<div class="phx-topic abstract-wrapper">TISSUE PAPER GIANTS CLEARED FOR MERGERThe European Union's competition authority has cleared</div>

TISSUE PAPER GIANTS CLEARED FOR MERGERThe European Union's competition authority has cleared

<div>TISSUE PAPER GIANTSCLEARED FOR MERGERThe European Union's competition authority has cleared the way for Kimberley Clark and Scott Paper of the United States to press ahead with their planned merger, but only for operations outside of Europe.The companies want to create the biggest supplier of tissue paper products in the world.In the European Economic Area, which comprises the 15 countries of the EU plus Norway, Switzerland and Liechtenstein, the two must keep their business separate.The two companies had offered to sell off certain operations to meet concerns that they might dominate markets in Britain and Ireland.SOUTH KOREA TO PERMITPRIVATE POWER...

TISSUE PAPER GIANTS CLEARED FOR MERGERThe European Union's competition authority has cleared the way for Kimberley Clark and Scott Paper of the United States to press ahead with their planned merger, but only for operations outside of Europe. The companies want to create the biggest supplier of tissue paper products in the world. In the European Economic Area, which comprises the 15 countries of the EU plus Norway, Switzerland and Liechtenstein, the two must keep their business separate. The two companies had offered to sell off certain operations to meet concerns that they might dominate markets in Britain and Ireland. SOUTH KOREA TO PERMIT PRIVATE POWER GENERATION SEOUL - South Korea's trade ministry said it will allow private companies to enter the power-generation business and sell electricity to state-run Korea Electric Power Corp. Under the decision, made by a ministry committee on long-term power requirements, Kepco will invite private companies to bid for the construction of two 400 megawatt-class combined-cycle power plants fired by liquefied natural gas, and another two 500 MW-class coal thermal power plants before the end of this year. According to the ministry's plan, the LNG-fired plants will be built in 2001 and 2002 at about $307 million per unit. The coal plants, meanwhile, will be built in 2003 and 2004 for about $770 million each. JAPAN APPOINTS PANEL TO REVIEW FARM LAW TOKYO - Japan's farm ministry has launched a private advisory panel to review the country's basic agricultural law. The group, made up of seven farm and legal scholars, will look at what should be revised in the law, according to the Japan International Agricultural Coucil. Parts of Japan's food industry, particularly its rice sector, are highly regulated, with pricing and licensing determined by government groups. The current food law was enacted in 1961. Given changes since then, including growing imports, pressure has built to revise the law. MAZDA AND FORD FORM THAILAND PICKUP VENTURE TOKYO - Mazda Motor Corp. and Ford Motor Co. said they have established a new joint venture small truck manufacturing company in Thailand. The company, Auto Alliance Thailand Co., will manufacture up to 135,000 compact pickup trucks beginning in mid-1998. Mazda and Ford will each hold a 45 percent equity in the company. Each also has a local partner. Ford chose KPN Group Corp., a Thai conglomerate involved in motorcycle and automotive component manufacturing. Mazda, meanwhile, has Sukosol and Mazda Co., a Thai company that distributes Mazdas in Thailand, as a partner. Each local partner holds a 5 percent equity in the new firm.

Maritime

TRADE BRIEFS

<div class="phx-topic abstract-wrapper">The spot and contract savings from domestic intermodal eroded in the second quarter compared with a year ago, while the fate of the third quarter depends largely on whether volume in Southern California keeps up to support peak season surcharges.</div>

The spot and contract savings from domestic intermodal eroded in the second quarter compared with a year ago, while the fate of the third quarter depends largely on whether volume in Southern California keeps up to support peak season surcharges.

