<div class="phx-topic abstract-wrapper">Although the project site is currently unused, it was pressed into service as a storage yard for empty containers during the pandemic, with as many as 7,000 boxes stored there when it was at full capacity in August 2022.</div>

Although the project site is currently unused, it was pressed into service as a storage yard for empty containers during the pandemic, with as many as 7,000 boxes stored there when it was at full capacity in August 2022.

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<div>The Port of Los Angeles intends to improve fluidity at its six container terminals by developing an 80-acre near-dock site that will be used for container storage and chassis maintenance and repair. The port on Thursday took the first step in the environmental review process with the release of an “initial study/notice of preparation” for the proposed project, known as the Terminal Island Maritime Support Facility (MSF). The MSF will provide a full-service chassis depot for storage, maintenance and repair of chassis, while the facility would also serve as a temporary storage yard for empty containers. It’s intended to help...

The Port of Los Angeles intends to improve fluidity at its six container terminals by developing an 80-acre near-dock site that will be used for container storage and chassis maintenance and repair. The port on Thursday took the first step in the environmental review process with the release of an “initial study/notice of preparation” for the proposed project, known as the Terminal Island Maritime Support Facility (MSF). The MSF will provide a full-service chassis depot for storage, maintenance and repair of chassis, while the facility would also serve as a temporary storage yard for empty containers. It’s intended to help free up space for cargo-handling activities at POLA’s container terminals, the port said in a statement. Los Angeles, similar to other West Coast ports, experienced extreme terminal congestion and inland supply chain bottlenecks during the pandemic-driven cargo surge in 2021 and 2022. A backlog of laden and empty containers, as well as chassis-related bottlenecks, reduced cargo velocity at the terminals and contributed to congestion. Although the project site is currently unused, it was pressed into service as a storage yard for empty containers during the pandemic, with as many as 7,000 boxes stored there when it was at full capacity in August 2022, according to the port’s website. The port, which owns the property, said it will lease the site to a private company for up to 25 years, adding it will hold a virtual public meeting on Jan. 9 to receive comments about the project. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

North American ports

Maritime

Port of Los Angeles plans to build near-dock chassis facility, container storage yard

<div class="phx-topic abstract-wrapper">The materialization of any seasonal import rush and how carriers respond with capacity will give the container shipping market a better sense of first-half demand.</div>

The materialization of any seasonal import rush and how carriers respond with capacity will give the container shipping market a better sense of first-half demand.

