houthi militants in Yemen began <a href="https://www.joc.com/article/red-sea-diversions-could-last-for-months-until-attack-risk-ends-drewry-5225718">their attacks on shipping in the Red Sea two years ago</a>, container ships serving the Asia-Europe, Asia-Mediterranean and Asia-US East Coast trade lanes were forced to make lengthy and costly diversions around the southern tip of Africa. The current danger zone in the Middle East is much more limited. “In this case, it is ... ‘only’ the cargo in the Gulf. So from a global perspective, yes there will be an impact,” Jensen said. “It will contract capacity some, but it’s not a major disaster for the countries in the Gulf.” Looking at the volume of containers destined for the Strait of Hormuz, either on board vessels already or at least booked within the next 90 days to head toward the Gulf, approximately 2 million TEUs will be impacted, he said. A significant portion of that total will be offloaded at ports around the Strait of Hormuz. The war, meanwhile, has put to rest the assumption importers had entering 2026 that container traffic from Asia bound for Europe and the US East Coast would return to the Suez Canal in the second half of this year, thereby reducing carriers’ leverage in pricing. “The baseline outlook for 2026 now has to include the assumption that the deviations around Africa will continue this year, and therefore materially strengthen the supply and demand balance,” Jensen said. As for when container ships will contemplate returning to the Suez Canal, he said that discussion has been kicked down the road for at least another six months. “So realistically, we are probably looking at least six months into the future before anybody is going to start contemplating doing this again, and that is if we stop the war basically today,” Jensen said. Major container lines have mostly avoided the Red Sea/Suez route since late 2023, when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing the diversions around southern Africa. Those attacks stopped last October after the ceasefire agreement between Israel and Hamas, prompting some major carriers to resume transits through the volatile area on a small scale in recent months. <h3>Rising oil prices, congestion are a concern </h3>In the short term, oil prices, and therefore bunker fuel prices, will increase, which will impact container shipping costs. And that means ocean carriers will respond with increased fuel surcharges. “On account of the Middle East, the carriers will go gangbusters in terms of implementing as many and as high surcharges as humanly possible, and not just on trades to and from the Gulf, [but] everywhere,” Jensen said. “They will be called emergency fuel surcharges, emergency conflict surcharges, and whatever nice names, but they will be a reality. The only question is, how high will it go and how long will it last.” Even cargo owners who are shipping only from Asia to the US West Coast will feel an impact from events in the Middle East in terms of surcharges and disrupted operations in the form of knock-on congestion. “You’re going to get all of these congestion effects in Asia that [are] going to impact everything and everyone, so you’re going to see these surcharges also on the Pacific,” Jensen said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Long Beach, California — The war in the Middle East that has effectively shut the Persian Gulf and Strait of Hormuz is a problem for container shipping, but not on the scale of other recent disruptions the sector has faced. That was the closing message of the Journal of Commerce’s TPM 26 conference, delivered by industry analyst and CEO of Vespucci Maritime Lars Jensen. “This is going to sound weird. Globally, strictly on container shipping, it’s a problem, but it’s not a major problem,” Jensen told conference attendees. “It’s definitely not pandemic-scale.” When Houthi militants in Yemen began their attacks on shipping in the Red Sea two years ago , container ships serving the Asia-Europe, Asia-Mediterranean and Asia-US East Coast trade lanes were forced to make lengthy and costly diversions around the southern tip of Africa. The current danger zone in the Middle East is much more limited. “In this case, it is ... ‘only’ the cargo in the Gulf. So from a global perspective, yes there will be an impact,” Jensen said. “It will contract capacity some, but it’s not a major disaster for the countries in the Gulf.” Looking at the volume of containers destined for the Strait of Hormuz, either on board vessels already or at least booked within the next 90 days to head toward the Gulf, approximately 2 million TEUs will be impacted, he said. A significant portion of that total will be offloaded at ports around the Strait of Hormuz. The war, meanwhile, has put to rest the assumption importers had entering 2026 that container traffic from Asia bound for Europe and the US East Coast would return to the Suez Canal in the second half of this year, thereby reducing carriers’ leverage in pricing. “The baseline outlook for 2026 now has to include the assumption that the deviations around Africa will continue this year, and therefore materially strengthen the supply and demand balance,” Jensen said. As for when container ships will contemplate returning to the Suez Canal, he said that discussion has been kicked down the road for at least another six months. “So realistically, we are probably looking at least six months into the future before anybody is going to start contemplating doing this again, and that is if we stop the war basically today,” Jensen said. Major container lines have mostly avoided the Red Sea/Suez route since late 2023, when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing the diversions around southern Africa. Those attacks stopped last October after the ceasefire agreement between Israel and Hamas, prompting some major carriers to resume transits through the volatile area on a small scale in recent months. Rising oil prices, congestion are a concern In the short term, oil prices, and therefore bunker fuel prices, will increase, which will impact container shipping costs. And that means ocean carriers will respond with increased fuel surcharges. “On account of the Middle East, the carriers will go gangbusters in terms of implementing as many and as high surcharges as humanly possible, and not just on trades to and from the Gulf, [but] everywhere,” Jensen said. “They will be called emergency fuel surcharges, emergency conflict surcharges, and whatever nice names, but they will be a reality. The only question is, how high will it go and how long will it last.” Even cargo owners who are shipping only from Asia to the US West Coast will feel an impact from events in the Middle East in terms of surcharges and disrupted operations in the form of knock-on congestion. “You’re going to get all of these congestion effects in Asia that [are] going to impact everything and everyone, so you’re going to see these surcharges also on the Pacific,” Jensen said. Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com .