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<div class="phx-topic">US shippers saved an average of 17% on spot market freight and nearly 24% on contract loads in the second quarter by using domestic intermodal instead of long-haul trucking with tepid pricing continuing through midyear, according to the latest Journal of Commerce <a href="https://www.joc.com/resources/special-reports/intermodal-savings-index">Intermodal Savings Index</a> (ISI). Intermodal contract rates were flat in the second quarter compared with a year ago — up less than 1% excluding fuel, but down less than 1% including fuel, while contract truckload rates rose between 0% and 2%. North American railroads hauled 2.12 million domestic containers in the second quarter, up 2.6% compared with a year ago, according to the Intermodal Association of North America (IANA). While the Journal of Commerce forecast calls for domestic intermodal volume to decline between 1% and 4% year over year in the third quarter, Schneider National and Hub Group said there was an uptick in demand in July. “Near-term demand trends off the West Coast are strong and we are seeing indications of an early West Coast peak season,” Hub Group CEO Phil Yeager said during an Aug. 1 earnings call. “It remains unclear how long elevated import demand will persist as we are seeing variances in forecasts by customers.” The Spot ISI averaged 117.1 in the second quarter, down from 121.9 one year ago. The Contract ISI slipped to 124.2 compared with 125.7 one year ago. Index values above 100 indicate intermodal is the more cost-effective mode. The higher the index number, the greater the savings. For example, a spot ISI of 117.1 translates to a 17.1% savings on intermodal versus truckload and a contract ISI of 124.2 implies a 24.2% savings. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="18f45e44-8027-488a-8afc-87771e60ca91"></dynamic-object></div>In terms of raw dollars, intermodal shippers saved an average of $659 per container on the spot market in the second quarter and $789 per container on the contract market. Both totals were lower than a year ago, when intermodal shippers saved $722 per container on the spot market and $938 per container on the contract market. Spot intermodal rates rose 2 cents between April and June to $1.58 per mile, while spot truckload rates rose 5 cents to $1.89 during the same period, according to the ISI. The results are seasonally normal as freight demand increases between Memorial Day and July 4th. Contract truckload rates rose 2 cents to $1.97 per mile between April and June, while contract intermodal rates also rose 2 cents to $1.49 per mile during the period. <h3>Q3 pricing </h3>While J.B. Hunt Transport Services, the largest US domestic intermodal provider, announced a <a href="https://www.joc.com/article/jb-hunt-says-surcharges-necessary-to-maintain-peak-season-service-6044880">$1,500 per container surcharge</a> last month in Southern California, the broader industry has followed with smaller hikes. Spot intermodal rates from Southern California to Atlanta, Chicago, Dallas, and Memphis have risen between $300 and $500 per container since June 1, according to the ISI, but those rate increases are consistent with prior peak seasons, which typically start in the third quarter. Last year, peak season surcharges began in mid-August, not July. Hub Group and Schneider National confirmed they’ve also put in peak season surcharges. Similar to last year, however, their surcharges are close to the broader spot rate increases, not J.B. Hunt’s higher figure. The surcharges cover how much Hub and Schneider pay to railroads and drivers to reposition empty boxes. “Our intent there is really to be able to manage our operations … and to make sure that one or a small number of customers don’t completely disrupt our network,” Jim Filter, executive vice president of Schneider, said during a July 31 earnings call. Hub Group added that while it has implemented some surcharges, it has not incorporated “significant” surcharges into its third-quarter earnings guidance. Intermodal providers must be careful about the surcharge total if there isn’t a simultaneous increase in truck rates. From Los Angeles to Dallas and Kansas City, intermodal saves about $700 to $900 per container. If surcharges are too high, shippers might tender freight back to trucking. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. The data behind the Contract ISI and Spot ISI is available to Journal of Commerce subscribers with a Gold-tier subscription. </div>