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<div class="phx-topic">The seasonal rush of US imports before Chinese factories idle in mid-February for Lunar New Year will be the trans-Pacific trade’s first major test of 2026, with forwarders and carriers divided on the strength of demand in a largely depressed market.  The materialization of any seasonal rush and how carriers respond with capacity will give the industry a better sense of first-half demand, reflecting restocking for post-holiday sales and demand for spring wares. The surge in shipping before Chinese production significantly slows ahead of the Lunar New Year has historically pushed up spot rates, giving carriers better standing in trans-Pacific service contracts. The National Retail Federation (NRF), in its monthly Global Port Tracker released on Friday, forecasted the first month-over-month gain in import volumes (January from December) in six months, but noted that year-over-year import volumes would remain negative compared to quite strong import volumes early in 2025 as retailers frontloaded merchandise due to the expectation of higher tariffs. “There should be a brief bump in imports this month ahead of Lunar New Year factory shutdowns in Asia, but we’re otherwise headed into the post-holiday shopping lull that comes each year,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in a statement accompanying the group’s import forecast. Monthly imports are down by double-digits year-over-year, but, encouragingly, bookings for Asia exports to North America have held up in the last two months, according to data from maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. Weekly Asia export bookings to the West Coast of North America began rising in December from November, averaging more than 150,000 TEUs a week on a four-week average compared to 77,000-80,000 TEUs per week in the prior month, according to the data. According to the ports of Los Angeles and Long Beach, which forecast the vessel arrivals and TEUs they will handle several weeks in advance, import volumes are peaking at the port complex at about 220,000 TEUs during the week of Jan. 4 and about 210,000 TEUs for the week of Jan. 11. Imports of 200,000 TEUs-plus represent a solid week in the largest US gateway. Imports are forecasted to drop over the subsequent three weeks to about 175,000 TEUs, which is considered a normal seasonal lull, before returning to higher levels beginning in mid-February as freight that was loaded just prior to Lunar New Year lands. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7f641553-97ec-4014-8e54-fef6408538d9"></dynamic-object></div>The timing of the pre-Lunar New Year cargo surge is affected this year by the later-than-usual holiday in Asia, which falls on Feb. 17. As a result, imports will likely increase in February and continue through the end of the month. The only question is the magnitude of the cargo spike. Even though many forwarders do not see a “surge” this year like the trans-Pacific experienced in January-February 2025, they say a modest increase in import volumes compared to last month is likely leading up to the factory closures in Asia. “There is no catalyst (for a surge),” one forwarder told the Journal of Commerce. “Importers are filling current orders, but they’re not pulling forward inventory.” According to the December Logistics Manager’s Report, the index reading was 54.2, down from November’s 55.7. “This is the lowest rate of expansion since April of 2024,” the report said. “I don’t see much inventory-building since the beginning of the year,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. Ken O’Brien, president and CEO of Gemini Shippers Group, said the members of the group saw single-digit year-over-year declines in volumes in the fourth quarter due to the comparatively strong import volumes in 2024, though Gemini forecasts a 2% to 5% increase in trade growth in 2026. Industry adviser David Bennett said he is upbeat about the trans-Pacific market in the new year because he believes the largest US trade lane is normalizing back to the seasonal peaks and valleys the trade was accustomed to before the pandemic five years ago. “We have forgotten what that is like,” he said. “I see a nice pickup in volumes developing.” <h3>Spot rates higher </h3>Despite the year-over-year decline in imports this fall, trans-Pacific carriers were nevertheless successful in implementing a series of bi-monthly general rate increases (GRIs). Industry analysts and forwarders say carriers over the last several months have been able to keep a floor under spot rates through a combination of blank sailings and discipline because they agree a rate war would help neither carriers nor their customers. Resisting the urge to slash freight-all-kinds (FAK) rates while consistently pepping up general rates increases has allowed carriers to push up spot rates and then watch them glide down. In the last four weeks, carriers’ strategy has produced a double-digit surge on a scale not seen since last summer’s rush. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU as of Thursday, up almost 42% from $1,270 per FEU on Dec. 12. The East Coast rate of $3,175 per FEU is up 33% over the past four weeks. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. However, a proposed Jan.1 GRI is not holding, a carrier executive told the Journal of Commerce this week. “Bookings are not really strong. There is no space shortage,” the carrier executive said. Nevertheless, spot rates are considered by carriers and their customers to be at levels that should not push down pricing in the 2026-27 service contract negotiations that will ramp up in intensity this month and next. That’s because spot rates are well above the current 2025-26 contract rates that were negotiated by mid-size shippers last spring. Those contracts were priced about $1,700 to $1,850 per FEU to the West Coast and about $1,000 per FEU higher to the East Coast. Still, given the muted demand compared to last year in the trans-Pacific, the environment appears to favor the customers. “Aggregate supply is up. Supply is going up more than demand,” O’Brien said. “That is the reality.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>Contact Mark Szakonyi at <a href="https://www.joc.com/article/mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com.</a></div>