Container lines

Asia-Europe

Trans-Pacific

Container Shipping News

Maritime

TPM26: War a problem for container shipping, but not ‘pandemic-scale’: analyst

<div class="phx-topic abstract-wrapper">A sharp increase in imports from Asia, declining back-haul volume, and congestion delaying the return of empties are slowing down the repatriation of equipment back to Asia. </div>

A sharp increase in imports from Asia, declining back-haul volume, and congestion delaying the return of empties are slowing down the repatriation of equipment back to Asia.

<div class="phx-topic">Long Beach, California — The equipment imbalance on the Asia-Europe trade lane and repositioning empty containers is fast becoming a structural challenge for the region’s maxed-out ports, industry leaders said this week. While volume on the main Asia-Europe westbound lane increased 9.1% in 2025 against a capacity increase of 8.3% over the past two years, the backhaul trade volume was down 5.7% while capacity rose 11.5%, according to Nigel Pusey, CEO of Container Trades Statistics. “The container imbalance is the fundamental challenge of this trade, and how those boxes will continue to be fed in as the ability to recycle containers becomes more and more difficult,” Pusey told the Journal of Commerce’s TPM26 conference. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177005_0.1.jpg"></img></div>“Only 37% of the slots going between Europe and the Far East were actually carrying commercial cargo,” he added. Hanna Stelzel, director of containers at the Port of Rotterdam, said empty repositioning was becoming a structural challenge for ports in Europe that are all operating at high utilization levels. “We had approximately 10% growth on Asia-Europe in 2025, but the growth was mainly coming from imports,” she told the conference. “China into Rotterdam grew 40% compared to 2024. We have declining exports, and Rotterdam is often the first and last port of call, and that is causing enormous challenges in empty repositioning.” Stelzel explained that empties took up room in container yards and require extra moves as the containers are repositioned from one terminal to another. “We are already operating at maximum capacity in Rotterdam and all those extra moves, especially of empty containers, are something we would like to avoid to keep the port more fluid and more efficient, and that’s not possible if you have those extreme numbers of equipment that needs to be repositioned,” she added. <h3>Second-half surge in Rotterdam volume </h3>Total <a href="https://www.joc.com/article/rotterdam-congestion-limits-benefit-of-second-half-surge-in-imports-6176418">container volume at the Port of Rotterdam grew 3.1% in 2025</a>, driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. The container imbalance and <a href="https://www.joc.com/article/tpm26-europes-persistent-port-congestion-wont-be-remedied-by-short-term-fixes-6180335">persistent port congestion in Europe</a> were also extending the life of the boxes, Pusey said. Instead of a container on the trade lane revolving three or four times a year, the increase in imports meant it was taking longer for carriers to discharge the containers, and the boxes were taking longer to be emptied and returned from inland locations. “That means you’ve actually got more boxes in the system and are having to find places to store them,” Pusey said. He warned that the war in the Middle East that has <a href="https://www.joc.com/article/carriers-pause-india-middle-east-cargo-bookings-amid-persian-gulf-port-chaos-6179223">halted shipping in the Persian Gulf</a> will worsen the current equipment imbalance. “The Middle East and India are interwoven into many schedules of many carriers, so there is going to be a massive impact,” Pusey said. “It’s probably far too early to say what’s going to happen, but the imbalance is going to get far worse.” Jakob Jeppesen, CEO of air and sea for Asia-Pacific at forwarder DSV, said Asia will continue to be a growth market for Europe as Asian brands expand their international presence. “When Asian brands go international, they look towards Europe,” Jeppesen told TPM26. “They will ship more than they need to build inventory to make sure that they have a resilient supply chain. We are seeing brands from India and from China. They used to be [original equipment] manufacturing, but now they want their own brands in retail stores, not only in e-commerce.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Long Beach, California — The equipment imbalance on the Asia-Europe trade lane and repositioning empty containers is fast becoming a structural challenge for the region’s maxed-out ports, industry leaders said this week. While volume on the main Asia-Europe westbound lane increased 9.1% in 2025 against a capacity increase of 8.3% over the past two years, the backhaul trade volume was down 5.7% while capacity rose 11.5%, according to Nigel Pusey, CEO of Container Trades Statistics. “The container imbalance is the fundamental challenge of this trade, and how those boxes will continue to be fed in as the ability to recycle containers becomes more and more difficult,” Pusey told the Journal of Commerce’s TPM26 conference. “Only 37% of the slots going between Europe and the Far East were actually carrying commercial cargo,” he added. Hanna Stelzel, director of containers at the Port of Rotterdam, said empty repositioning was becoming a structural challenge for ports in Europe that are all operating at high utilization levels. “We had approximately 10% growth on Asia-Europe in 2025, but the growth was mainly coming from imports,” she told the conference. “China into Rotterdam grew 40% compared to 2024. We have declining exports, and Rotterdam is often the first and last port of call, and that is causing enormous challenges in empty repositioning.” Stelzel explained that empties took up room in container yards and require extra moves as the containers are repositioned from one terminal to another. “We are already operating at maximum capacity in Rotterdam and all those extra moves, especially of empty containers, are something we would like to avoid to keep the port more fluid and more efficient, and that’s not possible if you have those extreme numbers of equipment that needs to be repositioned,” she added. Second-half surge in Rotterdam volume Total container volume at the Port of Rotterdam grew 3.1% in 2025 , driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. The container imbalance and persistent port congestion in Europe were also extending the life of the boxes, Pusey said. Instead of a container on the trade lane revolving three or four times a year, the increase in imports meant it was taking longer for carriers to discharge the containers, and the boxes were taking longer to be emptied and returned from inland locations. “That means you’ve actually got more boxes in the system and are having to find places to store them,” Pusey said. He warned that the war in the Middle East that has halted shipping in the Persian Gulf will worsen the current equipment imbalance. “The Middle East and India are interwoven into many schedules of many carriers, so there is going to be a massive impact,” Pusey said. “It’s probably far too early to say what’s going to happen, but the imbalance is going to get far worse.” Jakob Jeppesen, CEO of air and sea for Asia-Pacific at forwarder DSV, said Asia will continue to be a growth market for Europe as Asian brands expand their international presence. “When Asian brands go international, they look towards Europe,” Jeppesen told TPM26. “They will ship more than they need to build inventory to make sure that they have a resilient supply chain. We are seeing brands from India and from China. They used to be [original equipment] manufacturing, but now they want their own brands in retail stores, not only in e-commerce.” Contact Greg Knowler at greg.knowler@spglobal.com .