US shippers saved an average of 17% on spot market freight and nearly 24% on contract loads in the second quarter by using domestic intermodal instead of long-haul trucking with tepid pricing continuing through midyear, according to the latest Journal of Commerce Intermodal Savings Index (ISI). Intermodal contract rates were flat in the second quarter compared with a year ago — up less than 1% excluding fuel, but down less than 1% including fuel, while contract truckload rates rose between 0% and 2%. North American railroads hauled 2.12 million domestic containers in the second quarter, up 2.6% compared with a year ago, according to the Intermodal Association of North America (IANA). While the Journal of Commerce forecast calls for domestic intermodal volume to decline between 1% and 4% year over year in the third quarter, Schneider National and Hub Group said there was an uptick in demand in July. “Near-term demand trends off the West Coast are strong and we are seeing indications of an early West Coast peak season,” Hub Group CEO Phil Yeager said during an Aug. 1 earnings call. “It remains unclear how long elevated import demand will persist as we are seeing variances in forecasts by customers.” The Spot ISI averaged 117.1 in the second quarter, down from 121.9 one year ago. The Contract ISI slipped to 124.2 compared with 125.7 one year ago. Index values above 100 indicate intermodal is the more cost-effective mode. The higher the index number, the greater the savings. For example, a spot ISI of 117.1 translates to a 17.1% savings on intermodal versus truckload and a contract ISI of 124.2 implies a 24.2% savings. In terms of raw dollars, intermodal shippers saved an average of $659 per container on the spot market in the second quarter and $789 per container on the contract market. Both totals were lower than a year ago, when intermodal shippers saved $722 per container on the spot market and $938 per container on the contract market. Spot intermodal rates rose 2 cents between April and June to $1.58 per mile, while spot truckload rates rose 5 cents to $1.89 during the same period, according to the ISI. The results are seasonally normal as freight demand increases between Memorial Day and July 4th. Contract truckload rates rose 2 cents to $1.97 per mile between April and June, while contract intermodal rates also rose 2 cents to $1.49 per mile during the period. Q3 pricing While J.B. Hunt Transport Services, the largest US domestic intermodal provider, announced a $1,500 per container surcharge last month in Southern California, the broader industry has followed with smaller hikes. Spot intermodal rates from Southern California to Atlanta, Chicago, Dallas, and Memphis have risen between $300 and $500 per container since June 1, according to the ISI, but those rate increases are consistent with prior peak seasons, which typically start in the third quarter. Last year, peak season surcharges began in mid-August, not July. Hub Group and Schneider National confirmed they’ve also put in peak season surcharges. Similar to last year, however, their surcharges are close to the broader spot rate increases, not J.B. Hunt’s higher figure. The surcharges cover how much Hub and Schneider pay to railroads and drivers to reposition empty boxes. “Our intent there is really to be able to manage our operations … and to make sure that one or a small number of customers don’t completely disrupt our network,” Jim Filter, executive vice president of Schneider, said during a July 31 earnings call. Hub Group added that while it has implemented some surcharges, it has not incorporated “significant” surcharges into its third-quarter earnings guidance. Intermodal providers must be careful about the surcharge total if there isn’t a simultaneous increase in truck rates. From Los Angeles to Dallas and Kansas City, intermodal saves about $700 to $900 per container. If surcharges are too high, shippers might tender freight back to trucking. Contact Ari Ashe at ari.ashe@spglobal.com . The data behind the Contract ISI and Spot ISI is available to Journal of Commerce subscribers with a Gold-tier subscription.

Trucking News

Rail News

Truckload

North-American rail

Surface

Intermodal savings dipped in Q2; surcharges to factor into Q3 decisions

<div class="phx-topic abstract-wrapper">The reasons for the increase are largely tariff-related, sources say, as market participants adjust to the possibility of permanently higher tariff levels imposed by the Trump administration.</div>

The reasons for the increase are largely tariff-related, sources say, as market participants adjust to the possibility of permanently higher tariff levels imposed by the Trump administration.

