<div class="phx-topic abstract-wrapper"><p>With international rail volume down by double-digit percentages in 2023, chassis providers have an opportunity to reflect on the struggles of 2021 and 2022 and adjust their networks ahead of the next surge.</p></div>

With international rail volume down by double-digit percentages in 2023, chassis providers have an opportunity to reflect on the struggles of 2021 and 2022 and adjust their networks ahead of the next surge.

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<div><p>Marine chassis providers in the United States say shippers are returning equipment more promptly, easing the pressure on capacity and allowing lessors to evaluate how to better handle the next volume spike. </p><p>Chassis providers believe there are lessons to be learned from the pandemic-induced surge in volume and resulting equipment shortages, including obtaining more forecast data, holding more equipment in reserve to flex up capacity when necessary and watching certain inland cities where equipment shortages were common in 2021 and 2022 more closely. </p><p>“We have an opportunity to take a deep breath, to take a step back to recalibrate where...

Marine chassis providers in the United States say shippers are returning equipment more promptly, easing the pressure on capacity and allowing lessors to evaluate how to better handle the next volume spike. Chassis providers believe there are lessons to be learned from the pandemic-induced surge in volume and resulting equipment shortages, including obtaining more forecast data, holding more equipment in reserve to flex up capacity when necessary and watching certain inland cities where equipment shortages were common in 2021 and 2022 more closely. “We have an opportunity to take a deep breath, to take a step back to recalibrate where we positioned our chassis and examine how we realign them, so that we have the right amount of fleet in the right markets to meet our customers’ needs,” Val Noel, COO of TRAC Intermodal, told the Journal of Commerce. International intermodal rail volume, a primary feeder of inland marine chassis demand, began to fall in 2022 and has continued to decline this year. Trains in North America moved 2.4 million ocean containers in the first four months of 2023, down 12.7% year over year, according to the Intermodal Association of North America. As a result, street dwells for US chassis have fallen to between six and eight days through April, down from eight to 10 days in the same four-month period in 2022, according to data from TRAC and DCLI. Both chassis lessors said street dwells are on par with 2020 levels in some cities but remain at 2021 levels in other markets. “Container volumes have generally returned to pre-pandemic levels, and street dwell has declined significantly, creating surplus chassis inventory across our entire network,” Mike O’Malley, senior vice president of government and public relations for DCLI, told the Journal of Commerce. “DCLI continues to invest in our fleet with refurbished chassis, radial conversions and hard-wire lights to meet future customer demand. We have also expanded our footprint in key markets and enhanced our ability to relocate chassis to where they are most needed.” Better data is the key The three largest US marine chassis lessors — TRAC, DCLI and Flexi-Van Leasing — emphasized the potential benefits of the US Department of Transportation’s Freight Logistics Optimization Works (FLOW) program , an information-sharing initiative aimed at improving supply chain efficiency. Flexi-Van COO Than Seeds said he hopes FLOW will give chassis lessors access to enough data to “better anticipate the next shock” and take a proactive — rather than reactive — approach to congestion and fleet management. Ocean carriers already share data with the major chassis lessors and railroads, but the lead times are much shorter than what the FLOW program can offer. Those shorter lead times create logistical challenges for chassis providers, who depend on truckers to reposition chassis between cities. Often, higher volume in ports and rail terminals corresponds to heightened demand for trucking, making it more challenging to procure capacity. DCLI said that having volume forecasts up to 90 days in advance, as proposed by FLOW, will make it easier to reposition chassis to ports and rail hubs ahead of time, rather than scrambling after the cargo has already arrived. Noel said better forecasts could have helped chassis providers avoid unexpected shortages in Omaha, Neb.; Kansas City and St. Louis, Mo. ; Houston; and several Ohio cities in 2021 and 2022. “From an [international intermodal] perspective, these are some of the markets where we have to be laser-focused going forward because they gave us the most challenges during the pandemic,” Noel said. Creating a buffer All three equipment providers said they are reevaluating their prior strategies around carrying excess chassis in case container volumes spike suddenly. Like many shippers prior to the pandemic, chassis providers generally do not want too much inventory at any given time. But like shippers that suffered the consequences of just-in-time inventory strategies in the form of stockouts and lost sales, lessors are embracing a just-in-case fleet model. DCLI said it is taking a “market-by-market” approach and building a “reserve fleet” in regions where flexibility is important. TRAC said it will focus on increasing its reserve fleet in cities where railroads pre-mount containers onto chassis at the terminal before a driver arrives to pick them up, known as “wheeled” operations. BNSF Railway, CSX Transportation and Union Pacific Railroad operate wheeled terminals across several major US markets. Wheeled terminals in Chicago and Dallas suffered some of the worst congestion and chassis shortages in 2021 and 2022. “In a wheeled environment, having enough fleet on-site in a volume upswing is critical just to keep fluidity going,” Noel said. “In a grounded environment, it's important, but it doesn't bring the entire supply chain to a halt like it can in a wheeled environment.” Contact Ari Ashe at ari.ashe@spglobal.com and follow him on Twitter: @arijashe .