The seasonal rush of US imports before Chinese factories idle in mid-February for Lunar New Year will be the trans-Pacific trade’s first major test of 2026, with forwarders and carriers divided on the strength of demand in a largely depressed market.  The materialization of any seasonal rush and how carriers respond with capacity will give the industry a better sense of first-half demand, reflecting restocking for post-holiday sales and demand for spring wares. The surge in shipping before Chinese production significantly slows ahead of the Lunar New Year has historically pushed up spot rates, giving carriers better standing in trans-Pacific service contracts. The National Retail Federation (NRF), in its monthly Global Port Tracker released on Friday, forecasted the first month-over-month gain in import volumes (January from December) in six months, but noted that year-over-year import volumes would remain negative compared to quite strong import volumes early in 2025 as retailers frontloaded merchandise due to the expectation of higher tariffs. “There should be a brief bump in imports this month ahead of Lunar New Year factory shutdowns in Asia, but we’re otherwise headed into the post-holiday shopping lull that comes each year,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in a statement accompanying the group’s import forecast. Monthly imports are down by double-digits year-over-year, but, encouragingly, bookings for Asia exports to North America have held up in the last two months, according to data from maritime visibility provider Vizion and data and analytics company Dun & Bradstreet. Weekly Asia export bookings to the West Coast of North America began rising in December from November, averaging more than 150,000 TEUs a week on a four-week average compared to 77,000-80,000 TEUs per week in the prior month, according to the data. According to the ports of Los Angeles and Long Beach, which forecast the vessel arrivals and TEUs they will handle several weeks in advance, import volumes are peaking at the port complex at about 220,000 TEUs during the week of Jan. 4 and about 210,000 TEUs for the week of Jan. 11. Imports of 200,000 TEUs-plus represent a solid week in the largest US gateway. Imports are forecasted to drop over the subsequent three weeks to about 175,000 TEUs, which is considered a normal seasonal lull, before returning to higher levels beginning in mid-February as freight that was loaded just prior to Lunar New Year lands. The timing of the pre-Lunar New Year cargo surge is affected this year by the later-than-usual holiday in Asia, which falls on Feb. 17. As a result, imports will likely increase in February and continue through the end of the month. The only question is the magnitude of the cargo spike. Even though many forwarders do not see a “surge” this year like the trans-Pacific experienced in January-February 2025, they say a modest increase in import volumes compared to last month is likely leading up to the factory closures in Asia. “There is no catalyst (for a surge),” one forwarder told the Journal of Commerce. “Importers are filling current orders, but they’re not pulling forward inventory.” According to the December Logistics Manager’s Report, the index reading was 54.2, down from November’s 55.7. “This is the lowest rate of expansion since April of 2024,” the report said. “I don’t see much inventory-building since the beginning of the year,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. Ken O’Brien, president and CEO of Gemini Shippers Group, said the members of the group saw single-digit year-over-year declines in volumes in the fourth quarter due to the comparatively strong import volumes in 2024, though Gemini forecasts a 2% to 5% increase in trade growth in 2026. Industry adviser David Bennett said he is upbeat about the trans-Pacific market in the new year because he believes the largest US trade lane is normalizing back to the seasonal peaks and valleys the trade was accustomed to before the pandemic five years ago. “We have forgotten what that is like,” he said. “I see a nice pickup in volumes developing.” Spot rates higher Despite the year-over-year decline in imports this fall, trans-Pacific carriers were nevertheless successful in implementing a series of bi-monthly general rate increases (GRIs). Industry analysts and forwarders say carriers over the last several months have been able to keep a floor under spot rates through a combination of blank sailings and discipline because they agree a rate war would help neither carriers nor their customers. Resisting the urge to slash freight-all-kinds (FAK) rates while consistently pepping up general rates increases has allowed carriers to push up spot rates and then watch them glide down. In the last four weeks, carriers’ strategy has produced a double-digit surge on a scale not seen since last summer’s rush. Platts, a sister company of the Journal of Commerce within S&P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU as of Thursday, up almost 42% from $1,270 per FEU on Dec. 12. The East Coast rate of $3,175 per FEU is up 33% over the past four weeks. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. However, a proposed Jan.1 GRI is not holding, a carrier executive told the Journal of Commerce this week. “Bookings are not really strong. There is no space shortage,” the carrier executive said. Nevertheless, spot rates are considered by carriers and their customers to be at levels that should not push down pricing in the 2026-27 service contract negotiations that will ramp up in intensity this month and next. That’s because spot rates are well above the current 2025-26 contract rates that were negotiated by mid-size shippers last spring. Those contracts were priced about $1,700 to $1,850 per FEU to the West Coast and about $1,000 per FEU higher to the East Coast. Still, given the muted demand compared to last year in the trans-Pacific, the environment appears to favor the customers. “Aggregate supply is up. Supply is going up more than demand,” O’Brien said. “That is the reality.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com Contact Mark Szakonyi at  mark.szakonyi@spglobal.com.

Container lines

Forwarding

Trans-Pacific

Container Shipping News

Pre-Lunar New Year demand to give trans-Pac market first test of 2026

<div class="phx-topic abstract-wrapper">The declines from the country’s top three carriers are in line with what other carriers have reported thus far in an unsettled container shipping market.</div>

The declines from the country’s top three carriers are in line with what other carriers have reported thus far in an unsettled container shipping market.

