<div class="phx-topic abstract-wrapper">Reports of unjustified surcharges have been on the rise following the introduction of a new mandatory container weight verification rule that took effect last month, according to the Global Shippers Forum.</div>

Reports of unjustified surcharges have been on the rise following the introduction of a new mandatory container weight verification rule that took effect last month, according to the Global Shippers Forum.

<div>A global group of shippers is targeting an end to container shipping surcharges within five years via a multi-pronged plan to lobby international bodies, including the World Trade Organization, and publicly shame what they say are the industry’s worst offenders.Reports of unjustified surcharges have been on the rise following the introduction of a new mandatory <a>container weight</a> verification rule that took effect last month, according to the Global Shippers Forum. And although they are virtually nonexistent in North America, Europe and Australasia, the levying and imposition of such pre-shipment charges and surcharges remains a key issue for shippers in Africa,...

A global group of shippers is targeting an end to container shipping surcharges within five years via a multi-pronged plan to lobby international bodies, including the World Trade Organization, and publicly shame what they say are the industry’s worst offenders. Reports of unjustified surcharges have been on the rise following the introduction of a new mandatory container weight verification rule that took effect last month, according to the Global Shippers Forum. And although they are virtually nonexistent in North America, Europe and Australasia, the levying and imposition of such pre-shipment charges and surcharges remains a key issue for shippers in Africa, Asia and other developing regions, the group said. The GSF — which serves as an umbrella for national shipper groups, including the National Industrial Transportation League in the U.S. — had a seat at the table when the new International Maritime Organization rule was first drafted. The group, however, now says some container lines and forwarders are exploiting the new rule to charge exorbitant and unjustified charges for questionable and unspecified “administration fees” and other “services” related to the collection and transmission of a container’s verified gross mass, a number now required before a box can be loaded on a seafaring vessel. “Within days of implementation of the new rules, GSF was inundated with complaints from shippers’ organizations in Africa and Asia of new ‘administration’ fees and add-on charges for unspecified and dubious ‘services’ being imposed on shippers,” the GSF reported in its fifth annual report released last month. The levying of surcharges amounts to a non-tariff trade barrier and can be damaging to the development of international trade, the group says. It is also likely to contribute to the fact that international transportation costs for countries in Africa and Oceania are 40 to 70 percent higher on average than developed countries, the group said, quoting figures from the United Nations Conference on Trade and Development. The shippers’ forum unveiled its ambitious plan to end global shipping surcharges last week at its annual meeting in Colombo, Sri Lanka. “GSF is looking to end the imposition of surcharges on shippers by 2020 through a series of actions that will expose the scale and injustice of the practice to world trade bodies and if necessary publicise the worst examples notified to us,” Chris Welsh, secretary general of the Global Shippers Forum, said in a statement. Those different tactics include making the WTO and other U.N. bodies aware of the scale and impact of the practice; seeking an amendment to the International Commercial Terms compiled by the International Chamber of Commerce to make clear who is responsible for the settlement of certain costs currently recovered through surcharges; as well as “naming and shaming” the worst examples of opaque and unjustified surcharges. “Our campaign will expose the extent of surcharging and make it an issue in future trading agreements,” Welsh said in a statement. Although the plan is ambitious, it is not impossible, Welsh’s group said. In Europe, the battle was hard won, but ultimately made possible through concerted legal actions on the shippers’ part. In the mid-2000s, the European Commission determined in a statement of objections that the alignment of surcharges by the then Far Eastern Freight Conference and a number of independent lines in the Asia-Europe liner market was unlawful. The carriers dropped their surcharges agreement under the threat of legal action and the possibility of heavy fines for breaches of EU competition law. It is also notable that following the removal of antitrust exemption for carriers in Europe in 2008 within months terminal handling charges that were previously fixed by liner conferences dropped dramatically as carriers had to set their own individual prices. The GSF is not the only shipper group to call attention to what it says are unfair fees. The Hong Kong Shippers’ Council last month sharply criticized forwarders’ VGM fees, saying the keying in of VGM was too little work to justify charges. The Agriculture Transportation Coalition, a major U.S. exporter group, has also warned that some carriers and terminal operators are threatening new fees. The group wants the Federal Maritime Commission, the top U.S. maritime regulatory agency, to step in like it did when carriers tried to levy West Coast congestion surcharges during the 2014 and 2015 labor crisis and head off any fees tied to SOLAS. Forwarders have defended the fees, arguing that the keying in of VGM data requires extra effort and time. There is also considerable, and as yet unexplored, financial risk and legal angles to the SOLAS rule. Contact Reynolds Hutchins at reynolds.hutchins@ihsmarkit.com and follow him on Twitter: @Hutchins_JOC .

