<div class="phx-topic abstract-wrapper">Pan American Gold Inc. of Indialantic, Fla., announced its purchase of a 25 percent interest in two</div>

Pan American Gold Inc. of Indialantic, Fla., announced its purchase of a 25 percent interest in two

<div>Pan American Gold Inc. of Indialantic, Fla., announced its purchase of a 25 percent interest in two gold mining concessions, known as the Masapa Concessions, consisting of approximately 1,000 acres situated in the Tipuani region of Bolivia, South America.At an average world market price of $400 a troy ounce, minus a fineness discount of 5 percent, proven reserves are expected to generate gross revenues of approximately $12.5 million, with probable reserves adding an additional $45,000,000.</div>...

Pan American Gold Inc. of Indialantic, Fla., announced its purchase of a 25 percent interest in two gold mining concessions, known as the Masapa Concessions, consisting of approximately 1,000 acres situated in the Tipuani region of Bolivia, South America. At an average world market price of $400 a troy ounce, minus a fineness discount of 5 percent, proven reserves are expected to generate gross revenues of approximately $12.5 million, with probable reserves adding an additional $45,000,000.

Maritime

PAN AMERICAN BUYS GOLD STAKE

<div class="phx-topic abstract-wrapper">A proposed amendment that could be included in the 2026 defense spending bill would allow terminal operators to receive the same tax breaks now available to the US shipbuilding industry. </div>

A proposed amendment that could be included in the 2026 defense spending bill would allow terminal operators to receive the same tax breaks now available to the US shipbuilding industry.

Feature image

<div class="phx-topic">US ports, looking to leverage national security concerns over Chinese-made cargo handling equipment, want tax breaks for purchasing domestic ship-to-shore cranes to be included in Congress’s next defense spending bill.With the 2026 defense authorization bill introduced this week, the National Association of Waterfront Employers (NAWE) asked Congress on Wednesday to include an amendment that would expand a tax-deferral program for purchasing US-built ships to include US-built cargo handling equipment. The amendment, originally introduced in June by Rep. Mike Ezell (R-Mississippi), would include cargo handling equipment as part of the Capital Construction Fund, which is overseen by the US Maritime Administration (Marad). The program allows ocean carriers and vessel operators to defer taxes on any funds set aside for buying or building a US-built ship. Similarly, Ezell’s amendment would allow marine terminal operators to defer taxes on any funds set aside for US-built cargo handling equipment. NAWE, whose members operate at 16 US ports deemed critical for US defense, said in a statement the amendment would “allow the industry to safely and securely transition away from cargo handling equipment produced in China...(and)...sustain US military operations abroad.”“Expanding the CCF will ensure that private marine terminal operators can reinvest in safer, cleaner, and more efficient equipment — strengthening America’s ports, boosting domestic manufacturing and enhancing national security,” NAWE President Carl Bentzel said.As part of the Defense Department’s broader goal of incentivizing US shipbuilding, the CCF was expanded in 2023’s defense spending authorization to cover a broader array of vessels. Marad said the fund held $2.6 billion from 136 US vessel operators as of 2023. Ezell’s amendment comes as <a href="https://www.joc.com/article/ports-look-to-delay-proposed-us-tariffs-on-chinese-made-cranes-6007628">marine terminal operators face tariffs of up to 100%</a> on Chinese-made ship-to-shore cranes beginning Oct. 14. He is also backing a bill introduced over the summer that would provide <a href="https://www.joc.com/article/congress-eyes-a-tax-credit-for-reshoring-port-crane-manufacturing-6053124">tax credits to domestic manufacturers</a> of ship-to-shore cranes. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

