<div class="phx-topic abstract-wrapper">After 13 months of contentious negotiations that spawned numerous job actions by dockworkers, the ILWU and waterfront employers will engage in a ratification process expected to take several months.</div>

After 13 months of contentious negotiations that spawned numerous job actions by dockworkers, the ILWU and waterfront employers will engage in a ratification process expected to take several months.

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<div>The tentative West Coast longshore labor agreement that was reached late Wednesday will initiate a lengthy — but normal — process in which officers of the International Longshore and Warehouse Union (ILWU) and waterfront employers over the next few months will explain details of the six-year contract to their respective membership and urge ratification of the agreement. Based on past contracts negotiations, ILWU locals and local employers will finalize so-called side contracts for their regions that do not require approval at the coast level. The ILWU will then schedule a caucus with officers of the locals to go over details...

The tentative West Coast longshore labor agreement that was reached late Wednesday will initiate a lengthy — but normal — process in which officers of the International Longshore and Warehouse Union (ILWU) and waterfront employers over the next few months will explain details of the six-year contract to their respective membership and urge ratification of the agreement. Based on past contracts negotiations, ILWU locals and local employers will finalize so-called side contracts for their regions that do not require approval at the coast level. The ILWU will then schedule a caucus with officers of the locals to go over details of the coastwide agreement, after which the local officers will hold meetings in their regions to discuss the agreement with their membership. Finally, a date will be set for a coastwide vote by the ILWU membership. The Pacific Maritime Association (PMA), which has 70 members representing shipping lines and terminal operators, will also discuss and take a ratification vote on the agreement. In past contract years, the entire process took about three months to complete, which means the ratification process this year may run into the early fall. Still, Ed DeNike, president of SSA Containers, the largest terminal operator on the West Coast, said he is “almost 100% certain” the ILWU and PMA will ratify the contract. DeNike told the annual meeting of the Agriculture Transportation Coalition (AgTC) Thursday in Tacoma that the 13 months of negotiations were “hard,” and neither side feels particularly good about the tentative deal. But both sides felt pressure to reach an agreement this week to prevent the negotiations from completely unraveling, he said. “When [the negotiating process] is over with, you have a sinking feeling that you screwed up,” DeNike said. “When both sides feel that way, it’s actually good.” SSA operates three container terminals in Seattle, three in Long Beach, and Oakland’s largest terminal. Job actions by ILWU locals should be over The tentative contract, which was reached late Wednesday with the assistance of US Labor Secretary nominee Julie Su, is expected to put an end to the on-again, off-again work disruptions by ILWU locals that began last fall and affected all major ports along the West Coast to one degree or another. Those labor tactics included failing to dispatch sufficient numbers of workers, the late dispatching of workers and operating cranes far below normal productivity levels. Three sources told the Journal of Commerce that operations in Seattle-Tacoma, Oakland and Los Angeles-Long Beach went smoothly during the Wednesday night shift and were proceeding normally during Thursday’s day shift. DeNike, though, expressed concern that the large volumes of discretionary cargo that retailers have diverted to East and Gulf coast ports this past year will not return quickly enough, or at a magnitude necessary to cover the increased labor costs in the new contract. He noted that SSA accounts for about 25% of total ILWU worker-hours paid on the West Coast, adding SSA’s cargo volumes so far this year are down about 60% in Seattle, 30% in Oakland and 25% in Long Beach. “This contract that we just agreed to yesterday is going to increase that cost,” DeNike said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com and follow him on Twitter: @billmongelluzzo .

Container lines

North American ports

Marine terminals

Container Shipping News

Longshore labor

Tentative West Coast longshore deal triggers lengthy ratification process

<div class="phx-topic abstract-wrapper">The Bank of Canada says the country’s maritime trade connectivity has dropped severely in the last decade just as the country looks to shift its international trade away from the US. </div>

The Bank of Canada says the country’s maritime trade connectivity has dropped severely in the last decade just as the country looks to shift its international trade away from the US.

