<div class="phx-topic abstract-wrapper">Yilport's Robert Yildirim tells JOC Executive Editor Mark Szakonyi the container shipping industry is well-poised to keep up profits through an expected slowdown in global container volumes in the fourth quarter and into next year. </div>

Yilport's Robert Yildirim tells JOC Executive Editor Mark Szakonyi the container shipping industry is well-poised to keep up profits through an expected slowdown in global container volumes in the fourth quarter and into next year.

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<div class="phx-topic">Nearly a dozen years after rescuing CMA CGM and enjoying billions of dollars in windfall, Robert Yildirim says the Marseille-based company is now “too big to fail.” Insulated with $10 billion in net cash and diversification into logistics and air cargo, CMA CGM Group is on far higher ground than 12 years ago when he took an initial 20 percent share, said Yildirim, the CEO and president of Yilport Holdings. CMA CGM and the larger container shipping industry are well-poised to keep profits up through a slowdown in global container volumes in the fourth quarter and into next year, he said. There has been a structural shift on capacity management in the industry, enabling the carrier to manage an expected slowdown in volume growth in 2023, Yildirim said.<div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5254964_1.0.jpg"></img>l</div>“Once [the container lines] understood how to control the prices and the supply and demand balance, they won’t spoil it and fight and reduce rates,” he said.The days when “some [carriers] got carried away and made stupid decisions because of ego,” may be over, said Yildirim, referring to the overordering of tonnage. The three major alliances “control 80 percent of the market,” and container lines “are doing pretty much of what the airlines did [by creating alliances] where they slot share. They compete, but they also cooperate.”Yildirim scoffs at the idea that container lines are unfairly raising rates as President Joe Biden has accused, pointing to the industry’s deep losses before consolidation and the historic profits spurred on by pandemic-driven demand. In 2011, when Yildirim pumped $600 million into CMA CGM and took a 20 percent share, the industry ended the year with $7.7 billion in combined losses, according to maritime analyst Drewry. In 2014, Yildirim invested $100 million more, expanding his stake to 24 percent. Seven years later, in 2021, the industry raked in an estimated $190 billion in profits, and Drewry expects profits to hit $300 billion this year.“This is supply and demand. No one is forcing anyone to ship the goods at these rates,” Yildirim said.<h2>A ‘fantastic’ turnaround</h2>The idea of CMA CGM needing a government bailout, as was discussed in 2010, seems like a different reality. In the first quarter of this year, CMA CGM’s profit soared <a href="/maritime-news/container-lines/cma-cgm-posts-72-billion-q1-profit-warns-risks-ahead_20220603.html">70 percent year over year</a>, to $18.2 billion. Yildirim says his stake is now worth around $22 billion, and he expects it to rise to between $25 billion and $30 billion by the end of the year. “I am not keen to sell it. The company is doing fantastic,” he said. Five years ago, Yildirim was seeking buyers for his CMA CGM stake, but — luckily for him — did not ultimately sell.Using its profit windfall — roughly $17.8 billion in 2021 — CMA CGM is shrewdly expanding its logistics and air cargo capabilities to tap e-commerce needs and take greater control of customers’ supply chains beyond the docks, Yildirim said. CMA CGM last week announced that its third-party logistics company, CEVA Logistics, had completed the acquisition of East African forwarder Spedag Interfreight. CMA CGM Air Cargo and CEVA Logistics are leveraging ocean forwarding relationships and can offer more ocean capacity to shippers that spend more on air cargo and contract logistics services.Yildirim rightly notes CMA CGM is not the only carrier charting such a path. Maersk is also trying to become more of an integrator, scooping up everything from warehousing providers to customs brokerage firms as it takes greater control of the end-to-end supply chain. To a lesser degree, Mediterranean Shipping Co. has expanded its terminal and logistics reach by <a href="/msc-offers-6-billion-bollores-african-terminal-assets_20211220.html">buying Bollore’s African transport</a> and logistics business. Yilport’s own acquisition goals have stumbled because of the COVID-19 pandemic, Yildirim admits, but he has not given up his decade-long goal to gain a US foothold. Yilport, the 12th largest global terminal operator, lost out to Ports America in a bid to build a container terminal in Gulfport, Mississippi, following a failed effort to acquire Long Beach Container Terminal in 2019. Citing political interference, Yilport is suing the Mississippi Port Authority, which is countersuing the terminal operator.Yildirim says he is still eyeing greenfield investments in the US Gulf and, to a lesser degree, Canada. US port infrastructure is lacking, as reflected by port congestion that soaks up ocean capacity, pushing up rates, he said. The opening of Charleston’s Hugh K. Leatherman Terminal in early 2021 marked the first new marine terminal to open in the US since 2009, but longshore labor threats have scared off all but one major container line from calling the terminal.“It’s a [port] infrastructure problem,” Yildirim said. If Biden wants to truly fight inflation by curbing port congestion, “he should pay attention to the landside infrastructure.”Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@ihsmarkit.com">mark.szakonyi@ihsmarkit.com</a> and follow him on Twitter: <a href="https://twitter.com/@MarkSzakonyi">@MarkSzakonyi</a>. </div>