<div class="phx-topic">Taiwan’s big three carriers saw revenue slide last year as weaker freight rates and cargo volumes took their toll on operating revenues. Evergreen Marine, the largest of the three, saw 2025 revenue fall 18% to $12 billion from almost $15 billion in 2024, it said in a stock exchange filing Thursday. Yang Ming, Taiwan’s second-largest carrier, reported the biggest drop, saying Friday that 2025 revenue fell 27% to $5.3 billion against $7 billion in the year prior. Intra-Asia focused Wan Hai Lines posted a 13% decline in 2025 revenue to $4.5 billion, it said in a filing Friday. The carriers gave no further details, as profit figures will be released as part of their formal annual results announcements in the next few months. But the revenue declines are thus far in line with the 2025 results of other carriers, <a href="https://www.joc.com/article/fourth-quarter-downturn-weighs-on-oocls-full-year-operating-result-6149730">with OOCL saying Friday</a> its revenue of $8.7 billion last year was down 10.6%. Trans-Pacific services were the biggest revenue generators for all three Taiwanese carriers last year. But indicative of the rate declines that hit their revenues, Shanghai Shipping Exchange data carried on the Journal of Commerce’s Gateway platform shows spot rates from Shanghai to the US West Coast tumbled 56% over the course of the year to end at $2,188 per FEU as of Jan. 2. Yang Ming in its filing indicated a pre-Lunar New Year cargo rush was driving volumes higher and supporting a rebound in revenues as 2026 began, momentum it expects to continue ahead of the holiday in mid-February. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Taiwan’s big three carriers saw revenue slide last year as weaker freight rates and cargo volumes took their toll on operating revenues. Evergreen Marine, the largest of the three, saw 2025 revenue fall 18% to $12 billion from almost $15 billion in 2024, it said in a stock exchange filing Thursday. Yang Ming, Taiwan’s second-largest carrier, reported the biggest drop, saying Friday that 2025 revenue fell 27% to $5.3 billion against $7 billion in the year prior. Intra-Asia focused Wan Hai Lines posted a 13% decline in 2025 revenue to $4.5 billion, it said in a filing Friday. The carriers gave no further details, as profit figures will be released as part of their formal annual results announcements in the next few months. But the revenue declines are thus far in line with the 2025 results of other carriers, with OOCL saying Friday its revenue of $8.7 billion last year was down 10.6%. Trans-Pacific services were the biggest revenue generators for all three Taiwanese carriers last year. But indicative of the rate declines that hit their revenues, Shanghai Shipping Exchange data carried on the Journal of Commerce’s Gateway platform shows spot rates from Shanghai to the US West Coast tumbled 56% over the course of the year to end at $2,188 per FEU as of Jan. 2. Yang Ming in its filing indicated a pre-Lunar New Year cargo rush was driving volumes higher and supporting a rebound in revenues as 2026 began, momentum it expects to continue ahead of the holiday in mid-February. Contact Keith Wallis at keithwallis@hotmail.com .

Taiwan’s major ocean carriers say weaker rates dragged down 2025 revenues

<div class="phx-topic abstract-wrapper">Seasonal fog along Texas waterways has caused ocean carriers to switch up typical Gulf Coast port rotations, sometimes with little warning of vessel arrivals.</div>

Seasonal fog along Texas waterways has caused ocean carriers to switch up typical Gulf Coast port rotations, sometimes with little warning of vessel arrivals.