Transport, Trade and Regulation News

Shippers to use lobby-and-embarrass strategy to end surcharges

<div class="phx-topic abstract-wrapper">The rule will likely mean a slow trickle of capacity exiting the trucking market, though the industry and analysts are split on the exact impact.</div>

The rule will likely mean a slow trickle of capacity exiting the trucking market, though the industry and analysts are split on the exact impact.

Feature image

<div class="phx-topic">The Federal Motor Carrier Safety Administration (FMCSA) has released its final rule on non-domiciled commercial driver’s licenses (CDLs), something that has the trucking industry split on its potential impact on capacity and pricing. The rule, released Wednesday, would limit future CDL eligibility to foreign nationals who hold H-2A, H-2B, or E-2 nonimmigrant status. It would eliminate other immigrants in the US on H-1B visas, as well as asylum seekers, those here on temporary protected status, and those part of the Deferred Action for Childhood Arrivals from Canada or Mexico program. The Interim Final Rule (IFR) would also require state agencies to check all applicants against federal databases to verify immigration status and perform in-person renewals every year. It also eliminates an employment authorization document as valid proof of lawful presence in the US. The rule is forward-looking and does not apply retroactively to existing licenses on day one. “With regard to drivers who currently hold an unexpired non-domiciled CLP or CDL that was properly issued under pre-IFR rules, nothing in this final rule requires states to proactively revoke those licenses,” the rule states. “However, at the next license transaction following the effective date of this final rule, states are required to apply the new eligibility standards." The FMCSA states that H-2A, H-2B, and E-2 visa applicants undergo vetting that includes US consular assessment of English proficiency relevant to commercial driving safety, such as the ability to understand traffic signs and respond to official inquiries. <h3>Impact unclear </h3>The US Department of Transportation has estimated that up to 194,000 non-domiciled CDLs might be susceptible to not being renewed under the new rules, raising questions about the effect on capacity in the market. Some industry executives argue that enforcement activity — rather than the rule itself — <a href="https://www.joc.com/article/impact-of-non-domiciled-cdl-enforcement-splits-us-trucking-sector-6135184">could have a more immediate effect on capacity</a>. However, it’s unclear how many non-domiciled CDLs holders would ultimately be impacted, as enforcement would gradually occur over the lifespan of existing CDLs, which are valid for five years. There is also the risk of litigation. A truck driver named Jorge Rivera Lujan, along with multiple public interest groups, filed a lawsuit challenging an emergency rule covering the CDL issue last October. An appeals court issued an administrative stay and requested an update from the FMCSA to update the court on March 3, 2026. “Resolution of the court cases challenging the final rule will take a long time,” law firm Scopelitis, Garvin, Light, Hanson &amp; Feary wrote in a December note to clients. “It is possible any challenge may ultimately end up at the Supreme Court.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

The Federal Motor Carrier Safety Administration (FMCSA) has released its final rule on non-domiciled commercial driver’s licenses (CDLs), something that has the trucking industry split on its potential impact on capacity and pricing. The rule, released Wednesday, would limit future CDL eligibility to foreign nationals who hold H-2A, H-2B, or E-2 nonimmigrant status. It would eliminate other immigrants in the US on H-1B visas, as well as asylum seekers, those here on temporary protected status, and those part of the Deferred Action for Childhood Arrivals from Canada or Mexico program. The Interim Final Rule (IFR) would also require state agencies to check all applicants against federal databases to verify immigration status and perform in-person renewals every year. It also eliminates an employment authorization document as valid proof of lawful presence in the US. The rule is forward-looking and does not apply retroactively to existing licenses on day one. “With regard to drivers who currently hold an unexpired non-domiciled CLP or CDL that was properly issued under pre-IFR rules, nothing in this final rule requires states to proactively revoke those licenses,” the rule states. “However, at the next license transaction following the effective date of this final rule, states are required to apply the new eligibility standards." The FMCSA states that H-2A, H-2B, and E-2 visa applicants undergo vetting that includes US consular assessment of English proficiency relevant to commercial driving safety, such as the ability to understand traffic signs and respond to official inquiries. Impact unclear The US Department of Transportation has estimated that up to 194,000 non-domiciled CDLs might be susceptible to not being renewed under the new rules, raising questions about the effect on capacity in the market. Some industry executives argue that enforcement activity — rather than the rule itself — could have a more immediate effect on capacity . However, it’s unclear how many non-domiciled CDLs holders would ultimately be impacted, as enforcement would gradually occur over the lifespan of existing CDLs, which are valid for five years. There is also the risk of litigation. A truck driver named Jorge Rivera Lujan, along with multiple public interest groups, filed a lawsuit challenging an emergency rule covering the CDL issue last October. An appeals court issued an administrative stay and requested an update from the FMCSA to update the court on March 3, 2026. “Resolution of the court cases challenging the final rule will take a long time,” law firm Scopelitis, Garvin, Light, Hanson & Feary wrote in a December note to clients. “It is possible any challenge may ultimately end up at the Supreme Court.” Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking News