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<div class="phx-topic">Canada’s ports are less connected globally than a decade ago, exposing the country’s shippers to more supply chain risk, its central bank says. The warning comes as the country pivots its trade relations away from the US amid plans to invest billions in its ports. The Bank of Canada (BOC), in a research report published last week, showed that the country’s five largest ports have seen major declines in their connections to other global ports since 2016. The researchers used satellite data of container ship and car carrier transits to measure the number of unique destinations. That connectivity measure dropped 74% between 2016 and 2023, indicating “Canadian ports became relatively less central in global shipping networks compared with what they once were,” the BOC’s researchers said. “Global maritime shipping networks have been reshaped in ways that have reduced Canada’s relative connectivity and carrying capacity,” the bank said. “This less-central role for the country could mean greater exposure to supply chain disruptions that could increase the cost of doing business.” The report was released as BOC Governor Tiff Macklem testified before a Canadian Senate banking committee last Wednesday. He said the country needs to invest more in its transportation infrastructure, citing the ability of Southern California ports to handle much larger vessels than those calling Canada. The Bank of Canada researchers said some of the country’s declining port connectivity may stem from fewer, larger container ships than those measured in 2016. More of those larger ships, though, head to US West Coast ports, with imports into Canada having to absorb the extra cost of surface transportation from Southern California. “Many imports coming on larger ships from southeast Asia, for example, must first travel to and be processed through the Port of Los Angeles before being shipped to Canada by train or truck,” the BOC report said. The Port of Vancouver only sees about half or fewer of the large container ships on the trans-Pacific than the Southern California ports, according to data from Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. In the last 12 months, ships over 11,000 TEUs in capacity made 410 calls to the Port of Los Angeles and 308 calls to Long Beach, Sea-web data shows. Vancouver saw 143 such calls over the same time. <h3>Multiple projects planned </h3><a href="https://www.joc.com/article/canada-looks-for-new-container-gateways-for-decoupling-from-us-6122714">Canada’s government wants to reduce that dependency on Southern California ports</a>, along with the US overall as a trading partner. Prime Minister Mark Carney has pledged some C$5 billion in federal funding for trade infrastructure projects, including ports. The biggest pieces of that will be the Contrecoeur marine terminal at the Port of Montreal, which has <a href="https://www.joc.com/article/dp-world-to-build-big-ship-container-terminal-in-montreal-6077326">started initial work on the C$1.6 billion project</a>. Quebec may become home to another marine terminal after local operator <a href="https://www.joc.com/article/customs-designation-triggers-qsl-terminal-project-in-quebec-city-6209525">QSL received preliminary approval</a> from Canada’s customs agency for receiving international freight at the proposed site at Quebec City. DP World Canada has also unveiled <a href="https://www.joc.com/article/canadas-port-of-saint-john-ready-for-larger-ships-more-containers-6152491">a new ultra-large container ship berth</a> at its Port Saint John terminal. On the country’s West Coast, the Vancouver Fraser Port Authority and Global Container Terminals have pledged to work together on <a href="https://www.joc.com/article/gct-vancouver-port-to-jointly-study-roberts-bank-terminal-project-6207642">studying development of the proposed 2.4 million-TEU Roberts Bank marine terminal</a>. Outside of infrastructure, Canada also wants to turn the tide on the <a href="https://www.joc.com/article/bc-montreal-ports-set-to-reopen-under-orders-from-canadas-labor-chief-5792214">longshore labor disruption that has plagued its ports</a>. Canada’s parliament <a href="https://www.joc.com/article/canadian-review-of-labor-laws-linked-to-hoped-for-longshore-peace-us-diversification-6211387">could take up negotiations in the coming weeks</a> on how to reform the country’s labor laws. Changes to those laws could come ahead of the 2027 expiration of the longshore labor contract at Vancouver. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Canada’s ports are less connected globally than a decade ago, exposing the country’s shippers to more supply chain risk, its central bank says. The warning comes as the country pivots its trade relations away from the US amid plans to invest billions in its ports. The Bank of Canada (BOC), in a research report published last week, showed that the country’s five largest ports have seen major declines in their connections to other global ports since 2016. The researchers used satellite data of container ship and car carrier transits to measure the number of unique destinations. That connectivity measure dropped 74% between 2016 and 2023, indicating “Canadian ports became relatively less central in global shipping networks compared with what they once were,” the BOC’s researchers said. “Global maritime shipping networks have been reshaped in ways that have reduced Canada’s relative connectivity and carrying capacity,” the bank said. “This less-central role for the country could mean greater exposure to supply chain disruptions that could increase the cost of doing business.” The report was released as BOC Governor Tiff Macklem testified before a Canadian Senate banking committee last Wednesday. He said the country needs to invest more in its transportation infrastructure, citing the ability of Southern California ports to handle much larger vessels than those calling Canada. The Bank of Canada researchers said some of the country’s declining port connectivity may stem from fewer, larger container ships than those measured in 2016. More of those larger ships, though, head to US West Coast ports, with imports into Canada having to absorb the extra cost of surface transportation from Southern California. “Many imports coming on larger ships from southeast Asia, for example, must first travel to and be processed through the Port of Los Angeles before being shipped to Canada by train or truck,” the BOC report said. The Port of Vancouver only sees about half or fewer of the large container ships on the trans-Pacific than the Southern California ports, according to data from Sea-web, a sister product of the Journal of Commerce within S&P Global. In the last 12 months, ships over 11,000 TEUs in capacity made 410 calls to the Port of Los Angeles and 308 calls to Long Beach, Sea-web data shows. Vancouver saw 143 such calls over the same time. Multiple projects planned Canada’s government wants to reduce that dependency on Southern California ports , along with the US overall as a trading partner. Prime Minister Mark Carney has pledged some C$5 billion in federal funding for trade infrastructure projects, including ports. The biggest pieces of that will be the Contrecoeur marine terminal at the Port of Montreal, which has started initial work on the C$1.6 billion project . Quebec may become home to another marine terminal after local operator QSL received preliminary approval from Canada’s customs agency for receiving international freight at the proposed site at Quebec City. DP World Canada has also unveiled a new ultra-large container ship berth at its Port Saint John terminal. On the country’s West Coast, the Vancouver Fraser Port Authority and Global Container Terminals have pledged to work together on studying development of the proposed 2.4 million-TEU Roberts Bank marine terminal . Outside of infrastructure, Canada also wants to turn the tide on the longshore labor disruption that has plagued its ports . Canada’s parliament could take up negotiations in the coming weeks on how to reform the country’s labor laws. Changes to those laws could come ahead of the 2027 expiration of the longshore labor contract at Vancouver. Contact Michael Angell at michael.angell@spglobal.com .