<div class="phx-topic">Seasonal fog along the US Gulf Coast is delaying container ship arrivals to the Port of Houston and prompting diversions to Mobile. But shippers out of Mobile say they are only getting last-minute warnings of the diversions, giving them little time to ready their freight and causing further delays as export containers miss their cutoff day. Houston, the busiest port in the US when all types of ship traffic are considered, including tankers and bulkers, typically experiences fog during the winter months. While it’s unclear if this season’s fog episodes are more frequent or of longer duration, more container ships are having to wait longer to berth due to the fog. During the month of December, Houston had 21 container ships sit at anchor with an average delay of four days, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. During the holiday period, some ships were seeing five-day dwells at anchorage. The delays are spilling into 2026, with CMA CGM warning in an advisory this week of “building vessel congestion and dwell due to dense fog and seasonal holiday terminal closures.” <h3>Opting for Mobile </h3>Instead of waiting out the fog, ocean carriers are reversing typical port rotations for Gulf Coast services by calling Mobile first, then Houston. Since December, at least nine container ships that previously had a Houston-to-Mobile rotation instead made Mobile the first call, Sea-web data shows. Another four container ships that were not on regular deployment to the Gulf Coast also made Mobile-to-Houston rotations. Maersk rotated four ships to Mobile ahead of Houston during the period, while three Mediterranean Shipping Co. vessels and two CMA CGM ships made similar rotations. Evergreen Marine, Ocean Network Express, HMM and Yang Ming also followed a Mobile-to-Houston rotation. In many instances, though, shippers tell the Journal of Commerce they have only been given one-day notice of the schedule changes and vessel arrivals. That’s been especially difficult for exporters, who typically have a window of about a week to prepare an export container and bring it to the port. The director of global logistics for a Houston-based chemicals manufacturer that ships about 20,000 containers annually, primarily out of Mobile, said ships that he’s booked export freight on have arrived about a week ahead of schedule, well ahead of when his company has been able to stuff a container and find a trucker to move the box. “We’ve missed the cutoff date on several voyages,” the source said, estimating that the early arrivals into Mobile have impacted about 800 of his company’s export containers since December. “We’re scrambling the day of the cutoff,” he said. “You can’t tell me that day to have the container ready.” As a result of the missed cutoff, his cargo is being rolled to later voyages. But because space is already booked on those voyages and other shippers have rolled cargo, the source said vessel capacity to certain regions, such as Southeast Asia, has tightened. “I’m not the only guy who has production that needs to get out,” he said. <h3>Carrier communication ‘not proactive’</h3>A Jacksonville-based ocean freight forwarder said one of his clients, a wood products company in Mississippi, ships between 20 and 30 containers per week out of Mobile. While some of that freight is already positioned at Mobile for export, the one-day cutoffs for ships mean his client is having to find space at their facility to store already-loaded export containers that missed a vessel.“It’s like a big game of Jenga,” the forwarder said. “It takes time to stuff and stage these containers. Now you’ve got to move these back to your warehouse and repeat the process.” Other complications ensue because of the missed vessels, the source said. Export wood products may require a US Department of Agriculture certification that the product is pest-free. But the certification is only valid for a limited time, requiring a second certification if the product has not yet been exported. As for the communication from ocean carriers about the schedule changes: “They are not proactive,” the forwarder said. Maersk and CMA CGM did not respond to a request for comment about how they communicate schedule changes to shippers.In a statement to the Journal of Commerce, Port Houston Authority said it is supporting a bill introduced last year by Texas Sen. Ted Cruz and Rep. Brian Babin (R–Texas) that would direct the National Oceanic and Atmospheric Administration to expand observation and improve the forecasting of fog events that impact maritime navigation. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Seasonal fog along the US Gulf Coast is delaying container ship arrivals to the Port of Houston and prompting diversions to Mobile. But shippers out of Mobile say they are only getting last-minute warnings of the diversions, giving them little time to ready their freight and causing further delays as export containers miss their cutoff day. Houston, the busiest port in the US when all types of ship traffic are considered, including tankers and bulkers, typically experiences fog during the winter months. While it’s unclear if this season’s fog episodes are more frequent or of longer duration, more container ships are having to wait longer to berth due to the fog. During the month of December, Houston had 21 container ships sit at anchor with an average delay of four days, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. During the holiday period, some ships were seeing five-day dwells at anchorage. The delays are spilling into 2026, with CMA CGM warning in an advisory this week of “building vessel congestion and dwell due to dense fog and seasonal holiday terminal closures.” Opting for Mobile Instead of waiting out the fog, ocean carriers are reversing typical port rotations for Gulf Coast services by calling Mobile first, then Houston. Since December, at least nine container ships that previously had a Houston-to-Mobile rotation instead made Mobile the first call, Sea-web data shows. Another four container ships that were not on regular deployment to the Gulf Coast also made Mobile-to-Houston rotations. Maersk rotated four ships to Mobile ahead of Houston during the period, while three Mediterranean Shipping Co. vessels and two CMA CGM ships made similar rotations. Evergreen Marine, Ocean Network Express, HMM and Yang Ming also followed a Mobile-to-Houston rotation. In many instances, though, shippers tell the Journal of Commerce they have only been given one-day notice of the schedule changes and vessel arrivals. That’s been especially difficult for exporters, who typically have a window of about a week to prepare an export container and bring it to the port. The director of global logistics for a Houston-based chemicals manufacturer that ships about 20,000 containers annually, primarily out of Mobile, said ships that he’s booked export freight on have arrived about a week ahead of schedule, well ahead of when his company has been able to stuff a container and find a trucker to move the box. “We’ve missed the cutoff date on several voyages,” the source said, estimating that the early arrivals into Mobile have impacted about 800 of his company’s export containers since December. “We’re scrambling the day of the cutoff,” he said. “You can’t tell me that day to have the container ready.” As a result of the missed cutoff, his cargo is being rolled to later voyages. But because space is already booked on those voyages and other shippers have rolled cargo, the source said vessel capacity to certain regions, such as Southeast Asia, has tightened. “I’m not the only guy who has production that needs to get out,” he said. Carrier communication ‘not proactive’ A Jacksonville-based ocean freight forwarder said one of his clients, a wood products company in Mississippi, ships between 20 and 30 containers per week out of Mobile. While some of that freight is already positioned at Mobile for export, the one-day cutoffs for ships mean his client is having to find space at their facility to store already-loaded export containers that missed a vessel. “It’s like a big game of Jenga,” the forwarder said. “It takes time to stuff and stage these containers. Now you’ve got to move these back to your warehouse and repeat the process.” Other complications ensue because of the missed vessels, the source said. Export wood products may require a US Department of Agriculture certification that the product is pest-free. But the certification is only valid for a limited time, requiring a second certification if the product has not yet been exported. As for the communication from ocean carriers about the schedule changes: “They are not proactive,” the forwarder said. Maersk and CMA CGM did not respond to a request for comment about how they communicate schedule changes to shippers. In a statement to the Journal of Commerce, Port Houston Authority said it is supporting a bill introduced last year by Texas Sen. Ted Cruz and Rep. Brian Babin (R–Texas) that would direct the National Oceanic and Atmospheric Administration to expand observation and improve the forecasting of fog events that impact maritime navigation. Contact Michael Angell at michael.angell@spglobal.com .