Nearly a dozen years after rescuing CMA CGM and enjoying billions of dollars in windfall, Robert Yildirim says the Marseille-based company is now “too big to fail.” Insulated with $10 billion in net cash and diversification into logistics and air cargo, CMA CGM Group is on far higher ground than 12 years ago when he took an initial 20 percent share, said Yildirim, the CEO and president of Yilport Holdings. CMA CGM and the larger container shipping industry are well-poised to keep profits up through a slowdown in global container volumes in the fourth quarter and into next year, he said. There has been a structural shift on capacity management in the industry, enabling the carrier to manage an expected slowdown in volume growth in 2023, Yildirim said. l “Once [the container lines] understood how to control the prices and the supply and demand balance, they won’t spoil it and fight and reduce rates,” he said. The days when “some [carriers] got carried away and made stupid decisions because of ego,” may be over, said Yildirim, referring to the overordering of tonnage. The three major alliances “control 80 percent of the market,” and container lines “are doing pretty much of what the airlines did [by creating alliances] where they slot share. They compete, but they also cooperate.” Yildirim scoffs at the idea that container lines are unfairly raising rates as President Joe Biden has accused, pointing to the industry’s deep losses before consolidation and the historic profits spurred on by pandemic-driven demand. In 2011, when Yildirim pumped $600 million into CMA CGM and took a 20 percent share, the industry ended the year with $7.7 billion in combined losses, according to maritime analyst Drewry. In 2014, Yildirim invested $100 million more, expanding his stake to 24 percent. Seven years later, in 2021, the industry raked in an estimated $190 billion in profits, and Drewry expects profits to hit $300 billion this year. “This is supply and demand. No one is forcing anyone to ship the goods at these rates,” Yildirim said. A ‘fantastic’ turnaround The idea of CMA CGM needing a government bailout, as was discussed in 2010, seems like a different reality. In the first quarter of this year, CMA CGM’s profit soared 70 percent year over year , to $18.2 billion. Yildirim says his stake is now worth around $22 billion, and he expects it to rise to between $25 billion and $30 billion by the end of the year. “I am not keen to sell it. The company is doing fantastic,” he said. Five years ago, Yildirim was seeking buyers for his CMA CGM stake, but — luckily for him — did not ultimately sell. Using its profit windfall — roughly $17.8 billion in 2021 — CMA CGM is shrewdly expanding its logistics and air cargo capabilities to tap e-commerce needs and take greater control of customers’ supply chains beyond the docks, Yildirim said. CMA CGM last week announced that its third-party logistics company, CEVA Logistics, had completed the acquisition of East African forwarder Spedag Interfreight. CMA CGM Air Cargo and CEVA Logistics are leveraging ocean forwarding relationships and can offer more ocean capacity to shippers that spend more on air cargo and contract logistics services. Yildirim rightly notes CMA CGM is not the only carrier charting such a path. Maersk is also trying to become more of an integrator, scooping up everything from warehousing providers to customs brokerage firms as it takes greater control of the end-to-end supply chain. To a lesser degree, Mediterranean Shipping Co. has expanded its terminal and logistics reach by buying Bollore’s African transport and logistics business. Yilport’s own acquisition goals have stumbled because of the COVID-19 pandemic, Yildirim admits, but he has not given up his decade-long goal to gain a US foothold. Yilport, the 12th largest global terminal operator, lost out to Ports America in a bid to build a container terminal in Gulfport, Mississippi, following a failed effort to acquire Long Beach Container Terminal in 2019. Citing political interference, Yilport is suing the Mississippi Port Authority, which is countersuing the terminal operator. Yildirim says he is still eyeing greenfield investments in the US Gulf and, to a lesser degree, Canada. US port infrastructure is lacking, as reflected by port congestion that soaks up ocean capacity, pushing up rates, he said. The opening of Charleston’s Hugh K. Leatherman Terminal in early 2021 marked the first new marine terminal to open in the US since 2009, but longshore labor threats have scared off all but one major container line from calling the terminal. “It’s a [port] infrastructure problem,” Yildirim said. If Biden wants to truly fight inflation by curbing port congestion, “he should pay attention to the landside infrastructure.” Contact Mark Szakonyi at mark.szakonyi@ihsmarkit.com and follow him on Twitter: @MarkSzakonyi .