Drayage

US chassis lessors learning from pandemic surge as demand wanes

<div class="phx-topic abstract-wrapper"><p>With inflation increasing, consumer confidence declining and unemployment on the rise, US imports from Asia are not expected to see the typical pre-Lunar New Year surge in January and February.</p></div>

With inflation increasing, consumer confidence declining and unemployment on the rise, US imports from Asia are not expected to see the typical pre-Lunar New Year surge in January and February.

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<div class="phx-topic"><p><i>The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook.</i> </p><p><b>The big picture:</b> Container gateways on the US West Coast in 2025 were able to hold onto market share gained in 2024 as importers frontloading seasonal merchandise from Asia due to tariff uncertainties took advantage of transit times that are at least two weeks shorter than East Coast routings. West Coast gateways remained relatively free from congestion throughout the year, and those conditions are likely to continue given the weak import volumes forecasted for the first quarter of 2026. </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6144851_0.1.jpg"></img></div><p><b>A look back:</b> Like the wider trans-Pacific market, US West Coast ports benefited from tariff-related frontloading in the first half of 2025, but that growth turned to double-digit percentage declines in the fall. Amid the roller-coaster demand movements, the ports of Los Angeles, Long Beach, Oakland and the Northwest Seaport Alliance of Seattle and Tacoma handled 59.2% of US imports from Asia through November, exactly the same share as in the first 11 months of 2024, according to PIERS, a <i>Journal of Commerce</i> sister product within S&amp;P Global.  </p><p>To handle the somewhat volatile swings in volumes — a record 1.2 million TEUs of laden imports crossed West Coast terminal docks in July, for example — port stakeholders continued to incorporate the lessons they learned during the COVID-19 pandemic. Improved shipment forecasts and information sharing among carriers, marine terminals, truckers, chassis providers, railroads and warehouses resulted in lower truck turn and container dwell times at the marine terminals and fluid operations at warehouses and inland rail terminals. </p><p><b>A look ahead:</b> Cargo volumes at West Coast ports in 2026 will likely be impacted by macroeconomic forces in the US. With inflation increasing, consumer confidence declining and unemployment on the rise, US imports from Asia are not expected to see the typical pre-Lunar New Year surge in January and February. And unless some clarity and predictability in the Trump administration’s tariff policies are forthcoming, retailers are likely to be conservative in ordering spring and summer merchandise, extending year-over-year declines in West Coast imports through the first half of 2026.  </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="c328e2d6-c694-4af5-b0bb-86af8cec1ba4"></dynamic-object></div><p>Meanwhile, cargo owners, terminal operators and truckers in Southern California will be keeping a close eye on a lengthy bridge redecking project slated to begin in January. Located at the entry to Los Angeles harbor, the 63-year-old Vincent Thomas Bridge handles 53,000 vehicles a day, including about 3,400 heavy-duty trucks, according to the California Department of Transportation (Caltrans). Traffic disruptions are anticipated throughout the redecking project, which will require one-directional bridge closures through November followed by a full shutdown from November 2026 to March 2028. Although Caltrans has implemented an alternative route for truck and vehicular traffic and an information network with real-time updates on detours and delays, stakeholders remain concerned about roadway congestion potentially backing up to the terminals. </p><p><b>The next inflection:</b> If container lines return to the Suez Canal, East and Gulf coast ports could regain some of the market share they lost to the West Coast in the past two years. </p><p><i>Contact Bill Mongelluzzo at </i><a href="mailto:bill.mongelluzzo@spglobal.com"><i>bill.mongelluzzo@spglobal.com.