Port News

Trans-Pacific

Port infrastructure

Maritime

Eroding connections expose Canada’s ports, shippers: central bank

<div class="phx-topic abstract-wrapper">Taiwan’s number two carrier has been involved in three service launches this year, with plans to add 22 container ships to its fleet between now and early 2030. </div>

Taiwan’s number two carrier has been involved in three service launches this year, with plans to add 22 container ships to its fleet between now and early 2030.

<div class="phx-topic">Yang Ming Marine Transport will develop and strengthen new and existing sources of cargo and improve slot utilization and schedule reliability to offset trade risks facing the container shipping market, Taiwan’s second-largest carrier said Wednesday. “Geopolitical risks and evolving trade policies remain major sources of uncertainty,” the carrier said in a commentary accompanying the release of its first-quarter results, which saw declines in net profits and revenue. On developing its cargo base, the carrier has been involved in three service launches this year, with plans to add 22 container ships to its fleet between now and early 2030. The new loops comprise the inauguration of a Premier Alliance combined Far East-Latin America pendulum and Vietnam shuttle express service on April 28; its own China-Singapore-Malaysia (CMS) service using three 2,800-TEU vessels; and a slot charter agreement on the PS8/AP2 trans-Pacific service jointly operated by Ocean Network Express and Wan Hai Lines. Yang Ming said it will take delivery of three additional 15,600-TEU LNG-fueled ships this year following delivery of the first two ships in February. While delivery of new vessels is likely to outpace cargo demand growth this year, “persistent rerouting of vessels” to avoid the Middle East war zone will absorb surplus capacity and “effectively alleviate supply-side pressures,” the carrier said. Yang Ming said Alphaliner has forecast demand growth at 2.5% this year compared with supply growth of 3.8%, “with approximately 1.61 million TEUs of new vessel capacity scheduled for delivery.” “In response to market uncertainties, Yang Ming continues to strengthen its business deployment and cost competitiveness to capitalize on the recovery of post-Labor Day [May 1] shipments and the upcoming peak season demand,” the carrier said. Yang Ming noted the International Monetary Fund has cut its global economic growth forecast to 3.1% this year, citing heightened geopolitical uncertainty and significant volatility in energy prices, according to the IMF’s latest World Economic Outlook published last month. Despite those worries, Yang Ming said the manufacturing sector in most major economies “continues to demonstrate resilience.” <h3>Q1 decline in net profits, revenues </h3>The carrier, meanwhile, saw a decline in freight rates in the first quarter, resulting in lower net profit and revenues. Yang Ming said its first-quarter net profit slumped 81% to $50 million, while revenue dropped 14% to $1.2 billion. The carrier derives almost 60% of its revenue from the Asia-Europe and US trans-Pacific trades. Separately, Wan Hai Lines, the third of Taiwan’s Big Three carriers, reported that its first-quarter net profit dropped 15% to $243 million, according to a filing to the Taiwan stock exchange Tuesday. Revenue fell 20% to $1 billion. Evergreen Marine, the largest of Taiwan’s carriers and ranked 7th-largest globally, will release its first-quarter profit and revenue figures Thursday. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Yang Ming Marine Transport will develop and strengthen new and existing sources of cargo and improve slot utilization and schedule reliability to offset trade risks facing the container shipping market, Taiwan’s second-largest carrier said Wednesday. “Geopolitical risks and evolving trade policies remain major sources of uncertainty,” the carrier said in a commentary accompanying the release of its first-quarter results, which saw declines in net profits and revenue. On developing its cargo base, the carrier has been involved in three service launches this year, with plans to add 22 container ships to its fleet between now and early 2030. The new loops comprise the inauguration of a Premier Alliance combined Far East-Latin America pendulum and Vietnam shuttle express service on April 28; its own China-Singapore-Malaysia (CMS) service using three 2,800-TEU vessels; and a slot charter agreement on the PS8/AP2 trans-Pacific service jointly operated by Ocean Network Express and Wan Hai Lines. Yang Ming said it will take delivery of three additional 15,600-TEU LNG-fueled ships this year following delivery of the first two ships in February. While delivery of new vessels is likely to outpace cargo demand growth this year, “persistent rerouting of vessels” to avoid the Middle East war zone will absorb surplus capacity and “effectively alleviate supply-side pressures,” the carrier said. Yang Ming said Alphaliner has forecast demand growth at 2.5% this year compared with supply growth of 3.8%, “with approximately 1.61 million TEUs of new vessel capacity scheduled for delivery.” “In response to market uncertainties, Yang Ming continues to strengthen its business deployment and cost competitiveness to capitalize on the recovery of post-Labor Day [May 1] shipments and the upcoming peak season demand,” the carrier said. Yang Ming noted the International Monetary Fund has cut its global economic growth forecast to 3.1% this year, citing heightened geopolitical uncertainty and significant volatility in energy prices, according to the IMF’s latest World Economic Outlook published last month. Despite those worries, Yang Ming said the manufacturing sector in most major economies “continues to demonstrate resilience.” Q1 decline in net profits, revenues The carrier, meanwhile, saw a decline in freight rates in the first quarter, resulting in lower net profit and revenues. Yang Ming said its first-quarter net profit slumped 81% to $50 million, while revenue dropped 14% to $1.2 billion. The carrier derives almost 60% of its revenue from the Asia-Europe and US trans-Pacific trades. Separately, Wan Hai Lines, the third of Taiwan’s Big Three carriers, reported that its first-quarter net profit dropped 15% to $243 million, according to a filing to the Taiwan stock exchange Tuesday. Revenue fell 20% to $1 billion. Evergreen Marine, the largest of Taiwan’s carriers and ranked 7th-largest globally, will release its first-quarter profit and revenue figures Thursday. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

Yang Ming to develop cargo base to offset trade, geopolitical uncertainties

<div class="phx-topic abstract-wrapper">Weather-related port congestion in January and February caused higher terminal storage costs while the war in the Middle East raised operating expenses late in the quarter.</div>

Weather-related port congestion in January and February caused higher terminal storage costs while the war in the Middle East raised operating expenses late in the quarter.