Container lines

Once-rescued CMA CGM now ‘too big to fail’: Yildirim

<div class="phx-topic abstract-wrapper">The chairman of the US maritime regulator said the agency could act against ocean carriers or foreign-flag ships should the IMO’s Marine Environment Protection Committee take further steps to adopt its plan to reduce emissions from shipping. </div>

The chairman of the US maritime regulator said the agency could act against ocean carriers or foreign-flag ships should the IMO’s Marine Environment Protection Committee take further steps to adopt its plan to reduce emissions from shipping.

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<div class="phx-topic">Federal Maritime Commission (FMC) Chairman Laura DiBella is reiterating US opposition to proposed international rules for reducing greenhouse gas emissions, saying she will use the agency’s enforcement powers to block any move that would increase costs for US shippers. DiBella said in a statement late Monday she will attend this week’s meeting in London of the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC). The meeting includes a session on adopting rules for reducing shipping’s carbon emissions under the <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">IMO’s proposed “net-zero” framework</a>. The Trump administration has made clear its opposition to the net-zero framework, even <a href="https://www.joc.com/article/us-pulls-out-of-imo-climate-talks-threatens-retaliation-for-emissions-fees-5980359">threatening to leave the IMO due to the issue</a>. DiBella said she will be “reinforcing” that message during her trip. “The NZF is an unnecessary tax on US shippers and vessels operating in international waters,” she said. “The NZF would cost the maritime industry billions of dollars annually. As the largest consumer of imported goods, these costs will be directly passed onto US consumers.” The NZF aims to set global standards for shipping’s carbon emissions and create a greenhouse gas pricing mechanism for ocean carriers to sharply reduce emissions by 2050. The NZF took a big step forward with the formal adoption of <a href="https://www.joc.com/article/imo-sets-out-path-to-decarbonize-shipping-after-contentious-climate-talks-5982209">a two-tier pricing mechanism at the April 2025 MEPC meeting</a>. The US delegation walked out of the last MEPC meeting in October when heavy pressure from the US forced the group to delay adoption of the net-zero framework for one year, until MEPC’s meeting this November. DiBella said the FMC could act against ocean carriers or foreign-flag ships should the IMO take further steps to adopt the NZF. “If unfavorable shipping conditions are found, the FMC can take remedial steps, including imposing fines and baring foreign-flag vessels from calling at US ports,” the statement said. “In defense of US shippers, (I have) explained to IMO member countries that the NZF will have an anticompetitive and inflationary effect on the global economy.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Federal Maritime Commission (FMC) Chairman Laura DiBella is reiterating US opposition to proposed international rules for reducing greenhouse gas emissions, saying she will use the agency’s enforcement powers to block any move that would increase costs for US shippers. DiBella said in a statement late Monday she will attend this week’s meeting in London of the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC). The meeting includes a session on adopting rules for reducing shipping’s carbon emissions under the IMO’s proposed “net-zero” framework . The Trump administration has made clear its opposition to the net-zero framework, even threatening to leave the IMO due to the issue . DiBella said she will be “reinforcing” that message during her trip. “The NZF is an unnecessary tax on US shippers and vessels operating in international waters,” she said. “The NZF would cost the maritime industry billions of dollars annually. As the largest consumer of imported goods, these costs will be directly passed onto US consumers.” The NZF aims to set global standards for shipping’s carbon emissions and create a greenhouse gas pricing mechanism for ocean carriers to sharply reduce emissions by 2050. The NZF took a big step forward with the formal adoption of a two-tier pricing mechanism at the April 2025 MEPC meeting . The US delegation walked out of the last MEPC meeting in October when heavy pressure from the US forced the group to delay adoption of the net-zero framework for one year, until MEPC’s meeting this November. DiBella said the FMC could act against ocean carriers or foreign-flag ships should the IMO take further steps to adopt the NZF. “If unfavorable shipping conditions are found, the FMC can take remedial steps, including imposing fines and baring foreign-flag vessels from calling at US ports,” the statement said. “In defense of US shippers, (I have) explained to IMO member countries that the NZF will have an anticompetitive and inflationary effect on the global economy.” Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Supply chain

Container Shipping News

Maritime

FMC’s DiBella brings anti-‘net-zero’ message to IMO London meeting

<div class="phx-topic abstract-wrapper">Some ships have been forced to bunker at alternative ports, but the war-driven energy shock hasn’t yet impacted the deployment of tonnage, ocean carriers said at an industry event in Georgia. </div>

Some ships have been forced to bunker at alternative ports, but the war-driven energy shock hasn’t yet impacted the deployment of tonnage, ocean carriers said at an industry event in Georgia.

