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<div class="phx-topic abstract-wrapper">After nearly three years of takeover fights, complex maneuverings and realignments, XTRA Corp. is no</div>

After nearly three years of takeover fights, complex maneuverings and realignments, XTRA Corp. is no

<div>After nearly three years of takeover fights, complex maneuverings and realignments, XTRA Corp. is now the subject of a proxy battle aimed at toppling the intermodal leasing giant's management and making an end-run around its "poison pill" defenses.Last week, Robert M. Gintel, a Greenwich, Conn.-based investment adviser who holds 4.7 percent of XTRA common stock, filed forms with the Securities Exchange Commission stating his intention to begin a proxy contest for the company.At the same time, Mr. Gintel has gone into a Delaware court seeking an injunction to prevent application of XTRA's elaborate shareholder rights ''flip-in" protections to any future...

After nearly three years of takeover fights, complex maneuverings and realignments, XTRA Corp. is now the subject of a proxy battle aimed at toppling the intermodal leasing giant's management and making an end-run around its "poison pill" defenses. Last week, Robert M. Gintel, a Greenwich, Conn.-based investment adviser who holds 4.7 percent of XTRA common stock, filed forms with the Securities Exchange Commission stating his intention to begin a proxy contest for the company.At the same time, Mr. Gintel has gone into a Delaware court seeking an injunction to prevent application of XTRA's elaborate shareholder rights ''flip-in" protections to any future proxy battle activities, according to his attorney, Robert Amen of Greenwich. "In Mr. Gintel's opinion, the issuer has pursued business strategies that are not in the best interests of stockholders," the filing states. Mr. Gintel's contest will try to elect a majority of XTRA's board of directors at its annual meeting, which normally takes place at the end of January, Mr. Amen said. Michael J. Soja, XTRA vice president of finance and administration, said no date for the meeting has yet been set. The move on XTRA is the latest in a series at the company that has survived a string of bids for its intermodal empire. In 1986, Itel Corp. of Chicago launched its campaign to gain control of XTRA's marine container business, then among the largest in the world. XTRA subsequently adopted a series of defenses that would allow shareholders to buy company stock at a discount in the event of a takeover attempt. Itel countered by buying the container business of Flexi-Van Leasing Corp., then a subsidiary of Castle & Cooke Inc. of Los Angeles, transferring its interest to Flexi-Van as part of the deal. Flexi-Van then raised its stake in XTRA as pressure for an agreement and consolidation in the industry mounted. That agreement was reached in January of last year when XTRA announced a two-way deal to sell its marine containers to Itel and its marine chassis fleet to Flexi-Van with assurances that they would cease takeover efforts. The deal left XTRA as a more narrowly focused leasing company with its holdings primarily confined to piggyback trailers and domestic containers. The company appeared to confirm that direction in September when it announced the intended sale of its railroad rolling stock fleet to Chrysler Rail Transportation Corp. and the sale of its warehousing operations. Since XTRA's specialization and paring down of interests began, the big holdings in company stock have shifted from other transport equipment lessors to money managers. But the action by Mr. Gintel leaves little doubt that XTRA remains a prize. According to SEC filings, the biggest XTRA holders in recent months have been Value Equity Associates, a New York-based investment partnership; Templeton Galbraith & Hansberger Ltd.; Heine Securities of Short Hills, N.J.; and Pioneering Management of Boston. As for the prospects of the current proxy contest, Mr. Amen said they would be "very, very difficult" if the poison-pill measures are allowed to come into play as the result of communications with other large stockholders. Mr. Soja would not comment on whether the measures were designed as deterrents against the proxy route as well as hostile takeover bids.

PROXY FIGHT FOR XTRA LATEST BID FOR LESSOR GINTEL FILES WITH SEC

<div class="phx-topic abstract-wrapper">With operations at Salalah suspended on Saturday due to a drone strike, Hapag-Lloyd has positioned its upcoming westbound sailing on the India-USEC “TPI” service to call at Port Qasim in Pakistan. </div>

With operations at Salalah suspended on Saturday due to a drone strike, Hapag-Lloyd has positioned its upcoming westbound sailing on the India-USEC “TPI” service to call at Port Qasim in Pakistan.