<div class="phx-topic">Growing volumes of trans-Pacific eastbound spot cargo are being controlled at origin countries such as China as the impact of US tariffs bores deeply into shipping practices, sources tell the Journal of Commerce. The reasons for a noticeable increase in origin-controlled container trade are largely tariff-related, sources said, as parties to trade transactions adjust to possibly permanently higher tariff levels imposed by the Trump Administration. Origin-controlled cargo means the purchasing of ocean transportation is done by parties in exporting countries such as China, for example, rather than in the US. “At Toll Group, we are observing a slight upward trend in origin-controlled cargo,” said Marc Meier, Toll’s global head of ocean freight. “This trend appears to be influenced by factors such as the current supply and demand situation, where supply is notably higher than demand, as well as ongoing tariff discussions.” Meier said Toll’s origin-controlled cargo is now about 35% of its total cargo compared with 20% a few years ago. “We believe going forward, it might be 40-45%,” he said. Others see the trend also. “I have noticed a significant shift in the traditional mix of our smaller volume shippers where there is more Asia controlled/nominated shipments as a percent of our overall weekly bookings … this has been going on for the last five to six months,” said Kurt McElroy, executive vice president at the forwarder Kerry Apex. McElroy said the shift could be due to “smaller importers choosing to buy DDP [delivery duty paid] and leaving the duty uncertainty to the shipper.” “Volatile freight rates could also be a contributing factor in small importers’ decisions to have terms of sale [DDP or cost-insurance-freight], instead of typical [free-on-board] terms of sale,” he said. Under DDP terms, the seller bears all shipping and customs costs until it delivers the goods to the buyer, having cleared customs as the named place of destination. Another possible reason for growth in origin-controlled spot cargo is the growing ease of booking using online tools from carriers such as Maersk, Hapag Lloyd and CMA-CGM, who sources say are allocating greater amounts of their vessel space to online channels. McElroy said the volatile market could also be prompting large US retailers to seek DDP terms from their suppliers versus receiving such goods at origin and shipping them under their own contracts. “Big box retailers like Walmart, when ocean rates are not as volatile, will want to purchase FOB from their smaller suppliers and move under their own contract,” McElroy said. “Yet, when rates get volatile … on the upswing, and space tightens, along with duty uncertainty, Walmart will choose to have small suppliers ship to Walmart distribution centers CIF and not allow price increases. They have such leverage with smaller suppliers to accept these kind of terms.” <h3>Contract market shifting from US control? </h3> Few are seeing the contract market shift from US control, but some see it coming. “In the trans-Pacific trade, there has been a view that importers of goods into the USA were the major buyers of freight as they purchased goods from manufacturers in Asia FOB and controlled the import supply chain into the USA,” said Lian Hoon Lim, Singapore-based partner and managing director of Alix Partners, which has a long history in ocean freight. “So carriers naturally gave priority to marketing and selling freight to the ‘FOB buyer’ over the exporter in Asia who was labelled the ‘CIF buyer,’” he added. “Ten to 15 years ago that was very true for pretty much everything that came out of China, and that you could price up somewhat for FOB cargo vs. CIF.” But as Chinese companies emerge as sellers of goods under their own brand names, the ocean freight landscape will begin to change. “If you look at South Korea and Japan, as their exporting companies became big enough and more adventurous and spread their wings overseas, they established sales units in the US and Europe,” Lim said. “So instead of exporting their goods to third-party distributors, they sold to their own sales companies in the US and Europe. At that point the FOB vs. CIF issue becomes moot, because the control of the freight passes over to those companies and if their [headquarters] are in Japan or Korea or China, they are more likely to buy freight there versus at destination. “I can easily imagine that at some point in time, companies like Huawei saying we have a sales company in the US or Europe and that we should take control of long-distance shipments ourselves, and when that happens you can easily see the freight buying shifting from destination to origin,” Lim added. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