<div class="phx-topic">Sea Island, Georgia — Container line executives on Tuesday acknowledged that bunker fuel supplies globally are tightening amid the war-driven energy shock, causing congestion at some fuel hubs and forcing some ships to bunker at alternative ports. But they stopped short of saying there were outright fuels shortages that were impacting services. The tighter supplies are requiring more pre-booking work and coordination, but there haven’t been “shortages per se yet,” Fabio Santucci, president of Mediterranean Shipping Co.’s (MSC) US office, said at the Georgia International Trade Conference. Stuart Sandlin, president of Hapag-Lloyd North America, concurred, adding that while rising fuel costs are a problem, “there weren’t any red flags yet.” Shipping analysts <a href="https://www.joc.com/article/container-shipping-faces-blank-sailings-falling-demand-from-prolonged-iran-war-6208766">have warned</a> that ocean carriers may be forced to blank sailings and even outright cancel services in the coming months if bunker fuel supplies continue to tighten amid the ongoing closure of the Strait of Hormuz, through which 20% of the world’s oil supplies typically transit. For now, the focus for shippers is getting a handle on how much more they’ll be paying for fuel, how those costs are calculated, and how much more energy costs could rise. The roughly doubling of the cost of bunker fuel since the war in the Middle East began in late February has spurred ocean carriers to implement emergency fuel surcharges of hundreds of dollars per container, in addition to raising prices via the quarterly bunker adjustment factor (BAF). Because BAFs won’t reset until July 1, Hapag-Lloyd has so far had to eat the roughly doubling of energy costs, equating to <a href="https://www.joc.com/article/war-adding-40-50-million-per-week-to-hapag-lloyds-costs-ceo-6193532">about $50 million weekly</a>, Sandlin said. “We also [told shippers] that whatever you give us in that emergency fuel surcharge because it's in the rear, when the fuel price goes down, we will also give you back every ounce of money you paid us in the emergency fuel surcharge,’” Sandlin said. “We're not looking to double dip on awards.” <h3>No import cuts yet </h3>Ocean carrier executives said they haven’t seen a pullback in US importing since the war began, but noted 2026 would be a challenging year for volume with zero or minimal trade growth expected. US laden imports were down 5.2% year over year in the first quarter, according to PIERS, a sister product of JOC.com within S&amp;P Global. Still, March imports of 2.33 million TEUs were the highest since last August. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ca83526a-50c9-4e3b-b637-6bc435f00c93"></dynamic-object></div>Volumes are holding up currently amid seasonal restocking, with major shipper customers saying they are planning for steady shipments for at least the next three months, Sandlin said. “(However), costs are rising much quicker than the revenues for us on the carrier side, and I think that that's a little bit of a risk because you've got to redeploy your assets to make profitable asset utilization,” he said. “If your services start to not be making a lot of money, then I think you have to look and see what that does for the long-term reliability of your import and export supply chains.” Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

Sea Island, Georgia — Container line executives on Tuesday acknowledged that bunker fuel supplies globally are tightening amid the war-driven energy shock, causing congestion at some fuel hubs and forcing some ships to bunker at alternative ports. But they stopped short of saying there were outright fuels shortages that were impacting services. The tighter supplies are requiring more pre-booking work and coordination, but there haven’t been “shortages per se yet,” Fabio Santucci, president of Mediterranean Shipping Co.’s (MSC) US office, said at the Georgia International Trade Conference. Stuart Sandlin, president of Hapag-Lloyd North America, concurred, adding that while rising fuel costs are a problem, “there weren’t any red flags yet.” Shipping analysts have warned that ocean carriers may be forced to blank sailings and even outright cancel services in the coming months if bunker fuel supplies continue to tighten amid the ongoing closure of the Strait of Hormuz, through which 20% of the world’s oil supplies typically transit. For now, the focus for shippers is getting a handle on how much more they’ll be paying for fuel, how those costs are calculated, and how much more energy costs could rise. The roughly doubling of the cost of bunker fuel since the war in the Middle East began in late February has spurred ocean carriers to implement emergency fuel surcharges of hundreds of dollars per container, in addition to raising prices via the quarterly bunker adjustment factor (BAF). Because BAFs won’t reset until July 1, Hapag-Lloyd has so far had to eat the roughly doubling of energy costs, equating to about $50 million weekly , Sandlin said. “We also [told shippers] that whatever you give us in that emergency fuel surcharge because it's in the rear, when the fuel price goes down, we will also give you back every ounce of money you paid us in the emergency fuel surcharge,’” Sandlin said. “We're not looking to double dip on awards.” No import cuts yet Ocean carrier executives said they haven’t seen a pullback in US importing since the war began, but noted 2026 would be a challenging year for volume with zero or minimal trade growth expected. US laden imports were down 5.2% year over year in the first quarter, according to PIERS, a sister product of JOC.com within S&P Global. Still, March imports of 2.33 million TEUs were the highest since last August. Volumes are holding up currently amid seasonal restocking, with major shipper customers saying they are planning for steady shipments for at least the next three months, Sandlin said. “(However), costs are rising much quicker than the revenues for us on the carrier side, and I think that that's a little bit of a risk because you've got to redeploy your assets to make profitable asset utilization,” he said. “If your services start to not be making a lot of money, then I think you have to look and see what that does for the long-term reliability of your import and export supply chains.” Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Tighter bunker supplies raising costs, but not impacting service: ocean carriers