Trucking labor

Surface

USDOT releases interim final rule on non-domiciled CDL holders

<div class="phx-topic abstract-wrapper">Downward pressure on rates is set to continue with just over 1 million TEUs of capacity via ships above 10,000 TEUs scheduled to be delivered this year. </div>

Downward pressure on rates is set to continue with just over 1 million TEUs of capacity via ships above 10,000 TEUs scheduled to be delivered this year.

<div class="phx-topic">The urgent need to increase the virtually non-existent scrapping of old container ships as new vessels flood online is a key challenge for the industry as it navigates an increasingly oversupplied market, according to carriers and analysts. Pre-tax quarterly losses have already appeared on the balance sheets of <a href="https://www.joc.com/article/gemini-benefits-face-looming-challenge-from-oversupplied-market-maersk-ceo-6164887">Maersk</a>, its first in two years; and <a href="https://www.joc.com/article/frontloading-drags-one-to-a-loss-in-its-fiscal-third-quarter-6161263">Ocean Network Express</a>, its first quarterly loss since Q2 2018; with <a href="https://www.joc.com/article/fourth-quarter-rate-slump-drags-down-hapag-lloyds-2025-financials-6166755">Hapag-Lloyd</a> and <a href="https://www.joc.com/article/hmm-profitability-falls-as-carrier-warns-of-growing-supply-demand-imbalance-6167842">HMM</a> both reporting steep declines in Q4 profitability. Downward pressure on rates is set to continue with just over 1 million TEUs of capacity via ships above 10,000 TEUs scheduled to be delivered this year. That will be followed by 2.3 million TEUs of capacity due for delivery in 2027 and 3.4 million TEUs in 2028, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. There is no sign of carriers pausing ship orders, either. A record 4.8 million TEUs of new ship capacity was ordered in 2025 and that momentum has carried into 2026 with another 290,000 TEUs ordered in January, according to maritime consultancy Drewry. Even as the capacity overhang is pushed further out, scrapping remains at negligible levels. Drewry said <a href="https://www.drewry.co.uk/container-insight-weekly/weekly-feature-articles/bath-taps-wide-open-for-new-containerships">in its container insight</a> that 6,000 TEUs of capacity was scrapped in 2025, while Alphaliner puts the number slightly higher at 8,172 TEUs, calling it the lowest number in 20 years, according to their data. Shipping association Bimco estimated late last year that the share of ships 20 years old or older in the global fleet had increased from 16% at the beginning of 2020 to around 24%, putting the recycling overhang at 500 ships with a combined capacity of 1.8 million TEUs. <h3>Challenge to profitability </h3>In the financial results announced so far by ocean carriers, overcapacity was highlighted as a significant challenge to profitability. The most optimistic prediction is for global volumes to grow 4% this year, but with the steady influx of new ships and a return of some services to the Suez Canal, Maersk is expecting overcapacity in 2026 to be as high as 8%. The severe impact of overcapacity on the market and a reluctance of carriers to scrap older vessels was outlined in Maersk’s 2026 profitability forecast announced last week. Faced with a return to the Suez and new industry capacity coming online, Maersk flagged a potential $1.5 billion loss in its full-year EBIT earnings for 2026; it would be the first operating loss the carrier has booked in 10 years. The top end of the profit guidance was set at $1 billion, $2.5 billion less than last year’s result. “The pace and extent of scrapping will influence whether the company reaches the upper or lower end of its financial guidance for the year,” Maersk CEO Vincent Clerc said on last week’s earnings call, noting that an increase in scrapping would likely be triggered by a wider industry return to the Suez. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="994022ec-453b-46eb-b729-fcd589a9082d"></dynamic-object></div>Alphaliner took a similar view and is anticipating a rally of recycling in the second half of 2026, but only if the Suez route is once again widely used. Should Cape of Good Hope diversions continue through the year — along with the expected healthy cargo volumes, a moderate amount of newbuilding deliveries and a persistently tight supply of chartered tonnage – trading conditions could be good enough for ship owners to mostly stay clear of the recycling scene. “The rebound in scrapping would then be deferred to 2027 and 2028 when the colossal amount of newbuilding deliveries expected to hit the water during these two years will force a streamlining of the fleet,” Alphaliner noted. <h3>Over-ordering ‘a hard-wired habit’ </h3>Drewry’s five-year forecast includes a material increase in scrapping and is based on market conditions and nearly 1.5 million TEUs of the global fleet being at least 25 years old. Still, the consultancy warned that excess capacity would remain. “Over-ordering and limited demolitions have become consistent features of the industry over the past 15 or so years,” Drewry wrote in its container insight. “Therefore, one might question if this is a hard-wired habit that carriers will not be able to shake. Consolidation and bigger alliances were supposed to bring about more control, but there is little evidence of it to date.” Ocean carriers are already aggressively managing capacity through blank sailings and slow steaming, but Drewry said if scrapping levels did not increase soon, carriers would have to consider a further reduction in speed. “Spending billions on new hardware, only to then operate them significantly below design speed seems an inefficient waste,” Drewry said. “It would be better to tackle the problem at source and start removing vintage ships at scale.” Container shipping on the major east-west trades is now firmly in a buyers’ market, but Drewry warned shippers not to get too comfortable with that position. “While carrier behavior is notoriously difficult to predict, we have to assume that lines will not sit back idly and allow the market to drift against them without a fight,” the consultant noted. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The urgent need to increase the virtually non-existent scrapping of old container ships as new vessels flood online is a key challenge for the industry as it navigates an increasingly oversupplied market, according to carriers and analysts. Pre-tax quarterly losses have already appeared on the balance sheets of Maersk , its first in two years; and Ocean Network Express , its first quarterly loss since Q2 2018; with Hapag-Lloyd and HMM both reporting steep declines in Q4 profitability. Downward pressure on rates is set to continue with just over 1 million TEUs of capacity via ships above 10,000 TEUs scheduled to be delivered this year. That will be followed by 2.3 million TEUs of capacity due for delivery in 2027 and 3.4 million TEUs in 2028, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. There is no sign of carriers pausing ship orders, either. A record 4.8 million TEUs of new ship capacity was ordered in 2025 and that momentum has carried into 2026 with another 290,000 TEUs ordered in January, according to maritime consultancy Drewry. Even as the capacity overhang is pushed further out, scrapping remains at negligible levels. Drewry said in its container insight that 6,000 TEUs of capacity was scrapped in 2025, while Alphaliner puts the number slightly higher at 8,172 TEUs, calling it the lowest number in 20 years, according to their data. Shipping association Bimco estimated late last year that the share of ships 20 years old or older in the global fleet had increased from 16% at the beginning of 2020 to around 24%, putting the recycling overhang at 500 ships with a combined capacity of 1.8 million TEUs. Challenge to profitability In the financial results announced so far by ocean carriers, overcapacity was highlighted as a significant challenge to profitability. The most optimistic prediction is for global volumes to grow 4% this year, but with the steady influx of new ships and a return of some services to the Suez Canal, Maersk is expecting overcapacity in 2026 to be as high as 8%. The severe impact of overcapacity on the market and a reluctance of carriers to scrap older vessels was outlined in Maersk’s 2026 profitability forecast announced last week. Faced with a return to the Suez and new industry capacity coming online, Maersk flagged a potential $1.5 billion loss in its full-year EBIT earnings for 2026; it would be the first operating loss the carrier has booked in 10 years. The top end of the profit guidance was set at $1 billion, $2.5 billion less than last year’s result. “The pace and extent of scrapping will influence whether the company reaches the upper or lower end of its financial guidance for the year,” Maersk CEO Vincent Clerc said on last week’s earnings call, noting that an increase in scrapping would likely be triggered by a wider industry return to the Suez. Alphaliner took a similar view and is anticipating a rally of recycling in the second half of 2026, but only if the Suez route is once again widely used. Should Cape of Good Hope diversions continue through the year — along with the expected healthy cargo volumes, a moderate amount of newbuilding deliveries and a persistently tight supply of chartered tonnage – trading conditions could be good enough for ship owners to mostly stay clear of the recycling scene. “The rebound in scrapping would then be deferred to 2027 and 2028 when the colossal amount of newbuilding deliveries expected to hit the water during these two years will force a streamlining of the fleet,” Alphaliner noted. Over-ordering ‘a hard-wired habit’ Drewry’s five-year forecast includes a material increase in scrapping and is based on market conditions and nearly 1.5 million TEUs of the global fleet being at least 25 years old. Still, the consultancy warned that excess capacity would remain. “Over-ordering and limited demolitions have become consistent features of the industry over the past 15 or so years,” Drewry wrote in its container insight. “Therefore, one might question if this is a hard-wired habit that carriers will not be able to shake. Consolidation and bigger alliances were supposed to bring about more control, but there is little evidence of it to date.” Ocean carriers are already aggressively managing capacity through blank sailings and slow steaming, but Drewry said if scrapping levels did not increase soon, carriers would have to consider a further reduction in speed. “Spending billions on new hardware, only to then operate them significantly below design speed seems an inefficient waste,” Drewry said. “It would be better to tackle the problem at source and start removing vintage ships at scale.” Container shipping on the major east-west trades is now firmly in a buyers’ market, but Drewry warned shippers not to get too comfortable with that position. “While carrier behavior is notoriously difficult to predict, we have to assume that lines will not sit back idly and allow the market to drift against them without a fight,” the consultant noted. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Container Shipping News