<div class="phx-topic">Hapag-Lloyd recorded a $300 million loss in the first quarter as severe winter weather on both sides of the Atlantic, rising energy costs and sharply declining rates dragged down the carrier’s earnings. It was “an unsatisfactory start to the year,” Hapag-Lloyd CEO Rolf Habben Jansen told reporters during a results briefing Wednesday. “We had adverse weather conditions in north and south Europe in January and February, and similar conditions on the East Coast of the US, and we are heavily exposed to those markets,” he said. Although bunker prices fell in the first quarter because of the time lag between purchase and consumption, higher terminal storage costs stacked up from weather-related port congestion in January and February, with Middle East-related disruptions adding to March operating costs. Hapag-Lloyd’s first-quarter volume was down 0.7% at 3.2 million TEUs, while average freight rates fell 10% year over year to $1,330 per TEU. The weak performance in the liner shipping segment dragged Hapag’s revenue down 7.5% to $4.9 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 54% to $500 million and earnings before interest and taxes were down 60% at $200 million. The $300 million net loss was down from a $500 million profit in the first quarter of 2025. War in the Middle East drove up energy prices from the end of February. Habben Jansen said the carrier was bunkering 100,000 tons of fuel a week, which was adding $50 million to $60 million to its weekly bills. “The situation in the Middle East caused significant extra cost from March, which we hope to recover through surcharges in the second quarter,” the CEO said. “A significant increase in bunker cost is expected in Q2 which will be covered by our emergency fuel surcharge and the regular marine fuel recovery mechanism.” <h3>Recovering rising bunker costs </h3>Half of the carrier’s volume is under contract where surcharges enable rising fuel costs to be fully recovered. On the spot market, Habben Jansen said rising rates through the peak season will factor in the bunker costs. “Looking at the sheer magnitude of the additional costs that we face, I think in most cases we have sensible discussions with customers, and that can be that we either come up with an emergency additional charge, or in some cases we move from a quarterly adjustment in the bunker formula to a monthly adjustment,” he said. While volume was flat compared with the first quarter of last year, the carrier was seeing solid market demand into May and beyond, and Habben Jansen said the industry was on track for a “decent” peak season. “We don’t see any real softening in demand for cargo at this point,” he said. “When we look at forward bookings, when we look at futures markets, when we talk to customers, there is an expectation that we will have a pretty decent peak season.” That’s not a view necessarily shared by the National Retail Federation, <a href="https://www.joc.com/article/weak-consumer-confidence-rising-inflation-dim-peak-season-hopes-6217405">which indicated on Friday</a> that peak season for US imports will be less than impressive due to weak consumer confidence, rising inflation and retailers hesitant to launch any meaningful restocking given a hazy economic outlook. <h3>HMM’s Q1 earnings also fall </h3>Meanwhile, South Korea carrier HMM also reported a sharp drop in first-quarter earnings as falling rates and rising costs from the Middle East war weighed on its results. Revenue fell 4.8% year over year to $1.8 million, operating profit declined 56% to $181 million and first-quarter net profit of $237 million was down 52%, HMM said in a statement Wednesday. The carrier warned of growing market uncertainty driven by increasing vessel capacity from a bloated order book, rising costs associated with the Middle East war, and US tariff policies. “HMM will implement fuel cost optimization strategies to mitigate the impact of prolonged high oil prices,” the carrier noted. “HMM also plans to launch new routes to markets like Africa by adopting a hub-and-spoke strategy, while securing new demand in regions such as Southeast Asia.