<div class="phx-topic abstract-wrapper">Baker Hughes, Halliburton and SLB, key drivers of oil and gas project cargoes, say infrastructure repair in the Middle East and supply diversification moves outside the region should result in a heavy book of post-war work.</div>

Baker Hughes, Halliburton and SLB, key drivers of oil and gas project cargoes, say infrastructure repair in the Middle East and supply diversification moves outside the region should result in a heavy book of post-war work.

<div class="phx-topic">Despite supply chain disruptions and logistics cost increases caused by US-Israeli war against Iran and subsequent closure of the Strait of Hormuz, the world’s three largest oilfield services providers are forecasting a windfall of oil and gas projects in the coming years. Should they materialize, the projects would result in a flood of orders for industrial project cargo and breakbulk steel shipments globally. Executives with Baker Hughes, Halliburton and SLB echoed one another’s market outlook that came in their latest quarterly earnings statements, all of which were released in late April. The three Houston-based companies, key drivers of oil and gas project cargoes, face significant exposure to market volatility in the Middle East. During his company’s first-quarter earnings call April 24, SLB CEO Olivier Le Peuch said the global oil and gas supply has lost over 500 million barrels of oil production because of the conflict. “In this environment, energy security remains at the forefront,” Le Peuch said. “We expect many countries to accelerate efforts to diversify supply, strengthen domestic resource development and rebuild strategic and commercial inventories that have been drawn down during the conflict.” War-related disruptions in the Middle East — including energy infrastructure shutdowns in Qatar and Iraq and operational interruptions throughout the region — took a toll on SLB in the first quarter. Net income fell 6% year on year to $752 million, and SLB said its earnings are expected to decrease by 6 to 8 cents per share in the second quarter compared to Q1. Le Peuch cited three primary drivers of global energy projects for 2027 and 2028: the replenishment of depleted oil and gas inventories, the diversification of supply, and countries investing in local oil and gas projects to support long-term energy independence. “The fragility of the global energy complex we are witnessing today demonstrates the strategic importance and long-term value of oil and gas,” he said. <h3>Halliburton looks to long game </h3>Halliburton expects the Iran conflict to drive long-term growth from countries seeking energy security through investments in their own oil and gas projects. The company’s net income for the first quarter shot up 126% over last year to $461 million, or 55 cents per share. But citing rising costs for supply chain logistics and fuel, Halliburton said the company expects a decline of 7 to 9 cents per share in the second quarter compared to the first. “The closure of the Strait (of Hormuz) has resulted in our use of alternative supply chain routes, which has increased logistics costs,” Halliburton COO Shannon Slocum said during the company’s April 21 first-quarter earnings call. “We have also seen price increases in purchased materials and supplies related to the conflict.” Halliburton CEO Jeffrey Miller said the conflict has eliminated the supply overhang for global oil and gas markets. With that, energy security has become a core priority fueling project investments and oilfield services activity. “The world is fundamentally tighter in oil and gas than it was 60 days ago,” Miller said on the earnings call. He said the market trend supports a stronger environment for countries to invest in localized oil and gas projects to ensure a reliable energy supply while reducing dependency on shipments from the Middle East. The recent geopolitical disruptions are also creating an urgency to diversify in countries without their own oil and gas resources. “Energy security is no longer a talking point,” Miller said. “That is going to drive activity, and I think that change is not temporal, but a solid few years.” <h3>Baker Hughes eyes broader project mix </h3>Baker Hughes expects the spike in global demand for oil and gas to accompany an already full slate of projects in multiple sectors. The war has significantly obstructed global liquefied natural gas (LNG) markets, with 20% of worldwide LNG capacity now offline, CEO Lorenzo Simonelli said during the company’s April 24 first-quarter earnings call. “The recent infrastructure damage in the region and the effective closure of the Strait of Hormuz have materially constrained the LNG market’s ability to respond to growing demand, likely to result in a supply shortfall this year,” he said. Diversification worked to Baker Hughes’ advantage in the first quarter, as earnings increased 14% to 58 cents per share while project orders grew 26% year over year to $8.2 billion. That included $4.9 billion in orders for industrial and energy technology projects such as LNG infrastructure, industrial decarbonization, and gas turbines. Power systems, including equipment to support data centers, continue to drive growth and accounted for $1.4 billion of those new orders. “Global power demand is in a multi-year growth cycle, and it’s important to remember we’re only in the early stages,” Simonelli said, citing projections that power demand will double by 2040, driven by factors such as data centers, digital infrastructure expansion, and industrial energy transition projects. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