US ports, looking to leverage national security concerns over Chinese-made cargo handling equipment, want tax breaks for purchasing domestic ship-to-shore cranes to be included in Congress’s next defense spending bill. With the 2026 defense authorization bill introduced this week, the National Association of Waterfront Employers (NAWE) asked Congress on Wednesday to include an amendment that would expand a tax-deferral program for purchasing US-built ships to include US-built cargo handling equipment. The amendment, originally introduced in June by Rep. Mike Ezell (R-Mississippi), would include cargo handling equipment as part of the Capital Construction Fund, which is overseen by the US Maritime Administration (Marad). The program allows ocean carriers and vessel operators to defer taxes on any funds set aside for buying or building a US-built ship. Similarly, Ezell’s amendment would allow marine terminal operators to defer taxes on any funds set aside for US-built cargo handling equipment. NAWE, whose members operate at 16 US ports deemed critical for US defense, said in a statement the amendment would “allow the industry to safely and securely transition away from cargo handling equipment produced in China...(and)...sustain US military operations abroad.” “Expanding the CCF will ensure that private marine terminal operators can reinvest in safer, cleaner, and more efficient equipment — strengthening America’s ports, boosting domestic manufacturing and enhancing national security,” NAWE President Carl Bentzel said. As part of the Defense Department’s broader goal of incentivizing US shipbuilding, the CCF was expanded in 2023’s defense spending authorization to cover a broader array of vessels. Marad said the fund held $2.6 billion from 136 US vessel operators as of 2023. Ezell’s amendment comes as marine terminal operators face tariffs of up to 100% on Chinese-made ship-to-shore cranes beginning Oct. 14. He is also backing a bill introduced over the summer that would provide tax credits to domestic manufacturers of ship-to-shore cranes. Contact Michael Angell at michael.angell@spglobal.com

Marine terminals

Port infrastructure

North American ports

US ports look to Congress for tax breaks on replacing Chinese cranes

<div class="phx-topic abstract-wrapper">That’s an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed.</div>

That’s an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed.

<div class="phx-topic">Western US railroads BNSF and Union Pacific largely kept ocean containers flowing smoothly in August through the key hubs of Chicago, Dallas, Kansas City and Memphis as Southern California’s July import surge moved inland, according to data and market participants. That’s an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed. Chassis were easy to find in inland cities and overall turn times for drivers were manageable, truckers say. “Surprisingly, everything's been relatively smooth,” Paul Brashier, vice president of global logistics for ITS Logistics, told the Journal of Commerce. “The ports were busy in July. Then the cargo moved inland in August, and for the most part, the ecosystem handled it fine. The freight is flowing relatively well.” Some truck drivers have faced longer waits at Union Pacific’s Global IV terminal in Joliet, Ill., and at Norfolk Southern’s Landers terminal in Chicago, but those delays have been sporadic and predated the recent uptick in international intermodal traffic. BNSF’s <a href="https://www.joc.com/article/bad-weather-early-peak-demand-slowed-bnsf-trains-last-month-6074860">train speeds slowed</a> in August, but the railroad attributed that to flash flooding near Amarillo, Tex., and extreme heat in California’s Mojave Desert. While the bad weather extended transit times, it did not create congestion inside terminals. The Pacific Merchant Shipping Association (PMSA) reported that the average rail container dwell in Los Angeles and Long Beach in July was 5.18 days, down from 5.66 days a year earlier. August figures are expected in the coming weeks. Last year, rail dwells jumped to 8.2 days in August, 9.25 days in September and 9.86 days in October. Mike Jacob, president of the PMSA, doesn’t expect that to happen this year. "We really don't see a lot out there that's going to be super-challenging," Jacob told the Journal of Commerce. “[Railroads are] as good as or even better than last year…The railroads were making sure they weren't leaving anything on the docks. The total structural performance versus the pandemic is like night and day.” Marine terminal executives in Los Angeles and Long Beach offered a similar view, saying railcar supply and service have been solid since early August. At Yusen Terminals, where dwell times swelled to more than 10 days last August and September, conditions appear unlikely to repeat, according to Yusen President Alan McCorkle. <h3>Rails cite investment </h3>UP’s service metrics have held up better during this peak season so far than in the last two. In the final week of August, its average intermodal train speeds ranked in the 96th percentile of all weeks since 2017, according to a Journal of Commerce analysis of US Surface Transportation Board data. The number of intermodal trains held in route was likewise lower than in 96% of weeks over that span, even as loaded railcars idling for more than 48 hours was the highest for the month of August in three years. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="cffd049d-9f51-41dc-be55-f79bcf5d15a5"></dynamic-object></div>Nevertheless, UP’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, has stayed positive during this peak season thus far, a contrast to 2023 and 2024 when the score flipped negative during the peak months. “Union Pacific has invested $1.4 billion in our intermodal terminals since 2020, opening four new terminals,” said Robynn Tysver, a spokesperson for UP. “Investment in technology has been a game changer at intermodal terminals, notably the new gate technology that gives drivers a seamless, efficient experience in-gating and out-gating, helping us to deliver a strong and reliable service to the market.” BNSF has zeroed in on Memphis this summer, where drivers have lodged more complaints than at its hubs in Chicago, Kansas City and Fort Worth. In response, the railroad deployed a resource team to Memphis to monitor wait times in real time and coordinate with drivers and crane operators to move boxes faster. Jon Gabriel, BNSF’s group vice president of consumer products, said the effort has already paid off. “Our driver average turn time has come down about 30% since this summer,” Gabriel said. “This dedicated resource (in Memphis), strictly focused on driver throughput and the driver experience, has made a big difference. It was a pilot program, but it’s been very successful. If need be, we’ll certainly look to scale it elsewhere in our network.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a> and Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