</i></a></p></div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: Container gateways on the US West Coast in 2025 were able to hold onto market share gained in 2024 as importers frontloading seasonal merchandise from Asia due to tariff uncertainties took advantage of transit times that are at least two weeks shorter than East Coast routings. West Coast gateways remained relatively free from congestion throughout the year, and those conditions are likely to continue given the weak import volumes forecasted for the first quarter of 2026. A look back: Like the wider trans-Pacific market, US West Coast ports benefited from tariff-related frontloading in the first half of 2025, but that growth turned to double-digit percentage declines in the fall. Amid the roller-coaster demand movements, the ports of Los Angeles, Long Beach, Oakland and the Northwest Seaport Alliance of Seattle and Tacoma handled 59.2% of US imports from Asia through November, exactly the same share as in the first 11 months of 2024, according to PIERS, a Journal of Commerce sister product within S&P Global. To handle the somewhat volatile swings in volumes — a record 1.2 million TEUs of laden imports crossed West Coast terminal docks in July, for example — port stakeholders continued to incorporate the lessons they learned during the COVID-19 pandemic. Improved shipment forecasts and information sharing among carriers, marine terminals, truckers, chassis providers, railroads and warehouses resulted in lower truck turn and container dwell times at the marine terminals and fluid operations at warehouses and inland rail terminals. A look ahead: Cargo volumes at West Coast ports in 2026 will likely be impacted by macroeconomic forces in the US. With inflation increasing, consumer confidence declining and unemployment on the rise, US imports from Asia are not expected to see the typical pre-Lunar New Year surge in January and February. And unless some clarity and predictability in the Trump administration’s tariff policies are forthcoming, retailers are likely to be conservative in ordering spring and summer merchandise, extending year-over-year declines in West Coast imports through the first half of 2026. Meanwhile, cargo owners, terminal operators and truckers in Southern California will be keeping a close eye on a lengthy bridge redecking project slated to begin in January. Located at the entry to Los Angeles harbor, the 63-year-old Vincent Thomas Bridge handles 53,000 vehicles a day, including about 3,400 heavy-duty trucks, according to the California Department of Transportation (Caltrans). Traffic disruptions are anticipated throughout the redecking project, which will require one-directional bridge closures through November followed by a full shutdown from November 2026 to March 2028. Although Caltrans has implemented an alternative route for truck and vehicular traffic and an information network with real-time updates on detours and delays, stakeholders remain concerned about roadway congestion potentially backing up to the terminals. The next inflection: If container lines return to the Suez Canal, East and Gulf coast ports could regain some of the market share they lost to the West Coast in the past two years. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com.

Port News

Trans-Pacific

North American ports

Container Shipping News

Maritime

Soft volumes to keep West Coast ports congestion-free in early 2026

<div class="phx-topic abstract-wrapper"><p>Power generation cargoes gave the heavy-lift sector a welcome boost in 2025, and it’s a cargo stream that will not dry up anytime soon.</p></div>

Power generation cargoes gave the heavy-lift sector a welcome boost in 2025, and it’s a cargo stream that will not dry up anytime soon.