Maritime

Scrapping strategy looms large in 2026 as carriers manage growing oversupply

<div class="phx-topic abstract-wrapper">The fourth-largest US domestic intermodal provider has received additional funding and now must focus on meeting revenue and expenditure targets through the second quarter.</div>

The fourth-largest US domestic intermodal provider has received additional funding and now must focus on meeting revenue and expenditure targets through the second quarter.

<div class="phx-topic">STG Logistics has received $40 million in new funding and another reserve fund of $25 million after a deal was reached between lenders ahead of a key hearing before a New Jersey bankruptcy court. The deal agreed to on Tuesday results in a temporary truce between two lenders who sued STG Logistics in a New York court and a group of lenders who provided the rescue funds when <a href="https://www.joc.com/article/stg-files-ch-11-bankruptcy-but-intermodal-operations-remain-intact-6150641">the bankruptcy was filed on Jan. 12</a>. STG operates a thriving transloading and drayage business and is also the fourth-largest US domestic intermodal provider with 15,000 privately-owned containers. The agreement allows Axos Financial and Siemens Financial Solutions to proceed as a sub-case within the bankruptcy case in exchange for withdrawing an objection to the rescue funding. If a deal had not been struck, then the bankruptcy judge would have ruled on the objection Tuesday. The final order authorizes STG to pay drivers, warehouse workers, and railroads, among others. STG owed Union Pacific Railroad $13.4 million in back payments, significantly more than the $1.2 million owed to CSX Transportation. In exchange for receiving payment, the railroads cannot change credit terms with STG or increase rates or fees while it remains in Chapter 11 bankruptcy. <h3>Default triggers </h3>Hurdles remain in STG’s efforts to emerge from bankruptcy restructuring. The original bankruptcy filing included a 13-week budget outlining projected revenue from operations and expenses. If STG spends more than 115% of the budgeted expenses, fails to book at least 80% of the estimated revenue, or falls below $50 million in cash on hand, then it will be considered in default. A default doesn’t automatically mean operations would cease, but it gives the lenders the right to stop the cash flow entirely. STG did not fall below the 80% threshold after the recent winter storm briefly disrupted operations on UP and CSX, according to a source close to the bankruptcy hearing. Next month, there will be a window known as a “sale toggle” in which the lenders could decide to sell the company to an outside bidder, who then would decide how to manage STG’s operations. The sale toggle is a standard practice in Chapter 11 bankruptcy allowing the bankrupt company to explore other offers. Finally, the Axos-Siemens case isn’t resolved, just shifted to a sub-case. The bankruptcy judge must still rule before STG emerges from bankruptcy. If the judge rules in favor of Axos and Siemens, the group of rescue lenders could pull their financial support. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