Despite supply chain disruptions and logistics cost increases caused by US-Israeli war against Iran and subsequent closure of the Strait of Hormuz, the world’s three largest oilfield services providers are forecasting a windfall of oil and gas projects in the coming years. Should they materialize, the projects would result in a flood of orders for industrial project cargo and breakbulk steel shipments globally. Executives with Baker Hughes, Halliburton and SLB echoed one another’s market outlook that came in their latest quarterly earnings statements, all of which were released in late April. The three Houston-based companies, key drivers of oil and gas project cargoes, face significant exposure to market volatility in the Middle East. During his company’s first-quarter earnings call April 24, SLB CEO Olivier Le Peuch said the global oil and gas supply has lost over 500 million barrels of oil production because of the conflict. “In this environment, energy security remains at the forefront,” Le Peuch said. “We expect many countries to accelerate efforts to diversify supply, strengthen domestic resource development and rebuild strategic and commercial inventories that have been drawn down during the conflict.” War-related disruptions in the Middle East — including energy infrastructure shutdowns in Qatar and Iraq and operational interruptions throughout the region — took a toll on SLB in the first quarter. Net income fell 6% year on year to $752 million, and SLB said its earnings are expected to decrease by 6 to 8 cents per share in the second quarter compared to Q1. Le Peuch cited three primary drivers of global energy projects for 2027 and 2028: the replenishment of depleted oil and gas inventories, the diversification of supply, and countries investing in local oil and gas projects to support long-term energy independence. “The fragility of the global energy complex we are witnessing today demonstrates the strategic importance and long-term value of oil and gas,” he said. Halliburton looks to long game Halliburton expects the Iran conflict to drive long-term growth from countries seeking energy security through investments in their own oil and gas projects. The company’s net income for the first quarter shot up 126% over last year to $461 million, or 55 cents per share. But citing rising costs for supply chain logistics and fuel, Halliburton said the company expects a decline of 7 to 9 cents per share in the second quarter compared to the first. “The closure of the Strait (of Hormuz) has resulted in our use of alternative supply chain routes, which has increased logistics costs,” Halliburton COO Shannon Slocum said during the company’s April 21 first-quarter earnings call. “We have also seen price increases in purchased materials and supplies related to the conflict.” Halliburton CEO Jeffrey Miller said the conflict has eliminated the supply overhang for global oil and gas markets. With that, energy security has become a core priority fueling project investments and oilfield services activity. “The world is fundamentally tighter in oil and gas than it was 60 days ago,” Miller said on the earnings call. He said the market trend supports a stronger environment for countries to invest in localized oil and gas projects to ensure a reliable energy supply while reducing dependency on shipments from the Middle East. The recent geopolitical disruptions are also creating an urgency to diversify in countries without their own oil and gas resources. “Energy security is no longer a talking point,” Miller said. “That is going to drive activity, and I think that change is not temporal, but a solid few years.” Baker Hughes eyes broader project mix Baker Hughes expects the spike in global demand for oil and gas to accompany an already full slate of projects in multiple sectors. The war has significantly obstructed global liquefied natural gas (LNG) markets, with 20% of worldwide LNG capacity now offline, CEO Lorenzo Simonelli said during the company’s April 24 first-quarter earnings call. “The recent infrastructure damage in the region and the effective closure of the Strait of Hormuz have materially constrained the LNG market’s ability to respond to growing demand, likely to result in a supply shortfall this year,” he said. Diversification worked to Baker Hughes’ advantage in the first quarter, as earnings increased 14% to 58 cents per share while project orders grew 26% year over year to $8.2 billion. That included $4.9 billion in orders for industrial and energy technology projects such as LNG infrastructure, industrial decarbonization, and gas turbines. Power systems, including equipment to support data centers, continue to drive growth and accounted for $1.4 billion of those new orders. “Global power demand is in a multi-year growth cycle, and it’s important to remember we’re only in the early stages,” Simonelli said, citing projections that power demand will double by 2040, driven by factors such as data centers, digital infrastructure expansion, and industrial energy transition projects. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Energy projects

Project cargo

Breakbulk News

Oilfield services majors bank on flood of oil, gas projects linked to Iran war

<div class="phx-topic abstract-wrapper">STG’s deal with a group of lenders who filed a lawsuit in New York last year clears the way for it to emerge from bankruptcy as the company has benefited from the rebound in intermodal demand.</div>

STG’s deal with a group of lenders who filed a lawsuit in New York last year clears the way for it to emerge from bankruptcy as the company has benefited from the rebound in intermodal demand.