<div class="phx-topic"><p><i>The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook.</i> </p><p>Cargo volumes are stacking up nicely as the breakbulk and project sector sails into 2026, but are there enough ships to carry them? The short answer: It depends on the commodity. The <i>Journal of Commerce</i> projects fleet growth for heavy-lift (HL) capable vessels at an average annual rate of 4.1% though 2029, but that might not be enough for the projected boom in heavy-lift cargoes. </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6144851_0.1.jpg"></img></div><p>After two decades of essentially flat energy demand, project cargo-hungry server farms are expected to boost US electricity consumption at a compound annual growth rate of more than 3% from 2025 to 2030, according to an October report from S&amp;P Global Energy. Driven by growth in renewable energy sources, particularly onshore wind and solar power, and demand from a variety of sources including data centers, electric vehicles and the industrial sector, global power generation is expected to increase by an average of 3.3% per year through 2030. </p><p>Power generation cargoes gave the heavy-lift sector a welcome boost in 2025. With lead times for transformer and generator orders in some cases stretching beyond project development timescales, this is a cargo stream that will not dry up anytime soon. </p><p>Two years into the generative AI revolution, the mismatch between data center power requirements and supply has reached a critical point. This has led to growing interest in thermal energy options as evolving policy reshapes the energy sector. Momentum continues for the nuclear industry, while gas turbine orders are at their highest levels in nearly 25 years, and coal unit retirement plans are being delayed. </p><p>One shipper of transformers into the US told the <i>Journal of Commerce</i> they had never seen a market like it. All the big manufacturers are effectively full through 2030 as new power plants are being built, while older facilities — some of which are over 40 years old in the US — replace machinery. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="517f1375-3744-4198-b50b-91d9eca08b4d"></dynamic-object></div><p>While the shipment of larger pieces is the domain of specialized multipurpose carriers, the smaller pieces needed to manufacture a turbine or generator have more options for carriage. Equally, modules needed for new technology plants — such as chip manufacturers — are significantly lighter than modules being shipped for, say, a gas liquefaction plant. This extra breakbulk demand gives shippers the option to shop around for transport options.  </p><h3>Metals and mining ‘on steroids’ </h3><p>Another project cargo-hungry sector is metals and mining, described by one shipper as currently “on steroids.” Copper is in particularly high demand due to its role in the green energy transition and for electric vehicle manufacturing. The International Energy Agency warned in December that there could be a global supply deficit of 30% by 2035 due to declining ore grades, rising capital costs and lengthy project development timelines despite increased investment in the sector.  </p><p>There are several copper projects in South America that are expanding and more in Southeast Asia and the US that are at the feasibility stage. If these projects are commissioned, then demand for mining equipment will rocket — a boon for roll-on/roll-off carriers best suited to carrying these cargoes.   </p><p>Meanwhile, simpler multipurpose vessels (MPV) are projected to grow at just 0.5% per year over the same period. But these are the vessels that will compete with container carriers and bulkers, sectors in which overcapacity was already a problem as 2025 closed. When the Suez Canal route is deemed safe again, both fleets could see an effective capacity increase of up to 10%. </p><p><i>Contact Susan Oatway at </i><a href="mailto:susan.oatway@spglobal.com"><i>susan.oatway@spglobal.com.</i></a></p></div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. Cargo volumes are stacking up nicely as the breakbulk and project sector sails into 2026, but are there enough ships to carry them? The short answer: It depends on the commodity. The Journal of Commerce projects fleet growth for heavy-lift (HL) capable vessels at an average annual rate of 4.1% though 2029, but that might not be enough for the projected boom in heavy-lift cargoes. After two decades of essentially flat energy demand, project cargo-hungry server farms are expected to boost US electricity consumption at a compound annual growth rate of more than 3% from 2025 to 2030, according to an October report from S&P Global Energy. Driven by growth in renewable energy sources, particularly onshore wind and solar power, and demand from a variety of sources including data centers, electric vehicles and the industrial sector, global power generation is expected to increase by an average of 3.3% per year through 2030. Power generation cargoes gave the heavy-lift sector a welcome boost in 2025. With lead times for transformer and generator orders in some cases stretching beyond project development timescales, this is a cargo stream that will not dry up anytime soon. Two years into the generative AI revolution, the mismatch between data center power requirements and supply has reached a critical point. This has led to growing interest in thermal energy options as evolving policy reshapes the energy sector. Momentum continues for the nuclear industry, while gas turbine orders are at their highest levels in nearly 25 years, and coal unit retirement plans are being delayed. One shipper of transformers into the US told the Journal of Commerce they had never seen a market like it. All the big manufacturers are effectively full through 2030 as new power plants are being built, while older facilities — some of which are over 40 years old in the US — replace machinery. While the shipment of larger pieces is the domain of specialized multipurpose carriers, the smaller pieces needed to manufacture a turbine or generator have more options for carriage. Equally, modules needed for new technology plants — such as chip manufacturers — are significantly lighter than modules being shipped for, say, a gas liquefaction plant. This extra breakbulk demand gives shippers the option to shop around for transport options. Metals and mining ‘on steroids’ Another project cargo-hungry sector is metals and mining, described by one shipper as currently “on steroids.” Copper is in particularly high demand due to its role in the green energy transition and for electric vehicle manufacturing. The International Energy Agency warned in December that there could be a global supply deficit of 30% by 2035 due to declining ore grades, rising capital costs and lengthy project development timelines despite increased investment in the sector. There are several copper projects in South America that are expanding and more in Southeast Asia and the US that are at the feasibility stage. If these projects are commissioned, then demand for mining equipment will rocket — a boon for roll-on/roll-off carriers best suited to carrying these cargoes. Meanwhile, simpler multipurpose vessels (MPV) are projected to grow at just 0.5% per year over the same period. But these are the vessels that will compete with container carriers and bulkers, sectors in which overcapacity was already a problem as 2025 closed. When the Suez Canal route is deemed safe again, both fleets could see an effective capacity increase of up to 10%. Contact Susan Oatway at susan.oatway@spglobal.com.