Houston fog sets up ship diversions to Mobile, forcing exporters to scramble

<div class="phx-topic abstract-wrapper">This year’s positive MPV forecast is bolstered by a high level of forward bookings and the prospect of postponed projects coming onstream. </div>

This year’s positive MPV forecast is bolstered by a high level of forward bookings and the prospect of postponed projects coming onstream.

<div class="phx-topic">An optimistic outlook for the multipurpose sector in 2026 is underpinned by a well-utilized fleet, revivals of postponed high-capacity projects, and a reportedly healthy level of forward bookings. Yorck Niclas Prehm, head of research at specialist shipbroker Toepfer Transport, said multipurpose vessel (MPV) operators with highly specialized vessels can look forward to an “even more comfortable” 2026. With super-heavy-lift vessels and vessels with offshore installation capabilities almost fully booked for 2026, operators are now focused on bookings for 2027 and 2028. In comments for the Journal of Commerce’s 2026 Annual Review and Outlook, Prehm said the multipurpose and breakbulk shipping market in 2025 was “characterized by minimal volatility and a stable and steady behavior of freight and charter rates.” Prehm added that while this could be viewed as “a rather boring development,” considering the economic and geopolitical challenges the shipping industry and global supply chains faced in 2025, the stability underscores how “extraordinarily strong and resilient this niche market is.” The foundation for this stability was the constraint on ordering exercised by owners and operators in the sector last year, Prehm said. In its end-of-year quarterly report, Toepfer Transport noted the order book for MPVs is “relatively moderate,” with total fleet growth in 2025 of 2.4% by deadweight tons, or 19 ships net. For freight rate assessments, the Toepfer Multipurpose Index for January, published Thursday, is $12,648 per day, down from $12,818 in December. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="eb684173-3331-459c-8c00-85ae47522402"></dynamic-object></div><h3>Positive outlook for year ahead </h3>Toepfer’s upbeat assessment for 2026 was echoed by Ulrich Ulrichs, CEO of MPV operator BBC Chartering. In comments for the Journal of Commerce’s Annual Review and Outlook, Ulrichs described his outlook for the breakbulk and project cargo sector in 2026 as positive. “Supply and demand in our sector appear to be reasonably balanced, and the number of newbuildings for the multipurpose vessel sector remains sparse,” Ulrichs said. New orders are for more efficient tonnage, phasing out older tonnage with no overcapacity being generated. In terms of cargo demand, Ulrichs said BBC is focused on the “dominant drivers” of energy-related cargoes from both the wind turbine sector and the oil and gas and mining sectors. However, he raised concerns about the offshore wind sector, “the success — or otherwise — of which is entirely due to political decision-making.” Regulations and geopolitics will continue to buffet the MPV sector in 2026, characterized by an “increasingly unpredictable” US market and “complex and region-specific regulations,” including the European Union Emissions Trading System and FuelEU Maritime, Ulrichs said. “While these initiatives aim to reduce environmental impact, their implementation has introduced significant operational and financial challenges — especially for carriers operating across multiple jurisdictions,” he said. Ulrichs called for a single, global, and transparent set of rules to reduce administrative overhead for MPV operations, level the playing field, and encourage broader compliance. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

An optimistic outlook for the multipurpose sector in 2026 is underpinned by a well-utilized fleet, revivals of postponed high-capacity projects, and a reportedly healthy level of forward bookings. Yorck Niclas Prehm, head of research at specialist shipbroker Toepfer Transport, said multipurpose vessel (MPV) operators with highly specialized vessels can look forward to an “even more comfortable” 2026. With super-heavy-lift vessels and vessels with offshore installation capabilities almost fully booked for 2026, operators are now focused on bookings for 2027 and 2028. In comments for the Journal of Commerce’s 2026 Annual Review and Outlook, Prehm said the multipurpose and breakbulk shipping market in 2025 was “characterized by minimal volatility and a stable and steady behavior of freight and charter rates.” Prehm added that while this could be viewed as “a rather boring development,” considering the economic and geopolitical challenges the shipping industry and global supply chains faced in 2025, the stability underscores how “extraordinarily strong and resilient this niche market is.” The foundation for this stability was the constraint on ordering exercised by owners and operators in the sector last year, Prehm said. In its end-of-year quarterly report, Toepfer Transport noted the order book for MPVs is “relatively moderate,” with total fleet growth in 2025 of 2.4% by deadweight tons, or 19 ships net. For freight rate assessments, the Toepfer Multipurpose Index for January, published Thursday, is $12,648 per day, down from $12,818 in December. Positive outlook for year ahead Toepfer’s upbeat assessment for 2026 was echoed by Ulrich Ulrichs, CEO of MPV operator BBC Chartering. In comments for the Journal of Commerce’s Annual Review and Outlook, Ulrichs described his outlook for the breakbulk and project cargo sector in 2026 as positive. “Supply and demand in our sector appear to be reasonably balanced, and the number of newbuildings for the multipurpose vessel sector remains sparse,” Ulrichs said. New orders are for more efficient tonnage, phasing out older tonnage with no overcapacity being generated. In terms of cargo demand, Ulrichs said BBC is focused on the “dominant drivers” of energy-related cargoes from both the wind turbine sector and the oil and gas and mining sectors. However, he raised concerns about the offshore wind sector, “the success — or otherwise — of which is entirely due to political decision-making.” Regulations and geopolitics will continue to buffet the MPV sector in 2026, characterized by an “increasingly unpredictable” US market and “complex and region-specific regulations,” including the European Union Emissions Trading System and FuelEU Maritime, Ulrichs said. “While these initiatives aim to reduce environmental impact, their implementation has introduced significant operational and financial challenges — especially for carriers operating across multiple jurisdictions,” he said. Ulrichs called for a single, global, and transparent set of rules to reduce administrative overhead for MPV operations, level the playing field, and encourage broader compliance. Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk News