Western US railroads BNSF and Union Pacific largely kept ocean containers flowing smoothly in August through the key hubs of Chicago, Dallas, Kansas City and Memphis as Southern California’s July import surge moved inland, according to data and market participants. That’s an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed. Chassis were easy to find in inland cities and overall turn times for drivers were manageable, truckers say. “Surprisingly, everything's been relatively smooth,” Paul Brashier, vice president of global logistics for ITS Logistics, told the Journal of Commerce. “The ports were busy in July. Then the cargo moved inland in August, and for the most part, the ecosystem handled it fine. The freight is flowing relatively well.” Some truck drivers have faced longer waits at Union Pacific’s Global IV terminal in Joliet, Ill., and at Norfolk Southern’s Landers terminal in Chicago, but those delays have been sporadic and predated the recent uptick in international intermodal traffic. BNSF’s train speeds slowed in August, but the railroad attributed that to flash flooding near Amarillo, Tex., and extreme heat in California’s Mojave Desert. While the bad weather extended transit times, it did not create congestion inside terminals. The Pacific Merchant Shipping Association (PMSA) reported that the average rail container dwell in Los Angeles and Long Beach in July was 5.18 days, down from 5.66 days a year earlier. August figures are expected in the coming weeks. Last year, rail dwells jumped to 8.2 days in August, 9.25 days in September and 9.86 days in October. Mike Jacob, president of the PMSA, doesn’t expect that to happen this year. "We really don't see a lot out there that's going to be super-challenging," Jacob told the Journal of Commerce. “[Railroads are] as good as or even better than last year…The railroads were making sure they weren't leaving anything on the docks. The total structural performance versus the pandemic is like night and day.” Marine terminal executives in Los Angeles and Long Beach offered a similar view, saying railcar supply and service have been solid since early August. At Yusen Terminals, where dwell times swelled to more than 10 days last August and September, conditions appear unlikely to repeat, according to Yusen President Alan McCorkle. Rails cite investment UP’s service metrics have held up better during this peak season so far than in the last two. In the final week of August, its average intermodal train speeds ranked in the 96th percentile of all weeks since 2017, according to a Journal of Commerce analysis of US Surface Transportation Board data. The number of intermodal trains held in route was likewise lower than in 96% of weeks over that span, even as loaded railcars idling for more than 48 hours was the highest for the month of August in three years. Nevertheless, UP’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, has stayed positive during this peak season thus far, a contrast to 2023 and 2024 when the score flipped negative during the peak months. “Union Pacific has invested $1.4 billion in our intermodal terminals since 2020, opening four new terminals,” said Robynn Tysver, a spokesperson for UP. “Investment in technology has been a game changer at intermodal terminals, notably the new gate technology that gives drivers a seamless, efficient experience in-gating and out-gating, helping us to deliver a strong and reliable service to the market.” BNSF has zeroed in on Memphis this summer, where drivers have lodged more complaints than at its hubs in Chicago, Kansas City and Fort Worth. In response, the railroad deployed a resource team to Memphis to monitor wait times in real time and coordinate with drivers and crane operators to move boxes faster. Jon Gabriel, BNSF’s group vice president of consumer products, said the effort has already paid off. “Our driver average turn time has come down about 30% since this summer,” Gabriel said. “This dedicated resource (in Memphis), strictly focused on driver throughput and the driver experience, has made a big difference. It was a pilot program, but it’s been very successful. If need be, we’ll certainly look to scale it elsewhere in our network.” Contact Ari Ashe at ari.ashe@spglobal.com and Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Rail News