Growing volumes of trans-Pacific eastbound spot cargo are being controlled at origin countries such as China as the impact of US tariffs bores deeply into shipping practices, sources tell the Journal of Commerce. The reasons for a noticeable increase in origin-controlled container trade are largely tariff-related, sources said, as parties to trade transactions adjust to possibly permanently higher tariff levels imposed by the Trump Administration. Origin-controlled cargo means the purchasing of ocean transportation is done by parties in exporting countries such as China, for example, rather than in the US. “At Toll Group, we are observing a slight upward trend in origin-controlled cargo,” said Marc Meier, Toll’s global head of ocean freight. “This trend appears to be influenced by factors such as the current supply and demand situation, where supply is notably higher than demand, as well as ongoing tariff discussions.” Meier said Toll’s origin-controlled cargo is now about 35% of its total cargo compared with 20% a few years ago. “We believe going forward, it might be 40-45%,” he said. Others see the trend also. “I have noticed a significant shift in the traditional mix of our smaller volume shippers where there is more Asia controlled/nominated shipments as a percent of our overall weekly bookings … this has been going on for the last five to six months,” said Kurt McElroy, executive vice president at the forwarder Kerry Apex. McElroy said the shift could be due to “smaller importers choosing to buy DDP [delivery duty paid] and leaving the duty uncertainty to the shipper.” “Volatile freight rates could also be a contributing factor in small importers’ decisions to have terms of sale [DDP or cost-insurance-freight], instead of typical [free-on-board] terms of sale,” he said. Under DDP terms, the seller bears all shipping and customs costs until it delivers the goods to the buyer, having cleared customs as the named place of destination. Another possible reason for growth in origin-controlled spot cargo is the growing ease of booking using online tools from carriers such as Maersk, Hapag Lloyd and CMA-CGM, who sources say are allocating greater amounts of their vessel space to online channels. McElroy said the volatile market could also be prompting large US retailers to seek DDP terms from their suppliers versus receiving such goods at origin and shipping them under their own contracts. “Big box retailers like Walmart, when ocean rates are not as volatile, will want to purchase FOB from their smaller suppliers and move under their own contract,” McElroy said. “Yet, when rates get volatile … on the upswing, and space tightens, along with duty uncertainty, Walmart will choose to have small suppliers ship to Walmart distribution centers CIF and not allow price increases. They have such leverage with smaller suppliers to accept these kind of terms.” Contract market shifting from US control? Few are seeing the contract market shift from US control, but some see it coming. “In the trans-Pacific trade, there has been a view that importers of goods into the USA were the major buyers of freight as they purchased goods from manufacturers in Asia FOB and controlled the import supply chain into the USA,” said Lian Hoon Lim, Singapore-based partner and managing director of Alix Partners, which has a long history in ocean freight. “So carriers naturally gave priority to marketing and selling freight to the ‘FOB buyer’ over the exporter in Asia who was labelled the ‘CIF buyer,’” he added. “Ten to 15 years ago that was very true for pretty much everything that came out of China, and that you could price up somewhat for FOB cargo vs. CIF.” But as Chinese companies emerge as sellers of goods under their own brand names, the ocean freight landscape will begin to change. “If you look at South Korea and Japan, as their exporting companies became big enough and more adventurous and spread their wings overseas, they established sales units in the US and Europe,” Lim said. “So instead of exporting their goods to third-party distributors, they sold to their own sales companies in the US and Europe. At that point the FOB vs. CIF issue becomes moot, because the control of the freight passes over to those companies and if their [headquarters] are in Japan or Korea or China, they are more likely to buy freight there versus at destination. “I can easily imagine that at some point in time, companies like Huawei saying we have a sales company in the US or Europe and that we should take control of long-distance shipments ourselves, and when that happens you can easily see the freight buying shifting from destination to origin,” Lim added. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

Supply chain

Container Shipping News

Trans-Pacific

Tariff realities prompt growth in ‘origin-controlled’ cargo on trans-Pacific

<div class="phx-topic abstract-wrapper">The National Motor Freight Traffic Association will oversee development of a truckload scheduling initiative among the Scheduling Standards Consortium’s 17 existing members.</div>

The National Motor Freight Traffic Association will oversee development of a truckload scheduling initiative among the Scheduling Standards Consortium’s 17 existing members.