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<div class="phx-topic">Stop-and-start operations at Salalah Port in Oman are adding to the schedule challenges that had already forced major carriers on the Indian westbound trades to rework their network rotations in response to the Middle East crisis. Salalah remains a critical hub for Maersk and Hapag-Lloyd, both for the Gemini Cooperation India-Europe/Mediterranean loop and their standalone India-US East Coast services. With operations at Salalah suspended on Saturday due to a drone strike though <a href="https://www.joc.com/article/drone-strike-closes-key-middle-east-transit-hub-of-salalah-6195094">gradually resuming from Tuesday</a>, Hapag-Lloyd has now positioned its upcoming westbound sailing on the India-USEC “TPI” service to call at Port Qasim (Karachi) in Pakistan. The Niledutch Lion has an estimated time of arrival of April 9 in Karachi after a scheduled departure from India’s Mundra port on April 7, updated data shows. Hapag-Lloyd last year halted calls to Karachi following the country-to-country trade restrictions between India and Pakistan, and instead has been connecting Pakistan cargo via Salalah by using common feeder capacity. Maersk did not immediately disclose its contingency plans for Indian regional transshipment affected by the Salalah shutdown. All the vessels deployed on the Gemini India-Europe loop, known as the ME1 for Maersk and the IOS for Hapag-Lloyd, are from the Danish liner. <h3>Multi-modal solutions </h3>Meanwhile, ocean carriers are rapidly shifting from port-to-port shipping to <a href="https://www.joc.com/article/as-war-rages-multimodal-demand-surges-on-asia-europe-landbridge-6185162">integrated regional multimodal solutions</a> to handle imports into the Middle East, an alternative supply chain model that industry observers believe could outlast the war as cargo interests seek reliability and resilience in the supply chain. Supporting that transformation, there have been a series of collaborative attempts by Persian Gulf states, including the United Arab Emirates (UAE), Oman and Saudi Arabia, to establish “land bridges” by trucking and/or “green corridors” through sea-land networks for cargo flows within the region. One example is a strategic partnership between the UAE’s Gulftainer and the Saudi Ports Authority (Mawani) to open alternative logistics links between Sharjah in the UAE and Dammam in Saudi Arabia. Additionally, Saudi Arabia is offering an extended 60-day free time for the storage of Gulf import/export containers in addition to implementing multiple regulatory relaxations, including raising the permitted operational age of trucks in the country from 20 years to 22 years. Major liners have also stepped up the evacuation of Middle East-bound containers rerouted to Indian ports. Hapag-Lloyd this week has a shuttle sailing from Nhava Sheva in West India to Fujairah in the UAE, with onward connections available for Jebel Ali by trucking. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Stop-and-start operations at Salalah Port in Oman are adding to the schedule challenges that had already forced major carriers on the Indian westbound trades to rework their network rotations in response to the Middle East crisis. Salalah remains a critical hub for Maersk and Hapag-Lloyd, both for the Gemini Cooperation India-Europe/Mediterranean loop and their standalone India-US East Coast services. With operations at Salalah suspended on Saturday due to a drone strike though gradually resuming from Tuesday , Hapag-Lloyd has now positioned its upcoming westbound sailing on the India-USEC “TPI” service to call at Port Qasim (Karachi) in Pakistan. The Niledutch Lion has an estimated time of arrival of April 9 in Karachi after a scheduled departure from India’s Mundra port on April 7, updated data shows. Hapag-Lloyd last year halted calls to Karachi following the country-to-country trade restrictions between India and Pakistan, and instead has been connecting Pakistan cargo via Salalah by using common feeder capacity. Maersk did not immediately disclose its contingency plans for Indian regional transshipment affected by the Salalah shutdown. All the vessels deployed on the Gemini India-Europe loop, known as the ME1 for Maersk and the IOS for Hapag-Lloyd, are from the Danish liner. Multi-modal solutions Meanwhile, ocean carriers are rapidly shifting from port-to-port shipping to integrated regional multimodal solutions to handle imports into the Middle East, an alternative supply chain model that industry observers believe could outlast the war as cargo interests seek reliability and resilience in the supply chain. Supporting that transformation, there have been a series of collaborative attempts by Persian Gulf states, including the United Arab Emirates (UAE), Oman and Saudi Arabia, to establish “land bridges” by trucking and/or “green corridors” through sea-land networks for cargo flows within the region. One example is a strategic partnership between the UAE’s Gulftainer and the Saudi Ports Authority (Mawani) to open alternative logistics links between Sharjah in the UAE and Dammam in Saudi Arabia. Additionally, Saudi Arabia is offering an extended 60-day free time for the storage of Gulf import/export containers in addition to implementing multiple regulatory relaxations, including raising the permitted operational age of trucks in the country from 20 years to 22 years. Major liners have also stepped up the evacuation of Middle East-bound containers rerouted to Indian ports. Hapag-Lloyd this week has a shuttle sailing from Nhava Sheva in West India to Fujairah in the UAE, with onward connections available for Jebel Ali by trucking. Contact Bency Mathew at bencyvmathew@gmail.com .

Salalah disruptions send carriers on Indian trades back to adding Pakistan calls

<div class="phx-topic abstract-wrapper">With big carriers “ferociously” integrating, those down the pecking order like smaller liners, neutral terminal operators and leasing companies have seen their market shrink and need to review strategy as a result, writes Jeremy Masters. </div>

With big carriers “ferociously” integrating, those down the pecking order like smaller liners, neutral terminal operators and leasing companies have seen their market shrink and need to review strategy as a result, writes Jeremy Masters.