BNSF, UP kept rail terminals fluid in August amid IPI surge

<div class="phx-topic abstract-wrapper">Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand.</div>

Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand.

<div class="phx-topic">BNSF Railway’s intermodal train speeds in August were its slowest of 2025 and among its lowest in more than eight years, with the railroad blaming the slowdown on an early peak season that clashed with construction projects, flash flooding in parts of its network and extreme heat in the California desert. The disruptions didn’t impact BNSF’s terminal operations — the loading and unloading of trains and cargo handoffs to trucks — but rather trains in transit. Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand, the railroad said. “[August is] the time of year that we typically have our highest capital gain maintenance activity [repairing our] infrastructure needs ahead of domestic intermodal peak season and parcel holiday shipments,” Jon Gabriel, BNSF’s group vice president of consumer products, told the Journal of Commerce. “But with the pull forward, we saw more demand than we would typically see in July and August. The capital projects have been wrapped up.” BNSF expects weather to be less of a factor this fall, particularly between Amarillo, Texas, and Emporia, Kansas, where flash flooding was a problem in July and August. In Amarillo, there was flash flooding on July 24–25, Aug. 12, and Aug. 29–30. BNSF’s southern transcontinental network crosses New Mexico and then loops northeast through Amarillo and Emporia en route to Kansas City. “With flash flooding, we bring our trains down to 20 miles per hour or less,” Gabriel said. “Train crews need to visually look out for any water over the top of rail. You think about our [southern US network] at any given day, we may have 250 to 300 trains operating on it, and especially in the middle of the night, we had traffic slowed down.” <h3>‘Z Score’ flips to negative </h3>Heat, meanwhile, was a disruption in the California desert, with tracks requiring close inspection to monitor for any deformities in the steel that could cause a derailment. Two major heat waves hit the Mojave Desert in California, sending temperatures above 110 degrees on several days last month. The earlier demand and weather-related factors caused BNSF’s intermodal train speeds for all four weeks of August to be slower than 95% of all weeks dating back to 2017, according to a Journal of Commerce analysis of data from the US Surface Transportation Board (STB). <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ef92b52a-168e-4e14-88eb-3b647a1dd66e"></dynamic-object></div>As train speeds fell, the number of loaded BNSF railcars idling excessively jumped. In the last week of August, an average of nearly 279 loaded railcars each day were classified as idling excessively on the BNSF network, meaning not moving for more than 48 hours. The figure was higher than 72% of all weeks dating back to 2017, according to the STB data. BNSF’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, flipped from positive to negative last month. Positive scores indicate outperformance versus norms; negative scores indicate underperformance. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