<div class="phx-topic">The National Motor Freight Traffic Association (NMFTA) has taken over management of a consortium of freight brokers and technology providers developing standards for truckload appointment scheduling. NMFTA, which is most known for developing rate classification standards for the less-than-truckload (LTL) industry, also operates a Digital Standards Development Council for the trucking industry. Within the full truckload portion of that initiative it will assume management of the Scheduling Standards Consortium (SSC), a group started in 2022 by J.B. Hunt, Uber Freight and the now-defunct freight broker Convoy to build a <a href="https://www.joc.com/article/major-us-freight-brokers-unveil-appointment-scheduling-standards-5217739">common appointment scheduling protocol</a> for truckload freight. “This new development will support NMFTA’s efforts to create standards that improve communication between carriers, shippers, technology providers and third-party logistics providers [3PLs] by creating and sharing application programming interfaces [APIs] for a fully digital logistics process,” the group said in a statement Tuesday. SSC was attempting to create a uniform appointment system for carriers and receiving facilities as opposed to each broker having a different process, with the idea that no broker was able to sell its differentiation in the market. <a href="https://www.joc.com/article/truckload-appointment-standards-group-adds-heavyweights-to-drive-adoption-5192857">Membership grew in 2023</a> when the consortium added three brokers and four transportation management system (TMS) providers. Visibility software vendor FourKites then <a href="https://www.joc.com/article/fourkites-integrates-with-truckload-scheduling-standards-initiative-5219328">adopted the SSC standards in mid-2024</a>. The group now has 17 members — 11 brokers and six technology providers. “The current SSC members are enthusiastic about this strategy and champions of our effort to ensure digital standards are developed,” Debbie Sparks, NMFTA’s executive director, said in the statement. <h3>Tech options grow </h3>Outside of the issue of scheduling standards, a number of individual SSC members have undergone substantial changes. Founding member <a href="https://www.joc.com/article/convoy-says-will-shut-operations-sell-off-technology-amid-market-downturn-5215523">Convoy went out of business</a> in the fall of 2023. Broker Coyote Logistics, which joined in mid-2023, was <a href="https://www.joc.com/article/rxo-purchase-of-coyote-logistics-highlights-us-brokerage-market-pressures-5192296">sold by UPS to RXO</a> in June 2024. E2open, which also joined in mid-2023, was <a href="https://www.joc.com/article/wisetech-notches-biggest-acquisition-with-21-billion-deal-for-e2open-6011581">acquired in May by WiseTech Global</a>. And while the SSC has been trying to drive adoption of scheduling standards among members while recruiting new ones, the category of truckload scheduling software has expanded. Companies such as Qued and Bigger Picture have built tools specific to appointment scheduling, while others, such as Vooma, HappyRobot and Drumkit provide automation geared toward scheduling, among other workflows. “Given NMFTA’s expertise and history in standards development, it was an easy choice to seamlessly transition,” Stuart Scott, chairman of the Digital FTL Council and executive vice president and chief information officer for J.B. Hunt, said in the statement. “J.B. Hunt and several other SSC council members are joining the Digital FTL Council to further our partnership and bring more digital standards to the logistics industry.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

The National Motor Freight Traffic Association (NMFTA) has taken over management of a consortium of freight brokers and technology providers developing standards for truckload appointment scheduling. NMFTA, which is most known for developing rate classification standards for the less-than-truckload (LTL) industry, also operates a Digital Standards Development Council for the trucking industry. Within the full truckload portion of that initiative it will assume management of the Scheduling Standards Consortium (SSC), a group started in 2022 by J.B. Hunt, Uber Freight and the now-defunct freight broker Convoy to build a common appointment scheduling protocol for truckload freight. “This new development will support NMFTA’s efforts to create standards that improve communication between carriers, shippers, technology providers and third-party logistics providers [3PLs] by creating and sharing application programming interfaces [APIs] for a fully digital logistics process,” the group said in a statement Tuesday. SSC was attempting to create a uniform appointment system for carriers and receiving facilities as opposed to each broker having a different process, with the idea that no broker was able to sell its differentiation in the market. Membership grew in 2023 when the consortium added three brokers and four transportation management system (TMS) providers. Visibility software vendor FourKites then adopted the SSC standards in mid-2024 . The group now has 17 members — 11 brokers and six technology providers. “The current SSC members are enthusiastic about this strategy and champions of our effort to ensure digital standards are developed,” Debbie Sparks, NMFTA’s executive director, said in the statement. Tech options grow Outside of the issue of scheduling standards, a number of individual SSC members have undergone substantial changes. Founding member Convoy went out of business in the fall of 2023. Broker Coyote Logistics, which joined in mid-2023, was sold by UPS to RXO in June 2024. E2open, which also joined in mid-2023, was acquired in May by WiseTech Global . And while the SSC has been trying to drive adoption of scheduling standards among members while recruiting new ones, the category of truckload scheduling software has expanded. Companies such as Qued and Bigger Picture have built tools specific to appointment scheduling, while others, such as Vooma, HappyRobot and Drumkit provide automation geared toward scheduling, among other workflows. “Given NMFTA’s expertise and history in standards development, it was an easy choice to seamlessly transition,” Stuart Scott, chairman of the Digital FTL Council and executive vice president and chief information officer for J.B. Hunt, said in the statement. “J.B. Hunt and several other SSC council members are joining the Digital FTL Council to further our partnership and bring more digital standards to the logistics industry.” Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Trucking standards group takes control of truckload scheduling consortium

<div class="phx-topic abstract-wrapper">Forwarders said space for bookings, especially to the more-demanding West Mediterranean market, has become acutely tight due to multiple blank calls in recent weeks.</div>

Forwarders said space for bookings, especially to the more-demanding West Mediterranean market, has become acutely tight due to multiple blank calls in recent weeks.