<div class="phx-topic">Hapag-Lloyd's potential acquisition of Zim Integrated Shipping Services has focused attention on what the relentless growth of the top carriers means for the industry. It is not just their size that is changing the structure of the industry, but also that the biggest carriers are aggressively acquiring terminals and the ships to run regional and feeder systems off those terminals. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6195791_0.1.jpg"></img></div>As the largest carriers ferociously vertically integrate, they are squeezing sectors in the industry that were previously vibrantly self-standing. Small and midsized carriers, neutral terminal operating companies, non-operating owners, third-party feeder companies, and leasing companies are all seeing erosion of their share and/or market (regionally, if not always globally) and need to review strategy. <h3>Increased size is not necessarily a solution </h3>One reaction for the rest of the industry is to scale up, but it's not easy. If we take the arms race among carriers right now, Alphaliner indicates that Ocean Network Express (ONE) has an order book of 29% of its existing capacity. A sizeable amount, but even with a potential enhancement <a href="https://www.joc.com/article/one-boosts-ownership-stake-in-seaspan-parent-poseidon-6184045">per the latest press</a>, it may be only just enough to keep its sixth place given Evergreen’s 47% order book. Even if a midsized or smaller carrier has the means to raise its place in the capacity ranking, the structural increase in oversupply coming in the next three years means that it’s a dubious investment, especially in the big ship sizes. Indeed, the more that is further invested in building critical mass, the lower the likely return on capital for several years. If organic expansion is not a good short/medium term solution for keeping your place in the pecking order, then consolidation is an alternative, but there are not many obvious candidates for takeover — as illustrated in Hapag-Lloyd’s willingness to attempt a complicated <a href="https://www.joc.com/article/hapag-lloyd-bolsters-fleet-with-42-billion-deal-to-acquire-zim-6170540">takeover of Zim</a>. Consortia have provided a concrete way for smaller carriers to punch above their weight, but the fallout from the 2M breakup was to create four east-west key sets of deployments rather than the previous three, which has contributed to structural overcapacity. The salvation for the top 10 carriers who lack fire power may ultimately be a combo of carrier and consortia consolidation with a return to three alliances in the east-west trades (counting Mediterranean Shipping Co. as an alliance) and/or expansion of the geography of alliances with some regional specialization. Of course, even if ocean salvation is achieved through consolidation, the smaller top 10 carriers will still have far less vertical integration than the bigger ones. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b329b55b-f24b-4c28-90ae-63ad99a09181"></dynamic-object></div>Meantime, other suppliers to the carriers can also grow organically or consolidate to gain economies of scale, but if carriers are busy buying their competitor’s assets and driving business through the acquisitions, then this may not be effective. Sea-web, a sister product of the Journal of Commerce within S&amp;P Global, pegs Evergreen’s orderbook at 42% of existing capacity, with ONE at 27%. <h3>Retuning your business model </h3>Non-operating owners (NOOs) are an interesting case study because their share of the total fleet has been declining (as carriers swoop to buy some of their fleet), but charter rates are high and NOOs are profitable. Those at the top end like Seaspan that are providing purchasing and technical expertise as well as the ability to take assets off the balance sheet with long-term charters are providing a service that suits carriers and thus have a strong sustainable model. Those NOOs that are focused purely on buying, selling and chartering smaller ships for shorter periods face a more volatile market. They have to calculate whether the sustained purchasing of their older stock by carriers means lower long-term demand or whether the current charter market, buoyed by inelasticity from these purchases and demand from system disruptions, is also a reflection of long-term strength in deep-sea, regional and feeder trades that these ships are used for. The order book of smaller players is comparatively modest versus current demand, and it could be expected that new efficient, alternative-fueled ships will be in strong long-term demand, including from those carriers currently focused on the second-hand market. What looks like a squeezed market could also be an opportunity. The “middle powers” could also consider new alliances. For example, NOO’s that are focused on the smaller, shorter-term end of the market could have a joint venture with a midsized liner operator or feeder carrier that is both an operating and asset play. The NOO buys secondhand ships in down cycles, leases them to their carrier partner at very competitive rates, and the carrier opportunistically finds a home for them. When secondhand ship rates increase, the partners enjoy the shared fruits of a profitable sale. Of course, if selling is the preferred option, it’s a good time to sell to a hungry predator. As things get tougher, they will be less inclined to splurge! Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