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd recorded a $300 million loss in the first quarter as severe winter weather on both sides of the Atlantic, rising energy costs and sharply declining rates dragged down the carrier’s earnings. It was “an unsatisfactory start to the year,” Hapag-Lloyd CEO Rolf Habben Jansen told reporters during a results briefing Wednesday. “We had adverse weather conditions in north and south Europe in January and February, and similar conditions on the East Coast of the US, and we are heavily exposed to those markets,” he said. Although bunker prices fell in the first quarter because of the time lag between purchase and consumption, higher terminal storage costs stacked up from weather-related port congestion in January and February, with Middle East-related disruptions adding to March operating costs. Hapag-Lloyd’s first-quarter volume was down 0.7% at 3.2 million TEUs, while average freight rates fell 10% year over year to $1,330 per TEU. The weak performance in the liner shipping segment dragged Hapag’s revenue down 7.5% to $4.9 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 54% to $500 million and earnings before interest and taxes were down 60% at $200 million. The $300 million net loss was down from a $500 million profit in the first quarter of 2025. War in the Middle East drove up energy prices from the end of February. Habben Jansen said the carrier was bunkering 100,000 tons of fuel a week, which was adding $50 million to $60 million to its weekly bills. “The situation in the Middle East caused significant extra cost from March, which we hope to recover through surcharges in the second quarter,” the CEO said. “A significant increase in bunker cost is expected in Q2 which will be covered by our emergency fuel surcharge and the regular marine fuel recovery mechanism.” Recovering rising bunker costs Half of the carrier’s volume is under contract where surcharges enable rising fuel costs to be fully recovered. On the spot market, Habben Jansen said rising rates through the peak season will factor in the bunker costs. “Looking at the sheer magnitude of the additional costs that we face, I think in most cases we have sensible discussions with customers, and that can be that we either come up with an emergency additional charge, or in some cases we move from a quarterly adjustment in the bunker formula to a monthly adjustment,” he said. While volume was flat compared with the first quarter of last year, the carrier was seeing solid market demand into May and beyond, and Habben Jansen said the industry was on track for a “decent” peak season. “We don’t see any real softening in demand for cargo at this point,” he said. “When we look at forward bookings, when we look at futures markets, when we talk to customers, there is an expectation that we will have a pretty decent peak season.” That’s not a view necessarily shared by the National Retail Federation, which indicated on Friday that peak season for US imports will be less than impressive due to weak consumer confidence, rising inflation and retailers hesitant to launch any meaningful restocking given a hazy economic outlook. HMM’s Q1 earnings also fall Meanwhile, South Korea carrier HMM also reported a sharp drop in first-quarter earnings as falling rates and rising costs from the Middle East war weighed on its results. Revenue fell 4.8% year over year to $1.8 million, operating profit declined 56% to $181 million and first-quarter net profit of $237 million was down 52%, HMM said in a statement Wednesday. The carrier warned of growing market uncertainty driven by increasing vessel capacity from a bloated order book, rising costs associated with the Middle East war, and US tariff policies. “HMM will implement fuel cost optimization strategies to mitigate the impact of prolonged high oil prices,” the carrier noted. “HMM also plans to launch new routes to markets like Africa by adopting a hub-and-spoke strategy, while securing new demand in regions such as Southeast Asia.” Contact Greg Knowler at greg.knowler@spglobal.com .