STG Logistics has received $40 million in new funding and another reserve fund of $25 million after a deal was reached between lenders ahead of a key hearing before a New Jersey bankruptcy court. The deal agreed to on Tuesday results in a temporary truce between two lenders who sued STG Logistics in a New York court and a group of lenders who provided the rescue funds when the bankruptcy was filed on Jan. 12 . STG operates a thriving transloading and drayage business and is also the fourth-largest US domestic intermodal provider with 15,000 privately-owned containers. The agreement allows Axos Financial and Siemens Financial Solutions to proceed as a sub-case within the bankruptcy case in exchange for withdrawing an objection to the rescue funding. If a deal had not been struck, then the bankruptcy judge would have ruled on the objection Tuesday. The final order authorizes STG to pay drivers, warehouse workers, and railroads, among others. STG owed Union Pacific Railroad $13.4 million in back payments, significantly more than the $1.2 million owed to CSX Transportation. In exchange for receiving payment, the railroads cannot change credit terms with STG or increase rates or fees while it remains in Chapter 11 bankruptcy. Default triggers Hurdles remain in STG’s efforts to emerge from bankruptcy restructuring. The original bankruptcy filing included a 13-week budget outlining projected revenue from operations and expenses. If STG spends more than 115% of the budgeted expenses, fails to book at least 80% of the estimated revenue, or falls below $50 million in cash on hand, then it will be considered in default. A default doesn’t automatically mean operations would cease, but it gives the lenders the right to stop the cash flow entirely. STG did not fall below the 80% threshold after the recent winter storm briefly disrupted operations on UP and CSX, according to a source close to the bankruptcy hearing. Next month, there will be a window known as a “sale toggle” in which the lenders could decide to sell the company to an outside bidder, who then would decide how to manage STG’s operations. The sale toggle is a standard practice in Chapter 11 bankruptcy allowing the bankrupt company to explore other offers. Finally, the Axos-Siemens case isn’t resolved, just shifted to a sub-case. The bankruptcy judge must still rule before STG emerges from bankruptcy. If the judge rules in favor of Axos and Siemens, the group of rescue lenders could pull their financial support. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Intermodal providers

STG Logistics survives key bankruptcy hurdle to remain in business

<div class="phx-topic abstract-wrapper">La Caisse, a major infrastructure fund and co-investor with DP World, said it wants clarity from the ports operator about Sultan Ahmed Bin Sulayem’s relationship with the convicted sex trafficker after messages between the two men became public this week.</div>

La Caisse, a major infrastructure fund and co-investor with DP World, said it wants clarity from the ports operator about Sultan Ahmed Bin Sulayem’s relationship with the convicted sex trafficker after messages between the two men became public this week.

<div class="phx-topic">A Quebec-based pension fund has put future investments with DP World on hold until the ports operator clarifies the relationship its chief executive had with deceased sex offender Jeffrey Epstein. The pause could slow development of Canada’s next big container terminal. La Caisse, which has C$496 billion in assets under management, said in a statement to the Journal of Commerce Wednesday it is waiting to hear from DP World about what steps it is taking in regards to its Chairman and Chief Executive Sultan Ahmed Bin Sulayem after messages between him and Epstein were released by US Congressional representatives this week as part of a probe into Epstein’s ties to rich and powerful men across the globe. Some of <a href="https://www.ft.com/content/c813601e-e8cb-4eb9-b1de-6ca504bb689f">the messages between Sulayem and Epstein</a> were sexual in nature. La Caisse, which has invested in DP World port projects across the world, said that until it hears from DP World, it is “pausing additional capital deployment alongside the company.” “It is important to distinguish the company, DP World, from the individual, who is the focus of the current situation,” La Caisse said. “On that point, we have made it clear to the company that we expect it to shed light on the situation and take the necessary actions.” According to local media, La Caisse had been slated to provide over C$100 million toward the development of Quebec’s Contrecoeur terminal, which is estimated to cost about C$1.6 billion and <a href="https://www.joc.com/article/dp-world-to-build-big-ship-container-terminal-in-montreal-6077326">would be operated by DP World</a>. La Caisse said no final decision on financing Contrecoeur has been made. In 2020, DP World and La Caisse acquired the Fraser Surrey terminal at the Port of Vancouver. That was followed by La Caisse investing up to $5 billion in 2022 in DP World’s Jebel Ali port in Dubai, along with a nearby free trade zone and industrial park. Montreal Port Authority (MPA) Chief Executive Julie Gascon said in a statement to the Journal of Commerce that it’s not yet clear whether La Caisse’s pause would affect Contrecoeur’s expected 2030 opening date. The MPA, which is responsible for <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">the separate government-backed financing of dredging and other below-water work at the site</a>, is also waiting to hear from DP World about how it will respond to La Caisse. Gascon said, however, that development of Contrecoeur is a national priority for Prime Minister Mark Carney, <a href="https://www.joc.com/article/canada-looks-for-new-container-gateways-for-decoupling-from-us-6122714">who is looking to grow Canada’s non-US international trade</a>. Contrecoeur will be needed to serve the country’s eastern half as the Port of Montreal will likely be at capacity by the next decade. “My concern is that as soon as we start signing more services, then we’re full,” Gascon said. “So, I can’t come in late with Contrecoeur. It’s 2026, and it’s going to be delivered in 2030, so we need to be on time.” <h3>DP World expanded in US </h3>Dubai-based DP World, the fourth-largest ports operator globally by volume, is Canada’s largest terminal company, operating the Fraser Surrey, Centerm and Nanaimo facilities in Vancouver; the Prince Rupert terminal, and the Port of Saint John container terminal. In the US, DP World has a limited presence in non-marine logistics. Last year, it acquired Unique Logistics International, a North Carolina-based contract logistics provider, and bought Michigan-based warehousing and logistics operator Syncreon in 2021. But DP World is also looking to expand in the US, with the company reported to be one of the potential suitors for the Maher terminal at the Port of New York and New Jersey. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.  </div>