Hapag-Lloyd's potential acquisition of Zim Integrated Shipping Services has focused attention on what the relentless growth of the top carriers means for the industry. It is not just their size that is changing the structure of the industry, but also that the biggest carriers are aggressively acquiring terminals and the ships to run regional and feeder systems off those terminals. As the largest carriers ferociously vertically integrate, they are squeezing sectors in the industry that were previously vibrantly self-standing. Small and midsized carriers, neutral terminal operating companies, non-operating owners, third-party feeder companies, and leasing companies are all seeing erosion of their share and/or market (regionally, if not always globally) and need to review strategy. Increased size is not necessarily a solution One reaction for the rest of the industry is to scale up, but it's not easy. If we take the arms race among carriers right now, Alphaliner indicates that Ocean Network Express (ONE) has an order book of 29% of its existing capacity. A sizeable amount, but even with a potential enhancement per the latest press , it may be only just enough to keep its sixth place given Evergreen’s 47% order book. Even if a midsized or smaller carrier has the means to raise its place in the capacity ranking, the structural increase in oversupply coming in the next three years means that it’s a dubious investment, especially in the big ship sizes. Indeed, the more that is further invested in building critical mass, the lower the likely return on capital for several years. If organic expansion is not a good short/medium term solution for keeping your place in the pecking order, then consolidation is an alternative, but there are not many obvious candidates for takeover — as illustrated in Hapag-Lloyd’s willingness to attempt a complicated takeover of Zim . Consortia have provided a concrete way for smaller carriers to punch above their weight, but the fallout from the 2M breakup was to create four east-west key sets of deployments rather than the previous three, which has contributed to structural overcapacity. The salvation for the top 10 carriers who lack fire power may ultimately be a combo of carrier and consortia consolidation with a return to three alliances in the east-west trades (counting Mediterranean Shipping Co. as an alliance) and/or expansion of the geography of alliances with some regional specialization. Of course, even if ocean salvation is achieved through consolidation, the smaller top 10 carriers will still have far less vertical integration than the bigger ones. Meantime, other suppliers to the carriers can also grow organically or consolidate to gain economies of scale, but if carriers are busy buying their competitor’s assets and driving business through the acquisitions, then this may not be effective. Sea-web, a sister product of the Journal of Commerce within S&P Global, pegs Evergreen’s orderbook at 42% of existing capacity, with ONE at 27%. Retuning your business model Non-operating owners (NOOs) are an interesting case study because their share of the total fleet has been declining (as carriers swoop to buy some of their fleet), but charter rates are high and NOOs are profitable. Those at the top end like Seaspan that are providing purchasing and technical expertise as well as the ability to take assets off the balance sheet with long-term charters are providing a service that suits carriers and thus have a strong sustainable model. Those NOOs that are focused purely on buying, selling and chartering smaller ships for shorter periods face a more volatile market. They have to calculate whether the sustained purchasing of their older stock by carriers means lower long-term demand or whether the current charter market, buoyed by inelasticity from these purchases and demand from system disruptions, is also a reflection of long-term strength in deep-sea, regional and feeder trades that these ships are used for. The order book of smaller players is comparatively modest versus current demand, and it could be expected that new efficient, alternative-fueled ships will be in strong long-term demand, including from those carriers currently focused on the second-hand market. What looks like a squeezed market could also be an opportunity. The “middle powers” could also consider new alliances. For example, NOO’s that are focused on the smaller, shorter-term end of the market could have a joint venture with a midsized liner operator or feeder carrier that is both an operating and asset play. The NOO buys secondhand ships in down cycles, leases them to their carrier partner at very competitive rates, and the carrier opportunistically finds a home for them. When secondhand ship rates increase, the partners enjoy the shared fruits of a profitable sale. Of course, if selling is the preferred option, it’s a good time to sell to a hungry predator. As things get tougher, they will be less inclined to splurge! Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

Industry faces trickle down pivot as largest ocean carriers continue to grow 

<div class="phx-topic abstract-wrapper">Carriers are already facing tight supplies in most key bunkering hubs including the Middle East and South Africa, which has led operators to cut the speed of ships and become more flexible in sourcing fuel. </div>

Carriers are already facing tight supplies in most key bunkering hubs including the Middle East and South Africa, which has led operators to cut the speed of ships and become more flexible in sourcing fuel.