Port News

International ports

TPM26: Empty boxes pose structural challenge for Europe’s busy ports

<div class="phx-topic abstract-wrapper">While the White House has signaled support and Republicans hold a majority on the US Surface Transportation Board, opposition has surfaced that has many believing the $85 billion merger is not necessarily a done deal. </div>

While the White House has signaled support and Republicans hold a majority on the US Surface Transportation Board, opposition has surfaced that has many believing the $85 billion merger is not necessarily a done deal.

<div class="phx-topic">Most railroad industry stakeholders, including Union Pacific (UP) itself, reject the idea that federal regulators will “rubber stamp” the proposed $85 billion merger of UP with Norfolk Southern Railway, acknowledging the railroad will have to show that the deal enhances competition for it to be approved. Speculation about whether approval of the deal was a foregone conclusion began last September when President Donald Trump met with UP CEO Jim Vena at the White House, then posted a message on Truth Social expressing support for the transaction. There were other “positive” signs for UP as well. Trump last August fired Robert Primus from the regulatory body that will have final say on the deal — the US Surface Transportation Board (STB), saying Primus did not align with his “America First” agenda. Trump also nominated a third Republican to the STB, tilting the agency toward pro-business conservatives. And UP donated to the fund financing Trump’s efforts to build a White House ballroom. Despite those signals, most industry observers do not believe it makes approval of the deal a foregone conclusion. “People who are not in DC immediately took to heart when President Trump said, ‘Oh, that’s a good idea. Let’s have a merger,’ and thought it was a done deal. Those of us in DC knew that wasn’t the case,” Peter Friedmann, executive director of the Washington-based Agriculture Transportation Coalition (AgTC), said at the Journal of Commerce’s TPM26 conference this week. “You’ve got a railroad [BNSF Railway] that’s opposing it, and the chairman of the Senate Commerce Committee, Ted Cruz of Texas [who’s also opposed],” Friedmann added. Prior comments from Union Pacific executives have indicated the company doesn’t expect automatic approval merely because its CEO had a photo with the president. This week, the railroad simply said in a statement to the Journal of Commerce that it is “confident the Surface Transportation Board will conduct a rigorous review of our application to create a coast-to-coast railroad.” <h3>Ex-chairman says STB will act independently </h3>Martin Oberman, a former chairman of the STB, insists regulators will not decide the fate of the deal based on orders from Trump. Oberman was on the STB between 2019 and 2024 and served alongside current members Patrick Fuchs, Michelle Schultz, and Karen Hedlund. “Occasionally, one of us would say to the other, ‘I was confirmed by the Senate for the purpose of using my independent judgment. That’s what I do. That’s why I'm here,’" Oberman told the Journal of Commerce. “They’re all very conscious of that and treasure it, so they would be loath to, in reality or in perception, to be viewed as doing somebody’s political work." Oberman singled out Fuchs, the current STB chairman, as someone who is an independent thinker. “Patrick will rule based on the merits,” Oberman said. “Now, that is not to say that, on the merits, he and others may come to the conclusion that the merger should be approved, but it absolutely won’t be for political reasons.” Perhaps the best evidence approval won’t be a foregone conclusion, Oberman noted, is that <a href="https://www.joc.com/article/stb-rejects-up-ns-merger-application-as-incomplete-6154074">UP’s initial application was deemed “incomplete” in January</a>, requiring the railroad to make the appropriate changes and resubmit the application. UP plans to refile by April 30, which will kickstart another 30-day review. If deemed “complete” on the second attempt, then an exhaustive regulatory process would commence, including an environmental review and public hearings that will go into 2027. <h3>Republicans don’t universally support the deal </h3>Even with Trump’s support, Republicans aren’t universally supportive of the UP-NS deal. Nearly 50 Republicans in Congress wrote a letter to the STB in early February expressing concerns about the transaction. “Some of us are already hearing initial concerns about the UP-NS application and its lack of serious and meaningful commitments to enhance competition and protect against service meltdowns,” the letter read. “In light of this, the Board must consider with extreme care the potential risks posed by this transaction to determine whether it meets the public interest test.” A week later, seven Republican state attorneys general wrote a letter to the Department of Justice. “We believe that this merger is unnecessary,” the attorneys general wrote. “We cannot afford a merger that stalls America’s industrial momentum and respectfully ask the DOJ to utilize its unique expertise to scrutinize, and, if appropriate, oppose the deal.” Jon Gabriel, group vice president of consumer products for BNSF, said broad opposition to the deal proves the outcome is not pre-determined. “There are many lawmakers that have sent letters to the administration voicing concern or opposition; most of them are Republicans. So clearly, the fix is not in,” Gabriel said at TPM26. Still, there are plenty of stakeholders supporting the deal. Union Pacific’s initial application included more than 2,000 letters of support, including from more than 500 customers and 800 public officials and community leaders. Among the supporters are the Port of Los Angeles, ocean carriers Ocean Network Express and SM Lines, and domestic intermodal partners Hub Group and Knight Swift Transportation. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Most railroad industry stakeholders, including Union Pacific (UP) itself, reject the idea that federal regulators will “rubber stamp” the proposed $85 billion merger of UP with Norfolk Southern Railway, acknowledging the railroad will have to show that the deal enhances competition for it to be approved. Speculation about whether approval of the deal was a foregone conclusion began last September when President Donald Trump met with UP CEO Jim Vena at the White House, then posted a message on Truth Social expressing support for the transaction. There were other “positive” signs for UP as well. Trump last August fired Robert Primus from the regulatory body that will have final say on the deal — the US Surface Transportation Board (STB), saying Primus did not align with his “America First” agenda. Trump also nominated a third Republican to the STB, tilting the agency toward pro-business conservatives. And UP donated to the fund financing Trump’s efforts to build a White House ballroom. Despite those signals, most industry observers do not believe it makes approval of the deal a foregone conclusion. “People who are not in DC immediately took to heart when President Trump said, ‘Oh, that’s a good idea. Let’s have a merger,’ and thought it was a done deal. Those of us in DC knew that wasn’t the case,” Peter Friedmann, executive director of the Washington-based Agriculture Transportation Coalition (AgTC), said at the Journal of Commerce’s TPM26 conference this week. “You’ve got a railroad [BNSF Railway] that’s opposing it, and the chairman of the Senate Commerce Committee, Ted Cruz of Texas [who’s also opposed],” Friedmann added. Prior comments from Union Pacific executives have indicated the company doesn’t expect automatic approval merely because its CEO had a photo with the president. This week, the railroad simply said in a statement to the Journal of Commerce that it is “confident the Surface Transportation Board will conduct a rigorous review of our application to create a coast-to-coast railroad.” Ex-chairman says STB will act independently Martin Oberman, a former chairman of the STB, insists regulators will not decide the fate of the deal based on orders from Trump. Oberman was on the STB between 2019 and 2024 and served alongside current members Patrick Fuchs, Michelle Schultz, and Karen Hedlund. “Occasionally, one of us would say to the other, ‘I was confirmed by the Senate for the purpose of using my independent judgment. That’s what I do. That’s why I'm here,’" Oberman told the Journal of Commerce. “They’re all very conscious of that and treasure it, so they would be loath to, in reality or in perception, to be viewed as doing somebody’s political work." Oberman singled out Fuchs, the current STB chairman, as someone who is an independent thinker. “Patrick will rule based on the merits,” Oberman said. “Now, that is not to say that, on the merits, he and others may come to the conclusion that the merger should be approved, but it absolutely won’t be for political reasons.” Perhaps the best evidence approval won’t be a foregone conclusion, Oberman noted, is that UP’s initial application was deemed “incomplete” in January , requiring the railroad to make the appropriate changes and resubmit the application. UP plans to refile by April 30, which will kickstart another 30-day review. If deemed “complete” on the second attempt, then an exhaustive regulatory process would commence, including an environmental review and public hearings that will go into 2027. Republicans don’t universally support the deal Even with Trump’s support, Republicans aren’t universally supportive of the UP-NS deal. Nearly 50 Republicans in Congress wrote a letter to the STB in early February expressing concerns about the transaction. “Some of us are already hearing initial concerns about the UP-NS application and its lack of serious and meaningful commitments to enhance competition and protect against service meltdowns,” the letter read. “In light of this, the Board must consider with extreme care the potential risks posed by this transaction to determine whether it meets the public interest test.” A week later, seven Republican state attorneys general wrote a letter to the Department of Justice. “We believe that this merger is unnecessary,” the attorneys general wrote. “We cannot afford a merger that stalls America’s industrial momentum and respectfully ask the DOJ to utilize its unique expertise to scrutinize, and, if appropriate, oppose the deal.” Jon Gabriel, group vice president of consumer products for BNSF, said broad opposition to the deal proves the outcome is not pre-determined. “There are many lawmakers that have sent letters to the administration voicing concern or opposition; most of them are Republicans. So clearly, the fix is not in,” Gabriel said at TPM26. Still, there are plenty of stakeholders supporting the deal. Union Pacific’s initial application included more than 2,000 letters of support, including from more than 500 customers and 800 public officials and community leaders. Among the supporters are the Port of Los Angeles, ocean carriers Ocean Network Express and SM Lines, and domestic intermodal partners Hub Group and Knight Swift Transportation. Contact Ari Ashe at ari.ashe@spglobal.com .