A Quebec-based pension fund has put future investments with DP World on hold until the ports operator clarifies the relationship its chief executive had with deceased sex offender Jeffrey Epstein. The pause could slow development of Canada’s next big container terminal. La Caisse, which has C$496 billion in assets under management, said in a statement to the Journal of Commerce Wednesday it is waiting to hear from DP World about what steps it is taking in regards to its Chairman and Chief Executive Sultan Ahmed Bin Sulayem after messages between him and Epstein were released by US Congressional representatives this week as part of a probe into Epstein’s ties to rich and powerful men across the globe. Some of the messages between Sulayem and Epstein were sexual in nature. La Caisse, which has invested in DP World port projects across the world, said that until it hears from DP World, it is “pausing additional capital deployment alongside the company.” “It is important to distinguish the company, DP World, from the individual, who is the focus of the current situation,” La Caisse said. “On that point, we have made it clear to the company that we expect it to shed light on the situation and take the necessary actions.” According to local media, La Caisse had been slated to provide over C$100 million toward the development of Quebec’s Contrecoeur terminal, which is estimated to cost about C$1.6 billion and would be operated by DP World . La Caisse said no final decision on financing Contrecoeur has been made. In 2020, DP World and La Caisse acquired the Fraser Surrey terminal at the Port of Vancouver. That was followed by La Caisse investing up to $5 billion in 2022 in DP World’s Jebel Ali port in Dubai, along with a nearby free trade zone and industrial park. Montreal Port Authority (MPA) Chief Executive Julie Gascon said in a statement to the Journal of Commerce that it’s not yet clear whether La Caisse’s pause would affect Contrecoeur’s expected 2030 opening date. The MPA, which is responsible for the separate government-backed financing of dredging and other below-water work at the site , is also waiting to hear from DP World about how it will respond to La Caisse. Gascon said, however, that development of Contrecoeur is a national priority for Prime Minister Mark Carney, who is looking to grow Canada’s non-US international trade . Contrecoeur will be needed to serve the country’s eastern half as the Port of Montreal will likely be at capacity by the next decade. “My concern is that as soon as we start signing more services, then we’re full,” Gascon said. “So, I can’t come in late with Contrecoeur. It’s 2026, and it’s going to be delivered in 2030, so we need to be on time.” DP World expanded in US Dubai-based DP World, the fourth-largest ports operator globally by volume, is Canada’s largest terminal company, operating the Fraser Surrey, Centerm and Nanaimo facilities in Vancouver; the Prince Rupert terminal, and the Port of Saint John container terminal. In the US, DP World has a limited presence in non-marine logistics. Last year, it acquired Unique Logistics International, a North Carolina-based contract logistics provider, and bought Michigan-based warehousing and logistics operator Syncreon in 2021. But DP World is also looking to expand in the US, with the company reported to be one of the potential suitors for the Maher terminal at the Port of New York and New Jersey. Contact Michael Angell at michael.angell@spglobal.com . 

Port News

North American ports

International ports

DP World’s financial partner hits pause over CEO’s ties to Epstein

<div class="phx-topic abstract-wrapper">Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows the East Container Terminal to handle 3 million TEUs annually at full speed. </div>

Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows the East Container Terminal to handle 3 million TEUs annually at full speed.