BNSF Railway’s intermodal train speeds in August were its slowest of 2025 and among its lowest in more than eight years, with the railroad blaming the slowdown on an early peak season that clashed with construction projects, flash flooding in parts of its network and extreme heat in the California desert. The disruptions didn’t impact BNSF’s terminal operations — the loading and unloading of trains and cargo handoffs to trucks — but rather trains in transit. Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand, the railroad said. “[August is] the time of year that we typically have our highest capital gain maintenance activity [repairing our] infrastructure needs ahead of domestic intermodal peak season and parcel holiday shipments,” Jon Gabriel, BNSF’s group vice president of consumer products, told the Journal of Commerce. “But with the pull forward, we saw more demand than we would typically see in July and August. The capital projects have been wrapped up.” BNSF expects weather to be less of a factor this fall, particularly between Amarillo, Texas, and Emporia, Kansas, where flash flooding was a problem in July and August. In Amarillo, there was flash flooding on July 24–25, Aug. 12, and Aug. 29–30. BNSF’s southern transcontinental network crosses New Mexico and then loops northeast through Amarillo and Emporia en route to Kansas City. “With flash flooding, we bring our trains down to 20 miles per hour or less,” Gabriel said. “Train crews need to visually look out for any water over the top of rail. You think about our [southern US network] at any given day, we may have 250 to 300 trains operating on it, and especially in the middle of the night, we had traffic slowed down.” ‘Z Score’ flips to negative Heat, meanwhile, was a disruption in the California desert, with tracks requiring close inspection to monitor for any deformities in the steel that could cause a derailment. Two major heat waves hit the Mojave Desert in California, sending temperatures above 110 degrees on several days last month. The earlier demand and weather-related factors caused BNSF’s intermodal train speeds for all four weeks of August to be slower than 95% of all weeks dating back to 2017, according to a Journal of Commerce analysis of data from the US Surface Transportation Board (STB). As train speeds fell, the number of loaded BNSF railcars idling excessively jumped. In the last week of August, an average of nearly 279 loaded railcars each day were classified as idling excessively on the BNSF network, meaning not moving for more than 48 hours. The figure was higher than 72% of all weeks dating back to 2017, according to the STB data. BNSF’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, flipped from positive to negative last month. Positive scores indicate outperformance versus norms; negative scores indicate underperformance. Contact Ari Ashe at ari.ashe@spglobal.com .

North-American rail

Bad weather, early peak demand slowed BNSF trains last month

<div class="phx-topic abstract-wrapper">The dismal outlook for the second half of the year is prompting Wall Street analysts to rein in earnings expectations as many carriers also report steep declines in their profit margins amid a mix of overcapacity and “tariff-driven cost escalation.”</div>

The dismal outlook for the second half of the year is prompting Wall Street analysts to rein in earnings expectations as many carriers also report steep declines in their profit margins amid a mix of overcapacity and “tariff-driven cost escalation.”