Optimistic outlook sets multipurpose sector on firm footing for 2026

<div class="phx-topic abstract-wrapper">The performance of the Cosco Shipping subsidiary provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market. </div>

The performance of the Cosco Shipping subsidiary provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market.

<div class="phx-topic">Weakening demand and falling rates on OOCL’s major trade lanes through the fourth quarter weighed heavily on the carrier’s full-year operating result announced Friday. The performance of the Hong Kong-based subsidiary of Cosco Shipping provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market. Solid earnings in the first three quarters of 2025 have ensured most carriers will report a profitable year — Drewry Shipping Consultants has forecast a combined $20 billion in profits — but the difficult fourth-quarter operating environment was reflected in OOCL’s revenue and volume. No profit and loss figures were disclosed by OOCL in its operating result. OOCL reported fourth-quarter revenue of $2.08 billion, a 17.2% year-over-year decline across its major trade lanes, while fourth-quarter volume rose just 0.8% to 2 million TEUs. Available capacity increased 4.5% and average revenue per TEU plunged 17.8% compared with the 2024 fourth quarter. From a trade lane perspective, trans-Pacific revenue in the fourth quarter was down 25% year over year at $726 million, with volume down 4.2% at 528,394 TEUs. Asia-Europe revenue fell 24.5% to $418 million while volume edged up 1.3% to 367,728 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ea023e46-41d8-4790-b614-6af084fc81ec"></dynamic-object></div>OOCL’s largest trade lane, which combines Australasia with intra-Asia, saw revenue fall 6.8% to $772 million in the fourth quarter while volume rose 2.4% to 974,653 TEUs. The trans-Atlantic, the smallest of the carrier’s major trades, reported flat revenue of $163 million in the fourth quarter and an 8.8% increase in volume to 130,231 TEUs. For the full year, OOCL revenue of $8.7 billion declined 10.6% year over year against volume that increased 3.7% to 7.8 million TEUs. Available capacity for the year was up 6.1% and average revenue per TEU dropped 13.7% year over year. Full-year revenue on the trans-Pacific of $3.2 billion was down 17.2% year over year, with volume up 1.7% at 2.1 million TEUs. Asia-Europe revenue came in at $1.8 billion, down 21.3%, and volume was flat at 1.4 million TEUs. Intra-Asia/Australasia revenue of $3 billion was up 1.2% and volume grew 4.8% to 3.8 million TEUs, while trans-Atlantic revenue increased 14.9% to $708 million and volume also rose 14.9% to 550,765 TEUs. <h3>Supply-demand imbalance hangs over market </h3>As carriers enter the new year, they will be buoyed by sharply increasing rates on the east-west trades out of Asia as shippers get their cargo on the water ahead of a relatively late start to the Lunar New Year on Feb. 17. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU of Thursday, up from $1,270 per FEU on Dec. 12. Asia-North Europe rates of $2,700 per FEU this week are up from $2,440 per FEU four weeks ago. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. Shanghai-to-Rotterdam rates at $2,840 per FEU were up from $2,361 per FEU over the same period, according to Drewry. But with significant newbuilding capacity being added to the market, analysts expect excess tonnage to exert downward pressure on rates. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="300082c3-330d-45f1-b9d8-9a63e1bb82b4"></dynamic-object></div>“A traditional pre-Lunar New Year cargo rush at the start of 2026 is a key driver behind dramatic increases in spot rates out of the Far East that are up almost 60% into the US West Coast compared to a month ago,” Peter Sand, chief analyst at rate benchmarking platform Xeneta, wrote in a market update this week. “With Lunar New Year just over a month away, shippers will ramp up efforts to get goods out of the Far East before the holiday shutdown, so there will be further upward pressure on rates,” Sand added. “The question is whether the expected increase in deployed capacity will be enough to outweigh higher demand.” That question extends far beyond the first quarter of 2026. The full-year earnings prognosis is not positive for carriers, with analysts predicting that a growing imbalance between supply and demand will <a href="https://www.joc.com/article/supply-demand-imbalance-puts-ocean-carriers-on-course-for-heavy-losses-6143218">bring container shipping’s five-year run of profitability to an end</a>. With vessel capacity outstripping volumes on the major trade lanes, analysts expect carriers to fall into the red as early as the first quarter, culminating in a multi-billion-dollar combined loss for the full year. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.</div>