<div class="phx-topic">STG Logistics has cleared the last major obstacle to emerging from Chapter 11 bankruptcy next month after reaching a settlement with a group of minority lenders that had challenged its restructuring. The settlement removes the last serious challenge to STG’s reorganization and leaves the company positioned to exit bankruptcy with customers, and freight volumes, largely intact. STG, which provides transloading, drayage, and domestic intermodal services, has met all the financial commitments made when it filed for Ch. 11 bankruptcy protection in January. Those included maintaining more than $50 million in cash and staying within budget targets for revenue and expenses over the past three months. The company increased volume year over year in the first quarter in Southern California, based on data from RailState, suggesting customers did not pull back business during the restructuring. The company is the fifth-largest US domestic intermodal provider, with 15,000 containers and about $720 million in annual revenue, according to an analysis of bankruptcy filings. STG also benefited from a broader rebound in intermodal demand as March was the <a href="https://www.joc.com/article/strong-march-volumes-give-intermodal-its-first-real-stress-test-in-years-6205604">third-strongest month on record for intermodal volume</a>, according to the Intermodal Association of North America (IANA). The settlement ends a bitter fight that played out over the last two years. After expanding rapidly during the pandemic-related freight boom, including its 2022 purchase of XPO Logistics’ intermodal division, STG entered the freight downturn with too much debt. The company restructured its debt and shifted valuable assets backing older loans into a new entity beyond the reach of some existing lenders, according to Axos and Siemens, who filed a lawsuit in New York last year. In January, Axos and Siemens scored an important win when a New York court ruled that the claims against STG could move forward. Less than a week later, STG filed for bankruptcy in New Jersey, moving the fight into bankruptcy court. Axos and Siemens continued to object, but the settlement has now resolved that challenge. Terms of the agreement were not disclosed. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

STG Logistics has cleared the last major obstacle to emerging from Chapter 11 bankruptcy next month after reaching a settlement with a group of minority lenders that had challenged its restructuring. The settlement removes the last serious challenge to STG’s reorganization and leaves the company positioned to exit bankruptcy with customers, and freight volumes, largely intact. STG, which provides transloading, drayage, and domestic intermodal services, has met all the financial commitments made when it filed for Ch. 11 bankruptcy protection in January. Those included maintaining more than $50 million in cash and staying within budget targets for revenue and expenses over the past three months. The company increased volume year over year in the first quarter in Southern California, based on data from RailState, suggesting customers did not pull back business during the restructuring. The company is the fifth-largest US domestic intermodal provider, with 15,000 containers and about $720 million in annual revenue, according to an analysis of bankruptcy filings. STG also benefited from a broader rebound in intermodal demand as March was the third-strongest month on record for intermodal volume , according to the Intermodal Association of North America (IANA). The settlement ends a bitter fight that played out over the last two years. After expanding rapidly during the pandemic-related freight boom, including its 2022 purchase of XPO Logistics’ intermodal division, STG entered the freight downturn with too much debt. The company restructured its debt and shifted valuable assets backing older loans into a new entity beyond the reach of some existing lenders, according to Axos and Siemens, who filed a lawsuit in New York last year. In January, Axos and Siemens scored an important win when a New York court ruled that the claims against STG could move forward. Less than a week later, STG filed for bankruptcy in New Jersey, moving the fight into bankruptcy court. Axos and Siemens continued to object, but the settlement has now resolved that challenge. Terms of the agreement were not disclosed. Contact Ari Ashe at ari.ashe@spglobal.com .

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STG clears final obstacle to exit bankruptcy as lender dispute ends

<div class="phx-topic abstract-wrapper">The truckload provider slashed its logistics division’s third-party carrier pool by 30% in the first quarter amid growing attention to truck safety nationwide and a federal crackdown on truck driver licensing. </div>

The truckload provider slashed its logistics division’s third-party carrier pool by 30% in the first quarter amid growing attention to truck safety nationwide and a federal crackdown on truck driver licensing.