<div class="phx-topic">Ocean carrier earnings this year are expected to fall by more than half compared with last year, as profit margins slip to 2023 levels. And with vessel capacity outstripping demand for the foreseeable future, liner operators face the prospect of a loss-making 2026.Full-year 2025 earnings for eight publicly-traded ocean carriers are expected to fall by an average of 61% compared with 2024, according to Capital IQ Estimates, a sister company of the Journal of Commerce within S&amp;P Global. The consensus analyst estimates as of September mark a further ratcheting down from the 53% drop in 2025 earnings expected as of March 31. The downward revision comes after carriers reported second-quarter results and offered up dismal forecasts for the remainder of 2025. Out of all the carriers, only Maersk saw its earnings estimates revised upward after Chief Executive Vincent Clerc said <a href="https://www.joc.com/article/maersk-ceo-vows-to-reach-logistics-profit-margin-target-by-year-end-6059993">its non-ocean logistics business would hit its 2025 profit margin targets</a>.Investment bank HSBC said in a report on Tuesday that import frontloading during the second quarter will dampen demand throughout the rest of 2025. The investment bank added that as retail goods that came in ahead of tariffs get replaced with goods subject to tariffs, consumers could rein in spending, thus hurting further inventory replenishment.“We think tariff-driven cost escalation would suppress consumer demand while frontloadings from Q2 to early Q3 could retard retailer restocking cycles in H2,” HSBC said. “In this context, we argue that carriers would face margin compression as they balance capacity cuts against softening demand in the rest of the year.”<h3>Big decline in operating margins</h3>Alphaliner noted the margin compression in its weekly report Tuesday. Since hitting their most recent peak of 38.4% in the third quarter of 2024, operating profit margins for ocean carriers have since fallen to 9.9% as of the second quarter of 2025, the lowest level since the fourth quarter of 2023, according to Alphaliner. It said the rerouting of ships away from the Suez Canal was the big factor in 2024 margin strength.“This time round, margins are falling while the Red Sea crisis continues,” Alphaliner said, adding that a weaker earnings outlook and margin compression were seen in carriers reporting the steepest declines in their freight rates. South Korea’s HMM reported a 22% year-over-year decline in revenue per TEU for the second quarter, Alphaliner said. The carrier’s operating margins fell from 30% last year to 9% for the second quarter of 2025, according to Capital IQ, while earnings for 2025 are now expected to fall 50% compared with a consensus estimate of a 28% decline back in March. Zim reported an 11% year-over-year decline in freight rates during the second quarter, Alphaliner said. While the carrier reported a 29% operating margin in 2024, its most recent operating margin was 9%, according to Capital IQ. Analysts’ consensus estimates now show Zim’s profits falling 82% this year. Alphaliner noted that Wan Hai Lines, Evergreen Marine and Cosco Shipping reported second-quarter operating margins well above the industry average, attributing their margin strength to exposure to trades outside of the US that have proved more resilient. As for 2026, the outlook is not much better. A <a href="https://www.joc.com/article/rocky-stretch-ahead-for-shippers-carriers-in-2026-and-beyond-6069904">J.P. Morgan report last week</a> said shipping rates globally could slip below $1,000 per TEU due to tepid demand and an oversupply of vessels. With <a href="https://www.joc.com/article/ocean-carriers-intensify-cost-cutting-efforts-as-rates-slide-on-major-trades-6069811">operating costs increasing</a> and the potential return of Suez Canal transits exacerbating oversupply, “we expect material EBIT losses” in 2026 for the liner operators under its analyst coverage, the bank said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>.</div>

Ocean carrier earnings this year are expected to fall by more than half compared with last year, as profit margins slip to 2023 levels. And with vessel capacity outstripping demand for the foreseeable future, liner operators face the prospect of a loss-making 2026. Full-year 2025 earnings for eight publicly-traded ocean carriers are expected to fall by an average of 61% compared with 2024, according to Capital IQ Estimates, a sister company of the Journal of Commerce within S&P Global. The consensus analyst estimates as of September mark a further ratcheting down from the 53% drop in 2025 earnings expected as of March 31. The downward revision comes after carriers reported second-quarter results and offered up dismal forecasts for the remainder of 2025. Out of all the carriers, only Maersk saw its earnings estimates revised upward after Chief Executive Vincent Clerc said its non-ocean logistics business would hit its 2025 profit margin targets . Investment bank HSBC said in a report on Tuesday that import frontloading during the second quarter will dampen demand throughout the rest of 2025. The investment bank added that as retail goods that came in ahead of tariffs get replaced with goods subject to tariffs, consumers could rein in spending, thus hurting further inventory replenishment. “We think tariff-driven cost escalation would suppress consumer demand while frontloadings from Q2 to early Q3 could retard retailer restocking cycles in H2,” HSBC said. “In this context, we argue that carriers would face margin compression as they balance capacity cuts against softening demand in the rest of the year.” Big decline in operating margins Alphaliner noted the margin compression in its weekly report Tuesday. Since hitting their most recent peak of 38.4% in the third quarter of 2024, operating profit margins for ocean carriers have since fallen to 9.9% as of the second quarter of 2025, the lowest level since the fourth quarter of 2023, according to Alphaliner. It said the rerouting of ships away from the Suez Canal was the big factor in 2024 margin strength. “This time round, margins are falling while the Red Sea crisis continues,” Alphaliner said, adding that a weaker earnings outlook and margin compression were seen in carriers reporting the steepest declines in their freight rates. South Korea’s HMM reported a 22% year-over-year decline in revenue per TEU for the second quarter, Alphaliner said. The carrier’s operating margins fell from 30% last year to 9% for the second quarter of 2025, according to Capital IQ, while earnings for 2025 are now expected to fall 50% compared with a consensus estimate of a 28% decline back in March. Zim reported an 11% year-over-year decline in freight rates during the second quarter, Alphaliner said. While the carrier reported a 29% operating margin in 2024, its most recent operating margin was 9%, according to Capital IQ. Analysts’ consensus estimates now show Zim’s profits falling 82% this year. Alphaliner noted that Wan Hai Lines, Evergreen Marine and Cosco Shipping reported second-quarter operating margins well above the industry average, attributing their margin strength to exposure to trades outside of the US that have proved more resilient. As for 2026, the outlook is not much better. A J.P. Morgan report last week said shipping rates globally could slip below $1,000 per TEU due to tepid demand and an oversupply of vessels. With operating costs increasing and the potential return of Suez Canal transits exacerbating oversupply, “we expect material EBIT losses” in 2026 for the liner operators under its analyst coverage, the bank said. Contact Michael Angell at michael.angell@spglobal.com .