<div class="phx-topic">Indian shippers moving cargo to the Mediterranean are dealing with a persistent capacity strain from vessel schedule disruptions, sparking a doubling of container freight rates over the past month, freight forwarders say. Forwarders said space for bookings, especially to the more-demanding West Mediterranean market, has become acutely tight due to multiple blank calls in recent weeks. Short-term contract rates out of the ports of Nhava Sheva and Mundra to Genoa have climbed to between $1,900 and $2,000 per FEU from the $1,000 to $1,100 range seen in the first half of June, data obtained by the Journal of Commerce showed. Crimped ocean capacity has sent spot rates on the trade lane even higher. Sources put spot booking prices for Nhava Sheva-Genoa loads on sailings through August at between $3,000 and $3,100 per TEU and $2,600 and 2,800 per FEU, varying slightly from carrier to carrier. Additionally, certain carriers have tactically opened spot window bookings for early September sailings at about $3,400 per TEU, sources said. “Most available vessels for the West Mediterranean in August are already booked full,” a sales executive at a Mumbai-based forwarding company who didn’t want to be identified told the Journal of Commerce. “With the space crunch expected to linger for some time, rates could strengthen further.” Forwarders have already reported two blankings on the trade lane in August, including one upcoming skip from CMA CGM. Space availability is said to be relatively better off for the India-East Mediterranean trade, a market that has been a target of opportunistic regional/feeder lines offering direct Red Sea sailings. Indian containerized exports to the Mediterranean are mainly led by agricultural products and various machinery freight, with volumes in the first half of 2025 estimated at 332,500 TEUs. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Indian shippers moving cargo to the Mediterranean are dealing with a persistent capacity strain from vessel schedule disruptions, sparking a doubling of container freight rates over the past month, freight forwarders say. Forwarders said space for bookings, especially to the more-demanding West Mediterranean market, has become acutely tight due to multiple blank calls in recent weeks. Short-term contract rates out of the ports of Nhava Sheva and Mundra to Genoa have climbed to between $1,900 and $2,000 per FEU from the $1,000 to $1,100 range seen in the first half of June, data obtained by the Journal of Commerce showed. Crimped ocean capacity has sent spot rates on the trade lane even higher. Sources put spot booking prices for Nhava Sheva-Genoa loads on sailings through August at between $3,000 and $3,100 per TEU and $2,600 and 2,800 per FEU, varying slightly from carrier to carrier. Additionally, certain carriers have tactically opened spot window bookings for early September sailings at about $3,400 per TEU, sources said. “Most available vessels for the West Mediterranean in August are already booked full,” a sales executive at a Mumbai-based forwarding company who didn’t want to be identified told the Journal of Commerce. “With the space crunch expected to linger for some time, rates could strengthen further.” Forwarders have already reported two blankings on the trade lane in August, including one upcoming skip from CMA CGM. Space availability is said to be relatively better off for the India-East Mediterranean trade, a market that has been a target of opportunistic regional/feeder lines offering direct Red Sea sailings. Indian containerized exports to the Mediterranean are mainly led by agricultural products and various machinery freight, with volumes in the first half of 2025 estimated at 332,500 TEUs. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

Forwarding

Asia-Europe

India-Med rates race higher as blank sailings continue to tighten capacity

<div class="phx-topic abstract-wrapper">Vietnam’s largest conglomerate said the complex will be developed in three phases between 2026 and 2040 and include a container terminal with at least six berths. </div>

Vietnam’s largest conglomerate said the complex will be developed in three phases between 2026 and 2040 and include a container terminal with at least six berths.