<div class="phx-topic">Knight-Swift Transportation Holdings is making deep cuts in its brokerage carrier base, targeting businesses that company officials say may be unsafe. “We have cut down the number of carriers that we work with dramatically,” Adam Miller, CEO of the truckload and less-than-truckload (LTL) provider, told Wall Street analysts during the company’s first-quarter earnings call last week. “Just since the beginning of this year, we’re down 30% and we had made a large cut even earlier last year,” Miller said. The cuts at Knight-Swift come amid growing attention to truck safety nationwide, allegations of widespread illegal trucking and <a href="https://www.joc.com/article/usdot-releases-interim-final-rule-on-non-domiciled-cdl-holders-6169023">a federal crackdown on truck driver licensing</a>. “We felt it was prudent for us to take the steps to eliminate capacity that we didn’t feel comfortable with,” Miller said. “And do I think others will do that? I think some will.” Knight-Swift, which reported $7.5 billion in total revenue last year, had $127.6 million in logistics revenue, largely brokerage-based business, in the first quarter. That revenue was down 9.9% from a year earlier, driven by an 18.9% decline in load counts. <h3>Growing pressure to tighten standards </h3>Brokerages and carriers such as Knight-Swift that operate brokerages as part of a transportation portfolio are under growing pressure to tighten standards used to vet carriers. The US Supreme Court is currently considering a case that could determine what level of <a href="https://www.scotusblog.com/2026/02/court-to-consider-whether-freight-brokers-can-be-held-liable-for-negligent-hiring/">legal liability</a> brokerages bear when contracting with asset-based trucking firms. <a href="https://www.cbsnews.com/news/how-dangerous-trucking-schemes-putting-americans-at-risk-60-minutes-transcript/">Recent media coverage</a> about illegal trucking and unsafe carriers has heightened public attention on how brokers vet the carriers they select to haul freight. “We have taken a great number of steps to really ensure that we have high-quality, safe carriers,” Miller said during the conference call. “We vet how long you've been in business. We're looking at evidence that you have logs that we could see where your tractors are.” A real challenge for brokers and shippers, he said, is identifying and monitoring who is driving a brokered truck. “The broker has no idea, in most cases,” said Miller. “We are taking steps to ensure we have a copy of the license, [that] we know who’s in the truck, especially if they’re going to operate and leverage one of our trailers,” he added. In doing so, Knight-Swift is going well beyond basic legal requirements that a freight broker select trucking firms with active operating authority and motor carrier insurance. That’s a decision more brokers and carriers are going to face, said Miller, as a regulatory crackdown on truck driver licensing eliminates more capacity. “Some logistics companies may not have a choice because the capacity they’re leveraging today won’t exist,” he said. “We’re anticipating that our customers are going to start being more concerned about this as this becomes more of a relevant issue,” Miller said. “We’re already seeing that.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

Knight-Swift Transportation Holdings is making deep cuts in its brokerage carrier base, targeting businesses that company officials say may be unsafe. “We have cut down the number of carriers that we work with dramatically,” Adam Miller, CEO of the truckload and less-than-truckload (LTL) provider, told Wall Street analysts during the company’s first-quarter earnings call last week. “Just since the beginning of this year, we’re down 30% and we had made a large cut even earlier last year,” Miller said. The cuts at Knight-Swift come amid growing attention to truck safety nationwide, allegations of widespread illegal trucking and a federal crackdown on truck driver licensing . “We felt it was prudent for us to take the steps to eliminate capacity that we didn’t feel comfortable with,” Miller said. “And do I think others will do that? I think some will.” Knight-Swift, which reported $7.5 billion in total revenue last year, had $127.6 million in logistics revenue, largely brokerage-based business, in the first quarter. That revenue was down 9.9% from a year earlier, driven by an 18.9% decline in load counts. Growing pressure to tighten standards Brokerages and carriers such as Knight-Swift that operate brokerages as part of a transportation portfolio are under growing pressure to tighten standards used to vet carriers. The US Supreme Court is currently considering a case that could determine what level of legal liability brokerages bear when contracting with asset-based trucking firms. Recent media coverage about illegal trucking and unsafe carriers has heightened public attention on how brokers vet the carriers they select to haul freight. “We have taken a great number of steps to really ensure that we have high-quality, safe carriers,” Miller said during the conference call. “We vet how long you've been in business. We're looking at evidence that you have logs that we could see where your tractors are.” A real challenge for brokers and shippers, he said, is identifying and monitoring who is driving a brokered truck. “The broker has no idea, in most cases,” said Miller. “We are taking steps to ensure we have a copy of the license, [that] we know who’s in the truck, especially if they’re going to operate and leverage one of our trailers,” he added. In doing so, Knight-Swift is going well beyond basic legal requirements that a freight broker select trucking firms with active operating authority and motor carrier insurance. That’s a decision more brokers and carriers are going to face, said Miller, as a regulatory crackdown on truck driver licensing eliminates more capacity. “Some logistics companies may not have a choice because the capacity they’re leveraging today won’t exist,” he said. “We’re anticipating that our customers are going to start being more concerned about this as this becomes more of a relevant issue,” Miller said. “We’re already seeing that.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

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Knight-Swift making safety-related cuts to brokerage fleet

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