North-American rail

Intermodal providers

Surface

Industry stakeholders don’t see regulators rubber-stamping UP-NS deal

<div class="phx-topic abstract-wrapper">Tobias Meyer said companies are starting to consider offloading Asia export cargo at ports in the Indian subcontinent for eventual onward shipment into the Gulf region, but it has not yet emerged as a trend.</div>

Tobias Meyer said companies are starting to consider offloading Asia export cargo at ports in the Indian subcontinent for eventual onward shipment into the Gulf region, but it has not yet emerged as a trend.

<div class="phx-topic">Decisions over whether companies should transship ocean freight disrupted by the Middle East war to other ports or employ other modes including air freight and trucking are likely to be made by early next week, the CEO of forwarder DHL said Thursday. Tobias Meyer said DHL is starting to see companies consider whether to offload Asia export cargo at ports in the Indian subcontinent for eventual onward shipment into the Gulf region, but it has not yet emerged as a trend. “People are adopting a wait-and-see attitude which we expect to last a couple of days, not a couple of weeks,” Meyer said during the 2025 results briefing for the German logistics giant. He did not specify which ports could emerge as transshipment hubs, although the Sri Lanka Ports Authority is promoting Colombo, while Mombasa in Kenya has also been highlighted by forwarders as a transshipment option for Middle East cargo. Food supplies in the region are expected to become especially critical if the situation with “ocean freight doesn’t change in the coming days,” Meyer said. “The region is not self-sufficient in food.” Meyer said cargo owners could fly urgent supplies and augment that by long-distance trucking, especially from Saudi Arabia. He added there has been a modest improvement in the air cargo situation, with carriers such as DHL able to fly its aircraft out of the region, potentially boosting available capacity even though regional air space remains tightly controlled with a small number of flights allowed. Meyer’s remarks came as ocean carriers announced a raft of continency measures linked to the war. Hapag-Lloyd said in an advisory Thursday customers with cargo in transit would be offered a range of options, including a change of destination to an alternative port or a return of the cargo to the original loading port. If no instructions are received, the carrier will declare an “end of voyage,” and the cargo will be stored at an alternative location. CMA CGM said vessels with calls scheduled for countries including Bahrain, Kuwait, Oman, the United Arab Emirates, and Saudi Arabia would be diverted to other ports under force majeure provisions. “Customers will subsequently be requested to provide further instructions regarding the onward handling of their cargo,” the carrier said in an advisory, noting the options include delivery by road or rail or an agreed change to an alternative port. Maersk said in an advisory Wednesday that most ports in the region remained open, including Jebel Ali and Abu Dhabi in the UAE, Doha in Qatar, Damman and Jubail in Saudi Arabia, and Sohar and Salalah in Oman, while Bahrain is also open but with security checks. But while those ports remain open, carriers such as Maersk, Hapag-Lloyd, and CMA CGM have stopped accepting cargo bookings for all but essential freight such as foodstuffs and medicine. Meyer expected the disruption to ocean freight to benefit DHL’s air cargo and ground businesses as cargo owners switched to alternative modes to move critical shipments. “We typically benefit from such turmoil ... historically, that’s the case,” he said. <h3>Revenue declines for 2025 </h3>Meyer said during the results briefing he expected 2026 “to remain volatile” following a mixed 2025 for DHL’s two biggest divisions — Express and Global Forwarding/Freight. At Express, uncertainty caused by US tariffs caused a 26% drop in the weight of daily express shipments to the US last year, while the weight of daily express shipments to the rest of the world remained stable. The Express division saw a 2.5% increase in operating profit to $3.7 billion in 2025, while revenue fell 3% to $28.3 billion. Operating profit was unchanged in the fourth quarter from a year earlier, although revenue declined 4% in the period to $7.6 billion. DHL’s Global Forwarding/Freight division was hit by lower freight rates, while ocean and air freight volumes remained largely unchanged at 3.3 million TEUs and 1.8 million metric tons, respectively. The division saw operating profit slump 30% last year to $878 million, while revenue declined 5% to $21.6 billion. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Decisions over whether companies should transship ocean freight disrupted by the Middle East war to other ports or employ other modes including air freight and trucking are likely to be made by early next week, the CEO of forwarder DHL said Thursday. Tobias Meyer said DHL is starting to see companies consider whether to offload Asia export cargo at ports in the Indian subcontinent for eventual onward shipment into the Gulf region, but it has not yet emerged as a trend. “People are adopting a wait-and-see attitude which we expect to last a couple of days, not a couple of weeks,” Meyer said during the 2025 results briefing for the German logistics giant. He did not specify which ports could emerge as transshipment hubs, although the Sri Lanka Ports Authority is promoting Colombo, while Mombasa in Kenya has also been highlighted by forwarders as a transshipment option for Middle East cargo. Food supplies in the region are expected to become especially critical if the situation with “ocean freight doesn’t change in the coming days,” Meyer said. “The region is not self-sufficient in food.” Meyer said cargo owners could fly urgent supplies and augment that by long-distance trucking, especially from Saudi Arabia. He added there has been a modest improvement in the air cargo situation, with carriers such as DHL able to fly its aircraft out of the region, potentially boosting available capacity even though regional air space remains tightly controlled with a small number of flights allowed. Meyer’s remarks came as ocean carriers announced a raft of continency measures linked to the war. Hapag-Lloyd said in an advisory Thursday customers with cargo in transit would be offered a range of options, including a change of destination to an alternative port or a return of the cargo to the original loading port. If no instructions are received, the carrier will declare an “end of voyage,” and the cargo will be stored at an alternative location. CMA CGM said vessels with calls scheduled for countries including Bahrain, Kuwait, Oman, the United Arab Emirates, and Saudi Arabia would be diverted to other ports under force majeure provisions. “Customers will subsequently be requested to provide further instructions regarding the onward handling of their cargo,” the carrier said in an advisory, noting the options include delivery by road or rail or an agreed change to an alternative port. Maersk said in an advisory Wednesday that most ports in the region remained open, including Jebel Ali and Abu Dhabi in the UAE, Doha in Qatar, Damman and Jubail in Saudi Arabia, and Sohar and Salalah in Oman, while Bahrain is also open but with security checks. But while those ports remain open, carriers such as Maersk, Hapag-Lloyd, and CMA CGM have stopped accepting cargo bookings for all but essential freight such as foodstuffs and medicine. Meyer expected the disruption to ocean freight to benefit DHL’s air cargo and ground businesses as cargo owners switched to alternative modes to move critical shipments. “We typically benefit from such turmoil ... historically, that’s the case,” he said. Revenue declines for 2025 Meyer said during the results briefing he expected 2026 “to remain volatile” following a mixed 2025 for DHL’s two biggest divisions — Express and Global Forwarding/Freight. At Express, uncertainty caused by US tariffs caused a 26% drop in the weight of daily express shipments to the US last year, while the weight of daily express shipments to the rest of the world remained stable. The Express division saw a 2.5% increase in operating profit to $3.7 billion in 2025, while revenue fell 3% to $28.3 billion. Operating profit was unchanged in the fourth quarter from a year earlier, although revenue declined 4% in the period to $7.6 billion. DHL’s Global Forwarding/Freight division was hit by lower freight rates, while ocean and air freight volumes remained largely unchanged at 3.3 million TEUs and 1.8 million metric tons, respectively. The division saw operating profit slump 30% last year to $878 million, while revenue declined 5% to $21.6 billion. Contact Keith Wallis at keithwallis@hotmail.com .