<div class="phx-topic">Sri Lanka is moving swiftly to fend off the threat of <a href="https://www.joc.com/article/carriers-revalue-colombo-transshipment-calls-amid-congestion-indian-hub-push-5192152">alternative hub development efforts by India</a> as ocean carriers increasingly seek berthing window flexibility for transshipment calls in a volatile operating environment. The Sri Lanka Ports Authority (SLPA)-operated East Container Terminal (ECT) in Colombo Port has opened a third berth to business, extending its total quay length to 1,300 meters. Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows ECT to handle 3 million TEUs annually at full speed. SLPA in a statement said the upgrades strengthen Colombo’s position as a primary transshipment hub for services linking the Indian subcontinent, the Bay of Bengal and major east-west trade lanes. “The addition of the third berth is expected to ease congestion, distribute vessel calls more efficiently across terminals and reinforce Colombo’s reputation for dependable, high-volume container handling,” SLPA said. The port authority projects a quick three-fold increase in container volumes through the expanded terminal, from 500,000 TEUs in 2025 to 1.5 million TEUs by the end of this year. That capacity expansion complements the recent launch of Phase I operations by the Colombo West Container Terminal (CWCT), a project led by India’s Adani Group. With multiple ongoing expansions, including Phase 2 development at CWCT that has a late-2026 completion timeline, Colombo’s combined capacity is estimated to reach 12 million TEUs over the next year. The port handled 8.3 million TEUs in 2025, up 6% year over year, industry data shows. <h3>Transshipment competition from India </h3>Transshipment trade out of the subcontinent region is no longer a given for Colombo after India opened the Vizhinjam terminal, also managed by Adani, a year ago. Thanks to cargo relay activity by Mediterranean Shipping Co., Vizhinjam's Phase 1 capacity of 1 million TEUs is already saturated, with 2025 volumes hitting 1.2 million TEUs — making it the fastest-growing port in India by capacity utilization. Stronger-than-expected demand has prompted Vizhinjam to fast-track the implementation of projects deemed necessary for longer-term market ambitions. The new hub now aims to put 5.7 million TEUs of capacity in operation by 2028–29, some 17 years ahead of the original development schedule. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Sri Lanka is moving swiftly to fend off the threat of alternative hub development efforts by India as ocean carriers increasingly seek berthing window flexibility for transshipment calls in a volatile operating environment. The Sri Lanka Ports Authority (SLPA)-operated East Container Terminal (ECT) in Colombo Port has opened a third berth to business, extending its total quay length to 1,300 meters. Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows ECT to handle 3 million TEUs annually at full speed. SLPA in a statement said the upgrades strengthen Colombo’s position as a primary transshipment hub for services linking the Indian subcontinent, the Bay of Bengal and major east-west trade lanes. “The addition of the third berth is expected to ease congestion, distribute vessel calls more efficiently across terminals and reinforce Colombo’s reputation for dependable, high-volume container handling,” SLPA said. The port authority projects a quick three-fold increase in container volumes through the expanded terminal, from 500,000 TEUs in 2025 to 1.5 million TEUs by the end of this year. That capacity expansion complements the recent launch of Phase I operations by the Colombo West Container Terminal (CWCT), a project led by India’s Adani Group. With multiple ongoing expansions, including Phase 2 development at CWCT that has a late-2026 completion timeline, Colombo’s combined capacity is estimated to reach 12 million TEUs over the next year. The port handled 8.3 million TEUs in 2025, up 6% year over year, industry data shows. Transshipment competition from India Transshipment trade out of the subcontinent region is no longer a given for Colombo after India opened the Vizhinjam terminal, also managed by Adani, a year ago. Thanks to cargo relay activity by Mediterranean Shipping Co., Vizhinjam's Phase 1 capacity of 1 million TEUs is already saturated, with 2025 volumes hitting 1.2 million TEUs — making it the fastest-growing port in India by capacity utilization. Stronger-than-expected demand has prompted Vizhinjam to fast-track the implementation of projects deemed necessary for longer-term market ambitions. The new hub now aims to put 5.7 million TEUs of capacity in operation by 2028–29, some 17 years ahead of the original development schedule. Contact Bency Mathew at bencyvmathew@gmail.com .

Port infrastructure

Marine terminals

Colombo expands box capacity as regional hub competition intensifies 

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