<div class="phx-topic">Vingroup, Vietnam’s largest conglomerate, will start work next year on a $14 billion port and logistics center in Haiphong that will form the core of a new development area in the country’s northern port gateway, the group said. The Nam Do Son harbor and commercial facility will cover approximately 11,000 acres in Haiphong’s new southern coastal economic zone, plans for which were unveiled by the city government last year. Vingroup said its port and industrial complex will be developed in three phases between 2026 and 2040. It will include a container terminal with at least six berths, according to digital renderings of the project. Vingroup, whose interests include electric vehicle manufacturing, real estate development and healthcare, said phase one of the project, to be developed between 2026 and 2030, will cost $1.1 billion. Phase two between 2031 and 2035 will cost $7.9 billion, while the final phase from 2036 to 2040 will cost $5.3 billion. Details were disclosed in a brief two-page statement Vingroup filed to the Ho Chi Minh stock exchange and the state securities commission this week. Vingroup executives did not respond to requests for further comment. Vingroup said it would finance 15% of the total cost of the project from its own resources, with the remaining 85% coming from other sources, including financial institutions and other investors. Analysts said the port is likely to be built as part of the project’s first phase, providing shipment capacity for Vingroup’s trade activities that include the manufacturing of its VinFast Auto electric vehicles in Haiphong. VinFast also operates a fleet of car carriers to ship vehicles to Southeast Asian markets. Analysts said the port would also provide additional container terminal capacity for Haiphong, which handled almost 6 million TEUs last year. Vingroup’s project comes as Haiphong’s port administration is further developing its Lach Huyen container port. In May, CMA CGM signed a $600 million deal with Saigon Newport Corporation (SNP) to develop terminals 7 and 8 at Lach Huyen, which will have a combined capacity of 1.9 million TEUs when operational in 2028. And Hai Phong Port TIL International Terminal Company, an affiliate of Mediterranean Shipping Co., in April inaugurated terminals 3 and 4 at Lach Huyen, with a capacity of about 2 million TEUs. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Vingroup, Vietnam’s largest conglomerate, will start work next year on a $14 billion port and logistics center in Haiphong that will form the core of a new development area in the country’s northern port gateway, the group said. The Nam Do Son harbor and commercial facility will cover approximately 11,000 acres in Haiphong’s new southern coastal economic zone, plans for which were unveiled by the city government last year. Vingroup said its port and industrial complex will be developed in three phases between 2026 and 2040. It will include a container terminal with at least six berths, according to digital renderings of the project. Vingroup, whose interests include electric vehicle manufacturing, real estate development and healthcare, said phase one of the project, to be developed between 2026 and 2030, will cost $1.1 billion. Phase two between 2031 and 2035 will cost $7.9 billion, while the final phase from 2036 to 2040 will cost $5.3 billion. Details were disclosed in a brief two-page statement Vingroup filed to the Ho Chi Minh stock exchange and the state securities commission this week. Vingroup executives did not respond to requests for further comment. Vingroup said it would finance 15% of the total cost of the project from its own resources, with the remaining 85% coming from other sources, including financial institutions and other investors. Analysts said the port is likely to be built as part of the project’s first phase, providing shipment capacity for Vingroup’s trade activities that include the manufacturing of its VinFast Auto electric vehicles in Haiphong. VinFast also operates a fleet of car carriers to ship vehicles to Southeast Asian markets. Analysts said the port would also provide additional container terminal capacity for Haiphong, which handled almost 6 million TEUs last year. Vingroup’s project comes as Haiphong’s port administration is further developing its Lach Huyen container port. In May, CMA CGM signed a $600 million deal with Saigon Newport Corporation (SNP) to develop terminals 7 and 8 at Lach Huyen, which will have a combined capacity of 1.9 million TEUs when operational in 2028. And Hai Phong Port TIL International Terminal Company, an affiliate of Mediterranean Shipping Co., in April inaugurated terminals 3 and 4 at Lach Huyen, with a capacity of about 2 million TEUs. Contact Keith Wallis at keithwallis@hotmail.com .

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Vingroup to start building $14 billion Haiphong port, logistics hub next year

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. 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