<div class="phx-topic">Multipurpose vessel (MPV) operators are set to face worsening bunker supply issues in April if the Middle East war continues to disrupt fuel availability, shipping executives and analysts say. Carriers are already facing tight supplies in most key bunkering hubs including the Middle East and South Africa, which has led operators to cut the speed of ships and become more flexible in sourcing fuel supplies. Adding to the strain is the fact fuel prices are almost double what they were at the start of the year. Highlighting the challenges facing MPV operators, Marcus Remmers, AAL Shipping’s regional operations manager for Europe, said while supply is still available, “conditions remain fragile.” “We are seeing tightening availability in multiple regions around the world,” Remmers told the Journal of Commerce. “If the situation persists, we expect more tangible impacts within the next two to three weeks. “The global bunker market has shifted from a simple oil price spike to a structural supply and logistics crisis driven by geopolitics,” he added. “The core issue is now product availability, not crude prices, keeping the overall market tight and highly volatile.” He pointed out that Asia and the Middle East are the two main areas most at risk of fuel supply shortages due to their reliance on imports of crude oil and refined products from the region. <h3>Export ban deepens bunker sourcing issues </h3>Potential shortages have been exacerbated by a ban on oil and fuel exports by some countries, including China, and longer vessel transits as ships avoid the conflict zone around the Persian Gulf and Red Sea region. “Europe is relatively more stable operationally but increasingly exposed to diesel and distillate tightness following reduced Russian product flows,” Remmers said. “South Africa shows patchy availability, with very tight low sulfur marine gas oil (LSMGO) in Durban and Cape Town, making last minute procurement risky.” Arthur English, CEO of Norway-headquartered MPV operator G2 Ocean, said “fuel products remain accessible (in South Africa), although pricing is notably higher than in other competitive regions.” Other shipping sources reported little or no fuel availability at South African ports. Globally, MPV operators said supplies of low sulfur marine gas oil and very low sulfur fuel oil (VLSFO) are especially tight. Marine gas oil has a sulfur content of less than 0.1% while fuel oil is below 0.5%. “LSMGO is currently the most exposed grade,” Remmers said. “In some markets, supply is already being restricted or bundled with VLSFO, and several regions are approaching suspension of standalone LSMGO deliveries.” English said increased demand for low sulfur marine fuels and tighter supply has made marine gas oil “particularly susceptible to market fluctuations.” “As a result, we have noticed that LSMGO is not only harder to secure but also has a higher premium in most locations,” he said. Those difficulties have led G2 Ocean to seek new sources of supply. “The locations where we take on bunkers have shifted, becoming far more flexible and dispersed geographically,” English said. “This allows us to adapt quickly to changing supply conditions and pricing, ensuring we maintain operational efficiency and reliability for our customers.” <h3>Smaller operators hit the hardest </h3>While large MPV operators including AAL Shipping, G2 Ocean, Chipolbrok and Norden have lengthy supply contracts or source directly from bunker suppliers rather than buy spot cargoes, Justin Archard, founder and owner of specialist MPV shipbroking house OneWorld Shipbrokers, said smaller operators that comprise much of the sector do not have big supply contracts. “It’s a mess out there, to be sure,” Archard told the Journal of Commerce. “Bunkers, whether price or availability, I think will be the choke point if this war continues much longer.” British shipbroking house Clarksons said the price of VLSFO was $848 per metric ton on Friday in Singapore, the world’s biggest bunkering hub. That’s down from $1,078/mt a week earlier but still nearly double the $431/mt it was on Jan 2. Prices at other major ship refueling hubs also reflected the massive volatility. In Fujairah, VLSFO was $858/mt on Friday, down from $1,084/mt on March 20 but double $428/mt on Jan. 2, according to Clarksons. Rotterdam prices eased to $728/mt on Friday from $812/mt on March 20, but are still up from $416/mt on Jan 2. MPV operators including AAL Shipping have imposed emergency fuel surcharges and other bunker pricing mechanisms to help recover some of the increased cost, although the full impact of the higher prices will only be known when the conflict is over. “From the beginning of the crisis in the Strait of Hormuz, we have adopted a strategy to first secure the bunkers and then worry about the price afterwards,” Michal Gomerski, shipping director at Sino-Polish MPV owner Chipolbrok Shanghai, told the Journal of Commerce. “We fill up our vessels to the top so there is no big impact on our cargo volumes and there are no weight restrictions.  “We have not turned cargo down, but we do see bulk cargo owners are adopting a wait-and-see strategy because they are unwilling to risk bunker fuel surcharges or higher freight rates due to the situation,” he added. Contact Keith Wallis on <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Multipurpose vessel (MPV) operators are set to face worsening bunker supply issues in April if the Middle East war continues to disrupt fuel availability, shipping executives and analysts say. Carriers are already facing tight supplies in most key bunkering hubs including the Middle East and South Africa, which has led operators to cut the speed of ships and become more flexible in sourcing fuel supplies. Adding to the strain is the fact fuel prices are almost double what they were at the start of the year. Highlighting the challenges facing MPV operators, Marcus Remmers, AAL Shipping’s regional operations manager for Europe, said while supply is still available, “conditions remain fragile.” “We are seeing tightening availability in multiple regions around the world,” Remmers told the Journal of Commerce. “If the situation persists, we expect more tangible impacts within the next two to three weeks. “The global bunker market has shifted from a simple oil price spike to a structural supply and logistics crisis driven by geopolitics,” he added. “The core issue is now product availability, not crude prices, keeping the overall market tight and highly volatile.” He pointed out that Asia and the Middle East are the two main areas most at risk of fuel supply shortages due to their reliance on imports of crude oil and refined products from the region. Export ban deepens bunker sourcing issues Potential shortages have been exacerbated by a ban on oil and fuel exports by some countries, including China, and longer vessel transits as ships avoid the conflict zone around the Persian Gulf and Red Sea region. “Europe is relatively more stable operationally but increasingly exposed to diesel and distillate tightness following reduced Russian product flows,” Remmers said. “South Africa shows patchy availability, with very tight low sulfur marine gas oil (LSMGO) in Durban and Cape Town, making last minute procurement risky.” Arthur English, CEO of Norway-headquartered MPV operator G2 Ocean, said “fuel products remain accessible (in South Africa), although pricing is notably higher than in other competitive regions.” Other shipping sources reported little or no fuel availability at South African ports. Globally, MPV operators said supplies of low sulfur marine gas oil and very low sulfur fuel oil (VLSFO) are especially tight. Marine gas oil has a sulfur content of less than 0.1% while fuel oil is below 0.5%. “LSMGO is currently the most exposed grade,” Remmers said. “In some markets, supply is already being restricted or bundled with VLSFO, and several regions are approaching suspension of standalone LSMGO deliveries.” English said increased demand for low sulfur marine fuels and tighter supply has made marine gas oil “particularly susceptible to market fluctuations.” “As a result, we have noticed that LSMGO is not only harder to secure but also has a higher premium in most locations,” he said. Those difficulties have led G2 Ocean to seek new sources of supply. “The locations where we take on bunkers have shifted, becoming far more flexible and dispersed geographically,” English said. “This allows us to adapt quickly to changing supply conditions and pricing, ensuring we maintain operational efficiency and reliability for our customers.” Smaller operators hit the hardest While large MPV operators including AAL Shipping, G2 Ocean, Chipolbrok and Norden have lengthy supply contracts or source directly from bunker suppliers rather than buy spot cargoes, Justin Archard, founder and owner of specialist MPV shipbroking house OneWorld Shipbrokers, said smaller operators that comprise much of the sector do not have big supply contracts. “It’s a mess out there, to be sure,” Archard told the Journal of Commerce. “Bunkers, whether price or availability, I think will be the choke point if this war continues much longer.” British shipbroking house Clarksons said the price of VLSFO was $848 per metric ton on Friday in Singapore, the world’s biggest bunkering hub. That’s down from $1,078/mt a week earlier but still nearly double the $431/mt it was on Jan 2. Prices at other major ship refueling hubs also reflected the massive volatility. In Fujairah, VLSFO was $858/mt on Friday, down from $1,084/mt on March 20 but double $428/mt on Jan. 2, according to Clarksons. Rotterdam prices eased to $728/mt on Friday from $812/mt on March 20, but are still up from $416/mt on Jan 2. MPV operators including AAL Shipping have imposed emergency fuel surcharges and other bunker pricing mechanisms to help recover some of the increased cost, although the full impact of the higher prices will only be known when the conflict is over. “From the beginning of the crisis in the Strait of Hormuz, we have adopted a strategy to first secure the bunkers and then worry about the price afterwards,” Michal Gomerski, shipping director at Sino-Polish MPV owner Chipolbrok Shanghai, told the Journal of Commerce. “We fill up our vessels to the top so there is no big impact on our cargo volumes and there are no weight restrictions.  “We have not turned cargo down, but we do see bulk cargo owners are adopting a wait-and-see strategy because they are unwilling to risk bunker fuel surcharges or higher freight rates due to the situation,” he added. Contact Keith Wallis on keithwallis@hotmail.com .