Trans-Atlantic

Asia-Europe

Trans-Pacific

Container lines

Ocean carrier profit margins, earnings outlook for 2025 trimmed further

<div class="phx-topic abstract-wrapper">Fifteen of the 27 EU countries will postpone implementation of the customs risk analysis program for imports into the EU until the end of the year, including France, Belgium, Spain and Italy.</div>

Fifteen of the 27 EU countries will postpone implementation of the customs risk analysis program for imports into the EU until the end of the year, including France, Belgium, Spain and Italy.

<div class="phx-topic">More than half of the European Union’s 27 member nations will delay implementation of the advance cargo information system for road and rail shipments that was supposed to require full compliance from Sept. 1 to give service providers more time to prepare. But the four-month postponement of the final segment of the Import Control System 2 (ICS2) regulation — a customs risk analysis program for imports into the EU that has taken five years to fully launch — has been roundly criticized by shippers and transport organizations. The incomplete rollout has created “a patchwork implementation that will confuse and frustrate” parties that move cargo into the EU, according to James Hookham, director-general of the Global Shippers’ Forum “It’s an EU-wide system so it’s either ready to work in 27 member states — plus Norway, Northern Ireland and Switzerland — or it’s not,” Hookham told the Journal of Commerce Wednesday. The ICS2 advance filing system was applied to air cargo in 2021 and ocean shipments in 2024. Under ICS2 “Release 3” on Sept. 1, the regulation was applied to road and rail shipments that now also require Entry Summary Declarations (ENS) for shipments entering or transiting the EU Customs Territory. Bryn Heimbeck, president and co-founder of global logistics platform TradeTech, noted that although ICS2 Release 3 was an important step in strengthening supply chain security in Europe, “the decision to allow postponements has created different timelines across the EU, which can be challenging for participants to navigate.” He said 15 of the 27 EU countries will delay implementation of ICS2 Release 3, including France, Belgium, Spain and Italy. The postponements are expected to be in effect until the end of the year, with full compliance mandatory once they expire. Road transport association IRU said granting postponements to EU member nations was logical if the system was not ready, but should have been applied to all member states. “In the current situation, a two-speed approach will expose road transport operators to high penalties and will force difficult and expensive decisions on the routing of operations, while customs administrations may struggle with high volumes of incomplete or missing ENS declarations,” IRU said in a statement, warning of “severe disruption” at the EU’s external borders. <h3>Landside cargo challenges </h3>While the ICS2 was rolled out relatively painlessly for the ocean sectors, bringing the EU’s customs regulatory processes and data configurations in line with those of the US, Canada and Japan, preparations for advance information for landside cargo have proved to be complicated. The European Association for Forwarding, Transport, Logistics and Customs Services (Clecat), explained in a recent letter to the European Commission that land borders, unlike seaports and airports, had limited capacity and could be congested by only a few delayed trucks. “Practical challenges unique to road and rail, such as split loads, the prevalence of small carriers and the need for a multitude of non-EU operators to register in EU systems were clearly overlooked when assigning the same deployment timeline to all modes of transport,” the forwarder association noted. Clecat, the Global Shippers’ Forum and IRU have urged the European Commission to grant a non-enforcement period for ICS2 for road and rail, warning of serious blockages at European land borders. “The European Commission should act without delay and announce a six-month grace period at EU level to avoid fragmentation, ensure legal certainty and prevent disruption to European supply chains,” Clecat wrote in its letter to Brussels. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