Air Cargo Carriers News

Air Cargo

Middle East transshipment options to emerge in the coming days: DHL CEO

<div class="phx-topic abstract-wrapper">Engineering, procurement and construction companies, key shippers of project cargo, are expecting an uptick in business in 2026. </div>

Engineering, procurement and construction companies, key shippers of project cargo, are expecting an uptick in business in 2026.

<div class="phx-topic">Project opportunities in oil and gas, advanced technologies, mining and nuclear are in the sights of engineering, procurement and construction (EPC) companies, which are recalibrating their strategies to target those segments for growth in 2026. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — are building on contract wins as they work to capitalize on rising global demand for fossil fuels and energy- and water-dependent datacenters to support artificial intelligence. Those industries are positioned to become important drivers of project cargo activity, and all four EPCs are key shippers of cargo related to the construction of industrial, energy, and defense projects. Houston-based defense contractor KBR is expanding its project footprint in Iraq, while the company is preparing to spin off its national security and space business into a standalone entity this year. On Feb. 23, KBR announced the company had been awarded a “transformational” oil project contract from the Basra Oil Company in Iraq. Under the contract, KBR will provide EPC management and integrated field management services for the Manjoon Oil Field in Basra, one of the world’s largest oil fields. KBR is also projecting a double-digit bid increase for its mission tech business this year as the company prepares to spin off its national security and space segment into a separate public company by mid-to-late 2026, according to KBR’s Feb. 26 year-end earnings results. KBR is working through a project backlog supported by liquefied natural gas (LNG), ammonia, defense, and intelligence. “Work under contract covers roughly 63% of our 2026 guidance, putting us above normative levels for this business going into the year,” CEO Stuart Bradie said during the company’s Feb. 26 earnings call, citing a $5 billion near-term project pipeline. The company ended the fourth quarter with a combined project backlog and potential future work options totaling $23.2 billion, up 13% from the previous year. <h3>Worley targets data centers, industrial water </h3>Australian engineering group Worley is forecasting moderate growth for the remainder of 2026 while pursuing complex critical infrastructure projects as a key expansion area. Worley booked $7 billion in work in the first half of its fiscal year ending Dec. 31, a 63% increase from six months prior and a 70% jump from a year earlier, with wins across its energy and mining and metal resources businesses. “We are seeing momentum building as we win a greater share of major projects in areas that we have identified as growth markets,” CEO Chris Ashton said in the company’s half-year earnings remarks released Feb. 26. Worley is prioritizing datacenter infrastructure, power, industrial water, and ports and marine terminals as high-growth areas. Bookings included the first phase of Venture Global’s CP2 project, a massive LNG export facility in Louisiana that received a final investment decision last July. Worley has been providing EPC planning services for CP2, and in February won the contract to provide those services for the second phase of the project. Worley’s contract wins since January could add over $2.5 billion in project backlog, which reached $11.7 billion in the first half of its fiscal year. <h3>TechnipFMC optimistic on offshore </h3>Multinational oil and gas services contractor TechnipFMC is eyeing a record volume of potential projects for its subsea energy business over the next two years, despite declines in the company’s quarterly and yearly orders. During TechnipFMC’s fourth-quarter earnings call on Feb. 19, CEO Doug Pferdehirt said the next 24 months will bring an estimated $29 billion in subsea project contract opportunities, a record for the company and the sixth consecutive quarterly increase for the segment. Through its subsea business, Technip FMC develops systems for undersea oil and gas exploration and extraction. “We expect a greater share of capital spending to move offshore, where reservoirs are prolific, high-quality and accessible to many operators with attractive project economics that continue to improve,” Pferdehirt said, citing newbuild oil and gas projects as a significant growth area. Subsea orders, which account for 90% of the company’s overall business, fell 13% to $2.3 billion in the fourth quarter while slipping 3% to $10.1 billion for the year. A key project for the quarter included a $600 million to $800 million integrated engineering, procurement, construction and installation contract for BP’s Tiber oil and gas production hub in the US Gulf. <h3>Fluor expects ‘significantly higher’ awards in 2026 </h3>Texas-based engineering and construction company Fluor is eyeing project opportunities across LNG, mining, nuclear fuels and advanced technology in 2026 as the company recovers from declining annual performance, according to year-end earnings results. During Fluor’s Feb. 17 earnings call, CEO James Breuer said the company was pursuing prospects across those segments. “We anticipate that new awards for 2026 will be significantly higher than in 2025” based on conversations with clients, Breuer said. New awards in 2025 totaled $12 billion, a 21% decline from the previous year. Nearly three-fourths of those awards came from Fluor’s urban solutions business, which includes mining, infrastructure and advanced technology projects such as data-centers and semiconductor facilities. The segment’s $8.7 billion in new awards represented an 8% decline from 2024 but also the third consecutive year awards reached near $9 billion. Breuer cited growth opportunities with large copper, aluminum, and green steel projects, as well as rare earth material production facilities. The company has also beefed up its support of semiconductor and datacenter projects. “We are in advanced discussions with a client for a major data center in the US, we’re pursuing project management work on a data center project in Europe, and are well-positioned for semiconductor work in the US,” he said. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