Breakbulk carriers

Ro/ro cargo

Energy projects

Heavy-haul transport

Project cargo

Breakbulk News

Energy-related transport, metals and mining to lift project cargo sector in 2026

<div class="phx-topic abstract-wrapper"><p>Few blank sailings have been announced for January, and none this week, as shippers in Asia get their cargo on the water ahead of China’s Lunar New Year factory shutdown.</p></div>

Few blank sailings have been announced for January, and none this week, as shippers in Asia get their cargo on the water ahead of China’s Lunar New Year factory shutdown.

<div class="phx-topic"><p>The annual pre-Lunar New Year rush is underway on the Asia-North Europe ocean trade, with some market watchers reporting signs of frontloading on top of seasonal demand while others feel the volumes in January are within historical norms.</p><p>What is clear, however, is that carriers are injecting significant capacity into the trade lane this month while blanking very few sailings as shippers race to get their cargo on the water before factories across China close for up to three weeks. The Year of the Horse begins on Feb. 17.</p><p>Peter Sand, chief analyst at Xeneta, said capacity offered on Asia to North Europe was at an all-time high this week with no blank sailings. Data from Xeneta’s eeSea shows a record 1.15 million TEUs in capacity is being deployed this month on the Asia-North Europe trade lane, with blank sailings removing just 25,000 TEUs. In February, the planned capacity will drop to just over 1 million TEUs.</p><p>“Demand is solid and seasonally strong ... anything of top of that could be fueled by [market] uncertainty,” Sand told the <i>Journal of Commerce</i>.</p><p>Sea-Intelligence Maritime Analysis also highlighted a significant capacity increase, pointing to current weekly capacity of 421,825 TEUs being offered on Asia-North Europe, a 49% net increase compared with a 2015–19 pre-COVID-19 historical baseline.</p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a63d21f3-de18-45d8-8acf-7aca6ea4f4c4"></dynamic-object></div><p>“This is a strong indication of a frontloading strategy where shippers are pushing massive volumes into the network much earlier than the historical figures suggest, likely a response to the current extended Asia-Europe transit times,” Sea-Intelligence wrote in the newsletter.</p><p>“By flooding the trade lane early, shippers aim to ensure that their European inventory is buffered before the planned Lunar New Year capacity withdrawal begins,” the analyst noted.</p><h3>Demand following seasonal patterns</h3><p>A spokesman for Hapag-Lloyd said demand on the eastbound trade routes from Asia to Europe was following seasonal patterns.</p><p>“We’re witnessing a normal peak season which started in December and is now ramping up towards Lunar New Year,” a spokesperson for Hapag-Lloyd told the <i>Journal of Commerce</i>. “We expect bookings to soften from end-January onwards as factories close.”</p><p>Michael Aldwell, executive vice president of sea logistics at Kuehne + Nagel, said most of the forwarder’s customers in Europe used a “just-in-time” approach to manage supply chains and stock levels, which was affecting the duration of peak shipping periods.</p><p>“[However], after two years of extended transit times, shippers are adjusting their plans accordingly, leading to a more stretched peak season,” Aldwell told the <i>Journal of Commerce</i>.</p><p>Rising spot rates are accompanying the strong pre-Lunar New Year demand, with all indexes showing steep increases since early October. According to Platts, a sister company of the <i>Journal of Commerce</i> within S&amp;P Global, Asia-North Europe rates of $2,700 per FEU this week are more than double the Oct. 3 price. Container Trades Statistics, in its latest available data (October), shows Asia-North Europe container volume growth of almost 8% over the first 10 months of 2025 as oscillating US tariffs on Beijing saw Chinese shippers redirecting cargo to European markets. </p><p><i>Contact Greg Knowler at </i><a href="mailto:greg.knowler@spglobal.com"><i>greg.knowler@spglobal.com</i></a><i>.</i></p></div>