MPV operators face worsening bunker fuel supply crisis as stocks tighten

<div class="phx-topic abstract-wrapper">Strength in the breakbulk and project cargo markets has encouraged a round of new ship orders. </div>

Strength in the breakbulk and project cargo markets has encouraged a round of new ship orders.

<div class="phx-topic">Breakbulk vessel operators show little sign of slowing their ordering spree for new ships with a raft of deals made with Chinese shipyards amid continued buoyancy in the multipurpose vessel (MPV) market despite uncertainty caused by the Middle East war. The latest orders build upon the momentum seen at the start of the year when carriers announced a slew of new vessel contracts. AAL Shipping leads the newest batch with a contract at CSSC Huangpu Wenchong Shipyard in Guangzhou, southern China, for two additional 32,000 deadweight metric ton (dwt) Super B-class vessels. The carrier announced the order ahead of the naming of AAL Shipping’s latest Super B-class vessel, AAL Newcastle, due to take place Tuesday. The newest ships, to be named AAL Tianjin and AAL Miami, will take the carrier’s Super B-class fleet to 10 ships when delivered in early 2028. AAL said the AAL Newcastle will be joined by AAL Mumbai in June. Both have been upgraded with higher specification cranes that increase individual lifting capacity to 400 metric tons from 350 metric tons “to increase lifting performance and cargo flexibility.” Other design refinements include a new 26-meter lifting beam, up from the 20 meters deployed on earlier vessels, enabling the handling of elongated structures with greater ease and precision. <h3>Scandinavian orders add to supply picture </h3>Copenhagen-headquartered DS Norden, meanwhile, is also further expanding its MPV fleet with an order for two 23,000-dwt ice-class ships at Wuchang Shipbuilding Industry Group in Wuhan, central China, with delivery expected in 2028. The ships will be equipped with two 80-metric ton cranes and will be able to operate on biofuel. The ships have been ordered against a long-term 10-year contract of affreightment with Swedish mining giant LKAB. The ships also mark Norden’s entry into the specialized ice-class segment and will expand “the solutions we can offer customers with transport needs in northern and ice-prone waters,” Norden CEO Jan Rindbo said in a statement announcing the deal Friday. They take Norden’s vessel order backlog to 28 ships after it agreed in January to charter up to eight 17,400-dwt MPVs from Singapore-headquartered Wealth Holdings Shipping, which contracted the ships from China’s Jiangsu Haitong Shipyard against the Norden charter.   <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="be82ad49-72b7-49f2-967f-0107567aab6f"></dynamic-object></div>Norway’s Halten Bulk has ordered four 7,100-dwt MPVs from China’s Jiangsu Soho Marine Heavy Industry in Yizheng, Jiangsu province, in a move that will almost double the carrier’s fleet from five to nine ships when delivered in 2028 and 2029. The battery-hybrid powered ships will be capable of carrying 400 TEUs. Fellow Scandinavian owner Godby Shipping has also confirmed a deal for up to four 6,200-dwt roll-on/roll-off ships at the Yantai CIMC Raffles Offshore shipyard in Shandong province, northern China. The contract comprises a firm order for two Stream Roro 1700-class ships for delivery in September 2028 and January 2029, with options for two similar ships. The carrier said the methanol-ready, battery-hybrid ships will have 1,700 linear meters of deck space capable of carrying trucks, cars, forestry products and other breakbulk and project cargoes. MPV/heavy-lift fleet growth is expected to average about 1.3% per year through 2030, according to Journal of Commerce estimates. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Breakbulk vessel operators show little sign of slowing their ordering spree for new ships with a raft of deals made with Chinese shipyards amid continued buoyancy in the multipurpose vessel (MPV) market despite uncertainty caused by the Middle East war. The latest orders build upon the momentum seen at the start of the year when carriers announced a slew of new vessel contracts. AAL Shipping leads the newest batch with a contract at CSSC Huangpu Wenchong Shipyard in Guangzhou, southern China, for two additional 32,000 deadweight metric ton (dwt) Super B-class vessels. The carrier announced the order ahead of the naming of AAL Shipping’s latest Super B-class vessel, AAL Newcastle, due to take place Tuesday. The newest ships, to be named AAL Tianjin and AAL Miami, will take the carrier’s Super B-class fleet to 10 ships when delivered in early 2028. AAL said the AAL Newcastle will be joined by AAL Mumbai in June. Both have been upgraded with higher specification cranes that increase individual lifting capacity to 400 metric tons from 350 metric tons “to increase lifting performance and cargo flexibility.” Other design refinements include a new 26-meter lifting beam, up from the 20 meters deployed on earlier vessels, enabling the handling of elongated structures with greater ease and precision. Scandinavian orders add to supply picture Copenhagen-headquartered DS Norden, meanwhile, is also further expanding its MPV fleet with an order for two 23,000-dwt ice-class ships at Wuchang Shipbuilding Industry Group in Wuhan, central China, with delivery expected in 2028. The ships will be equipped with two 80-metric ton cranes and will be able to operate on biofuel. The ships have been ordered against a long-term 10-year contract of affreightment with Swedish mining giant LKAB. The ships also mark Norden’s entry into the specialized ice-class segment and will expand “the solutions we can offer customers with transport needs in northern and ice-prone waters,” Norden CEO Jan Rindbo said in a statement announcing the deal Friday. They take Norden’s vessel order backlog to 28 ships after it agreed in January to charter up to eight 17,400-dwt MPVs from Singapore-headquartered Wealth Holdings Shipping, which contracted the ships from China’s Jiangsu Haitong Shipyard against the Norden charter.   Norway’s Halten Bulk has ordered four 7,100-dwt MPVs from China’s Jiangsu Soho Marine Heavy Industry in Yizheng, Jiangsu province, in a move that will almost double the carrier’s fleet from five to nine ships when delivered in 2028 and 2029. The battery-hybrid powered ships will be capable of carrying 400 TEUs. Fellow Scandinavian owner Godby Shipping has also confirmed a deal for up to four 6,200-dwt roll-on/roll-off ships at the Yantai CIMC Raffles Offshore shipyard in Shandong province, northern China. The contract comprises a firm order for two Stream Roro 1700-class ships for delivery in September 2028 and January 2029, with options for two similar ships. The carrier said the methanol-ready, battery-hybrid ships will have 1,700 linear meters of deck space capable of carrying trucks, cars, forestry products and other breakbulk and project cargoes. MPV/heavy-lift fleet growth is expected to average about 1.3% per year through 2030, according to Journal of Commerce estimates. Contact Keith Wallis at keithwallis@hotmail.com .