More than half of the European Union’s 27 member nations will delay implementation of the advance cargo information system for road and rail shipments that was supposed to require full compliance from Sept. 1 to give service providers more time to prepare. But the four-month postponement of the final segment of the Import Control System 2 (ICS2) regulation — a customs risk analysis program for imports into the EU that has taken five years to fully launch — has been roundly criticized by shippers and transport organizations. The incomplete rollout has created “a patchwork implementation that will confuse and frustrate” parties that move cargo into the EU, according to James Hookham, director-general of the Global Shippers’ Forum “It’s an EU-wide system so it’s either ready to work in 27 member states — plus Norway, Northern Ireland and Switzerland — or it’s not,” Hookham told the Journal of Commerce Wednesday. The ICS2 advance filing system was applied to air cargo in 2021 and ocean shipments in 2024. Under ICS2 “Release 3” on Sept. 1, the regulation was applied to road and rail shipments that now also require Entry Summary Declarations (ENS) for shipments entering or transiting the EU Customs Territory. Bryn Heimbeck, president and co-founder of global logistics platform TradeTech, noted that although ICS2 Release 3 was an important step in strengthening supply chain security in Europe, “the decision to allow postponements has created different timelines across the EU, which can be challenging for participants to navigate.” He said 15 of the 27 EU countries will delay implementation of ICS2 Release 3, including France, Belgium, Spain and Italy. The postponements are expected to be in effect until the end of the year, with full compliance mandatory once they expire. Road transport association IRU said granting postponements to EU member nations was logical if the system was not ready, but should have been applied to all member states. “In the current situation, a two-speed approach will expose road transport operators to high penalties and will force difficult and expensive decisions on the routing of operations, while customs administrations may struggle with high volumes of incomplete or missing ENS declarations,” IRU said in a statement, warning of “severe disruption” at the EU’s external borders. Landside cargo challenges While the ICS2 was rolled out relatively painlessly for the ocean sectors, bringing the EU’s customs regulatory processes and data configurations in line with those of the US, Canada and Japan, preparations for advance information for landside cargo have proved to be complicated. The European Association for Forwarding, Transport, Logistics and Customs Services (Clecat), explained in a recent letter to the European Commission that land borders, unlike seaports and airports, had limited capacity and could be congested by only a few delayed trucks. “Practical challenges unique to road and rail, such as split loads, the prevalence of small carriers and the need for a multitude of non-EU operators to register in EU systems were clearly overlooked when assigning the same deployment timeline to all modes of transport,” the forwarder association noted. Clecat, the Global Shippers’ Forum and IRU have urged the European Commission to grant a non-enforcement period for ICS2 for road and rail, warning of serious blockages at European land borders. “The European Commission should act without delay and announce a six-month grace period at EU level to avoid fragmentation, ensure legal certainty and prevent disruption to European supply chains,” Clecat wrote in its letter to Brussels. Contact Greg Knowler at greg.knowler@spglobal.com .

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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