The annual pre-Lunar New Year rush is underway on the Asia-North Europe ocean trade, with some market watchers reporting signs of frontloading on top of seasonal demand while others feel the volumes in January are within historical norms. What is clear, however, is that carriers are injecting significant capacity into the trade lane this month while blanking very few sailings as shippers race to get their cargo on the water before factories across China close for up to three weeks. The Year of the Horse begins on Feb. 17. Peter Sand, chief analyst at Xeneta, said capacity offered on Asia to North Europe was at an all-time high this week with no blank sailings. Data from Xeneta’s eeSea shows a record 1.15 million TEUs in capacity is being deployed this month on the Asia-North Europe trade lane, with blank sailings removing just 25,000 TEUs. In February, the planned capacity will drop to just over 1 million TEUs. “Demand is solid and seasonally strong ... anything of top of that could be fueled by [market] uncertainty,” Sand told the Journal of Commerce. Sea-Intelligence Maritime Analysis also highlighted a significant capacity increase, pointing to current weekly capacity of 421,825 TEUs being offered on Asia-North Europe, a 49% net increase compared with a 2015–19 pre-COVID-19 historical baseline. “This is a strong indication of a frontloading strategy where shippers are pushing massive volumes into the network much earlier than the historical figures suggest, likely a response to the current extended Asia-Europe transit times,” Sea-Intelligence wrote in the newsletter. “By flooding the trade lane early, shippers aim to ensure that their European inventory is buffered before the planned Lunar New Year capacity withdrawal begins,” the analyst noted. Demand following seasonal patterns A spokesman for Hapag-Lloyd said demand on the eastbound trade routes from Asia to Europe was following seasonal patterns. “We’re witnessing a normal peak season which started in December and is now ramping up towards Lunar New Year,” a spokesperson for Hapag-Lloyd told the Journal of Commerce. “We expect bookings to soften from end-January onwards as factories close.” Michael Aldwell, executive vice president of sea logistics at Kuehne + Nagel, said most of the forwarder’s customers in Europe used a “just-in-time” approach to manage supply chains and stock levels, which was affecting the duration of peak shipping periods. “[However], after two years of extended transit times, shippers are adjusting their plans accordingly, leading to a more stretched peak season,” Aldwell told the Journal of Commerce. Rising spot rates are accompanying the strong pre-Lunar New Year demand, with all indexes showing steep increases since early October. According to Platts, a sister company of the Journal of Commerce within S&P Global, Asia-North Europe rates of $2,700 per FEU this week are more than double the Oct. 3 price. Container Trades Statistics, in its latest available data (October), shows Asia-North Europe container volume growth of almost 8% over the first 10 months of 2025 as oscillating US tariffs on Beijing saw Chinese shippers redirecting cargo to European markets. Contact Greg Knowler at greg.knowler@spglobal.com .

Asia-Europe

Asia-Europe ocean carriers add capacity as trade enters peak shipping period

<div class="phx-topic abstract-wrapper"><p>The deals for nine feeder container ships and four multipurpose and heavy-lift ships total about $490 million, according to Cosco and shipbrokers.</p></div>

The deals for nine feeder container ships and four multipurpose and heavy-lift ships total about $490 million, according to Cosco and shipbrokers.