Project opportunities in oil and gas, advanced technologies, mining and nuclear are in the sights of engineering, procurement and construction (EPC) companies, which are recalibrating their strategies to target those segments for growth in 2026. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — are building on contract wins as they work to capitalize on rising global demand for fossil fuels and energy- and water-dependent datacenters to support artificial intelligence. Those industries are positioned to become important drivers of project cargo activity, and all four EPCs are key shippers of cargo related to the construction of industrial, energy, and defense projects. Houston-based defense contractor KBR is expanding its project footprint in Iraq, while the company is preparing to spin off its national security and space business into a standalone entity this year. On Feb. 23, KBR announced the company had been awarded a “transformational” oil project contract from the Basra Oil Company in Iraq. Under the contract, KBR will provide EPC management and integrated field management services for the Manjoon Oil Field in Basra, one of the world’s largest oil fields. KBR is also projecting a double-digit bid increase for its mission tech business this year as the company prepares to spin off its national security and space segment into a separate public company by mid-to-late 2026, according to KBR’s Feb. 26 year-end earnings results. KBR is working through a project backlog supported by liquefied natural gas (LNG), ammonia, defense, and intelligence. “Work under contract covers roughly 63% of our 2026 guidance, putting us above normative levels for this business going into the year,” CEO Stuart Bradie said during the company’s Feb. 26 earnings call, citing a $5 billion near-term project pipeline. The company ended the fourth quarter with a combined project backlog and potential future work options totaling $23.2 billion, up 13% from the previous year. Worley targets data centers, industrial water Australian engineering group Worley is forecasting moderate growth for the remainder of 2026 while pursuing complex critical infrastructure projects as a key expansion area. Worley booked $7 billion in work in the first half of its fiscal year ending Dec. 31, a 63% increase from six months prior and a 70% jump from a year earlier, with wins across its energy and mining and metal resources businesses. “We are seeing momentum building as we win a greater share of major projects in areas that we have identified as growth markets,” CEO Chris Ashton said in the company’s half-year earnings remarks released Feb. 26. Worley is prioritizing datacenter infrastructure, power, industrial water, and ports and marine terminals as high-growth areas. Bookings included the first phase of Venture Global’s CP2 project, a massive LNG export facility in Louisiana that received a final investment decision last July. Worley has been providing EPC planning services for CP2, and in February won the contract to provide those services for the second phase of the project. Worley’s contract wins since January could add over $2.5 billion in project backlog, which reached $11.7 billion in the first half of its fiscal year. TechnipFMC optimistic on offshore Multinational oil and gas services contractor TechnipFMC is eyeing a record volume of potential projects for its subsea energy business over the next two years, despite declines in the company’s quarterly and yearly orders. During TechnipFMC’s fourth-quarter earnings call on Feb. 19, CEO Doug Pferdehirt said the next 24 months will bring an estimated $29 billion in subsea project contract opportunities, a record for the company and the sixth consecutive quarterly increase for the segment. Through its subsea business, Technip FMC develops systems for undersea oil and gas exploration and extraction. “We expect a greater share of capital spending to move offshore, where reservoirs are prolific, high-quality and accessible to many operators with attractive project economics that continue to improve,” Pferdehirt said, citing newbuild oil and gas projects as a significant growth area. Subsea orders, which account for 90% of the company’s overall business, fell 13% to $2.3 billion in the fourth quarter while slipping 3% to $10.1 billion for the year. A key project for the quarter included a $600 million to $800 million integrated engineering, procurement, construction and installation contract for BP’s Tiber oil and gas production hub in the US Gulf. Fluor expects ‘significantly higher’ awards in 2026 Texas-based engineering and construction company Fluor is eyeing project opportunities across LNG, mining, nuclear fuels and advanced technology in 2026 as the company recovers from declining annual performance, according to year-end earnings results. During Fluor’s Feb. 17 earnings call, CEO James Breuer said the company was pursuing prospects across those segments. “We anticipate that new awards for 2026 will be significantly higher than in 2025” based on conversations with clients, Breuer said. New awards in 2025 totaled $12 billion, a 21% decline from the previous year. Nearly three-fourths of those awards came from Fluor’s urban solutions business, which includes mining, infrastructure and advanced technology projects such as data-centers and semiconductor facilities. The segment’s $8.7 billion in new awards represented an 8% decline from 2024 but also the third consecutive year awards reached near $9 billion. Breuer cited growth opportunities with large copper, aluminum, and green steel projects, as well as rare earth material production facilities. The company has also beefed up its support of semiconductor and datacenter projects. “We are in advanced discussions with a client for a major data center in the US, we’re pursuing project management work on a data center project in Europe, and are well-positioned for semiconductor work in the US,” he said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

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