Hapag-Lloyd posts Q1 net loss in ‘unsatisfactory’ start to 2026

<div class="phx-topic abstract-wrapper">If current market conditions continue, analyst Larry Gross believes there will be fresh gains in domestic intermodal share. </div>

If current market conditions continue, analyst Larry Gross believes there will be fresh gains in domestic intermodal share.

<div class="phx-topic">Last month, <a href="https://www.joc.com/article/tailwinds-for-us-intermodal-volume-growth-strengthening-analyst-6206045">I wrote about</a> the gathering tailwinds for domestic intermodal. With truck rates rising under the pressure of tighter driver supply and skyrocketing diesel prices, the intermodal alternative should become more attractive. When they arrived, the March numbers from the Intermodal Association of North America (IANA) confirmed the story. Domestic intermodal across North America was up 8.4% from the prior year, and for loads originating and terminating within the US, the gain was even stronger at 9.3%. This led me to ask another question — will we finally see an upturn in domestic intermodal market share? Looking at those numbers, the answer for the moment appears to be: not yet. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6219923_0.1.jpg"></img></div>My market share calculations have changed a bit this year, because the source of the truck data is new. The truck numbers are now being provided by the highly respected commercial vehicle and transportation market analytical powerhouse ACT Research. US dry-van and reefer loads are compiled monthly by mileage range. The lowest relevant mileage range is 301 to 600 miles. This raises a question: Which truck mileage range should we use to compute intermodal market share — 301 miles and more, or 600 miles and more? The decision has a huge effect on the share calculation, because, according to ACT, almost half of the dry-van and reefer truckloads that are moving distances of over 300 miles lie in that short-haul 301-600-mile range. For long-haul intermodal, the percentage is much lower, with significantly less than 10% of domestic intermodal activity moving 600 miles or less. Neither approach is perfect. Using the 300-mile cutoff has a dramatic downward effect on intermodal market share, while comparing all domestic intermodal with the 601-plus mile market artificially boosts intermodal market share by a bit. Rather than making the choice, the chart included here presents the data both ways. After all, we are far more interested in the trend, i.e. whether the number is rising or falling, than the actual number, which is only an estimate with a pretty decent margin of error. While the numbers are slightly different from my previous calculations, the message is relatively unchanged: domestic intermodal share is down from previous levels. Using the 601-plus-mile figures, share, which averaged 6.5% in 2013, averaged 5.7% over the 12-month period ending in March 2026. Further, it did not change much in 2025. However, these revised numbers do show that a modest gain occurred in 2023 and 2024 versus the trough in 2022, at least when the 601-plus-mile truck numbers are used for the comparison. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fe43f201-73c6-4a49-a33e-7b3a3a655f43"></dynamic-object></div>Where to from here? I believe that if current conditions continue, then we will see domestic intermodal market share gains. It may simply be too soon to see it in the data. Supply chains, while more agile than they used to be, still don’t turn on a dime. The intermodal growth baton is being handed off from international to domestic. With international loads flagging, the domestic improvement will come just in time. Then the industry will face an operational test, and we will see if lessons have been learned. Ample supplies of domestic containers and chassis remain available to handle higher volumes. Will the railroads be able to cope with increased activity without deterioration in intermodal service levels? In my experience, the four most dangerous words in forecasting are: “this time it’s different.” History says that when volume increases, the railroads lack the surge capacity required and have a tough time catching up. The railroads say that won’t happen this time. On this, I am optimistic, but still very cautious. I don’t think it will take very long to see where things are headed. Larry Gross is president and founder of Gross Transportation Consulting. Contact him at <a href="mailto:lawrencejgross@gmail.com">lawrencejgross@gmail.com</a>. </div>