Weakening demand and falling rates on OOCL’s major trade lanes through the fourth quarter weighed heavily on the carrier’s full-year operating result announced Friday. The performance of the Hong Kong-based subsidiary of Cosco Shipping provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market. Solid earnings in the first three quarters of 2025 have ensured most carriers will report a profitable year — Drewry Shipping Consultants has forecast a combined $20 billion in profits — but the difficult fourth-quarter operating environment was reflected in OOCL’s revenue and volume. No profit and loss figures were disclosed by OOCL in its operating result. OOCL reported fourth-quarter revenue of $2.08 billion, a 17.2% year-over-year decline across its major trade lanes, while fourth-quarter volume rose just 0.8% to 2 million TEUs. Available capacity increased 4.5% and average revenue per TEU plunged 17.8% compared with the 2024 fourth quarter. From a trade lane perspective, trans-Pacific revenue in the fourth quarter was down 25% year over year at $726 million, with volume down 4.2% at 528,394 TEUs. Asia-Europe revenue fell 24.5% to $418 million while volume edged up 1.3% to 367,728 TEUs. OOCL’s largest trade lane, which combines Australasia with intra-Asia, saw revenue fall 6.8% to $772 million in the fourth quarter while volume rose 2.4% to 974,653 TEUs. The trans-Atlantic, the smallest of the carrier’s major trades, reported flat revenue of $163 million in the fourth quarter and an 8.8% increase in volume to 130,231 TEUs. For the full year, OOCL revenue of $8.7 billion declined 10.6% year over year against volume that increased 3.7% to 7.8 million TEUs. Available capacity for the year was up 6.1% and average revenue per TEU dropped 13.7% year over year. Full-year revenue on the trans-Pacific of $3.2 billion was down 17.2% year over year, with volume up 1.7% at 2.1 million TEUs. Asia-Europe revenue came in at $1.8 billion, down 21.3%, and volume was flat at 1.4 million TEUs. Intra-Asia/Australasia revenue of $3 billion was up 1.2% and volume grew 4.8% to 3.8 million TEUs, while trans-Atlantic revenue increased 14.9% to $708 million and volume also rose 14.9% to 550,765 TEUs. Supply-demand imbalance hangs over market As carriers enter the new year, they will be buoyed by sharply increasing rates on the east-west trades out of Asia as shippers get their cargo on the water ahead of a relatively late start to the Lunar New Year on Feb. 17. Platts, a sister company of the Journal of Commerce within S&P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU of Thursday, up from $1,270 per FEU on Dec. 12. Asia-North Europe rates of $2,700 per FEU this week are up from $2,440 per FEU four weeks ago. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. Shanghai-to-Rotterdam rates at $2,840 per FEU were up from $2,361 per FEU over the same period, according to Drewry. But with significant newbuilding capacity being added to the market, analysts expect excess tonnage to exert downward pressure on rates. “A traditional pre-Lunar New Year cargo rush at the start of 2026 is a key driver behind dramatic increases in spot rates out of the Far East that are up almost 60% into the US West Coast compared to a month ago,” Peter Sand, chief analyst at rate benchmarking platform Xeneta, wrote in a market update this week. “With Lunar New Year just over a month away, shippers will ramp up efforts to get goods out of the Far East before the holiday shutdown, so there will be further upward pressure on rates,” Sand added. “The question is whether the expected increase in deployed capacity will be enough to outweigh higher demand.” That question extends far beyond the first quarter of 2026. The full-year earnings prognosis is not positive for carriers, with analysts predicting that a growing imbalance between supply and demand will bring container shipping’s five-year run of profitability to an end . With vessel capacity outstripping volumes on the major trade lanes, analysts expect carriers to fall into the red as early as the first quarter, culminating in a multi-billion-dollar combined loss for the full year. Contact Greg Knowler at greg.knowler@spglobal.com .

Asia-Europe

Fourth-quarter downturn weighs on OOCL’s full-year operating result

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