<div class="phx-topic"><p>Cosco Shipping has awarded the initial tranche of shipbuilding contracts in its $7 billion fleet expansion and modernization program with China Shipbuilding Group announced in early December. </p><p>The deals for nine feeder container ships and four multipurpose and heavy-lift ships total about $490 million, according to Cosco and shipbrokers. </p><p>The larger package has been signed by Cosco Shipping Lines with CSSC Wuchang Shipbuilding for five 1,100-TEU feeder container ships and four 1,800-TEU vessels at a total cost of about $280 million. Seven of the ships will be delivered in 2028, with the remaining two in 2029.  </p><p>Shipbrokers say the 1,100-TEU ships are priced at about $30 million each, with the larger 1,800-TEU vessels costing $32 million. The ships are expected to be deployed on Cosco’s domestic network and its intra-Europe network operated by its Hamburg-headquartered affiliated carrier, Diamond Line. </p><p>Meanwhile, a deal valued at $213 million was awarded by Cosco Shipping Specialized Carriers to CSSC Chengxi Shipyard for four 40,000-deadweight metric ton multipurpose and heavy-lift ships, Cosco said in a three-page statement to the Shanghai stock exchange. </p><p>The first ship will be delivered in June 2028, with two more following in September and December 2028; the final ship will join Cosco’s specialized fleet in February 2029. </p><p>The orders have been placed against a background of modest fleet growth in the global MPV and heavy-lift sector. The global fleet is set to expand by just 1.9% through 2029 as vessel scrapping largely keeps pace with new vessel deliveries, according to data published on the <i>Journal of Commerce</i>’s Gateway platform. </p><p>The new vessels are expected to support Cosco’s expansion into the global wind energy sector. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fb97885d-0b88-4d65-99f6-10558c9e7c79"></dynamic-object></div><p>“The trend toward larger-scale and deep-sea wind power has placed higher requirements on the scale and vessel type structure of the company’s multipurpose heavy-lift fleet,” Cosco said. </p><p>Cosco has won a raft of wind energy transportation deals, especially in Europe. It completed the final shipment last month of monopiles for the Inch Cape offshore project in Scotland. </p><p>Cosco said the new ships will generate an internal rate of return of 6.8% with an “investment payback period of 11.8 years, indicating good economic benefits.” </p><p>Cosco has one of the world’s largest fleets of MPVs and heavy-lift ships with approximately 70 vessels and 10 semi-submersible deck carriers, which makes it the biggest operator of semi-submersible ships. </p><p><i>Contact Keith Wallis at </i><a href="mailto:keithwallis@hotmail.com"><i>keithwallis@hotmail.com</i></a>.</p></div>

Cosco Shipping has awarded the initial tranche of shipbuilding contracts in its $7 billion fleet expansion and modernization program with China Shipbuilding Group announced in early December. The deals for nine feeder container ships and four multipurpose and heavy-lift ships total about $490 million, according to Cosco and shipbrokers. The larger package has been signed by Cosco Shipping Lines with CSSC Wuchang Shipbuilding for five 1,100-TEU feeder container ships and four 1,800-TEU vessels at a total cost of about $280 million. Seven of the ships will be delivered in 2028, with the remaining two in 2029. Shipbrokers say the 1,100-TEU ships are priced at about $30 million each, with the larger 1,800-TEU vessels costing $32 million. The ships are expected to be deployed on Cosco’s domestic network and its intra-Europe network operated by its Hamburg-headquartered affiliated carrier, Diamond Line. Meanwhile, a deal valued at $213 million was awarded by Cosco Shipping Specialized Carriers to CSSC Chengxi Shipyard for four 40,000-deadweight metric ton multipurpose and heavy-lift ships, Cosco said in a three-page statement to the Shanghai stock exchange. The first ship will be delivered in June 2028, with two more following in September and December 2028; the final ship will join Cosco’s specialized fleet in February 2029. The orders have been placed against a background of modest fleet growth in the global MPV and heavy-lift sector. The global fleet is set to expand by just 1.9% through 2029 as vessel scrapping largely keeps pace with new vessel deliveries, according to data published on the Journal of Commerce’s Gateway platform. The new vessels are expected to support Cosco’s expansion into the global wind energy sector. “The trend toward larger-scale and deep-sea wind power has placed higher requirements on the scale and vessel type structure of the company’s multipurpose heavy-lift fleet,” Cosco said. Cosco has won a raft of wind energy transportation deals, especially in Europe. It completed the final shipment last month of monopiles for the Inch Cape offshore project in Scotland. Cosco said the new ships will generate an internal rate of return of 6.8% with an “investment payback period of 11.8 years, indicating good economic benefits.” Cosco has one of the world’s largest fleets of MPVs and heavy-lift ships with approximately 70 vessels and 10 semi-submersible deck carriers, which makes it the biggest operator of semi-submersible ships. Contact Keith Wallis at keithwallis@hotmail.com .