Last month, I wrote about the gathering tailwinds for domestic intermodal. With truck rates rising under the pressure of tighter driver supply and skyrocketing diesel prices, the intermodal alternative should become more attractive. When they arrived, the March numbers from the Intermodal Association of North America (IANA) confirmed the story. Domestic intermodal across North America was up 8.4% from the prior year, and for loads originating and terminating within the US, the gain was even stronger at 9.3%. This led me to ask another question — will we finally see an upturn in domestic intermodal market share? Looking at those numbers, the answer for the moment appears to be: not yet. My market share calculations have changed a bit this year, because the source of the truck data is new. The truck numbers are now being provided by the highly respected commercial vehicle and transportation market analytical powerhouse ACT Research. US dry-van and reefer loads are compiled monthly by mileage range. The lowest relevant mileage range is 301 to 600 miles. This raises a question: Which truck mileage range should we use to compute intermodal market share — 301 miles and more, or 600 miles and more? The decision has a huge effect on the share calculation, because, according to ACT, almost half of the dry-van and reefer truckloads that are moving distances of over 300 miles lie in that short-haul 301-600-mile range. For long-haul intermodal, the percentage is much lower, with significantly less than 10% of domestic intermodal activity moving 600 miles or less. Neither approach is perfect. Using the 300-mile cutoff has a dramatic downward effect on intermodal market share, while comparing all domestic intermodal with the 601-plus mile market artificially boosts intermodal market share by a bit. Rather than making the choice, the chart included here presents the data both ways. After all, we are far more interested in the trend, i.e. whether the number is rising or falling, than the actual number, which is only an estimate with a pretty decent margin of error. While the numbers are slightly different from my previous calculations, the message is relatively unchanged: domestic intermodal share is down from previous levels. Using the 601-plus-mile figures, share, which averaged 6.5% in 2013, averaged 5.7% over the 12-month period ending in March 2026. Further, it did not change much in 2025. However, these revised numbers do show that a modest gain occurred in 2023 and 2024 versus the trough in 2022, at least when the 601-plus-mile truck numbers are used for the comparison. Where to from here? I believe that if current conditions continue, then we will see domestic intermodal market share gains. It may simply be too soon to see it in the data. Supply chains, while more agile than they used to be, still don’t turn on a dime. The intermodal growth baton is being handed off from international to domestic. With international loads flagging, the domestic improvement will come just in time. Then the industry will face an operational test, and we will see if lessons have been learned. Ample supplies of domestic containers and chassis remain available to handle higher volumes. Will the railroads be able to cope with increased activity without deterioration in intermodal service levels? In my experience, the four most dangerous words in forecasting are: “this time it’s different.” History says that when volume increases, the railroads lack the surge capacity required and have a tough time catching up. The railroads say that won’t happen this time. On this, I am optimistic, but still very cautious. I don’t think it will take very long to see where things are headed. Larry Gross is president and founder of Gross Transportation Consulting. Contact him at lawrencejgross@gmail.com .

Trucking News

Rail News

Surface

Domestic intermodal share improvement remains elusive, for now

<div class="phx-topic abstract-wrapper">The carrier is increasing capacity in response to growth in Indian imports from China and other Asian production markets in recent years, propelled by input sourcing to support rapid industrial development.</div>

The carrier is increasing capacity in response to growth in Indian imports from China and other Asian production markets in recent years, propelled by input sourcing to support rapid industrial development.