Multipurpose vessel ordering spree continues with raft of new deals

<div class="phx-topic abstract-wrapper">The ocean carrier is acquiring a 30% stake in a Hutchison-owned terminal operator that runs four terminals at the port in Thailand. </div>

The ocean carrier is acquiring a 30% stake in a Hutchison-owned terminal operator that runs four terminals at the port in Thailand.

<div class="phx-topic">Ocean Network Express (ONE) is buying a stake in Thailand’s largest marine terminal operator from Chinese port operator Hutchison Ports, continuing a spate of recent terminal investments the ocean carrier has made in Asia. ONE said in a statement Sunday it signed a purchase agreement for a 30% stake in Hutchison Laemchabang Terminal Limited (HLT) for an undisclosed sum. The ocean carrier said HLT is an integral part of Thailand’s long-term plans to develop a high-tech, manufacturing economy. ONE also said HLT has a commitment to “advanced port technology” as the terminal operator has invested in remotely operated ship-to-shore and yard stacking cranes. HLT runs Laem Chabang Port’s Terminal D, as well as terminals C1, C2 and A3. The port is about 80 miles south of Bangkok. “This acquisition secures long-term access to competitive terminal capacity, further strengthening our presence in ONE’s key strategic market,” the carrier said in its statement. Over the last 12 months, ONE has been one of the most frequent callers among major ocean carriers to HLT’s Terminal D, which handles super post-Panamax container ships. ONE has made 113 calls to Terminal D, with an average vessel size of 10,800 TEUs, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Mediterranean Shipping Co. just follows with 110 calls over the same period, according to Sea-web. ONE’s acquisition of the HLT stake comes one week after it made a similar deal for <a href="https://www.joc.com/article/one-takes-stake-in-busans-dongwon-terminal-ahead-of-premier-network-shift-6192330">an undisclosed share in the Dongwon Global Terminal</a> in Busan, South Korea. Last year, ONE also purchased <a href="https://www.joc.com/article/hapag-lloyd-one-expand-terminal-networks-with-deals-in-brazil-china-6139983">a stake in China’s Dalian Container Terminal</a>, which came after it acquired <a href="https://www.joc.com/article/one-adds-to-terminal-holdings-with-stake-in-indonesian-operator-5873398">a minority stake in Indonesia’s New Priok Container Terminal One</a> in 2024. More broadly, container lines, supported by recent record profits, <a href="https://www.joc.com/article/apmt-takes-49-stake-in-haiphongs-hhit-terminal-in-northern-vietnam-6190288">are investing more in marine terminals</a> to gain better control of landside operations and mitigate port congestion. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Ocean Network Express (ONE) is buying a stake in Thailand’s largest marine terminal operator from Chinese port operator Hutchison Ports, continuing a spate of recent terminal investments the ocean carrier has made in Asia. ONE said in a statement Sunday it signed a purchase agreement for a 30% stake in Hutchison Laemchabang Terminal Limited (HLT) for an undisclosed sum. The ocean carrier said HLT is an integral part of Thailand’s long-term plans to develop a high-tech, manufacturing economy. ONE also said HLT has a commitment to “advanced port technology” as the terminal operator has invested in remotely operated ship-to-shore and yard stacking cranes. HLT runs Laem Chabang Port’s Terminal D, as well as terminals C1, C2 and A3. The port is about 80 miles south of Bangkok. “This acquisition secures long-term access to competitive terminal capacity, further strengthening our presence in ONE’s key strategic market,” the carrier said in its statement. Over the last 12 months, ONE has been one of the most frequent callers among major ocean carriers to HLT’s Terminal D, which handles super post-Panamax container ships. ONE has made 113 calls to Terminal D, with an average vessel size of 10,800 TEUs, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. Mediterranean Shipping Co. just follows with 110 calls over the same period, according to Sea-web. ONE’s acquisition of the HLT stake comes one week after it made a similar deal for an undisclosed share in the Dongwon Global Terminal in Busan, South Korea. Last year, ONE also purchased a stake in China’s Dalian Container Terminal , which came after it acquired a minority stake in Indonesia’s New Priok Container Terminal One in 2024. More broadly, container lines, supported by recent record profits, are investing more in marine terminals to gain better control of landside operations and mitigate port congestion. Contact Michael Angell at michael.angell@spglobal.com .

ONE adds to Asian terminal holdings with Laem Chabang deal

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