Container lines

Cosco awards initial newbuilding deals as part of $7 billion fleet expansion

<div class="phx-topic abstract-wrapper"><p>While the new delay — on products reliant on wood imports — provides a respite for importers of the affected goods, it prolongs for another year a period of uncertainty over how tariffs might impact the cost of what they sell.</p></div>

While the new delay — on products reliant on wood imports — provides a respite for importers of the affected goods, it prolongs for another year a period of uncertainty over how tariffs might impact the cost of what they sell.

<div class="phx-topic"><p>The Trump administration’s decision to postpone a hefty, planned hike in tariffs on upholstered furniture, kitchen cabinets and bathroom vanities <a href="https://www.joc.com/article/white-house-rolls-back-tariffs-on-broad-list-of-food-and-ag-imports-6116742">echoes a move in mid-November</a> by the White House to delay planned tariff increases on food and agriculture imports. </p><p>The most recent tariffs, on products reliant on wood imports, were due to increase Jan. 1 from the existing 25% to between 30% and 50%, depending on the product. </p><p>But those increases have been suspended for a year and now will go into effect Jan. 1, 2027 due to “productive negotiations with trade partners” in addressing trade reciprocity and national security concerns, the Trump administration announced New Year’s Eve. The tariff rollback in November came less than two weeks after Democrats were overwhelmingly successful on Election Day, winning a number of key state and local races where affordability and the rising cost of everyday products were key issues, with opponents of the Trump administration pinning the hikes on tariffs. </p><p>While the latest tariff delay provides a respite for importers of affected products in the furniture and cabinetry industries, it prolongs for another year a period of uncertainty over how tariffs might impact the cost of the goods they sell, trade associations in the furniture and home building industries said. </p><p>“With the nation facing a housing affordability crisis, [the National Association of Home Builders] continues to urge the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains and place upward pressure on home prices,” the group said in a statement. </p><p><i>Contact Eric Johnson at </i><a href="mailto:eric.johnson@spglobal.com"><i>eric.johnson@spglobal.com</i></a>.</p></div>

The Trump administration’s decision to postpone a hefty, planned hike in tariffs on upholstered furniture, kitchen cabinets and bathroom vanities echoes a move in mid-November by the White House to delay planned tariff increases on food and agriculture imports. The most recent tariffs, on products reliant on wood imports, were due to increase Jan. 1 from the existing 25% to between 30% and 50%, depending on the product. But those increases have been suspended for a year and now will go into effect Jan. 1, 2027 due to “productive negotiations with trade partners” in addressing trade reciprocity and national security concerns, the Trump administration announced New Year’s Eve. The tariff rollback in November came less than two weeks after Democrats were overwhelmingly successful on Election Day, winning a number of key state and local races where affordability and the rising cost of everyday products were key issues, with opponents of the Trump administration pinning the hikes on tariffs. While the latest tariff delay provides a respite for importers of affected products in the furniture and cabinetry industries, it prolongs for another year a period of uncertainty over how tariffs might impact the cost of the goods they sell, trade associations in the furniture and home building industries said. “With the nation facing a housing affordability crisis, [the National Association of Home Builders] continues to urge the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains and place upward pressure on home prices,” the group said in a statement. Contact Eric Johnson at eric.johnson@spglobal.com .

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