<div class="phx-topic">Maersk is restarting an intra-Asia service that was suspended in late 2020 as part of widespread network shakeups in the aftermath of the pandemic. The standalone FI2 service connecting key ports in China, Malaysia, India and Pakistan is set to return to the trade lane in early June, complementing the FI3 that the Danish carrier still operates in a revamped format. Six ships in the 3,400-TEU to 4,500-TEU range will be deployed on the FI2 to provide a weekly rotation, calling at Shanghai, Ningbo, Nansha, Tanjung Pelepas, Nhava Sheva, Pipavav and Port Qasim (Karachi). The first sailing from Shanghai is planned for June 4. “Designed to strengthen network coverage and offer greater flexibility, the FI2 service provides enhanced connectivity from Southern and Central China to key, fast-growing markets in Northwest India and Pakistan,” Maersk said in a customer advisory. The FI3 has stops at Qingdao, Xingang, Busan, Tanjung Pelepas, Nhava Sheva, Pipavav, Mundra and Karachi. Maersk is increasing capacity in response to growth in Indian imports from China and other Asian production markets in recent years, propelled by input sourcing to support rapid industrial development. Indian imports from China by value were up 16% year over year in the 2025–26 fiscal year that ended in March, according to official data. Logistics industry executives view China-India trade as a fast-growing lane, estimating double-digit growth in volumes over the past year. They expect the boom to accelerate as multinational manufacturers pursuing a China-plus-one strategy add more production lines in India. Japanese automaker Toyota has announced plans to set up a new sports utility vehicle (SUV) manufacturing plant in the western Indian state of Maharashtra, its fourth in the country. <h3>Middle East chokepoints shift focus to intra-Asia </h3>Ashish Sheth, chairman and managing director of Sarjak Container Lines, believes Persian Gulf chokepoints such as the Strait of Hormuz and Red Sea have refueled the strategic importance of intra-Asia trades for India. “China-India container trade continues to show strong structural growth in 2026, driven by electronics, machinery, chemicals and manufacturing inputs,” Sheth told the Journal of Commerce. Cargo booking rates from China to India have risen in recent months, with average mainline Shanghai-Nhava Sheva rates now at $1,300 to $1,400 per FEU, industry data indicates. Most mainliners have already positioned themselves alongside niche intra-Asia operators to capture fresh demand gains. In late 2025, CMA CGM began a regional loop linking Thailand, Vietnam and Malaysia to Chennai in southeast India with extended reach for western India and Pakistan via feeder connectivity. Ocean Network Express and HMM have also cemented their intra-Asia presence out of India through vessel-sharing or slot partnerships. Chinese-backed CU Lines seems to be another emerging capacity participant on the trade lane, rivaling the predominant regional carriers such as Wan Hai Lines, Cosco Shipping, Pacific International Lines, Evergreen, Yang Ming and Interasia Lines. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Maersk is restarting an intra-Asia service that was suspended in late 2020 as part of widespread network shakeups in the aftermath of the pandemic. The standalone FI2 service connecting key ports in China, Malaysia, India and Pakistan is set to return to the trade lane in early June, complementing the FI3 that the Danish carrier still operates in a revamped format. Six ships in the 3,400-TEU to 4,500-TEU range will be deployed on the FI2 to provide a weekly rotation, calling at Shanghai, Ningbo, Nansha, Tanjung Pelepas, Nhava Sheva, Pipavav and Port Qasim (Karachi). The first sailing from Shanghai is planned for June 4. “Designed to strengthen network coverage and offer greater flexibility, the FI2 service provides enhanced connectivity from Southern and Central China to key, fast-growing markets in Northwest India and Pakistan,” Maersk said in a customer advisory. The FI3 has stops at Qingdao, Xingang, Busan, Tanjung Pelepas, Nhava Sheva, Pipavav, Mundra and Karachi. Maersk is increasing capacity in response to growth in Indian imports from China and other Asian production markets in recent years, propelled by input sourcing to support rapid industrial development. Indian imports from China by value were up 16% year over year in the 2025–26 fiscal year that ended in March, according to official data. Logistics industry executives view China-India trade as a fast-growing lane, estimating double-digit growth in volumes over the past year. They expect the boom to accelerate as multinational manufacturers pursuing a China-plus-one strategy add more production lines in India. Japanese automaker Toyota has announced plans to set up a new sports utility vehicle (SUV) manufacturing plant in the western Indian state of Maharashtra, its fourth in the country. Middle East chokepoints shift focus to intra-Asia Ashish Sheth, chairman and managing director of Sarjak Container Lines, believes Persian Gulf chokepoints such as the Strait of Hormuz and Red Sea have refueled the strategic importance of intra-Asia trades for India. “China-India container trade continues to show strong structural growth in 2026, driven by electronics, machinery, chemicals and manufacturing inputs,” Sheth told the Journal of Commerce. Cargo booking rates from China to India have risen in recent months, with average mainline Shanghai-Nhava Sheva rates now at $1,300 to $1,400 per FEU, industry data indicates. Most mainliners have already positioned themselves alongside niche intra-Asia operators to capture fresh demand gains. In late 2025, CMA CGM began a regional loop linking Thailand, Vietnam and Malaysia to Chennai in southeast India with extended reach for western India and Pakistan via feeder connectivity. Ocean Network Express and HMM have also cemented their intra-Asia presence out of India through vessel-sharing or slot partnerships. Chinese-backed CU Lines seems to be another emerging capacity participant on the trade lane, rivaling the predominant regional carriers such as Wan Hai Lines, Cosco Shipping, Pacific International Lines, Evergreen, Yang Ming and Interasia Lines. Contact Bency Mathew at bencyvmathew@gmail.com .

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Maersk joins race to target burgeoning China-India trade with capacity boost

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